Italy’s ReFeel secures 15-year capacity market contract for 207 MWh project

ReFeel New Energy (RNE) has secured a 15-year capacity market contract for its 52 MW/207 MWh battery storage project in Tuscany, at a guaranteed price of €47,000/MW/year.

The contract for the battery energy storage system (BESS), awarded through transmission system operator Terna’s auction for delivery year 2027, provides guaranteed revenue. This was the only battery storage project in the Tuscany region to secure a contract in this auction round.

Assuming the BESS operates at full nameplace capacity, the contracts delivers €2.44 million per year. (Or, effectively, €47,000 per week.)

The four-hour duration system received full authorization in December 2024 and will begin construction in Q3 2025, with commercial operations expected by Q1 2027.

This long-term contract mitigates merchant risk during periods of low electricity prices, providing revenue certainty crucial for financing in European markets where revenue stacking models remain complex.

Italy’s capacity market represents one of several revenue paths available to storage developers, with the country also developing an energy storage capacity procurement mechanism (MACSE) expected to drive further deployment. A 10 GWh quota for the first MACSE storage auction was set by Italian regulators and Terna.

RNE was established in 2022 as a solar PV platform within SUSI Partners’ Energy Transition Fund before expanding into battery storage. The company is now advancing approximately 980 MW of battery storage projects. SUSI Partners, which manages over €2.3 billion in investor capital, has positioned its evergreen equity fund to support development platforms across multiple energy transition segments.