Energy communities: what they are and how they have revolutionized the sector

Vista aerea di case a schiera con tetti grigi e blu. Strade, auto e giardini. Comunità energetiche, sostenibilità.

Energy communities represent one of the most advanced solutions for the sustainable energy transition. In a world increasingly focused on renewables, they represent an innovative alternative to the way we produce, distribute, and share energy. Let’s learn more about their characteristics and how they work.

What are energy communities?

Established under the Milleproroghe Decree 162/2019, energy communities are groups of citizens, businesses, local public administrations, and small and medium-sized enterprises that collaborate to produce, exchange, and consume energy. Each community stakeholder is called upon to actively and consciously participate in the production, use, and exchange phases, thus promoting sustainable management.

To implement their projects, energy communities leverage advanced technologies and digitalization, advocate for reducing energy waste, and promote cost reductions. They are, in effect, new socioeconomic models based on sustainability and circularity.

Renewable Energy Communities

Energy communities include renewable energy communities, which produce energy through solar, wind, or hydroelectric plants. Their primary (and most ambitious) goal remains energy self-sufficiency, meaning the ability to meet the community’s needs with a near-zero environmental impact.

Self-consumption energy communities

In self-consumption energy communities, energy production and consumption are limited to the community itself. In other words, the energy produced is not sold or shared, but is used primarily for internal consumption. This approach can be applied to various economic or social contexts, such as a small provincial town that decides to promote the installation of photovoltaic panels on the roofs of homes and buildings, with the aim of building a large energy generator to be shared with all its residents.

Let’s take some examples

There are numerous examples of successful energy communities around the world, including:

The Smart Island – EcoGrid is a European project that aims to combine smart electricity grids and renewable sources, maximizing efficiency and reducing waste. The Danish island of Bornholm was involved in the project and is currently able to self-generate 50% of its energy needs thanks to a cutting-edge wind farm. Through Ecogrid, the 2,000 residents are periodically asked to reduce their energy consumption when the wind is too weak, in exchange for a reduction in their energy bills.

SonnenCommunity – Each member of the community is equipped with a solar energy storage system, connected to the systems of the other participants. This allows for constant sharing and exchange of energy, promoting efficiency and reducing costs.

Mossi e Ghisolfi Group – The Italian energy community Mossi e Ghisolfi Group uses photovoltaic systems and advanced management systems to produce and share renewable energy among its members, significantly reducing CO2 emissions and energy costs.

How are energy communities managed? Optimization and engagement systems

Managing an energy community is not simple; it requires coordination and maintenance to ensure consistent and equitable energy distribution. All without waste and without leaving anyone behind.

Startup obviously requires planning and design, from choosing renewable energy sources to the most suitable systems. Then, once the energy community is operational, it is essential to manage daily operations and ensure system and equipment maintenance. These aspects are linked to the financial management of the entire ecosystem: ensuring the economic sustainability of the community is crucial, and this requires advanced skills in cost management, investment planning, and profit distribution among members. Maintaining a high level of engagement and participation is essential to the success of the energy community. To be successful, it is important to hold regular meetings, foster transparent communication, and leave every opportunity for feedback open.

Software as a management support

In addition to the above, software can play a crucial role in managing energy communities, supporting every aspect (from design to system maintenance to communication planning).

Monitoring software is undoubtedly essential, as it allows real-time monitoring of energy production and consumption. It provides detailed data that can aid in energy management and resource optimization. Energy management software, thanks to its predictive capabilities, can plan and manage energy distribution within the community. For energy communities that involve exchange, there are also dedicated software solutions that offer payment systems, compensation mechanisms, and transaction management tools. Finally, analytics software, which can be used to evaluate the energy community’s performance, identify areas for improvement, and plan future expansions or modifications, is also crucial.

Energy communities: FAQs

  1. How can I start an energy community?

First, it’s important to consider local regulations and obtain any necessary permits. This is followed by an in-depth analysis of consumption data and the development of projects and financial plans. The third phase is the actual implementation.

  1. What are the benefits of energy communities?

Undoubtedly, the reduction of energy costs and the promotion of the use of renewable energy sources (and the resulting zero environmental impact). Added to this are the increased energy security and the strengthening of social cohesion among members. Energy communities offer a sustainable and collaborative solution to address current challenges and can, in fact, significantly contribute to a greener and more equitable energy future.

  1. How are costs and profits managed in an energy community?

Costs and profits in an energy community are managed through an accounting and budgeting system. In some cases, members can contribute to startup and operating costs. When this happens, the profits can be distributed or reinvested in the community for further improvements.

  1. What are the most common difficulties?

Community promoters generally encounter the greatest difficulties with regards to energy resource management, coordination between members, and above all local regulations and authorisations during the start-up phase.