Energy communities (ECs) are considered important in transitioning the energy system. They are of particular interest due to their potential to empower citizens and support a more just energy transition. However, experiences from ECs remain limited and vary across countries, thus raising questions on potential future advancements. In this article, we explore experiences from ECs in several European countries to inspire discussions on further evolvement and improvements. Insights into lessons learned and key challenges within the selected countries have been collected and analysed, and recommendations for advancing these efforts are provided to policy makers. The results indicate that ECs are making progress in producing and sharing renewable energy while supporting a more just energy transition by engaging a variety of actors within local communities. The challenges, however, often stem from limited national support and difficulties in fully achieving diversity within engaged local communities. The recommendations stress the importance of building on early learnings in community energy and further strengthening local anchoring to achieve a just transition. This in turn, generates fertile ground for discussions on how to localize energy policy and reinforce a multi-level policy approach beyond the European and national levels.