DECODE – Decentralized Energy Communities with a Digital Economy
DECODE is an inter- and transdisciplinary, internationally coordinated applied research project that reimagines how energy and value can be co-generated, governed, and circulated within communities. Anchored in participatory research, systems thinking, and open-source technological development, DECODE advances a novel approach to decentralized energy transitions by co-designing and implementing Energy-Token Communities (ETCs). These integrated ecosystems combine renewable energy production, tokenized economic systems, and inclusive governance models to enable regenerative urban and rural development, particularly within Positive Energy Districts (PEDs).
Background
The transition towards net-zero energy systems requires solutions that integrate high shares of renewable energy while maintaining grid stability and enabling local value creation. Traditional monetary systems often centralize capital flows and fail to capture or incentivize local socio-environmental values. DECODE addresses these gaps by developing programmable digital tokens (“special-purpose money”) that link energy behaviours, such as peak-hour reduction, prosumer activity, storage, and flexibility with broader circular economy practices (water conservation, waste reduction, urban farming, and sustainable transport). The project is piloted across four diverse demonstrator sites: João Pessoa (Brazil), Maia Municipality (Portugal), Ørland Municipality (Norway), and Southern Sweden (Packbridge packaging industries in Malmö).
Aim and Objectives
The project aims to empower communities through Energy-Token Communities that connect renewable energy with local token economies and participatory governance. Objectives include:
-
Participatory Energy Token Economy Design
-
Piloting Diverse ETCs to validate technical, economic, and social feasibility
-
Co-creation of Open-Source Technological Infrastructure and Innovative Financing
-
Polycentric Governance Frameworks aligning local autonomy with regional and national levels
-
Replication Strategies and Business Models
KTH leads the Swedish demonstrator’s energy-community feasibility study for Packbridge Industries, conducting techno-economic and regulatory assessments for PV-battery installations, peer-to-peer trading, and integration of the Cyclos digital currency framework with open-source energy platforms (Prodigy, MPM, Autarky).
Project Partners
-
Norwegian University of Science and Technology (NTNU), Norway (Coordinator)
-
Maia Municipality (MM), Portugal
-
Lund University (LU), Sweden
-
KTH Royal Institute of Technology, Sweden
-
EnAccess NGO (EnA), Netherlands
-
Fundação Getulio Vargas (FGV), Brazil
-
TU Vienna (TUW), Austria
-
Amsterdam University of Applied Sciences (AUAS), Netherlands
-
Ørland Kommune (ØK), Norway
-
Espaço Municipal (EM), Portugal
-
Packbridge (PB), Sweden
-
Instituto Voz Popular-Jardim Botânico, Brazil
Funding is provided by the Driving Urban Transitions (DUT) Call 2024 (PED Transition Pathway).
Timeframe: 2026-2029 (March 2026 – March 2029)
Keytags: Energy communities, Digital local currencies, Positive Energy Districts (PEDs), Participatory governance, Decentralized governance integration, Sweden
Researchers
