Governments have shown that they have no solution to offer. The unstable policy has led to a current bottom‐up approach by the municipalities and other local stakeholders, to take the initiative in generation of renewable energy. However, little research is executed is this new dimension of the energy sector. This thesis focuses on benchmarking the new Local Energy Companies in DEA and analyzing these businesses on three aspects; organisational, techno-economic and financial. The results are a set of rules for establishing new local initiatives who are utilizing renewable energy. Overall conclusion is for the first time a DEA benchmarking model is set up for this kind of businesses in the Netherlands, there is much to learn and improve from each other. Identifying a “best practice” is difficult in the first measurement, since none of the DMUs had all efficiency scores equal to one.