Enabling Local Energy Transitions: An Exploratory Study of Diverse Municipal Governance Pathways in Renewable Energy Communities

Local authorities across Italy are increasingly engaged in the creation of Renewable Energy Communities (RECs), a diverse set of organizational arrangements characterized by varying legal forms, stakeholder configurations, and financing models, aimed at promoting the local production and consumption of renewable energy while advancing social and environmental objectives. Despite the growing number of municipality-led RECs, empirical evidence and theoretical understanding of how local governments design, build, and govern these initiatives remain limited. Existing research has largely focused on grassroots, citizen-led energy communities, often overlooking the strategic role, leadership, and oversight exercised by local authorities. However, following the transposition of EU renewable energy directives (RED II) and the adoption of national implementation decrees, municipalities have become central actors in the Italian REC landscape. Recent data from RSE indicate that more than half of existing RECs have been promoted by municipalities, either as founding members or as external facilitators. This shift highlights the need for a closer examination of municipal involvement in REC development and governance. To respond to this need, this study investigates how local governments in small and medium-sized cities engage in the creation of RECs within the broader context of collaborative public governance. Focusing on multiple municipality-led and hybrid REC initiatives across different regions in Italy, the study addresses the following research question: To what extent do local authorities employ different modes of governance in REC initiatives, and how are these shaped by their local capacities? The research adopts an exploration qualitative case study design, drawing on project documentation, semi-structured interviews with public officials, project leaders, and key intermediaries, as well as participant observations. The analysis is informed by two streams of literature: on the one hand the modes of governance framework (Bulkeley and Kern, 2006), which distinguishes between self-governing and governing through authority, provision, partnership, and enabling. On the other hand, a capacity framework focused on the local government’s ability to deploy sustainable programs (Kuzemko & Britton, 2020). The original combination of these two analytical lenses enables an in-depth exploration of how local authorities engage with REC initiatives and the conditions that enable such engagement. By unpacking the experiences and practices of municipalities involved in REC projects, this study contributes to advancing understanding of the role of local governments in energy transitions, while also offering practical insights for policymakers and practitioners engaged in the design and implementation of similar initiatives.