Renewable energy: complete guide to Renewable Energy Communities

Talking about renewable energy today means addressing one of the most relevant issues for the future of the planet. The need to reduce CO₂ emissions, the volatility of fossil fuel prices, and the growing attention to environmental issues have made the energy transition a global priority.

In this context, Renewable Energy Communities (REC) are emerging as an innovative model that allows citizens, businesses, and local authorities to become active players in the production and sharing of clean energy.

What is renewable energy

Renewable energy is produced from inexhaustible natural sources or those that regenerate over time: sun, wind, water, biomass, and geothermal heat.

Unlike fossil fuels, these resources do not generate significant greenhouse gas emissions, thereby contributing to the fight against climate change.

Among them, photovoltaics has established itself as a central technology, thanks to its installation flexibility and the decrease in costs in recent years. It is indeed the basis of most energy communities currently operating in Italy and Europe.

The Renewable Energy Communities (REC): a new paradigm

A REC is an association that brings together citizens, businesses, public entities, and cooperatives with the goal of producing and sharing renewable energy at the local level.

Their operation is based on a simple principle: the energy generated by a renewable plant is virtually shared among all members of the community through the national distribution network.
This model encourages collective self-consumption, reduces dependence on fossil sources, and improves the energy sustainability of territories.

The RECs find their regulatory basis in the European directives RED II and RED III, which promote the active participation of citizens in the production and management of renewable energy.

Why RECs are important for the energy transition

Energy communities not only represent an innovative way to produce energy but also a powerful tool to accelerate the ecological transition. The main advantages include:

• Reduction of emissions: the use of clean energy lowers environmental impact.

• Economic savings: thanks to state incentives, members reduce their utility bills.

• Energy independence: producing energy locally limits exposure to international markets.

• Stability of the electricity grid: RECs help to better manage demand, reducing peaks and risks of overload.

• Active participation: citizens are no longer just consumers but also producers and managers of energy.

The Renewable Energy Communities in Europe

In Europe, there are already about 9,000 energy communities, involving over 2 million people.
The phenomenon is particularly widespread in the Northern European countries: Germany leads the ranking with over 1,700 RECs, followed by Denmark, The Netherlands, and Belgium.

Even Southern Europe is rapidly catching up, with expanding initiatives in Italy, Spain, Portugal, and Greece, supported by European funds and increasingly favorable regulations.

The European picture is clear: energy communities are recognized as one of the fundamental levers to achieve climate neutrality by 2050, in line with the European Green Deal and the decarbonization targets set by the European Union.

Concrete advantages of shared renewable energy

Joining an energy community brings tangible benefits on multiple levels:

• For consumers: reduction in bills and access to more sustainable energy.

• For businesses: increased competitiveness due to lower energy costs and improved environmental reputation.

• For territories: local development, strengthening of social fabric, and greater energy resilience.

It is therefore a solution that combines economic advantages and environmental benefits, with a positive impact also on the social front.

Challenges and future prospects of RECs

Despite the potentials, energy communities still face some challenges common at the European level:

• Complex administrative processes, which can slow down the establishment of new communities.

• High initial investments, requiring accessible and sustainable funding mechanisms.

• Low awareness among citizens, who are still poorly informed about the benefits of RECs.

• Digitalization and intelligent management, essential to monitor and optimize the production and sharing of energy.

Overcoming these barriers is essential to make energy communities more widespread, efficient, and resilient, strengthening Europe’s path toward decarbonization.

Renewable energy and communities: the path forward

Renewable Energy Communities represent a key piece in building a sustainable future.
They offer economic, environmental, and social benefits, contribute to reducing emissions, and strengthen energy security.

Europe is investing in this model, and each country — from North to South — is finding its own way to enhance it, based on the characteristics of the territory and the availability of natural resources.

Participating in an energy community means not only cutting costs: it means supporting a new way of experiencing energy, more equitable, shared, and aligned with the climate goals of the European Union.

FAQ about renewable energy and RECs

What is meant by renewable energy?
It is the energy obtained from natural sources such as sun, wind, water, biomass, and geothermal heat, considered inexhaustible.

How does a Renewable Energy Community work?
A group of entities produces energy from renewable sources and shares it virtually through the national distribution network.

How much can one save by joining a REC?
The savings depend on consumption, the size of the community, and the sharing model adopted, but the economic advantages are concrete and measurable.

What incentives or supports are foreseen in Europe?
European countries adopt various economic support schemes, funded at the national level or through European funds (such as NextGenerationEU), to encourage the establishment and development of RECs.

What is the future of energy communities in Europe?
Their spread is constantly growing and represents one of the main tools to achieve climate neutrality by 2050.