Italy’s first MACSE battery auction smashes expectations with 10 GWh awarded at record low prices: The result of the auction are tariffs that came dramatically below the reserve premium which was set at €37,000 per MWh per year.

6 comments

1. This is a lovely bookend to the story that dropped a few hours ago on this sub, about the coal auction in the United States that yielded a single bid, of one tenth of a cent per ton for the right to mine coal on public land. The American auction was for 167 million tons of coal, and the only bidder paid $186,000 for it- equivalent to small house in the middle of nowhere.

   Meanwhile, in Italy, high tech developers are happy to meet the requirement for energy storage, and they’re bidding the price down.

2. wow!
   “the tender closed at an average price of just €12,959 per MWh per year, far below the reserve price of €37,000 per MWh per year set by system operator Terna. Interest from developers was strong, with bids coming in at more than four times the available capacity.”

3. Can someone explain to me this xxx per MWh per year. What is actually paid for?

   I would expect that you have a price in MWh, but this per year is confusing me. Does this mean that it is yearly price, so, someone builds 10 GWh, and then “rents” for the xxx price per MWh, i.e. they get pay every year for the duration of the contract agreed amount of money.

4. If you were to assume the entire cost is paying for the capital with a 15 year economic life and 5% interest, then that works put to €120/kWh. Which would put tue actual capex somewhere below €100/kWh

   To the surprise of nobody, all the braying about chinese bids being fake and utility battery prices under $500/kWh being impossible in the west before 2050 was nonsense yet again.

5. The reserve price 37’000 €/MWh/year, if used daily at 100%, would be equivalent to 0,10€ / kWh.

6. What does this mean? ELI5 please?

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