AbstractDecarbonising heating and cooling systems, significant contributors to the EU's (European Union) energy consumption, is a complex and urgent matter. This article discusses the potential coupling of energy communities and district heating and cooling systems, particularly fourth‐ and fifth‐generation models, in the local energy transition. The integration of new‐generation district heating and cooling systems into renewable energy generation is crucial for sustainability, circular economy practices, and community‐based solutions. An examination of the EU legal framework within the Fit‐for‐55 package elucidates how provisions from the new Energy Efficiency Directive and Renewable Energy Directive facilitate the implementation of energy communities in the heating and cooling sector. The existing enabling legislation underscores the suitability of energy communities for heating and cooling sector activities, acknowledging their transformative potential in advancing the energy transition and fostering community empowerment.