MACSE auction: A game changer for Italy’s energy storage sector

With the first auctions for procuring new storage capacity in Italy expected in the second quarter of 2025, Aurora Energy Research has analyzed the internal rate of return for projects supported by the Energy Storage Capacity Procurement Mechanism (MACSE) and found that in certain cases expected returns exceed 9%, providing a high level of revenue security.

From ESS News

2025 is set to see rapid growth in investment in the Italian energy storage sector, led by battery energy storage systems (BESS), with the implementation of MACSE. The eagerly anticipated procurement exercise will offer a stable, predictable premium over 15 years, making it particularly attractive for risk-averse investors.

According to Aurora Energy Research, the internal rate of return (IRR) analysis underscores the financial sustainability of projects supported by MACSE. For example, projects in Southern Italy and Sardinia could achieve IRRs exceeding 9% even with minimal exposure to energy market volatility, as MACSE provides a high level of revenue security.

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