REC/CEC definitions

Overall assesment

Italy has only transposed the REC definition. The definition does not integrate all of the criteria contained in the RED II definition. In particular, neither autonomy nor effective control are addressed, raising the risk of abuse, although participation is forbidden if a potential member has REC participation as their main commercial or industrial activity. The REC definition stands side-by-side with the collective self-consumption definition, presuming an inherent technology focus for RECs, which may limit their ability to operate across the energy system. This is reinforced by a cap on production, which cannot exceed 200 kW, and an overly-rigid geographical proximity which has been defined as consumption points under the same low voltage grid.

Interestingly, the definition promotes inclusiveness explicitly by mentioning the need to ensure participation is open to low-income or vulnerable households.

Detailed assesment

Criteria of EU definition reflected in national definition

  • Nothing on autonomy
  • Openness and voluntary are covered
  • Effective control is not explicitly addressed

Level of detail in the elaboration of principles contained in EU criteria

  • Geographical proximity is defined in terms of the low voltage electricity grid underlying the same transformer substation between the medium voltage and low voltage grid; there is no differentiation based on different activities
  • Prevents participation from those that have participation in RECs as their main commercial or industrial activity, although this needs to be further clarified.

Clearly defined purpose

Must have main purpose to provide environmental, economic or social benefits to shareholders or local community members, rather than financial profits - fits EU definition but does not go further.

ICA cooperative governance principles reflected

  • Does not address principle of autonomy
  • Covers inclusiveness by explicitly mentioning the need to make sure participation is open to low-income or vulnerable households

Legal entities allowed

Does not allow for NGOs, universities or local organisations.

Citizen participation is ensured

Not addressed, although commercial or industrial actors may not have participation in a REC as a main activity.

Designated authority to oversee

ARERA does not have explicit authority to oversee, but it does have several duties relating to identification of tariff components and to monitor them, and identification of modalities to encourage participation by municipalities and public administrations in RECs.

Number of definitions

1 (REC).

Coherency between both definitions