In this study, the consequences of global population growth and increasing energy demand were investigated, highlighting the importance of sustainable development and the use of renewable energy. Given the challenges in providing sustainable energy, this study examined the energy situation in Iran and the rising intensity of energy consumption in the country. Additionally, the environmental and economic effects of carbon dioxide emissions were analyzed, emphasizing the need to modify energy consumption patterns across various sectors. Finally, this article explored the feasibility of distributed production of electricity and heat from renewable energies, specifically geothermal and biomass, on a local scale in Iranian cities, examining the benefits and challenges of utilizing these resources.