Italy is moving forward with the integration of renewable energies through the Energy Storage Capacity Allocation Mechanism (MACSE), with its first auctions initially expected to launch in the second quarter of 2024.

The country is undergoing a crucial phase in its energy transition, driven by key regulatory reforms aimed at accelerating energy storage deployment. Among the most significant initiatives are the MACSE mechanism and the Capacity Market.

The renewable energy sector is eagerly awaiting the launch of the MACSE auctions, a mechanism designed to encourage investment in energy storage. These auctions were initially scheduled for the second quarter of the year, but Luca Marchisio, Head of System Strategy at Terna, has confirmed that they will be postponed until September.

Marchisio also emphasized that this delay is not necessarily a negative development, as it could lead to a more competitive auction process.

Regarding sector expectations, Héctor Andrés Rodríguez Garnica, PV & BESS Product Manager and Technical Specialist, stated in an interview with Strategic Energy Europe:
“MACSE mechanism auctions are expected to generate competitive prices due to the high participation of various operators, with anticipated figures ranging between €100 and €150 per MWh. Internal rates of return (IRR) could reach 12%, depending on factors such as project location, installation and operation costs, and market conditions.”

MACSE and the Capacity Market: Which Path Will Investors Take?

At the same time, Italy has also strengthened its Capacity Market, which aims to ensure the security of electricity supply. In the auction for the 2026 period, which concluded on December 18, 2024, after 13 sessions, 38,405 MW of capacity was allocated, with a total cost of €1.816 billion, of which €565 million corresponded to previous allocations from 2022 to 2025.

The distribution of awarded capacity in this latest auction reflects a trend toward technological diversification, although a strong reliance on repowered thermal power plants remains. Regarding prices, existing capacity was awarded at €46,000 per MW per year, while new capacity reached €56,160 per MW per year, showing a 4.5% increase compared to previous auctions.

Among the main companies awarded in the latest auction were Enel Produzione SpA with 11,417 MW, A2A SpA with 4,337 MW, and ENI SpA with 4,162 MW, further consolidating their leadership in the Italian energy sector.

“The goal of these initiatives is to ensure the stability of the electricity system and diversify energy generation sources,” states Terna in its official report on the 2026 auction.

The coexistence of MACSE and the Capacity Market presents a strategic challenge for investors, as they must choose between participating in Capacity Market auctions, which offer long-term contracts with stable prices and reduced risk, or opting for MACSE, which could provide higher returns due to growing storage demand and government incentives for innovative technologies.

Regarding this decision, Rodríguez Garnica explains:
“Investors must assess the risk and potential return of each option. Capacity Market auctions offer long-term contracts with relatively stable prices, providing security and predictability. MACSE could offer higher returns due to the growing demand for energy storage and the specific incentives for innovative technologies.”

In this context, companies in the sector must carefully evaluate which option offers greater financial security and profitability, considering both the regulatory risks and the maret opportunities that each mechanism presents.