The new target capacity assessment for the Italian power system

The cost-effectiveness of transmission expansion is one of the main topic addressed in the modern electricity market and needs to be more and more investigated by the Transmission System Operators (TSOs). In order to identify the power systems needs between internal bidding zones and, as well, at external borders of the Italian power system in the latest future energy scenarios, the Italian TSO has updated and applied once again the target capacity assessment methodology, leading to the identification of additional cost-effective transfer capacities at long-term 2030 and very long-term 2040 horizons. In this paper the novelties introduced in the reviewed methodology and the results obtained by its application to relevant market sections of the Italian power system in the policy scenario are presented. Moreover, the analysis performed takes into consideration sensitivities in storage capacity and achievable interconnection levels across external borders according to the planned projects, obtaining several scenario sensitivities allowing further relevant evidences about cost-effective development strategies in the uncertain energy transition context.