A critical step toward energy transition and the decarbonization of the built environment lies in defining and characterizing Positive Energy Districts (PEDs). The multidisciplinary nature of PEDs, rooted in sustainability principles and urban planning frameworks, underscores the need to integrate diverse systems and infrastructures, while adopting a holistic and comprehensive approach to address all aspects of PED implementation. This study employs Multi-Attribute Decision Making (MADM) model to compile, integrate, and evaluate the key indicators and factors essential for identifying neighborhoods suitable for transformation into Positive Energy Districts. The University of Palermo was chosen to validate the developed KPI framework and provide input for the MADM model to generate renovation scenarios. The MADM model was used to evaluate and rank alternatives, with two simulations confirming its effectiveness. Consequently, Car Parking with Photovoltaic Roof and Roof-mounted Photovoltaics ranked among the top scenarios.