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Energy is a key driver of all modern economies. Sustainable development is playing an increasingly important role both at regional and local levels. It is a compromise between social and economic needs and the preservation of nature. In the policy of the European Union, the idea of sustainable development and environmental protection is of decisive importance for the implemented programs and economic activities. Contemporary challenges require the transformation of the energy market towards greater use of renewable sources. According to Directive 2009/28/EC of the European Parliament and European Council on promoting energy from renewable sources, Poland has committed itself to achieving a 23% share of renewable energy in gross final energy consumption by 2030. This goal considers total energy consumption in terms of power, engineering, heating, refrigeration, and transport. The aim of this paper was, firstly, an analysis of the share of renewable energy in the European Union over an 18-year period (2004–2021), with particular emphasis on the position of Poland. The second objective was the analysis of renewable energy at the local level in Poland, i.e., at the local government unit (LAU) level. Changes in the share of renewable energy in Poland compared to other European countries were also examined. The study utilized functional analysis of principal components and cluster analysis based on the data from the Central Statistical Office and EUROSTAT. The study found that while Poland does not differ significantly from other countries in using renewable energy, it does fall below the European average. Principal component analysis suggests that Poland responds adequately to European changes in the share of renewable energy in total energy consumption. This dynamic is stable (over 95% explained by the first component) and applies to most countries surveyed. In addition, the authors sought to answer questions relating to the current status of renewable energy sources in Poland, the barriers and challenges facing the introduction of renewable energy in the country, a comparative analysis of Poland's progress in renewable energy with other global counterparts, and an exploration of the future prospects and potential for the development of renewable energy in Poland. The study found that the potential for renewable energy is greatest in the northern areas of Poland, with photovoltaics and wind power plants providing the greatest capacity. Poland's renewable energy potential is very high and will be determined by technological development, political, economic, and social issues. [ABSTRACT FROM AUTHOR]