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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

ARERA Resolution 727/2022/R/eel — Final regulation of collective self-consumption and renewable energy communities under DLgs 199/2021.

<p>This resolution updates the rules for CERs and collective self-consumption, aligning them with Legislative Decree 199/2021 and expanding the operational framework beyond the pilot phase.. With this measure, the Integrated Text for Diffuse Self-Consumption was also approved. The latter prescribes the different configurations for diffuse self-consumption and the essential points.</p>

Link to article:

https://www.arera.it/fileadmin/allegati/docs/22/727-22.pdf

ARERA 727/2022/R/eel ; final CER rules ; collective self-consumption ; energy sharing ; regulation ; ARERA.

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

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