Italian Ready-to-Build BESS market: Prices slide amid regulatory uncertainty, MACSE misfire

The Italian market for standalone “Ready-to-Build” (RtB) battery energy storage system (BESS) projects is in an early but rapidly evolving phase. Transaction volumes remain limited compared to more mature segments, which reflects the relative novelty of this asset class and a regulatory and remuneration framework that is still under development in Italy. The market is seeing growing interest in projects with flexible configurations, such as hybrid PV + BESS plants, as well.

Focusing on RtB BESS, according to transaction platform nTeaser, prices have followed a downward trajectory from 2025 into the first quarter of 2026.

“In the fourth quarter of 2025, values ranged from €19,500/MW to €55,000/MW, with a median of €44,000/MW,” said Serrano. “In the first quarter of 2026, prices reduced further, with a range between €15,000/MW and €48,000/MW and a median of €37,500/MW, reflecting a market still in the price discovery phase, as investors calibrate risk-adjusted returns against uncertain revenue prospects.”

A key factor that has weighed on investor sentiment, nTeaser explains, was the outcome of the first MACSE tender.

“The process raised serious concerns about its structure after two public companies were awarded around 70% of the allocated capacity, excluding private investors and generating significant mistrust in the market. The low award prices reached have further dampened interest, calling into question the commercial viability of the mechanism for independent developers and investors. Consequently, confidence in MACSE as a reliable revenue pathway has been substantially undermined.”

The short-term outlook for the Italian BESS market depends on two key factors: the upcoming capacity market auction and the announcement of the next MACSE cycle.

“Until there is greater clarity on both mechanisms, investor interest will likely remain cautious and prices subdued,” Serrano adds. “In the absence of a structured remuneration framework, the majority of investors are currently underwriting projects based primarily on arbitrage revenues and participation in the Dispatching Services Market (MSD), where BESS assets can provide fast-response balancing services.”

Projects that have obtained grid connection rights, environmental authorizations, and land agreements enjoy significant premiums compared to those in early stages. Geographic location also plays a role, with projects situated in areas with structural grid imbalances—where BESS can provide tangible value to the system—viewed more favorably by investors.

Overall, the Italian RtB BESS market is still in its infancy and is currently going through a period of uncertainty caused by regulatory concerns and issues related to the structure of the mechanisms.

Adapted from pv magazine Italy.