Italian auction underpins new battery investments
Italy ran an auction for provision of a 1000 hours per year ‘Fast Reserve’ frequency response service last week, specifically targeted at batteries. 250MW of 5 year contracts (2023 – 27) were awarded across 3 of Italy’s market price zones as shown in the chart. The auction was competitive with 1.3GW of capacity competing. But clearing prices were still relatively attractive ranging from 23 to 61 €/MW/year. Successful bidders included Enel X & Engie as well as a range of local renewable companies & developers. Italy is fast emerging as a growth market for battery investment, helped by returns underpinned with either Fast Reserve or capacity contracts.