Terna, company responsible for managing the electrical infrastructure in Italy, revealed the results of the 2026 Capacity Market Auction, which concluded on December 18, 2024, after 13 sessions. In this edition, 38,405 MW of capacity were assigned, of which 38,265 MW correspond to existing capacity and 140 MW to newly authorized capacity.
The total auction cost reached €1.8161 billion, including €48.1 million allocated to foreign capacity. Additionally, the cost of previously assigned new capacity (2022-2025 editions) increases the total investment in the capacity market to €565 million.
Distribution of Awarded Capacity
Regarding existing capacity, the domestic market secured 38,265 MW at a price of €46,000/MW/year, while new capacity was awarded at €56,160/MW/year. Meanwhile, cross-border capacity was distributed as follows:
- 4,200 MW at the northern border (€11,200/MW/year)
- 113 MW at the central-southern border (€7,199/MW/year)
- 52 MW at the southern border (€4,500/MW/year)
“The capacity allocation in this auction responds to the need to ensure the stability of the Italian electricity system and promote the diversification of generation sources,” Terna states in its official report.
Key Companies and Auction Costs
The main awardees in the existing and new capacity category include major players in the energy sector, such as Enel Produzione S.p.A., which was awarded 11,417 MW, A2A Spa with 4,337 MW, and ENI Spa with 4,162 MW.
Regarding costs, the total breakdown of the auction is as follows:
- Existing capacity: €1.76019 billion
- New authorized capacity: €7.86 million
- Foreign capacity: €48.09 million
This distribution reinforces the trend toward technological diversification, although there is still a significant reliance on repowered thermal plants.
Newly Awarded Capacity: Storage on the Rise
Among the 140 MW of newly authorized capacity, electrochemical storage systems stand out, representing 60% of the total awarded. The rest is distributed among thermal technologies (30.7%), wind (7.1%), and solar (2.1%).
The electrochemical storage awardees include:
- Magnolia Sol S.R.L. (Centro-Sud): 6 MW
- Sorgenia S.p.A. (Nord): 4 MW
- EPP4 S.R.L. (Sicily): 44 MW
- MyT Apulia Storage 1 S.R.L. (South): 14 MW
On the other hand, the awarded thermal segment is predominantly composed of repowered combined cycle plants, accounting for 98% of the capacity in this category.
Comparison with Previous Auctions
Compared to previous years’ auctions, the 2026 edition showed a greater participation of storage systems and renewables in the newly awarded capacity. While in previous auctions, storage represented less than 50% of the newly assigned capacity, this year it reached 60% of the total.
Additionally, prices have shown a slight increase compared to the 2024 and 2025 auctions, especially in newly authorized capacity, with a 4.5% rise in the awarded MW price.
Impact on the Energy Market
The outcome of this auction strengthens the stability of the Italian electricity system, ensuring capacity availability for 2026. However, the moderate growth in the share of renewables in the newly awarded capacity suggests that barriers to integrating these technologies into the capacity market framework still persist.
The inclusion of storage technologies and the participation of leading companies demonstrate progress in the energy transition, yet the sector still faces regulatory and investment challenges.
With this new allocation scheme, the Italian energy market continues evolving toward a more flexible structure, with a gradual increase in capacity awarded to storage technologies and renewables.
It is worth noting that Italy aims to boost energy storage through new financial mechanisms, including the Mercato della Capacità (Capacity Market) and the recently implemented MACSE (Electricity System Capacity Assurance Mechanism).
MACSE was developed to complement capacity market compensation, encouraging the installation of long-term storage systems. This mechanism is expected to mobilize investments in batteries and other flexibility solutions, which are essential for balancing the increasing share of renewables in the Italian power grid.
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