Amsterdam and Copenhagen are developing PEDs. (Image source: Exergio)

Cities are responsible for approximately 75% of global energy consumption and 80% of CO₂ emissions, according to a July 2025 review in Sustainable Futures Journal. To effectively cut energy waste, researchers emphasise the need to shift focus from individual buildings to managing energy at the district level.

Some cities are already embracing this approach. Amsterdam and Copenhagen are at the forefront, developing Positive Energy Districts (PEDs), urban zones designed to produce more energy than they consume. These districts typically combine residential buildings, retail spaces, transport systems, and offices into compact, mixed-use environments. Their design not only maximises energy efficiency but also enables the seamless integration of decentralised energy sources and smart infrastructure.

“We’re sure that more and more mixed-use neighborhoods will appear – but they can’t be treated the same as individual buildings. The complexity creates new challenges,” said Donatas Karčiauskas, CEO of Exergio, a company that develops AI-based platforms for energy optimization in commercial buildings. “We need a uniform set of rules on how energy is managed if we seek global change.”

The International Energy Agency (IEA) also reinforces the importance of this district-wide approach. Its Energy Efficiency Policy Toolkit 2025, released in June, stresses that national policies must support urban innovation by aligning regulations, building codes, and data-sharing frameworks. Without this foundational support, localised energy systems may remain fragmented, reducing their overall impact.

Better HVAC systems

In practice, many of these innovations are being trialled in what are known as “urban living labs”, experimental spaces where cities test new energy systems and management strategies. These labs now include advanced features such as building-integrated photovoltaics, solar-powered cooling, real-time monitoring at the district scale, and predictive heating, ventilation and air conditioning (HVAC) systems.

“When national and municipal strategies align, cities can move faster from policy to implementation. Even in technically advanced districts, we still see energy being used at the wrong time or in the wrong place,” said Karčiauskas. “Digital control plays a bigger role than being just an efficiency tool. At the core, it’s how buildings exchange data and respond to each other. In mixed-use areas, that back-and-forth is what separates smart systems from wasteful ones.”

However, not all projects deliver consistent results. Studies show that the way systems interact across buildings can significantly impact performance. According to energy researchers like Vilius Karčiauskas, the choice of technology may be less important than how energy use is coordinated across the entire district. Adaptive control, where systems automatically adjust energy consumption in response to real-time conditions, is emerging as a key solution.

With the advancement of artificial intelligence, energy optimisation platforms that connect different buildings and infrastructure are becoming increasingly viable. These platforms can collect and analyse large datasets, enabling systems to communicate and adapt to varying demands across a district. This makes them well-suited to support PEDs and other neighbourhood-level sustainability efforts.

As cities continue to grow and face mounting environmental pressures, shifting towards integrated, AI-enabled district energy systems could be a crucial step in reducing emissions and improving efficiency on a meaningful scale.

Protium designs, develops, finances, owns, and operates green hydrogen systems. (Image source: AVEVA)

AVEVA, a global industrial software leader, has been chosen by Protium – the UK’s largest green hydrogen developer – to power its digital industrial intelligence platform aimed at accelerating the development of low-carbon energy solutions.

Through its use of AVEVA technology, Protium has already reduced time spent on process simulation by 30%, boosted reliability by 15%, and identified ways to cut maintenance costs by a further 15%.

The company aims to cut 256,000 tonnes of CO₂ annually, with AVEVA’s software expected to deliver an additional 5–10% savings through optimised process design and utility use.

Protium designs, develops, finances, owns, and operates green hydrogen systems across multiple sectors, helping clients reach net zero goals.

Enabling green industries

The AVEVA-powered platform will use a digital twin to capture, contextualise, and analyse asset performance and operational data. This will allow Protium to identify faults, enhance visibility across operations, and make real-time decisions that improve reliability, minimise downtime, and verify certified electricity origin.

“Our collaboration with Protium brilliantly illustrates AVEVA’s commitment to enabling industrial sustainability,” said Caspar Herzberg, CEO, AVEVA.

“Leading the transition to net zero through emerging technologies requires flexible digital infrastructure. The data platform we’ve developed for Protium is tailored to manage a resilient and agile digital infrastructure in a cost-effective manner, leveraging the full potential of Protium’s industrial intelligence.”

“Green hydrogen is a key stepping stone in the UK’s ambition to cut CO₂ emissions by 1 million tonnes a year by 2030. Achieving this goal cost-effectively and reliably will depend on building the right infrastructure and operating it efficiently. By working closely with AVEVA, we’ve developed the right set of digital tools to enable Protium to deliver green hydrogen at scale – critical at this point when we are about to open a second hydrogen production plant and growing our project portfolio,” said Jon Constable, COO, Protium.

Also read: AVEVA unveils product impact metrics in latest sustainability report

This hydrogen will be converted into green ammonia. (Image source: ACWA Power)

ACWA Power, a global leader in energy transition and the world’s largest private water desalination company, has awarded a convertible front-end engineering design (FEED) contract for its landmark Yanbu Green Hydrogen Project in Saudi Arabia.

The contract has been secured by a consortium comprising Spain’s Técnicas Reunidas and Sinopec Guangzhou Engineering, one of China’s major energy and chemical engineering firms.

Under the agreement, the consortium will deliver the FEED for a facility designed to produce 400,000 tonnes of green hydrogen annually.

This hydrogen will be converted into green ammonia using several ammonia synthesis loops to enable large-scale export and decarbonisation.

Spanning 10 months, the FEED phase will lay the foundation for an engineering, procurement, and construction (EPC) proposal to follow.

The plant is scheduled to be operational by 2030. Técnicas Reunidas has been involved since the project’s pre-FEED stage, while Sinopec’s role builds on its 2024 memorandum of understanding with ACWA Power.

International exports

Located in Yanbu Industrial City, the project is expected to play a key role in decarbonising hard-to-abate sectors. It will harness 5 GW of wind and 5 GW of solar energy, supported by a 400 km transmission line and up to 4.4 GW of electrolysers.

The resulting green hydrogen will be converted into approximately 2.5 million tonnes of green ammonia annually, targeting international markets.

This large-scale initiative supports Saudi Arabia’s ambitions to become a global green hydrogen hub and underlines ACWA Power’s growing role in advancing low-carbon energy solutions.

Marco Arcelli, CEO, ACWA Power, said, “The rapid pace of development on the Yanbu Green Hydrogen Project is a clear demonstration of our commitment to supporting the Kingdom’s long-term energy security while also taking a leadership role in the global transition to sustainable energy. By developing and exporting green ammonia, we aim to support international markets in their decarbonisation efforts and pave the way for a cleaner, more sustainable world.”

Eduardo San Miguel, CEO, Tecnicas Reunidas, said, "This new contract represents a highly significant milestone for Técnicas Reunidas. It is a strategic international energy project that strengthens the cooperation between Saudi Arabia and Europe, in collaboration with our client ACWA Power. The project reaffirms our strong commitment to the Saudi market and marks a major step forward in our strategy in energy transition and decarbonisation and it also reinforces our successful partnership with Sinopec. We are deeply honoured to have been selected by ACWA Power to undertake this landmark project."

Han Weiguo, president, Sinopec Guangzhou Engineering, said, “This project represents a significant leap forward in the global green energy sector and a pivotal milestone in green energy advancement. It will drive global energy transformation and lead the industry toward a sustainable green future. SINOPEC Guangzhou Engineering will collaborate closely with the client ACWA Power and our partner TR to facilitate the implementation of this mega project and make a significant contribution to global green energy development.”

Also read:  AVEVA and Protium aim to accelerate green hydrogen innovation

NMDC Energy continues to experience strong growth. (Image source: NMDC Energy)

NMDC Energy, a subsidiary of UAE-based NMDC Group, has reported continued strong growth in its H1 2025 results

NMDC Energy recorded a 41% year-on-year surge in revenue to AED 8.2bn and a 16% rise in net profit to AED 583mn in the first six months of 2005 as it continued its regional expansion, broadened its capabilities, and diversified its revenue streams.

With award wins in the first half of 2025 totalling AED 13.9bn, and a backlog that stood at AED 49.9bn by the end of June 2025, its pipeline of projects reached AED 66bn by the end of the second quarter.

NMDC Energy’s 400,000 sq m fabrication yard in Ras Al Khair, Saudi Arabia, became fully operational during the quarter, strengthening the company’s offshore EPC and modular construction capabilities across the region.

Mohamed Hamad Almehairi, chairman of NMDC Energy, said, “Our progress this quarter demonstrates NMDC Energy’s pivotal role in building regional industrial capability at pace and at scale, as we charter a strategic path that emphasises future-ready initiatives and targeted growth. These are not just partnerships – they are the building blocks for long-term value and self-sufficiency – as we invest our traditional strengths and emerging opportunities to deliver growth and operational excellence at the forefront of the evolving energy sector.”

Eng. Ahmed Salem Al Dhaheri, CEO of NMDC Energy, added, “We continue to build precision and scale into our operations. We advanced local manufacturing partnerships, expanded regional fabrication capacity, and brought one of the Gulf’s most advanced yards online. These steps position NMDC Energy to undertake more complex EPC work faster and at a greater scale. We are building the next phase of our growth with precision, ambition and impact as we shape a world where infrastructure meets excellence.”

NMDC Energy concluded a three-year extension to its Long-Term Agreement (LTA) with Saudi Aramco and an option for an additional three years,  continuing a strategic partnership focused on offshore projects in Saudi Arabia. The company was also awarded the ICV Excellence Award at MIITE in the Semi-Governmental Manufacturers category, recognising its AED 17bn reinvestment in the UAE economy through support for SMEs, local suppliers and workforce development.