The EU Renewable Energy Directive (RED II) promotes energy communities, which involve local pooling of energy resources to foster collective participation in the energy market, enhance efficiency, and support clean energy transitions. These communities, categorised into Citizen Energy Communities (CEC) and Renewable Energy Communities (REC), aim to provide environmental, economic, and social benefits rather than financial profit. 

Despite over 9000 such communities in Europe, implementation varies, with challenges such as regulatory hurdles and bureaucratic complexities. For example, Germany's energy-sharing regulations are restrictive, while Italy and Greece are advancing with supportive frameworks and funding initiatives. 

The FEDECOM project, part of Horizon Europe, seeks to enhance sector coupling and flexibility in energy communities across Europe.