Frequently asked questions about Renewable Energy Communities (RECs)

Renewable Energy Communities provide an innovative model for the production and management of energy resources in Italy, with the aim of contributing to the transition to clean energy and the reduction of polluting emissions. Through RECs, thanks to collaboration with other people or with businesses and local government organizations it’s possible to actively contribute to the production, sharing and storage of energy. This basically means less waste, in favor of an innovative energy management model that also helps create a sense of local community. Is it necessary to live in the same building in order to share energy? No, it isn’t. You don’t have to live in the same building in order to share energy, nor do you have to live in the neighboring buildings. As stipulated in Legislative Decree 199 of 2021, sharing refers to the primary electrical cabin: it’s possible for neighborhoods, citizens, or even small neighboring municipalities to share energy. Where can the plant be set up in order to produce energy? The system should be installed in close proximity to consumers. Ideal locations for this purpose include disused industrial land or the roofs of a public building (e.g., a school). What is the difference between collective self-consumption and Energy Communities? Both configurations are based on the self-generation of renewable energy, but differ in the location of the systems. With Collective Self-Consumption (CSC), self-consumers, acting collectively, are located within the same building or condominium: the energy produced can be shared by apartment buildings or co-owners, but is limited to the specific location where it is generated. With Energy Communities, on the other hand, plants are located close to each other, but not necessarily in the same building. How do you join an Energy Community? Who can manage it? Participation is voluntary and open to anyone who expresses interest through a membership application. In order to join an REC, it is necessary to be part of the eligible entities stipulated by the law (individuals, small and medium-sized enterprises, local entities or authorities, municipal governments, research and training entities, religious, third sector and environmental protection organizations), to be a consumer or producer of energy and to depend on the same primary electricity transformation cabin. Members appoint a delegated person who is then responsible for managing the Renewable Energy Community - more information can be found on the “Gestore Servizi Energetici” (GSE) website. Are there any incentives for Energy Communities? Yes, there are. The Legislative Decree 199 of 2021 provides for incentives that apply to the energy consumed virtually by the REC through which the renewable plant can be built, thereby providing a financial benefit to REC members. The amount of incentives will be defined in the implementing decree for RECs. Furthermore, the National Recovery and Resilience Plan (NRRP) allocates a total of 2.2 billion euros to support the establishment of RECs in municipalities with less than 5,000 inhabitants. There are also individual calls for regional incentives. It is worth pointing out that incentives are provided on both energy fed into the national grid and energy shared by community members, and they cover all types of installations, from a few kilowatts up to 1 MW. What is the maximum capacity of the total number of renewable source plants that can belong to the same REC? The maximum total capacity of the plants was recently increased to 1 MW, in accordance with the provisions of Legislative Decree 199/2021; this is the size limit for access to incentives currently in force. How do Energy Communities come into being? In Europe, the development of renewable energy communities began in the 1970s, with the installation of a number of wind farms by citizen cooperatives in Denmark. In the 1980s the phenomenon then spread to Germany and Belgium. In Italy, the first experiences with RECs date back to the early 2000s, mainly in the northern part of the country.

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Frequently asked questions about Renewable Energy Communities (RECs)

Frequently asked questions about Renewable Energy Communities (RECs)

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