Observatory
05 December 2024
Renewable Energy Communities: opportunities and state of the art.
In Italy, in a photovoltaic system characterised by the price of modules now at their lowest (but destined to grow) and by the cut in ordinary deductions that will fall from 50% to 36% from 2025, the development of renewable energies finds support in the aggregation of several players and in the self-consumption of energy.
The tax incentives for the residential photovoltaic market are being reorganised. For the sector, which is very relevant for the energy transition, a strategic role is played by Renewable Energy Communities.
What are CERs
CERs are a union of citizens, small and medium-sized enterprises, territorial authorities and local authorities (including municipal administrations), cooperatives, research bodies, religious bodies, third sector and environmental protection bodies, for the sharing of renewable electricity produced by plants for which one or more associated entities are available. In a CER, renewable electricity can be shared among different producer and consumer entities, located within the same geographical perimeter, thanks to the use of the national electricity distribution network, which makes virtual sharing and self-consumption of energy possible.
RECs have their own legal identity. They must be constituted in the form of an association, third sector body, cooperative, benefit cooperative, consortium, non-profit organisation and therefore have their own statutes and articles of association.
Crucially, all producers and consumers of CERs must be located in the geographical area whose connection points to the national electricity grid (PODs) refer to the same primary electricity substation.
Where are the primary booths
On the GSE website, there is an interactive map of the primary substations on the national territory.
Through the map it is possible to
- have a graphic information, based on geolocation, of the area included within the same primary cabin;
- check the code of the primary cabin of a given geographical location identified by address and postcode.
Through the map it is possible to
- have a graphic information, based on geolocation, of the area included within the same primary cabin;
- check the code of the primary cabin of a given geographical location identified by address and postcode.
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How many CERs are already active?
According to the 2024 edition of the Electricity Market Report prepared by the Energy & Strategy of the School of Management of the Politecnico di Milano, there are 168 CERs activated in Italy, +89% compared to 2023. Piedmont, Lazio, Sicily and Lombardy cover 48% of the total with 80 projects. 58% of the promoters are public bodies that provide space for the installation of the systems. 21% are specialised entities supporting private stakeholders and 9% private citizens. In 79% of cases, the initiative involves an external actor such as small ESCos, utilities or energy companies that support the promoter by investing in the installations.
What are the incentives for CERs?
For all CERs there are incentives on self-consumed energy in two different forms:
1) An incentive tariff on energy produced by RES (Renewable Energy Sources) and self-consumed virtually by the members of the CER. This tariff is recognised by the GSE (Gestore Servizi Energetici) - which also calculates the self-consumed energy virtually - for a period of 20 years from the date of commissioning of the RES plant. The tariff is between 60€/MWh and 120€/MWh, depending on the size of the plant and the market value of the energy. For photovoltaic plants, there is a further surcharge of up to €10/MWh depending on the geographical location.
2) A valorisation fee for self-consumed energy, defined by ARERA - Regulatory Authority for Energy, Networks and Environment. Given that the plants located in the southern regions of Italy produce more than those installed in the north of Italy, the following tariff surcharges are envisaged
- +4 €/MWh for Lazio, Marche, Tuscany, Umbria, Abruzzo;
- +10 €/MWh for Emilia-Romagna, Friuli-Venezia Giulia, Liguria, Lombardy, Piedmont, Trentino-Alto Adige, Valle d'Aosta and Veneto.
1) An incentive tariff on energy produced by RES (Renewable Energy Sources) and self-consumed virtually by the members of the CER. This tariff is recognised by the GSE (Gestore Servizi Energetici) - which also calculates the self-consumed energy virtually - for a period of 20 years from the date of commissioning of the RES plant. The tariff is between 60€/MWh and 120€/MWh, depending on the size of the plant and the market value of the energy. For photovoltaic plants, there is a further surcharge of up to €10/MWh depending on the geographical location.
2) A valorisation fee for self-consumed energy, defined by ARERA - Regulatory Authority for Energy, Networks and Environment. Given that the plants located in the southern regions of Italy produce more than those installed in the north of Italy, the following tariff surcharges are envisaged
- +4 €/MWh for Lazio, Marche, Tuscany, Umbria, Abruzzo;
- +10 €/MWh for Emilia-Romagna, Friuli-Venezia Giulia, Liguria, Lombardy, Piedmont, Trentino-Alto Adige, Valle d'Aosta and Veneto.
In addition, all renewable electricity that is produced but not self-consumed remains available to producers and can be placed on the market for sale.
In addition, for CERs whose production facilities are located in municipalities with a population of less than 5,000 inhabitants, a capital contribution of 40 per cent of the investment cost is provided from PNRR resources.
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Read an in-depth article here.