Portuguese cities form energy communities
- July 23, 2025
- William Payne

Four municipalities in Portugal have established energy communities to boost their energy resilience and sustainability. The four, the cities of Guimarães, Vila Real, Torres Novas, and Almada, are being supported by the EU Smart Cities Marketplace (SCM) and its technical assistance programme.
The initiative focuses on integrating renewable energy solutions into municipal buildings and those managed by local authorities to enhance energy efficiency, reduce carbon emissions, and foster local energy resilience.
With SCM’s technical assistance, the four cities have explored various models for creating and managing energy communities. These energy communities are designed to facilitate collective self-consumption of renewable energy, primarily from photovoltaic (solar) installations, which can be installed on municipal buildings or other locally managed properties.
The cities are receiving expert guidance to identify the most viable and effective ways of implementing these energy communities, including assessing the economic and financial feasibility of the projects.
A key focus is determining the minimum technical standards that photovoltaic systems must meet, ensuring that installations are reliable and efficient.
As part of the support, the municipalities are quantifying their proposed energy communities’ potential savings, benefits, and associated costs. The initiative also explores funding opportunities through public or private investment sources to make the projects financially viable. The cities aim to promote inclusive participation in renewable energy production and consumption by involving stakeholders from various sectors.
Additionally, the project provides insights into the national framework for collective self-consumption and renewable energy communities (RECs) in Portugal. This includes guidance on developing, registering, and operating such communities, helping the cities navigate regulatory and operational requirements. The SCM’s matchmaking platform also connects municipalities with other stakeholders, experts, and potential partners to facilitate knowledge exchange and ensure the successful implementation of energy transition strategies.
The work being done in Guimarães, Vila Real, Torres Novas, and Almada is a significant step forward in the EU’s broader efforts to promote green energy and self-sufficiency at the local level. By integrating energy communities into municipal governance, these cities are not only contributing to environmental sustainability but are also setting an example of how collective action can drive economic and ecological benefits for European communities.

