Description
SUMMARY
1 Introduction. 6
1.1 Expanding Renewable Energy and Storage Capacity. 6
1.2 Supply Demand Mismatch. 6
1.3 New mechanism to develop storage capacities: MACSE. 7
1.4 Insight into Mechanism.. 7
1.5 BESS Projects pipeline and STMG/Grid Connection requests. 8
1.6 Scale of capacity to be developed under the mechanism.. 9
1.7 Regional Dynamics and Strategic Implications of Italy’s Energy Storage Expansion. 11
2 CAPACITY MARKET vs MACSE. 12
2.1 Capacity Market 12
2.2 MACSE. 12
3 MACSE : The Mechanism.. 14
3.1 Documents of the Mechanism.. 14
4 Study on Reference Technologies for Electricity Storage. 14
4.1 Eligible Storage Technologies. 15
4.2 Storage Technical Characteristics. 15
4.2.1 Round Trip Efficiency (RTE) 15
4.2.2 Duration of storage. 15
4.2.3 State of Health (SOH) degradation. 16
4.2.4 Regulation Services. 16
4.2.5 Unavailability. 16
4.2.6 Useful Life. 16
4.2.7 Optimal SOC Range (%) 17
4.3 Other Performance criteria. 17
4.4 Investment and operational costs. 18
4.4.1 Capital Expenditure (CAPEX) 18
4.4.2 Operational Expenditure (OPEX) 19
4.4.3 CONE. 20
5 Definition of Discipline. 22
5.1 Auction Schedule. 22
5.2 Project construction timeline. 23
5.3 Auction Participation Requirements. 23
5.4 Eligible Criteria for Storage. 23
5.4.1 Requirements for Qualifying. 23
5.4.2 National Capacity requirements, Quota per Area and Delivery Periods. 24
5.4.3 Selection Algorithm.. 25
5.5 Remuneration. 25
5.6 Coefficients. 26
5.6.1 Extra-Performance Coefficients. 26
5.6.2 Area Coefficients. 28
5.6.3 Participant Bid Calculation. 29
5.6.4 Auction Price Cap. 30
5.7 Obligation and options for Assignees. 30
5.8 MACSE Revenues and Upsides. 31
5.8.1 During MACSE Contract 31
5.8.2 Upsides: Merchant Operation Before and After MACSE Contract 32
5.8.3 Mechanism design and payment flows. 32
5.9 The Introduction of TIDE and Its Impact on Energy Storage System Participation. 33
5.10 Time Shifting Contracts. 34
5.10.1 Contracts Characteristics. 34
5.10.2 Validity period. 35
5.10.3 Rights and Responsibilities of Market Operators in Time Shifting Contracts on the GME Platform.. 35
5.10.4 Time Shifting Trading Platform.. 36
6 Conclusions. 36
7 Bibliography. 39