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Capacity Building Programme
Additonal Module 3 – Energy Communities

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This additional module provides an overview of energy communities as defined by EU directives and selected national regulations. In addition, Citizen Energy Communities (CECs) and Renewable Energy Communities (RECs) are defined in both the EU and national contexts.

Energy communities according to EU directives

Energy communities promote collaborative, citizen-driven energy projects, thereby supporting the energy transition. They contribute to the transformation of energy systems by enabling citizens to take local action and benefit from advantages such as increased energy efficiency and reduced costs1.

There are two important types of energy communities at EU level: (1) Renewable energy communities (RECs) established by the Renewable Energy Directive (EU) 2018/2001 (RED II)2 which was revised in 20233) and (2) Citizen energy communities (CECs) established by the Internal Market for Electricity Directive (EU) 2019/944 (IMED)4.

The concepts of RECs and CECs are very similar, but there are also some key differences5:

Similarities between CECs and RECs

  • Legal entity: Both must be established as a legal entity, with the permissible organisational form depending on national legislation.
  • Purpose: Their primary goal is to generate ecological, social and economic benefits for the community, rather than financial profit.
  • Energy activities: Both can engage in generating, selling, supplying and sharing electricity from renewable energy sources.

Differences between CECs and RECs

  • Membership & governance:
      • RECs: stricter requirements, with greater citizen participation and autonomy
      • CECs: less stringent requirements
  • Local dimension:
      • RECs: controlled by members located in close proximity of the installations
      • CECs: can operate nationally, without requiring proximity to the installations
  • Technologies:
      • RECs: limited to renewable energy sources (electricity, biogas, heat)
      • CECs: fossil and renewable technologies, but only for electricity generation
  • Activities:
      • RECs: focused on energy generation from renewable sources
      • CECs: broader scope, including energy distribution, energy efficiency services and electric vehicle charging

Energy communities according to national regulations

The Energy Communities Repository has compiled data from all EU Member States on existing policies and regulations for energy communities. This information is available in a freely accessible database6. The following section provides a brief insight into energy communities in Austria, Italy, Portugal and Romania.

Energy communities in Austria

Austria has established two separate definitions for RECs and CECs7:

A REC is a legal entity that enables the sharing of renewable electricity and heat within a community. It must consist of at least two participants located near the production site and must operate on a non-profit basis.

A CEC is also a legal entity controlled by its members or shareholders. Like RECs, it requires a minimum of two participants and the main purpose of the CEC must not be profit-oriented. Unlike RECs, CECs can operate across the concession areas of several network operators throughout Austria but are limited to electricity.

The Austrian Coordination Office for Energy Communities provides up-to-date information, brochures, sample contracts, etc. (available in German only): https://energiegemeinschaften.gv.at/

In the download section below, you will find:

  • An overview of the policy famework for energy communities in Austria (available in English)
  • Detailed information on energy communities in Austria (available in German )

Energy communities in Italy

Italy has established two definitions, with most criteria for RECs and CECs being similar8:

An REC is a legal entity whose members must be located in the same local area (communal area) as the production plants and connected to the same medium voltage station. Since 2022, state institutions have also been allowed to establish RECs. Members share the renewable energy produced by the REC’ plants, and the REC must operate on a non-profit basis.

A CEC is a legal entity under private law whose members are self-responsible and must exercise effective control. Its geographical scope is defined by the market bidding zone. The production plants used for electricity sharing must be owned and controlled by the CEC. CECs can only share electricity and must not be profit-oriented.

The Italian Coordination Office for Energy Communities provides…: Insert external link

In the download section below, you will find:

  • An overview of the policy framework for energy communities in Italy (available in English)
  • Detailed Information on energy communities in Italy (available in Italian)

Energy communities in Portugal

Portugal’s national legislation has introduced definitions for both RECs and CECs9:
RECs are legal entities with public or private membership. Members or participants should be located near renewable energy projects, which must include production units for self-consumption. These projects can be owned either by the REC itself or by third parties. A REC must not be profit-oriented.

CECs are legal entities with public or private membership. Members or participants may operate closed distribution networks and engage in a wide range of activities, including producing, distributing, trading, consuming, aggregating and storing energy. Unlike RECs, CECs can ue both renewable and non-renewable energy sources. A CEC must not be profit-oriented.

The Portuguese Coordination Office for Energy Communities provides…: I nsert external link

In the download section below, you will find:

  • An overview of the policy framework for energy communities in Portugal (available in English)
  • Detailed Information on energy communities in Portugal (available in Portuguese)

Energy communities in Romania

In Romania, RECs and CECs are enshrined in national law by two ordinances that include the following definitions. 10:

A REC is a legal entity that operates autonomously and is effectively controlled by its shareholders or members, who must be located near the renewable energy projects it operates and develops. The main objective is not to generate financial profits.
A CEC is a legal entity that is effectively controlled by its members or shareholders. It can engage in energy production (including renewable sources), distribution, supply, consumption, aggregation, energy storage, energy efficiency services, or charging services. Like RECs, the primary objective is not to generate financial profit.

The Romanian Coordination Office for Energy Communities provides…: I nsert external link

In the download section below, you will find:

  • An overview of the policy framework for energy communities in Romania (English language only)
  • Information on energy communities in Romanial (Romanian language only)

Further information

External links

Austrian Coordination Office for Energy Communities: https://energiegemeinschaften.gv.at/

Report on community energy policy and barriers: https://www.researchgate.net/publication/353044451_D33_Report_on_community_energy_policy_and_barriers

Enabling framework for renewables (EU): https://energy.ec.europa.eu/topics/renewable-energy/enabling-framework-renewables_en#renewable-energy-communities

Energy communities (EU): https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-communities_en

Energy Communities Repository products (EU): https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-communities/energy-communities-repository-products_en

Policy database (EU): https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-communities/energy-communities-repository-policy-database_en

Downloads

  • List Item #1

References

1 European Commission (n.d.): Energy communities. https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-communities_en (last accessed on 29.08.2025).

2 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources, Article 22. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=OJ:L:2018:328:TOC (last accessed on 29.08.2025).

3 Directive (EU) 2023/2413 of the European Parliament and of the Council of 18 October 2023 amending Directive (EU) 2018/2001, Regulation (EU) 2018/1999 and Directive 98/70/EC as regards the promotion of energy from renewable sources, and repealing Council Directive (EU). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023L2413&qid=1699364355105 (last accessed on 29.08.2025).

4 Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU, Article 16. https://eur-lex.europa.eu/eli/dir/2019/944/oj/eng (last accessed on 29.08.2025).

5 Energy Community (2024): POLICY GUIDELINES by the Energy Community Secretariat on the concepts of energy communities. https://www.energy-community.org/dam/jcr:70bed24f-42b1-41b4-920e-a451dd54f070/PG%20on%20energy%20communities_ECS_12032024.pdf (last accessed on 29.08.2025).

6 European Commission (n.d.): Policy database. https://energy.ec.europa.eu/topics/markets-and-consumers/energy-consumers-and-prosumers/energy-communities/energy-communities-repository-policy-database_en (last accessed on 29.08.2025).

7 European Commission (2023): Austria: Overview of the policy framework. https://circabc.europa.eu/ui/group/8f5f9424-a7ef-4dbf-b914-1af1d12ff5d2/library/77bb6aa2-b371-4781-9121-65d1b443c128/details?download=true (last accessed on 29.08.2025).

8 European Commission (2023): Italy: Overview of the policy framework. https://circabc.europa.eu/ui/group/8f5f9424-a7ef-4dbf-b914-1af1d12ff5d2/library/124dc5ed-7284-4d92-8143-99f3573cc9d1/details?download=true (last accessed on 29.08.2025).

9 European Commission (2023): Portugal: Overview of the policy framework. https://circabc.europa.eu/ui/group/8f5f9424-a7ef-4dbf-b914-1af1d12ff5d2/library/3942727b-d713-4522-be59-fe971a3e102d/details?download=true (last accessed on 29.08.2025).

10 European Commission (2023): Romania: Overview of the policy framework. https://circabc.europa.eu/ui/group/8f5f9424-a7ef-4dbf-b914-1af1d12ff5d2/library/a7fdec60-6163-4474-ba7c-2ac317422fce/details?download=true (last accessed on 29.08.2025).