infinitesolutions: financing energy transition in cities

Águeda, Portugal

Águeda set up a local Fund for Energy and Water Efficiency

Known for its colourful streets, the small Portuguese town of Águeda undertakes a number of actions from environmental education to technological innovation and energy efficiency with the objective to become the first ‘Smart City’ in the country. It does not lag behind the front-runner European cities when it comes to innovative financing either. The municipality has just created a local Fund for Energy and Water Efficiency based on the model used by the city of Stuttgart (Germany).

In the framework of the Covenant of Mayors, Águeda developed a Sustainable Energy Action Plan (SEAP) aiming at improving the city’s energy efficiency and autonomy. The focuses on increasing energy efficiency and using renewable energy, intelligent energy management, energy diversification in public transport and the promotion of sustainable mobility, climate change adaptation, prevention and management of climate risks as well as investments in the water and waste sectors.

The SEAP implementation requires considerable funding. The city of Águeda therefore decided to set up a local revolving Fund for Energy and Water Efficiency (FEWE) and a related internal contracting scheme that was already tested by the city of Stuttgart, in Germany.

The municipality implemented the following measures enabling the smooth operation of the fund:

  • Setting up the regulation and operational management procedures of the FEWE which was created with the purpose of financing investments to modernize municipal facilities, public lighting system and increase its energy and water efficiency by reducing the use of electric power, gas and water. All municipal services may present eligible investment proposals.
  • Setting up a “Fund of Energy and Water Efficiency Platform” designed to systematize and provide information on the energy consumption of municipal buildings and facilities.
  • Capacity building of the municipal staff about the fund and its functioning.
  • Launching and testing the FEWE through a pilot project consisting of a set of energy audits in various municipal buildings (municipal indoor pool, youth forum, municipal library, municipal stadium and one elementary school).

Regarding the standard internal contracting procedures, they are simpler than those used by the city of Stuttgart and adapted to the needs of a small-sized city. These will be based on simple e-mail requests from all municipal services to the Environment and Sustainability Department which manages the fund.

The project proposals will be evaluated according to a two-step approach:

  1. The project has to comply with the measures featured in the SEAP (one or more of the identified typologies)
  2. Deeper evaluation will be carried out against the following criteria (weighting factor/score): payback (35%), energy savings (30%), CO2-emission reduction (15%), contribution to the Covenant of Mayors or Mayors Adapt objectives (10%), innovation (10%). Based upon this second stage, the project will get a score. The implementation of the project depends on its score and on the Fund availability.

The municipality does not neglect awareness-raising and education on local energy and climate protection. Agueda carries out a number of actions with schools and citizens aiming at encouraging a more active citizenship.

Useful materials

Águeda at a glance Águeda is a municipality in Portugal with a population of 49,456 inhabitants. It is a Covenant of Mayors signatory aiming at reducing the CO2 emissions on its territory by 33% by 2020.

The municipality is a founding member and a strong supporter of the Lighting Living Lab, with the objective to promote innovation and development of research in new technologies and applications in lighting, with a focus on the concepts of intelligent and eco-sustainable lighting.

Within the development of the project “beAgueda” – electrical bicycle of Águeda for free usage, 10 e-bikes available to the public have already been used by more than 160 users in a total of 4,000 usages. That corresponds to more than 18,000 km within 2 years, avoiding over than 2.5 tons of CO2 emissions. The e-bikes are charged from renewable energy sources. The project was co-financed by the European Regional Development Fund.
Who is implementing the intracting financing scheme in Águeda? Core team
How is the financing scheme implemented? Local Study / Action Plan
Who backs the scheme at the political level? City Council Decision on the establishment of the local Fund for Energy and Water Efficiency / Internal Regulation of the Fund
Local communication / marketing tools for the scheme beneficiaries Águeda’s Fund website
Infinite Solutions Leaflet in Portuguese Infinite Solutions Leaflet in Portuguese

Cidades e Regiões: Acelere a sua transição energética com sistemas de financiamento inovadores!

Download: PDF - 1.7 Mb

More information about Águeda

Financing Energy Transition in Cities

Intelligent Energy Europe
Co-funded by the Intelligent Energy Europe
Programme of the European Union

With the support of ADEME

Caisse des Dépôts
With the support of Caisse des Dépôts

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