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Practical ecology · Energy saving

Energy community – What it is

In Italy, more than 100 energy communities have already been set up. In Europe there are already more than 3,500

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An energy community is a group of parties who organise themselves to produce and share, at local level, energy generated from renewable sources. In this way they choose to power their own supplies with clean energy, self-produced and shared.
The benefits are many: the environmental impact improves for individuals and communities alike, energy bills are reduced, even significantly, the development of sustainable energy networks is supported, and it is possible to benefit from the incentives for shared energy.

An energy community powers its supplies by drawing electricity both from the public grid and from the renewable generation plant shared by its members. With the latter, the energy produced is consumed instantly by the members of the community; surplus energy, that is, energy produced in excess, can be stored or sold to the GSE (the national Energy Services Operator).

From consumer to prosumer

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This is the fundamental change of role that the energy community offers its members. They are no longer simply consumers, but first and foremost producers of the energy they need.
The benefits
are numerous. Let us look at the main ones.

Environmental improvement: by using renewable energy generation plants, fossil fuels are eliminated, with installations that have zero CO2 emissions and are free of other polluting emissions.

Economic return: by contributing to the expansion of sustainable solutions, it is possible to access the numerous state incentives provided for by the relevant laws. In practical terms, this means a reduction in the bill.

Cohesion and social development: you help to create and strengthen a sustainable ecosystem, which will bring multiple benefits to individuals, to the energy community and to the area in general, improving the shared quality of life.

Access to incentives and cumulability: energy communities have access to the service for the valorisation and incentivisation of shared electricity. Premium tariffs and contributions for end customers, also compatible with other incentives such as the Superbonus.

How to become a member of an energy community

An energy community may be formed by: individuals, small and medium-sized enterprises (SMEs), territorial bodies, local authorities, municipal administrations, research and training bodies, religious bodies, third-sector organisations and associations.

Each one is a member or shareholder and, at the same time, an end customer holding a supply, an energy bill and a POD code.

For private businesses, participation in the energy community must not be their main commercial and/or industrial activity.

All members of the renewable energy community must be connected to connection points located on electricity networks served by the same primary substation.

Energy communities: which plants

The energy community powers its members’ supplies through one or more renewable energy generation plants, installed close to the supplies themselves, which depend on its/their operation.

The plants may be new or already existing, upgraded or adapted.
Ownership may lie with one or more members of the energy community or even with third parties. An essential condition is that the energy community has full availability of use and control of them.

Renewable plants built before 15 December 2021 may be included, provided they do not exceed 30% of the total capacity of the energy community.

Hybrid plants are excluded.

To qualify for incentives, plants must have a capacity equal to or below 1 MW and be connected to the same primary substation to which the members of the energy community are connected. All plants must be registered on Terna’s GAUDÌ system and therefore identified by the CENSIMP code.

Energy communities: the procedure for setting them up

Step 1: establish the legal union between the partners. Citizens, businesses, local authorities and so on choose a non-profit legal form (e.g. association, cooperative, partnership, consortium) and classify their energy community as an autonomous legal entity.

Step 2: regulate the relationships between the partners of the energy community and the way in which revenues from shared energy are distributed. This is done through a private-law contract.

Step 3: once the legal form has been chosen and the private-law contract defined, the Articles of Association or deed of incorporation of the energy community must be drawn up. These must specify the purpose of the energy community and the delegated party (or representative) for dealings with the GSE.

Step 4: once the renewable plants have been installed and registered on the GAUDÌ system, you proceed to draw up the application for access to the service/mechanism for the valorisation and incentivisation of shared electricity.

Energy communities: the remuneration

Access to incentives for shared energy is based on a tariff system that rewards energy consumed instantly on site, with periodic payments made by the GSE for the environmental and social benefits generated by the energy community:

  • MiTE premium tariff fixed for 20 years at €110/MW on the energy shared within the community;
  • Fixed refund for 20 years of approximately €7-9/MW on shared energy, to recognise the benefits provided to the grid;
  • Payment for the sale of energy fed into the grid, varying according to the zonal price (PUN).

The payments are not subject to taxation. Each member of the energy community continues to pay their bill to their own electricity supplier, receiving from the energy community, at regular intervals, a contribution for sharing the benefits generated.

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