Energy community

So, what is the ecological transition? And how do Energy Communities fit into this context? The questions are many, as are the doubts, so let’s try to solve some of them.   ECOLOGICAL AND ENERGY TRANSITION: THE TWO NEW PARADIGMS This is what the word itself states: TRANSITION, a shift from a phase of stagnation to a new and different balance, from a position of disadvantage to one of favor and convenience. Well, the ecological transition is just that, the transition from a situation not very green oriented, not very concerned with consumption and waste, to one of concern and care for these aspects that impact our lifestyle and the environment in which we live, without trauma or inconvenience.   Energy Communities and Ecological Transition Nowadays, under these conditions, it is unthinkable to separate the ecological transition from the energy one, especially considering how much the energy production itself derives for its great majority from non-renewable energy sources and/or located abroad. This mechanism on one hand leads to waste economic resources for the purchase and sale of “foreign” energy and on the other hand reinforces the great opportunity to take advantage of a source that instead we have available for free and in abundance: the sun. Not by chance, due to the high solar radiation of its territory and the presence of a highly technological industrial fabric, the Italian photovoltaic industry is highly developed and could be the leader of the Italian energy transition. Also thanks to the advent of new forces of green circular economy, the energy communities interface well and are complementary to this existing situation. In fact, Italy now is passing through the optimization of the energy produced and consumed: it already started with the transition of power generation from large concentrated to small distributed and it is based on the production from photovoltaic systems. Here, the REAL TURNING POINT of the ecological transition would fully realize with the combination of energy community-photovoltaic systems and distributed storage. This is a virtuous example of circular economy where waste is reused. In this specific case, a continuous value is given to the energy produced, recycled, and shared within the community: this mechanism allows everyone to avoid waste and excess energy, which are instead redistributed.   THE STUDY OF ELEMENS FOR LEGAMBIENTE According to the study drafted for Legambiente by Elemens “The contribution of Energy Communities to Decarbonisation in Italy: current and future models, estimates of potential and benefit pills“, in a scenario of full implementation of the RED II directive, energy communities would bring a great benefit to the Italian economy because they would create: 13,4 billion € of investments in new renewable capacity 2,2 billion € of positive economic impact on Italian companies active along the supply chain of renewables arising from plant construction, O&M and management of energy communities billion € net of IRES/IRAP tax deductions for companies active in plant construction and maintenance 000 direct employees on photovoltaic plants, not counting those involved in energy communities (efficiency and electric vehicles) 47,1 tons of CO2 emissions avoided by 2030   THE 4 GUIDES FOR THE ITALIAN RESTART Talking about ecological transition, it is necessary to mention the National Plan for Recovery and Resilience (PNRR), perhaps better known by the tag Next Generation Fund: this represents the basis for the investment plan to achieve climate neutrality by 2030 and promote economic recovery post-COVID. The Italian investment plan focuses on ecological transition as an inseparable asset and an inevitable prospect: it reserves to the transition € 74.3 billion of interventions, i.e., 37.9% of the Italian PNRR, which will be divided according to four main guidelines: Green enterprise and circular economy: €6,3 billion Energy transition and sustainable local mobility: €18,5 billion Energy efficiency and requalification of buildings: €40,1 billion Protection and enhancement of the territory and water resources: 9,4 billion €.   Energy communities will increasingly become an important link between the four major guidelines that will form the basis for the restart of Italy. They will allow on one hand the requalification of buildings and the protection and enhancement of the territory and, on the other hand, will give a fundamental help for sustainable local mobility. In short, they will be fundamental pillars of the energy transition.

Since the end of the Feed-in Tariff Scheme (FITS) last year, the community energy sector in the United Kingdom has been struggling. At the same time, the lack of support from government incentives also creates an opportunity for new strategies and business models to thrive. Let’s see how community energy works and the state of the sector, according to the last official data. Solar photovoltaic power generation in the United Kingdom According to the data published by statista last February, solar energy generation in the United Kingdom increased rapidly, especially between 2011 and 2018, thanks to a mix of technological development and launch of the government’s Feed-In Tariff scheme (FITs) in 2010. The last official data on electricity and heat production from photovoltaic generation recorded 12,857 GW hours in 2018 with a cumulative installed capacity of 13,098 MW. This growth is also due to the contribution of the Community Energy sector, which evolved alongside solar panel distribution. Its exact size is unknown but around 300 community organisations have been counted, managing different kinds of community-owned renewable initiatives, not all solar. The first community-owned renewable project connected to the grid was a wind farm in Cornwall in 1991. Definition of Community Energy According to UKERC research, Community Energy includes any energy project completely or partially controlled or owned by a group of people identifiable as a community, for instance co-operatives. It also includes any project with two or more of the following features: The project is hosted on a site owned or managed by the community group. The organisation is a community benefit society, where members share control democratically and profits are distributed in the community. Community members have an active role in the project, for example producing energy with a domestic solar photovoltaic panel and sharing it with other members through specific local supply arrangements. The UK Government underlines that the keyword of Community Energy is “local”: local engagement, leadership, control, and outcomes. Local stakeholders own or control the majority of the sustainable energy projects, voting remains democratic and social and economic benefits are shared locally. Most of the energy community projects are focused mainly on: energy consumption and waste reduction management, generation and purchase The benefits of these projects are both economic and social: community energy enhances local acceptance and awareness of renewable energy sources and emphasizes the importance of decreasing fossil-based energy consumption. At the same time, local communities have the chance to access energy at a lower cost, to maximise energy efficiency and to create local jobs. Regardless of whether you live in a flat in the city centre with a shared rooftop or a terraced house in the countryside, you can monitor and analyse your energy consumption and the performance of your PV and ESS (Energy Storage System), balancing the energy you share with other community members. In any of these scenarios, the benefits of sharing energy can be further improved by installing SNOCU units and joining the Regalgrid platform. Community Energy in England, Wales & Northern Ireland The State of the Sector 2019 report by Community Energy England collects data for England, Wales and Northern Ireland and counts 275 Community Energy Organisations all across these regions. 136 of them are Community Benefit Societies, 42 are Co-operatives and 22 are Charity Organisations. In 2018, the sector was still dominated by electricity generation, with a total generation capacity of 168 MW, composed of: 4 MW wind power 3 MW solar PV 2 MW hydroelectric These projects require a decentralised system connected to the distribution grid. Organisations often reinvest incomes in low-carbon initiatives. Most of the projects funded are actually related to energy efficiency: energy switching, smart-meter installation, energy-efficient lighting and insulation. Other communities deal with energy storage, heat generation (1.96 MW of generation capacity) and low-carbon transport. Community Energy in London London is a city that is particularly active in community energy. The specific report shares some available data for 2018. The Non-Profit Organisation that has gathered the data mentions 35 projects under way, an installed solar capacity of 475 kW and crowdfunded investment reaching over £600,000. For instance, Repowering is developing a community-owned project, working with local people. They are planning to install solar PV panels allegedly with a capacity of 50 kW on rooftops in the Middlesex Street Estate in the Portsoken ward, and to fund this £48,000 project by selling shares to community members and thanks to donations from corporations which want to increase sustainable actions. Community Energy in Scotland In Scotland, the latest report was published in January 2020, presenting data relative to June 2019. At that time 43 organisations were active and 58 more were in other stages of development. The operational capacity of active communities was 82 MW. Most of the energy was generated by wind farms (44% of operational capacity) and biomass systems (26%). Solar photovoltaic represents only 8% of the total capacity, but it is the most common choice for domestic systems (8,650 installations).

I would like to consider two very common concepts in our modern lives that I find particularly relevant to the unique situation we find ourselves in: urgency and promptness. The concept of urgency is familiar to everyone and I think it applies perfectly to the current circumstances: “a condition of immediate necessity”, and one that requires attention, right here, right now. It describes times of crisis, such as an accident or a natural disaster, in hospital or administrative contexts, but also feeds through into all aspects of our daily lives, on a smaller scale and a more domestic level. This day-to-day usage of the term has taken away the sense of foreboding that it should perhaps convey. The global climate and energy situation is urgent, just like the efforts required to try and resolve it. These are not empty words. Energy communities are an effective response to this immediate need… and are therefore urgent. The second word I mentioned was: promptness, understood as action taken at the right moment. That moment is now, and we need to act swiftly… urgently!   Green Deal: a prompt response? The time has come to act. Energy communities represent a tangible current process of change, not some utopian future. In the immediate wake of the coronavirus health emergency, as we already discussed in this article, came a complete upheaval of the economy, perhaps giving the impression of a new set of priorities. But this is not really the case. In fact, considering things more carefully, renewable energy remains at the top of the list of essential actions, as a solution that also forms a foundation to relaunch the economy and a basis for all of the long-awaited European funding connected to the Green Deal. Take Italy: just a few days ago the “relaunch decree” (Decreto Rilancio) became law, and with it the Superbonus incentive. This represents an important step in relaunching the suffering construction sector, whilst driving improvement in the average energy efficiency of Italian buildings.   Energy Efficiency: a step towards the UN goals Energy efficiency is an essential and urgent consideration. Directive 2018/2002/EU, amending Directive 2012/27/EU on the basis of the 2015 Paris agreement, is clear: Improving energy efficiency throughout the full energy chain, from energy generation, through to transmission, distribution and finally end-use: will benefit the environment, improve air quality and consequently public health, and reduce greenhouse gas emissions improve energy security by reducing dependence on energy imports from outside the Union cut energy costs for households and companies and lead to increased competitiveness and more jobs throughout the economy, thus improving citizens’ quality of life. This is even more important in light of the meeting of EU energy ministers in mid-June: preliminary assessments indicate a significant gap between EU targets and actual efficiency levels that current measures implemented by Member States allow. We will have to wait until September to find out more, when all National Energy Plans will be assessed. Returning to Italy: the Legislative Decree on energy efficiency represents an important step forward for the country. First of all, it confirms the obligation to save energy, extending its duration until December 2030, the deadline to hit European targets. It also strengthens the rights of consumers, acting on metering and invoicing of energy consumption, with a requirement for the use of smart meters that allow remote readings. Another interesting aspect regards training: by next year a national energy-efficiency training programme must be prepared. The aim is to increase awareness amongst all players in the energy world, at whatever level and whatever their role, public and/or private. Here at Regalgrid, we couldn’t agree more: awareness is fundamental.   Energy Communities: which next steps are necessary and urgent? Renewable energy can do a lot more. Alongside efficiency, it can drive the economic recovery and get the country back on track with United Nations sustainability goals. But to do this it needs to be able to realize its full potential: community-based collective self-consumption. Growth in clean energy, in fact, is still too slow, even though the European average falls within the expected standards, and only incentives like the Italian Superbonus can bring a significant increase. What is missing, today, for energy communities? At the preparatory level, simplified procedures are certainly required for installation of photovoltaic systems and an increase in investments for all renewables, including storage systems, on the transmission and distribution grid. Then, there is a lack of promotion of this new energy model and the training necessary to build a culture of energy sharing on a par with that established for energy efficiency. Regarding energy communities in Italy particularly, one essential element is missing: a regulatory framework outlining the characteristics of these entities in terms of self-consumption incentives and methods for compensation, also defining the dynamics of participation for the various parties, such as individual citizens, business and public administrations. What else? Get started. Try it out, assess the limits and critical issues, and implement necessary improvements. To start an energy community in Italy, there are few constraints: it must remain within the perimeter of the same low-voltage/medium-voltage transformer substation, it cannot exceed 200 MW total photovoltaic generation and it must observe applicable legislation.   If not now, then when? We must transform this opportunity into prompt action and get prepared Here at Regalgrid, we are hard at work because the time has come to act. In order to properly launch energy communities, we have decided to take urgent and prompt action, focusing our efforts on entities that are already set up to start or benefit from the approved laws. We want to offer a turnkey service for the building renovation projects governed by the Italian Superbonus, offering an integrated service for businesses and citizens, guiding them in the selection, purchase, installation and optimisation of a photovoltaic system and storage technology, and potentially a heat pump or electric-vehicle charging station. Our initiative is founded on a desire to make people aware of the great opportunities that are now available following recent legislative developments that favour investments in generation, storage, self-consumption and optimisation of renewable energy. From a detailed understanding of your consumption profile through to participation in an energy community, you can take an active role in changing the world of energy. This has led us to launch collaborations with architects, design studios, surveyors, construction companies and artisans, heads of home-owners associations, builders and renovators, specialists in the photovoltaic generation chain, heating engineers, energy-service enterprises, banks and, naturally, utility companies, to develop tailored projects for anyone who wishes to take advantage of this opportunity. Independent homes, commonholds and condominiums, social housing, artisan’s workshops and commercial units: these all represent active players that can put down the first roots of a multitude of local energy communities, becoming advocates of this new energy model, also involving those who have not or cannot install their own photovoltaic system. It is in our nature to live the present building the future that we imagine.

Today, the challenges of working as an artisan can be approached in various ways. Whether you run a graphic-design studio or a car wash, whether you are a tattooist, restorer or beauty technician or practice one of the many other professions included in the register of artisan businesses, your challenge also involves an area that perhaps you hadn’t considered until now: energy, and in particular energy communities. Of course, it may not be the first thing that comes to mind in this period of great upheaval. All artisan businesses, particularly those that need to be open to the public, will certainly be working hard at the moment to align their daily activities with new public health laws, guaranteeing precision without being excessively invasive. Social distancing of employees, personal-protection measures, barriers at tills, reception areas and front-office, and clear entry and exit routes: these have all become essential considerations to keep your business open in the wake of the coronavirus lockdown. Another challenge shared by all businesses is the economic question: how can we recover lost income for the first quarter of 2020? Even for those that continued working during the quarantine, with the exception of the health sector, profits were hugely affected by the unrelenting domino effect that was seen throughout all markets. In some cases, businesses are unable to sell and workers are not being paid. Even more so than before. And this is a difficult problem to solve, yet nothing is impossible. Identifying the most appropriate strategy requires delicate balancing of income and outgoings. This balance is threatened by unforgiving fixed costs. But why is this relevant here? Because energy is a fixed cost, even though there is a variable component depending on the type of business. Artisan enterprise, which represents the heart of Italy’s business fabric, thus takes on a central role in the energy revolution. How? The answer is clear: it’s in the title. But let’s go step by step.   Why should artisans use solar power? The real question we should ask is “why not?” The benefits can be seen across the board, from economic savings through to a positive environmental contribution.   Reducing environmental impacts The most evident factor is a reduction in the environmental impacts of your business, allowing you to contribute to the achievement of national targets for renewable energy consumption, setting an example for other companies in your area and also for your employees and customers. The decision to switch to renewables is increasingly recognised for its positive effect on awareness of environmental issues, leading to a return in the form of positive image for your business.   State incentives for SMEs Another important and evident factor is related to economic savings: solar power is first and foremost cost-effective thanks to incentives for businesses. Current legislation strongly supports installation of photovoltaic systems, promoting recovery and a more sustainable approach to consumption in line with the National Energy and Climate Plan (PNIEC) and the European Clean Energy Package.   Lower bills As we have mentioned, energy is a fixed cost for businesses: switching to solar power means producing the energy you consume, achieving 60% self-consumption with the support of storage systems. This allows you to cut your bill through a significant reduction in energy costs. This advantage is the most immediate and the most visible, although initially it will simply offset the cost of the system.   Exploiting excess energy Next, we have to consider that energy that is not consumed is used for services by the national operator, via tariffs paying producers for energy fed back into the national grid. However, in terms of energy that is not instantaneously self-consumed, there is another solution available to all artisans connected to the low-voltage grid, one which we have been championing as it represents the future of the energy sector: energy communities.   Why should artisans join energy communities? Because energy communities are the emblem of true and complete sustainability from an environmental, social and economic perspective, offering benefits for all parties involved. In other words, being a member of an energy community, along with residential users and other commercial users, amplifies the benefits described above. Participation in a community through use of a SNOCU also provides a detailed picture of your consumption and habits (your energy profile) which is balanced against those of other members by Regalgrid’s algorithm. In the specific case of artisans, acting as producers, consumers and storers of clean energy within an energy community (a figure we refer to as a proconstomer) means taking on a very comprehensive role that supports the balance of the community. In any case, this also offers the possibility of reducing fixed costs for energy and further cutting your bill, as well as reducing waste associated with the transport of energy, keeping energy flows within a local-grid range. In addition, this new form of collective and distributed self-consumption represents a decentralised energy model that also supports interconnected grid users in the event of energy crises. Certainly, the advantages for an artisan are generally very similar to those for domestic users but there is one significant difference. Artisans act as hubs for interconnections within society, having vast networks of contacts and they are one of the categories that people look to for guidance and advice. Artisans therefore have the capacity to become advocates of the energy revolution simply by raising awareness of the benefits that they achieve thanks to clean energy shared through energy communities. The shared, digital energy revolution is here: don’t shout it from the rooftops, but from the doorway of your workshop!

Living in a condominium is not always a bed of roses. There are certainly advantages in many cases, yet at the same time, sharing with others can be a challenge: common areas, maintenance, shared costs and responsibilities. But now you will be happy to take the rough with the smooth, because the energy world needs your help and can offer you great opportunities in return. The time has come to ask yourself not only what the world of energy can do for you in terms of consumption and savings, but also what you can do in the world of energy through informed, sustainable and community-based decisions. In the context of the current energy revolution, condominiums and commonholds are becoming a prized target, as investment in energy efficiency and independence of these types of property ownership structures seems to be the key to hitting national sustainability targets. In fact, relative legislation is moving towards full adoption of the European RED II Directive by 2021 (you can read more about this in our article on Energy Communities), incentivising actions for environmental sustainability and shared consumption of self-generated electricity. But why condominiums?   The role of condominiums in the energy revolution Strength in numbers Many people living in an apartment or managing a building with multiple real-estate units are perhaps still unaware of the fundamental role that they can play in the energy revolution. First of all, there is a simple question of numbers: this type of property ownership is widespread in Italy, but also across Europe. According to the most recent Eurostat data, the European countries where condominiums have become particularly widespread in the last decade include Latvia (66.2% living in condominiums), Spain (64.9%), Switzerland (62.5%) and Estonia (61.5%). This trend is significantly greater than the European average of just 41.9% in the same year (EU28, 2013-2020). Succeeding in involving this quantity of residential properties in progressive growth of energy savings and use of renewables would mean a huge step forward towards achievement of the United Nations sustainability goals, not just for Italy but across Europe.   Condominium-based photovoltaics for collective self-consumption Another factor that should not be overlooked is the possibility of collective self-consumption in condominium and commonhold settings, as defined by the European RED II Directive. You could therefore take this opportunity for a new challenge: taking advantage of photovoltaic systems not only for consumption in common areas or for central heating systems, but also for the individual real-estate units. But what is the real challenge? To convince the homeowners association of the need to contribute to the planet’s well-being with installation of a photovoltaic system and storage technology. Here is a solid argument that you can use: consuming clean energy gives you the opportunity to have a positive impact on the environment, reducing pollution and making your contribution to the achievement of national targets, but it also means a concrete personal advantage in the form of savings on your energy bills.   Condominiums used to launch energy communities Condominium properties therefore represent the perfect solution to share clean energy between different users, or POD (points of delivery). Why is this? One determining factor is certainly that collective self-consumption occurs prior to energy entering the low-voltage national grid, eliminating complex variables in this initial phase of growth in energy communities. Ensuring efficient operation of a closed system is the first step towards optimisation of sharing on the low-voltage grid. This is why collective self-consumption pilot projects have been launched across Europe, such as the Renaissance project, with the aim of cost/benefit analysis of energy, environment, social and economic factors and identification of possible technical, legislative and administrative barriers to optimise development of the solution. Are you asking yourself whether you can already launch a similar project? Maybe you are wondering whether the self-generated energy can be allocated amongst the various real-estate units of a condominium? The answer to both of these questions is: absolutely! But more importantly, how? The most intuitive solution could seem to be dividing up the energy into small units for equal division between the different users. However, this does not suit the differing energy requirements arising from different consumption profiles of households within the condominium building. For independence of the ecosystem, it is necessary to provide energy to users as and when they need it, managing and keeping track of quotas allocated and consumed for each user. This is not a simple task, but this is exactly where Regalgrid comes to your aid. Our platform performs precisely this task, digitally managing energy through real-time monitoring of energy flows using SNOCUs. These are gateways typically equipped with a smart meter that control the individual PODs, the photovoltaic system and the storage system. Let’s look at exactly how it works. Each condominium will have a single consumer SNOCU unit connected near to the meter, along with a single storage SNOCU that controls the whole photovoltaic ecosystem and storage technology and that communicates with the platform in real time. This allows the condominium to be recognised by the Regalgrid® platform as a community that shares local generation and storage of energy whilst tracing where this energy is consumed and allocated in the case of excess or deficit (fed into or withdrawn from the external grid). The head of the homeowners association can also act as the administrator for the energy community (although this role can be assigned elsewhere) and will be able to monitor system operation via a dedicated login. Each individual real-estate unit within the condominium structure will have its own individual login to check usage and overall energy performance of the community to which it belongs. With Regalgrid’s help, you can therefore share the benefits of optimising energy flows, economic savings and low environmental impacts: common benefits that coincide with the interests of the individual through use of sustainable solar power.

Smart communities represent a change of paradigm and, if we want, of mentality, in which the “digitization of everything” must be embraced, welcomed and understood. The world of energy is no exception and the Italian market has the potential to be at the forefront in this sector. For this Regalgrid has been working for years on the development of the fundamental technology to enable this great innovation of the energy communities. And now that the legislation opens the doors to collective and shared self-consumption, it is more than ready to support this epochal change.   Italy is smart With smart meters anticipated by at least a decade compared to the rest of the world, our country has opened up to the production of renewable energy, welcoming all the requests of the European Union. Now, with the signing of the Milleproroghe Decree still fresh, at the beginning of March 2020, it can only talk about smart communities, as a synonym for energy communities, to promote them as a sustainable energy model. We have already clarified what an energy community is: a group of people who do energy sharing thanks to a smart grid. The fundamental characteristics of such a community are the peer to peer or many-to-many relationship among the community members and the common desire to self-consume and share energy from locally available renewable sources. The beauty of this innovation is its DNA, made of 360 ° sustainability: environmental, economic and social. Let’s see how.   What the Italian legislation on energy communities says The Milleproroghe Decree concretizes in Italy some of the indications of the European Directive “Renewable Energy Directive” (RED II), precisely those in Article 42bis, which legally defines energy communities. The Italian Decree establishes the possibility of creating communities that exchange energy for the purpose of collective self-consumption, both instantaneous and deferred. The goal of this self-consumption is not profit, but the benefit of all at an economic, social and environmental level. This underlines the importance of the sense of community, in which everyone does their part for the good of all which also coincides with the advantage of the individual. The income from the sale of energy must therefore not be the primary source of income. The sense of community eliminates greed. Anyone who consumes energy can participate in these communities, regardless of whether they own a photovoltaic system, a storage system or are a simple supporter of clean energy. The two forms of aggregation for collective self-consumption are the energy communities (many-to-many) and groups of self-consumers who live in the same building or condominium (one-to-many). Here accessibility introduces equity. Agreements for the sale of energy are bound by private contracts: maturity brings honesty and respect to the table. The exchange of energy must take place through the existing distribution network: the utility renews its usefulness to consumers. At the moment, the energy communities in Italy can only be established downstream of the same MV / LV transformer substation, for single plants with power lower than 100kW and overall not exceeding 200KW, activated after 1 March 2020, date of entry into force of the Law converting the Decree. In the future, however, this model will expand, with greater chances for everyone to be part of this energy revolution. In any case, this running-in period in the low voltage grid will allow people outside the sector, pure and final consumers of energy, to appreciate the benefit of this new paradigm. For the public administration and the Operator it will instead be a test period to evaluate its functioning and subsequent implementation. A project with limits, but far-sighted, a symbol of the virtuous intertwining of energy and technology, between innovation and vision.   Future scenarios of energy communities in Italy To look to the future we must first look to the past. Before the entry into force of the Milleproroghe Decree, there were cases of local avant-gardes in the field of energy communities, such as the case of the Piedmont region, the first to adopt a law on the subject, the Regional Law n.12 of 03.08. .2018 “Promotion of the institution of energy communities”. This law gave the mandate to explore what possibilities could arise for people, organizations and companies to exchange self-produced energy with renewable sources, constituting an energy community. The following year the call for applications came out. The conditions for being considered suitable concerned the number of subjects involved, the production and consumption volume of the group. Piedmont was waiting for nothing more than a national law to better regulate the dimension of the energy communities. Similarly, the Sardinia region has also begun to actively promote the creation of energy aggregations and communities through various calls, including by encouraging research and experimental development of new services in the smart grid sector. These are just a few examples to demonstrate the virtuous and proactive thrust that thrills in our country for energy communities. Regalgrid is the first supporter of new projects that are starting in various areas of Italy: from residential energy communities to smart condominiums, from private microgrids to those serving the Public Administration and many other forms of membership. And this is possible thanks to the patented Digital Energy management platform which, thanks to the SNOCU Regalgrid, the gateways that enable any type of system required by Italian legislation to create a network for sharing energy with other users, monitor the operation of the smart grid and, thanks to proprietary algorithms, analyze and process the data in real time to then return it to community members and its administrators. The preview of the data from the Politecnico di Milano Energy & Strategy Group Report, which will be presented in July 2020, is encouraging. Smart communities would bring benefits not only to the members involved, but also to the electricity distribution system, thanks to the contribution to the innovation of the infrastructure, reduction of management costs which could be between 10 and 30% per year compared to the expenses incurred today : actual savings would range between 300 million and one billion euros per year. Energy communities also contain the potential of reducing energy dependence on foreign countries by 1/6, for a value of about 10 billion euros per year. Not to mention that the development of national production chains for the devices needed to enable communities would open up a market worth between 10 and 40 billion euros by 2030. The numbers of the current communities are very low and are mostly configured as experimental situations. But in the next 10 years, a scenario of between 25,000 and 100,000 energy communities is conceivable, which would produce a market estimated between 50 and 160 billion euros. In the more cautious scenario, The European House Ambrosetti estimates a reduction in CO2 emissions of 3.6 million tons of oil.

Renewable energy is becoming more and more accessible due to the development of generation technology that lowers intrinsic costs. An initial solution was the introduction of storage units to be connected to photovoltaic systems, allowing energy to be consumed as needed and making energy available irrespective of the time of day or the geographic location. But the most effective solution to maximise the usage of energy generated by solar panels is the energy-community. But what are energy communities?   What is an energy community? An energy community is a group of people that share clean energy, in an exchange between equals. Energy communities can therefore be considered as an innovative model for the production, distribution and consumption of renewable energy. This model is founded on the pursuit of objectives such as combating energy wastage and sharing a fundamental commodity at a competitive price, by relying on an innovation that is revolutionising the energy market. To properly understand these smart communities, we must first grasp the concept of a smart grid. The electricity grid is undergoing a transformation that everyone has experienced in other aspects of daily life: digitalisation. The digital world, like the web, allows peer-to-peer node-based connections. We have transitioned from a centralised physical grid with one-to-many transmission (the electricity operator supplying energy to our homes) to a decentralised digital grid, with one-to-one and many-to-many connections. This is a “smart” grid because, in addition to the necessary metering sensors, it also incorporates complex artificial-intelligence algorithms, allowing individual citizens to take an active role. How? Through the smart grid, which allows each individual to become part of an energy community: owners of a photovoltaic system connected to the grid (prosumers) can share their excess energy with other consumers. Anybody can join one of these communities that share clean energy, reducing energy wastage and lowering both their bills and their carbon footprint.   The members of an energy community What are the requirements to join an energy community? Whether you live in an apartment or in a detached or semi-detached house, if you wish to play an active role in the energy revolution, you will need a photovoltaic system with a storage unit. Otherwise, you can be involved in the energy transition simply as a consumer: all you need is some knowledge of the matter, a controller such as the SNOCU from Regalgrid, and access to a digital platform for the management of energy communities, such as Regalgrid itself.   Energy communities in Europe: the RED II Directive The EU Directive, also known as RED II, is the result of a European energy movement, and amongst the various regulations on energy sustainability it also establishes financial support for the generation and self-consumption of electricity from renewables. The directive considers renewable energy as an essential element for a fairer and more sustainable energy market based on the circular-economy model, which promotes technological innovation alongside environmental, social, health and economic benefits. Energy communities are also presented as a current and necessary solution to promote the generation and consumption of renewable energy. In fact, energy communities are already widespread in some European countries such as the UK, Spain, Greece, France and Germany. They can rely on the support of effective financing and incentive systems, a clear regulatory framework and by raising public awareness. The RED II directive also defines the assignment of rights to self-consumers that join energy communities and also regards this form of networking as a great opportunity for standard consumers, with a reduction in consumption and lower costs.

Energy communities have arrived in Italy, thanks to the Milleproroghe Decree, introduced ahead of complete transposition of the 2018 European Renewable Energy Directive, which must be adopted by June 2021. Yet interest in renewables at the global level began with the goals defined by the 2030 Agenda of the United Nations, a document signed by Heads of State from all around the world in 2015, and continues alongside the spread of smart grids. Let’s take a look at global developments in the field of energy communities. Smart communities in Europe The Sustainable Development Goals established by the Summit have been integrated as a priority for the EU with the 2016 Clean Energy Package, extended in subsequent years with new directives. Specifically, the goal of clean and accessible energy for all outlines a significant increase in generation from renewable sources, as set out in Directive 2018/2001. This establishes that green energy must account for at least 32% of EU gross total energy by 2030, with each member state reaching its specific target by 1 January 2021. Italy’s target has been set at 17%, which was met by our country back in 2014 and surpassed with 20.12 GW generated in 2018 according to IRENA (International Renewable Energy Agency) data. Back in 2014, the European Council spoke of the importance of interconnection in the energy market in its conclusions on the “2030 climate and energy policy framework”. Directive 2018/2001 also defines collective self-consumption as a solution for increasing production of green energy and meeting Agenda 2030 goals. Following approval of European Directive 2018/2001, Spain was the first country to introduce the possibility of collective self-consumption, in the same year, with royal decree law 15/2018. This was followed by energy-community legislation in Greece (Law 4513/2018). This opened up the possibility of sharing energy without the need for a private distribution grid. Meanwhile, in Northern Europe there have long been positive examples of community energy: shared energy projects that are entirely or partially owned or managed by community groups, including energy co-operatives. Members of these communities can have different levels of involvement in the project (from production to storage and management of energy). One common feature of these projects is the involvement of utility companies for utilisation of distribution-grid infrastructure. Shared renewable energy in Denmark Denmark has been a shining example of collective investment in renewables since 1970. Its foresight allowed the country to reach 40% of wind turbines installed under community ownership by 2002, and this figure had risen to 80% by 2013: the renewable energy capacity of Denmark has thus become one of the highest in the world. The federal government deals with matters associated with energy and definition of agreements with utility companies for connection to the grid. However, these companies are not just partners, but rather co-owners of the projects. Since 2009, the Danish Renewable Energy Act has reduced the portion reserved to co-operatives to 20% of new wind-power generation projects. Since 2012, Denmark has also made significant progress in the photovoltaic sector, which in 2018 met 2.8% of energy demand with expectations for 1000 MW to be reached this year. The solar boom in Germany due to introduction of energy communities Germany has focused on various community-owned solar energy projects since the beginning of the ’90s, achieving 50% community-ownership of photovoltaic production in 2014. One widely discussed case outlined in the German Renewable Energy Sources Act is apartment-block self-consumption, where the energy produced and consumed within the building does not pass through the national grid, avoiding system charges from the operator. In 2015, the estimated number of renewable energy co-operatives was 973, largely using photovoltaic systems. In this case too, the federal government mediates and governs agreements for collaboration between producers and service companies. In 2018, 45.9 GW of energy was generated, placing the Germany not only amongst European leaders but also in the top five globally. The rise of energy communities in the UK In 2018, the UK had a solar-energy production capacity of 13.1 GW, making it one of the leading producers in the renewables sector, both in Europe and internationally. Management of this clean energy was connected to shared energy initiatives dating back to the end of the 20th century. In the new millennium, estimates set the number of active renewable-energy communities at around 300. In 2009, energy communities owned 4% of solar panels installed and currently 80% of shared energy projects use photovoltaic technology. In 2017, the UK generated more renewable energy than that from gas and coal, representing 33% of total energy generated, compared to 29% the previous year. Changes to legislation and regulations are altering the future of many projects that will have to find a new business model, business and supporters in order to survive. The whole of Europe is moving towards collective self-consumption Other European states are also increasing consumption of renewable energy, and this is thanks to energy-community legislation. The French Network Code defines “collective self-consumption” as a group of consumers and producers that organise themselves into a single legal person for the purpose of self-consumption within the same MV/LV transformer substation. The head of the consumption group communicates the division of energy to the operator. In Switzerland, federal law has established the possibility of collective self-consumption via groupings referred to as “RCPs”. These communities are formed of prosumers and consumers that join forces to share self-generated energy without using the national grid. The RCP is responsible for maintenance of private grids, distribution and metering of energy.   Solar communities in the USA Solar energy continues its growth also in America: in 2018, the USA generated 51.45 GW, placing it at the top of the leaderboard. In 2019, its renewable capacity represented 40% of the total, the highest annual value in the history of the sector. In the US, energy regulation is largely in the hands of individual states. The positive side of this is that the system is already decentralised. States at the forefront apply CCA – Community Choice Aggregation legislation, also known as municipal aggregation. This offers the possibility for individual cities or counties to decide who to rely on for energy supplies. These forward-looking states, including California, New York and Minnesota, have been experiencing a boom in solar communities or solar gardens since 2019. There are communities of this type in around 42 states but only 20 of these have legislation that allows them to achieve economies of scale. This solar-energy sharing model is aimed at allowing all members to share the benefits of photovoltaic energy at the local level, including those who cannot or prefer not to install systems on their property, whether due to a lack of space or for economic reasons. Australia: the expansion of smart communities In Australia too, renewable energy is spreading and the country recorded generation capacity of 10.3 GW in 2018. Community energy projects have spread as they did in the UK, particularly along the coast and in areas poorly served by the national grid. In 2006, this was a largely unknown concept but in less than ten years 19 projects were launched, with around another 59 in the development phase. Today, there are more than 100 energy communities across the country. Currently, ARENA (Australian Renewable Energy Agency) has assigned funds of $ 330,000 to support shared-energy programmes nationally. These programmes will be even more valuable for their contribution to identifying a solution for supply stability, which has seen a crisis in recent years after events such as the 2016 tornadoes. The whole world is therefore making the move towards digital energy communities, with the history and culture of each country determining different legislation and infrastructure, and above all different implementation models. But differences disappear when we consider the common goal of transition to a small-scale, distributed approach that characterises this energy revolution.