The Emerging Trends of Renewable Energy Communities’ Development in Italy

Anita Tatti, Sibilla Ferroni, Martina Ferrando, Mario Motta and Francesco Causone ()
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Anita Tatti: Energy Department, Politecnico di Milano, 20156 Milan, Italy
Sibilla Ferroni: Energy Department, Politecnico di Milano, 20156 Milan, Italy
Martina Ferrando: Energy Department, Politecnico di Milano, 20156 Milan, Italy
Mario Motta: Energy Department, Politecnico di Milano, 20156 Milan, Italy
Francesco Causone: Energy Department, Politecnico di Milano, 20156 Milan, Italy

Sustainability, 2023, vol. 15, issue 8, 1-18

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.

Keywords: energy community; Renewable Energy Community; RED II; energy transition; Italian regulatory framework; developing model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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