As a clean energy hub with abundant hydro, wind, solar, and biomass resources, and serving as an ecological shield in Southwest China, Yunnan Province holds strategic importance in regional energy system transformation toward carbon neutrality. However, it currently confronts challenges such as disruptions to power supply−demand balance, resource development bottlenecks, and heightened environmental constraints, highlighting the need to balance growth with sustainability. This study reviews Yunnan’s energy resource potential, spatial-temporal characteristics, development constraints, as well as recent advances in implementation approaches and innovation deployment. A hydropower-centered, multi-energy complementary system emerges as a key pathway for Yunnan’s energy transition. By fostering positive economic and environmental synergies through multi-energy integration, technological innovation, and ecological conservation, the “Yunnan approach” may offer a valuable case example for regional low-carbon transformation.