The 2026 Italian Capacity Market auction assigned 42.8 GW of derated capacity and saw awarded prices for new capacity dropping to 56.2 €/kW, while clearing prices for existing capacity remained at the price cap.
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On 27 February 2025, the Italian Ministry of the Environment and Energy Security published the so-called Transitional FER X Decree (Transitional FERx). This decree marks a significant advancement in Italy''s
The new tender mechanism is likely to replace the Italian capacity market (the main support mechanism to date) as the primary source of BESS support Investment in merchant BESS capacity is set to be more
Last May 31, a new draft of the so-called FER X Decree was circulated, which is again aimed at providing incentives for the construction of power generation plants from the
Energy-Storage.news'' sister site Current± reported the full results earlier this week of the UK''s T-4 Capacity Market auction, awarding contracts beginning in the 2025/2026 window. It cleared at a record high price
With most renewable energy PPAs signed for long terms of 10 years or more, the mitigation of risks, such as negative prices, becomes critical. Pierre Bartholin, head of power hedging at Nuveen Infrastructure, tells ESS
On Feb. 26 Terna announced the results of its capacity market auction, allocating 43 GW for the delivery year 2027, for more than €1.847 billion. Industry insiders
Petra said the inaugural development of BESS will offer a capacity totalling 400 megawatts (MW) and 1,600 megawatt-hours (MWh). The ministry explained that the BESS development will be divided into four
The market had got into motion with an ancillary services tender, for fast reserve frequency regulation held in 2020, in which 250MW of contracts were awarded to BESS projects.
The contract is worth €47,000 (US$49,000) per MW per year for both new and existing resources (foreign ones get a different price) and the bulk of capacity was in the North
The majority of newly installed large-scale electricity storage systems in recent years utilise lithium-ion chemistries for increased grid resiliency and sustainability. The capacity of lithium
Consumers face a Single National Price or "PUN", the weighted average energy price across these zones. There have been discussions around phasing out the PUN and transitioning to a zonal price for consumers;
BESS dominates new capacity in latest Capacity Market auctions as the now confirmed MACSE shapes market dynamics, with CM marginal price equal to 47€/kW.
BW ESS and ACL Energy have announced an expansion of their stand-alone BESS project portfolio in Italy, bringing their total development pipeline to 14 projects representing 2.9 GW of capacity across Italy''s North and
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The Ministry of Energy Transition and Water Transformation (PETRA), through the Energy Commission (EC), has launched an open bidding program for the acquisition of
The Elemens Italy BESS Index is the first performance indicator for spot market revenues of stand-alone utility-scale batteries operating in the Italian electricity system.
Everyone was expecting 2025 to be the boom year, but 2026-2030 is the plan now with MACSE and the CM. The topology of Italy means there is a clear strategy," Izcue
Similarly, PowerChina''s 2025-2026 energy storage system procurement, which sought 16 GWh of BESS in its 2025 procurement, stipulated that battery production dates must not exceed three months before actual
Italy is in the process of implementing a unique support scheme for storage investors. The system operator (Terna) will tender for 15 year fixed price contracts for up to 100% of BESS capacity.
While Northern Italy currently has the largest installed BESS capacity in the country, a build-out of RES in the South is increasing energy price volatility, creating a more compelling investment case for BESS in this region.
Italy''s ambitious renewable energy targets present significant challenges for system security. A substantial portion of growth is expected in southern regions and islands, areas already facing critical grid flexibility issues.
Three utility-scale battery assets have secured ten-year contracts to secure voltage services in the United Kingdom, in a tender run by the National Energy System Operator (NESO). Battery energy storage systems
While Northern Italy currently has the largest installed BESS capacity in the country, a build-out of RES in the South is increasing energy price volatility, creating a more compelling investment case for BESS in this region.
Revenue Streams for BESS: The business case for BESS in Italy is underpinned by four main revenue streams: wholesale trading, the Ancillary Services Market (MSD), the Capacity Market (MC), and the new energy storage subsidy scheme (MACSE).
The 2026 Italian Capacity Market auction assigned 42.8 GW of derated capacity and saw awarded prices for new capacity dropping to 56.2 €/kW, while clearing prices for existing capacity remained at the price cap. I consent to my submitted data being processed and stored by Timera Energy in compliance with our Privacy Policy.
As of March 2025, Italy has got 1GW of grid-scale BESS capacity online, placing the country in third place in Europe (shared with Ireland) in terms of installed capacity, behind Germany (1.6GW) and the UK (5.6GW). Another 1.75GW is under construction, projects totaling 230MW have obtained permits, and 1.2GW of new BESS capacity has been announced.
On 18th December 2024, Terna held the Italian Capacity Market (CM) auction for the 2026 delivery year, assigning 42.8 GW of derated capacity (CDP) as follows: 4.4 GW foreign capacity (mainly from Northern borders). The auction results mirrored those of 2025, with similar capacity proportions.
The Italian government is aiming for 15GW of BESS capacity by 2030 to maintain security of supply. The Italian government, regulator, and Transmission Service Operator (TSO) are creating an attractive regulatory environment for BESS by offering multiple incentive schemes and updating the grid code.
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