Did you miss out on Italy's MACSE Auction? Here is why you shouldn’t give up

MACSE stands for Meccanismo di Approvvigionamento di Capacità di Stoccaggio Elettrico, which translates to Electricity Storage Capacity Procurement Mechanism. It is a regulatory framework introduced in Italy to accelerate the deployment of large-scale energy storage systems, primarily battery energy storage (BESS), to support renewable integration and grid stability.

This article is essential reading for anyone looking to engage in energy storage or flexibility tenders, as it distils the lessons from Italy’s landmark MACSE auction, offering strategic insights on how to re-tool, pivot, and succeed in highly competitive markets, while highlighting the critical importance of adapting bidding strategies, understanding regulatory shifts, and navigating the evolving landscape of merchant and hybrid opportunities across Europe and beyond.

So, you've missed out on securing a contract in Italy's hyper-competitive first MACSE auction. The question now is: what should you do next when it comes to the Italian battery market?

Our recommendation is to push ahead, but with a critical strategic choice.

This first auction was not a one-off event; it marked the opening 10 GWh round of a 50 GWh marathon. With 2 more MACSE auctions needed to meet Italy's storage targets to 2030, the ‘dust yourself off and try again’ approach remains entirely valid – though undeniably it comes with its own challenges.

Developers now face a pivotal decision. Do you learn from these tough results, refine your bid, and compete fiercely in the next MACSE auction, or, pivot to a targeted merchant strategy, capturing value where subsidies won’t reach? What alternative routes-to-market exist beyond MACSE, and how do opportunities vary across the different market zones in Italy?