Companies’ Decarbonization: Energy Communities as a Lever of Competitiveness and Sustainability

Source: Giada Gubert intern at the Treviso-Belluno|Dolomiti Chamber of Commerce

In the context of growing awareness regarding climate change and the need to reduce greenhouse gas emissions, businesses are facing an unprecedented challenge: decarbonization. In this context, renewable energy communities emerge as a promising option for reducing the carbon footprint of business operations, representing a key to long-term sustainability and competitiveness.

WHAT ARE ENERGY COMMUNITIES?

Energy Communities emerge as a strategic tool for business decarbonization. They are aggregations of citizens, local governments, and small and medium-sized businesses that come together to self-produce, consume, and share energy from renewable sources, such as solar, wind, or hydro.

COMPETITIVENESS AND SUSTAINABILITY: THE BENEFITS FOR BUSINESSES

Energy Communities represent a new way of managing energy, with positive spillovers for the environment, the community and the entire territory in which they are developed.

For businesses in particular, participation in an Energy Community offers numerous benefits:

• Reduced energy costs: self-generation of energy from renewable sources allows for freedom from market fluctuations and a more stable and affordable price for energy in the long run, improving business profitability and increasing market competitiveness
• Increased resilience of the energy system: by diversifying supply sources and reducing dependence on fossil fuels, Energy Communities ensure less vulnerability to external shocks (supply disruptions or price increases) while also reducing energy imports from other areas.
• Abatement of CO2 emissions: Energy Communities contribute to the fight against climate change and help companies meet regulatory obligations with respect to sustainability.
• Improved reputation: Commitment to environmental sustainability is increasingly appreciated by customers, investors and stakeholders, strengthening corporate image and reputation in the market.
• Access to new markets: Participation in an Energy Community can open doors to new markets and business opportunities, fostering business-to-business collaboration, the development of dedicated products and services, and the creation of new production chains, from manufacturing to plant maintenance. For example, a construction company could collaborate with an energy company to construct energy-efficient buildings and equip them with photovoltaic systems.
• Incentives and financing: Energy Communities can benefit from European, national, and regional incentives and funding that facilitate their implementation and access to renewable technologies.

EUROPEAN FUNDING FOR DECARBONIZATION

The European Union (EU) has recognized the importance of the transition to a low-carbon economy and has allocated significant funds to support decarbonization projects, including those related to energy communities. Some of the major European financial instruments include:

• LIFE Program: is the EU’s funding program for environment and climate action. It funds projects that contribute to the transition to a sustainable economy, including initiatives to promote renewable energy and energy efficiency.
• European Regional Development Fund (ERDF): supports investments in EU regions to promote sustainable economic growth. Projects related to renewable energy and decarbonization can benefit from this fund.
• European Investment Fund (EIF): supported by the European Union’s InvestEU program, the EIF recently announced a €150 million investment in the “White Summit Capital Decarbonization Infrastructure Fund” (WDIF II). WDIF II has a target of €500 million and invests in projects that support the transition to clean energy, combat climate change, and ensure security of energy supply.

ITALIAN CER DECREE

Released on January 23, 2024, the CER Decree incentivizes the emergence and development of Energy Communities  and widespread self-consumption, fostering the production and sharing of energy from renewable sources across Italy.

The Decree focuses on two measures:

• A non-repayable grant of up to 40% of eligible costs for plants built in small municipalities under 5,000 inhabitants.
• An incentive tariff available throughout the country and to be applied on renewable energy produced and shared by community members

VENETO REGION CALL FOR FUNDING 

The Veneto Region has allocated 1 million euros to support the birth and evolution of Energy Communities in the territory. The call offers a non-repayable grant of up to 30,000 euros to cover 80%of eligible expenses for project implementation.

Applications can be submitted online through the regional information system “SIU” from 10 a.m. on Feb. 1, 2024 until 5 p.m. on Feb. 29, 2024. For more information see the Veneto Region website here.

SOURCES

MASE – DECRETO CER
https://www.mase.gov.it/comunicati/energia-mase-pubblicato-decreto-cer 

EUROPEAN COMMISSION
https://ec.europa.eu/commission/presscorner/detail/en/IP_24_466 

REGIONE VENETO
https://www.regione.veneto.it/web/rete-degli-urp-del-veneto/dettaglio-news?articleId=13928358

Enel Green Power
https://www.enelgreenpower.com/it/paesi/europa/italia/comunita-energetiche-rinnovabili 

Il Sole 24 Ore
https://www.ilsole24ore.com/art/comunita-energetiche-e-incentivi-2024-sara-l-anno-nuova-normativa-AF3kwZDC 

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