European cities are taking major steps towards the energy transition, but capacity, governance, and financing gaps continue to challenge their progress. This was the focus of a high-level session at the Barcelona Expo, hosted in partnership with the Smart Energy Cluster and the InEExS, GINNGER, streamSAVE+, European City Facility (EUCF) and ATELIER projects. The discussion highlighted how EU initiatives are helping cities bridge these gaps through innovative solutions, business models, harmonised measurement tools, technical assistance, and citizen co-creation.
Moderated by Dragomir Tzanev, Executive Director of EnEffect, the panel featured Valentina Cabal (EUCF, GNE Finance), Juan Aranda (CIRCE), Lars Herre (Demand Response Manager), Frans Verspeek (ATELIER) and Jiří Karásek (streamSAVE+). Speakers showcased a range of pioneering projects demonstrating how municipalities can translate ambition into action.
The EU City Facility shared results from hundreds of municipalities across Europe, demonstrating how access to finance and capacity-building enables cities to commit to and implement ambitious energy transition projects. GINNGER promotes sustainable urban neighbourhoods by co-creatively designing local regeneration actions that improve energy and resource efficiency, support building renovation, and encourage smart mobility. The project implements up to 13 digital tools across six demonstration sites to assist Green Neighbourhood Facilitators in guiding communities through the transition. InEExS presented a business case on smart energy management for electric vehicle chargers and electricity-based HVAC appliances, offering scalable models for new energy-efficiency services. ATELIER, a Positive Energy Districts lighthouse project involving eight European cities, has implemented a 5G-enabled district heating and cooling system in Bilbao’s Zorrotzaurre district, creating a low-temperature thermal grid that contributes to a sustainable heat supply locally and in neighbouring areas. streamSAVE+ demonstrated its platform for harmonised calculation and monitoring of energy savings, supporting municipalities, companies and policymakers in planning and evaluating interventions more consistently.
Speakers emphasised that smaller municipalities often lack the technical and financial capacity to move from planning to implementation. Initiatives such as the EU City Facility are critical in helping these cities develop investment concepts and access the expertise required to advance projects. Smart energy solutions introduce additional complexity, and InEExS stressed the need for fair and open market frameworks to make flexibility services viable. ATELIER highlighted that achieving Positive Energy Districts requires strong governance ecosystems, decision-making structures, and collaboration between public and private actors, not just funding or technology. GINNGER illustrated how administrative and regulatory barriers can slow community-led regeneration, underscoring the importance of local facilitators who guide citizens through co-creation and compliance processes. Meanwhile, streamSAVE+ pointed to the need for harmonised measurement tools to allow cities and regions to plan, monitor and compare energy savings effectively.
The session also addressed shared challenges facing cities, including heavy reliance on grants for investment, fragmented responsibilities across municipal departments, limited technical and financial capacity in smaller municipalities, slow regulatory procedures, and the need for peer-to-peer learning.
Key takeaways emphasised the importance of peer learning and knowledge sharing, demonstrating both successes and failures to accelerate scalable solutions. Governance is as crucial as funding, and investing in local capacity through associations of municipalities, community managers, facilitators, and municipal staff is essential for enabling the transition.
The session concluded with a clear message: Europe’s urban energy transition will succeed only if technological innovation is paired with strong local capacity, governance, and collaboration. By building partnerships, sharing experiences, and mobilising communities, cities can achieve a just, scalable, and resilient energy future.