This study focuses in briefly analyzing energy policies at the EU level in order to understand the current legal basis at the domestic level, and further elaborates the impact of central-level EE policies in local-level ones. The study mainly aims at assessing the current legal framework on EE, identifying its shortcomings and proposing recommendations that could contribute to the completion of the legal and institutional framework at the local level. Furthermore, the study aims to point out the difficulties and challenges faced by local governments, which have proved to serve as an obstacle in creating functional effective municipal structures that will be decisive for improving energy efficiency, respectively for creation of a sustainable energy system at the domestic level.