FREDERIKSHAVN,

BACKGROUND INFORMATION

PROJECT TITLE Energibyen (‘Energy City Frederikshavn’) Beneficiary City of Frederikshavn (Kommune Frederikshavn, Rådhus Allé 100, 9900 Frederikshavn, e-mail: [email protected], tel.: +45 9845 6104) Duration of project 10/2007 – 06/2011 (45 months) Member State Denmark, Nordjylland region Geographic size City of Frederikshavn/target area: 23 295 inhabitants (01/2012) Functional urban area (Frederikshavn ): 61 576 inhabitants. As a result of Kommunalreformen (‘The Municipal Reform’ of 2007), Frederikshavn municipality – practically identical with its functional urban area – is the result of a merger between three formerly independent local authorities (city of Frederikshavn, communes of and Sæby). The new municipality covers a large area of 642 km² and has a population of 61 576 (2011). Funding Total budget: 4 960 000 DKK (approx. €666 730) 50% ERDF and 50% local (national) financing: 2 480 000 DKK (€333 365) each. Operational ‘Innovation and Knowledge’. National Operational Programme for the European Programme Regional Development Fund (ERDF) in Denmark 2007-2013: Regional competitiveness and employment. Operationelt program 'Innovation og viden'. Program inden for rammerne af målet regional konkurrenceevne og beskæftigelse, som samfinansieres af Den Europæiske Fond for Regionaludvikling 2007-2013. CCI no : 2007DK162PO001 Number of decision : C(2007)3360 Final approval date : 2007-07-06 Managing Authority The managing authority for the ERDF is: The Danish Enterprise and Construction Authority Vejlsøvej 29, DK-8600 , Denmark Tel.: +45 35 46 60 00, fax: +45 35 46 64 01, e-mail: [email protected] The Danish Enterprise and Construction Authority is also the managing authority for the European Social Fund (ESF). Cohesion Policy egional competitiveness and employment Objective: Main reason for The ERDF investment is used for a demonstration and visualisation project Highlighting this which helps to create, develop and enhance synergies between the various case renewable energy technologies. It focuses on a new modelling tool (interactive 3D-model, scenario planning), which forms the basis for further investment, estimated to reach up to €260m. The ERDF project helped to kick-start the wider Energibyen initiative in 2007/8. Once in full operation, the ‘Frederikshavn approach’ could serve as a blueprint for other small and medium-sized cities striving for new energy supply models and green, low-carbon growth. Also, the virtual modelling tool (developed in co- operation with university) could be adapted to other environments and locations. Key contact person Mr Poul Rask, Project Manager, Energy City Frederikshavn, Tel. +45 9845 9023, [email protected] Keywords/Tags Renewable energies, energy efficiency

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1. PROJECT DESCRIPTION

Overall objective / In 2006, the North Danish city of Frederikshavn took the decision to become the goals first European city relying solely on renewable energy sources by 2015. The pioneering Energibyen initiative (Danish for ‘Energy City’), aims to create a 100% renewable energy system – rather than using only one single renewable energy source. The impact in terms of green growth is expected to greatly enhance the city’s economic attractiveness and development. Description of As part of the Energibyen initiative, a new digital modelling and visualisation tool activities has been developed to handle the complexity of such a 100% renewable energy system. The development of the tool was cofinanced by the ERDF and forms the basis for strategic investment and scenario planning for the city’s new energy supply and consumption model. The ERDF project is limited to the city area of Frederikshavn and consists of two interconnected parts:  Interactive 3D model and energy planning tool. The web-based instrument provides a visual representation of the city’s energy supply and demand. By changing predefined parameters (e.g. number of wind turbines or photovoltaic cells), the changes in the energy system can be visualised, according to yearly supply and demand patterns (e.g. higher energy demand due to heating in winter, lower energy supply from wind turbines in summer due to there being less wind). The tool is based on an energy systems analysis and a basis scenario developed by . It plays an important role in energy planning, as well as in communicating and demonstrating possible changes/scenarios to stakeholders and citizens (e.g. ‘what difference does it make to the overall system if we build three more off-shore wind turbines?’). The tool can be accessed on the web at: http://tomcat.3dgi.dk/apps/ecity/EnergyCityFrederikshavn-Fixed4Win.jnlp  Scenario planning. Regularly updated energy scenario plans form another important basis for the implementation of the Energibyen initiative. Developed by Aalborg University, in close cooperation with local utility companies and Frederikshavn authorities, the so-call ‘scenario plans’ include detailed analyses of energy supply and demand and their potential development over time. The scenarios are based on several principles, including the use of existing technology and infrastructure and the availability of local resources. The scenarios demonstrate what can/should be done to achieve an annually balanced, 100% renewable energy (RE) based system. Other activities within the Energibyen initiative A wide range of other public and private projects, which form part of the Energibyen initiative, are based on these scenarios. They range from off-shore wind farms and photovoltaic installations to buses fuelled by bio-gas. Project examples include:  Retrofitting and renovation of Frederikshavn City Hall: In 2009/10, the Frederikshavn City Hall was thoroughly renovated. The building now meets energy class 2 demand (according to Danish legislation), which corresponds to an annual energy consumption of 70 kWh/m2. Green energy solutions include 150 m2 of solar cells (producing electricity), 400 m2 of solar collectors (producing energy for cooling, hot water and heating) and stricter requirements for lighting, ventilation and cooling (automatically controlled). The refurbishment transformed the 1970s office complex into a state-of-the-art, highly energy-efficient building, which now acts as a visible symbol for the city’s commitment to renewable energy. The building’s CO2 emissions could be reduced by over 60%.

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district heating: The privately-run Strandby Heating Plant opened in 2008. It comprises an entirely new solar heating system, which covers an area of 8 000 square metres and meets the heating demand of 190 households. The annual CO2 saving comes to around 1 500 tonnes.  Construction of six new off-shore wind turbines: DONG Energy, a private energy provider, will begin building six new off-shore windmills in 2012. The wind turbines will be used both for research and for electricity production, and will be located approximately four kilometres east of Frederikshavn, in the sea passage. The new turbines will complement four existing wind turbines but will be taller, reaching a height of 85 to 115 m – and calculations show that they will be able to produce significantly more electricity than conventional turbines; the wing tips will reach 150 to 200 m above sea level. ‘Soft projects’ In addition to large-scale investment projects, the Energibyen secretariat puts special emphasis on civic dialogue, immaterial or soft support and guidance for local communities wishing to invest in renewable energy sources. Actions include:  Networking amongst stakeholders and facilitating stakeholder dialogue; supporting potential investors in setting up projects (e.g. Crestwing, a business being promoted by a local investor and engineer, aimed at developing a new wave-energy based electricity model);  Providing expertise and guidance for property owners wishing to improve the energy efficiency of existing private and public buildings;  Training local businesses and craftsmen in state-of-the-art techniques in construction and energy circuits (esp. heating systems with multiple energy sources) (implemented with a local technical college);  Raising awareness of energy measures in local communities through regular information (including people-to-people action), publications and public events (implemented by the Energibyen secretariat). The entire initiative, including its ERDF part, is managed by the Energibyen secretariat, which acts as a facilitator and communicator. A full list of projects is available at: http://www.energycity.dk/en/projects/ Recipients The Energibyen secretariat (management team), Frederikshavn municipality, (potential) investors, energy providers (utility companies), and energy consumers (local businesses and residents). Mainstreaming of Gender equality and non-discrimination issues have not been explicitly gender equality and addressed in the project application and reports. The ERDF project refers to non-discrimination local communities and policy-makers in general as target groups, without making any gender or ethnic differentiation. If not positive, the project can be classified as ‘neutral’ vis-à-vis gender mainstreaming and non-discrimination objectives. Intended outputs The ERDF project had the following intended results: and results  Creating an interactive, web-based tool to visualise energy system planning and to communicate potential changes to stakeholders and the wider public;  Developing energy scenarios for the Energibyen initiative, as a basis for project planning and implementation, including regular updates. The wider Energibyen initiative intends to transform the target area into Europe’s first city to rely 100% on renewable energies by 2015. Energy related projects are also expected to have a significant impact on economic growth and job creation. The retro-fitting of buildings alone is expected to absorb 300 to 400 man-years by 2015. The economic or employment impact has not been quantified.

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2. POLITICAL AND STRATEGIC CONTEXT

National and Denmark’s National Strategic Reference Framework for 2007-2013 emphasises regional framework four thematic priorities (‘sources of growth’): development of human resources, for implementing use of new technology, establishment and development of new enterprises, and ERDF funded urban innovation, knowledge sharing and knowledge building. In addition, four development horizontal priorities are listed. These include a territorial dimension (peripheral projects areas, rural areas, towns and cities), equal opportunities, and environmental protection, as well as general employment-related considerations linked to national employment policy. In its single national ERDF operational programme for 2007-2013, Denmark identifies two main thematic issues (‘Innovation and Knowledge’ and ‘More and Better Jobs’), which are both implemented in one priority axis (the programme’s second priority axis covers technical assistance). EU Structural Fund investment is being used to provide an ‘extra input’ into developing the framework conditions for improving the competitiveness of enterprises and enhancing their development opportunities. The programme covers the entire territory of Denmark. The programme has a significant focus on peripheral areas. It also underlines the good economic performance of Danish cities under a number of parameters (employment, GDP, innovation) as a justification for its territorial focus on peripheral regions. However, ERDF investment is not limited to these areas and can also be undertaken in cities. As a town in the northern peripheral region of Nordjylland, Frederikshavn is, therefore, in a position to benefit from ERDF investment. EU and national assistance for Denmark amounts to €509 577 240 for 2007- 2013. Of this, the ERDF operational programme investment is €254 788 620, approx. 90% for Lisbon Agenda (growth and jobs) objectives. The Structural Funds contribution is intended to complement the global Danish growth policy and other national policies, notably the Danish Law on Business Development. According to the programme, EU funds shall be deployed only where there is a lack of national funding, and where EU investment is crucial to improving regional competitiveness. The planning context Frederikshavn is located in southern Scandinavia, with several daily connections to and to . The city’s ports are a strategic gateway from Scandinavia to continental Europe, linking container ships and passenger/car to the E45 motorway. In 2011, more than half of the city’s tax revenue was generated by three of its seven sea ports. Frederikshavn is also home to a large Danish navy base. Apart from shipping, the local economy is based on intensive agricultural production and fishing, but also on industry, services and tourism. Frederiks- havn underwent a significant economic transformation in the 1980s, when the city’s two shipyards closed, leaving around 7 000 workers unemployed. The development of environmentally sustainable businesses and technology has been a strong local focus ever since and has supported the city’s recovery. Today, the shipyards are again in full use, this time for the retro-fitting of ferries and cruise ships. Job creation, especially among younger people, has remained a crucial issue for local authorities. While the share of people over 60 is increasing, younger, often highly qualified people are leaving northern Denmark to look for jobs in the region’s capital Aalborg, or in . Local development plans have, therefore, identified demographic change and the strong outward migration of young people as a key concern. Urban devel- opment plans include actions to reduce and concentrate certain functions (schools, kindergartens). The 2007 reform of local authorities facilitated this process by creating larger municipal entities. As part of Frederikshavn’s business and job creation strategy, the Energibyen

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initiative has a central role in linking infrastructural needs and low-energy standards with new economic and job opportunities. In this respect, the ambitions of the city in the energy sector cover multiple objectives:  Increasing economic opportunities for local businesses, and job creation through energy investment (energy generation, retro-fitting of infrastructures) and training local businesses;  Creating new job opportunities for skilled and qualified workers by attracting energy producers and green tech companies;  Reducing energy costs for local authorities and businesses. Accordingly, the Energibyen initiative is – by its own definition – a business support initiative with positive environmental impacts.

3. IMPLEMENTATION

3.1. PROJECT Project idea DESIGN AND The idea for the Energibyen (‘Energy City’) initiative emerged at a national event PLANNING in 2006, the so-called ‘Energy Camp’, where energy experts from all over Denmark discussed new ways to improve Danish energy policy and technology. One workshop focused on finding a suitable Danish urban area where a 100% transition from fossil fuels to renewable energy could be tested. The experts’ recommendation for Frederikshavn was linked to the city’s manageable size, but also to its natural assets: windy and sunny conditions for wind turbines and photovoltaic installations and nearby agricultural production for biomass resources. In addition, it was argued that Frederikshavn’s strong political commitment to environmental protection would be an asset. The ERDF project was conceived and developed at Aalborg University (idea: Erik Kjems, Jan Kolar, Poul Østergaard; development lead: Jan Kolar, Erik Kjems, Poul Østergaard; authors: Jan Kolar, Wan Wen, Vasu Gowda, Thorkild Sørensen, Peter Skotte, Erik Kjems; deployment: Vasu Gowda) Needs assessment and analysis The need for the project was identified in the initial planning phase for the Energibyen initiative. Participating academics and scientists recommended the setting up of a modelling tool for scenario planning and demonstration. The idea was to create a solid, evidence-based foundation for future activities. The city of Frederikshavn followed this advice and jointly developed a project proposal with Aalborg University. Selection by the Managing Authority The project selection procedure in Denmark is widely decentralised, with six regional growth fora having a central role. 90% of national ERDF resources are allocated to the regional growth fora in accordance with a detailed allocation key (the remaining 10% is allocated competitively). The regional growth fora were established on 1 April 2006, as part of a reform of Danish local government. They represent ‘the regional partnership’, comprising local and regional politicians, representatives of industry, universities and educational institutions, as well as the social partners. According to the operational programme, the regional growth fora are responsible for prioritising the use of resources from both the ERDF and the ESF. Final approval remains in the hands of the national managing authority. In the case of the ERDF co-financed Energibyen project, the proposal was selected by the regional growth forum for the Nordjylland region (on the basis of programme selection criteria) and subsequently forwarded to and recommended for approval by the managing authority. Consideration of risks in the selection process A risk assessment was carried out as part of the project selection process.

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Given the strong political commitment to the project and the mature partnership, including Aalborg University, no potential risks for implementing the foreseen project activities were identified. Consideration of the project’s sustainability, results exploitation and transferability The sustainability of the ERDF project has been taken into account and is guaranteed until 2015 (at least) as the modelling tool has an important function for energy scenario planning. The exploitation and transfer of results was not (originally) foreseen in the project design phase. Consideration of energy efficiency Improving the energy efficiency of public and private buildings is one of the elements in Frederikshavn’s strategy to reach a 100% reliance on renewable energy sources. Within the Energibyen initiative, energy efficiency is targeted in four areas: 1. Demonstrating the positive effects of energy efficiency measures in relation to the refurbishment of public buildings (city hall, police station); 2. Providing expertise and guidance for property owners intending to improve the energy efficiency of existing private and public buildings; 3. Training local businesses and craftsmen in state-of-the-art techniques in construction and energy circuits (implemented by the Energibyen secretariat in collaboration with a local technical college); 4. Raising awareness of energy efficiency measures in local communities through regular information (including people-to-people action), publications and public events. Role of EU support The ERDF project played an important role in kick-starting the Energibyen initiative in 2007/8, and in providing a suitable planning framework for activities. Other funds The project only uses ERDF investment. Further ERDF investment, stemming from European Territorial Cooperation programmes, is used for transnational cooperation and exchanges. These activities are not directly linked to the ERDF project described. Examples of projects include:  Interreg IVC: Sun (phase 1 for 2011 approved; phase 2, which would run up to 2014 is awaiting approval): Promotion of solar energy in Scandinavia;  Interreg IVC: PRINCIP Proactive and integrated climate change in resource planning (awaiting approval);  Interreg IVC: Green Choice: Regional policies and practices for rational energy consumption and public transportation (awaiting approval);  Interreg IVC: BENEFIT: Good practices, methods, systems and resources to improve energy performance and promote energy efficient buildings in Europe (Directive 2002/91/EC) (awaiting approval). 3.2. MANAGEMENT, Selection of project manager MONITORING AND The project manager (for the initiative) was appointed by the city administration. EVALUATION The work on the ERDF project was managed internally by Aalborg University SYSTEM and supervised by the project promoter (city). Management structure The Energibyen initiative is managed by a small team (its secretariat has three employees), which is financed by the city authority. As a (rather) independent part of the administration, it works in close cooperation with municipal

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departments, local stakeholders and businesses, as well as politicians. The secretariat provides (mostly immaterial) support to local businesses and residents and manages, where needed, projects for the city administration. However, their main role is in providing expertise and guidance. For the ERDF project, the Energibyen secretariat acted as the project promoter. Most of the work on the project was contracted to Aalborg University, which took responsibility for creating the 3D modelling tool and for working on energy scenarios. At the university, a team of researchers and academics was assigned to the project. Throughout the implementation period of the ERDF project, an estimated equivalent of two full-time persons worked on the project. However, due to a certain fluctuation of staff and the rather large number of competences (and researchers) required to achieve the project goals, no absolute numbers can be given. Steering groups The Energibyen initiative has a steering group which comprises representatives of the city government, Aalborg University and the Energibyen secretariat. This group assesses the progress of activities and is responsible for future planning. For the ERDF project, no specific steering group had been set up, mainly due to the frequent interaction between the partners. Monitoring The progress of the ERDF project is closely followed by the Energibyen secretariat. Frequent accounting and payments to the university (as a contractor for executing most tasks) ensure close and effective monitoring. Overall, the project itself also includes monitoring of the different energy scenarios (i.e. regularly updated data on energy supply and demand). Evaluation No evaluation of the project and its impact has yet been conducted. There is also no indication of whether a specific ex-post-evaluation of the ERDF project will be conducted. Quantified targets, performance indicators Apart from the target of reaching a 100% reliance on renewables by 2015, there is a notable lack of ex-ante defined, quantitative targets. This concerns both the ERDF project and the wider Energibyen initiative. Overcoming obstacles  Delays linked to the economic and financial crisis of 2008/9: With the economic crisis, interest among private investors fell sharply. The subsequent economic recovery helped in overcoming this problem. The main reason for the fast recovery of the initiative lay in the fact that public and private projects were already well on track by the time the crisis hit Denmark. With the general economic recovery, projects could be quickly brought back on track. Overall, the stable framework of the initiative and the long-term commitment of the city authorities helped to instil confidence in the projects.  A lack of motivation amongst citizens. Owing to a lack of communication efforts in the first years of the initiative, the motivation of citizens to invest in energy saving and retro-fitting was rather low. This was overcome by increased emphasis on communication and information activities by the Energibyen secretariat. Coordination with other EU funds N/A. 3.3 GOVERNANCE: Composition of the partnership PARTNERSHIP, The Energibyen initiative involves a wide range of partners; public authorities, PARTICIPATION

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AND private investors, academics and researchers, as well as local politicians. EMPOWERMENT The ERDF project involved the following range of partners:  Project promoter: Frederikshavn Municipality – Energibyen secretariat.  Project development and implementation: Aalborg University.  Other partners involved: Frederikshavn utility company.

Roles of partners in the ERDF project  Funding providers: Danish ERDF Managing Authority (for EU co- financing), Frederikshavn Municipality (for local cofinancing);  Final beneficiary: Frederikshavn Municipality;  Development/implementation of the system: Aalborg University;  End-user: Frederikshavn Municipality, public and private investors and energy suppliers, local communities and businesses in the area (energy end-users), the wider public;  Academic expertise: Aalborg University;  User-related expertise: Frederikshavn Municipality – Energibyen Secretariat, utility companies;  Inspirational/creative contribution: Aalborg University, Frederikshavn Municipality – Energibyen Secretariat. Involvement of the public The Energibyen initiative puts strong emphasis on communication and dialogue with local communities – from people-to-people, where neighbours can share their experiences, to regular Energibyen publications. One part of the ERDF project explicitly focuses on showing the population the effects of changing energy supply and demand. The 3D model (successfully) attempts to visualise a complex system and lowers barriers for local residents in understanding the bigger picture. Having been established by a ‘top-down’ approach, the project is not based on a participative approach, but tries to achieve one by making complex information understandable to citizens. Role of the city administration The city administration played a central role in implementing and providing cofinancing for the project and the Energibyen initiative. The Energibyen secretariat, with three full-time employees, is part of the city administration. Despite having sub-contracted most work on the ERDF project to Aalborg University, the city also played a crucial role in the design, financing and implementation of the project. Leadership in the process The ERDF project was led by the Energibyen secretariat, with strong ties to Aalborg University, which acted as an implementing body and source of knowledge. Political support The entire Energibyen initiative (and therefore also the ERDF project part) is backed by broad and strong political support. The and all political parties in the municipal/city council support the project. Additional support comes from the national level, where the responsible Danish minister for climate, energy and building, Martin Lidegaard, also supports the Energibyen initiative. Mr Lidegaard was formerly the chairman of an environmental think tank, which was also involved in the initial stages of the initiative. Innovative elements of the partnership The city designed and implemented the ERDF project in very close co-operation with the regional university, which also carried out most of the work. In this way, the city could create a ‘sustainable’ partnership with the university, which

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continues to act as a source of inspiration and as a potential developer of future activities. The support from Aalborg University is, therefore, ensured beyond the duration of the ERDF support. The city also understands that this ‘local partnership’ is essential to keep the expertise and knowledge on energy systems in the region and to stay at the forefront of new developments.

4. INNOVATIVE ELEMENTS AND NOVEL APPROACHES

4.1 INNOVATION Innovative elements in… …Project design, planning and management  Going for a 100% reliance on different renewable energy sources. The initiative’s objective of creating a system of 100% renewable energy sources is new – and has not yet been attempted. Rather than relying on one renewable source, it tries to handle the complexity of different sources and match seasonally changing demand with seasonally changing supply.  Project design and implementation based on a partnership between Aalborg University and the city of Frederikshavn, linking research, development and in situ application (see above).  Scenario planning and demand/supply modelling. The approach of using research-based energy scenarios as a basis for project implementation is a strong point of the initiative. By modelling energy supply and demand in a visually appealing way, possible impacts of projects can be foreseen. Energy systems analysis, a speciality of Aalborg University and the foundation of the modelling tool, provides a means of managing the complexity of different renewable energy sources – some of which are closely influenced by seasons and by the varying availability of local resources.  Local assets as a starting point. The project and its scenarios respect the local territorial assets (e.g. sea, wind, agricultural production, waste). It is also based on using existing technology rather than on assuming big breakthroughs in energy generation and drastic changes in consumption patterns. In doing so, the scenarios and possible actions remain realistic, achievable and tangible. …Communication and dissemination  Visualising change. The 3D modelling tool is unique and represents a real innovation in the field of energy systems analysis. By translating this complex matter into a visually appealing and easy-to-use web application, the project makes an important contribution to improving communication on climate change and energy to stakeholders and the wider public.  Neighbour to neighbour. Within the wider Energibyen initiative, discussion on energy matters in local communities plays an important role. By encouraging property owners who retro-fitted their homes or businesses to share their experience with neighbours, the benefits of energy investment can be successfully communicated. The city’s experience with this approach has been very positive so far (‘People appreciate the real-life experience much more than municipal guidance and information’). …Exploitation of results  Expanding the initiative. The city authorities intend to use the results from the Energibyen initiative over the entire municipal area on a 2020 horizon. Overcoming the current limitation to a defined target area, the results achieved by 2015 could then be used on a broader geographical scale.

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Initiator of new approaches – comparison to previous practices Initiating innovative approaches: The innovative character of the project (and the initiative) is mainly based on research conducted at Aalborg University. It is, however, equally innovative (and courageous) that the city administration picked up this academic idea and turned it into a vision for the city. Comparison to previous practices: In contrast to previous projects, the ERDF project was carried out in close cooperation with Aalborg University, which provided scientific input and academic expertise. Overall, the initiative differs from other initiatives in its approach by creating a complex system relying on several different renewable energy sources – rather than one. 4.3. THEMATIC Europe 2020 sustainable growth FOCUS Climate action is high up on the European Union’s political agenda. The Europe 2020 strategy underlines the need to create a resource-efficient European society. Accordingly, EU policies – including Cohesion Policy – support a shift towards a resource-efficient, low-carbon economy (flagship initiative). The Commission’s Roadmap for a Resource-efficient Europe (Communication adopted on 20 September 2011, COM(2011) 571 final) puts strong emphasis on climate change mitigation and adaptation. Frederikshavn’s Energibyen initiative underlines that local contributions are vital to achieving global goals. It is a local way of encouraging lasting climate and energy improvements – comprising a large number of activities to create a 100% renewable energy based supply system and changing energy demand patterns. Priority is given to large energy infrastructure investment with positive trade-offs for the local economy and labour market, as well as the involvement of local communities and citizens. Overall, the success or failure of climate and energy initiatives will, to a large extent, rest with the individual. It is also the day- to-day decisions of local people that ultimately determine if an initiative will succeed (or not).

5. FUNDING

Total budget 4 960 000 DKK (€666 730) ERDF funding 2 480 000 DKK (€333 365) National funding (local: Frederikshavn Municipality): 2 480 000 DKK (€333 365) Annual allocation Total budget spent in equal yearly tranches between 2007 and 2011 Revenue-generating projects N/A Private sector leverage N/A

6. PROJECT ASSESSMENT

6.1. FINANCIAL Continuity SUSTAINABILITY The ERDF project did not start in a previous funding phase. The modelling tool developed will be used beyond the end of the programming period, especially given the Energibyen initiative’s goal for 2015. Mainstreaming The project did not start as a pilot action or action plan (e.g. URBAN, EQUAL,

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URBACT) before being picked up by a mainstream ERDF (or ESF) programme. Transferability 6.2. The ERDF project has a real potential to be transferred to other cities and TRANSFERABILITY locations. By changing the underlying 3D model and modifying the energy parameters (wind, sun, waste incineration etc.), the tool could easily be used in other European cities. For the wider Energibyen initiative and its target of 100% renewables by 2015, local territorial conditions will be decisive. Frederikshavn was chosen as a location due to its natural assets – strong winds, waste from agricultural production, and comparatively low levels of fuel-based mobility. The city is also comparatively small in size and, therefore, easy to manage. Whether the ‘Frederikshavn approach’ can be deployed in all European cities is doubted. However, it might be a suitable model for small and medium-sized cities with favourable potential for renewable energy generation. Overall, for example, replacing Frederikshavn’s high share of wind energy by solar energy in a southern city would not present a problem, and the 3D model can be calibrated to facilitate this. With several interregional exchange projects on the way, the approach could be well disseminated and transferred to other cities in the future. Lessons for other cities to take away include: (a) the need for a clear vision; (b) strong political commitment; (c) up-front investment in human resources (secretariat); and (d) the availability of suitable natural assets for renewable energy generation. 6.3 ISSUES AND  Economic and financial crisis: For the Energibyen initiative, the economic PROBLEMS crisis of 2008/9 meant a major setback in the investors’ ambitions for new projects. Several projects being led by private investors were put on hold, leaving the initiative’s success in jeopardy. Most incentives and efforts undertaken by the city remained unsuccessful. Only the economic recovery in 2010 helped to change this situation and put projects back on track. Overall, the crisis led to a slight delay in implementation, potentially risking the achievement of the target of 100% renewables by 2015. However, the Energibyen secretariat remains confident that the target can be achieved.  Lack of motivation of local residents: During the early stages of the Energibyen initiative, the lack of enthusiasm of residents for energy changes was reflected in a significant lack of motivation for individual action, especially in terms of improving energy standards in private housing. This problem could be overcome with increased communication and information efforts (see 4.1 on communication and dissemination) and a change of staff. For the ERDF project, no major problems could be identified. 6.4 PROJECT The ERDF project achieved the expected results. The 3D modelling is working OUTPUTS & and publicly accessible; the scenario planning has been carried out as planned. RESULTS As far as the Energibyen initiative is concerned, the project promoter is confident that the 2015 target of a 100% reliance on renewables can be achieved. Despite the set-back during the economic and financial crisis (see above), important projects are well on their way and a timely achievement of targets seems realistic. 7. CONCLUSIONS: KEY SUCCESS FACTORS AND LESSONS LEARNED Overall, the project analysis revealed five key success factors from which other cities could learn and profit: 1. You can start immediately! The Energibyen initiative demonstrates that significant positive changes to local energy systems are possible and realistic. By using existing technology, exploiting territorial assets and encouraging local action, Frederikshavn is very likely to succeed in becoming Europe’s first city to be 100% reliant on renewable energy sources

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by 2015. Drawing on the potential of many different renewable energy sources, rather than being bound to only one, makes the process more complex, but also better balanced in terms of matching seasonally changing supply and demand patterns. 2. It takes local commitment and courage. The entire initiative is based on a scientific model, developed by a university, which is complex, highly technical and far removed from its potential end users. Taking this model, transforming it into a vision, and committing to it, takes strategic thinking and a lot of courage. The city of Frederikshavn demonstrates that a strong local commitment can bring a visionary idea down to the ground – and make it a local asset. Paradoxically, it required not much more than establishing a competent team to run the initiative and some initial investment to attract private investors or to bring public projects on track. In this way, the investment in a three-member team was an excellent investment in the city’s future. 3. Open people’s eyes. To succeed, change needs to be embraced by local communities. This is a widely acknowledged fact, but how to promote public understanding of, and support for, complex matters like renewable energy systems or energy efficiency investment is less straightforward. The Energibyen initiative demonstrates that it can be done – by investing in information and communications, by providing personal guidance for citizens wishing to invest, and by facilitating exchanges between the citizens and neighbours concerned. 4. Visualise change. Ensuring that the complex system of energy supply and demand is transparent and understandable is another strong point of the initiative. The 3D modelling project helped to transform a highly abstract, engineering model into a visually appealing format – giving interested citizens the opportunity to model various parameters and observe the impact – based on ‘real’ starting conditions. This smart way of demonstrating the impact of the initiative also proved valuable in convincing policy-makers and investors to engage in the process. 5. An iterative process is worthwhile. The cooperation between research and public institutions can undoubtedly improve the quality of results: the applicability of scientific research to real-life situations on one hand, and more evidence-based, innovative policy-making on the other. By creating a ‘sustainable’ partnership with Aalborg University through the ERDF project, the city can rely on a competent partner as a source of inspiration, and as a potential developer of future activities. This ‘local partnership’ would also seem to be essential if the city is to retain its expertise and knowledge on energy systems, and stay at the forefront of new developments. As the mayor of Frederikshavn put it: ‘consulting firms come and go – universities stay’.

8. FURTHER INFORMATION

Bibliography Energy city Frederikshavn and projects http://www.energycity.dk/ ‘The Danish model’: http://www.energycity.dk/fundanemt/files/kinapjecetilhjemmeside.pdf Frederikshavn Municipality (ed.): Energy City Frederikshavn. Business Summary – Analysis and plan. October 2008 Crestwing wave energy: http://www.waveenergyfyn.dk/the_crestwing_wave_energy_plant.htm ERDF project 3D modelling tool: http://tomcat.3dgi.dk/G/runECity Aalborg university: http://www.3dgi.dk/projects/energibyen/ Scenario plan (2011):

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http://www.energyplanning.aau.dk/Publications/Frederikshavn_Scenarieplan.pdf (in DK only) Visualisation and system analysis (2010): http://www.energyplanning.aau.dk/Publications/Frederikshavn_Scenarieplan.pdf (in DK only) EU Structural funds and projects in Denmark http://www.deaca.dk/regionaludvikling/0/3 http://www.ebst.dk/file/22379/Programme_for_the_Regional_Fund_in_Denmark _2007-2013.pdf Sustainable growth in Europe http://ec.europa.eu/environment/resource_efficiency/index_en.htm Contact Mr Poul Rask Project Manager – Energy City Frederikshavn Tel: +45 9845 9023 E-mail: [email protected] Name of expert Alexander Ferstl

AEIDL has been contracted by the European Commission in 2012 in order to provide 50 examples of good practice in urban development supported by the European Regional Development Fund during the 2007-2013 programming period (contract reference 2011.CE.16.0.AT.035). The views expressed by AEIDL remain informal and should not under any circumstance be regarded as the official position of the European Commission.

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Frederikshavn Energy City, Denmark

The 100% renewable city In 2007, the north Danish city of Frederikshavn set itself the ambitious goal of becoming the first European city to rely solely on renewable energy – and to achieve this by 2015. The pioneering Energibyen (‘Energy City’) initiative aims to create a 100% renewable energy system by tapping multiple energy sources rather than only one. It will offer green growth opportunities which are expected to have a significant positive impact on the city’s economic attractiveness and development.

The 100% renewable city In 2007, the North-Danish city of Frederikshavn set itself the ambitious goal of becoming the first European city to rely solely on renewable energy – and to achieve this by 2015. Renewables include wind, solar (thermal and photovoltaic), hydro-electric and tidal power as well as geothermal energy and biomass. It is by using a number of these sources, not just one, that the pioneering Energibyen (‘Energy City’) initiative aims to reach its 100%-renewable goal. It will offer green growth opportunities which are expected to have a significant positive impact on the city’s economic attractiveness and development. The project gives priority to large energy infrastructure investments with positive spin-offs for the local economy and labour market, as well as to the involvement of local communities and citizens. As part of the initiative, a new digital modelling and visualisation tool has been developed to handle the complexity of such a 100% renewable energy system. This was co- financed by the European Regional Development Fund, with some 2 480 000 DKK (€333 365) provided between 2007 and 2011. It now forms the basis for strategic investment and scenario planning for the city’s new energy supply and consumption model. Frederikshavn’s ‘Energy City’ initiative highlights the importance of local contributions to achieving global goals and to encouraging lasting climate and energy improvements. It shows how a large number of activities can work together to create a 100% renewable energy supply system. It is also about sowing an idea in the local population and raising awareness about energy and climate change.

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The 100% renewable city In 2007, the north Danish city of Frederikshavn set itself the ambitious goal of becoming the first European city to be solely reliant on renewable energy, and to do this by 2015. Its pioneering Energibyen (‘Energy City’) initiative aims to create a 100% renewable energy system by tapping multiple renewable energy sources, rather than relying on just one. This will result in green growth opportunities which are expected to have a significant positive impact on the city’s economic attractiveness and development. There are several different source of renewable energy. For a start there are two ways of harvesting the sun’s energy: solar thermal energy uses the sun to heat water, air or a solid mass, and is useful for space heating as well as power generation; photovoltaic energy on the other hand uses semiconductors to turn the sun’s rays directly into an electrical current. These go along with wind, tide and hydro-electric as well as geothermal energy and biomass. Using these sources helps not only to reduce greenhouse gas emissions from energy generation and consumption but also to reduce dependence on imports of fossil fuels (in particular oil and gas). In order to reach the ambitious target of a 20% share of energy from renewable sources in the overall energy mix, the EU plans to focus efforts on the electricity, heating and cooling sectors and on biofuels. In transport, which is almost exclusively dependent on oil, the Commission hopes that the share of biofuels in overall fuel consumption will reach 10% by 2020. In 2005, the breakdown of renewable energy sources for electricity production in the EU was as follows: 66.1% from hydropower, 16.3% from wind power, 15.8% from biomass, 1.2% from geothermal energy and 0.3% from solar power (europa.eu). Figure 1 View of Frederikshavn © Jørgen Anker Simonsen 2009 The Frederikshavn project gives priority to large energy infrastructure investments with positive spin-offs for the local economy and labour market, as well as to the involvement of local communities and citizens. As part of the initiative, a new digital modelling and visualisation tool has been developed to handle the complexity of such a 100% renewable energy system. This was co-financed by the European Regional Development Fund, with some 2 480 000 DKK (€333 365) provided between 2007 and 2011. It now forms the basis for strategic investment and scenario planning for the city’s new energy supply and consumption model. A palm beach on the Nordic coast Located at the northern tip of Denmark, Frederikshavn’s history is closely linked to the sea. It was originally called Fladstrand (‘flat beach’), until, in 1818, it was awarded the status of a merchant town by King Frederik VI, and became known as Frederikshavn. Owing to its advantageous proximity to the entrance of the , Frederikshavn has long profited from its strategic military importance. Even today, it is still an important Danish naval base. Over the last 30 years, Frederikshavn has undergone a significant structural change. The decline of the fishing and shipping industries in the late 1980s had a serious impact on some of 2

the city’s traditional economic activities. The closure of the city’s two main shipyards left over 7 000 workers unemployed.

What followed in the 90s was a rethinking of the city’s economic strategy, fostering the tourism industry on one hand, and refocusing and reviving the city’s traditional economic assets in the shipping and transport sectors on the other. In this context, the development of environmentally sustainable businesses and technology became an important local priority. This helped to support the city’s recovery and also provided a foundation for the city’s later engagement in the renewable energy sector.

Centrally located in southern Scandinavia, Frederikshavn is once again an important sea hub, and has several daily ferry connections to Oslo and Gothenburg. The city’s ports link parts of Scandinavia with continental Europe and connect passenger and car ferries to the E45 motorway. In 2011, more than half of the city’s tax revenue was generated by three of its seven sea ports alone.

With the regional capital Aalborg over an hour’s drive away, Frederikshavn is also the urban centre of an otherwise rural territory, comprising both intensive agricultural holdings and unspoilt natural landscapes and beaches. Tourism has become the city’s second most important economic pillar. Swedish and German tourists use it as a base to explore the north of and, when the city’s ‘palm beach’ opens in early summer, tourists from far and wide turn the otherwise rather sleepy town into Denmark’s Saint Tropez.

This tourist project, well-known in most parts of Scandinavia, transforms – for a few months – one of the city’s white sandy beaches into a Danish-Caribbean paradise with over a hundred palm beaches. Even the Nordic water temperatures, which never rise above 20 degrees in high summer, are not enough to inhibit the tourists’ desire to spend some Caribbean moments in Northern Denmark.

Today, the shipyards are also busy again, retrofitting ferries and cruise ships with the latest technologies. However, despite these successes, job creation – especially for younger people – remains a major challenge for the local authorities. While the share of people over 60 is constantly increasing, younger and often highly qualified people are leaving northern Denmark for jobs in nearby Aalborg, Gothenburg or Copenhagen.

A city powered by renewables In its road map for a low-carbon economy by 2050, the European Union has set ambitious targets to create jobs and economic opportunities while reducing CO2 emissions by up to 95%. The potential for new jobs has been estimated at three million in the renewable energy sector, while energy efficiency measures in private and public buildings are also expected to boost local business and job creation – jobs which, by definition, cannot be outsourced to China or the rest of the world.

This way of thinking is very much in line with what Frederikshavn has been attempting to achieve since the early 2000s, driven by two key aspirations. Firstly it aims to limit the outward migration of young people and adapt to changing infrastructure needs by investing in green tech and renewable energy sources. It also wants to develop existing economic and professional assets in order to push for energy savings and to attract new, green businesses with high growth potential. These two goals are at the core of the Energy City initiative. ‘We are, by definition, a 3

business support project, not an environmental initiative. It is clear, however, that we aim at catching two flies in one swipe. And this seems to work,’ explains Poul Rask Nielsen, project leader.

The idea for the Energy City initiative originally emerged at a national event in 2006, the so- called Energy Camp, where academics and energy experts from all over Denmark discussed new ways to improve Danish energy policy and technology. One workshop focused on finding a suitable Danish urban area where a 100% transition from fossil fuels to renewable energy could be tested. The experts’ recommendation was unanimous: Frederikshavn would be the ideal location for a national test site.

The city’s recent efforts to promote an economic transformation and its need for further economic change were important factors in this decision, as was its strong political commitment to environmental protection. For a test-site, it was also a manageable size, making the complex task of achieving 100% reliance on renewables within 10 years a realistic and achievable goal. Frederikshavn also had a lot to offer in terms of natural assets, having both windy and sunny conditions for wind turbines and solar energy installations, and a productive agricultural hinterland for biomass resources.

The city council of Frederikshavn gave its backing to the initiative in 2007. As the city’s mayor, Lars Møller explains, it is this commitment – across all political parties – which has carried the initiative to date. Despite some initial financing from the city and the European Regional Development Fund, as well as (immaterial) support from the national Figure 2 Frederikshavn’s city hall, which now meets the government, the initiative has to rely requirements for energy class 2, corresponding to an energy on the manpower of only three full- consumption of 70 kWh/m² per year. time employees. ‘The investment mostly comes from the private sector, from energy providers and green tech businesses. It is our role to attract them, help them and convince them that our small town is the place to be,’ Mr Møller explains. The envisaged private investment of around €260 million might indeed be worth the three employees’ salaries.

At the start of the initiative, in 2007, the share of energy supplied from renewable sources amounted to 24%. By 2015, energy production from the wind, the sun, biomass and waste incineration should meet a full 100% of the city’s energy requirement.

Visualising change, modelling the future To handle the shift towards a 100% renewables based energy system, and to manage the complexity of different energy sources and fluctuations in energy supply and demand, is a major challenge. It was, therefore, clear from the initial project planning stage that a strong evidence- based, analytical support tool would be needed.

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The combination of a highly technical, academic model with the needs and competences of a local authority made it essential to link modelling and scenario planning with the implementation process. Indeed, launching the initiative without a suitable planning instrument could have jeopardised the entire transformation process.

Aalborg University, which has significant expertise in energy systems analysis, and had already been involved in the Energy Camp discussions in 2006, was a natural partner to help the city to address this issue. The two partners, the city and the university, quickly agreed that a modelling tool would need to do two things: firstly, it would need to be user-friendly for local authorities and visually appealing to potential investors – to demonstrate the impact of possible changes to the energy systems; and secondly, it would need to be based on ‘scenario planning’, linking future energy projects with complex supply and demand circuits.

To kick-start the entire Energy City initiative – based on the modelling tool – the city authorities successfully applied for a grant from the Danish ERDF programme in 2007. A budget of DKK 4 960 000 (approx. €666 730), with 50% financing from the EU and 50% from the local city council, was allocated to the project. This funding injection was crucial to getting the project off the ground: ‘when we received the OK from the EU in 2007, we knew that we would have a realistic chance of success. The project might sound technical and complex, but really it is just the coming together of all our work to date,’ explains Bahram Dehghan, project manager of the Energy City initiative.

The team at Aalborg University made the modelling tool a reality in 2007. The web-based instrument, with a 3D model of the entire city area, succeeds in visualising the city’s energy supply and demand. By changing certain parameters (such as the number of wind turbines or photovoltaic cells), the changes in the energy system can be visualised, according to yearly supply and demand patterns (e.g. higher energy demand due to heating in winter, lower energy supply from wind turbines in summer because there is less wind).

Today, the tool plays an important role in energy planning, as well as in communicating and demonstrating possible changes and scenarios to stakeholders and citizens. ‘I think we managed to develop something that citizens and stakeholders can understand. If you want to have an answer to a question like “what difference does it make if we build three more off-shore wind turbines?” you can simulate this by clicking a button and you will see the impact immediately,’ explains Poul Alberg Østergaard, Associate Professor at the university.

The energy scenarios, which are also included in the tool, are based on the use of existing technology, and locally available resources or infrastructure – and demonstrate what can be done to achieve an annually balanced, 100% renewable-based energy system. ‘Our scenarios are not science fiction or based on major new innovations in the energy sector. They show what can be done – right here, right now,’ explains Karl Sperling, a fellow scientist from Aalborg University. The scenarios constitute the basis of local action plans, which can be easily adapted to reflect private investment commitments or new projects.

A sustainable partnership Over the years, the partnership between city and university has developed into a close cooperation between researchers, practitioners and politicians. In this way, the city has been able to create a sustainable partnership with the university, which continues to act as a source of inspiration and as a potential developer of future activities. The city also considers this ‘local 5

partnership’ as essential to keeping expertise and knowledge on energy systems in the region, and to staying at the forefront of new developments.

Overall, building partnerships between stakeholders, from the public and the private sector, is one of the main tasks of the Energy City secretariat. The three-person team, which forms a special entity within the local city administration, acts as a facilitator and communicator for most activities included in the initiative.

So far, cooperation with businesses and private investors has already had a significant impact. The list of projects is long, ranging from a pilot action on e-mobility to new heating systems. The privately run Strandby Heating Plant, for example, provides the city with an entirely new solar heating system. Since 2008, the 8 000-square metre facility has been meeting the heating demand of 190 households, providing an annual CO2 saving of 1 500 tonnes.

The construction of six new offshore wind turbines will mark another important milestone for the project. In 2012, DONG Energy, an 80% state-owned energy provider, will begin work on the new turbines, which are unique in terms of their height and production capacity, and will complement the power already generated by four onshore wind turbines located near the city centre. The turbine masts will be between 85 to 115 metres tall – and the wing tips will reach up to 200 metres above sea level. Located approximately four kilometres east of Frederikshavn, in the Kattegat sea passage, the new turbines will not only produce energy, but will also function as a research site on enhancing wind turbine technology.

A symbol of change The new wind turbines, which will be visible off the shore of Frederikshavn, will become a symbol of the city’s commitment to renewable energy. However, this engagement is already evident at the city’s town hall. In 2009/2010, a complete refurbishment transformed the 1970s office complex into a highly energy-efficient building, which now meets ‘energy class 2’ standards according to Danish energy legislation. This corresponds to a total annual energy consumption of 70 kWh per m².

Green energy solutions include: 150 m² of solar cells, which meet the building’s entire electricity demand; 400 m² of solar collectors, which produce energy for cooling, hot water and heating; and stricter requirements for automatically controlled lighting, ventilation and cooling. This complex energy mix has helped to reduce CO2 emissions by over 60%. At the same time, the once rather dark network of long corridors, with sometimes unpleasant climatic conditions, is now a bright and open space – greatly improving the working environment of the city authority’s employees. “With the new glass façade, and by replacing the old radiators with an ‘invisible’ circuit for heating and cooling, we gained approximately 1 metre of space on each side of the building – valuable office space that improved our employees’ comfort and work conditions,” explains Bo Niebuhr, project leader and the city’s energy co-ordinator. “The citizens who come here can see the difference. It shows them the positive impact of energy measures,” adds Mayor Lars Møller, whose new office overlooks the city and the existing onshore wind turbines.

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Hello neighbour! Contact with local communities and residents forms an important part of the work of the Energy City secretariat. In addition to facilitating the implementation of large-scale investment projects, Poul Rask Nielsen and his team also put a special emphasis on civic dialogue, providing information for businesses and residents and guidance for those wishing to invest in renewable energy. The provision of expertise and guidance for property owners intending to improve the energy efficiency of existing private and public buildings is also a priority.

This community focus is driven by the conviction that the success or failure of climate and energy initiatives will, to a large extent, rest with the individual. By providing energy audits of buildings and by calculating the gains linked to investments, many property owners could be encouraged to become part of the Energy City initiative – and to invest in their buildings.

The community-based approach, which is partly a response to a certain resistance to the initiative in the early stages, also tries to initiate exchanges between citizens. Neighbours explain to neighbours what they have done and what effects it had, financially and in terms of quality of life. “People often have more trust in their neighbours than in our brochures or energy experts. It is the very local experience that makes them change their minds,” explains Mr Rask. ‘Traditional’ sources of information still have a role in the initiative, but it seems that this kind of community-based action is what makes a real difference.

Training is another important part of the work of the project team. Combining different energy systems, such as a heat pump with solar panels to produce heat and electricity in one building, was new ground for many local businesses and professionals, as the professional education usually only covered one technology. To overcome this hurdle, the city authorities teamed up with the local crafts council in the so-called Regional kompetenceudvikling (‘Regional competency development’) project and, with support from the , provided training to improve skills and competences for future energy efficiency measures.

Activating local potential also plays a pivotal role in the secretariat’s efforts to support emerging businesses. The Crestwing project, for example, is a local inventor’s initiative to make a breakthrough in wave energy. Henning Pilgaard, a Frederikshavn-based inventor and marine engineer, has made it his life goal to generate energy from the sea. In contrast to previous attempts, he builds upon his knowledge of marine systems – and waves. ‘It is a mistake to assume that you can produce power with land-based construction models. You need to go with the waves and respect the sea. Land-based facilities will never be able to compete with the incredible power of the sea,’ the inventor explains.

If things go as he plans, Frederikshavn will soon become a global centre for wave energy. Having a wing span of up to 120 metres, the floating production elements of Crestwing could revolutionise energy production. Almost invisible because of their shape, the flexible components of the installation are easy to transport and maintain and initial tests suggest that industrial production could be under way by 2015.

It was the Energy City team who put the inventor in contact with a former shipyard manager and skilful businessman, who now keeps a close eye on the business aspects of the project. He also helped Mr Pilgaard to develop a business plan, which is a necessary step if the project is to succeed.

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The Frederikshavn effect At the time of the visit to Frederikshavn in early 2012, the project’s numerous stakeholders were confident of meeting their common target of creating Europe’s first 100% renewables city. If this goal is accomplished by 2015, the city’s energy transformation will have taken only eight years – while also overcoming the economic crisis of 2008/9. The crisis was a major setback for the project. Several projects involving private investors were put on hold, and many incentives and efforts undertaken by the city had little impact. The economic recovery in 2010 helped to change this situation and put projects back on track, but only the future will tell whether the delay caused by the crisis will put the 2015 target at risk. ‘It will be a photo finish but we all believe that it will happen,’ insists the project team.

Ultimately, whether it is 2015 or 2016 won’t really matter. Already, there is a lot to learn from the process. Frederikshavn’s Energy City initiative underlines the importance of local contributions to achieving global goals. This local approach encourages lasting climate and energy improvements – comprising a large number of activities to create a 100% renewable energy system. It is also about sowing an idea in the local population and raising awareness of energy and climate change issues.

The idea of basing local action on a complex yet accessible modelling tool is a valid one. Overall, the modelling tool has real potential to be transferred to other cities and locations. By changing the underlying 3D model and modifying the energy parameters (wind, sun, waste incineration etc.), this tool could easily be used in other European cities.

For the wider Energy City initiative and its target of 100% renewables by 2015, local territorial conditions will be decisive. Frederikshavn was chosen as a location because of its natural assets – strong winds, waste from agricultural production, and comparatively low levels of fuel-based mobility. The city is also relatively small in size and therefore easy to manage. It is unlikely that the ‘Frederikshavn approach’ could be deployed in all European cities. However, it could be a suitable model for small and medium-sized cities with potential for renewable energy production.

Post-2015, Frederikshavn is planning to expand its initiative to the two local authorities that became part of Frederikshavn in Denmark’s 2007 municipal reform. In this context it is conceivable that Denmark’s entire northern tip could soon be energy Figure 3 Strandby district heating plant. The facility meets the heating requirement of about 190 households, using CO2-free self-sufficient. solar energy.

Five lessons to take away For other cities wishing to engage in accelerated climate change mitigation and to set up similarly complex models of energy provision based on renewables, there are five key lessons that can be taken from the Frederikshavn project:

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1. You can start immediately! The Energy City initiative demonstrates that significant positive changes to local energy systems are possible and realistic. By using existing technology, exploiting local assets and encouraging local action, Frederikshavn is very likely to succeed in becoming Europe’s first city to rely solely on renewable energy sources by 2015. Exploiting the potential of many different renewable energy sources rather than being bound to only one makes things more complex, but also better balanced for matching seasonal fluctuations in supply and demand. 2. It takes local commitment and courage. The entire initiative is based on a scientific model, developed by a university, which is complex, highly technical and far from its potential end users. Picking this model up, transforming it into a vision and committing to it takes strategic thinking and much courage. The city of Frederikshavn demonstrated that strong local commitment can translate a complex visionary idea into effective action on the ground – and make it a local asset. Paradoxically, it required not much more than establishing a competent team to run the initiative and some initial investment to attract private investors or to kick-start public projects. In this way, the investment in a three-member team has brought excellent returns. 3. Open people’s eyes. How to bring complex matters like renewable energy systems or energy efficiency investment down to the ground? The Energy City initiative demonstrates that it can be done – by investing in information and communication, by personalising guidance for citizens wanting to invest, and by exploiting exchanges between citizens and neighbours. 4. Visualise change. Making the complex system of energy supply and demand transparent and understandable is another strength of the initiative. The 3D model presents a highly abstract engineering model in a visually appealing way – giving citizens the opportunity to change various parameters and observe the impact. This smart way of demonstrating the impact of different options has also proved valuable in convincing policy-makers and investors to engage in the process. 5. An iterative process is worthwhile. Cooperation between research and public institutions can undoubtedly improve the quality of results: the applicability of scientific research to real-life situations on the one hand, and more evidence-based, innovative policy-making on the other. By creating a sustainable partnership with Aalborg University through the ERDF project, the city can also rely on a competent partner as a source of inspiration and as a potential developer of future activities. This local partnership also appears essential for the city if it is to retain its expertise and knowledge on energy systems and stay at the forefront of new developments. As the mayor of Frederikshavn put it, ‘consulting firms come and go – universities stay.’

AEIDL has been contracted by the European Commission in 2012 in order to provide 50 examples of good practice in urban development supported by the European Regional Development Fund during the 2007-2013 programming period (contract reference 2011.CE.16.0.AT.035). The views expressed by AEIDL remain informal and should not under any circumstance be regarded as the official position of the European Commission.

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