Collective Energy Districts for the Future of sustainable and integrated urban energy systems
Due to rapid population growth, Utrecht faces high housing demand, however 90% of new urban development projects are negatively impacted by electricity grid congestion. Rise in demand for renewable energy, electric vehicles (EVs) and heat pumps is expected to further increase strain on the grid. The CED for the Future project pilots a Collective Energy District in Merwede, where a public-private-civic energy community reduces peak load by 35% via a Collective Energy Transport Contract, an integrated energy system with thermal, battery, and vehicle-to-grid (V2G) storage, as well as citizen incentives. This model fosters community responsibility and engagement for a more sustainable local energy system.
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The City of Utrecht’s rapid population growth and increasing demand for renewable energy are exacerbating electricity grid congestion, delaying 90% of housing projects and hindering both urban development and the city’s decarbonisation goals. Utrecht’s population is expected to grow by 20% from 375,000 inhabitants in 2025 to 450,000 by 2040. The number of electric vehicles is expected to increase from 10,000 in 2024 to 120,000 in 2040 impacting the grid, and photovoltaic (PV) generation is forecasted to increase from 144 GWh in 2022 to 288 GWh in 2030, underscoring the need for better flexibility management.
To overcome the challenge of grid congestion, the CED for the Future project pilots the Collective Energy District approach in Merwede, a new inner-city urban development project, in which all users at district level cooperate to collectively decrease peak energy demand, increase renewable energy integration and reduce grid congestion.
This first-of-its-kind energy management model combines: 1) a governance innovation with a Collective Energy Community managing a Collective Energy Transport Contract aimed at collectively reducing peak loads (targeting a 35% reduction); 2) an integrated energy system, including Vehicle-to-Grid, thermal and battery storage and a collective Energy Management System; and 3) a users’ incentivisation programme to foster energy-efficient behaviour.
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The European Urban Initiative is an essential tool of the urban dimension of Cohesion Policy for the 2021-2027 programming period. The initiative established by the European Union supports cities of all sizes, to build their capacity and knowledge, to support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance.
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