The challenge to ensure a safe, secure and affordable flow of energy to homes and businesses continues to dominate debate in Europe. Half of all our energy needs are met from imports – an industry worth €1bn every day.
Price hikes continue to outstrip household income and it is now estimated that many as 150 million citizens suffer from energy poverty. Nevertheless, Europe 2020 demonstrated that there is a broad consensus that if we are to compete on the global market and tackle climate change, creating a resource efficient economy must be based on a sustainable approach to energy. Given that nearly 70 per cent of citizens live in urban areas in Europe today, cities are increasingly viewed as the catalyst that can spark innovation and help us move to a more sustainable future.
Giving Europe the competitive edge means investing in new technologies locally. This was why the EU allocated €6.5bn to the Horizon 2020 programme offering financial support to innovation and research with the sole intention of delivering 'secure, clean and efficient energy' between 2014-2020.
Cities are taking up the challenge and finding novel ways to make their communities more energy efficient. Micro-generation, for example, has become a growth market allowing individuals, businesses and communities to take advantage of technology to exploit small-scale energy sources. In Birmingham – the UK's second largest city – the drive to a low-carbon economy has looked to photovoltaic, solar thermal and energy efficiency technologies. City initiatives – such as Birmingham energy savers which is investing €123m to refurbish 15,000 homes with energy efficiency measures – have been complemented by large scale European funded projects worth €45m which will support the development of smart grid technology linked to small scale generation.
"Through the introduction of energy efficient design and the expansion of renewables, Lehen in Salzburg has also seen a saving of 40 per cent of energy per year through a solar thermal system and solar energy"
Smart grids are part of the solution in helping empower consumers, drive competition and create a "more integrated, competitive and flexible" energy market. They offer endless possibilities to improve the integration of renewable energy, promote electric vehicles and deliver power through consumer controlled technology. A commission report identified 281 smart grid projects taking place across the EU, Croatia, Switzerland and Norway with investment totalling €1.8bn using a mix of EU, national government and private investment.
In the French cities of Grenoble and Lyon, €40m has been invested in smart grids. Two technological platforms are being developed across both cities, covering 1000 residents and 40 businesses and demonstrating just how partnerships between private companies and local authorities is driving innovation.
The ring-fencing of five per cent of European regional development funds in the 2014-2020 multiannual financial framework for urban sustainable development is a step in the right direction. It reflects a clear acknowledgement that making this seismic shift towards a resource efficient economy must be driven through our cities. Collaboration and partnership with local authorities is cutting emissions and contributing to the energy efficiency agenda. Through the EU-backed green solar cities project, Copenhagen and Salzburg collaborated closely to improve building energy performance and use local renewable energy.
Copenhagen – the winner of the European green capital award in 2014 and which has its sights on becoming CO2 neutral by 2025 – aimed to supply 15 per cent of all electricity in the Valby area using renewable energy before expanding the scheme to cover the entire city. Through the introduction of energy efficient design and the expansion of renewables, Lehen in Salzburg has also seen a saving of 40 per cent of energy per year through a solar thermal system and solar energy.
With the general austerity policy drive of many of Europe's governments imposed by the economic and financial crisis, EU funding and support offers local and regional governments the much needed stimulus to promote energy efficiency and renewable energy in our cities.
"Sub-national governments should be given greater freedom to decide how to use EU investment"
The covenant of mayors, which voluntarily commits local and regional authorities to meeting and exceeding the EU's 20 per cent CO2 reduction objective by 2020, has attracted over 5000 signatories, showing the level of ambition found locally. But the urgency to liberalise Europe's energy market is being restricted by a lack of flexibility and decision making at national level. Sub-national governments should be given greater freedom to decide how to use EU investment.
Europe's cities are taking the lead, but without more coordination between all levels of government and a renewed commitment towards renewable energy, we will continue to struggle with our overreliance on costly imported energy.