With the European Union's ambitious climate neutrality goals, the idea of transforming urban areas into energy-positive zones seems like a logical step towards a greener, more sustainable future. But are we ready to create positive energy districts? Positive energy districts or neighbourhoods (PEDs) are becoming an increasingly relevant innovative solution for ensuring energy independence and sustainability in urban areas: by using renewable energy sources and smart technologies, they produce more energy than they consume. The European Union's support for PED-related initiatives is reflected in several important directives and support programmes. The potential benefits of PEDs are significant, but several challenges need to be addressed if these projects are to be successful on a larger scale.