Public participation and citizen engagement in the decision-making processes in urban and spatial planning have become natural part of the planning process and significantly affects its outcome. The emphasis on energy transformation of our cities opens new fields of citizen engagement regarding the large city energy projects, as well as the smaller energy transformation project on individual level. Current debate about the climate change and the overall raising of general awareness of the individual energy consumption and environmental footprint may become the driving force regarding the motivation of citizens to be engaged and involved in cities energy projects or to reconsider their own behavioural patterns related to the sustainable energy. While the cities are able to implement such strategies related to the city owned properties, there is an urgent need to properly address the individual property owners and to try to include them in the planning processes, and thus to assure better acceptance of the energy strategies. Mutual consensus and effective collaboration of all the participating actors is an underlying assumption for successful energy management in any given city. Therefore, the focus of this paper is to provide literature review of the citizen engagement regarding the city energy project, it's possible threats and benefits and rising challenges for the planning process as a whole. The paper is summarising experiences derived in Horizon 2020 project Making City focused on promote Positive Energy District (PED) planning and methodology aiming at development of new integrated strategies to address the urban energy system transformation towards low carbon cities, with the PED approach as the core of the urban energy transition pathway.

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