CER - RENEWABLE ENERGY COMMUNITIES

Design, implementation and management of the new electric revolution

Kenergy and the development protocol for CER

An Energy Community is based on a collaborative approach among citizens, businesses, and government to the generation, distribution, and consumption of energy. Local communities or groups of individuals are actively involved in the production and management of renewable energy resources, each with different consumption and investment needs.

Therefore, Kenergia designed a protocol dedicated to creating an ERC that enables participants to maximize economic and energy efficiency benefits, consistent with regulations, permitting processes and access to incentives.

First steps in establishing an ERC

In order to initiate a CER, it is essential to conduct a detailed Feasibility Study following a technical survey to determine whether the project can be sustainable over time.

A preliminary analysis of the following key aspects should be carried out

  • All surfaces available;
  • Calculation of installable electrical powers;
  • The potential self-consumption of each participant (Prosumer);
  • An assessment of the time profiles of electricity consumption of each ERC member;
  • Calculation of Shared Energy and matching of production and consumption of CER members.

Prerequisites for the establishment of an ERC.

The ERC is a nonprofit legal entity that, when properly configured, allows a person to benefit from an incentive provided by the GSE for shared energy for a period of 20 years.

The basic conditions required by the regulations are:

  • Design and install new photovoltaic (or wind power) systems;
  • Comply with the maximum power limit of 1 MW of each plant (with no limit on the number of plants) available to the ERC for the purpose of calculating the incentives paid and recognized by the GSE;
  • All producers and consumers who are part of an ERC must be connected to the same primary cabin.

Kenergy's services for creating CERs.

1

Carry out the preliminary feasibility study
2

Technically support the creation of the ERC
3

Identify funding sources
4

Prepare, with its attorneys the contract establishing the ERC, any financing contracts, the O&M contract, and any other contracts necessary to define the relationship between all parties involved
5

Design and oversee the installation of new photovoltaic systems that count toward the incentives distributed by the GSE
6

Support the ERC in the actions carried out at the recognition of regional, national and community incentives
7

Assisting citizens and SMEs to actively participate in the ERC
8

Manage, with an ad hoc platform, the proper allocation of incentives and other economic benefits on the basis of the contracts governing their economic relations agreed upon at the time of the creation of the ERC

Economic benefits

The main economic benefits for ERC member Prosumers are:

1) Reduction of bill due to direct self-consumption

2) Revenue from all energy fed into the grid

3) Revenue from incentive share from GSE

Incentive provided by the GSE

  • Targeted nationwide: from small municipality to metropolitan city disbursed for 20 years.
  • It is a variable incentive depending on the size of the plant on the Shared Energy i.e. produced and consumed within the ERC (see definition next page)
  • Maximum subsidizable power 5GW realized by December 31, 2027

Non-repayable grant

  • Aimed at the territories of municipalities under 5,000 inhabitants
  • Up to 40% of the investment for those who create a CER
  • 2.2 Billion Euros from PNRR
  • Subsidizable power of at least 2GW until June 2026
  • Cumulative with incentive provided by GSE, which is, however, reduced by 40%

Practical example of the economic benefits

 

With a 1MWp plant and an annual production of 1250KWh, the following benefits can be estimated

BENEFICIARY

PLANT OWNER

Direct self-consumption can lead to the reduction of one-third of total bills. This value varies from utility to utility: a commercial facility can reach 80 percent, a school 30 percent as well as a household.

BENEFICIARY

FACILITY OWNER, OPERATOR AND PARTICIPANTS

Electricity shared virtually benefits from the specific incentive of energy communities: all energy fed into the grid is eligible for the GSE incentive. In the specific case, one can assume a range of revenues between 60,000Euro/year and 100,000Euro/year, depending on energy prices, geographic area and size of the plant.

BENEFICIARY

PLANT OWNER

Energy that is not self-consumed directly can be fed into the grid. In the example, estimating a self-consumption of 30% with a share of energy fed in of 875 KWh, this can be sold to the GSE with a revenue depending on the market price trend. At an estimated price such as April 2023, which was 135 Euro/KWh, the figures are 118,000€ per year.

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