Advancing Renewable Energy in Italy
The European Commission has granted approval for a €5.7 billion initiative to promote energy communities in Italy. This scheme aims to support the growth of small-scale existing renewable energy projects and new ventures limited to 1 MW.
Two Funding Streams for Sustainable Growth
1. Tariff-Based Support (€3.5 Billion): This stream involves a 20-year tariff on electricity consumed by self-consumers and renewable energy communities. Funding will be secured through a levy on all consumers’ electricity bills.
2. Investment Grant (€2.2 Billion): This stream covers 40% of a project’s total costs through an investment grant. Projects eligible for this funding should be located in 5,000-person municipalities and operational before June 30, 2026.
European Recovery and Resilience Facility (RRF)
The second funding stream is supported by the RRF, a €723.8 billion instrument designed to strengthen the EU after the Covid-19 pandemic. It follows a “positive assessment” of Italy’s Recovery and Resilience Plan, endorsing an €11.2 billion investment in various sectors, including renewable energy technologies.
Italy’s Current Energy Community Landscape
Italy currently boasts 104 operational energy communities, with an anticipated increase to 191 as per the Polytechnic University of Milan. Municipalities lead 44% of these projects, while private companies drive the rest. Over 70% of these communities use systems with less than 200 kW total power, and all are photovoltaic energy-based.
Gestore dei Servizi Energetici (GSE) Interactive Map
The Italian energy agency, GSE, has released an interactive map of primary substations in Italy. This tool assists in geolocalizing connection points for energy communities, aligning with Italian legislation on self-consumption.
This approval aligns with Italy’s commitment to fostering sustainable energy practices and further solidifies its position as a leader in renewable energy within the European Union.
Source: pv-magazine
