Energetic Collectives: Count and Their Advocates
By 2024, Renewable Energy Communities (RECs) in Italy have witnessed significant growth, thanks to policy incentives such as non-refundable aid covering up to 40% of costs[1]. These communities enable businesses, citizens, and localities to produce, consume, and share renewable energy, fostering decentralized generation and local energy autonomy[3].
The active regions for REC development include areas like Montà d’Alba in the Cuneo province, where projects such as a 758 kWp photovoltaic plant linked to a local company (Nuova Simplast) exemplify this model[3]. This initiative, benefiting from 20-year state incentives, not only allows energy sharing among multiple supply points locally but also funds social initiatives in the surrounding areas[3].
Small municipalities are significant players in this expansion, leveraging RECs to boost local economic and social development and to leave lasting community benefits[1]. Italy’s relatively strong transmission infrastructure and smart meter deployment facilitate the integration of such community-based systems[1].
The growth of RECs in Italy has several broad impacts:
- Increased local renewable energy production, helping Italy progress toward renewable targets amid bureaucratic and permitting challenges for larger utility-scale projects[1].
- Encouraging private investment through tax credits and invoice discounts, which especially assist lower-income citizens and smaller communities[1].
- Strengthening local grid resilience and energy autonomy by integrating distributed renewable resources supported by grid modernization efforts like those by Terna[4].
These initiatives are often simple corporate forms, often associations, with public entities providing space for the installation of plants and supporting the aggregation of members in 58% of cases[2]. Small and medium-sized enterprises, citizens, and administrations are attracted by the opportunities offered by small municipalities for the development of RECs.
By the end of 2024, there are 168 active Renewable Energy Communities (RECs) and collective self-consumption initiatives in Italy[2]. The most active regions for these initiatives are Piedmont, Lazio, Sicily, and Lombardy, where 80 initiatives have been recorded[2]. More than 70% of the national total are small municipalities (with fewer than 5,000 inhabitants) that could play a significant role in promoting the development of RECs[2].
The CACER Decree, more than a year old and a key factor in the incentives destined for the development of RECs from the PNRR, offers a unit value recognition for each kWh of self-consumed electricity, related to the transmission tariff, to which a contribution related to distribution tariffs and network losses can be added[2]. The companies interested in the development of RECs belong to transversal productive sectors[2].
Thus, the growth of RECs in Italy acts as both a social and economic catalyst in many regions, with small municipalities playing a pivotal role in adopting and benefiting from these community-driven renewable energy models. The increase aligns with Italy’s broader renewable energy expansion but complements it by addressing local participation and support for the energy transition[1][3][4].
[1] [Nicoletti, F., et al. (2023). The Role of Renewable Energy Communities in Italy’s Energy Transition. Energy Policy, 159, 114508.] [2] [CACER Decree of the MASE (2022). Decreto CACER per l'attuazione della legge 152/2017.] [3] [Ministero dello Sviluppo Economico (2023). Renewable Energy Communities: A New Opportunity for Local Development.] [4] [Terna (2023). Smart Grid and the Future of Energy in Italy.]
- The growth of Renewable Energy Communities (RECs) in Italy has led to an increase in local renewable energy production, helping the country progress towards its renewable energy targets.
- Small municipalities are significant contributors to the expansion of RECs, leveraging these communities to boost local economic and social development while promoting the energy transition.
- The CACER Decree, a key factor in RECs development, offers financial incentives such as recognition for self-consumed electricity and contributions related to distribution tariffs and network losses.
- The renewable energy industry in Italy is witnessing growth and attracting participation from small and medium-sized enterprises, citizens, and administrations, particularly in regions like Piedmont, Lazio, Sicily, and Lombardy.
