Viladecans, Spain: Advancing climate neutrality through local energy governance
Viladecans, a city of approximately 67,000 inhabitants in Catalonia, has committed to achieving climate neutrality by 2030. This ambitious goal involves drastically reducing CO2 emissions, above the 55% EU target, and increasing carbon capture by expanding urban green infrastructure. In the long term, Viladecans aims to achieve CO2-negative emissions by 2050. This commitment is part of the ‘Viladecans Climate Pact,’ a citywide initiative engaging citizens, businesses, and local organisations in concrete actions to address the climate emergency.
To support this transition, Viladecans is expanding its green infrastructure, aiming to plant 30,000 trees by 2030, and has introduced a Low Emission Zone (LEZ) in 2024 to reduce vehicle pollution. A key pillar of this strategy is the Vilawatt project, which strengthens local energy governance by promoting renewable energy, energy-efficient building renovations, and a local energy currency, empowering citizens to drive the energy transition.
The Vilawatt currency is a local digital currency that reinforces Viladecans’ energy transition by encouraging sustainable spending and strengthening the local economy. Managed through a regulated digital bank, it maintains a 1:1 value with the Euro and operates via an online platform. The currency supports businesses that meet sustainability criteria and promotes community participation in the city’s climate goals. Future developments include expanding its use and integrating blockchain technology to enhance security and functionality.
Between 2005 and 2015, Viladecans successfully reduced CO₂ emissions by 22%, demonstrating its ongoing commitment to sustainability and the energy transition. During the development of the project, Vilawatt has become the municipal strategy for implementing the new renewable and decarbonised energy model.
Deep-dive: Vilawatt project, Viladecans (2017-2020)
The Vilawatt project was launched under the Urban Innovative Actions (UIA) programme, an EU initiative funding 18 selected projects from 378 applications to pioneer urban solutions. Vilawatt sought to create a public-private-citizen energy governance model, supporting four key objectives:
- Renewable energy supply: Promoting collective energy purchasing and encouraging the adoption of renewable energy sources.
- Energy-efficient building rehabilitation: Retrofitting residential buildings and commercial spaces by improving insulation and energy use efficiency.
- Development of a local energy currency: Encouraging sustainable consumer behaviours by linking transactions to energy savings.
- Training and citizen empowerment: Creation of learning spaces to improve energy awareness in the community and energy training to recruit workers into new sectors of the carbon-free energy system.
The project was financed with €4.2 million from the EU and an additional €1.1 million from the Viladecans City Council, with implementation spanning from March 2017 to October 2020.
Since its launch, the Vilawatt project has driven significant progress in energy efficiency and citizen engagement. While the UIA phase ended in 2020, the initiative continues to be active through its integration in local policies and governance structures. So far, it has enabled the renovation of 51 residential buildings and 3 commercial spaces, improving insulation and reducing energy demand. The Vilawatt local currency has grown from 404 users and 77 businesses to be used by around 4,800 families and 395 businesses by late 2024, with an estimated €1,500,000 in transactions. Meanwhile, the Vilawatt Energy Advisory Office continues to support collective energy purchasing and helps citizens and businesses optimise their energy use, to implement photovoltaic systems for self-consumption, to process social energy vouchers, linked to energy poverty and social vulnerability, and to reinforce the new energy culture.
What were the key drivers of an effective implementation?
- Policy alignment: Building on EU and local commitments like the Covenant of Mayors, facilitated funding and strategic political backing.
- Community and business involvement: The creation of a public-private-citizen consortium, the Vilawatt Consortium, with citizens making up 20% of its composition, enabled a participatory energy governance model that directly addressed community needs.
- Public engagement and citizen participation: Training programmes, school initiatives, and community learning spaces built awareness and fostered widespread support.
- Economic benefits: The Vilawatt currency boosted local businesses and incentivised sustainable consumption. In addition, energy bill savings are being generated for citizens (renovations, energy consulting, efficiency measures, and photovoltaic installations) and local governments.
- Integration with broader climate goals: The project influenced broader urban policies on energy efficiency and conservation, renewable energy, low-carbon mobility, and naturalisation.
What challenges and barriers did the project encounter?
- Legal and regulatory challenges: National laws restricted the creation of a publicly operated energy provider - a key initial goal-favouring private sector involvement.
- Financial constraints: The continuity of building rehabilitation projects is costly; their continuity remains a challenge due to funding limitations. Future efforts have shifted toward facilitating access to third-party funding rather than direct public investment.
- Pandemic impact: The pandemic affected the building renovation process, due to the difficulties of coordinating the work with the mandatory lockdown, as well as the initial adoption of the Vilawatt currency.
- Sustained engagement challenges: Low awareness of energy transition benefits initially limited public participation. Retaining local business involvement remains difficult due to the lack of direct financial incentives.
Lessons Learned
- Maintaining community engagement is key: Participation from citizens and businesses fluctuates depending on the energy prices; sustained engagement requires tailored outreach and incentives.
- Strong governance drives impact: The cross-departmental governance model, with the transversal participation of all the municipal areas, developed for Vilawatt, is now formalised as Viladecans’ Innovation Model, and it replicated across municipal projects.
- Success beyond financial returns: The greatest success has been improving citizens' quality of life and beginning the process of raising energy and environmental awareness, as well as introducing the need for citizen involvement in combatting the climate emergency.
Factors for Replication and Upscaling
- Governance model: The public-private-citizen approach to energy management can be adapted in cities aiming for decentralised energy systems.
- Energy education and awareness: Establishing advisory offices and training programmes helps engage citizens and businesses in energy savings.
- Energy-efficient retrofitting programmes: Expanding building renovation initiatives is key to reducing urban energy demand. In Mediterranean cities, the focus should be on cooling, while Nordic cities need to prioritise heating system transitions.
- Localised energy currencies: Incentive-based financial models can promote sustainable energy behaviours but may face challenges due to local economic, legal and social factors.
In March 2021, Vilawatt was recognised as a good practice and selected for upscaling in Trikala (Greece), Seraing (Belgium), and Nagykanizsa (Hungary). The ongoing initiative is driven by the URBACT Transfer Mechanism.
As Vilawatt continues to scale across Spain and Europe, it serves as a replicable model for cities seeking to enhance local energy sovereignty and accelerate the energy transition.