This article provides an in-depth review of renewable energy communities (RECs), exploring their concepts, scope, benefits, and key activities. It highlights the shift from centralized to decentralized energy systems, driven by the need for local energy needs satisfaction using renewable resources. RECs play a pivotal role in advancing the transition to zero-carbon emissions, particularly in European countries, where citizen engagement in generating power from renewable sources is prominent. The European Union's focus on social innovation and citizen participation underscores the importance of RECs in its energy strategy. The article discusses the progress made by various countries, with some showing significant advancements while others are in the initial stages. It also addresses the main challenges and potential recommendations to enhance the growth of RECs, emphasizing the importance of citizen involvement and offering insights into various aspects of community energy for sustainable energy transition. The review covers the economic, environmental, and efficiency benefits of using renewable energy sources, filling a gap in research on updated aspects of RECs. The article serves as a valuable resource for policymakers, researchers, industry professionals, and community members interested in promoting sustainable, community-driven energy systems.This article provides an in-depth review of renewable energy communities (RECs), exploring their concepts, scope, benefits, and key activities. It highlights the shift from centralized to decentralized energy systems, driven by the need for local energy needs satisfaction using renewable resources. RECs play a pivotal role in advancing the transition to zero-carbon emissions, particularly in European countries, where citizen engagement in generating power from renewable sources is prominent. The European Union's focus on social innovation and citizen participation underscores the importance of RECs in its energy strategy. The article discusses the progress made by various countries, with some showing significant advancements while others are in the initial stages. It also addresses the main challenges and potential recommendations to enhance the growth of RECs, emphasizing the importance of citizen involvement and offering insights into various aspects of community energy for sustainable energy transition. The review covers the economic, environmental, and efficiency benefits of using renewable energy sources, filling a gap in research on updated aspects of RECs. The article serves as a valuable resource for policymakers, researchers, industry professionals, and community members interested in promoting sustainable, community-driven energy systems.