Campania Region’s budget law: Approval of energy communities

Prepared by Energy Team

On December 29. 2020, the Regional Council of the Campania Region approved the Regional Law No. 250, concerning “Disposizioni per la formazione del bilancio di previsione finanziario per il triennio 2021- 2023 della Regione Campania – Legge di stabilità regionale per il 2021” (the “Budget Law”).

In particular, please note that pursuant to the provision set forth under article 20 of the Budget Law carried out in accordance with the Law Decree dated December 30, 2019 no. 162 – “Disposizioni urgenti in materia di proroga di termini legislativi, di organizzazione delle pubbliche amministrazioni, nonché di innovazione tecnologica” and according to the provision set forth under article 42 – bis, paragraph 9, as well as the implementing decree issued by Ministry of Economic Development on September 16, 2020 which identifies the incentive tariff for the compensation of renewable energy plants included in experimental configurations of collective self-consumption and renewable energy communities. According to such provision, the Campania Region promotes the establishment of non-profit entities set up to encourage self-consumption, production and exchange of energy produced mainly from renewable energy sources, as well as experimentation with new methods of efficiency and reduction of energy consumption, enabling both public and private entities to participate, provided that the annual share of energy produced for self-consumption is not less than 60% of the total (the “Energy Communities”).

The Municipalities that shall intend to establish an energy community, should adopt a specific memorandum of understanding drafted on the basis of criteria to be specified by a future regional measure. In particular, these are guidelines aimed to set out the requirements of the entities that will be able to participate in the Energy Communities and to describe the procedures for the management of energy sources within the communities and the distribution of the energy produced on a non-profit basis. This measure shall be issued within 90 days of the approval of the Budget Law.

Therefore, updates will be provided as soon as the Campania Region will issue the guidelines.

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