This research analyses opportunities and procedures how an energy management system can be implemented in municipalities. The goal of this research is to develop guidelines for energy management system (EnMS) implementation in municipalities according to standard EN ISO 50001:2011 “Energy management systems – Requirements with guidance for use (ISO 50001:2011” [1]. The work is based both on theoretical sources of information and on practical research. The most relevant data of municipalities were considered. Objectives of this work are literature analysis, assessment of the current situation in municipality energy consumption, develop the procedure for implementing EnMS in municipalities, develop guidelines for EnMS implementation and develop policy instrument to stimulate implementation of EnMS in city and regional municipalities in Latvia. This topic is topical at the moment as the goal of Latvia is to increase the renewable energy share of gross final energy consumption to 40% in year 2020, to reach 0.668 million tons of oil equivalent (Mtoe) of energy savings in year 2020 compared to forecasts of year 2007 and limit the country‘s total greenhouse gas emissions in year 2020 so that they do not exceed 12.19 Mtoe [2]. Research showed that implementation of EnMS is an appropriate solution to ensure energy savings. Its implementation pays off already after the first year even in a small municipality with a population of around 6 000. In order to successfully implement EnMS in a municipality, it is necessary to receive support from political parties, involve staff from different departments, the administrative process must be minimized, as well as regular meetings and an information campaign are necessary. A credible indicator was obtained with close correlation by which it is possible to identify potential energy savings from EnMS implementation to municipalities that do not have developed sustainable energy action plans and that do not know their energy consumption. An EnMS implementation procedure was developed based on the data and structure of the municipality of the city of Daugavpils. The management, employee and other involved person responsibilities, as well as an EnMS implementation working group were established, and potential savings from EnMS implementation, work/data/cost flow and energy management funding scheme were estimated. This procedure can also be applied to other municipalities. Based upon the analyzed information and data, guidelines for EnMS in municipalities to facilitate implementation of the system were developed and offered the most appropriate policy instrument in the current situation to encourage municipalities to implement EnMS. This political instrument that is included in the draft law “Energy Efficiency Law” obliges 9 largest cities to implement and certify EnMS according to ISO 50001 standard by 1 July 2016, but the regional municipalities whose territories development level index on 31 December 2015 is greater than 0.5 and population is more than 10 000 on their municipality implement EnMS according to ISO 50001 standard by 1 July 2017. This obligation will give 5.92% or 586 gigawatt-hours (GWh) in the cumulative mandatory national energy savings target in the period from 2014 – 2020 and it will also encourage other municipalities to implement EnMS.