A study in a small city in Portugal was conducted to improve the understanding of the role of wood energy in the residential energy services in small cities in Europe, the factors affecting the use of wood consumption in households, and how changes in consumption drivers affect forest resources. The hypothesis that small cities in Europe have wood energy consumption much larger than expected was analysed based on survey data collection. Drivers were analysed through statistical modelling. Wood, used in 42% of households, represented 43% of the city's final energy consumption. The probability of wood energy use depended of resident's age, construction type, area and year. The amount of wood used was explained by resident's education, construction type and age, and energy function. Changes in drivers suggest a decrease in wood demand in the near future although new energy products and changes in energy use can balance this trend.