In the picturesque valleys of Northern Italy, a quiet transformation is under way. Energy communities — locally governed, citizen-led initiatives that produce and share renewable energy — are emerging not just as a climate solution, but as a template for fairer, more democratic transitions to net-zero. Now, a comprehensive new study argues that this bottom-up model, still modest in scale, may offer crucial lessons for regions as diverse as Scandinavia and rural Canada.
Published in the journal Sustainability, the paper traces the rise of energy communities and renewable energy cooperatives (RECs) across Italy. While deeply rooted in Italian legal and political particularities, the core insight is more broadly relevant: energy transitions are more likely to succeed when they are participatory, local, and tailored to community needs.
A Democratic Alternative to Top-Down Transitions
Much of the global green transition to date has been steered by national governments, energy utilities, and technology firms. But this model is increasingly being questioned. It often fails to address the spatial, economic, and cultural specificities of smaller communities — and has sometimes exacerbated existing inequalities, leaving rural or lower-income populations behind.
The Italian case challenges this paradigm. Italy, though a relative latecomer to renewable energy cooperatives, has seen a rapid expansion of local energy projects since 2020, largely in response to EU directives promoting energy citizenship and decentralised energy systems. The study focuses on this acceleration, analysing regulatory frameworks, funding mechanisms, and case studies from Lombardy to Sicily.
The results are telling: energy communities in Italy are not only producing low-cost, zero-carbon power — they are also reinforcing social trust, generating local jobs, and redefining who gets to participate in the energy economy.
Why Northern Europe Should Pay Attention
Northern Europe has often led on renewable deployment. Countries like Denmark, Germany, and Sweden have long histories of cooperative wind and solar projects. But in recent years, these efforts have plateaued — a result, in part, of market concentration, rising land-use tensions, and growing policy fatigue.
Italy’s resurgence of local energy ownership offers a corrective. Its success is less about technological novelty than governance reform. New legal frameworks introduced in 2020 allow communities to form RECs, retain revenue from power generation, and access grid incentives. Importantly, these are designed for ordinary citizens, not just for municipalities or large cooperatives.
In Scandinavian and northern continental contexts — where energy systems are often centralised and professionalised — Italy’s example suggests how regulatory shifts could reactivate public participation. It also shows how energy justice goals (such as affordability and community empowerment) can be embedded into decarbonisation efforts.
A Blueprint for the Globe?
In parts of the world with vast and rural regions, energy security remains a persistent challenge. Many communities rely on diesel for power, with high costs and serious environmental consequences. While renewable energy projects exist, they are often delivered by external contractors, with limited local control.
Here, too, Italy’s approach is instructive. The study emphasises the value of ownership and agency. Where local actors — from farmers to town councils — are involved in design, governance, and benefit-sharing, projects are more likely to be accepted, maintained, and scaled.
The researchers also point to cultural and educational campaigns that accompanied Italy’s REC rollout. In places where energy poverty and institutional mistrust intersect, such “soft infrastructure” may be just as important as the solar panels or wind turbines themselves.
Policy Lessons and Pitfalls
Of course, the Italian case is not without its limitations. Many energy communities still depend heavily on EU subsidies and face bureaucratic delays in grid access or market integration. The authors stress that scaling up requires more than replicating laws — it involves sustained political commitment and a willingness to support communities beyond pilot stages.
But for policymakers and civil society leaders in Northern Europe and Canada, the core message is compelling: a just energy transition is not just about decarbonising technology — it’s about democratising power.
Source
Energy Communities and Renewable Energy Cooperatives for Just Energy Transitions: Insights from the Case of Italy, Sustainability 2025, 17(14), 6592, 2025-07-19
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