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Vaasa awarded €4.3 million in funding for sustainable urban development
Published: 31.3.2025
The City of Vaasa has been granted significant international funding by the European Commission. The total funding for the sustainable urban development project amounts to €5.4 million, of which the EU share is 80 percent – that is, €4.3 million.
The project funding from the European Urban Initiative (EUI) programme supports new solutions to challenges in sustainable urban development. The aim of the programme is to develop and scale up effective solutions across the European Union. A total of 110 applications were submitted, and funding was granted to 20 projects.
– This funding is proof that our entire EnergyVaasa ecosystem is a frontrunner in the green transition, says Suvi Aho, project lead and Strategy Manager at the City of Vaasa.
International visibility in addition to funding
As the Nordic energy capital, Vaasa will develop comprehensive solutions that support the clean energy transition.
– The EUI’s Innovative Actions programme supports new and bold projects – and that’s exactly what the Nordic Energy Capital project is. The programme’s goal is to find solutions that can be scaled up at the EU level to address sustainable urban development challenges. In addition to funding, the Innovative Actions programme also strengthens both Vaasa’s and Finland’s international visibility as pioneers in EU urban development. It’s fantastic that we are bringing this project to Finland during this round of funding,’ says Mervi Hemminki, National Contact Point for the European Urban Initiative at the Ministry of Economic Affairs and Employment.
Integrating electricity and heat into one efficient system in Vaskiluoto
The project, titled Nordic Energy Capital – Creating system level urban energy transition, is led by the City of Vaasa, with project partners including the University of Vaasa, Vaasan Sähkö Oy, EPV Oy, Merinova Oy, and the Vaasa 4H Association.
The project will demonstrate how electricity and heat can function together as an efficient whole.
A digital twin of the Vaskiluoto energy system will be created to support the planning and development of sector coupling. This digital twin enables innovative solutions, such as simulating high-temperature heat pumps currently under development. It also explores average heat profile analysis in high energy consumption industrial areas and the integration of the heat profile into the energy system.
In addition, the digital twin will enable simulation of the district heating network and the use of surplus heat from industrial companies in electricity production.
Developing energy solutions together with residents
A full system-level energy transition requires citizen involvement and the shared use of precise energy efficiency indicators.
– In this project, we will work together with residents to study satellite and energy data, combining it with the city’s geospatial information to evaluate energy efficiency. We are developing an interactive application that will help change the way we think about, manage, and consume energy – based on data, says Aho.
The model will help detect heat and cooling loss both in the energy network and in the urban structure.
– Thanks to local energy expertise and Finland’s advances in space technology, both Vaasa and Finland are well positioned to play a key role in developing system-level solutions. Creating solutions is what makes us happy here in Vaasa, Aho smiles.