Le aste del Capacity Market in Italia

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The regulatory framework of electrochemical storage systems in long-term capacity procurement contracts through competitive auctions organized by Terna for the capacity market…

The evolution of electricity storage capacity in Italy is summarized in the following figure, taken from the Terna Snam 2022 Scenario Document and the following one, taken from the Piano di Sviluppo (Terna 2023 PdS . According to Terna’s Fit-for-55 scenario by 2030, in Italy, )electricity generation from renewable sources must more than double compared to 2019, going from 113 TWh to 239 TWh, essentially to the detriment of thermoelectric production (from 169 to 80 TWh by 2030). These objectives will be achieved through an increase in installed RES capacity (Renewable Energy Sources) from 55 GW in 2019 to approximately 122 GW in 2030, whose integration into the system requires, in addition to strengthening the grid, an increase in storage capacity up to 95 GWh.

The objective of 95 GWh by 2030, corresponding to approximately 15 GW, would be achieved, according to Terna, through 2 GW of storage capacity already contracted through the auctions for 2024, 4 GW Capacity Marketof distributed storage, largely integrated into the plants photovoltaic and, finally, 9 GW of utility scale storage, deriving from the auctions pursuant to art. 18 which is discussed below.

Supply system of electricity storage capacity (art. 18 Legislative Decree n.210/2021)

The art. 18 of Legislative Decree 8 November 2021, n. 210, introduced into the architecture of the Italian electricity market a new system for the supply of electricity storage resources ( RdS ), to be added to the energy, ancillary services and capacity markets. More in detail, the art. 18 provides that:

  • Terna, in coordination with the Distribution System Operator (DSO) submits for the approval of the MASE, after consulting Arera, a proposal for the temporal progression of the storage capacity requirement ( CdS ), broken down on a geographical basis and in terms of the type of accumulation in relation to the type of function to which the requirement refers. The proposal has the aim of optimizing the use of electricity produced by RES, encouraging its integration into the markets, ensuring greater flexibility of the system and taking into account the needs already identified in the PNIEC, the presumable geographical concentration of requests for Piano Nazionale Integrato per l’Energia e il Clima to electricity grid of RES production plants, in particular non-programmable, grid developments and service needs;
  • Arera defines the criteria and conditions on the basis of which Terna develops and presents to the Minister, for its approval, a proposal to regulate the long-term procurement system of the CdS, based on competitive auctions, carried out by Terna , transparent and non-discriminatory and based on the following general principles:
      • minimization of costs for end customers;
      • procurement of newly built CdS , according to periodic and contingent capacity auctions;
      • acquisition carried out according to criteria of technological neutrality in compliance with technical requirements defined by Terna, based on the security needs of the electricity system;
      • recognition to the holders of the awarded CdS of the right to receive an annual remuneration for the entire delivery horizon, against the obligation to make said capacity available to third parties for participation in the energy markets and related services;
    • issuing of specific guarantees before the award following the auctions.
    • At the moment Arera identifies:
      • the criteria for awarding the CdS , taking into account the investment costs, the operating costs of the different technologies, as well as a fair return on the invested capital;
      • the conditions under which the awarded CdS is made available to the market through the centralized platform managed by GME, as well as the criteria and conditions for the organization of the platform itself and the methods of use of the CdS by market operators, including through aggregators;
      • the conditions and methods for the development of the CdS directly by Terna, in the event that third parties have not expressed interest in developing the necessary CdS in whole or in part, without prejudice to the fact that Terna will not be able to manage the capacity created;
    • the forms of coverage of the CdS ‘s supply costs, through tariff mechanisms suitable for minimizing the burdens for end customers and the methods for monitoring the effects of the supply mechanism on the electricity system and on the markets, also in relation to the objectives of the measure.

With the DCO 393/2022/R/eel and the subsequent one delibera 247/2023, Arera has defined the aspects of competence relating to the new forward procurement system of electricity RdS . The main topics addressed in the consultation will be described in the next news.   Stay Tuned!

Stay Tuned!