What Are Renewable Energy Communities?

Renewable Energy Communities (RECs) are groups of individuals, businesses, and local institutions that join forces to produce, share, and consume energy from renewable sources. But what exactly are Renewable Energy Communities? They represent an energy management model that promotes collective self-consumption and sustainable energy use within a specific geographical area. Thanks to the national electricity distribution network, energy can be efficiently shared among community members.

Who Assigns the REC Code?

The REC code (Renewable Energy Community code) refers to the primary substation code of a specific geographic location, allowing individuals to identify the closest REC to their properties. There is a geographic constraint requiring all consumers and producers to be located within the same primary electrical substation area. But who assigns the REC code? The Gestore dei Servizi Energetici (GSE) is responsible for managing and regulating the procedures for establishing and recognizing these communities and ensuring compliance with current regulations.

How Do Renewable Energy Communities Work?

How do RECs function? Renewable Energy Communities operate through the local production of energy from renewable sources such as solar or wind, generated by both private and public users. This energy is then shared among community members, reducing reliance on traditional power grids. Each member of a REC can participate as either a producer or a consumer, enabling everyone to contribute by installing shared facilities that generate energy for immediate use or storage for future consumption.

The Environmental and Local Benefits of RECs

The benefits of RECs are numerous. From an environmental perspective, they help reduce CO2 emissions by promoting renewable energy use, significantly lowering the carbon footprint of homes, businesses, and public institutions. Beyond playing a crucial role in the energy transition, creating a REC also offers substantial economic advantages. These communities help reduce energy costs and stimulate local economic growth by generating new job opportunities in system maintenance and management, while also combating energy poverty by cutting down high energy expenses. Additionally, they foster social cohesion and active citizen participation in the energy transition process.

The Future of Renewable Energy Communities in Italy

The future of Renewable Energy Communities in Italy looks promising. The trend is growing rapidly, with 168 active RECs in Italy as of November 2024, marking an 89% increase compared to 2023. The regions of Piedmont, Lazio, Sicily, and Lombardy collectively account for 48% of the total RECs in the country. However, the development of these communities has been slowed by regulatory and bureaucratic complexities.

Despite this growth, Italy still lags behind other European countries, where over 9,200 RECs are currently active—Germany alone has 4,800. However, it is important to consider that the regulatory framework in Germany has been evolving for the past 20 years, whereas in Italy, the legislative process only started taking shape with the implementation decree issued in late January 2024. While still in its early stages, RECs represent a concrete solution for advancing the energy transition, ensuring environmental and economic benefits for all stakeholders involved.