Specific strategies for the energy sector should be a central part of a sustainable mountain policy. However, there is a lack of research on the energy issues of mountainous areas and specialized energy policy measures cannot be effectively supported. The determination of the energy demand in mountainous areas, which is an essential step in the direction of developing mountain energy policy, is analyzed in this paper. Greece has been selected as a case study. The results show that altitude is the decisive factor affecting degree-days and energy needs, within the geographical range of Greece. It is proved that the thermal, as well as the total energy demand are significantly increased in mountain settlements. The annual energy expenditure of a typical residence lying at an altitude of 1000 m proved to be 85% higher than the corresponding cost at sea level. This makes mountainous populations vulnerable to energy poverty. It is also proved that the subsidy policy for heating oil, in Greece, cannot alleviate energy poverty. The results of the present study can be utilized in the direction of re-designing the present policy and this is a completely necessary step for creating a sustainable policy for mountainous areas, in general. (C) 2014 Elsevier Ltd. All rights reserved.