In Galway, Ireland, the answer is the WATERWAY Project – an ambitious initiative led by Galway City Council that is reimagining the city's historic canal network as part of its transition towards a greener, more resilient future.
The project has now been recognised on a European stage, having been selected as a finalist in the 2026 Innovation in Politics Awards, which celebrate innovative political projects delivering meaningful change across Europe. The winners will be announced at the Awards Conference & Gala in Cascais on 30 October.
For the Ireland Portugal Business Network, WATERWAY is particularly interesting as an example of the kind of practical, locally rooted innovation that can create opportunities for knowledge exchange and collaboration between Ireland and Portugal.
Galway City has a long relationship with water. Its canals and millraces once powered mills and supported local industry. WATERWAY takes that heritage and gives it a modern purpose.
The project will install three small-scale hydropower systems along Galway's canals, using compact, enclosed turbines to generate clean electricity from the natural flow of the waterways. The electricity will help power local infrastructure, including EV charging points, while income generated by the systems will be reinvested into Galway's climate initiatives.
It is a deliberately small-scale approach. The turbines can fit into spaces of around three square metres, making the technology particularly suited to Galway's urban and heritage-rich canal environment. The systems are also designed with wildlife protection in mind, including measures to prevent fish from entering the turbine chambers.
But the energy generation is only one part of the story.
WATERWAY is designed around a broader circular model in which clean energy, education, community, tourism and local investment reinforce one another.
The project includes a Living Lab led by the University of Galway, providing training, research and opportunities to develop green-sector skills. Galway City Community Network is leading community engagement, ensuring that local people can participate in consultations, workshops and activities around the project.
The hydropower sites will also be developed as accessible public spaces, connecting Galway's industrial and environmental heritage with opportunities for sustainable tourism.
Importantly, the benefits are intended to remain within the city. Revenue generated from renewable energy can be reinvested in public-building energy upgrades, community climate initiatives and measures addressing energy poverty.
This makes WATERWAY an interesting example of sustainability in practice: not simply reducing emissions, but creating economic, social and educational value at the same time.
Galway City Council became the first local authority in Ireland to receive funding under the European Urban Initiative's Innovative Actions programme, receiving €3.36 million through the European Regional Development Fund towards the €4.2 million project.
The European dimension is also built directly into WATERWAY. Galway is working with transfer partners in Ludbreg in Croatia, Jesolo in Italy and Águeda in Portugal, who are involved in learning from the Galway approach and exploring how its lessons could be applied in their own contexts.
That connection with Portugal is particularly relevant to the IPBN and to the Network's ongoing interest in sustainability, innovation and the exchange of expertise between the two countries.
Galway's experience also demonstrates how European collaboration can work in practical terms: a local project responding to local challenges becomes a testing ground for ideas that can potentially be shared with communities and cities elsewhere.
The WATERWAY Project runs from 2025 to 2029, with the first hydropower installation planned during 2026–27 and the remaining systems and Living Lab activities developing over the following years.
For the IPBN, this makes Galway an especially interesting destination for exploring how sustainability policy becomes practical action on the ground.
The Network is therefore planning a visit to Galway in Q1 2027, where members will have the opportunity to learn more about WATERWAY and other aspects of Galway's innovation and sustainability ecosystem.
We are delighted that the Galway Chamber will already be part of this initiative, helping to build connections between the Irish and Portuguese business communities.
Further details of the visit will be announced later this year.
Interested in joining us in Galway? You can already register your interest by contacting armold.delville@ireland-portugal.com.
The IPBN looks forward to bringing members together in Galway to explore what we can learn from WATERWAY – and, importantly, what lessons and opportunities can be shared between Ireland and Portugal.
| The IPBN is supported by the Department of Foreign Affairs and Trade of Ireland under the ESP Grant programme |
