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Nordic Energy Capital

Vaasa sets the direction – smarter district heating for people and the climate

Co-funded by the European Union

What is Nordic Energy Capital?

Nordic Energy Capital (NEC) is an international development project led by the City of Vaasa. Its aim is to build the energy city of the future together with residents, businesses, and experts. Within the project, Vaasa is developing smarter, more sustainable, and more predictable ways to produce, use, and manage energy.

In the Nordic Energy Capital project, Vaasa serves as a model city and a living test environment. The city tests and develops new digital solutions, such as a digital twin of the district heating system and data-driven tools that help better understand and steer energy use. At the same time, these solutions are made visible and understandable to residents as well.

The project supports Vaasa’s goal of becoming carbon neutral and acting as a bold forerunner that sets an example for other cities in Finland and across Europe. In addition to the City of Vaasa, the project is implemented together with Technology Centre Merinova, the University of Vaasa, EPV, Vaasan Sähkö, the Vaasa 4H Association, and the international partner cities of Umeå, Alcalá de Guadaíra, and Fylí. Together, they are creating solutions that have local relevance and an impact beyond the city’s borders.

Digital twin - what does it mean?

A digital twin is a virtual model of the city and the district heating system. It helps to understand how the system functions under different conditions.

With a digital twin, it is possible to:

  • test energy solutions in advance without risk
  • anticipate energy demand
  • improve the reliability of the system

The digital twin allows solutions to be tested in advance so that everything works better in real life.

  1. Why is this being done?

    Climate change and fluctuations in energy prices affect us all. District heating is a crucial part of everyday life, and its development has a direct impact on:

    • housing and living costs, as well as exposure to energy price spikes
    • the security and sufficiency of energy supply
    • environmental well-being

    The NEC project supports Vaasa’s climate efforts and strengthens the city’s role as a forerunner in developing solutions that can also be applied in other cities.

  2. What is done in practice within the project?

    The project develops ways to make district heating more efficient. In practice, this means, for example, that:

    • heat production can be planned
    • energy is used only to the extent that is needed
    • disruptions and changes can be anticipated and responded to in time

    Data, digital tools, and collaboration are at the core of the work.

  3. What does this mean for residents?

    Not everything is directly visible in everyday life, but the impacts can be felt.

    For residents, this means:

    • more stable costs
    • a more reliable heat supply
    • less wasted energy
    • a cleaner future for coming generations
    • information is shared with residents and schools

    Even small improvements in the system can together deliver significant benefits.

Data supports smarter decision-making

The development of district heating is based on data. The project makes use of:

  • satellite data
  • open data sources
  • local measurement data

Information is collected from multiple sources to form a comprehensive picture of heat demand and consumption. When data is up to date and reliable, district heating can be managed more efficiently and in a more environmentally friendly way.

New skills for children and young people

The NEC project is not only a technical initiative, but it also engages children and young people in learning about how energy is used and how a sustainable future is built.

The work is linked to the City of Vaasa’s Energy Education Pathway, which supports learning at different stages of childhood and youth and makes energy-related topics understandable and engaging. Activities by the Vaasa 4H Association complement school education, especially through leisure-time and hobby-based learning.

Read more about the Energy Education Pathway

Within the project, understanding is built around:

  • how a sustainable city function
  • what makes energy an interesting topic
  • the role energy plays in everyday life

The goal is for future generations to learn from an early age how energy can be used wisely.

Vaalea talo

Cost-effective district heating

When energy is produced and used correctly, costs remain better under control. Smart management benefits everyone.

lapsi seisoo kadulla puunlehden kanssa.

Predictability

When we know what lies ahead, we can act in time and make better decisions.

Digital twin

A virtual model helps test solutions in advance before they are implemented in a real-world environment.

Collaboration makes development possible

The NEC project brings together cities, experts, and companies. Through collaboration, theory meets practice and ideas are turned into actio

What are the benefits?

Better anticipation can lead to cost savings, lower emissions, and a more reliable heat supply.

Smart solutions and artificial intelligence

Intelligent systems support human decision-making and help to understand the bigger picture.

Satellite data and energy efficiency

Extensive data helps build an accurate view of a city’s energy needs, also in the long term.

Small things matter

Small improvements together can lead to significant change.

What does optimisation mean?

Optimisation means producing exactly the right amount of energy. Neither too much nor little. This reduces waste and improves efficiency.

Partner cities

Umeå

Alcalá de Guadaíra

Fylí

Nordic Energy Capital

Info box

  • Hankkeen nimi: Nordic Energy Capital
  • Project lead: City of Vaasa
  • Project duration: 01 October 2025 – 31 March 2029
  • Project number: EUI03-111
  • Funding: EUR 4.3 million. The project is co-funded by the European Union under the European Urban Initiative – Innovative Actions (EUI-IA) programme.
  • Objective: To develop Vaasa’s energy system to be smarter, more sustainable, and more predictable, and to create solutions that can also be utilised by other European cities.

Inspiroidu lisää

Hehkulamppu

Urban Initiative - Nordic Energy Capital (NEC)

Project on European Urban Initiative website.

Lue lisää
Sydän

Energy education pathway in Vaasa

In Vaasa, the Nordic energy capital, students master future working life skills and energy expertise.

Lue lisää

Vaasa – A Green Leaf City

Vaasa is a European Green Leaf City for 2026 because of our concrete actions for the climate and the environment.

Lue lisää

European Urban Initiative

The European Urban Initiative is an essential tool to support cities of all sizes, to build capacity and knowledge, to support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance.

  • budget of €450 million for 2021-2027
  • build capacity and knowledge
  • support innovation and develop transferable and scalable innovative solutions to urban challenges of EU relevance

Contact

Nordic Energy Capital

Nordic Energy Capital on LinkedIn