Description

TABLE OF CONTENTS

Executive summary (5)

1. New regulations and initiatives discussed this month (6)

1.1. North America (6)

1.2. Europe (7)

1.3. Asia (8)

2. Project updates and announcements  (9)

2.1. Overview of the 2022 and 2023 markets for utility-scale energy storage projects (9)

2.2. Projects announced or contracted this month (9)

2.3. Projects commissioned this month (11)

2.4. Tenders this month (12)

3. Focus of the month: Italy’s MACSE mechanism opens a new path for energy storage solutions (14)

3.1. Background (14)

3.2. Schedule (17)

3.3. Eligibility Criteria  (18)

3.3.1. Eligible Technologies (18)

3.3.2. Duration Requirements (19)

3.3.3. Participation Requirements (20)

3.4. Planning and Delivery Periods (21)

3.5. MACSE Coefficients (21)

3.5.1. Extra-Performance Coefficients (21)

3.5.2. Area Coefficients (22)

3.5.3. Participant Bid Calculation (22)

3.5.4. Auction Price Cap (22)

3.6. Revenue sharing and service obligations under the MACSE mechanism (23)

3.6.1. Time-Shifting Contracts & MSD Participation (24)

3.7. MACSE and the upcoming market overhaul under TIDE (26)

3.8. Key Takeaways (26)

TABLE OF FIGURES

Figure 1: Utility-scale energy storage projects announced/contracted and commissioned in 2022 and 2023 (ongoing) (9)

Figure 2: Results of the 2023 Polish Capacity Mechanism Auction (10)

Figure 3: Clean Horizon's CHESS database tracks large Energy Storage Systems (ESS) projects worldwide and is tracking

9.5 GWh of project in Italy in various stages of development (15)

Figure 4: Zonal distribution of ESS in the FF55 scenario (2030) in GWh (16)

Figure 5: The South and the islands are expected to host wind and large-scale solar projects whereas the North is

expected to have smaller-scale solar projects (17)

Figure 6: Important pre-auction milestones for MACSE (18)

Figure 7: Eligible Technologies and types of developments (19)

Figure 8: MACSE participation requirements (20)

Figure 9: Terna’s Bid curve. For illustration purposes only (21)

Figure 10: Impact of the auction reserve price on premiums when the overall bid is above the reserve. For illustration

purposes only (23)

Figure 11: Stakeholder transactions under the MACSE mechanism (25)