RE-Communities and self-consumption: What are the special features to consider when planning?

As with traditional renewable energy projects (think, in particular, of PV systems or wind farms), the local project developer also plays an extremely important role in self-consumption models. In addition to the traditional identification of suitable areas, the developer must also identify the participants who are interested in taking part in the self-consumption model. Once this has been done, an energy audit must be carried out and a business plan drawn up to determine when and how much electricity the planned configuration will draw from the grid and feed into the grid via the integrated renewable energy system and whether the project is economical per se.

There is a simple reason why this is so important: the basis for calculating the subsidy is the amount of electricity „shared” within the RE collective (in Italian "energie condivisa"). The shared electricity is calculated on an hourly basis. This shows how much electricity the self-consumption model feeds into the electricity grid every hour via the integrated renewable energy system and how much electricity all participants in the configuration collectively draw from the electricity grid every hour. The smaller amount between these two values corresponds to the shared amount of electricity that is subsidized by the GSE. 

It follows from the above that self-consumption of electricity takes place on a virtual basis within the aforementioned self-consumption models. The RE system thus feeds the entire amount of electricity produced into the public grid while the respective participants continue to meet their electricity needs via their individually selected electricity provider. Physical self-consumption of the renewable electricity within the self-consumption model - via a direct connection of the renewable energy plant to the participants - therefore does not take place, although it is of course permitted, and even desired, for a participant who may make their own renewable energy plant available to the collective to carry out direct self-consumption. However, this quantity of electricity physically consumed by one of the participants is not taken into account for the subsidy. 

The saving in electricity costs, which is ultimately the aim of the self-consumption model, is therefore not achieved through physical self-consumption, but by distributing the subsidised tariffs paid out by the GSE to the participants. The saving is therefore the difference between the electricity costs borne by the individual participant and the amount of the subsidy received on a pro rata basis.

The economic viability of a planned self-consumption system depends largely on how closely the feed-in and withdrawal curves of the electricity coincide. The closer the two values are, the higher the amount of self-consumed electricity and the corresponding subsidy. If, on the other hand, the two curves diverge greatly because, for example, the RE system only produces during the day (think of a PV system) while the participants draw the majority of the electricity in the evening and at night, then there will only be a small amount of shared electricity with correspondingly low subsidies. 

In order to bring the feed-in and withdrawal curves as close as possible, the possibility of integrating storage systems into the self-consumption model is envisaged. This makes it possible to control the feed-in of electricity from the renewable energy system and adapt it to the withdrawal curve, with a corresponding increase in support and therefore profitability.

Planning plays a particularly important role for self-consumption systems that function collectively (renewable energy communities and collective self-consumption). For this reason, it is possible for these systems to apply for a separate capital subsidy for the corresponding costs. The subsidy decree defines the so-called eligible costs - which include the costs for preliminary studies, planning costs, but also construction costs, acquisition costs for storage systems, etc. - and which can be directly subsidized up to an amount of 40%. This, mind you, is only on the condition that these are collective self-consumption systems that are implemented in municipalities with fewer than 5,000 inhabitants. If this capital subsidy is claimed, however, the amount of the applicable subsidy rate is progressively reduced, up to a maximum of 50% if the capital subsidy of the eligible costs is fully utilized.

Once the planning hurdles have been overcome, legal issues must also be analysed. Particularly in the case of models that require a collective - the RE community and collective self-consumption - it will be necessary to draw up contracts that regulate the rights and obligations of the individual participants.

Of course, this primarily concerns the distribution of the subsidy tariffs paid out by the GSE among the various participants. Since each individual participant's electricity consumption contributes to the amount of the subsidy tariff (the more electricity the individual consumes in line with the electricity fed into the grid by the renewable energy system, the higher the amount of electricity virtually shared within the collective and thus the higher the subsidy), it makes sense to distribute the subsidy received in proportion to the respective contribution of each participant. This key can of course also be combined with other factors, such as a minimum amount that each participant must receive (otherwise the motivation to participate could be lost) or special amounts for those participants who provide a renewable energy system. It is also conceivable - as has already been done in some pilot projects - to divide the subsidized tariffs among the workforce as part of an employee participation scheme.

However, when distributing the support tariffs, it is important to note that above a threshold of 45 % or 55 % of the support tariff - depending on whether or not separate capital support is requested - the surplus amount may only be distributed to physical persons or used to finance projects in favour of the territories in which the electricity installations of the self-consumption models are located.In the case of a configuration involving companies, this requirement must be taken into account when drawing up the business plan and assessing the benefits that the individual participants can achieve.​

In the updated version of the implementation regulations, the GSE has clarified that the claims for the subsidy tariffs and the other amounts that the GSE pays out to the self-consumption model can be assigned to a third party. The assignment of claims must relate to all claims against the GSE and may only be assigned to a single legal entity. Depending on how the self-consumption model is structured, the assignment of claims can thus be used to secure the claims of the third party that realizes and/or finances the RE system. 

As already mentioned, only virtual self-consumption of electricity takes place in the RE collective, which means that each participant retains its status as a normal electricity consumer and is free to choose its electricity supplier. Corresponding regulations that restrict this - for example by linking participation to the purchase of electricity from a specific utility - would therefore not be permissible.

As already explained, only virtual self-consumption of electricity takes place in the RE collective, which means that each participant retains their status as a normal electricity consumer and is free to choose their electricity provider. Corresponding regulations that restrict this - for example by linking participation to the purchase of electricity from a specific utility – would therefore not be permissible.

It must also be taken into account that participation in and withdrawal from a renewable energy collective must be free in principle. While free entry should not cause any major problems, the withdrawal of several participants can have a negative impact on the economic viability of the RE collective as a smaller number of participants leads to a reduction in the amount of electricity shared and thus to lower subsidies. Although the applicable regulations stipulate that a contribution for the investments made can be provided for early withdrawal by the withdrawing participants, this must - according to the legal formulation - be fair and appropriate. What this means and how this leeway can be utilised to prevent the (economic) stability of an RE collective from being impaired must be examined on a case-by-case basis.

In the case of both the collective self-consumption system (autoconsumo collettivo) and the EE communities (Comunità Energetiche), it is necessary to appoint a so-called referent who is authorised by a separate contract to manage the EE collective technically and administratively, in particular with regard to the purchase and distribution of the subsidy tariffs paid out by the GSE.

From a legal perspective, the RE community differs from the collective self-consumption systems in that it acts as an independent legal entity and it is therefore necessary to establish a specific company or association. For this purpose, a corresponding (notarised) deed of incorporation must be signed with the simultaneous adoption of articles of association that regulate the position of the individual participants within the company or association. This legal entity may only be of a non-profit nature, which excludes the pursuit of profit-orientated purposes. The most suitable legal form, such as a co-operative, consortium or association, must be examined on a case-by-case basis.

In conclusion, it should be noted that self-consumption models - with the appropriate support - represent an entrepreneurial opportunity for investors and renewable energy companies in many respects. In order for such a model to come about, it is first and foremost necessary to include a renewable energy plant, the realization of which must be financed accordingly. To this end, the investor can sell the renewable energy plant and other components (storage systems, measuring systems, etc.) to the renewable energy collective or make them available under a usage contract. In addition, services are required for the installation, operation and management of the self-consumption model that can only be provided by companies with the relevant experience and professionalism.