Italy recently held its inaugural auction for grid-scale battery storage under the MACSE initiative, successfully allocating all 10 GWh of capacity offered, significantly surpassing expectations. Conducted on September 30, the auction resulted in an average bid of just €12,959 per MWh per year, dramatically lower than the reserve price of €37,000 set by system operator Terna. Developer interest was robust, with submissions exceeding available capacity by four times.
Bids varied slightly by region, with prices recorded at €14,566 per MWh per year in Central South, €12,146 in South & Calabria, €15,846 in Sicily, and €15,029 in Sardinia. Terna established specific quantity limits for each area to be procured. Giuseppina Di Foggia, CEO of Terna, remarked on the strong competition and interest in the market, noting that the auction potentially represents an investment of around €1 billion, which will facilitate better integration of renewable energy sources. She emphasized that future auctions will adapt to the growth of renewable generation and grid enhancements, as over 17 GW of new renewable energy sources have already emerged in 2023. The projects awarded in this auction are anticipated to come online by 2028, distributed across the four regions.