Renewable Energy Communities: The Driving Force Behind the Energy Transition in Our Cities

The Energy Transition: Renewable Energy Communities Driving Change in Our Cities

The energy transition is one of the most pressing challenges of our time, particularly in urban areas, where over 70% of global emissions and energy demand are concentrated. In this context, Renewable Energy Communities (RECs) are emerging as one of the most innovative and promising tools to promote sustainable, participatory, and distributed change in how energy is produced and consumed.

The topic of RECs will be among the highlights of the 2025 edition of SBE.

Renewable Energy Communities

RECs are associations of citizens, public authorities, businesses, and other local stakeholders that work together to produce, consume, share, and collectively manage energy from renewable sources. These are non-profit legal entities whose members join forces not for commercial gain, but to achieve environmental, economic, and social benefits.

Energy is generated through photovoltaic, wind, or other green energy systems installed on rooftops, parking areas, public spaces, or industrial zones. The electricity produced can be self-consumed, fed into the grid, or shared among community members, using digital technologies for monitoring and energy flow balancing.

The Role of RECs in the Urban Transition

Cities are the main contributors to energy consumption and greenhouse gas emissions, yet they also hold the greatest potential to trigger change. RECs offer concrete solutions to address many of the critical challenges in urban systems:

• Local energy production: RECs reduce reliance on centralized fossil-based energy, encouraging a distributed energy production model that leverages local renewable resources (solar, wind, biomass, etc.).

• Citizen engagement: The active participation of residents, housing associations, schools, public institutions, and businesses fosters collective responsibility in energy management, raising environmental awareness and promoting social equity.

• Efficiency and savings: Self-consumption and energy sharing reduce grid losses and help lower energy bills, especially for vulnerable population groups.

• Urban regeneration: RECs can drive energy retrofitting of buildings, promote electric mobility, and integrate storage systems and smart grids, transforming neighborhoods into intelligent ecosystems.

The Regulatory Framework and Outlook in Italy

Following the transposition of the European RED II Directive, Italy has established a more stable regulatory framework for the development of RECs. Legislative Decree 199/2021 and subsequent provisions by ARERA and GSE introduced specific incentives for collective self-consumption and energy communities.

The National Integrated Energy and Climate Plan (PNIEC) and the NRRP (National Recovery and Resilience Plan) place strong emphasis on RECs as key to achieving decarbonization and tackling energy poverty. In particular, the NRRP allocates €2.2 billion to support the development of energy communities in municipalities with fewer than 5,000 inhabitants, while many regions and metropolitan cities are launching pilot projects in urban areas.

Best Practices and Replicable Models

Several Italian cities are already experimenting with RECs as drivers of the urban energy transition. In Milan, the “Energia a Km0” project involves schools, housing blocks, and businesses in sharing solar energy. In Naples, the San Giovanni a Teduccio neighborhood hosts a REC led by the University of Naples Federico II, with a strong social impact. In Bologna and Rome, local authorities and associations are collaborating to launch communities in both historic centers and suburban areas.

These examples demonstrate that, with the right regulatory and technical support, RECs can scale even in complex environments, fostering new models of participatory energy governance.

A Cultural Shift, Not Just a Technology

Renewable Energy Communities are more than just a technical innovation — they represent a cultural shift. They offer a tangible opportunity to make cities more resilient, inclusive, and sustainable. However, their growth requires coordinated efforts from public administrations, businesses, professionals, citizens, and institutions. With the right support, RECs can become the beating heart of the urban energy transition in Italy and across Europe.