**4. Urban Energy and Climate Governance to Support Sustainable Energy and Climate Action Plans**

The accurate and realistic accounting of indirect emissions by LAs is important within the policy cycle at the local level from planning to taking necessary action. At the same time, policy support from a synthesis of urban climate governance options [51] is required to transform the local energy structure. Governance relates to mechanisms directed toward the coordination of multiple forms of state and non-state action across scales (from local/municipal authorities to national governments), as well as through networks and partnerships that operate within and between cities [12]. The CoM is a unique feature of multilevel polycentric governance that goes far beyond transnational city networking [11]. Such governance has a crucial role in demonstrating, guiding and influencing key measures for achieving emissions reductions through efficient electricity and local heat/cold production. The transition towards a more sustainable urban environment at the local level begins with a common understanding that there is significant potential to curb the city's CO2 emissions. This understanding provides a basis upon which political leadership instigates a process of exploring possibilities and discussing different options with a wide range of stakeholders towards selecting, detailing, implementing and monitoring local action. In this process, LAs have the capacity to support and mobilize action for local energy generation investments through several modes of urban climate governance

In the following, four modes of urban energy and climate governance are investigated that summarize the scope of each mode, along with the main tools and exemplary actions to support local energy sustainability. The modes of urban energy and climate governance, which are based on definitions from Reference [52], can be mainly summarized as:


Overall, the barriers that can be addressed with each main tool under these modes of governance are different. For this reason, it is often necessary to combine multiple modes of governance to reinforce and align incentives for particular objectives. This must be supported by an analysis of the legal, physical, social and economic barriers hindering local energy generation prior to considering corrective actions and measures. In the following, a collection of good practices on local energy generation based on the CoM Signatories' Benchmarks of Excellence and the literature [53] is provided, especially those that are connected to best practices in CoM signatories.

#### *4.1. Municipal Self-Governing*

Municipal self-governing involves aspects that are related to the management of the LAs estate to increase local energy generation, renewable energy demonstration projects in public facilities and public procurement. Prior to the good practices, these opportunities are put forth below:




#### *4.2. Municipal Enabling*

Municipal enabling represents opportunities that provide additional policy support for mobilising actors, such as public–private partnerships as well as awareness-raising and training activities.




#### *4.3. Governing through Provision*

Governing through provision encompasses the process of making available direct energy infrastructure investments, as well as incentives and grants for local energy generation.




#### *4.4. Governing by Regulation and Planning*

Regarding ordinances on the mandatory use of renewable energy, Solar Thermal Ordinances (STOs) represent one of the most prevalent forms of mandatory regulations for renewable energy. A growing number of European municipalities, regions and countries has adopted such obligations [58]. In addition, municipalities can require mandatory installations of photovoltaic systems among other renewable energy technologies. Regulatory measures can further require households and private companies to purchase green electricity through obligations on local energy suppliers. Other tools for policy action at the local level also include revision of urban planning regulation to consider the necessary infrastructures required for the development of the DH/C.

In addition to setting regulations, strategic energy planning tools and decisions provide a means for local authorities to evaluate and enforce decisions to promote local energy generation. The following steps exemplify instances in which strategic energy planning would be necessary to promote the generation and utilisation of local energy resources, including those of residual heat from the industry, data centres and wastewater treatment plants. Local maps with information on heat demand densities and the locations and magnitudes of residual heat from industry and power generation can largely facilitate this process.


In addition, land use planning should be considered for large-scale solar plants and wind turbines. These aspects call for integrated urban planning processes to support local energy generation decisions as the basis for additional action, such as:

• Establishing an integrated urban planning process to promote renewable energy generation deployment and identifying possible sites to install local energy generation installations, such as

those for solar, wind, small hydro and biogas, will ensure the availability and compatibility of public and private space to achieve projects. Some European local authorities offer rooftops of public buildings to private companies for rent to produce energy by means of photovoltaic collectors [59]. Establishing integrated urban planning processes, include those to promote DH/C networks and cogeneration plants, should be supported with mapping tools of thermal energy demand from buildings based on reliable data from utilities.

#### **5. Key Measures for Transition to Sustainable Local Energy Systems**

The above modes of urban climate governance, which are classified as M1 to M4, need to be used in combination to provide effective policy support. A holistic understanding of the key measures and technological options that are available at the local level is required to support the design and implementation of policies to promote local energy generation. For this reason, key measures are described with the aim of providing guidance towards potential application areas. Insight from signatories that have already undertaken the technological options is summarised to underline the rapid transition that is taking place at the local level based on the promotion of local energy generation with renewable energy.

The EU has the ambition to be the world number one in renewable energy [60]. To fulfil this objective, the next generation of renewable technologies must be developed and the energy that is produced from renewable sources must be integrated into the energy system in an efficient and cost-effective manner. In this context, there is increasing interest in the decentralisation of the energy supply with more local ownership. Local energy supply options can take the form of district energy systems, local power generation utilities and energy services companies (ESCo). LAs can be whole or partial owners of these utilities and promote community partnership. The relevant modes of urban climate governance that are involved showcase the integrated approach that is needed for supporting particular renewable energy solutions, which is also summarized in Figure 2. Examples for the policy measures are based on compilations from the Covenant of Mayors Signatories' Good Practices database [61].

**Figure 2.** Necessity for a coherent policy mix for local energy generation. Source: own elaboration.

In particular, Tables A1–A3 in the Appendix A are formed as a representation of the 1059 key actions of CoM signatories in the good practices database [61] as "benchmarks of excellence" for local electricity and local heat/cold production. The good practices were exhaustively scanned and categorised into the renewable energy source and technology areas in Figure 2. The key actions were then combined into 82 representative statements with examples from CoM signatories alongside an identification of the modes of governance M1 to M4 that the key action involves. Based on this overview, it is possible to observe the diversity of governance modes that support renewable energy technologies. Such an overview also extends discussions on modes of governance from the perspective of good practices from CoM signatories with a specific focus on local energy generation.

#### *5.1. Photovoltaic*

As a widespread measure, CoM signatories are financing and owning photovoltaic (PV) pilot plants on public buildings and facilities based on rooftop PV and building-integrated PV systems (M1). Equally valid measures include installations on the roofs of bus sheds (e.g., 968 kW in Mantova, Italy, as an action that provides 400 tonnes of CO2 reductions and 990 MWh of local electricity generation [62]), parking lots, and other available areas. Other CoM signatories have constructed a PV park on the ground of a municipal property at a former landfill site, such as in Torrile, Italy, or Évora, Portugal, with about 4000 MWh of local electricity generation based on 3,388 € per tonne CO2 reduced at the time of implementation [63]. The active use of municipal areas for PV technologies also extends to approaches that combine both municipal self-governing (M1) and governing by provision (M3). CoM signatories are giving a concession of surface rights and renting of rooftop areas in public buildings for PV installations and/or promoting PV installations in public buildings based on collaboration with the ESCo and third-party financing for PV systems in school buildings.

As enablers and providers (M2 and M3), CoM signatories are involved in public–private partnerships for photovoltaic solar parks (e.g., 24.2 MW in Coruche, Portugal), as well as city supported photovoltaic campaigns. In Hannover, Germany, the target of the photovoltaic campaign is to reach 1 million square metres of solar modules by 2020 [64]. In the capacity of regulators (M4), LAs are using their authority to put forth energy supplier obligations for PV systems, such as mandates that PV system installations should be equal to a given share of the total installed power in the municipality. In this respect, it is observed that the complete spectrum of governance modes from M1 to M4 is utilised to various extents in ways that promote PV technologies in cities.

Other measures for PV that involve various governance modes as marked in Table A1 include a municipality bonus for PV installation on citizens' roofs, interest-free loans for associations or schools that install PV panel installations (e.g., Bree, Belgium [65]), the provision of PV systems in a civic center that also supplies electric vehicle charging stations (135 kW in Poole, United Kingdom, with a cost of about 3,587 € per tonne CO2 reduction at the time of implementation [66]), and real-time data sharing on electricity generation based on the PV systems of the City Council for purposes of awareness-building (e.g., Málaga, Spain, with 609 MWh of local electricity generation [67]).

In other aspects, awareness-building and planning supporting tools for solar energy are actively promoted based on a solar land registry for roof-top PV (or solar thermal) installations in Paris, France [68], while an online solar chart for identifying preferable areas for solar energy technologies is put into use for the benefit of the local actors in Lisbon, Portugal, with an implementation cost of about 10,000 € [69]. Numerous other CoM signatories are providing online solar roof cadasters for every building in the municipality, e.g., Bremen [70], Fürstenfeldbruck [71] and Hannover [64] in Germany, Barcelona in Spain [72], and others. Important complementary measures include public awareness-building to reach annual increase targets for PV in the private buildings and land use planning for utility-scale PV plants in the municipality within broader aspects of urban planning.

#### *5.2. Solar Thermal*

Municipal buildings and facilities can provide a point of acceleration for upscaling solar energy technologies at the urban level, which is also valid for solar thermal technologies. In this capacity (M1), CoM signatories are actively increasing the use of solar collectors on the rooftops of municipal buildings, swimming pool facilities, sport buildings and schools, including both flat-plate and parabolic solar collectors. Multiple CoM signatories are also taking the opportunity to replace electrical heaters and boilers in public buildings based on solar collectors. As an enabler (M2), CoM signatories are also mobilising purchasing groups to allow the widespread diffusion of solar thermal technology. As authoritative measures, CoM signatories are utilizing their capacities as regulators (M4) to put forth an ordinance for installing solar collectors. Zagreb, Croatia requires the use of solar collectors in all buildings in the health care sector as an action that provides a CO2 reduction of 2077 tonnes and local heat production of 9344 MWh [73]. Loures, Portugal, requires solar thermal systems in 100% of schools that include south-facing facades and terraces [74]. These and related measures are supporting LAs to reach targets for increasing the use of solar thermal technologies.

#### *5.3. Wind Energy*

Local ownership of local energy generation is relevant for any energy source. Wind energy represents one of the energy sources in which it is implemented based on such examples as the promotion of locally owned wind turbines (e.g., Ringkøbing-Skjern, Denmark [75]). In addition, in Nijmegen, the Netherlands, a wind and solar farm was established with citizen cooperation (M2) as a measure with a CO2 reduction of 23,488 tonnes at 1,426 € per tonne and local energy generation of 58,300 MWh [76]. The role of LAs in triggering local energy generation investments was also observed in the case of public procurement of municipality owned wind turbines (M1). In Eskilstuna, Sweden, the public procurement of 4 × 3.3 MW wind turbines that are owned by the municipality enabled about 40% of the municipal electricity load to be satisfied from wind energy [77]. In Lund, Sweden, the business model for local ownership is realised based on a co-ownership of wind-power plants [78]. As enablers (M2), CoM signatories are also pursuing the attraction of companies that want to generate electricity from wind energy based on such measures as prioritised case handling and licensing of wind turbines. Land use planning is also valid for wind turbines in which CoM signatories are involved in aspects of the use of regulatory and planning capacities (M4).

#### *5.4. Hydroelectric Power*

Alongside other renewable energy sources, the use of municipally owned facilities for local energy generation (M1) extends to hydroelectric power. For example, in Ronchi Valsugana, Italy, mini-hydroelectric plants are constructed on municipal waterworks [79]. Other CoM signatories in which mini-hydroelectric power plants are constructed include the Italian cities of Mazzin at 2908 € per tonne CO2 reduced [80], Rosà with 2 × 20 kW [81] and others in which investment is attracted to realize an in-stream 10 MW tidal hydro power plant. Other cases in the database includes the CoM signatory of Roman in Romania in which an equal amount of electricity that is needed for public building and public lighting loads is generated from a run-of-river hydroelectric plant [82].

#### *5.5. Bioenergy*

The utilisation of bioenergy for local energy generation can involve the waste and wastewater sectors, as well as the sectors of agriculture and forestry in the vicinity. The diversity of bioenergy sources is similarly represented among the CoM signatories based on local energy generation from bioenergy. Multiple signatories are utilising the opportunity to construct new anaerobic digestion plants in publicly owned waste recovery and treatment companies, which can represent a municipal asset (M1). At the same time, public–private partnerships between the municipality and waste management utilities are being established for the anaerobic digestion of biowaste for CHP-based district heating in such signatories as Este, Italy [83]. Similarly, Annicco, Italy, has established a biogas cogeneration plant for electricity and thermal energy provision based on anaerobic digestion that produces 3819 MWh [84]. There are numerous other CoM signatories that have established biogas cogeneration based on zootechnical wastewater and silage cereals and/or a bioenergy (biogas or biomass) driven district heating networks. An example can be given from Banja Luka, Bosnia and Herzegovina, that involves a 6 MW biomass based district heating network [85].

In Bagnolo San Vito, Italy, a consortium for a cogeneration plant based on waste that is produced locally from local consortium companies exemplifies the role of the LA as an enabler (M2). Through the local consortium, 28,350 MWh is generated from sources of local farm sewage and industry at about 1058 € per tonne CO2 reduced [86]. In signatory municipalities, such as Liepaja, Lithuania, ¯ the installation of wood chip boilers in the CHP plant that produces 22,550 MWh is providing carbon neutral district heating at about 1934 € per tonne CO2 reduced [87]. In Málaga, Spain, 120 wells for degassing biogas capture and network piping recovers methane gas from landfills to produce electricity with a cost of about 423 € per tonne CO2 reduced [67]. The practice of collecting and recycling used cooking oil for biodiesel production and the use of biomethane in waste collection trucks are other examples that link various sources of waste with an energy service in the transport sector. As can be observed from these examples, CoM signatories are directly involved in promoting the use of bioenergy for local energy generation as well as alternative fuel for vehicles.

#### *5.6. Geothermal Energy*

The availability of high-, medium- or low-grade geothermal energy potential is shaping the local response by CoM signatories in the scope of geothermal energy that is or is yet to be utilised. Some signatories are directly constructing geothermal power plants for local electricity generation or taking the opportunity to use low enthalpy geothermal energy resources for the heating of residential buildings. Other signatories provide City Council grants and subsidies to renewable energy technologies, including PV, solar thermal, biomass and ground source heat pumps.

#### *5.7. Multiple Renewable Energy Sources*

The orchestration of multiple renewable energy sources is an asset for reaching such targets as net-zero or positive energy targets at the local level in the path of decarbonising the energy sector. In turn, it is important that all modes of urban energy and climate governance are also orchestrated in this direction. In aspects of municipal self-governing (M1), public buildings that are self-sufficient based on on-site renewable energy include a self-sufficient town hall based on bioenergy and PV in Baradili, Italy [88]. A widespread measure among CoM signatories is the application of bioclimatic design principles and renewable energy utilization in public buildings and/or public social housing complexes. Buildings are renovated and equipped with solar thermal collectors and/or biomass in Karlovac, Croatia, with 50% city co-financing [89], and Kozani, Greece, has attained a daycare center that utilises solar and geothermal energy alongside bioclimatic and healthy building design [90].

One of the most prevalent measures among CoM signatories is the purchasing of certified renewable power for public buildings and public lighting. A joint framework agreement for purchasing additional 100% green electricity is also implemented among multiple signatories in the Province of Limburg in the Netherlands. As enablers (M2), LAs are actively involved in awareness building activities, including experimental sessions on renewable energy for students and training campaigns organised by the local energy utilities and agencies. As providers (M3), LAs can be involved in the provision of grants for solar collector and heat pump installations, e.g., Alken, Belgium [91], and subsidies to renewable heat sources in residential buildings, e.g., 25% in Gdynia, Poland [92]. Numerous other CoM signatories established clean technology funds for renewables at the local level or co-financing schemes between local and regional authorities for public energy upgrading. These include a co-financing scheme in Castelnuovo Rangone, Italy, for solar thermal systems [93].

Complementary aspects of regulation and planning (M4) include measures for promoting distributed energy generation based on Urban Building Regulations and authorization procedures.

Demonstrations of net or nearly zero energy buildings is another means of stimulating the local ecosystem for contributions to local energy generation, which include net zero-energy public schools (M1) in Göteborg, Sweden [94], and the Viikki Environment House as a nearly zero-energy office in Helsinki, Finland, with multiple renewable energy sources and district heating connection [95], among others. A pilot public school built according to the Nearly Zero Energy Standard in the Winkelomheide parish of Geel, Belgium [96], and a co-financing of a near zero-energy school building (Scuola Pascoli) with local and national funds represent the interaction of policy tools.

Brownfield urban developments with renewable energy technologies for sustainable districts are rapidly closing the gap between local energy generation and urban planning. In the CoM signatory of Ravenna, Italy, a former port and industrial area is transformed into a new sustainable district [97]. Other examples include onshore power supply based on the renewable energy mix to docking ships in the port to displace fossil fuel usage [94] while in Stockholm, Sweden, the Sustainable Järva project involves 10,000 m2 of solar cells [98]. Such measures combine multiple governance modes at the local level, including M2 based on an enabling role for urban foresight and planning as M4.

#### *5.8. Combined Heat and Power*

The simultaneous production of heat and power in cogeneration plants is being implemented in municipal buildings as a form of municipal self-governing (M1). Biomass-based combined heat and power plants are also contributing to local energy generation in CoM signatories, including 340 GWht and 130 GWhe in Jönköping, Sweden [99]. Other cogeneration plants are being modernised, including fuel flexibility to run on waste and bioenergy, such as in Västerås, Sweden [100]. Low energy houses will also be connected to a low-temperature district heating network. As the provider of energy services, utility companies are also investing in new cogeneration plants with both district heating and cooling infrastructure. In Fürstenfeldbruck, Denmark, the roof of a near CO2-neutral public CHP plant is also co-located with PV panels for extra electricity supply [71]. In some CoM signatories, subsidies for CHP electricity production take place as a relevant policy measure (M3).

#### *5.9. District Heating and/or Cooling*

The presence of a district heating and/or cooling plants and networks either connected to such plants or CHP are an asset to support local energy generation in CoM signatories. One of the policy measures that LAs have in their authority is to establish a contract to connect municipal buildings and schools to the district heating network (M1 and M4). In Milan, Italy, such a contract is also combined with a commitment to invest 10% of the contract sum to energy retrofitting and maintenance [101]. In other cases, LAs have cooperated with the local energy utility to establish a district heating network (M2). Other CoM signatories provide initiatives to increase the purchased volume of energy from the district heating network, including subsidies and obligations for connection to district heating (M3 and M4). The interconnection of district heating networks and extension of distribution piping are other measures that require urban planning and regulation.

Good practices in the database include the Marstal District Heating in Aeroe, Denmark, that contains large-scale solar thermal solutions in district heating systems [102] and Kristianstad, Sweden, in which the connection of buildings to the district heating network is increased [103]. Public buildings in Vittorio Veneto, Italy, will have integrated heating systems [104] (M1) and the share of renewable energy sources in the district heating network will increase from 40% to 95% in Ringsted, Denmark, based on local planning [105] (M4). In addition to district heating works, the connection of buildings and industries to the district cooling network includes an energy efficient data center with PV on the server hall roof in Växjö, Sweden [106]. District networks also enable access to sources of waste heat. Among CoM signatories, residual heat from urban wastewater is utilised in Aachen, Germany [107], waste heat from the local steel industry is recovered in Finspång, Sweden [108], and the use of natural gas is substituted based on the connection of buildings to a district heating network that utilises the available waste heat from a pulp mill in Judenburg, Austria [109].

In addition to establishing and extending district energy networks, their modernisation and rehabilitation is another aspect that requires action based on urban governance. In Bielsko-Biala, Poland, the remote monitoring of pipelines and insulation has reduced heat losses from 30% to 12% [110]. In Rijeka, Croatia, thermal energy distributors and thermostatic radiator valves were installed in the district heating network based on city co-financing with an estimated impact of saving 3140 tonnes of CO2 emissions [111] (M3). In Riga, Latvia, flue-gas heat recovery is applied to increase the efficiency of heat production [112]. As a relatively unique case, Lerum, Sweden, has cooperated

with local actors as an enabler (M2) to establish noise barriers for road and rail traffic that is equipped with solar energy collectors to support local energy generation for the district heating system [113].

#### *5.10. Smart Electricity Grids*

In addition to thermal grids, the policy measures of LAs have involved the stimulation of smart electricity grids, including cooperation with the district network operator for demand side management. In Glasgow, the United Kingdom, monitoring and response to peak load in public buildings are implemented towards a future smart grid (M1). Local, regional, national and EU funds are also being utilised to finance pilot projects on smart grids and demonstration sites.

#### *5.11. Waste and Water Management*

The efficient planning of available waste flows can allow LAs to oversee that higher recycling and bioenergy stocks are obtained. Numerous CoM signatories are upholding the need for separate waste collection to increase the recycling of municipal solid waste and the use of organic waste for biogas production (M4), which is also supported by awareness-building (M2). In Lakatamia, Cyprus, green waste is used for the production of compost and pellets [114]. In other signatories, organic waste is chosen to be utilised for composting rather than incineration in waste-to-energy plants.

In cross-cutting aspects of water management and local energy generation, renewable sources are integrated for supplying power to pumping tapwater. In addition, electricity usage for pumping is reduced based on reductions in water losses in the drinking-water distribution network in Seixal [115] and Bilbao [116], Portugal. In this way, LAs are able to provide more energy-efficient water services (M3). In order to support related aspects of public awareness, Voznesensk in Ukraine established an information system for energy and water use in the public sector (M1) [117]. Wastewater provides a valuable source of bioenergy upon which Neumarkt in der Oberpfalz in Germany established a self-sufficient wastewater facility based on methane driven CHP plant [118].

#### **6. Conclusions**

As the closest level of government to citizens, local authorities play a crucial role in building public support for the European Union's energy and climate goals while deploying more decentralised and integrated energy systems. The European Union Covenant of Mayors initiative has been one of the disrupting phenomena in the arena of transnational initiatives, which have expanded tremendously over the past 10 years. The first version of CoM methodology published in 2010 [119] has been an important guiding document for cities in Europe on the elaboration of SEAPs. After 8 years from the first publication of the CoM guidebook, JRC is in the process of revising the CoM methodology. Gaining the opportunity from this unique momentum, the present work summarises the main methodological updates that are proposed in the new version of the CoM guidebook published in 2018 [120–122].

It is important for local authorities to have a clear framework and pathway for the redaction of the climate action plans; therefore, this updated methodology and the rationale behind it could be helpful in supporting them. The main aspects developed in this paper relate to:


investigated and a policy matrix that summarises the scope of each mode along with the main tools, and exemplary actions to support local energy sustainability are provided.

• The exemplary actions to support local sustainable energy generation can be used to further promote city-to-city policy learning based on the Benchmarks of Excellence. The cities will observe that there are a multitude of approaches that can strengthen urban energy and climate governance in a coherent way, including the application of multiple modes simultaneously for combined impact.

Within the Covenant of Mayors framework, it is highly advisable that the CoM signatories utilise the opportunity of revision based on the new version of the CoM guidebook to update and strengthen their climate action. The leadership of cities is crucial to the success of climate mitigation action to address the urgency of global climate change. Cities have shown a significant potential for greater leadership through accelerated action to support local energy generation in the pathway of realising the sustainable energy transition.

**Author Contributions:** Conceptualization and methodology: A.K., P.B., ¸S.K.; formal analysis, investigation and writing—original draft preparation: A.K. and ¸S.K.; supervision and project administration: P.B.

**Funding:** This research received no external funding.

**Acknowledgments:** We are grateful to the local authorities who make public their engagement in climate action planning through their participation in the Covenant of Mayors initiative. The authors would like to thank European Commission Directorate General for Energy, the CoM Office and JRC colleagues working in the CoM initiative for their support in giving visibility and effectiveness to the effort of cities and local governments in the climate change action. A special acknowledgment to our colleagues Jean François Dallemand and Christian Thiel for reviewing of the CoM methodology and to Gianluca Fulli for discussion on methodological challenges.

**Conflicts of Interest:** The authors declare no conflict of interest. The views expressed are purely those of the authors and may not in any circumstances be regarded as stating an official position of the European Commission.
