Terna says its maiden MACSE auction fully covered 10 GWh storage demand with high oversubscription
Weighted average winning price of €12,959/MWh-year was significantly below the €37,000 ceiling
Lithium-ion battery projects selected under the auction will start operations in 2028
Italian grid operator Terna has concluded its inaugural Meccanismo di approvvigionamento di capacità di stoccaggio elettrico or Electricity Storage Procurement Mechanism (MACSE) procurement auction round. This round covered the entire 10 GWh of the required storage demand while bids exceeded demand by more than 4 times.
The weighted average winning price came in at €12,959/MWh/year, well below the ceiling of €37,000/MWh/year. Regional results varied with €14,566/MWh/year for Central-South, €12,146/MWh/year for South and Calabria, €15,846/MWh/year for Sicily, and €15,029/MWh/year for Sardinia, showing strong competition as well as cost efficiency.
“The auction results show strong competition and robust market interest. We are looking at an associated investment volume of around € 1 billion euros, which will enable greater renewable integration while further reducing reliance on thermoelectric generation and related natural gas consumption,” said Terna’s CEO and General Manager, Giuseppina Di Foggia.
Winning facilities, comprising lithium-ion battery systems, will cover 100% of the required demand and start commercial operations in 2028.
Approved by the European Commission in December 2023, Italy’s MACSE framework is designed to support the development of long-term energy storage capacity for the growing volume of renewable energy in the country. Between January and August 2025, Italy brought online 4.04 GW of new renewable energy capacity, including 3.68 GW of solar PV. Over the last 12 months, Terna counts the combined solar PV and wind energy additions to have grown by 14% year-on-year (YoY) by 6.66 GW to a total of 54.1 GW.
Terna says the outcome of the maiden auction under the framework is in line with its forecasts regarding the technology’s maturity by 2028 and expected cost trajectory. The storage capacity procured through this auction round will enable the full integration of renewable energy into the system while ensuring grid security and adequacy.
“Upcoming auctions will follow the evolution of renewable generation and grid development: since 2023, 17 GW of new renewable capacity has already been commissioned,” added Di Foggia.
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