Macse bess Algeria

What are the benefits of the MACSE scheme?

We have summarised the benefits that the MACSE scheme offers BESS investors in a previous article, but a quick recap on key features: 71 GWh (12-15GW) of Terna storage tenders targeted by 2030. First auctions are scheduled for December 2024, with the first capacity delivery year for BESS likely to be 2027.

What is MACSE policy support?

The catalyst for this is the implementation of the new MACSE policy support mechanism, offering 15 year indexed contracts on up to 100% of asset capacity. MACSE is a game changer. 15 year contracts provide key downside risk protection for infrastructure investors.

How will MACSE tender targets affect Bess investors?

MACSE tender targets will adapt to the zonal need for storage, but market inefficiencies in predicting fundamental value drivers (e.g., RES buildout, lack of flexibility, interconnection constraints) will likely create locational merchant upside for BESS investors.

Is MACSE a good investment?

MACSE is a game changer. 15 year contracts provide key downside risk protection for infrastructure investors. They also ensure highly bankable projects given a strong credit counterparty (the government backed system operator Terna). There have been some important updates this month that impact investors targeting MACSE support.

Does Terna have a MACSE target?

This has reduced the need for procurement of utility storage capacity mainly in the South, resulting in lower MACSE volume targets. However, Terna still has a substantial procurement target of 50 GWh of storage capacity by 2030 under the MACSE scheme.

When will the next MACSE auction take place?

The inaugural MACSE auction is likely to happen in the first half of 2025. The next Capacity Market auctions for 2026-2027-2028 will now likely follow the first MACSE auctions, after resolution of the legal review now happening on the results of the Capacity Market auction for 2025 capacity delivery.