Abstract First initiatives of energy and climate action at the local level can be tracked back into the 1990s. Nevertheless, only in the last decade integrated local energy planning initiatives have gained greater expression. The new energy paradigm calls for a need to focus on the energy services for which energy is actually demanded and to critically assess the levels of demand and identify the appropriate energy carriers and technologies to satisfy those services. Thus, a holistic perspective to local energy systems is deemed necessary. This paper proposes a decision support methodology for assisting local sustainable energy planning processes, covering the whole energy planning process – from structuring to the choice of the action plan. From the energy model point of view, the focus is on providing an energy services-oriented modelling approach and a technically solid and comprehensive basis for evaluating alternative energy action plans. From the process point of view, since energy planning involves choices regarding the future of the community, the values and preferences of the local actors are included through a multi-criteria evaluation process. The methodology was applied to a practical case in Portugal, demonstrating how it can be made operational.