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For understanding and navigating the legal frameworks that govern the creation, operation, and dissolution of ECs in Europe. This includes both regional (EU) regulations and national laws specific to each country.

Legal
Legislative Decree 8 November 2021, No. 199 — Implementation of Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources.

<p>This decree transposes the European RED II directive into Italian law. It defines the framework for renewable energy communities (REC) and collective self-consumption groups. It clarifies who can participate, how energy sharing works, and sets general principles for incentives.</p>

Link to article:

https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:2021-11-08;199!vig=

Renewable Energy Communities ; Collective Self-Consumption ; RED II ; DLgs 199/2021 ; energy sharing ; incentives ; governance.

Date: 24/02/2026

Limits on geographical proximity for REC members and electricity sharing eligibility (Legislative Decree 199/2021 Art. 42)

<p>Distance constraints establish that members of a Renewable Energy Community (REC) must be geographically close to each other, typically within the same low-voltage (LV) or medium-voltage (MV) grid area. This ensures that shared electricity is efficiently distributed and legally recognized for community benefits and incentive eligibility. The exact distance may vary depending on the distribution network and regional regulations.</p>

Link to article:

https://www.normattiva.it/uri-res/N2Ls?urn:nir:stato:decreto.legislativo:2021;199

Distance constraints ; geographical proximity ; Renewable Energy Community ; Legislative Decree 199/2021 ; RED II ; energy sharing ; LV/MV grid ; Italy

Date: 24/02/2026

Maximum installed capacity per REC or per individual system (DM 16-03-2025 Art. 3)

<p>The installed capacity constraint limits the maximum power output of renewable energy installations within a REC to 1 megawatt (MW) per system. This cap ensures that projects remain small-scale and community-focused, aligning with the objectives of the RED II directive and Italian energy policy. The 1 MW limit applies to each individual installation or to the total capacity of a REC, depending on the specific configuration and participation model.</p>

Link to article:

https://www.mase.gov.it/portale/documents/d/guest/20250715_allegato_1_ro_cacer_rev2dggefim_clean_final-pdf

Installed capacity ; 1 MW limit ; Renewable Energy Community ; Decreto Ministeriale 16 maggio 2025 ; RED II ; energy policy ; Italy

Date: 24/02/2026

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