Mapping Italy’s Renewable Energy Communities: Main Reports and Data Sources

di Damiano Cesa Bianchi - Università di Firenze


Introduction: proximity and open participation

Renewable Energy Communities in Italy, as defined by the European Directive RED II (2018/2001) and implemented nationally through DL 162/2019 and Legislative Decree 199/2021, are entities characterized by open and voluntary participation. The principle of open participation highlights the importance of raising awareness about their existence and geographical location, as this is essential for citizens to have the opportunity to join such communities.

These communities are intended as forms of self-organization by local citizens to produce and consume energy—ideally from renewable sources. They potentially and ideally represent a shift towards a new energy model, where citizens are no longer passive consumers but active participants who produce, manage, and consume their own energy. In doing so, they also contribute to the broader objective of the green transition.

The role of self-production and self-consumption is closely linked to the concept of proximity-based energy consumption. Under the Italian framework for Renewable Energy Communities (RECs), energy is considered self-consumed only if it is produced and consumed within the same geographical area. This area was first defined by Law Decree 162/2019 as that served by a secondary voltage substation and later expanded by Legislative Decree 199/2021 to include broader zones covered by the same primary voltage substation.

The proximity requirement for energy self-consumption implies the potential emergence of numerous small-scale RECs, in which—following the principle of open participation—citizens have the right to join. However, beyond the issue of economic sustainability, the success of these communities also depends on the level of public awareness regarding their existence and the right of individuals to participate.

Understanding RECs diffusion: Key Reports

Since RECs were only introduced in European legislation in 2019 and subsequently transposed into national laws, their diffusion is still in progress, with ongoing developments in recent years. However, to gain a better understanding of the phenomenon, we can refer to reports that analyzed their spread and examined how mapping and tracking efforts have evolved over time.

One of the leading organizations reporting on Renewable Energy Communities (RECs) in Italy is Legambiente, a prominent Italian environmental association known for its work in sustainability, ecological transition, and environmental advocacy. Their annual reports (Legambiente 2020, 2021, 2022, 2024) are a key resource for both identifying the most significant REC experiences in the country and observing how attention to this topic has evolved over time.

In the 2020 report, Legambiente urged the government to approve the delegated Ministerial decree. The following year, in 2021, the association was already monitoring 30 RECs. The report also identified the first two RECs to be actually realized in Italy: Magliano d’Alpi and Napoli Est. The 2022 edition introduced new examples such as CER Nuove Energie Alpine, the first community to overcome the legal constraint of being connected to a primary substation; the project in Ventotene, designed to meet the island’s needs and leverage its unique potential; and the Ripalimosani initiative in Molise, which represents a business-led energy community model. Finally, the 2024 report focused on the evolution of the legal framework for RECs in Italy and, based on data from GSE, reported that as of the end of 2022, there were 67 operational configurations already in place nationwide.

Another key reference is the 2021 Vademecum published by ENEA (the Italian National Agency for New Technologies, Energy and Sustainable Economic Development), which focuses on both national and international REC experiences. Notably, it highlights the Melpignano project in southern Italy—an early example of a community-based energy initiative launched back in 2011, well before the formal legal recognition of RECs in Italian legislation.

Further valuable insights into the status of Renewable Energy Communities (RECs) in Italy are provided by the “Orange Books” authored by RSE (Ricerca sul Sistema Energetico), the research center of GSE—Italy’s state-owned energy services manager. In its 2022 edition, RSE mapped approximately 20 REC initiatives across the country, offering a more formal overview of their development.

Useful Maps to Explore and Engage with RECs in Italy

A more visual approach to understanding the diffusion of Renewable Energy Communities (RECs) in Italy involves exploring the interactive maps developed in recent years. One of the earliest and most relevant examples is the map published by GSE (Gestore dei Servizi Energetici) in September 2023, aimed at helping citizens understand the geographical eligibility for participating in a REC. The map outlines the boundaries of primary electrical substations, which define the technical perimeter within which participants must be located to form or join a REC.

However, this map only displayed the areas covered by the substations and did not indicate whether any RECs had actually been established within those areas. As a result, while it was useful for understanding technical eligibility, it did not help potential participants identify existing communities they could join, thus limiting its effectiveness as a tool for promoting open and informed participation.

A noteworthy private initiative for mapping Renewable Energy Communities in Italy is RiCER, an open-source database launched in May 2024. It is the first Italian platform entirely dedicated to Renewable Energy Communities, with the aim of mapping, connecting, and enhancing the various CER models emerging across the national territory. While this project represented an important step forward in terms of visibility and knowledge-sharing, it was not an official registry. Instead, it relied on data voluntarily provided by researchers and individuals directly involved in the initiatives. As such, RiCER proved useful as a privately managed and well-organized tool, but it did not fully replace the comprehensive and authoritative information that an official list could have provided.

In October 2024, as part of this research project, we conducted a survey of Renewable Energy Communities (RECs) in Italy, drawing on feedback from regional governments, lists of public grants, and gray literature. Our analysis identified 98 RECs already established, along with 1,549 REC initiatives at various stages of development across the country, for which we found at least a formal notice of intent to launch. This report underscores the crucial role of regional governments in regulating and promoting RECs. At the same time, municipalities—particularly through the involvement of mayors in small towns—often play a key role in initiating and supporting the creation of local energy communities.

In November 2024, however, GSE updated its interactive map, incorporating for the first time official data on self-consumption configurations and Renewable Energy Communities (RECs). This update marked a significant step forward, as it fulfilled the role of an official registry, providing greater transparency regarding active projects across the country and allowing citizens and stakeholders to identify existing initiatives more easily.

Another important initiative was published in March 2025 by RSE (Ricerca sul Sistema Energetico), the research center affiliated with GSE. RSE released a national map of RECs based on information collected through a combination of institutional sources (including websites of Regions, Provinces, Municipalities, Unions of Municipalities, Mountain Communities, and Universities) and other public sources (such as REC promoters’ websites and local newspapers). While RSE clearly stated that it does not take responsibility for any inaccuracies or omissions, the project still represents a key reference for understanding the diffusion of RECs in Italy, especially given that it was developed by a major institutional player in the national energy research landscape.

Conclusion

The diffusion of Renewable Energy Communities (RECs) in Italy has attracted growing attention since the early stages of national legislation on the matter. Starting in 2020, both Legambiente and various public institutions began monitoring and mapping these initiatives, highlighting key examples across the country. While these reports have been valuable in offering an overall understanding of the phenomenon, they have not fully met the informational needs of citizens, particularly in helping them identify which RECs they could join within their local areas.

A major step forward came only recently, in November 2024, with the official publication of the GSE’s interactive map, which now serves as the most useful tool for identifying active RECs throughout the country. Given the highly local and fragmented nature of many of these communities, an accurate and reliable mapping process can only be ensured through official data. Looking ahead, further developments may focus not just on mapping, but on analysing the most innovative REC business models, their governance structures, and the criteria that citizens might consider when deciding whether to join an existing REC or establish a new one. This evolution will be key to supporting informed participation and scaling the impact of energy communities across Italy.

The challenge of economic sustainability for Renewable Energy Communities (RECs)

di Damiano Cesa Bianchi - Università di Firenze


Introduction: RECs and financial challenges

In May 2019, the European Union finalized the Clean Energy for All Europeans Legislative Package (CEP), designed to meet the EU’s 2030 climate and energy goals. Key components of this package include the recast Directive 2018/2001 (Renewable Energy Directive II, or REDII) and the recast Directive 2019/944 (Internal Electricity Market Directive, or IEMD). These directives introduced the concepts of 'renewable energy communities' (RECs) and 'citizen energy communities' (CECs). Together with the recast Regulation 2019/943 (Internal Electricity Market Regulation, or IEMR), they provide a robust legal framework supporting community ownership of energy projects.

Despite this legislative foundation, the expansion of energy communities across Europe faces significant challenges (Energy Communities Repository, 2024). These include the lack of a consistent legal definition of energy communities, which creates legal uncertainty, low public awareness, and limited access to financing. While EU policies support RECs for energy and social sustainability, their economic viability hinges on the development of sustainable business models (ComeRes, 2022).

Funding for energy communities might come from various sources, including equity, debt, crowdfunding, and grants (SCCALE 203050 Financing Guide, 2023; Compile Project Financing; RESCOOP 20-20-20). The optimal mix of funding varies by project stage (ACCE, 2023). Early-stage projects (3–12 months) rely heavily on grants and voluntary contributions, whereas later phases, including development (1–6 years) and construction (2–15 months), typically depend on equity, loans, and investments. Once operational, energy communities can sustain themselves through revenue generated from energy sales.

One of the main hurdles for Energy Communities (ECs) is access to private financing. Due to their small scale, perceived risks, and democratic governance, ECs are often less appealing to traditional financial institutions. Compounding the issue is the fact that much of the funding is raised after the project reaches financial closure, making the process even more difficult. While public funding aligns with EU energy transition goals, accessing these funds can be challenging due to the expertise required, along with fluctuating national and regional policies (Friend of the Earth Europe, 2022).

Municipalities can play a crucial role in the success of CECs by advocating for favorable regulations, raising awareness, purchasing energy from community projects, and providing financial support. They can also offer resources, technical assistance, and legal support platforms, fostering collaboration among local stakeholders. By directly joining CECs, municipalities contribute to their long-term sustainability (Friend of the Earth Europe, 2020).

RECs and the academic business literature

The development of renewable energy communities (RECs) is marked by tensions and challenges, as highlighted by Gomez et al. (2022), including issues of participation and inclusivity. Shareholding structures tend to favor individuals with greater financial resources, raising concerns about social equity, while the nature of remuneration blurs the line between acting as a citizen or as an investor. Financial contributions can also influence political dynamics within the community. Decisions regarding the use of public or private spaces for energy projects, local economic engagement, and the selection of financial partners—whether traditional or cooperative models—further complicate REC development. These factors underscore the evolving and complex nature of RECs.

Cielo et al. (2021) propose three business models for RECs based on the distribution of capital costs and revenue sharing between the REC and developers. In one model, the REC covers all capital costs and retains all revenue. In another, costs and revenues are shared equally between the REC and developer. In the third model, the developer covers all costs and grants the REC 30% of the revenue.

Other studies point to innovations in energy systems, including the application of blockchain for transparency and efficiency in microgrids (Svetec et al., 2019; Mello et al., 2020), collective tariff savings for RECs with private distribution networks (Rocha et al., 2020), and the growing role of prosumerism, local energy markets, and electric mobility cooperatives (Moreno et al., 2022). Pilot projects, such as Capwatt’s, aim to optimize dynamic energy-sharing mechanisms to improve regulatory frameworks and operational efficiency (Tavares et al., 2023).

Success factors for RECs include strong user ownership, technological readiness, and smart grid integration to enhance transparency. Case studies from Germany and the Global South demonstrate that self-steering governance, open decision-making, and local leadership are critical to mobilizing technological and financial resources (Kirchhoff et al., 2016; Young and Brans, 2017). Further advancements can be made by investing in battery storage and diversifying renewable energy sources (Ceglia et al., 2015).

RECs and the Italian “grey literature”

In Italy, the GSE (Gestore dei Servizi Energetici), a governmental agency, is a key player in promoting Renewable Energy Communities (CERs). The GSE offers financial incentives through two main mechanisms:

•          Incentive Tariff for Self-Consumed Energy: CER members receive incentives for renewable energy produced and virtually self-consumed. This incentive, ranging from €60/MWh to €120/MWh, applies for 20 years from the start of each renewable plant's operation, with additional bonuses for photovoltaic systems based on geographic location.

•          Compensation for Self-Consumed Energy: ARERA (Italian Regulatory Authority for Energy, Networks, and the Environment) provides compensation of approximately €8/MWh for virtually self-consumed energy.

Any surplus energy not self-consumed can be sold under market conditions, with producers having the option to use GSE’s "ritiro dedicato" (dedicated withdrawal) service. Additionally, CERs in municipalities with fewer than 5,000 residents can receive capital contributions covering up to 40% of investment costs through Italy’s National Recovery and Resilience Plan (PNRR).

In collaboration with ANCI (ANCI, 2024), the GSE emphasizes the vital role municipalities play in supporting Renewable Energy Communities (CERs). By leveraging urban planning tools, raising awareness, and offering public spaces, municipalities create favorable conditions for self-consumption and energy projects. They also promote citizen involvement, ensuring inclusive and transparent processes, and select technical partners through public procurement. These actions are key to advancing energy communities and contributing to Italy’s energy transition.

The GSE also provides an Interactive Map of Primary Substations, which helps identify eligible areas for CER projects, as CER members must be connected to the same primary substation.

RSE (Ricerca sul Sistema Energetico) has published two key studies on CERs (RSE 2021; 2023), emphasizing their role in enhancing public acceptance of small-scale renewable projects. Their 2023 report outlines three potential business models for CERs: prosumer, ESCO (Energy Service Company), and consumer, depending on who provides the initial project funding.

ENEA (Italian National Agency for New Technologies, Energy, and Sustainable Economic Development) supports CER creation through tools like RECON, DHOMUS, CruISE, and SIMUL, which aid in energy monitoring, management, and simulation. Additionally, ENEA (ENEA, 2021) has published a guide summarizing the key aspects of CERs.

Legambiente, a non-profit organization in Italy, has also contributed to the development of RECs. The organization has published two important reports, in 2022 and 2024, that provide an initial mapping and analysis of emerging REC projects in Italy. These contributions offer valuable insights into the national landscape of renewable energy communities, highlighting their growth and the challenges they face.

Conclusion

RECs are crucial to Europe’s energy transition but face financial and operational challenges that require sustainable business models for long-term viability. Although RECs are not primarily profit-driven, ensuring economic sustainability is essential for their future. While grants and subsidies significantly enhance the appeal of RECs, the development of robust business models is key to their long-term success. Since their formal recognition in 2019, RECs have evolved rapidly, with continuous advancements in funding, governance, and technological innovation shaping their trajectory. Key areas for further research to address economic barriers include the exploration and definition of sustainable business models, particularly in relation to economic aspects. Further investigation is needed into management control mechanisms that can promote transparency and trust among members. Additionally, research should focus on how RECs can be positioned as distinct non-profit entities with unique characteristics.