IN Brief:
- Terna has scheduled Italy’s second MACSE storage auction for 24 November 2026.
- The round targets 16GWh of battery storage capacity for 2029 delivery under 15-year contracts.
- The procurement will focus on zonal storage requirements across southern Italy, Sicily, and Sardinia.
Terna has scheduled Italy’s second MACSE storage auction for 24 November 2026, setting the next procurement date under the country’s electricity storage mechanism.
The auction is designed to secure 16GWh of battery storage capacity for 2029 delivery. Successful projects are expected to receive 15-year contracts, giving developers a long-term revenue structure for assets that will support renewable integration, system balancing, and zonal grid flexibility.
The admission window is due to run from 7 July to 27 July 2026, with deposit bond arrangements required by 20 October. The zonal capacity requirements cover Centre-South, South and Calabria, Sicily, and Sardinia. Indicative ranges include 1GWh to 3GWh for Centre-South, 3GWh to 11.5GWh for South and Calabria, 1GWh to 6GWh for Sicily, and 0.5GWh to 3GWh for Sardinia.
The second round follows the earlier MACSE process, which targeted almost 10GWh of capacity. Italy’s wider commitment to a 16GWh MACSE storage auction for 2029 has already established the mechanism as one of Europe’s most structured approaches to long-duration battery procurement.
Italy’s storage requirement is shaped by geography as much as generation mix. Renewable output is growing strongly in the south and on the islands, while demand, network constraints, and interconnection limits create a complex operating environment. Storage capacity procured under MACSE is intended to help absorb renewable generation, reduce curtailment, and provide dispatchable flexibility where the grid needs it most.
The zonal structure is central to the mechanism. A battery in Sicily or Sardinia does not provide the same system value as an equivalent asset in northern Italy, because grid constraints, renewable profiles, interconnector capacity, and local demand patterns differ. By procuring storage against zonal needs, Terna is aligning asset location with system value rather than treating storage as a uniform national capacity product.
Long-term contracts should also improve financeability. Battery projects exposed only to merchant revenues can be difficult to fund, particularly where ancillary service prices may soften as more capacity connects. A 15-year contract gives investors a clearer base case, while availability, performance, and operational discipline remain central to returns.
Italy’s approach sits within a wider European shift toward formal flexibility procurement. Spain has moved ahead with a capacity mechanism open to storage and demand response, while Germany is developing large-scale storage through merchant activity, grid-fee arrangements, and private contracting. Across these markets, flexibility is being treated as planned infrastructure rather than a residual balancing service.
The auction date gives developers, suppliers, and investors a fixed point around which to organise bids. Equipment availability, grid-connection status, land rights, environmental approvals, and financing terms will determine which projects are credible by the time applications open. The procurement process may also influence supply chains for inverters, transformers, switchgear, battery containers, and control systems as developers work toward 2029 delivery.
Further information on Terna’s market and system operation activities is available from Terna.
