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This open access Brief investigates the issue of energy transformation in small countries without their own fossil resources. Using Lithuania as a case study, the Brief analyses energy transformation from both a municipal and regional perspective, outlining the reasons for pursuing energy transformation, the main constraints that exist, and proposing practical methodologies for assessing local energy potential. The chapters focus on real-world challenges, including political barriers and competence gaps, while also making concrete policy recommendations and offering models for energy transformation in regional areas. Filling a critical gap in the discourse on municipal energy transformation, this Brief will be of interest to scholars, researchers, and policymakers in the fields of energy policy, regional development, and sustainability as well as professionals in municipal governance, energy sector decision-makers, and private sector stakeholders interested in decentralized energy solutions.