Cerignola, Province of Foggia — Puglia, Italy
The BESS Cerignola project is a 100 MW standalone Battery Energy Storage System located in the municipality of Cerignola, Province of Foggia, in Puglia — the most photovoltaic-dense region in Italy. The province of Foggia alone had over 21.7 GW of grid connection requests for new solar PV plants as of November 2025, creating a structural and urgent need for large-scale storage infrastructure to balance the grid.
The project is being developed by Studio Santi Engineering S.r.l., an Italian energy engineering consultancy with 30 specialist engineers, a 25-year track record in the Italian energy market, and a demonstrated pipeline of approximately 1.2 GW in renewable energy plants and 700 MW / 5 GWh in energy storage systems. The firm is directed by Dr. Federico Santi, PE — professor of Energy System Analysis and Modeling at Sapienza University of Rome and board member of the Italian Association for Energy Economics.
The project is offered in two alternative configurations: a 4-hour scenario (100 MW | 400 MWh) optimised for merchant markets and ancillary services, or a 6.4-hour scenario (100 MW | 640 MWh) designed for participation in the Italian MACSE mechanism — a state de-risking programme supporting the development of 50 GWh of new BESS capacity in Italy. The two scenarios are interchangeable at container level without requiring changes to the authorisation.
The total site area is 2.1 hectares of perfectly flat agricultural land in the Tavoliere delle Puglie plain. Letters of intent have been signed with the land owners for a purchase (not a lease) upon obtaining all required authorisations. The Minimum General Technical Solution (STMG No. 202501261) for grid connection was issued by Terna S.p.A. in June 2025, reviewed in November 2025, with acceptance deadline set for March 2026.
The BESS Cerignola plant uses a modular containerised architecture compliant with current market standards: each Power Conversion System (PCS) unit is a 5 MVA / 20ft container, and each battery unit is a 20ft container rated at either 5 MWh (400 MWh scenario) or 8 MWh (640 MWh scenario). The design fully complies with the Italian Fire Brigade Guideline No. 21021 of 23/12/2024, which defines the maximum allowable energy density per fire compartment. The 640 MWh configuration is achieved by simply substituting the 5 MWh containers with 8 MWh units — with no impact on the authorisation perimeter.
The site sits on the Tavoliere delle Puglie plain, characterised by Quaternary alluvial sediments offering optimal geotechnical conditions: perfectly flat terrain, good soil bearing capacity, and favourable electrical impedance. The total site is divided into two lots — Lotto A (1.23 ha, 45 islands, 180 MWh / 288 MWh) and Lotto B (0.87 ha, 55 islands, 220 MWh / 352 MWh) — for a combined footprint of 2.10 ha. The plant connects via an underground 36 kV cable approximately 3 km long, running entirely along public roads, to a new 380/220/36 kV electrical substation being built by Terna on a LILO (line-in line-out) basis along the 380 kV Andria–Manfredonia power transmission line. No expropriation is required. The investor retains full flexibility over hardware and software solutions — no OEM exclusivity is imposed.
The project is structured as a co-development transaction, with the total co-development fee set at €25,000/MW — €2.5 million in total — payable in four tranches tied to permitting and construction milestones. The investor participates from an early stage (Q1 2026) and accompanies the project through to Ready-to-Build, retaining the option to either hold the project through to COD or execute a pre-construction exit. Based on average Italian BESS transaction values for 2024–2025 (10–15% of investment cost), the estimated pre-construction market value ranges from €5.1M to €10.9M depending on the capacity scenario, implying an exit gross profit of 2.5x to 5.0x the co-development fee.
Two revenue scenarios are available. The Merchant scenario (400 MWh) targets participation in the Italian Day-Ahead, Intraday, and ancillary services markets (MSD), generating estimated revenues of €8.0M/year and a project IRR of 10.0%. The MACSE scenario (640 MWh) leverages Italy's de-risking mechanism for energy storage — a state-backed support scheme targeting 50 GWh of new BESS capacity — with an estimated MACSE fee of approximately 13 k€/kWh/year, reducing merchant exposure significantly and yielding a project IRR of 8.8% on a total investment of €72.7M. Hybrid configurations combining MACSE capacity reservation with residual merchant exposure are also feasible. The MACSE fee can alternatively be replaced by an equivalent tolling agreement with an energy company.
Optimised for Day-Ahead, Intraday, and ancillary services markets. Higher revenue upside, higher merchant price risk. Suitable for investors comfortable with Italian power market exposure.
Optimised for MACSE / tolling. State-backed revenue stream (~13 k€/kWh/y estimated), low merchant risk. Preferred for institutional investors seeking de-risked, long-term contracted cash flows.
The total co-development fee of €2,500,000 (€25,000/MW) is paid in four tranches, each tied to a defined project milestone. If the project fails to reach Ready-to-Build, the advance payments are partially refunded to cover only actual development expenses incurred.
| Milestone | Timing | €/MW | Total (€) | % of Total |
|---|---|---|---|---|
| STMG Acceptance + Preliminary Land Agreement | Q1 2026 | 8,500 | 850,000 | 34% |
| AU Filing at Puglia Region (after Terna Benestare) | Q4 2026 | 2,500 | 250,000 | 10% |
| AU Release + Consolidation (4 months after AU) | Q3–Q4 2027 | 12,500 | 1,250,000 | 50% |
| Grid-Related Capital Expenditure / COD | Q2–Q3 2028 | 1,500 | 150,000 | 6% |
| Total | 25,000 | 2,500,000 | 100% |
The project is at an early but well-defined permitting stage. The two critical early-phase deliverables — land security and grid connection — have both been addressed. The Minimum General Technical Solution (STMG No. 202501261) was issued by Terna S.p.A. in June 2025, revised in November 2025, and must be formally accepted by March 2026. Upon STMG acceptance, the investor's initial advance payment is triggered and the permitting phase commences.
The primary construction authorisation required is the Autorizzazione Unica (AU) from the Puglia Regional Authority, pursuant to the Consolidated Law on Renewables (Legislative Decree No. 190 of 25/11/2024). Under Italian law, BESS plants and their associated grid connection works are classified as works of public utility, granting them strategic infrastructure status and facilitating the authorisation process. The AU application will be submitted after obtaining Terna's technical approval (Benestare) of the grid connection design. AU issuance is expected by 2026, with the consolidation period (4 months post-release) completing in Q3–Q4 2027. The land acquisition will be finalised upon receipt of all authorisations via a notarised sales contract — letters of intent with the landowners are already signed.
Because the permitting design has not yet been submitted, the project retains significant flexibility: the investor can incorporate their preferred BESS blueprint (technology, layout, energy management system) without triggering a change-of-scope in the authorisation. Studio Santi holds strong relationships with Terna, DSOs, and regional authorities involved in the process, reducing procedural risk.
Given the project's early-stage status, the risk profile differs from a Ready-to-Build asset. The key risks are concentrated in the permitting phase and revenue model selection. The developer has structured the co-development agreement to partially absorb downside risk: if the project fails to reach Ready-to-Build, advance payments are refunded net of actual development expenses incurred. The following matrix reflects a post-mitigation assessment at the co-development entry stage.
| Risk Category | Risk Description | Rating | Mitigation |
|---|---|---|---|
| Permitting Risk | Delay or rejection of AU or Terna Benestare | Medium | BESS classified as public utility works; Studio Santi has strong TSO/DSO relationships and 25yr Italian regulatory track record |
| STMG Acceptance Risk | Failure to accept STMG within March 2026 deadline | Low | STMG already issued and revised; acceptance is a commercial decision within investor's control once agreed |
| Land Risk | Owner withdraws from sale prior to permit | Low | LOIs signed; preliminary notarial contracts executed at STMG acceptance; Italian law provides expropriation route if needed |
| Merchant Price Risk | Italian power prices below model assumption (Scenario A) | Medium | Mitigated by Scenario B (MACSE) or hybrid approach; MACSE provides long-term contracted revenue floor |
| MACSE Mechanism Risk | MACSE auction delayed or not awarded (Scenario B) | Medium | MACSE 2027 auction anticipated; fallback to merchant or equivalent tolling agreement with energy company |
| Technology Risk | Container technology obsolescence or supply delay | Low | No OEM exclusivity; investor selects preferred supplier; modular design allows phased procurement |
| Grid Connection Risk | Terna substation construction delay | Medium | Substation under construction by Terna (TSO obligation); delay impacts COD but not authorisation |
| Co-Dev Capital at Risk | Project fails to reach RtB; advance payments lost | Low | Contractual refund mechanism: advance payments returned net of actual development costs incurred |
| Regulatory Risk | Changes to Italian energy storage regulation | Low | Studio Santi Director contributed to Italian energy regulation development; strong regulatory intelligence and early-warning capability |
The project follows a two-year development path from transaction initiation to Ready-to-Build, with COD targeted for 2027/28. The timeline is partly contingent on the MACSE auction schedule — if the investor targets MACSE participation, COD alignment with the 2027 auction round may influence the construction start decision.
Detailed technical documentation, financial model, layout drawings, and STMG documentation are available to credentialed investors under NDA. Studio Santi Engineering S.r.l. manages all investor communications directly.