For those who are not familiar with the Energy Valley concept, it can be described as a large local energy system that is decentralised and controlled by local communities, as opposed to centralised power systems. The REFORMERS project, as the CRETE financed project under the same Horizon Europe call, is a project deploying this concept while also focusing on the integration of other renewable energy carriers (such as hydrogen, biomethane and heat.). The approach adopted is that of combining social, legal and business perspectives to serve as a blueprint for other regions across Europe in the coming decade.

Creating a Self-Sufficient Energy Valley: The REFORMERS Project in Alkmaar

The REFORMERS project is about establishing a self-sufficient, renewable energy valley in the Netherlands, specifically in the industrial region of Alkmaar. This area combines industrial peri-urban areas with urban residential developments. The goal of the REFORMERS project is to enable local businesses to generate and consume renewable energy locally, aiming to become energy-positive and carbon-neutral. We focus heavily on producing biomethane from biowaste and increasing hydrogen production for both energy and mobility purposes. There are around 300 businesses involved, and the project impacts approximately 3,000 people working and living within the region. Beyond the flagship valley in the Netherlands, we also work with six replication valleys across Europe to help them develop plans for achieving energy self-sufficiency. Thanks to the additional insights gained from these six “satellites”, further opportunities can emerge and trigger mutual learning.

Professor Thierry Coosemans, the project coordinator, acknowledges that:

“the concept isn’t entirely new, although it recently gained prominence due to European policies. Similar concepts, like microgrids in remote areas without centralised grids or Positive Energy Districts (PEDs) in urban contexts, have existed for some time. However, scaling up these projects, as we’re doing with REFORMERS, is crucial for achieving energy self-sufficiency. We learned from earlier projects that the larger scale is essential; small projects often lack the capacity to balance energy needs effectively. The REFORMERS project, with its focus on larger-scale implementations, is aiming to address these issues by incorporating rural areas that can provide biomass for biomethane production, helping to replace natural gas and contribute to energy self-sufficiency.”

In the Netherlands the technology is largely available. The real challenge is not the technology itself, but rather optimising the integration of different systems to work in synergy. This is a bigger technological challenge than dealing with individual components. In Belgium, for example, there is more regulatory flexibility regarding hydrogen than in other EU countries. Belgium and the Netherlands are positioning themselves as hubs for hydrogen import into Northern Europe. While large installations are feasible, there are still considerable safety regulations to navigate, especially when setting up new installations in living labs. This is also the case for other technologies, like battery storage or electric car chargers in garages, where safety regulations are a primary concern.

Nevertheless, according to Thierry Coosemans, Energy Valleys are not only feasible both technologically and socially, but crucial to achieve European decarbonization targets:

“Both mentality and legal frameworks have evolved. Communities are increasingly aware of the importance of energy autonomy, and the push for decentralised, renewable energy sources has never been stronger. Policies are beginning to catch up, albeit slowly, to support these changes. The societal shift towards sustainability and self-sufficiency, coupled with advancements in renewable technologies, has made the concept of energy valleys not just feasible, but essential for a resilient and sustainable future.”

Balancing Centralised and Decentralised Power Systems

At the beginning of the 20th century in Europe, energy systems were inherently distributed although energy was needed, there was no widespread grid to distribute it efficiently to all points of delivery. Today Energy Valleys are implemented within an already highly interconnected system crossing national borders, which would allow member states to fully deploy their potential. There are two main factors pulling towards the implementation of the Energy Valley concept. Firstly, climate change is becoming increasingly evident, even to the most ardent deniers. This urgency demands more renewable and decentralised energy assets. Secondly, the dependence on gas has become a critical issue, especially following recent geopolitical events. Additionally, the nuclear phase-out, which is now at a tipping point, contrasts with decentralised energy sources. Nuclear power is highly centralised, while renewable assets are decentralised. 

Thierry Coosemans is confident that centralised and decentralised systems shall not be opposed, on the contrary only a balanced coexistence would properly address both grid congestion –  which occurs when the demand for electricity in a specific area exceeds the capacity of the power grid – and climate targets:

“The future will involve a combination of both centralised and decentralised systems, with Energy Valleys playing a crucial role in engaging stakeholders—companies, citizens, and local governments. These valleys also help mobilise capital, which is essential for driving these projects forward. In the future, we’ll likely see larger renewable installations, such as extensive solar farms and offshore wind projects, combined with Energy Valleys. While it may not be realistic for every region to become energy positive, these initiatives will encourage shorter supply chains and increase system resilience. Distributed assets will create a more robust energy network, ensuring that if one part fails, others can compensate. Therefore, it’s crucial to continue supporting these projects, even though they will operate alongside centralised systems.”

The key challenge is how to combine everything effectively, which requires both operational intelligence and business intelligence. From a managerial perspective, it’s not just about understanding the technical aspects as engineers, but also about building a viable and just business model. Everyone involved needs to benefit, which means we have to make the system inclusive and sustainable. This requires a lot of intelligence to manage the complex supply chain without adding unnecessary costs (e.g. the low margins of EV chargers). It’s difficult to create a profitable business case in such tightly regulated and competitive markets. In an Energy Valley, where there are multiple layers and actors involved, ensuring each player has a role in the value chain is going to be a significant challenge. That’s why what we’re doing now—exploring and refining these systems.