Section outline

  • Since REC members are connected to the public distribution network, the energy produced by a community installation (e.g., a photovoltaic system on a condominium or private roof) does not flow physically and directly to another member’s home. The energy is injected into the public grid and "drawn" by the members like any other consumer.

    The sharing mechanism is therefore "virtual" and relies on hourly measurement and accounting of energy flows via smart meters. At a given hour, the shared energy is calculated as the minimum between:

    • The total energy injected into the grid by all REC installations.
    • The total energy drawn from the grid by all REC consuming members.

    On this “virtually shared energy”, the State provides economic incentives and reductions in network charges, which constitute the main economic benefit for the community. This model has been adopted, with minor variations, by many European countries (Di Fazio et al., 2022).