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May 13, 2024

Italian battery investment case: “A new model”

2 min

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“15 year MACSE long term contract support is a game changer for BESS investors”

Our feature content this week is video based. You can meet some of the Timera power team in a recording of our recent ‘A new model’ webinar focused on how policy changes in Italy may see it evolve into Europe’s fastest growing storage investment market.

Click here for the slide pack from the webinar.

Click here to watch the webinar video recording.

Interested in some of the content covered? Here is a taster of a couple of excerpts from the webinar:

1. What is driving Italy’s strong support for storage investment?

We set out how Italy plans to deploy an additional ~50 GW solar & 16 GW of wind capacity by 2030. A significant portion will be deployed in Southern & Island regions, which will soon face a critical lack of flexibility as shown in Chart 1. Electricity storage investment is key to maintaining system security of supply & enabling RES growth.

Chart 1: Italian system challenge: RES build in the south, demand in the north

Source: Timera Energy

2. Revenue stack backtest analysis for Italian batteries

We discuss how the Italian BESS revenue stack has evolved to date (see Chart 2) and how it will be impacted by the introduction of the MACSE scheme.

Chart 2: Backtested revenues for North Zone 4hr BESS asset

Source: Timera Energy

3. Choosing MACSE or Capacity Market investment route?

We discuss why it is not necessarily an obvious decision to choose MACSE over the Capacity Market from a risk/return perspective and discuss analysis comparing different options (see Chart 3).

Chart 3: MACSE vs Capacity Market investment routes

Source: Timera Energy, example for 4h duration BESS

For more details click on the links above to see the webinar pack and view the webinar.

 

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Italian battery investment case: “A new model”