Local government units in the face of energy transformation 16 February 2023 8th European Congress of Local Governments Expert features The energy sector in Poland is going through the expected and necessary transformation. Local governments face the huge challenge and pressure to implement immediate organizational and investment activities related to local production, management and balancing of energy from RES. The amendment to the Act on Renewable Energy Sources, the implementation of the RED II Directive and the development of energy communities meet the needs of local government units. As part of the applicable regulations on maximum energy prices, local governments have been granted “protection” for the current year. It means that this is the time when local government units must independently find solutions to reduce energy costs. So far, these solutions have been based on individual price negotiations, participation in purchasing groups and improving energy efficiency in public administration buildings. However, last year showed that these actions are not enough for local governments to survive the current energy crisis. In the coming years, we can expect further increases in electricity prices, mainly produced from fossil fuels. The direction of the climate policy adopted by the European Union and the prices of raw materials force investments in the development of renewable energy sources. A necessary condition for achieving energy security, i.e. to have the real impact on energy prices is to create energy communities by local governments. Energy clusters and energy cooperatives established by local government units are the first step to solving problems related to high energy prices and the share of renewable sources in the total energy mix. The involvement of municipalities, residents and local entrepreneurs in energy communities, allow to use the best possible organizational and investment potential. In the long run, this will result in lower electricity costs and a measurable ecological effect. Investments of local governments will also allow to achieve the independence and energy self-sufficiency through the local energy balancing.