The article describes the role of energy in the development of the “green” economy of the Republic of Karelia with relation to renewable energy sources, development of energy saving and increase of energy efficiency. Karelia has a great potential in the field of certain alternative energy sources, however nowadays it is appropriate to use them only for the power supply of small decentralized consumers. Some results of reducing energy intensity of the economy have been achieved in the region, but the level of energy saving in the region is not sufficient. Greater use of “green” energy sources and energy efficient technologies is possible in the long term, when there is a real need to diversify the region’s sources of energy supply.