The Design Of Italy's Energy Storage Auction Has Attracted Attention.

Italian Ministry of Energy: Too Late to Amend Rules for Capacity and MACSE Auctions; Energy Storage Auction Design Draws Attention

 

 

 

Alessandro Noceti, Director General for Energy Markets and Infrastructure at Italy's Ministry of Environment and Energy Security, addressed industry concerns regarding regulatory clarity in the energy storage market during the Energy Transition Expo in Rimini, touching upon several pending regulatory issues. Regarding the "Energy Bills Decree"-aimed at reducing electricity and gas costs for households-he noted that while its implementation is expected to begin shortly, the Ministry had not yet initiated negotiations with the European Commission as of the meeting date on March 5. Furthermore, the timeline for these discussions remains uncertain, and issues concerning state aid and compatibility with the European market design are currently under review.

 

Noceti pointed out that there is no longer sufficient time to amend the rules for the capacity market auctions and the MACSE auctions. The capacity market auction is expected to take place in July, while the MACSE auction is scheduled for September or October. He characterized the current situation as a "self-operating" phase, during which authorities are determining how best to apply established standards within the auction procedures; the Italian Electricity Services Operator (GSE) will be responsible for conducting the necessary verifications for certification. Fabio Bulgarelli, Head of Regulatory Affairs at Terna, emphasized the need for greater market predictability and advocated for establishing fixed time windows for energy storage auctions.

 

Industry representatives underscored that if Italy aims to bolster its energy independence, it cannot afford to overlook energy storage. Discussions revealed that the next capacity market auction may be held prior to the summer parliamentary recess in 2028, while the MACSE auction is likely to take place in 2029. Additionally, Noceti characterized the EU Emissions Trading System (ETS)-as it applies to thermal power generation-as a form of "taxation." He noted that this system directly impacts the competitiveness of battery energy storage systems, as they compete with combined-cycle power plants when selling electricity during off-peak hours.