A recent UK analysis warns that the ongoing Iran conflict could cost households £480 (over EUR 550), highlighting our vulnerability to volatile fossil fuel markets. In the face of soaring energy prices and the growing impact of energy poverty, municipalities across Europe are searching for innovative ways to provide affordable energy solutions for their citizens. The City of Valencia, Spain, offers a pioneering social procurement model that not only speeds up renewables installations but also ensures that the most vulnerable are included in the process. Through a public procurement reform, Valencia is redefining how public assets can be used to create renewable energy communities that benefit everyone.
As part of its commitment to achieving climate neutrality by 2030, Valencia has reformed its procurement rules to allow citizen-led energy communities to access municipal rooftops for solar photovoltaic (PV) installations. This innovative model goes beyond typical energy projects by integrating social criteria into the procurement process. The selected energy communities must allocate at least 10% of the generated energy to municipal buildings and at least 5% to vulnerable households identified by local social services.
What makes Valencia’s approach particularly groundbreaking is its focus on social value in public procurement. In addition to ensuring that energy (at least 5%) goes to those who need it most, the tender process prioritizes energy communities that promote gender balance in governance, provide training to members, and offer additional energy to vulnerable groups. By embedding these social criteria, Valencia is ensuring that its energy transition is both inclusive and equitable.
The city’s ability to combine energy production with social impact is a model for other municipalities seeking to share public space with citizen energy while addressing energy poverty. Over 230 kWp of solar capacity is about to be installed on the first three tendered municipal rooftops. They will equip local energy communities with their first operational assets directly benefit vulnerable citizens and.

Valencia’s innovative approach is a powerful example of how social procurement can be used to tackle energy inequality through municipal leadership. To learn more about this model and explore how many different ways there are for a municipality to grow its own energy: