Final Report Authors

Enhancing effective implementation of sustainable energy action plans in European islands through reinforcement of smart multilevel governance Final Report Authors

Alexis Chatzimpiros (Network of Sustainable Aegean Islands, EL) Alkisti Florou (Network of Sustainable Aegean Islands, EL) Kostas Komninos (Network of Sustainable Aegean Islands, EL) Ilias Eftymiopoulos (Network of Sustainable Aegean Islands, EL) Panos Coroyannakis (Conference of Peripheral Maritime Regions, FR) Lise Guennal (Conference of Peripheral Maritime Regions, FR) Bertil Klintbom (Region Gotland, SE) Bengt Olof Grahn (Region Gotland, SE) Elvira Laneborg (Ölands municipal association, SE) Kai Niklasson (Ölands municipal association, SE) Kaidi Nõmmerga (Hiiu Mumnicipality, EE) Agne Petersoo (Saare County Government, EE) Christian Pleijel (European Small Islands Network, SE) Søren Hermansen (Samsø Energy Academy, DK) Michael Larsen (Samsø Energy Academy, DK) Penélope Ramírez (Technological Institute of Canary islands, ES) Filipe Oliveira (Regional Agency for Energy and Environment of the Autonomous Region of Madeira, PT) Savvas Vlachos (Cyprus Energy Agency, CY) Anthi Charalampous (Cyprus Energy Agency, CY) Lili Vasileva (Local Councils’ Association, MT) Jimmy Margo (Local Councils’ Association, MT) Terry Hegarty (Scottish Islands Federation, UK) SMILEGOV Partners

Network of Sustainable Aegean Islands (DAFNI) / Conference of Peripheral Maritime Regions (CPMR)/ Region Gotland (Region Gotland) / Ölands municipal association (Öland Hiiu Municipality) / Hiiumaa Saare County Government (Saaremaa) / European Small Islands Network (ESIN) / Samsø Energy Academy (SE) / Technological Institute of Canary islands (ITC) / Regional Agency for Energy and Environment of the Autonomous Region of Madeira (AREAM) / Cyprus Energy Agency (CEA) / Local Councils' Association (LCA) / Scottish Islands Federation (SIF)

SMILEGOV is an action co-funded under the Intelligent Energy - Europe (IEE) programme of the European Commission. The sole responsibility for the content of this publication lies with authors. It does not necessarily reflect the opinion of the European Union. Neither the EASME (Executive Agency for Small Medium Enterprises) nor the European Commission are responsible for any use that may be made of the information contained therein.

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www.sustainableislands.eu SMILEGOV Brussels office – Rond Point Schuman 14, 1040 Brussels, Belgium Final Publishable Report Contents Executive Summary 6

1 1 Introduction and Background 7 1.1 Islands and Sustainable Energy 7 1.2 SMILEGOV in a nutshell 8

2 Applied approach and 9 methodology 2.1 An overview 9 2.2 Establishment of island clusters 10 2.3 Priority areas for capacity 12 development 2.4 Capacity development – The 15 structure 2.5 Capacity Development – The 15 tools 2.5.1 Good practices on enabling 16 conditions for good MLG 2.5.2 Strategic Guidelines 16 2.5.3 Toolbox to support project 17 development 2.5.4 E-learning platform 17 2.6 Capacity development – The 19 activities 2.6.1 The plenary workshops 19 2.6.2 The local workshops 24 2.6.3 The task force workshops 25 2.6.4 The study visits 25 2.7 Capacity development – The 27 bankable projects

3 Results and Impact 28 3.1 SMILEGOV doubles the number 28 of Pact of Islands signatories 3.2 SMILEGOV shinning sustainable 29 energy projects 3.2.1 Geothermal District Heating – 29 Lesvos, Cluster of Greece 3.2.2 Offshore Marine Energies 30 Development – Isle of Man, Cluster of CPMR 3.2.3 Deployment of Biogas 31 infrastructure – Öland, Cluster of Sweden 3.2.4 Sports hall in Visby with solar 32 energy – Gotland, Cluster of Sweden 3.2.5 Combined Heat and Power 33 production – Vormsi, Cluster of Estonia 3.2.6 Small wind tyrbine – Keistiö, 34 Cluster of ESIN 3.2.7 Biogas plant – Samsø, Cluster 35 of Denmark 3.2.8 Multi-megawatt wind turbine – 35 Gran Canaria, Cluster of Spain 3.2.9 Energy efficiency on street 37 lighting – Madeira and Porto Santo, Cluster of Portugal and Cape Verde 3.2.10 Upgrade of the street lighting 38 in 20 local authorities, Cluster of Cyprus 3.2.11 Retrofitting Road and Street 39 Lighting by Smart Lighting, Cluster of Malta 3.2.12 Assisting Communities to 40 Connect to Electric Sustainable Sources (ACCESS), Cluster of Scotland

4 Conclusions and 42 Recommendations MULTILEVEL SMILEGOV GOVERNANCE 6

Executive Summary

Islands in Europe but also globally are and capacity development. In essence, frontrunners in the fight against climate SMILEGOV helped formulate an enabling change. Although usually rich in renewable environment for enhanced multi-level and energy resources, significant potential to multi-lateral governance (MLG), by provid- increase energy efficiency in their local ing local authorities, its key target group, infrastructure and the need to shift to with concrete tools and methodologies to sustainable mobility, islands often face improve their cooperation with other levels different kinds of barriers, impeding or sig- of administration (regional, national) and nificantly delaying the actual deployment stakeholders and successfully implement of sustainable energy plans and projects in sustainable energy plans and projects. their territories. At the same time through Thus, SMILEGOV responded to a well-iden- islands have a strong tradition in coopera- tified need – that of empowering island tion and experience sharing and can bene- local authorities by building their capacity fit by investing in their human and cultural to use innovative financing schemes, effec- capital to overcome these barriers. tively engage stakeholders and implement SMILEGOV came to assist exactly this pro- bankable sustainable energy projects. cess of knowledge sharing among Europe- The network of 12 island clusters that was an islands of different size and capacities set up thanks to SMILEGOV was the driving by enhancing multi-level cooperation force behind the doubling in number of among levels of administration and stake- the Pact of Islands signatories. Moreover holders and thus foster local sustainable SMILEGOV helped promote islands as ideal development. test beds for sustainable innovative energy SMILEGOV helped create long-lasting technologies, highlighting the contribution structures of cooperation, giving voice to of these technologies to islands’ balanced island communities across Europe for the socio-economic development. promotion of sustainable development on their territories. More specifically SMILEGOV helped create the conditions for European “Islands are the buttons of the island authorities to reduce CO2 emissions by more than 20% by the year 2020 and Sustainable Europe coat” beyond, by inviting them to participate in relevant EU initiatives (i.e. Pact of Islands) in order to build the necessary capacities The SMILEGOV Team and launch a series of business plans, actions and projects for the effective transition to a low-carbon development path. SMILEGOV finally managed to create SMILEGOV did not come out of nowhere; long-lasting ties among European islands, it built on previous projects and on-go- planting the seed for sustained collabo- ing initiatives and acted as a multiplier. ration and undertaking of joint initiatives, Its added value lies with the approach of leading to the establishment of more per- clustering together a significant number of manent structures of cooperation among European islands, creating economies of European islands. SMILEGOV might have scale and reinforcing territorial cohe- ended, but the fruits from the cooperation sion through the exchange of knowledge established will be long lasting. 1. Introduction and Background

1.1 Islands and Sustainable Energy

Islands, whether they are located in the nition that even if islands have different Mediterranean, the Atlantic or the Baltic sizes, population, infrastructure, modes Sea, are remote areas compared to urban of governance, institutional knowledge, areas in the mainland, and are often financial and social structures, many of recognizable as holiday destinations only. their challenges have the same roots and Beaches, local quality products and large are common to some extent. The aspects hotel complexes or just summer houses where it focused on were two of the main are the elements for which islands are common weaknesses -especially small- most known for in people’s minds. islands suffer from: Governance issues Seasonality, fluctuation of population, and human resources and capacity, with radical increase of infrastructures’ use, the aim to strengthen both. energy and water security of supply, as The size and geographical location of well as waste production are consequenc- islands influence these two challenges. es that visitors often don’t even realize, The smaller the population, the bigger is which become challenges for island au- the number of barriers identified at local thorities to deal with in a sustainable way. level, particularly in relation to multi-level In addition, islands face permanent struc- cooperation with other authorities, fund- tural handicaps that lead to market fail- ing, capacity building and daily practical ures and also face lower competitiveness concerns such as energy efficient heating, and higher unemployment rates, which use of local renewable energy resources. lead young people flee to the mainland Further, the existence of a sustainable for better conditions for studies and jobs. energy action plan, or the lack of it, par- The same reasons often increase distrust ticularly in small islands, determines the among islanders towards decision making type and importance of barriers emerged. in the EU and even towards the European Such plans are valuable strategic tools project itself. that foresee the establishment of both The SMILEGOV project built on the recog- emission inventories and the develop- MULTILEVEL SMILEGOV GOVERNANCE 8 ment of bankable energy projects. build competences on the mechanisms of Nonetheless, even when such a plan is effective multi-level governance, to over- in place, many islands still depend on come constraints related to cooperation of regional and national support to implement different administrative levels, to make ad- renewable energy projects. If there is poor vance specific sustainable energy projects communication or other barriers between within their maturing process, and to make the different levels of governance, which steps towards a sustainable and resilient is often the case, projects are delayed and development. often held to a standstill, in absence of a It also assisted weaker islands to steadily better process in place. Such delays result increase the levels of awareness of their in investors shifting their funding to other island communities regarding the societal projects, where the implementation can value of sustainable energy plans, to make progress in a faster and less complicated commitments in line with the EU 2020 way. goals and sign-up to the Pact of Islands, The SMILEGOV project built clusters of to familiarise with successful examples of islands to facilitate exchange and coopera- investment schemes with the participation tion among islands with similar character- of local citizens, to understand the impor- istics, as well as experience transfer from tance of stakeholders’ involvement in the other geographical areas. projects’ development process and finally to build skills in the process of maturing The SMILEGOV project assisted islands to sustainable energy projects. 1.2 SMILEGOV in a nutshell

The SMILEGOV in numbers The SMILEGOV objectives • 12 island clusters have been established SMILEGOV is an opportunity for the European is- • 163 island authorities have joined the clusters lands reach the EU 20-20-20 objectives and tackle • 57 islands have joined the Pact of Islands climate change by: • 312 persons have been trained in the Energy Acad- emy 2020 • identifying and removing obstacles in the imple- • 55 sustainable energy projects taken steps towards mentation of the operational programmes aimed at implementation promotion and investment in the field of sustainable development • 15 island Sustainable Energy Action Plans have • bringing EU islands to work together – share areas been developed of expertise and experiences, and to develop addi- • 125 Μ€ of cumulative investments will be realised tional skills through capacity building workshops • 2807 GWh of primary energy will be saved and an e-learning platform available to project • 1043 GWh of renewable energy will be produced participants

• 1116 ktCO2/year of greenhouse gas emissions will • gaining more skills and useful contacts for the be reduced annually new framework programme Horizon 2020 and the mid-term review of the operational programmes in 2016-2017 • extending the great family of European islands that have signed the Pact of Islands and work together towards the objectives of Europe 2020 and further. 2. Applied approach and methodology

2.1 An overview The approach and methodology that e-learning platform which served the SMILEGOV applied was founded on a basic purpose of extending the outreach of the premise: the need to set up a structure project to actors from insular, coastal but that catalyzes the exchange of knowledge also mainland areas within and beyond between islands of different capacities Europe who have an interest in sustainable acting on different administrative levels energy planning and project implemen- through intensive capacity building. The tation. Apart from building knowledge at process of developing capacities among a more strategic level, capacity building partners and cluster members bare sig- served a more operational purpose, that of nificant and tangible results, creating an helping 50 identified bankable projects in important precedent for sustainable local the different islands make significant steps development in islands. forward. Capacity building activities were tailored to priority areas identified by each cluster and focused on capitalizing strengths and tackling weaknesses. They were structured in a way that provided cluster leaders with recurrent feedback on their usefulness and the need for adjustment in light of emerging needs. More specifically, capacity building was promoted through local workshops and bilateral meetings, targeting island authority representatives and other stakeholders with a special interest in sustainable energy planning and project development but also through plenary workshops, focusing on relevant knowledge transfer from the more experienced to the less experienced SMILEGOV partners. Further capacity building was promoted with the establishment of the SMILEGOV

The SMILEGOV approach poster MULTILEVEL SMILEGOV GOVERNANCE 10

2.2 Establishment of island clusters To enable the efficient and practical -ex change of knowledge SMILEGOV established 12 clusters of islands covering the largest part of Europe’s insular regions, i.e. the Atlantic ocean (Portugal, Spain, UK), the Baltic Sea (Denmark, Sweden, Norway, Finland, Estonia) and the Mediterranean sea (Italy, Malta, Cyprus, Greece) com- prising 163 cluster members. Then it was time for communication and networking. SMILEGOV partners took over the role of leading their respective cluster and invited neighbouring islands to join the cluster. At the end of the day the clusters were enriched with 163 island members in total from 16 Members States and 2 neighbouring countries. The cluster members joined SMILEGOV having different experience and expectations. In order to facilitate the collaboration among the clusters and their members a 2-tier structure was adopted. The 1st tier was comprised of SMILEGOV partners with significant experience in sustainable energy planning and project development. To capitalise on the vast experience some of these partners have in multi-level cooperation for the efficient elaboration of sustainable energy plans and projects the 1st tier was further to ensure the widest transferability the divided into two groups. The first one project could possibly have, creating the grouping the more experienced Scandi- conditions for long-term cooperation be- navian islands, Samsø, Gotland and Öland tween European islands thus contributing into a “task force”, who are front runners to territorial cohesion. At this point it is in local sustainable development and rep- worth pointing out that the establishment resent role models for many other island of clusters had a major role to play in the areas. The second one grouping the rest diffusion of relevant knowledge among of the partners who yet need to further islands, resulting in more than 57 new is- build capacity on efficient MLG in order to lands or island authorities joining the Pact overcome barriers to energy planning and of Islands; a very significant impact of the project implementation. project. The 2nd tier was comprised of islands that Overall through the establishment of had no previous experience in sustainable clusters SMILEGOV left an important legacy: energy planning but joined the clusters strengthened cooperation between part- and benefitted from the project’s activi- ners with different levels of capacity and ties under the supervision of the cluster experience, through enhanced knowledge leader. Involving these islands was crucial exchange and capacity development. THE PARTNERSHIP – CLUSTER LEADERS

Cluster of Greece 27 Nisyros – Dodecanese 7 Inishmor – Ireland Cluster of Associated 23 Hiiu - Hiiumaa 9 Ponta do Sol – Madeira Regions 28 Platanias – Crete 8 Insiheer – Ireland islands Cluster leader 10 Ribeira Brava – 1 Region of North Aegean 29 Rethymnon – Crete 9 Inishmaan – Ireland 1 Djerba – Tunisia Hiiu Municipality Madeira 2 Region of South Aegean 30 Rhodes – Dodecanese 10 Long island – Ireland 2 Krk – Croatia 11 Câmara de Lobos – Municipalities 31 Samothrace – North 11 Sherkin – Ireland Cluster leader Cluster of Malta Madeira 3 Aegina – Argo-Saronic Aegean 12 Whiddy – Ireland DAFNI – Network of Local Councils 12 Porto Santo – Porto 4 Amorgos – Cyclades 32 Santorini – Cyclades 13 Simskäla – Åland Sustainable 1 Tarxien – Malta Santo 5 Antiparos – Cyclades 33 Sifnos – Cyclades 14 Asterholma – Åland Aegean Islands 2 Pembroke – Malta 13 EEM – Empresa de 6 Andros – Cyclades 34 Sikinos – Cyclades 15 Sottunga – Åland 3 Mellieha – Malta Electricidade 7 Chania – Crete 35 Syros – Cyclades 16 Iniö – Finland Cluster of Estonia 4 Birzebugga – Malta da Madeira, S.A. – Ma- 8 Festos – Crete Cluster leader 17 Nagu – Finland Counties 5 Paola – Malta deira, 9 Folegandros – Cyclades DAFNI – Network of Sus- 18 Visingö – Sweden 1 Hiiu county 6 Naxxar – Malta Porto Santo 10 Ios – Cyclades tainable Aegean Islands 19 Vinön – Sweden 2 Saare county 7 Swieqi – Malta 14 DREn – Direcção 11 Ikaria – East Aegean 20 Ven – Sweden Municipalities 8 Kalkara – Malta Regional da 12 Kalymnos – Dodec- Cluster of Sweden Cluster leader 3 Emmaste – Hiiumaa 9 Zebbug – Malta Energia – Açores anese 1 Sturkö – Blekinge ESIN – European Small 4 Kaarma – Saaremaa 10 Ta’ Xbiex – Malta 15 DGE – Direcção Geral 13 Kea – Cyclades County Islands 5 Käina – Hiiumaa Cluster leader de Energia 14 Kimolos – Cyclades 2 Aspö – Blekinge County Federation 6 Kärla – Saaremaa LCA–Local Councils’ – Cape Verde 15 Kos – Dodecanese 3 Hasslö – Blekinge 7 Kihelkonna – Saaremaa Association 16 CEA – Centro de 16 Kythnos – Cyclades County Cluster of Denmark 8 Kuressaare – Saaremaa Energia e 17 Leipsoi – Dodecanese 4 Öland – Kalmar county 1 Samsø Energiakademi 9 Laimjala – Saaremaa Cluster of Portugal Ambiente – Cape Verde 18 Lemnos – North–east 5 Gotland – Gotland –Samsø 10 Leisi – Saaremaa and Cape Verde 17 DECM – Departamen- Aegean county 2 Bornholm region/ 11 Lümanda – Saaremaa 1 DRCIE – Direcção to de 19 Lesvos – North–east Cluster leader kommune – 12 Muhu – Saaremaa Regional Engenharias e Ciências Aegean Region Gotland Bornholm 13 Mustjala – Saaremaa do Comércio, Indústria e do Mar 20 Paros – Cyclades 3 Læsø Kommune –Læsø 14 Orissaare – Saaremaa Energia – Madeira, Porto of Cape Verde University 21 Skyros – North Cluster of ESIN 4 Ærø Kommune –Ærø 15 Pihtla – Saaremaa Santo – Cape Verde Sporades 1 Ischia – Italy 5 Sammenslutningen af 16 Pöide – Saaremaa 2 Funchal – Madeira Cluster leader 22 Tilos – Dodecanese 2 Bere Island – Ireland Danske Småøer 17 Pühalepa – Hiiumaa 3 Santa Cruz – Madeira AREAM – Regional Agency 23 Milos – Cyclades 3 Cape Clear Island – Cluster leader 18 Ruhnu – Saaremaa 4 Machico – Madeira for Energy and Environ- 24 Minoa Pediados – Crete Ireland SEA – Samsø Energy 19 Salme – Saaremaa 5 Santana – Madeira ment 25 Mykonos – Cyclades 4 Arrain Mohr – Ireland Academy 20 Torgu – Saaremaa 6 São Vicente – Madeira of Autonomous Region of 26 Naxos and S. Cyclades 5 Dursey – Ireland 21 Valjala – Saaremaa 7 Porto Moniz – Madeira Madeira – Cyclades 6 Heir – Ireland 22 Vormsi – Lääne 8 Calheta – Madeira Cluster of Scotland Cluster of Spain 6 La Palma – Canary Cluster leader islands 8 Engomi – Cyprus 1 Isle of Bute – Argyll Directorate General Islands ITC – Technology Institute 5 Isle of Wight – UK 9 Yeri – Cyprus 2 Isle of Mull – Argyll 1 DG of Industry and 7 Fuerteventura – Canary of the 6 Isle of Man – UK 10 Polis Chrysochous – 3 Small Isles (Canna, Eigg, Energy of the Islands Canary Islands 7 Isles of Scilly – UK Cyprus Rum, Canary Islands Regional 8 El Hierro – Canary Cluster leader 11 Deryneia – Cyprus Muck) – Highland Government Islands Cluster of CPMR CPMR – Conference of 12 Athienou – Cyprus 4 Isle of Arran – North – Canary Islands 9 Tenerife – Canary 1 Conseil Régional Peripheral 13 Ayia Napa – Cyprus Ayrshire 2 DG of Industry and Islands de la Martinique – France Maritime Regions of Community Councils 5 Isle of Cumbrae – North Energy of the Municipalities 2 Conseil Régional Europe 11 Psimolofou – Cyprus Ayrshire Balearics Islands Regional 10 FECAM (Federation of de la Réunion – France Cluster of Cyprus 15 Platres – Cyprus 6 Isle of Gigha – Argyll Government Canary 3 Ministère des Ressou- Municipalities 16 Lythrodontas – Cyprus 7 Isle of Iona – Argyll – Balearic Islands Islands Municipalities) - rces 1 Lefkosia – Cyprus 17 Mazotos – Cyprus 8 Isle of Lismore – Argyll Cabildos Island’s Marines, des Mines et de 2 Strovolos – Cyprus 18 Anthoupoli – Cyprus 9 Isle of Luing – Argyll 3 Gran Canaria – Canary Municipalities la Recherche 3 Larnaca – Cyprus 19 Armou – Cyprus 10 Isle of Skye – Highland Islands 11 Technological Institute de la Polynésie Française 4 Aradippou – Cyprus 20 Episkopi Lemesos – Cluster leader 4 Lanzarote – Canary of Canary – Polynésie Française, 5 Latsia – Cyprus Cyprus SIF–Scottish Islands Islands Islands (ITC) - Canary France 6 Lakatamia – Cyprus 21 Ormideia – Cyprus Federation 5 La Gomera – Canary Islands 4 State of Alderney – 7 Ayios Athanasios – Cluster leader Islands Channel Cyprus Energy Agency 2.3 Priority areas for capacity development Having the 12 island clusters in place the the project results among key stakehold- leaders were assigned to identify priority ers at local, regional and European levels areas where knowledge and capacity as well as in the strategic objectives and development at cluster level was mostly long-term impact of the actions of Europe- needed. an islands on EU policies. To support this process the leaders had to Priority areas did not come out of nowhere, cooperate with the experts. In each cluster but were the result of past project devel- a think tank was established with key opment experience and on-going work persons from local/regional authorities and on sustainable energy planning. To get to stakeholders who came together in a first these priority areas, SWOT analyses were workshop with the aim of identifying these conducted during the local workshops, priority areas. addressing a wide range of topics such as: Think tanks besides of assisting the • Needs and priorities of the cluster identification of the priority areas played • Local RES and EE potential an important role throughout the whole • Actions foreseen in iSEAPs and lessons Img 1:The cluster of ESIN 1st project process assisting in the diffuse of workshop Img 2:The cluster of Cyprus 1st workshop 1 2 learnt so far that these barriers are often aggravated by • Challenges faced for financing of bank- poor communication and lack of efficient able project co-ordination between the different levels of governance (local, regional, national). • Contribution of the actions to the local Thus the recognition of enhanced multi-lev- economy and employment el governance as a prerequisite for success- • Acceptance / Support by the local com- ful implementation of sustainable energy munity involved projects and plans was confirmed, instilling confidence in participants that SMILEGOV • Potential for penetration of technolo- is on the right path and can provide par- gies with high added value ticularly useful insights on how to unlock • Licensing procedure for investments sustainable growth on islands. • Regulatory issues In the aftermath of these first local work- Following the SWOT analysis, workshop shops, priority areas identified by each participants reached the conclusion that cluster were grouped together in six cate- there are many types of barriers to the gories, common for all clusters, in order to elaboration of plans and projects that inform the focus and content of the capaci- might be political, technical, financial, so- ty building activities that followed. cial and/or environmental in nature. At the same time however participants stressed

Denmark Scotland Sweden

Portugal Common & ESIN Cape Verde Priority Areas Spain Cyprus

Malta Greece The six common priority areas for all clusters are: Category A: Mobility For Mobility a key issue is how to make the transport sector fossil free including all kinds of public and private trans- portation and how to develop an optimal infrastructure that meets these needs. Category B: Communication Communication emerged as the most prominent priority area, since all clusters highlighted the fundamental contribution of effective communication in raising citizens’ awareness, thus creating the necessary conditions for enhanced involvement in and ownership of sustainable energy projects. Category C: Business Models In light of considerable lack of local public and private funding but also experience regarding alternative financing schemes, such as cooperatives, all clusters underlined the importance of building capacity on designing effective Business Models, with a particular focus on energy efficiency projects. Category D: New Technologies Regarding new technologies, the need for development of better IT/GIS planning tools and data bases but also E-solutions concerning electric ferries and vehicles featured in most clusters’ identified areas. Category D: New Technologies Regarding new technologies, the need for development of better IT/GIS planning tools and data bases but also E-solutions concerning electric ferries and vehicles featured in most clusters’ identified areas. Category E: Smart Grids Particularly for Smart Grids key issues that emerged within clusters related to the potential of this technology to increase the total RES capacity absorbed by island grids and the extent to which smart grids, coupled with energy storage can boost grid stability. Category F: Permit Processes Acquiring Permit Processes was identified by clusters as quite burdensome, causing in many cases significant delays or even bringing sustainable energy projects to a stalemate. For this, clusters expressed the need to learn more about how more efficient coordination between different levels of administration or different authorities can make the permit process faster.

Priority area category Categories of barriers Slow integration of electromobility Mobility Lack of integrated planning infrastructure Knowledge and results not or badly communicated Communication Poor community involvement and shared ownership State funding dependancy Business Models Innovative financing mechanisms usually remain a theory Low integration of ICT and other innovative solutions New Technologies Slow maturation process - Demos do not scale up Limited capacity of inter-connections Smart Grids Lack of exploitation of the energy storage potentials Top-down RES spatial planning Permit Process Slow modernisation of legislative framework 2.4 Capacity development – The structure After completing the preparatory work of Further, capacity building facilitated the identifying priority areas, the SMILEGOV outreach to newcomers, i.e. island author- partnership designed and implemented a ities, experts, and other actors with an in- range of capacity building activities. Capac- terest in local sustainable energy planning ity building was at the heart of SMILEGOV also through the promotion of e-learning and was undertaken in different ways tools. Last but not least, capacity build- (plenary and local workshops, field trips, ing served the exchange of knowledge distant e-learning, bilateral meetings) tar- between advanced islands belonging to geting different audiences each time. the same region, laying the necessary Four plenary workshops were hosted by foundation for intra-regional collaboration the more advanced partners, who trans- in areas of common interest. ferred knowledge to the less experienced This trans and intra-regional exchange fos- ones, helping them unlock the elaboration tered the European identity of SMILEGOV, and implementation of sustainable action by bringing to the fore problems that were plans or projects. In between plenary representative of each geographical area, workshops, cluster leaders held local work- all while underlining the existence of com- shops involving their members and other mon barriers across regions and the need experts and interested parties. On top of for joint action to overcome them. these, some cluster leaders held bilateral meetings with island municipalities providing them with hands-on experience and resolving issues that emerged within sustainable energy planning on an ad hoc ba- CAPACITY sis. The succession of local workshops and plenary workshops was not coincidental; it DEVELOPMENT was planned ahead and served the purpose of providing plenary workshops with input • plenary workshops developed during the local workshops and vice versa. Cluster leaders brought with • local workshops them in the plenary workshops specific • field trips challenges and barriers their cluster was facing, discussed those with their coun- • bilateral meetings terparts, received valuable feedback and insights, which they then channeled back • e-learning platform to their cluster members through local workshops and bilateral meetings.

2.5 Capacity development – The tools To proceed with the actual transfer of development, since they provided hands- knowledge and building of capacity among on advice on how to overcome barriers to the leaders of less experienced island sustainable energy planning and project clusters, Scandinavian partners produced management. For the development of this a diverse set of methodological tools. material real-life examples were used, These tools were instrumental in capacity in order to inspire island authorities and provide them with concrete guidance on later as input for the production of the Map with the 7 good practices how to ensure smooth development and Strategic Guidelines, a very important delivery of sustainable energy projects and tool aimed to assist the less experienced plans and build trust, overall, in the impor- islands in enhancing multi-level cooper- tance of local action for islands’ sustain- ation, overcoming barriers and actually able development. implementing sustainable energy projects. 2.5.1 Good practices on enabling 2.5.2 Strategic Guidelines conditions for good MLG Following the collection of successful proj- Inspiration is the source of productive and ects to inspire and energise the SMILEGOV fruitful action! With this in mind 7 case partners, cluster leaders from Scandinavia studies from the SMILEGOV family were developed the Strategic Guidelines (SGs). selected and presented in the form of fact- The SGs represent the most important sheets. These are projects and processes capacity building tool, since they are a that can be relevant for other islands constellation of practices and experienc- and sometimes other mainland regions es that have proved instrumental in the too. Emphasis was placed on results and successful planning and implementation of lessons related to multi-level governance, sustainable energy plans and projects at since multi-level governance was referred the local level. The SGs pointed to the fact to, early in the project, as a precondition that barriers to sustainable energy plans for effective sustainable energy planning and projects are most often the result and project development at local level. of weak multi-level (MLG) processes. To address this reality the SGs provided local The 7 good practice factsheets were used authorities with substantive information on how to improve efficiency in the coopera- energy plans and projects. The guidelines tion between administrations of different were based on the experience of the SMI- levels and strengthen the inclusion of all LEGOV good practices and the extensive other concerned stakeholders for different experience of the Scandinavian “task force” priority areas and in different timeframes. in multi-level cooperation. The SGs also proposed steps to be taken to The following logical diagram depicts the ensure robust project development, since structure of the SGs. Starting with the this was identified as a horizontal need identification of the problems / barriers and shared by all partners. applying specific solutions for enhanced The SGs are comprehensive as much as and well-functioning MLG it is highly likely easy-to-read, managing to convey key that plans and projects are implemented. transferable lessons that can reinforce smart MLG in the European islands to foster effective implementation of sustainable

Solutions for enhanced MLG Establishing to overcome to overcome Identified new MLG barriers in different barriers in different collaborations Priority Areas priority areas timeframes

Analysed Moving iSEAPs Sustainable forward Energy Projects Solutions for enhanced project development Logical Framework Approach Analysed Moving Sustainable iSEAPs Problem tree and solving tree Energy Projects

Critical chain project management

2.5.3 Toolbox to support project de- 2.5.4 E-learning platform velopment Another important capacity building tool To complement and further build on the produced by SMILEGOV was the e-learning SGs, a toolbox was created to provide platform, “Energy Academy 2020”, used step-by-step guidance on four key topics: for distance learning by island authorities overcoming MLG barriers, making use of in- interested in signing the Pact of Islands as novative financing tools and strengthening well as other actors with a special interest stakeholders’ engagement and analysing in sustainable energy planning and project projects’ bankability. Overall the toolbox development. Greenhouse gas inventory, served as a useful source of knowledge for Sustainable energy planning (iSEAP), Sus- SMILEGOV cluster leaders and sustainable tainable mobility planning and Stakehold- energy project managers and an incentive ers’ involvement were some of the topics to be more open-minded when designing available on the platform. sustainable energy projects and plans. 1.Guide on Overcoming 2. Guide on Innovative 3. Guide on Stakeholders’ 4. Project Bankability MLG Barriers: Financing Mechanisms: Analysis: Analysis template: This guide was an effort The guide responds to the Effective stakeholders’ This was a spreadsheet to provide short and need to secure financing engagement has been template provided to as- consistent step-by- for sustainable energy proj- recognised by all partners sist the initial financial as- step guidance on how ects, by offering alterna- as a key factor for suc- sessment of a sustainable to overcome barriers tives to more mainstream cessful implementation of energy project provided confronted during the funding sources, which sustainable energy projects that the main energy and planning or development are now more difficult to and plans. Therefore a cost figures of the project phase of sustainable access due to constrained guide on the approach and are known. energy projects that are public budgets. The guide the methods of mapping linked to structures of presents four innovative and eventually engaging multilevel and multilateral financing mechanisms, stakeholders as a means to governance (MLG). namely energy coopera- ensuring transparency and tives; energy performance sustainability of sustainable contracting; public private energy projects and plans partnerships; and crowd- proved very useful to the funding. project partners and the cluster members in particular, as highlighted during the local workshops.

E-learning was prioritised given the geo- like the DAFNI and ESIN clusters, travelling graphical scattering of islands within the between islands was considered costly clusters and was indeed a good solution for and time-consuming due to the rare ferry training people who are dispersed in more connections, especially in winter. than one place and/or in remote places. Especially in clusters with many islands

http://www. energyacademy2020.eu/ 2.6 Capacity development – The activities 2.6.1 The plenary workshops 1ST PLENARY WORKSHOP – GOTLAND, SWEDEN The Scandinavian partners, with valuable insights on how to set up effective September 2013: The first plenary work- multi-level cooperation structures to facili- shop identified barriers within islands’ tate the deployment of innovative sustain- sustainable energy plans and policies and able energy projects on islands developed suggested solutions on how to overcome a training plan for the cluster leaders, them. The participants worked in groups which unfolded in 4 plenary workshops. and assessed their findings in plenary. Participants were very satisfied from this first plenary workshop as can be demon- Img 3: Group working strated from their feedback Img 4: Group working

“We managed to “Sharing experiences “The workshop identify common can change my created activity, values and priorities perspective and curiosity, knowledge that’s a first good improve my approach” and a will to learn step to collaborate” more” “The workshops were “Efficiently performed characterized by “Our differences workshop well used activity, curiosity and are what unite us time, not long and ingenuity” to work on island´s boring” sustainability”

3 4 5 6

2ND PLENARY WORKSHOP – SLIEMA, MALTA Approach, a methodology that has been Img 5: Filipe summarising Img 6: Tommy summarising April 2014: The second plenary workshop developed specifically for the overcoming was structured in the form of a living lab, barriers and enhancing project develop- where participants materializing on a part ment. of the Strategic Guidelines applied in a step Participants found the workshop useful and by step process the Logical Framework provided positive comments

“We had very honest, “The workshop “Avoid the emergence open discussions in Malta was a instead of trying to thanks to the trust breakthrough for overcome barriers; and respect we have open and honest good project planning for each other” discussions where is the way.” we were able to find new ways of working together.” Img 7: Michael supporting the group Img 8: Christian giving feedback

7 8 9 7 10 8

3RD PLENARY WORKSHOP – SAMSØ, DEN- with the use of innovative, participatory Img 9: Søren facilitating the MARK engagement methods such as open space open space session Img 10: Kostas facilitating a and shared space. More than 15 partici- October 2014: The third workshop focused shared space session on the principles, purpose and most ef- pants from the clusters and outside the fective way for a local authority to engage consortium joined the workshop. stakeholders in the process of energy plan- This workshop was the most intense and ning and project implementation. The day well perceived by participants, who were was dedicated to knowledge and experi- very enthusiastic with the experiential ence transfer on stakeholders’ involvement nature of the process and the knowledge in energy planning, where participants acquired. had the chance to explore and experiment

“The technique was “Gained incredible the most interesting knowledge and met thing – Ideas and interesting people” “Interesting new proposals” ways of dealing “Very good, and the with stakeholders, “The shared/open improvisation was colleagues, citizens space concept also part of the game and other groups were represents a useful to focus attention on practiced” tool to install a the discussion” constructive dialogue “Very pleased with the “It opened up my between all actors workshop approach, perspective and gave towards solving a useful for future me an inspiration common issue and meetings as it keeps to do things in this was the most the participants a different way powerful and useful engaged within the organizing workshops” part of the workshop” conversation” 11 12

4TH PLEANARY WORKSHOP – MADEIRA, (Coops) and Private Public Partnership Img 11: Søren facilitating the PORTUGAL (PPP)) for sustainable energy projects open space session in islands. All participants joined all four Img 12: Kostas facilitating a March 2015: The fourth and final plenary shared space session workshop took focus on identifying and tables and for an hour tried to come up overcoming barriers related to project with essential steps to set up the financing financing. Lively and informative discus- of a model project. Members of the task sions revolved around four innovative force facilitated the work on the tables. At financing mechanisms (Energy Perfor- the end of the work in groups participants mance Contracting (EPC), Crowd-funding came together to assess their findings. / Crowd-lending, Energy Cooperatives

“We could feel that we now have developed “This collective way good capacity building of working and activities together brainstorming helped and that the plenary me a lot to think in workshops work better real conditions how and better” to gradually build up processes to result to “A very active “Yes it is always a successful financing” workshop where important for small participants expressed regions and islands to “The workshop their enthusiasm to find ways and means created activity, share more knowledge on how to tap into commitment, and gain more insight funds to generate knowledge and a will to help them build up capitals to finance to learn more” their specific projects” projects.” 13 Img 13: Kaj taking notes at the Crowdfunding table Img 14: Filipe facilitating at the EPC table Img 15: Johan taking notes at the PPP table

The final plenary workshop in Madeira capitalized on the extensive work and accumulated knowledge of partners in 14 the previous period concerning the first steps of sustainable energy planning and project realization (identifying and overcoming barriers, engaging stakeholders) and introduced participants to innovative financing options. This was welcomed by participants who felt they were then better equipped to digest this information and use it effectively in their projects and local activities.

Img 16: Participants taking notes

16 17 18

2.6.2 The local workshops building activities together with other Img 17: Local workshop – stakeholders received training, experi- Cluster of Estonia Coming back from plenary workshops, mented with new tools and In total 346 Img 18: Local workshop – cluster leaders were full of ideas and Cluster of Scotland trainees were identified for the local ca- knowledge to share with their members! Img 19: Local workshop – pacity building activities with 312 of them During local workshops island authorities, Cluster of Cyprus joining the Energy Academy 2020. Img 20, 21: Local workshop the primary target groups of these capacity – Cluster of Greece

20 21 2.6.3 The task force workshops 2.6.4 The study visits Scandinavian partners held 3 regional The consortium partners had the chance to workshops to exchange ideas, develop exchange knowledge through study visits common strategies and plan joint initia- during the project meetings but also on a tives. The most important outcome is the bilateral basis through physical meetings joint development of a strategy for the (islands visiting islands) or distant tech- promotion of biogas in all Scandinavian nical support on specific topics where one islands, since these represent areas with partner was more competent than the oth- significant biomass potential as a result of er. The meetings in Gotland, Malta, Samsø farming and livestock activities. Goltand’s and Madeira gave plenty food for thought valuable experience in the use of biogas for to the participants. On top of that the visit transport and Samsø’s in district heating of the small Swedish islands to Samsø and respectively inspired Oland to embark on the visit of the Estonian islanders to the this journey of biogas development. Now Scottish ones strengthened the bonds of the three islands are together in this effort, the islands family. Img 22: The wind park in planning projects together for the benefit south Gotland of their islands’ local economy. Img 23: The biogas plant in Gotland Img 24: Inside the Sustainable Living Centre in Malta Img 25: Outside the Sustainable Living Centre in Malta Img 26: The straw district heating plant in Samsø Img 27: The large PV on a foggy day in Madeira Img 28: The reverse hydro in Madeira

22 23 24 25

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28 The straightforward desired project development process 2.7 Capacity development – The bankable projects With their knowledge and experience financing schemes. From the promotion 1 Based on the Otto Scharmer significantly enhanced in the course of the of electric vehicles and relevant infra- U theory intensive and productive capacity building structure, efficient street lighting, biogas activities, partners were then in a position for transport and heating, desalination to capitalize on the lessons learnt and help with wind and hydro plants these projects their members give life to their sustainable demonstrate the potential of islands to energy projects! In total SMILEGOV assisted act as test beds for innovative sustainable 56 sustainable energy projects to move energy projects that can bring long-term along the U-curve1 (see diagram) or in benefits to island economies and local other words make some good steps along population. the usually not straight line towards the For the project with the most significant projects’ realisation. progress and in the best position to secure Some of these projects were already part financing each cluster leader prepared a of the partners’ portfolios whereas others shining factsheet which is presented in the emerged as a result of SMILEGOV. In each Results and Impact chapter. Finally, in or- cluster, the projects were selected against der to crystallise this project development a number of criteria, i.e. level of maturity experience all cluster leaders prepared (e.g. pre-feasibility level), link with cluster Manuals for Sustainable Energy Projects priorities (in terms of technology and Implementation and shared them with scale), degree of complexity, levels of ad- their cluster members. ministration involved etc. For each project specific barriers were identified and actions were undertaken to overcome them on the Evaluation of technical and financial studies basis of analyses that included the follow- Regular meetings with all involved actors ing points: Examination of financing schemes available The identified bankable projects cover a Stakeholders’ analysis wide range of innovative technologies and

The straightforward desired project development process Project Project Initiation Completed

The U-curve project development concept

T he rve ac -cu p tual rth U s roj back and fo es ect proc development MULTILEVEL SMILEGOV GOVERNANCE 28

3. Results and Impact

3.1 SMILEGOV doubles the number of Pact of Islands signatories The approach and methodology that island authority representatives and other SMILEGOV applied was founded on a basic stakeholders with a special interest in premise: the need to set up a structure sustainable energy planning and project that catalyzes the exchange of knowledge development but also through plenary between islands of different capacities workshops, focusing on relevant knowl- acting on different administrative levels edge transfer from the more experienced through intensive capacity building. The to the less experienced SMILEGOV partners. process of developing capacities among Further capacity building was promoted partners and cluster members bare sig- with the establishment of the SMILEGOV nificant and tangible results, creating an e-learning platform which served the important precedent for sustainable local purpose of extending the outreach of the development in islands. project to actors from insular, coastal but Capacity building activities were tailored also mainland areas within and beyond to priority areas identified by each cluster Europe who have an interest in sustainable and focused on capitalizing strengths and energy planning and project implemen- tackling weaknesses. They were structured tation. Apart from building knowledge at in a way that provided cluster leaders with a more strategic level, capacity building recurrent feedback on their usefulness served a more operational purpose, that of and the need for adjustment in light of helping 50 identified bankable projects in emerging needs. More specifically, capacity the different islands make significant steps building was promoted through local work- forward. shops and bilateral meetings, targeting 3.2 SMILEGOV shinning sustainable energy projects In what follows 12 shinning sustainable 4. Local greenhouse farmers, the main energy projects, one per cluster leader, business of the area, who object to which had significant progress along the the project in fear of not being able to U-curve during SMLEGOV are presented. exploit privately the geothermal field The key energy and budget figures, the for their own profit. adopted MLG structure and the role of each 5. Local citizens: Can benefit from the ac- player but also the recommended mecha- cess to low cost heat for their houses. nism for their financing are highlighed. 6. Private investor: Investing in the pilot 3.2.1 Geothermal District Heating – project and demanding at least part of Lesvos, Cluster of Greece this capital to be returned to him from Project Short Description the operation of the network. The project is about extending and operat- 7. Academic institutions: Members of ing an existing non-operational pilot dis- the pilot project consortium who have trict heating network which uses as source significant research interest on the of heat a geothermal field in the town of successful operation of the project. Polichnitos in Lesvos. The dubious owner- Recommended financing mechanism ship scheme of the installation together Shared ownership and financing through with the reaction of local stakeholders put the establishment of a common purpose the project in a permanent hold. With the support of the SMILEGOV the project has PROJECT INDICATORS demonstrated significant progress with Estimated investment costs [€]: 2M the involved parties having reached good Expected CO2 reduction [ton/year]: 1694 consensus regarding the next phase of the Expected RES production [MWh/year]: 6345 pilot project after realising the win-win Expected energy savings [MWh/year]: 0 conditions of the project. The local society and stakeholders have been engaged to the project and a good maturity has been reached regarding the ownership and funding scheme. The MLG structure The different key actors involved in the National level project are: - Ministry of Energy 1. Municipality of Lesvos: Has the single - Private Investors right to exploit the geothermal field - Financing Institutions and currently paying an annual fee to the state but has no benefit. Regional level 2. Region of North Aegean: Approves the - Region of North Aegean use of the geothermal field and moni- - Acacemic Institutions tors the good operation of it and issues Local Level environmental licenses. - Municipality of Lesvos 3. Ministry of Energy: Has assigned to the - Greenhouse farmers Municipality the right to use the geo- - Citizens thermal drill until the end of 2015. MULTILEVEL SMILEGOV GOVERNANCE 30 legal entity with participation of the private experience for its maintenance, the Munici- investor (partial owner of the pilot infra- pal Development Company of Lesvos (own- structure), that has already invested in the er of the drill), the greenhouse farmers and pilot project and has significant technical the local society through a cooperative.

3.2.2 Offshore Marine Energies De- orities and makes decisions on a wide velopment – Isle of Man, Cluster of range of regulatory matters, including CPMR price controls and enforcement. 4. Manx utility: Statutory Board of the Isle Project Short Description of Man Government sponsored by the The IoM offshore marine energy park has Department of Infrastructure, respon- two components: a marine energy (mostly sible for supplies of electricity, natural wave energy) component and an offshore gas and clean water; processing waste wind component. For the marine energy water, and delivering flood risk man- part of it, there is an evaluation under agement services. Operates energy way to identify the best sites for future trading enterprise and two subsidiary development. Regarding the offshore wind businesses (commercial telecommuni- development, it is concluded that due to cation and subsea cable). the size of the investment it is important 5. ECO VANNIN NGO: consists of a group to engage a big investor. The major issue in of local environmental organisations the was the intergovernmental negotia- that have partnered with key IoM Gov- tions between the IoM government and ernment departments and the Manx the UK government, as well as OFGEM, the UK energy regulator, in order to allow the PROJECT INDICATORS offshore wind energy produced in IoM terri- Estimated investment costs [€] 20M tory to access the UK power market. Expected CO2 reduction [ton/year]: 28305 Expected RES production [MWh/year]: 45000 The MLG structure Expected energy savings [MWh/year]: 0 1. Isle of Man Government: exploring the opportunities for generation of offshore wind and tidal energy and inviting expressions of interest from parties seeking to develop offshore energy production in Isle of Man territorial seas. International level 2. UK Government: National level author- - UK Government: Department ity notably determining legal frame- of Energy work of energy market regulatory office in accordance with EU directives. UK regulator: OFGEM - Citizens 3. OFGEM: Office of Gas and Electricity Markets. Non-ministerial government department and independent National National level Regulatory Authority, it is independent - Ministry of Economic Development of, government, the energy industry - Manx Utility and other stakeholders within a legal - Private Investor - Danish Energy Co. framework determined by the UK -NGOs: Friends of the Earth, government and the European Union. ECO VANNIN , Energy Advisory Service It determines strategy, sets policy pri- Utilities Authority to coordinate and information. develop environmental initiatives and Recommended financing mechanism projects. The project needs an estimated investment 6. Friends of the Earth NGO: Partner of 2 billion GDP per site and has potential of ECO VANNIN, participation in the investors in place. Once the governance multi-stakeholders /multilevel dialogue barrier is overcome and that the access to 7. Manx Energy Advisory Service: inde- the UK power market for export and sale pendent charity promoting energy con- from the wind power sites is guaranteed, servation, the use of renewable energy the potential investors can minimize their and providing independent advice and financial risks.

3.2.3 Deployment of Biogas infra- tation period, 400 buses, to run on 100 structure – Öland, Cluster of Sweden % renewable fuels. Project Short Description 3. Smålänska Bränslen AB: The enterprise who will build the first filling station on During the last years there has been great Öland, situated in Mörbylånga in the progress within biogas on Öland, and this south of the island. goes for the whole chain through distribution, consumption and production. In the 4. Local farmers and investors: The main period of 2017-2027 the regional buses, actors in the process of starting and including school buses, will most likely run operating the biogas production and on biogas. Furthermore in Mörbylånga is having a good relationship with farmers has been decided to change for 20 biogas PROJECT INDICATORS vehicles in the public fleet. For Mörbylånga Estimated investment costs [€] 10,7M Expected CO2 reduction [ton/year]: 8000 there is an agreement signed to establish Expected RES production [MWh/year]: 20000 the first filling station for biogas on Öland. Expected energy savings [MWh/year]: 0 This opens up the startup of a new section among the green businesses and a sustainable income for local farmers. Both in Borgholm and in Mörbylånga local farmers are planning to start production of biogas. Matching the demand with the production in the right timing and space has been a significant challenge in Öland. The Gotland National level experience transferred through SMILEGOV - Private Investors to Öland was a great inspiration. - Smålänska Bränslen AB The MLG structure 1. Municipality of Mörbylånga: Has the role is to investigate and bring forward Regional level the possibilities for biogas on Öland - Regional administrative Board and to gather stakeholders to discuss - Kalmar public transport, KLT cooperation and allocation of responsi- bilities. Local Level - Municipality of Mörbylånga 2. KLT: The public transport operator in - Local farmers and investors Kalmar County is currently opening up - Kalmar public transport, KLT the procurement for the new transpor- MULTILEVEL SMILEGOV GOVERNANCE 32

1. is crucial. ing model. It is a great complicated puzzle 2. Regional administrative Board: The which demands each actor to take its board administers national funding for responsibility to create the whole picture. biogas development and investments All partners must feel they gain something in biogas plants. by cooperating and there is also a driving force in speaking out load about the green Recommended financing mechanism approach and being part of a climate For biogas market development a PPP is friendly society. the most appropriate and win-win financ-

3.2.4 Sports hall in Visby with solar the energy companies when it comes energy – Gotland, Cluster of Sweden to combining district heating and solar water heating. Project Short Description 4. Swedish Energy Council: Partly financ- The new sports hall was built in Visby and ing of PVs and guidance combining dis- inaugurated in autumn 2015. For heating trict heating and solar water heating. of hot water and heating of the building both district heating and solar heating are 5. Sports organizations: Regulation at used. The idea was to use the district heat- both national and international level. ing system as a hot water accumulator for Recommended financing mechanism the solar water heating system. One of the To be able to complete a project like the biggest issues to resolve was how to mea- sports hall there are several financing sure and handle distribution of hot water to the district heating grid and to buy hot PROJECT INDICATORS water when needed. To handle this, a new Estimated investment costs [€] 9,6M economic and practical setup between the Expected CO2 reduction [ton/year]: 3 management of the building and the grid Expected RES production [MWh/year]: 24 owner was needed. To complement the Expected energy savings [MWh/year]: N energy production within the building an array of PVs are used to produce a majority of the electricity needed in the months of May to September. The MLG structure 1. Region of Gotland: Establishment of and permission for a new district plan National level and building permissions and financing - Government of Sweden - Swedish Energy Council: 2. GEAB (local energy company): Provi- sion of district heating and help with planning of the solution to combine district heating with solar water heat- Regional level ing. - Region Gotland - Sports organizations 3. Government of Sweden: In the phase of establishing laws on how to regulate Local Level - Region Gotland - GEAB - Citizens structures that need to be addressed: preferred to manage a lasting set up for Regional funding taking into account the the system. costs for running the building compared to National funding for PV installations. the income from the sport organisations Income from solar produced electricity and events. compared to savings through net-meter- The tariffs for the district heating and ing. selling and buying hot water for heating must be calculated. A win-win situation is

3.2.5 Combined Heat and Power Recommended financing mechanism production – Vormsi, Cluster of Esto- The recommended financing mechanism nia will be a local owned model where local private investors will be organized in a Project Short Description private company structure. It will be inves- Vormsi Commune has an old firewood tigated if it is possible to create a coop- boiler for more than 15 years, which needs owned structure allowing large and small replacement. This boiler provides heating owner ships in the project. Also it should to all houses of the commune (~1500m2) be noted that the biogas plant will be co- and this is too expensive because of the ordinated with the Vormsi Municipality that related handwork and repair. The plan is will be biggest buyer of the heat. to replace the old firewood boiler with 2 small Combined Heat and Power (CHP) producing electrical power of 90 kW and PROJECT INDICATORS heat power 200 kW. The two CHP plants Estimated investment costs [€] 0.44M are fueled by woodchips which is also very Expected CO2 reduction [ton/year]: 0 good, because ~60% of the island is forest Expected RES production [MWh/year]: 2200 Expected energy savings [MWh/year]: 0 area. Investment is 400 000 – 450 000€, which is a significant amount for a small commune. For this, a cooperative will set up, which faces some difficulties due to -Es tonian law. SMILEGOV partners with extensive experience in setting up and operating cooperatives provided useful support. The MLG structure National level 1. Smart Vormsi NPO: Will manage the -National Environmental Board project through all its stages and will seek to create a coop-owned structure 2. Municipality of Vormsi: Will be manage Regional level the planning process and will be the largest customer 3. Local farmers: Will provide biomass for the CHP plant and may join the coop Local Level 4. National Environmental Board: Respon- - Smart Vormsi NPO sible for approving the environmental - Municipality of Vormsi impact assessment process - Local farmers MULTILEVEL SMILEGOV GOVERNANCE 34

3.2.6 Small wind tyrbine – Keistiö, pacity to heat the community house. Cluster of ESIN However, there had been opposition and barriers on the way, not only at local but Project Short Description also regional and national level. Resistance Keistiö is a small island which is part of has been overcome with the help of SMILE- the Iniö former municipality, since 2012 a GOV and the project has now been realised. part of Pargas town (= municipality). There are 210 inhabitants in Iniö, 1,000 summer PROJECT INDICATORS residents and 17,000 visitors/year. On Estimated investment costs [€] 25k Keistiö, there are 44 inhabitants (only one Expected CO2 reduction [ton/year]: 5 Expected RES production [MWh/year]: 5 is a child). When the community was made Expected energy savings [MWh/year]: 0 a part of Pargas, street lighting wasn’t integrated in the new organisation. For the Recommended financing mechanism island of Keistiö, this was a big cost until the old gas-bulbs were changed into 40 The funding solution is a 75% grant from LED bulbs. An idea came up to get a wind the local Leader program (of a total invest- turbine to produce local electricity to the ment of 25,000€) and the rest as volun- street lights, to sell over-capacity locally tary, local work. The turbine was raised on and to use the income from the over-ca- the 11th of September 2014.

Building, installation + maintance support The MLG Structure Local energy EUROPEAN enterpreneurs Local Environmental European LOCAL Union community + financial sup- council Political support port

National National Small /regional government island bodies Islans organisation

Municpality Regional administration government Regional + rep’s bodies Local planning energy directives agency REGIONAL Techicalsupport 3.2.7 Biogas plant – Samsø, Cluster Recommended financing mechanism of Denmark The recommended financing mechanism Project Short Description will be a local owned model where local private investors will be organized in On Samsø the Municipality has built a new a private company structure. It will be ferry that can run on marine diesel and investigated if it is possible to create a LNG gas. Therefore is has been investigat- coop-owned structure allowing large and ed how a locally owned biogas plant can small owner ships in the project. Secondly be established to produce LNG gas to the the biogas plant will be coordinated with ferry. Furthermore the biogas has to be the municipal ferry company that will be upgraded to LNG gas. one of the buyers of the biogas – in order The project is in the stage of feasibili- to up-grade the biogas to LNG. ty studies. Calculations concerning the amount of biomass are being conducted The MLG Structure and cooperation has been established between Samsø Energy Academy, the municipality and local investors and stakeholders to investigate different business models National level and funding schemes. -Department of Environmental Licencing -Private investors -Shipyard PROJECT INDICATORS Estimated investment costs [€] 5,8M Expected CO2 reduction [ton/year]: 90400 Regional level Expected RES production [MWh/year]: 1600 -Port authority Expected energy savings [MWh/year]: 34000 Local Level -Farmers -Waste management company -Local Investors -Municipality of Samsø -Samsø Energy Academy

3.2.8 Multi-megawatt wind turbine During SMILEGOV period MEGATURBINAS – Gran Canaria, Cluster of Spain has launched an international call for “Expression of interest” in developing R&D Project Short Description projects in the port of Arinaga. Meetings The harbour of Arinaga, at the south west have been held with manufactures for an coast of Gran Canaria, is a good site for on- agreement on the technical and economic shore wind turbine installation operating conditions for the use of the testing site. in off shore conditions. ITC, together with The manufacture ADWEN (Joint venture the Port Authority and the Gran Canaria between GAMESA and AREVA) will start Island Council set up MEGATURBINAS, a testing an 8MW turbine in the port of Arina- consortium interested in attracting man- ga by 2016. ufacturers for new wind turbines testing. MULTILEVEL SMILEGOV GOVERNANCE 36

The MLG structure ested in the certification of their new 1. MEGATURBINAS: Will lead the admin- machines. istrative procedures for installing the Recommended financing mechanism new wind turbines on the harbour. The manufacturer that will be testing 2. Las Palmas Port: The authority respon- the new wind turbine needs to pay for sible for licensing the installation of the complete installation of the wind the infrastructure. turbine: transport, mounting, operation, 3. Regional Government: Issuing the maintenance. Once the wind turbine is in environmental and industrial activity operation it will be injecting the electricity licences. produced into the insular electrical grid. This energy sold to the electrical grid will 4. National Agency for Aerial Security: be paid at the normalised fee, representing Authorising the installation since the the revenue streams of the manufacturer. testing platform is located in the air- MEGATURBINAS will charge a fix fee for the port approach area. use of the platform and it will also get a 5. Electrical Grid operator (REE): Re- percentage of the incomes from the energy sponsible to develop the needed grid sales. infrastructure to absorb and control the electricity produced by the new PROJECT INDICATORS Estimated investment costs [€]: 20M wind turbine. Expected CO2 reduction [ton/year]:15400 6. Wind turbine manufacturers: The final Expected RES production [MWh/year]:40000 users of the testing platform inter- Expected energy savings [MWh/year]: 0

National level - National Agency for Aerial Security - Wind turbine manufacturers

Regional level - Regional Government: - Electrical Grid operator

Local Level - MEGATURBINAS - Las Palmas Port 3.2.9 Energy efficiency on street Recommended financing mechanism lighting – Madeira and Porto Santo, The ESCO model is an adequate tool for Cluster of Portugal and Cape Verde street lighting in many cities. However, the lack of experience of municipalities is a Project Short Description significant barrier to overcome. On the oth- The project aims to increase the energy er hand, some municipalities are too small efficiency of street lighting in Madeira and to have attractive projects for an ESCO. Porto Santo Islands. It includes the follow- This process with municipalities showed ing main activities: guides and regulation; that the typical ESCO contract is too com- data collection and database improvement plex for many municipalities and they are to include efficiency attributes; identifi- not confident with the legal aspects and cation of street lighting needs; control business model. As EEM is a public com- systems (dimmers, timers, light cells, pany and AREAM a non-profit organisation, IR sensors, on demand); high efficiency the process was successful by adopting a luminaires, lamps and ballasts. AREAM model with transparent costs and savings. and EEM (electricity company) will identify sources of financing to support the actions. For the future, it is recommended that EEM, The investment costs supported by EEM IPM and AREAM contract the services to an and AREAM’s costs that are not supported ESCO to proceed with the action in a faster by any fund or grant will be charged to IPM way so as to improve energy efficiency and (municipal association for street lighting) reduce costs of energy to municipalities. during a 5 year period with an amount less than the financial savings from energy PROJECT INDICATORS efficiency to provide a positive impact from Estimated investment costs [€] 4,5M the beginning. Expected CO2 reduction [ton/year]: 15500 Expected RES production [MWh/year]: 0 The MLG structure Expected energy savings [MWh/year]: 22000 1. AREAM: To support the technical and financial maturation of the project 2. EEM: To take over the implementation of the actions and financing 3. IPM: To represent all municipalities of the association.

Regional level - AREAM - ΕΕΜ Local Level - IPM MULTILEVEL SMILEGOV GOVERNANCE 38

3.2.10 Upgrade of the street lighting to be the contracting authority in favour of in 20 local authorities, Cluster of the 20 local authorities and was launched Cyprus the call for tenders for Energy Performance Contracting. Project Short Description Recommended financing mechanism The project “Upgrade of the street lighting The project is based on Energy Perfor- in 20 local authorities in Cyprus” concerns mance Contracting (EPC) where an Energy the territories of twenty (20) Local Author- Savings Company (ESCO) implements the ities in several locations and districts of project to deliver energy efficiency. The Cyprus and covers urban, rural and touristic Local Authorities will use the cost savings areas. The total number of existing lighting to repay the costs of the project to the that will be replaced with new lighting ESCO, including the costs of the invest- technology Light Emitting Diode (LED) are ment. Essentially the ESCO will not receive 55.940. During the life of SMILEGOV, the its payment unless the project delivers the Cyprus Energy Agency (CEA) acted as a facilitator and technical assistant to support PROJECT INDICATORS the project. CEA, managed to overcome the Estimated investment costs [€] 20M important barriers of the project by en- Expected CO2 reduction [ton/year]: 598,8k hancing the involvement of competent au- Expected RES production [MWh/year]: 0 Expected energy savings [MWh/year]: 1840k thorities and stakeholders. In August 2015, The MLG Structure the Cyprus Energy Agency was authorized Ministry of Energy, Commerce, Industry Police Treasury of Cyprus and Tourism Defining requirements Establishment of the for the level of Competent legal framework luminance of safety Authority for Public ESCO’s and EPC

Cyprus Local Energy Authorities Agency

Beneficiaries Technical Expertise Facilitator Responsible Political Approval Contracting Authority Electricity Ministry for local Supplier and authorities street lighting Access to the maintance electricity Grid Electricity Ministry of Cyprus Distribution Authority of Interior System Operator Cyprus 3.2.11 Retrofitting Road and Street in Gozo. Lighting by Smart Lighting, Cluster of 5. Department of Local Government: Malta Responsible for local councils and will therefore will liaise with the Local Project Short Description Councils Association (LCA) and the The project proposed included retrofitting Gozo Regional Council. by LED street lighting and the implemen- 6. Local Council Association: Will be tation of Smart Lighting System. This responsible together with the GRC of involves two pilot projects that seek to organising meetings with the Gozitan implement street lighting energy efficiency local councils and will also assist measures in Malta and Gozo. The interven- Gozo local councils in organising local tions focused on retrofitting street lighting awareness campaigns. by LED luminaries in the Gozo Pilot Project which took place in most roads and street Recommended financing mechanism lighting. The other pilot project took place The fact that lighting has been replaced in Malta in specific stretches. This project by LEDs maintenance costs and time are required the retrofitting of street lights by reduced considerably. However, for the LED and the implementation of a smart Gozo lighting the Gozo Regional Council is lighting management system (including to take care of the lamps where neces- dimming and lighting network manage- sary. The recommended mechanism is a ment and control). public – private partnership with both sides The MLG structure splitting the savings. 1. Ministry for Energy and Health (MEH): The main leader of this project and PROJECT INDICATORS Estimated investment costs [€] 3,1M will also have the main person in the Expected CO2 reduction [ton/year]: 1500 project review board. Expected RES production [MWh/year]: 0 Expected energy savings [MWh/year]: 1888 2. Transport Malta: The entity coordinat- ing the implementation of the Malta pilot project and will therefore be actively involved in all stages of the project. 3. Gozo Regional Council: Currently responsible for the local enforcement system and will soon be responsible National level for street lighting. - Ministry for Energy and Health - Transport Malta 4. Ministry for Gozo: Responsible for arterial and distributary street lighting Regional level - Ministry for Gozo - Gozo Regional Council

Local Level - Local Council Association - Department of Local Government 3.2.12 Assisting Communities to electricity consumers on Mull. Connect to Electric Sustainable 3. Community Energy Scotland: Acted as Sources (ACCESS), Cluster of Scot- project coordinator, establishing the land external members of the partnership, and enabling an interface with national Project Short Description regulators, government departments, At the start of the SMILEGOV project, the and other community groups. ‘Assisting Communities to Connect to 4. VCharge: Key technology provider, by Electric Sustainable Sources’ (ACCESS) designing and operating the demand project was at the conceptual stage, with side management (DSM) system. only the key partners of Mull and Iona Community Trust and Community Energy 5. Element Energy: Specialist low carbon Scotland identified. It has since progressed energy consultant, to assist in project to include a complete project partnership design, reporting and data verification. with a secured funding package, confirmed 6. SHEPD: Network operator, key stake- interest from over 100 households in par- holder for permitting trial to take place ticipating, agreement with the Distribution on public electricity network. Network Operator (DNO) to operate a trial 7. Power Networks Demonstration Cen- and share network data, agreement with tre: Independent smart grid testing an electricity supplier (SSE) to support environment allowed project to be de- the project and create a modified billing risked by demonstrating compliance system for their customers and to partner with SHEPD requirements. with an off-island electrical contractor to oversee installations. SMILEGOV supported Recommended financing mechanism the collection of energy generation and de- Because the project is at a pre-commer- mand data, which supported the design of cial ‘demonstration’ stage, commercial the ACCESS project; increased the capacity finance was not available. Initial feasibility of the local community group to engage and partnership development was funded with local householders and assess their through a competitive grant mechanism heating needs; provided inspiration to the provided by the Scottish Government (‘Lo- local community group from projects that cal Energy Challenge Fund Phase 1’). are taking place on other partners’ islands (ELENA Five Islands Smart Grid, Bornholm Funding for delivery of the full project Eco-grid); provided a route for disseminat- (including capital costs) was achieved by a ing the learning from the ACCESS project to combination of: other island communities. Local Energy Challenge Fund Phase 2 The MLG structure (£1,700,000) 1. Mull and Iona Community Trust: Network Innovation Allowance (£340,000) Provided direct engagement with the Private investment (£100,000) local community, through contacting Partner own contributions (£300,000) households and small businesses to identify interest in participating; and by involving the community owned Garmony hydro scheme. 2. Scottish and Southern Energy: SSE en- abled a regulatory compliant interface between Garmony hydro scheme and PROJECT INDICATORS Estimated investment costs [€] 3M Expected CO2 reduction [ton/year]: 185 Expected RES production [MWh/year]: 563 Expected energy savings [MWh/year]: 710

National / Regional level - Scottish and Southern Energy - VCharge - Element Energy - SHEPD - Power Networks Demonstration Centre

Local Level - Community Energy Scotland - Mull and Iona Community Trust MULTILEVEL SMILEGOV GOVERNANCE 42

4 Conclusions and Recommendations

Because the project is at a pre-commer- experience of well-functioning MLG from cial ‘demonstration’ stage, commercial island projects and processes. finance was not available. Initial feasibility SMILEGOV succeeded in moving steps and partnership development was funded forward 56 sustainable energy projects through a competitive grant mechanism by providing different services to cluster provided by the Scottish Government. members depending on the barriers con- SMILEGOV succeeded in establishing a fronted in each project. network of 12 European Sustainable island SMILEGOV succeeded in developing a clusters with 163 cluster members cover- toolbox to support the elaboration of ing all the EU island regions creating and sustainable energy projects consisting ideal space for experience and knowledge of guides and tools which were used by transfer among islanders. cluster leaders in local capacity building SMILEGOV succeeded in engaging 57 activities and were also distributed to the new islands or island authorities to local cluster members. sustainable energy planning and project SMILEGOV succeeded in distant training development by signing the Pact of Islands. 312 trainees through the “Energy Academy SMILEGOV succeeded in developing practi- 2020”; e-learning platform while the iden- cal Strategic Guidelines on enhanced MLG tification of new trainees still continues. solutions, building on good practices and

WHAT WE LEARNED ?

Networking between islands at territorial and inter-terri torial level can create significant benefits Sharing information and exchanging experience is extremely valuable for islands. It is a means of building capacity within islands through the empowerment of island authorities and stakeholders and reinforcing cooperation between islands to develop joint responses to common problems. Once the seed of cooperation is planted, then long-lasting collaborations may flourish! Strategic EU-wide initiatives like the Pact of Islands can assist the engagement of authorities Keeping in mind the big picture of cooperation at a European scale is crucial. After all, islands are part of the European family and for this they take action to contribute to the Union’s policy priorities. The Pact of Islands is an important initiative that sheds light on the challenges and more so the potential of islands to drive Europe’s transition to a low-carbon economy. Technology is there, the money is there, what we miss is cooperation among key actors under win-win conditions A recurrent theme is that of cooperation – this is because cooperation is not a given. On the contrary it takes time, it is a trust-building exercise that requires commitment and concerted effort. Proper stakeholders’ analysis can help identify who’s affected the most and what’s in for different actors in a certain project. This helps overcome barriers related to communication and highlight the win-win potential of a project, thus saving time and resources. Involving citizens in shared ownership and funding schemes can assist overcoming barriers related to local conditions One of the most important lessons learnt to ensure a project is implemented successfully is to enhance the sense of ownership among citizens of the territory where the project is being developed. This can be achieved through extensive consultation and most importantly through funding schemes that bring on board the local population, like cooperatives and crowdfunding. SMILEGOV developed a toolbox, with information on innovative financing schemes island authorities can benefit from. When the work is financially too risky or too technical, partnering up with the private sector may be the right choice for local authorities Public Private Partnerships and Energy Performance Contracting with the use of Energy Service Companies are two good options for local authorities, helping them overcome barriers that related to financing or limited technical expertise. SMILEGOV produced a toolbox with guidance on how to use these two financing tools, while the projects from Madeira, Porto Santo and Cyprus provided a great source of inspiration for the whole partnership. The inherent island characteristics may turn into strong advantages when it comes to innovative technologies making islands ideal test-beds Insularity is double-edged sword: it brings with challenges but also significant growth potential that remains untapped, particularly with relation to the testing of innovative sustainable energy technologies. The project of ITC, together with the Port Authority and the Gran Canaria Island Council set up MEGATURBINAS, a consortium interested in attracting manufacturers for new wind turbines testing. The platform was designed for two to three positions, in order to test simultaneously different wind turbines. MEGATURBINAS will lead the required administrative procedures for installing new multi-megawatt wind turbines on the dock.

RECOMMENDATIONS FOR FUTURE ACTIONS Keep the network alive – New projects – Formalise through legal entity SMILEGOV must remain alive! The partnership must sustain open channels of communication that can lead to the birth of new ideas and project proposals. More importantly partners should strive to move one step forward and formalise their cooperation by establishing a legal entity that gives voice to islands at a European level.

Support elaboration of iSEAPs for new comers – Take advantage of snow ball effect and invite new islands – Develop a Pact of Islands website Newcomers that signed the Pact of Islands in Brussels in June 2015 and helped extend the European islands family should receive the necessary support to develop island Sustainable Action Plans in their territories. At the same time, it is necessary to build on the momentum, develop a Pact of Islands website and capitalise on the results of the project, all while making it attractive for newcomers to join.

Set-up trainings focused on smart project development techniques Developing capacity was at the heart of SMILEGOV and efforts must focus MULTILEVEL SMILEGOV GOVERNANCE 44 now and in the near future on developing training sessions for island local authorities on smart project development, i.e. elaboration of technical/financial prefeasibility studies, early stakeholders’ engagement, enhanced cooperation with different levels of administration etc. Monitor the adoption of these techniques by local authorities when implementing pilot applications To ensure the knowledge produced is put in practice in a consistent way, it is necessary to develop processes and tools for effective monitoring and evaluation. This will help island authorities standardise their work and become more capable of coping with project development and implementation.

Realise and communicate projects funded in whole or partially by coops and crowdfunding to spread the word – Here it comes the snowball effect again We need to capitalise on success stories related to cooperatives and crowdfunding. This entails communication to spread the word and inspire but also concrete implementation of such schemes. We need to focus on islands that are willing to make use of these tools, but still need help to make things happen!

Focus on replication of existing examples – We do not reinvent the wheel

Apply for technical assistance There is a whole lot of experience out there, so no need to reinvent the wheel. To help projects mature and become bankable, local authorities should cooperate, create economies of scale and make their case attractive for technical assistance. The example of DAFNI, where 5 Aegean islands of different size came together and secured funding from the ELENA fund of the EIB shows the way.

Participate in demo projects – Network with companies on the technology innovation sector

Demonstration can provide useful insights on the type of technology that suits an island territory. For this local authorities need to become more extrovert and provided they have some basic technical capacity, start networking with technology companies to explore possibilities for pilot project implementation on islands.