Italy’s First BESS auction set a new benchmark, but at what cost?

Italy’s first-ever auction for grid-scale battery storage has reshaped the country’s energy landscape and tested the limits of how aggressively investors are willing to bet on this asset class. Unveiled on 1 October 2025, the inaugural Meccanismo di Approvvigionamento della Capacità di Stoccaggio Elettrica (MACSE) auction awarded 10GWh of battery capacity to seven applicants. Run by transmission system operator Terna, the scheme marks Italy’s first major step toward creating a national energy storage infrastructure. The response exceeded all expectations: participants submitted bids for a combined capacity of more than four times the 10GWh target. This level of participation underscores the growing strategic importance of batteries in stabilising Italy’s increasingly renewable-heavy grid.