The Benefits of the Capacity Market

The Capacity Market is a key component for the stability and security of the electricity grid, especially in a context of increasing integration of intermittent renewable energy sources, such as solar and wind. This system ensures the availability of generation capacity by offering payment to owners of generation plants distributed according to their availability

Energy Sustainability
Facilitates the energy transition because it supports the use of renewable energy sources, integrating clean energy into the grid and incentivising innovative solutions.
System Reliability
Allows energy to be available at all times, reducing the risk of blackouts or power shortages, even during periods of high demand.
Economic Opportunities
Participating companies receive remuneration for making their production capacity available, contributing to the stability of the system.

How Does the Capacity Market Work?

The programme is based on an auction mechanism in which owners of distributed generation plants within Enel's portfolio can participate. 

Lasting one year, auctions are called even years in advance to allow Terna to better plan the future stability of the Italian power grid

 

Enel's Role in the Capacity Market

Enel plays a central role in the Capacity Market, thanks to its expertise in energy management. Aggregated participation through the Enel Group provides numerous benefits in terms of remuneration, optimisation of administration time, and simplification of operational participation modes. The aim is to make participation in the Capacity Market simple, beneficial and strategic.

FAQs

What is the Capacity Market and how does it work in Italy?

The Capacity Market is a mechanism that remunerates energy producers for ensuring the availability of electrical capacity. The competitive auctions organised by Terna establish a premium for operators who commit to feeding energy into the grid, helping to maintain the reliability of the electricity system.

Who can participate in the Capacity Market?

Generation operators (renewable and conventional), storage systems, and Demand Response programmes can participate. These participants offer their capacity to support the power grid when needed.

What is the economic benefit of participation?

Capacity Market participants are remunerated for the availability of capacity, regardless of whether the energy is actually demanded or not. This offers an economic opportunity for anyone with a generation or storage system.

How can I participate in the Capacity Market with my generation plant?

If you have a generation plant or a storage system, you can participate in the Capacity Market through Enel, which offers support to aggregate your capacity and optimise the economic benefits. Contact us for more details.

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