For too long we have been waiting for the government’s implementing decrees, thanks to which CERs would finally become a reality under the banner of the local circular economy.
- Definition and advantages of Renewable Energy Communities
- The differences between Collective Self-consumption and Energy Communities
- The state of the art of CERs
Definition and advantages of Renewable Energy Communities
CERs represent a circular economy model that generates energy in an independent and decentralised manner by groups of citizens, small and medium-sized enterprises, entities and organisations, through the use of renewable energy sources, of which the most popular is, as can be easily guessed, photovoltaics. These actors or entities are referred to as prosumers, i.e. producers and consumers of energy at the same time.
In the medium to long term, joining these communities will save on the cost of electricity, given the significant increase in demand expected in the coming years, when the electricity will make up 50 per cent of global energy consumption against the current 20 per cent. In addition, CERs also have a social implication, not only in terms of sharing energy resources, but also in terms of creating local jobs in terms of building and maintaining the related works.
The differences between Collective Self-consumption and Energy Communities
When a group of people or entities decide to produce electricity, consume it for their own needs or resell it, we speak of collective self-consumption (AUC). Most of these are apartment blocks or companies, since they must be in the same building, unlike energy communities.
The main difference between collective self-consumption and CERs lies in the degree of sharing and cooperation.
While both seek to optimise the use of local energy resources, energy communities tend to be larger and more structured, representing a distinct legal entity requiring more complex governance and investment in shared infrastructure.
Therefore, switching from an AUC to a CER mainly requires:
- Formation of an organisational structure: to move from an informal organisation to a more structured energy community, it is essential to establish governance. This means the creation of an association, cooperative or other form of legal entity that allows energy resources to be managed and shared more effectively.
- Investments and shared infrastructure: an energy community requires larger investments in shared infrastructure, such as solar panels or wind generators or energy storage systems or smart grids. Members can contribute financially or through voluntary work to develop and maintain such infrastructure.
- Partnership development: collaboration with companies, academic institutions or other energy communities can enrich available resources and promote knowledge sharing. Partnerships can foster the growth and sustainability of the energy community.
- Education and community involvement: a key element is community education on sustainable practices and the active involvement of members. Community awareness and support are critical to the long-term success of an energy community.
The state of the art of CERs
The implementing regulations, which have been awaited for a year and a half now, are pending talks between the Ministry for the Environment and Energy Security and the European Commission, which, according to the Minister Pichetto are turning on that long-awaited green light that should finally give the green light to CERs and deliver one of the fundamental building blocks in the country’s decarbonisation process.
Taking stock of renewable energy production, Italy ranks second after Spain and has a renewable energy utilisation rate of 20 per cent, a far cry from Europe’s stated targets of 32 per cent by 2030.
The CERs have what it takes to make a substantial and tangible contribution in this direction and to the ecological transition in general, but to reach the 15,000 communities desired by the Minister throughout Italy, there is a long way to go, considering that to date there are only a few dozen and that Germany, a virtuous European member taken as a yardstick, has a few thousand.
However, it takes more than goodwill and investment in CERs, but a choral action across the entire electricity sector involving both the grid expansion and the installation of batteries.
However, by 2050 it is estimated that 264 million EU citizens will join the energy market as prosumers, generating up to 45% of the total renewable electricity.
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