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.