Terna’s 2028 Capacity Rules Reset Battery Value in Italy

Italy’s new capacity-market rules are repricing batteries, cutting accredited value and making market design the key driver of storage returns.

Updated

What is this trend?

Terna’s 2028 capacity-market rules lower accredited value for batteries, making market design and compliance more important than hardware alone in Italy’s storage economics.

  • 4-hour batteries drop to 53% accredited capacity under the new curve, from 67%.
  • Island zones face even lower capacity value, widening regional economics gaps.
  • Italy’s decree adds limited delivery flexibility, but the bigger shift is rule-driven repricing.
  • Storage returns now depend more on accreditation, controls, and market access than nameplate size.

What’s the latest?

Terna’s 2028 capacity-market methodology sharpens the repricing already underway: a 4-hour battery now earns 53% accredited capacity, down from 67% under the prior curve, with even lower value in island zones.

How it developed

  1. Curtailment Drives Two-Hour BESS Procurement, Storage Turns Contracted, and Supply Chains Regionalize
    • Storage Monetization Is Shifting From Merchant Arbitrage to Contracted Infrastructure

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