The Emerging Trends of Renewable Energy Communities’ Development in Italy

Abstract

Increasing concerns over climate change and energy poverty have triggered the transition toward a decentralized energy system through the widespread adoption of renewable energy technologies. Although this transition was led, over past decades, mainly by major investors and large industrial players, citizens and local authorities are increasingly playing an active role in delivering clean energy investments. In particular, the current European Renewable Energy Directive introduced Renewable Energy Communities (RECs), which allow citizens to collectively organize their participation in the energy market, leading to a more distributed renewable energy system and new forms of sustainable, collaborative, and democratic economies. RECs currently under implementation show differences among European countries due to the different national contexts. A literature review exploring the peculiar Italian regulatory framework on RECs and its recent evolution has been carried out to identify available national and regional financial support mechanisms, barriers, and emerging trends in the diffusion of RECs across the country. The paper reviews and describes three main approaches that emerged in the development of RECs in Italy, discussing their strengths, and limitations. In addition, it provides a brief comparison of the regulatory framework in different European countries, highlighting the distinctive features of the Italian experience. Although the development of RECs in Italy involved a combination of both public and private initiatives, the leading role of local authorities as promoters and aggregators of RECs is evident. This role helps preserve the social impact of RECs but might slow down their implementation due to bureaucratic issues often linked to public procedures and procurement processes, as well as the lack of sufficient expertise within local authorities.

Niches Seeking Legitimacy: Notes about Social Innovation and Forms of Social Enterprise in the Italian Renewable Energy Communities

“…Against this background, RECs are gaining momentum as configurations for decentralized energy systems [1] that encourage end-users to adopt "sustainable energy technology and strategies in groups and/or on shared property, in contrast to traditional individualistic adoption" [2]. In the Renewable Energy Directive II, RECs are defined as legal entities based on open and voluntary participation, which are autonomous and effectively controlled by 2 of 13 shareholders localized close to the renewable energy projects that are owned and developed by that legal entity.…”

Virtual energy sharing and energy communities for the Municipality of Milan: The case of the Chiaravalle area

“…Renewable energy communities (RECs) have been identified as key tools in supporting the transition to sustainable development and renewable energy sources [1]. In 2019, the Clean Energy for All Europeans Legislative Package (CEP) [2] acknowledged the pivotal role of energy community (EC) ownership in advancing the European Union's climate and energy objectives [3], [4].…”

“…Italy's energy legislation involves collaboration between national and regional authorities, with regions actively promoting REC initiatives. Piedmont and Puglia were early adopters, enacting laws in 2018 and 2019, respectively, to incentivize REC development [1]. Most Italian regions have implemented measures to support RECs, with 16 identified regional initiatives as of September 2022.…”

“…Studies in 2021 highlighted these models, summarizing their characteristics, including stakeholders, goals, funding, subsidies, and benefit distribution among the members . In Italy, the majority of the initiatives fall under the top-down approach, led by local authorities or non-profit organizations [1]. In this context, small municipalities face challenges in technical and administrative expertise, while large municipalities struggle with citizen engagement and aggregation criteria.…”

Sharing Is Caring: Exploring Distributed Solar Photovoltaics and Local Electricity Consumption through a Renewable Energy Community

“…It is important that different Member States exchange ideas regarding the REC's national legislation, aiming to replicate the strong points while adapting to each context [36]. In Italy, for example, regional energy authorities can also create specific laws to promote the creation of RECs in their territory, as in the example of the Piedmont and Puglia regions [37]. The French case plays a pioneering role in collective energy organizations; in 2015, incentives to be part of local renewable energy projects were already established [38].…”