Italy

Overall assessment

Updated March 2025

Italy has definitively and fully transposed the REC definition with Legislative Decree 199/2021 and the CEC definition with the Legislative Decree 210/2021. The RECs definition refers to most of the criteria contained in the RED II definition, including autonomy and effective control. It 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 new legislation increased the previous cap on capacity, which now cannot exceed 1MW for each REC’s plant, and extended the RECs’ geographical boundary, that corresponds to the electricity market area of jurisdiction, whereas the calculation of self-consumed shared energy refers to the primary substation area (HV/MV). 

The CEC definition touches upon the open and voluntary membership and effective control, the different activities that they can undertake (production, distribution, storage, supply, aggregation, energy efficiency services, EV charge services), while the law states that CECs can take any legal form, as long as it is clearly stated that the main aim of the community is to bring environmental, social and economic benefits at the local community where they operate, as financial profits cannot be the main aim of the community (article 14(6)). There is an expectation that the criteria that have been included in the decrees will be further specified in by-laws, for instance the requirement of proximity and the autonomy criteria.

Interestingly, both REC and CEC provisions explicitly promote inclusiveness by mentioning the need to ensure participation is open to low-income or vulnerable households.

Detailed assessment

Criteria of EU definition reflected in national definition

RECs:

  • Autonomy and effective control are covered (the community is a legal entity and the exercise of control powers is headed exclusively by natural persons, SMEs, local authorities, including municipalities, research and training entities, religious entities, third sector and environmental protection associations as well as local administrations included in the list of public administrations published by the National Institute of Statistics - ISTAT)
  • Openness and voluntary participation are covered

CECs:

  • Open and voluntary participation are covered
  • Effective control by members (natural persons, small businesses, local authorities, including municipal administrations, research and training bodies, third sector and environmental protection bodies, religious bodies, as well as administration premises contained in the list of public administrations)

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

RECs:

  • Geographical proximity for RECs: RECs’ members can share energy within the same electricity market area, whereas the calculation of self-consumed shared energy refers to the primary substation area (HV/MV). 
  • Eligibility for RECs: Prevents participation of companies in case the participation in RECs constitutes their main commercial or industrial activity
  • Still some of the principles should be further clarified, especially with reference to the attribution of control powers within RECs

Clearly defined purpose

It is mentioned in both legislative decrees that RECs and CECs should have as their main purpose to provide environmental, economic or social benefits to members/shareholders or local communities, rather than financial profits - fits EU definition but does not go further

The Ministerial Decree 414 (07/12/2023, art 3, c.2, lett. G) established that RECs ensure that any excess amount of the premium tariff beyond the threshold of 55% of the shared energy quota is allocated exclusively to consumers other than businesses and/or used for social purposes with an impact on the territories where the sharing facilities are located.

ICA cooperative governance principles reflected

  • Covers autonomy for RECs
  • Open and voluntary membership
  • Covers inclusiveness by explicitly mentioning the need to make sure participation is open to low-income or vulnerable households for RECs and CECs
  • Member economic participation
  • Concern for community

Legal entities allowed

Natural persons, SMEs, local authorities, including municipalities, research and training entities, religious entities, third sector and environmental protection associations as well as local administrations.

Citizen participation is ensured

The Legislative Decree 210 /2021 on CECs (Article 11, c.7) makes a reference to vulnerable consumers and specifies that the local authorities that participate in the energy communities of citizens should adopt initiatives to promote participation in the communities of vulnerable customers, so that the latter can access the environmental, economic and social benefits ensured by the community itself.

The Legislative Decree 199/2021 (Art. 31, c. d) specify that participation in renewable energy communities is open to all consumers, including those from low-income or vulnerable households.

Designated authority to oversee

ARERA (Independent Energy Authority):  has defined the technical rules to calculate the virtual energy sharing and the self-consumed energy amounts, the electricity tariff components that are not applicable to the shared energy and overseeing that RECs members are not subject to discriminatory procedures or conditions.

GSE (Energy System Manager): is in charge of managing the implementation of the RECs registry, defining the management rules (standards, parameters, protocols) to measure the shared energy and acknowledging the incentives provided by the legal framework, monitoring (in collaboration with RSE) the evolution of the RECs system and the overall economic impact on the energy system. 

GSE should also predict the evolution of electricity for which tariffs and levies are applicable according to the development of RECs evolution trends and the overall need of financing the energy system. (DLgs 199/2021 art. 33)

According to 414/2023 Decree (art 14) the Ministry for Energy and Environment should have appointed (within 180 days) an independent entity to develop an Evaluation Plan of the overall RECs support scheme approved by the EU Commission within the State Aid framework. So far this entity has not yet been identified.

Also, in article 14(10) of the legislative decree for CECs it is mentioned that ARERA should adopt measures to implement the provisions of this Law, among which is to ensure that CECs can participate in all markets for electricity in a non-discriminatory way. Finally, in article 24 of the same decree for CECs it is mentioned that the Regulatory Authority monitors the elimination of obstacles and unjustified restrictions to the development of self-consumption of electricity and the CECs.

Number of definitions

2 (RECs and CECs)

Coherency between both definitions

The ARERA deliberation 727/2022 and the Ministerial Decree 414/2023 provided clear definitions and regulations for all the eligible “CACER” schemes, which include different configurations of self-consumption schemes, including RECs and collective self-consumption schemes.