Will MACSE auction put Italy at the front of battery deployment?

Attendees at the NetZero Milan summit last week heard an anticipated flood of subsidized utility-scale batteries will help meet all the nation’s grid needs.

Italy Poised to Lead Large-Scale Battery Storage with MACSE Auction While Oversupply Drives Down Prices

Energy storage insiders at the NetZero Milan trade show revealed that Italy is set to become a frontrunner in large-scale battery deployment, thanks to the upcoming MACSE (Massive Accumulo di Capacità per il Sistema Elettrico) auction in September. However, industry leaders warn of market oversaturation, mirroring past challenges in the solar PV sector.

Price Pressures & Industry Consolidation
Giuseppe Artizzu, CEO of NHOA Energy, cautioned that the battery supply chain could follow the same path as solar modules—marked by structural overcapacity that should lead to consolidation but instead leaves the market fragmented and unprofitable. Domingo Zhu, Senior Sales Director at BYD, agreed that prices will keep declining, though only marginally.

Artizzu emphasized that advancing battery storage is critical for Italy’s grid stability, supporting:

✔ Frequency & voltage regulation

✔ Virtual inertia

✔ Short-circuit current mitigation

MACSE Auction: High Stakes & Tight Deadlines
The MACSE auction, designed to accelerate Italy’s energy transition, is expected to be oversubscribed by up to 4x the permitted capacity. Roberto Massarenti (Natixis CIB) warned that only select projects will secure financing, potentially at lower-than-expected prices as banks face limitations in managing multiple sites.

Key Dates:

June 3 – Project submission deadline
July 17 – Qualification on MACSE portal
August 21 – Pre-auction financial guarantees due
September 30 – Auction day
January 2028 – Operational deadline for winning projects
Luca Marchisio (Head of System Strategy, Terna) noted that the timeline “gives operators maximum time for permitting.”

Will MACSE Reshape Europe’s Storage Market?
With fierce competition and merchant revenue models likely, Italy’s MACSE auction could set a new benchmark for Europe’s energy storage sector—if execution avoids the pitfalls of oversupply. The coming months will test whether industrial policy can keep pace with rapid market evolution.