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Entry into Force and Context
January 24, 2024, marks the entry into force of the RECs Decree, a revolutionary measure aimed at supporting electricity produced by Renewable Energy Communities (RECs) and promoting widespread self-consumption in Italy. With a total value of 5.7 billion euros, the decree represents a significant step forward towards energy sustainability in the country.
The path leading to the approval of the decree has been complex and involved crucial phases, including approval from the European Commission and registration with the Court of Auditors. Successfully overcoming these steps, the decree is now fully operational.
Main Provisions of the RECs Decree
The main provisions of the RECs Decree outline a comprehensive framework to incentivize the adoption of sustainable energy practices:
- Incentivizing tariff on renewable energy produced and shared: The decree introduces a new incentivizing tariff, funded through a levy on electricity bills, valid for 20 years from the date of commissioning of each plant. The tariff varies based on the plant's capacity and the market price of electricity.
- Non-repayable contribution: Communities with installations located in municipalities with fewer than 5,000 inhabitants can benefit from a non-repayable contribution of up to 40% of eligible costs, financed by the National Recovery and Resilience Plan.
- Specific increases for photovoltaic systems: Specific increases are provided for photovoltaic systems in the central and northern regions of Italy, further stimulating the adoption of this technology.
- Capital contribution: A capital contribution is intended for those investing in renewable plants with a capacity of up to 1 MW, integrated into Energy Communities and located in municipalities with fewer than 5,000 inhabitants. The contributions cover a percentage of implementation costs, with differentiated spending limits based on the plant's capacity.
- Operational rules: Within the next 30 days, the Ministry of Environment and Energy Safety (MASE) will approve the operational rules, defining the procedures and timelines for the recognition of incentives.
Objective and Duration of the RECs Decree
The main objective of the RECs Decree is to stimulate the development of 7 GW of self-consumption renewable plants nationwide, significantly contributing to the country's energy transition. The new regime will be in force until December 31, 2027, with the possibility of early closure in case a contingent of incentivized power reaches 5 GW.
Next Steps and Informational Support
Looking ahead, the Energy Services Manager will play a key role in implementing the decree. Within 45 days of the approval of operational rules, portals will be active, allowing citizens to submit requests to participate in CERs and take advantage of widespread self-consumption.
The Energy Services Manager is committed to providing detailed informational support, including documents and informative guides through its website. An informational campaign, in collaboration with the MASE, will raise awareness among consumers about the benefits of this new initiative.
Furthermore, an online simulator will soon be available to assess the energy and economic efficiency of initiatives, while an interactive map of primary cabins is already accessible to provide detailed national-level information.
The RECs Decree not only promotes the production and sustainable use of energy but also presents itself as an innovative response to challenges related to climate change, opening new perspectives in Italy's renewable energy landscape.