Portugal

1. Geographical and demographical context
Fundão, a municipality in central Portugal, covers an area of 700 km² and has a population of 26,509 inhabitants. The population density is low, typical of rural areas, with recent growth mostly due to new residents, helping to balance an aging population, of which around 30% are over 65 years old.
This demographic shift can be linked to the Fundão Innovation Plan, a strategic initiative launched in 2012 by the municipality to reverse economic decline and population loss. The plan aims to revitalize the local economy through investment, innovation, and the creation of qualified employment opportunities, making Fundão an attractive place to live and work. As a result, for the first time in decades, Fundão now has a positive migratory balance and serves as a home and natural office for talented individuals from 74 different nationalities.
The local economy is diverse, with key sectors including agriculture, industry and services. In 2021, 3,235 businesses were located in the municipality, an increase of 16.2 % compared to 2011, a dynamic that had a direct impact on the number of employees, which increased by 6.9%.

Agriculture plays a significant role, with the region known for its high-quality cherry production, which contributes substantially to both local and national markets. The industrial sector, though smaller, is marked by innovative companies in technology and renewable energy.
The service sector is growing steadily, driven by tourism and local consumption. Tourism is a vital part of Fundão’s economy, attracting visitors with its rich cultural heritage, natural beauty, and recreational activities. The local government actively promotes sustainable tourism, which has had a positive impact on job creation and local spending. Fundão’s commitment to preserving its natural and cultural resources ensures it remains a vibrant and attractive destination for both residents and visitors alike.

2. Status and future urban development

According to the 2021 census, the municipality of Fundão had 18,389 buildings, 99.8% of which were used exclusively for residential purposes—a trend that remains consistent in current statistics. In recent years, Fundão has focused on urban rehabilitation, promoting the renovation of older buildings and the revitalization of public spaces.

The town center of Fundão is well-served by public transportation, offering multiple bus stops and bike rental options. Surrounding areas benefit from basic transport connections, while Fundão’s train station provides efficient links to major cities, including a 2-hour journey to Lisbon, supporting eco-friendly commuting. The municipality is also connected by key regional roads. However, a challenge persists in improving local mobility and reducing reliance on private vehicles, particularly by enhancing connections between smaller communities and expanding access to public transport.

3. Energy profile and energy policy

Analyzing energy consumption (kWh) per contract and type of consumption location from 2011 to 2020, there was a general reduction across all typologies, except for Warehouses, Religious buildings, Others, and locations with no specified typology. These categories experienced increases in energy consumption of 21.9%, 115.3%, 593.4%, and 339.0%, respectively. (See figure 1 for detailed information by power source).

According to data from the Directorate General for Energy and Geology (DGEG), there was a substantial decrease of approximately 40% in the total consumption of energy by tertiary (non-municipal) buildings, equipment, and facilities in the municipality of Fundão between 2011 and 2020 (see table 1 for detailed information by power source).

The municipality of Fundão utilizes a mix of renewable energy sources, aligning with the national shift towards greener energy. Key sources include solar power, wind energy, and biomass. In 2020, the installed capacity of renewable energy production was 144 MW, and the electrical production was 423 GWh. These renewable sources contribute to the national strategy, which aims to achieve 80% renewable electricity production by 2026, reducing the country’s dependence on imported fossil fuels.
Fundão aims to establish a Renewable Energy Community as part of its broader strategy to promote sustainable development and energy independence. To achieve this, the municipality is involved in several projects that provide crucial technical support, encouraging the participation of local stakeholders, including residents and businesses in the process.

4. Key challenges and priority of actions
Fundão’s strategic vision, aligned with its SECAP, focuses on fostering sustainable and equitable growth through green policies. Key challenges include the high costs of retrofitting buildings for energy efficiency, improving public transport infrastructure, engaging the community in renewable energy initiatives, upgrading public utilities, balancing natural resource management with rural development, and ensuring a just ecological transition.
The vision aims to implement policies that not only reduce carbon emissions but also enhance the quality of life for residents. The municipality’s objectives are as follows:
• Sustainable Buildings: Enhance thermal comfort, passive resilience, and energy and water efficiency in buildings by prioritizing the use of advanced, efficient technologies.
• Sustainable Mobility: Foster sustainable transportation by supporting the energy transition in the transport sector and promoting universal accessibility and efficient travel behaviors.
• Renewable Energy Production: Facilitate the decarbonization of the municipality and boost energy self-sufficiency by engaging the community as active participants in the energy system.
• Sustainable Networks: Improve the efficiency of public infrastructure and resource management to minimize waste and enhance territorial resilience.
• Sustainable Natural Assets: Strengthen resilience, value natural capital, and promote a balanced rural economy and environmental sustainability.
• Ecological, Just, and Cohesive Transition: Integrate ecological and sustainable principles into municipal policies and practices, raising awareness and encouraging citizen participation in sustainable production and consumption.