Widespread Self-Consumption Configurations and Their Business Benefits

Article
operatore tra pannelli solari
Contributed by
Enrico Vissio, PRAXI Energy
Date of publication
March 18, 2024
  • Valuations & Advisory
  • Energy
  • Energy Efficiency
  • Energy Transition
  • ESG
  • Sustainability
  • Article
operatore tra pannelli solari

On April 20, 2024, Italy celebrates the first edition of Green Energy Day, a day dedicated to Energy Transition, during which renewable energy facilities open their doors to the public with the aim of raising awareness and educating the community on the importance of environmental and sustainability issues.

With the occasion, we delve into a hot topic of recent months, namely Energy Communities (CERs) and possible Configurations of Self-Consumption for Renewable Energy Sharing (CACER), taking a closer look at their opportunities for participation and benefits for businesses.

We have already addressed the topic of Renewable Energy Communities on our platforms, explaining what they are and what the recent CACER Decree of the MASE in terms of incentives for widespread self-consumption.

As of today, two important updates are emerging that require attention: the publication of operating rules for accessing incentives and the availability of the Energy Services Manager (GSE) Portal for submitting applications.

CACER and members: incentives and roles

There are three Configurations for Widespread Self-Consumption that are eligible for the Decree’s incentives:

  • ERCs: legal entities formed by sets of citizens, for example SMEs and Entities, connected to the same primary cabin, sharing energy generated by facilities available to the ERC members themselves;
  • collective self-consumption groups: sets of at least two self-consumers acting collectively who are holders of separate connection points, but located in the same building or condominium;
  • individual remote self-consumers: systems composed of an individual end-customer who virtually self-consumes energy produced by plants located in areas under his or her own availability, but connected to a different connection point (POD) than the point of consumption, while remaining under the same primary substation.

As stipulated in the Decree and the operating rules, members of a CACER can take on three different roles:

  • end customer: the person who takes electricity from the grid and has the ability to virtually self-consume the energy generated by producers or prosumers connected to the ERC;
  • prosumer: the end customer, who simultaneously produces electricity intended both for their own consumption and for feeding into the grid for sharing;
  • producer: the entity that has the renewable energy production facility and makes all or part of the energy produced available to CACER. The producer need not be a member of the CACER, but can also be a third-party producer.

How the mechanism of self-consumed shared energy works

In a Self-Consumption Configuration situation, the producer directly consumes the energy produced by its own plant, thus becoming a prosumer, but simultaneously shares the remaining energy with the national grid to which other CACER users will also be connected.

It will be called virtual self-consumption when in the same time slot producers and consumers are respectively and simultaneously releasing energy to the grid and consuming.

Subsidies for widespread self-consumption

The economic contributions under the CACER Decree are:

  • valuation fee for self-consumed energy: for 2024 it will be 10.57 euros per MWh of shared energy;
  • shared energy premium tariff: this is an incentive from the GSE with a 20-year term starting from the commissioning of the plant. The amount of the tariff will depend on a fixed part, linked to the power of the plant, and a variable part, linked to the market price of energy. In addition, only in the case of photovoltaics, there is a premium for plants located in central and northern regions, since they are penalized by lower irradiation. The premium tariff represents the largest part of the subsidy and may range between 6 and 13 cents per kWh of energy;
Incentivo da tariffa premio
Incentivo da tariffa premio (Fonte: GSE)
  • NRP contribution: reserved for RECs and self-consumption groups whose facilities are located in municipalities with less than 5,000 inhabitants. It corresponds to a capital contribution of 40 percent of the expenses incurred for the construction of plants for the production of energy from renewable sources. The Decree introduces the following expenditure ceilings according to power size:
Contributo del PNRR

The role of enterprises

In this context, what is the role that an enterprise can assume? And what contributions can it access?

Much depends on its size. The Decree and operating rules do not set any particular limits for SMEs, except that energy production and dispatching will not have to be the main activity of the enterprise (ATECO codes 35.11.00 and 35.14.00).

However, a separate discussion applies to large enterprises, for which membership in an ERC as a partner or member is excluded. Therefore, eligible Configurations are only individual remote self-consumption and collective self-consumption groups.

The only exception concerns the possibility for large companies to take on the role of a third-party producer, i.e., a producer that is neither a partner nor a member of the ERC, but makes energy produced by a plant available to it. In this case, the ERC regulations stipulate that the electricity that these plants feed into the grid is considered in the shared energy calculation.

The operating rules also clarify that by not actually being part of the ERC as members or partners, third-party producers can also be represented by companies whose main activity is energy production or dispatching.

In terms of achievable contributions, however, we summarize below the differences for the different Configurations:

Differenze di contributo per le diverse Configurazioni

To find out more about the world of CERs and Self-Consumption Configurations and analyze in detail the benefits for your business, the PRAXI Energy team is available for in-depth discussions.

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Contributed by
Enrico Vissio, PRAXI Energy
Date of publication
March 18, 2024
  • Valuations & Advisory
  • Energy
  • Energy Efficiency
  • Energy Transition
  • ESG
  • Sustainability
  • Article
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