Revenues in Italy

Italy-specific modelling considerations for power markets and battery revenues


Italy is a zonal market with distinct price formation across its bidding zones, deep solar-driven day-night spreads in the South and on the islands, and a dedicated storage capacity mechanism (MACSE). These features require modelling approaches specific to the Italian system.

Each Italian battery forecast is run for one of the seven bidding zones, with prices and revenues reported in euros. The Revenue Stack page lists the markets the model includes and those it leaves out.

Italy is split into seven bidding zones

Each Italian bidding zone clears its own price:

Zone Code Area
North ITN1 Northern Italy (largest demand centre)
Centre-North ITCN Central-northern Italy
Centre-South ITCS Central-southern Italy
South ITS1 Southern mainland
Calabria ITCA Calabria
Sicily ITSI Sicily
Sardinia ITSA Sardinia

Solar penetration is highest in the South and on the islands, which are also more constrained on interconnection. This produces the widest day-ahead spreads, and the strongest battery arbitrage signal, in the southern zones. The North holds the largest absolute demand and net-load swing.

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