Business models of Renewable Energy Communities: Evidence from a multiple case study in Italy

This study investigates the emerging business models (BMs) of Italian renewable energy communities (RECs) and addresses the limited empirical evidence on their strategic design and long-term sustainability from an institutional perspective. Drawing on the business model canvas and institutional theory, we conduct a multiple case study of ten purposively selected Italian RECs. Data from semistructured interviews, document analysis, and participatory meetings are triangulated to identify cross-case patterns and strategic configurations. The findings show that two variables are central to REC BMs: asset ownership and territorial scope. Decoupling public incentives from asset ownership lowers entry barriers and enables asset-light configurations but may expose non-asset-owning RECs to financial fragility and policy dependence. Territorial scope also matters since broader configurations facilitate resource pooling but increase governance complexity, whereas local initiatives benefit from stronger social cohesion and trust. The study offers rare empirical evidence on REC BMs, adapts established management frameworks to community-based organizations, and identifies distinctive archetypes in a rapidly evolving institutional landscape. The findings suggest that policymakers should design differentiated support schemes that reflect REC heterogeneity. Asset-owning RECs require access to finance and technical capabilities, while non-asset-owning models depend on stable incentives. RECs can support decentralization, energy poverty reduction, and democratic participation, but broader initiatives require explicit trust-building mechanisms to preserve engagement.