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01 April 2026

Senior Associate Professor Yang Liu is coordinating a European project in which, together with several cities, he aims to develop a framework for how an urban district can generate its own positive energy balance.

Man in front of screen. Photographer: Ulrik Svedin
Yang Liu, Senior Associate Professor.

“The idea is relatively straightforward. It is based on the principle that energy should not be transmitted over long distances but produced as close to the consumer as possible. Our concept of energy also includes heat, heating, and cooling,†says Yang Liu, Senior Associate Professor at the Division of Environmental Technology and Management at Department of Management and Engineering, Linköping University.

The work concerns the implementation of Positive Energy Districts (PEDs), and interactions between different energy solutions that today are not fully utilised.

Toolbox

“We imagine that energy will be used more directly, with storage taking place when conditions are optimal. In today’s energy system, we remain dependent on production at a distance, as well as storage and transmission. This slows down Europe’s entire climate transition. We lose important synergies when production is located far from the consumer.â€

The project will result in, among other things, a framework and an open, scalable decision-support toolbox for policymakers. The work is based on a transdisciplinary co-creation method in so-called Living Labs in four municipalities: Lund in Sweden, Lyngby-Taarbæk in Denmark, Winterthur in Switzerland, and Fuengirola in Spain.

“In these real-world settings, we will work directly with municipal planners, energy providers, small and medium-sized enterprises, and community representatives to test, evaluate, and refine both the framework and the toolbox. Collaboration with the municipalities will be essential for finding solutions that are both in demand and functional,†says Yang Liu.

Simulate scenarios

The project spans many fields. It concerns optimisation and energy efficiency throughout the year.

But can a district become entirely self-sufficient in energy?
“Technically, with enough storage, it is possible. But it is often not economically feasible,†Yang Liu explains.

“Instead, we look at the whole year. The goal is for the district to generate an annual net surplus of renewable energy. The framework and the toolbox will enable cities to simulate various PED scenarios and assess both technical and economic feasibility. It may involve solar cells, geothermal energy, and wind power, but also smart solutions for capturing and reusing heat. Optimisation is crucial, such as determining the best times for producing and storing energy.â€

Energy justice

The toolbox is also intended to help decision-makers navigate the often complex regulatory landscape surrounding energy issues, as well as assess socio-economic impacts and energy justice.

“This ensures that our solutions are practical, user-friendly, and adaptable to climatic, social, and regulatory conditions. In this way, the project contributes directly to evidence-based and equitable urban planning,†says Yang Liu.

The concept of energy justice is about recognising that all neighbourhoods are needed when a city aims to maximise its energy system. This means energy production and consumption must be optimised regardless of socio-economic circumstances.

Social sciences

“We cannot exclude any group, such as vulnerable households, low-income residents, or refugees. They must be integrated into the energy system even if they do not own their homes or lack financial resources. This is why a form of ‘energy justice’ is necessary to address these challenges.â€

Do you collaborate across disciplines on this?
“Yes, and social sciences, not only technology, are becoming increasingly important in this type of project. At the Zurich University of Applied Sciences (ZHAW), for example, we collaborate with social science experts on these exact issues.â€

The €1.61 million SMART-PEDs project is co-funded by the European Union’s Horizon Europe framework via the Driving Urban Transitions (DUT) partnership, and is supported by national funding agencies such as the Swedish Energy Agency.

The project began on 1 January 2026 and will conclude on 31 December 2028.

PED stands for Positive Energy Districts and refers to urban areas that not only meet their own energy needs but also generate a surplus of renewable energy. Energy efficiency, as well as local energy production, becomes important components in energy-positive urban areas.

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