This work is devoted to the error rate and energy-efficiency analysis of regenerative cooperative networks in the presence of multipath fading and spatial correlation. To this end, exact analytic expressions are firstly derived for the symbol-error-rate of M-ary quadrature amplitude modulation in a dual-hop decode-and-forward relay system under spatially correlated Nakagami-m fading channels and maximum ratio combining at the destination. The derived expressions are subsequently employed in quantifying the energy consumption of the considered system, incorporating both transmit energy and the energy consumed by the transceiver circuits. The overall energy consumption is also minimized for certain quality-of-service requirements and it is shown that depending on the degree of spatial correlation, severity of fading, transmission distance, and relay location, a substantial overall energy reduction is sought when compared to conventional direct transmission.