MILAN, July 3 (Reuters) - ContourGlobal has acquired

battery energy storage systems in Italy with a combined power

capacity of around 1.6 gigawatt and storage durations of up to

eight hours, the energy company owned by U.S. investment firm

KKR said on Thursday.

WHY IT'S IMPORTANT

The battery projects, once fully developed, will position

ContourGlobal for the first Italian auction, scheduled for

September, in which the country will buy storage capacity to

enhance use of renewable energy.

CONTEXT

Europe's battery storage capacity is expected to grow around

five-fold by 2030, bringing with it increasing returns for

energy majors, project developers and traders, as the cost of

new projects falls.

(Writing by Francesca Landini;

Editing by Keith Weir)