Italy’s first MACSE battery auction smashes expectations with 10 GWh awarded at record low prices

Italy has completed its first auction for grid-scale battery storage capacity, awarding all 10 GWh on offer under the new MACSE scheme (Meccanismo di approvvigionamento di capacità di stoccaggio elettrico, or Electricity Storage Capacity Procurement Mechanism).

Held on September 30, the tender closed at an average price of just €12,959 per MWh per year, far below the reserve price of €37,000 per MWh per year set by system operator Terna.

Interest from developers was strong, with bids coming in at more than four times the available capacity.

Prices varied slightly across the four regions included in the auction, with the Central South at €14,566 per MWh per year, South & Calabria at €12,146/MWh/year, Sicily at €15,846/MWh/year, and the island of Sardinia at €15,029/MWh/year.

For each of the four areas, Terna defined the minimum and maximum quantities to be procured.

“The auction results show strong competition and significant market interest. We are talking about an estimated investment volume of around €1 billion, which will improve the integration of renewables,” said Giuseppina Di Foggia, CEO and General Manager of Terna.

“Future auctions will follow the evolution of renewable generation and grid development: since 2023, more than 17 GW of new RES plants have already come online. Terna is at the forefront of ensuring an increasingly resilient, smart, and sustainable electricity grid.”

The contracted systems are expected to be operational in 2028, with projects distributed across the four regions.

From pv magazine Italy.