For decades, energy has been perceived by all of us as something produced in a distant place and then delivered to our homes, businesses and streets through an extensive distribution network. A service, then, certainly. But not a vehicle for social innovation, for combating inequalities and, consequently, to some degree, for democracy. A possible paradigm shift — which could be described as a concrete utopia, given that we are now talking about a fully established reality in our country — is represented in this sense by renewable energy communities (REC).

A shift in energy paradigm, but a cultural one too

In concrete terms, a REC consists of an energy production site — typically powered by wind, solar photovoltaic or hydroelectric sources — whose output is then shared by a number of users directly on site. It may involve a single installation or more than one within the same community. This is precisely how the traditional model of large-scale production plants and lengthy distribution networks is superseded. A REC, moreover, can not only produce and consume energy, but also store and sell the electricity generated. And the beneficiaries are not only private citizens wishing to power their homes with energy that is environmentally sustainable, reliable and stably priced: associations, small and medium-sized enterprises, cooperatives, public administrations and religious institutions may also join a REC.

All of this on a single condition, which represents a further paradigm shift — this time not merely technical but cultural: the renewable energy community must not be profit-oriented. Unlike what happens with large-scale plants, the goal is to generate social, environmental and economic benefits for its members. Contributing to the development of the local area while caring for the surrounding environment and without fuelling climate change.

Energy communities: the "Red II" directive and the removal of certain restrictions

The concept of renewable energy communities was introduced by the "Red II" directive on the promotion of energy from renewable sources, adopted in July 2021 and transposed into Italian law in December of the same year. The legislation aimed to support energy communities also as a means of countering the sharp rise in energy prices that had occurred in the preceding months, as confirmed by data published by Istat.

The directive, in particular, removed certain restrictions on the development of renewable energy communities, starting with the power capacity limit for installations, which was raised from 200 kilowatts to 1 megawatt. The "secondary substation" limit was also removed — a constraint that had effectively confined the creation of RECs to physically adjacent buildings: it is now possible to operate on the basis of the "primary substation" instead (whose distribution can be consulted via an interactive map), meaning that nearby homes (within the same neighbourhood) that are not directly adjoining can contribute to forming the same energy community. Finally, it was decided that existing renewable installations — and not only newly built ones — may also be included.

How many renewable energy communities exist in Italy today

The many virtuous characteristics of renewable energy communities have prompted public authorities to provide financial incentives for their establishment. It is Gse (Gestore dei servizi energetici) that handles the distribution of funding, based on the output of the installations. Once the funds are received, the community can decide how to use them — again subject to one rule: that the use always benefits the local area and those who live there.

In just a few years, RECs have achieved remarkable success in Italy. To date, according to data published by Gse and updated to 31 May 2025, there are 421 energy communities across the country. The total installed capacity stands at 43,000 kW (43 MW).

GSE @GSErinnovabili

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"#CER e CACER possono crescere in 20 anni per tipologia e numero di impianti e aderenti. Il GSE attraverso un algoritmo, monitora l'energia prodotta e consumata, che calcola mensilmente l'anticipo dell'incentivo e il conguaglio di fine anno" @arrigoni_paolo #GSE

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The examples are therefore countless. Such as that of the cooperativa Castello in Comacchio, which manages over 700 apartments spread across 24 condominium buildings in the province of Ferrara. Photovoltaic installations have been fitted on the rooftops and the Castello Green House energy community has been established, enabling the energy needs of all resident families to be met.

From Alto Adige to Sardinia, countless virtuous examples

In Alto Adige, in Prato allo Stelvio, the cooperative E-Werk Prad represents a historic example — ahead of its time — of an energy community. The company began distributing electricity in the village in the province of Bolzano more than twenty years ago and today operates four hydroelectric plants and four cogeneration units. Supplying not only electricity but also hot water from renewable sources, both to households and to local businesses, in summer and winter alike. The energy community also makes it possible to guarantee significant savings (up to 40 per cent) for users in terms of their energy bills, compared to the national average.

Similarly, among centuries-old olive trees and Mediterranean scrubland in Ussaramanna (500 inhabitants), in southern Sardinia, one of Italy's first RECs was born. In 2021, the municipal administration placed its bet on the energy community as a tool to combat energy poverty, building two photovoltaic systems: an 11 kW installation on the roof of the town hall, and a 60 kW installation on the roof of the Social Aggregation Centre, with 61 members.

The energy community model is, in short, a virtuous model from every point of view, essentially free of drawbacks. Its widespread development, however, requires investment, well-structured regulations, and the political will to definitively move beyond the era of fossil fuels.