Energy Communities in Urban Areas: Comparison of Energy Strategy and Economic Feasibility in Italy and Spain

Abstract

Energy communities using renewable energy sources directly contributes to reduction of climate change gas emissions and energy consumption in the European Union. In addition, energy communities enable citizens to transform from (passive) consumers to prosumers (active consumers and producers) and to play a proactive role in the deployment of energy transition in urban areas. As the transposition of European rules about energy communities into the national laws of EU Member States is very articulated and differentiated, this study proposes a framework to analyze and compare regulatory and financial instruments. This framework is applied to the analysis of the cases of Italy and Spain as representative of European states in which collective actions in the energy sector are not very common, with the aim of highlighting the main critical issues affecting the effectiveness of energy transition strategies and assessing the economic feasibility of energy communities. Based on analysis of regulations and procedures, including at the local level, it appears that municipalities play an important role as promoters of initiatives among citizen communities, while complex bureaucratic procedure is the most critical issue in both countries and can significantly hinder the spread of energy communities. With respect to the different financial incentives available for the formation of energy communities in Italy and Spain, a few cases studies are hypothesized, calculating the most relevant cost-effectiveness indicators, e.g., Net Present Value. It turns out that a project with the same characteristics achieves greater economic feasibility in Italy than in Spain, depending on the type and size of incentives set by national laws and, above all, that financial incentives are necessary to make the formation of energy communities cost-effective and thus to achieve direct citizen involvement in energy transition actions.

Achieving Net Zero Condominiums through Energy Community Sharing

“…The promotion of RECs and CSGs in Italy is supported by the combined action of direct economic contributions and tax incentives (tax deductions) [48] and digital monitoring tools (production and consumption). The map of primary cabins for renewable energy communities [49], introduced by the Energy Services Manager (GSE), represents another useful tool that allows stakeholders to programmatically promote RECs and CSGs.…”

“…With the Integrated National Energy and Climate Plan (INECP) for the period 2021-2030 (2019) [50], the combined action of energy efficiency interventions of the building stock and self-consumption (single and/or collective) is confirmed to achieve the minimum quota of renewable sources in new buildings or renovations, in line with the objectives of nearly zero-emission buildings (NZEB). The promotion of RECs and CSGs in Italy is supported by the combined action of direct economic contributions and tax incentives (tax deductions) [48] and digital monitoring tools (production and consumption). The map of primary cabins for renewable energy communities [49], introduced by the Energy Services Manager (GSE), represents another useful tool that allows stakeholders to programmatically promote RECs and CSGs.…”

“…In this sense, the harmonization of urban planning tools and financial incentives, in line with European policies, constitute a key factor in achieving full economic feasibility for RECs, CSGs, and other more ambitious policies. In particular, participatory urban planning actions contribute to progressive awareness for a just energy transition [48]. In the same COP 21 in Paris, the conference where global agreement for the reduction of emissions into the atmosphere was discussed, the central role of the Just Transition [54] was stressed, with explicit reference to a fair and balanced energy transition.…”

Overview of Sustainable Mobility: The Role of Electric Vehicles in Energy Communities

“…The planning, dissemination, and implementation of new technologies are often hindered by the slow pace of legal changes. A review of national policies is certainly useful and effective [90][91][92].…”