Italy opens ancillary services market to pilot renewable energy and storage projects

The Italian energy and gas regulator AEEGSI has issued the deliberation 300/2017/R/EEL with which it authorizes pilot renewable energy power generators and storage units to participate to the ancillary services market (MSD, Mercato Servizi di Dispacciamento) operated by the country’s grid operator Terna.

The AEEGSI said this project is the preliminary phase of an organic reform of the ancillary services market, which will be defined in the document “Testo integrato dispacciamento elettrico (TIDE)” in accordance with the European balancing code.

The authority said that pilot projects for storage and renewables will be selected following “harmonized procedural criteria” by Terna and operators from the energy sector.

The regulator stressed that it will initially consider storage units coupled with power generators that already participate in this market. The deliberation also provides the minimum criteria for pilot projects to have access to the ancillary services market. Selected projects will be submitted to a consultation with the sector’s operators. After the consultation, these projects will be submitted to the AEEGSI for approval.

The MSD is the venue where Terna procures the power resources it needs for managing and monitoring the system relief of intra-zonal congestions, creation of energy reserve, and real-time balancing. In this market, Terna acts as a central counterparty and accepted offers are remunerated at the price offered (pay-as-bid).