Barcelona — The first of Italy's capacity market auctions has seen nearly 41 GW of capacity approved, of which 34.8 GW is from existing capacity, data published by grid operator Terna showed Friday.
A total of 34.8 GW of existing capacity has been accepted into the scheme at a price of Eur33,000/MW/year ($36,400/MW/year) while 1.8 GW of new capacity was accepted at Eur75,000/MW/year.
Both existing and new capacity awards reached capped levels in the auctions.
Of the total, 1 GW of non-programmable renewables (wind, solar PV, run-of-river hydro) were awarded agreements, Terna said.
The company did not publish details regarding individual projects.
Besides the domestic awards, 4.4 GW were also awarded to virtual capacity, with prices far lower -- between Eur3,449/MW/year and Eur4,400/MW/year.
The capacity corresponds to the first of two so-called "mother auctions" and covers delivery in 2022.
These declining multi-session auctions will be followed up by adjustment auctions which will tailor the outcomes to the grid adequacy objectives after which, a secondary market will be established based on monthly expiry that allows participants to renegotiate their positions.
The process is divided into zones, including external virtual zones each with their own demand curve and individual specifications in terms of derating, load factors and other parameters.
A second auction, covering 2023 is due to be held November 28.
-- Henry Edwardes-Evans, Henry.Edwardes-Evans@spglobal.com
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