elemens partner outlines BESS revenue routes and Capacity Market outlook in Italy

Type: Financing · Technology: Storage · Country: Italy · Capacity: 90 GWh · Announced: 2026-09-25

elemens partner Salvatore Alessandro Casa outlined the route-to-market alternatives for Battery Energy Storage Systems (BESS) in Italy during a recent presentation, analyzing merchant, tolling, swap, and Capacity Market structures. The merchant approach is estimated to generate total annual revenues of 127.09 k€/MW/y, split between 61.26 k€/MW/y from the Day-Ahead Market (MGP) and 65.83 k€/MW/y from flexibility markets, with a stable profile from 2028 to 2042. Casa highlighted the Capacity Market as a key stabilizer, noting new derating mechanisms would award a premium of 24.5 k€/MW/y for a 4-hour BESS in Northern Italy, rising to 48 k€/MW/y in closed auctions, with the Ministry expecting 20% of revenues to come from regulated market fixed premiums over 15 years. The article notes the national BESS capacity potentially eligible has nearly reached 90 GWh, over five times Terna's indicated national need of 16 GWh for the 2029 auction. The session also compared fixed tolling (lowest risk, revenues fixed for 7-15 years) against day-ahead swaps (flexible, capturing upside on intraday and MSD markets) and intermediate structures with guaranteed floors and shared upside.

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