In the context of evolving global energy dynamics, Renewable Energy Communities (RECs) emerge as key pillars for the transition to a more sustainable and efficient system.
RECs are an innovative response to the challenges of energy production and distribution, aiming to transform the way people consume and share energy resources.
The year 2024 represents a turning point for the energy sector in Italy.
Proof of this is the issuance of the CER Decree sought by the Ministry of Environment and Energy Security (MASE) and approved by the European Commission.
What are Renewable Energy Communities?
Energy communities represent a form of association that can be formed among citizens, SMEs, businesses, municipalities, research and educational institutions, religious bodies, third sector entities, and associations.
These are communities that are created with the intention of generating environmental, economic and social benefits both for the participants in this form of association and to the outside world.
Among the benefits of establishing a Renewable Energy Community we can mention:
- Self-generation of energy from renewable sources;
- A lowering of energy costs for citizens and businesses;
- The emergence of new opportunities, including economic opportunities, for the area in which the energy community is established.
The CER Decree, published on January 23, 2024, provides state incentives of a financial nature in favor of CASERs (including CERs) and shares self-generated energy.
A challenge aimed at promoting concretely sustainable practices, capable of spreading innovative and inclusive energy distribution models, and achieving national and European decarbonization goals.
A challenge aimed at promoting concretely sustainable practices, capable of spreading innovative and inclusive energy distribution models, and achieving national and European decarbonization goals.
CER Decree 2024: the state incentives
Incentives under the ERC Decree are intended for CACERs (Self-Consumption Configurations for Renewable Energy Sharing) defined in paras.
e),
f) and
(g) of Art.
2 of the Decree and are divided into two measures:
- Feed-in tariff incentive: a measure aimed at configurations throughout the country and consists of an incentive tariff on shared energy, with a maximum subsidizable power limit of 5 GW until December 31, 2027;
- Non-repayable grant (or PNRR grant): a financial support measure aimed at Renewable Energy Communities in municipalities under 5,000 inhabitants.
This is a non-repayable grant that can cover up to 40 percent of the investment incurred in the creation of the Community, with a limit of at least 2 GW of eligible power until June 30, 2026.
Both measures are cumulative; moreover, among the requirements mentioned in the ERC Decree necessary to access incentives is the “DNSH clause,” meaning that it must be demonstrated that the plants meet – by performance and environmental requirements – the Do Not Significant Harm (DNSH) principle.
Renewable Energy Community Incentives: how to access them?
To access the incentives, it is necessary to submit an application to GSE (Gestore dei Servizi Energetici) within 120 days after the installed systems become operational.
The application must be accompanied by the necessary documentation for the verification of compliance with the requirements, taking into account the operating rules disseminated by the relevant bodies.
Interested parties can also ask the GSE – on a voluntary basis – for a preliminary verification of project eligibility.
Interested parties can also ask the GSE – on a voluntary basis – for a preliminary verification of project eligibility.
In addition, The MASE suggests following specific steps, such as:
- Identify an area where to implement the facility and users to associate with connected to the same primary cabin;
- Establish the ERC with a Articles of Incorporation or Memorandum of Association, which has environmental, economic and social benefits as its predominant corporate purpose;
- Check in advance with the Energy Services Manager (GSE) whether the project is eligible for the incentive;
- Obtain permission to install and connect the system to the grid, to make it operational;
- Finally, apply for the incentive from the GSE.
The ERC Decree seeks to actively involve the community in the management and use of renewable energy.
This fosters a greater sense of environmental responsibility and enables people to actively participate in the energy transition.
This fosters a greater sense of environmental responsibility and enables people to actively participate in the energy transition.
Feed-in tariff: the premium recognized on the share of shared energy
The feed-in tariff incentive is provided for 20 years, characterized by a fixed and a variable portion, and includes surcharges for plants located in the North Central and North.
The amount of the recognized premium depends on the power output of the plant and on calculations that consider the hourly zonal price of electricity (Annex 1 of the CER Decree).
PNRR grant: what are the eligible expenses?
The ERC Decree sets limits on the types of eligible expenses against which the grant can be received.
In addition, there are investment ceilings.
Specifically, eligible expenses relate to:
In addition, there are investment ceilings.
Specifically, eligible expenses relate to:
- Implementation of renewable energy systems;
- Supply and installation of storage systems;
- Purchase and installation of machinery, plant and equipment hardware and software;
- Construction work strictly necessary for the implementation of the intervention;
- Connection to the national power grid;
- Prefeasibility studies and necessary expenses for preliminary activities;
- Design, geological and geotechnical investigations;
- Construction management and safety;
- Technical and/or technical-administrative testing, consulting and/or technical-administrative support essential to project implementation.
The last four items of expenses above are eligible for funding to the extent of not more than 10% of the amount eligible for funding.
The maximum investment cost limits are:
▪ €1,500/kW, for systems up to 20 kW;
▪ €1,200/kW, for systems of more than 20 kW and up to 200 kW;
▪ €1,100/kW for power above 200 kW and up to 600 kW;
▪ €1,050/kW, for systems with a capacity of more than 600 kW and up to 1,000 kW.
The importance of Renewable Energy Communities for a sustainable future
Renewable energy communities promote the decentralization of energy production. Allowing communities to generate their own energy reduces dependence on traditional power plants and promotes a more equitable and resilient distribution of energy.
Through the establishment of Communities, sustainability is promoted by involving people and the local area in an active and conscious way.
With the use of renewable energy sources, it contributes to the reduction of greenhouse gas emissions, which are a major cause of climate change; this is how energy communities play a significant role in lowering the overall environmental impact.
Contact our consultants to find out more about Renewable Energy Communities and facilities under the CER Decree.
