Cities as drivers of economic development must be prepared to solve urban challenges in order to ensure smart and sustainable growth. Cities represent a large concentration of consumers, workers and businesses and have the potential to provide positive social benefits and increase yields. At the same time, energy consumption in urban areas is responsible for much of CO2 emissions. Given the population density, cities are a great potential for energy savings and a shift towards a CO2 neutral economy. Promoting green, compact and energy efficient cities is the backbone of green growth. The aim of the paper is to highlight the role of energy cities in the future and to analyze systematic energy management in the cities of the Republic of Croatia. It is concluded that a sustainable energy city implies a comprehensive approach to environmental protection and energy, in which many components of the natural ecosystem are intertwined with those from the social, economic, cultural and political urban system into a single system. A successful, competitive, dynamic and eco-friendly city can play an important role in the well-being of not only its residents and surrounding settlements but also the overall economic development of the country in which it is located. Its influence is necessary to avoid rural depopulation and to promote balanced and sustainable economic development.