Italy's First MACSE Auction Drives Energy Storage Boom
Italy's energy transition has taken a significant step forward with the successful completion of the country's first MACSE auction. The auction, managed by Terna, has transformed energy storage into a full-fledged engine driving the transition. Enel Produzione and ACL Energy were among the key players, securing substantial capacity.
The auction saw a total of 10 GWh of storage capacity awarded, with Enel Produzione securing over 50 percent, amounting to 5.2 GWh. ACL Energy followed with 2.1 GWh. Notably, the South and Calabria regions filled their maximum quota. Despite the significant capacity awarded, over 30 GWh was left out, opening avenues for future investment.
The awarded projects demonstrated an average energy-to-power ratio of 6.5-7.5 hours, indicating a balanced approach to meeting both peak demand and sustained power needs. The weighted average clearing price was €12,959/MWh/year, reflecting the competitive nature of the bids. Interestingly, the merchant option appeared more attractive than MACSE, given current market spreads.
The auction marks a turning point, with storage now playing a pivotal role in Italy's energy transition. Total investment in batteries is expected to reach around €1 billion over the next 39 months. While BESS projects contracted under MACSE will come online in 2028, merchant projects can commence immediately, providing an expedited boost to Italy's energy storage capacity.
