Summary: To move to more environmentally and people friendly city environment with increasing awareness of circular economy innovations are needed for circular economy approach. City environment can be characterized as high intensity and high population density area, while need to balance technical and industrial aspects of city need to be mapped to environmental and life quality aspects. Planning and governance have to include both infrastructure of city services aspects with overall need of service while maintaining them accessible and economically feasible for households. Research also analyzing possible option and criteria for moving from centralized city infrastructure to decentralized generation modes as innovation of decentralized energy generation is become more convenient implement as renewable energy generation source.