The Rise of Municipality-Driven Renewable Energy Communities in Emilia-Romagna

Emilia-Romagna is setting a precedent for sustainable energy by driving the creation of Renewable Energy Communities (RECs). These communities do more than just promoting and facilitating the generation of clean energy—they combat energy poverty and foster economic and social inclusion. To accelerate their development, the region launched a REC support scheme in late 2022.

Municipalities Leading the Energy Transition

In its first phase, Modena’s Energy and Sustainable Development Agency (AESS) guided 26 applications, primarily from municipalities, all of which passed the initial evaluation. The second phase focused on techno-economic feasibility studies and selecting appropriate legal structures. AESS provided expert consultancy and prepared accreditation documentation, helping the RECs navigate regulatory requirements.

Overcoming Regulatory Challenges

However, the journey was not without obstacles. Evolving national regulations, including the 2024 implementation of the new “Public Contracts Code” and updates to energy community legislation, introduced unexpected complexities. Some REC projects stalled due to legal uncertainties, change in governance after local elections and concerns about public housing companies’ eligibility as active members. Others faced delays as national authorities issued clarifications affecting the participation of public enterprises.

Impact and Future Outlook

Despite these challenges, most initiatives successfully evolved into fully operational RECs, now installing their first renewable energy systems. Community engagement has been central to their success. Throughout 2024, AESS led LAB.T.E.C, an awareness-raising programme that increased public participation, attracting citizens, SMEs, and local businesses to the initiative.

15 of the original 26 initiatives have now been formally established as Renewable Energy Communities, while eight are still in progress and three have been temporarily suspended. These RECs have taken various legal forms, including accredited associations, simple associations, cooperatives, and a non-profit foundation. In total, 84 founding members have been engaged in these communities. Feasibility studies assessed 9.11 megawatts of photovoltaic systems, which are expected to generate 11.3 gigawatt-hours of renewable energy annually. This output is estimated to prevent 2,960 tons of CO₂ emissions each year.

Technical assessments project an average self-consumption rate of 23 percent and an average shared energy rate of 49 percent. Communities will potentially benefit from 409,763 € of financial support under Italy’s national framework for Renewable Energy Communities incentive scheme, allowing for social and environmentally scoped local projects to be developed, as well as indirectly alleviating the cost of energy bills for many citizens.

By empowering municipalities and fostering citizen participation, Emilia-Romagna’s REC initiative is not only shaping a greener energy future but also serving as a replicable model for other European regions. These communities are a testament to the power of local action in advancing the energy transition while ensuring social and economic benefits for all.

This best practice is extracted from our publication ‘Sustainable Regions in Action‘. Discover more best practices here!