government procurement price of utility scale ESS in Italy

By GreenTech Insights · · >5 min read

How will Italy develop utility-scale electricity storage facilities?

To develop utility-scale electricity storage facilities, the Italian Government set up a scheme that was approved by the European Commission at the end of . Italy will promote investments in utility scale electricity storage to reach at least 70 GWh, and worth over Euro 17 bn, in the next ten years.

How does Italy guarantee a long-term supply system of new storage capacity?

The Italian legislator has acted to guarantee a long-term supply system of new storage capacity by introducing a mechanism based on competitive, transparent and non-discriminatory auctions. The system recognises the right to an annual remuneration, in exchange for the provision of the awarded capacity as part of the national energy market.

How much energy storage capacity does Italy have?

As of November Italy had 5.1 GW / 11.7 GWh of energy storage capacity. This is almost exclusively small-scale residential system, with utility-scale storage systems providing just 864 MW. To help achieve the target for utility-scale storage build-out, the Italian government has implemented the MACSE subsidy scheme as supporting legislation.

Are battery energy storage systems needed in Italy?

Therefore, battery energy storage systems (BESS) are needed in Italy. The Italian market for BESS is growing rapidly and currently amounts to 2.3 GW but it almost exclusively consists of residential scale systems, associated with small scale solar plants, having an average capacity of less than 20 kWh.

Is there a need for energy storage solutions in Italy?

Local industry contacts, as well as U.S. sector firms, have also indicated to Post that there is a need for energy storage solutions in Italy.

How will Italy invest in electricity storage?

Italy will promote investments in utility scale electricity storage to reach at least 70 GWh, and worth over Euro 17 bn, in the next ten years. The new storage capacity will be acquired through tenders published by Terna, the manager of Italy’s high voltage grid. The next tender will be released in .

The contract is worth €47,000 (US$49,000) per MW per year for both new and existing resources (foreign ones get a different price) and the bulk of capacity was in the North region. Italy has eight electricity market (and price) regions.

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government procurement price of utility scale ESS in Italy

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