Italy sets its 2028 capacity auction for 21 December, with higher derating for new batteries

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Italy's capacity market is back on the calendar. Terna announced on 19 October 2026 that the auction for the 2028 delivery period will take place on 21 December 2026. The technical rules for the round were approved by the Ministry of Environment and Energy Security on 16 October, two days after the energy regulator ARERA confirmed they comply with its criteria.

A tight participation window

The timetable leaves little slack. Participation requests can be submitted through Terna's portal from 20 October until 12:00 on 3 November 2026. Once Terna confirms a request, the unit data and supporting documentation are due by 23 November, the same date as the guarantee deposit for new or repowered units that are not yet authorised. The general guarantee deposit follows on 14 December, a week before the auction opens at 10:00 on 21 December.

Less capacity credit for new batteries

The most material change for storage developers sits in the derating rules. Terna updated the derating rates for electrochemical storage using newer data on the storage build-out it expects, covering authorisations already granted and those expected before the auction. That estimate is net of the capacity that may be selected in the MACSE 2029 storage auction, which is scheduled for November. ARERA notes that the rates have been revised upward. All else equal, this reduces the capacity remuneration a new battery can earn in this auction.

The geographic differentiation by macro-zone and the underlying methodology are unchanged. What has moved is the expected volume of storage on the system. That changes the contribution each additional megawatt of battery capacity is assumed to make at times of system stress. Please note that ARERA limited the effect of these rules to the 2028 procedure.

More flexibility on delivery start

New capacity also gains more flexibility on timing. A winner can postpone the start of its delivery period to December of the first delivery year, provided it notifies Terna by 30 April of the year before. Terna then runs an adjustment auction within 60 days to account for the deferred capacity. The rules also change the import limit between the northern foreign virtual area and northern Italy, aligning it with imports recorded during critical periods in 2025.

What it means for storage revenue stacks

For battery developers in Italy, the capacity market and MACSE are now closely linked. The ministry asked Terna to consider running the 2028 capacity auction after the November MACSE auction. The storage estimate behind the new derating already accounts for MACSE volumes. For new batteries entering the December auction, the lower capacity credit means merchant revenue from energy arbitrage and ancillary services carries more of the business case.

That makes a clear view of spreads, negative price hours and balancing revenue more important when sizing duration and choosing between routes to market. Synertics tracks capture prices, balancing and ancillary services data across European markets in SEMT. If you are weighing a capacity bid against a merchant or tolling structure, you can start with SEMT at https://synertics.io/signup/ or reach us at info@synertics.io to discuss your portfolio in more detail.