How one Portuguese neighbourhood hopes to end “energy poverty” for locals

People throughout face increasing energy costs, leaving them vulnerable to uncomfortable and even unhealthy living conditions. At the same time the buildings they live in present a major environmental challenge.

Europe’s buildings consume 40% of the European Union’s energy and emit 36% of its total greenhouse gases. Lowering these figures is crucial to achieving the EU’s climate target plan to cut emissions by 55% by 2030.

Yet, amidst these challenges lies an opportunity: buildings are not just simply energy consumers, they also offer a physical space for communities that can address these challenges.

One such initiative is taking shape in the Carcavelos neighbourhood in the heart of Matosinhos, Portugal, as part of the EU-funded ProLight project. Carcavelos, a social housing district built in the 1980s to address housing needs after Portugal’s April Revolution, is home to 690 residents across 278 dwellings, alongside several small businesses. After decades of intensive use and minimal maintenance, the district underwent a major refurbishment in 2021, improving both living conditions and energy efficiency. Matosinhos is now a model of energy policy, with several initiatives in place to reduce carbon emissions to achieve carbon neutrality by 2030.

Manuela Álvares, Deputy Mayor of Matosinhos for Works and Environment, says that Matosinhos has been a leading municipality in its energy transition and decarbonisation plans. “Recognising that, in Matosinhos' Energy Matrix, housing accounts for 40% of greenhouse gas emissions in our territory, we are therefore committed to redesigning the concept of housing towards Carbon Neutrality 2030, promoting more sustainable lifestyles and new approaches to the design of urban space. This means rethinking the spaces, materials and technologies we use in our homes, integrating more sustainable and efficient practices into everyday life.

We want homes that have a lower environmental impact, are more energy efficient, contribute to the well-being of those who live in them and enable us to effectively combat energy poverty,” she said. 

The Carcavelos neighbourhood is part of this strategy. According to Sílvia Sousa from the energy agency AdEPorto, leader of the Portuguese demo-site, “several energy efficiency measures were implemented in 2021 in Carcavelos, including wall insulation, roof upgrades, and window replacements. This made the neighbourhood an ideal candidate to join a renewable energy community, given its proximity to municipal buildings."

These energy communities are networks striving for energy efficiency by generating local renewable energy, sharing resources, and implementing energy-saving measures to lower costs.

The project aims to turn Carcavelos into a ''Positive Energy District''—a net-zero urban area capable of generating surplus renewable energy. Smart meters have been installed in some apartments to monitor consumption and better understand energy demands. Enhancements to building insulation, such as upgrading the north-facing gallery façade and creating a thermal buffer zone or porch effect along corridors, further improve energy efficiency. 

In the next phase, solar panels will be installed on the rooftops, generating enough power to cover part of Carcavelos' needs.

"Our expectation is that families will be able to anchor around 30% of their energy consumption to solar energy, based on a pilot project we've conducted. Of course, it all depends on people's behaviour—whether they’re home during the day, how they consume energy, and if they program appliances to run during peak solar hours," explains Ana Silva from AdEPorto. She emphasizes that self-consumption allows residents to access lower energy prices, as solar power is more affordable compared to open market rates.

Beyond cost savings, these interventions aim to improve comfort and quality of life, especially for those at risk of 'energy poverty. "Energy efficiency in social housing works differently than in other buildings. Normally, we focus on reducing energy consumption for cost savings. But in social housing, the goal is not to reduce energy use for heating—many people didn’t use heating before. Instead, we prioritize comfort by ensuring a more stable indoor temperature and addressing issues like condensation and mold, which significantly improves living conditions," says Alexandre Varela from EDP New, a renewable energy company part of the project. 

ProLight’s success goes beyond technology, it relies on community engagement. Energy monitoring insights will inform behavioural interventions, and as the project progresses, residents will participate in workshops and activities to increase their energy literacy, providing them with the tools and knowledge they need to maintain a successful energy community.

"These communities often lack knowledge in this area, so in our training sessions, we teach residents how to read an energy bill, evaluate their consumption, and share tips on how to save energy. The feedback has been very positive— residents leave the sessions feeling empowered with practical information that they often didn't know before," says Ana Silva, from AdEPorto.

The initiative is not just about reducing energy bills but fostering a lasting shift in behaviour. As Sílvia Sousa notes, "With serious focus in awareness and education, we are already noticing behavioural changes among residents. Once people understand the benefits, they adopt new habits and ensure that these measures persist over time."

The project also hopes to inform new municipal energy policy. "It highlights the need to promote policies that encourage energy efficiency, the use of renewable energy, and the reduction of carbon emissions,” said Sílvia Sousa. “The project can serve as a model for future initiatives and influence the development of public policies that make societies more resilient and more aligned with carbon neutrality goals." 

Carcavelos is just one of six neighbourhoods across Europe participating in the ProLight project. Each serves as a testing ground for innovative retrofitting technologies, sustainable business models, and community-driven energy solutions. 

“The solutions, not only in the Portuguese pilot, are implemented in both municipal and social housing buildings, as well as private housing,” said Sílvia Sousa. “We aim to replicate these solutions on a larger scale, improving the quality of life in these communities through a strong focus on behavioural change, awareness, and the integration of renewable energy and energy efficiency measures."

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