Alexander Schlüter, Juan Bernabé-Moreno
Sustainable and Smart Energy Systems for Europe’s Cities and Rural Areas
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Foreword by Fabrizio Rossi |
Fabrizio Rossi, Secretary General of the Council of European Municipalities and Regions (CEMR)
We live in exceptional times, where changes happen at a pace just not imaginable only a few decades ago. The constant movement of transformation across Europe we are witnessing reflects trends and innovations often coming from other parts of the world, sometimes being conceived and developed in our continent. This great transformation has modified the way we interact and communicate, move people and transport goods, make payments, produce and stock energy. And in turn, this silent revolution has become increasingly evident in the space we live in, our cities, towns, villages.
If today there is an element that more and more unites large metropolises with small rural centres, it is precisely this transformation. All our communities want to be smarter in the way they use their resources and provide services to their citizens. This is a silent revolution not only because electric buses produce less noise pollution than petrol ones or because an e-mail is less noisy than fax! It is silent because through a transversal approach, we are transforming our economies and, therefore, our communities.
In fact, being a smart city or a smart rural area today means trying to obtain an integrated approach to services. It is a triple gain if it improves the quality of life of citizens, increases the competitiveness of our economies, and pave the way for a sustainable low-carbon economy. The local transport system cannot ignore the way the energy necessary to make it work is produced, just as public buildings or the house in which we live must respect energy criteria that are growingly attentive to sustainability, and productive activities are reconverting towards a model with a lower impact on the environment and natural resources. And all this would be impossible without the ability to store, analyse and manage huge amounts of data that allow us to optimise production processes and provide more accurate and rapid services to citizens.
The role of municipalities has therefore become crucial to manage and steer a change that is as profound as it is irreversible. A good local administration is, in fact, what can make the difference between a territorial development without order and growth for the benefit of all. For these reasons, the book edited by Alexander Schlüter and Juan Bernabé-Moreno represents a rare opportunity to learn more about the state of the art of this transformation in Europe and how the municipalities across the continent face this great challenge.
All people living in the European territory today should enjoy what Henri Lefebvre called the ‘right to the city’, which perhaps today we should call the ‘right to the community’, since cities and rural areas are united by similar problems and solutions. The right to the community is, therefore, not only the right of every person to access the resources and services of their own territory but also, and possibly above all, to contribute to this transformation so that it takes place in a way that is respectful of all. In fact, no change can make sense for European municipalities if not aimed at the well-being of their citizens, the inclusion of disadvantaged ones, the development of everyone's potential. This is probably the real and pivotal challenge that awaits all of us, both citizens and public administrators.
Brussels in February 2022
Fabrizio Rossi
Foreword by the Editors |
Congratulations! You are one of the few people who read and pay attention to forewords. For this book, it makes sense to do so because we explain how you can use it most effectively to your advantage. This is because we don’t just want to report on technologies and challenges but encourage you and give you tangible recommendations for action.
But who are we – over 40 established international experts – actually writing this book for? It is, of course, intended for all those interested in smart cities and rural areas. We are directing it in particular to those responsible in cities, towns, villages and districts. They are crucially important to ensure that further development in energy, mobility and digitalisation succeeds. They have begun to gather experience in their local areas. We want to supplement this with scientific insights and forecasts while explaining technical terms and contexts in detail. Our aim throughout these chapters is to make you realise the challenges and take interesting approaches on board to enrich the lives of residents. Your municipality can contribute to the success of the energy transition while benefiting from it at the same time. Of course, experts in the field, students and those in the issues covered are invited to advance their education by reading this publication.
But what makes the transformation into a smart municipality worthwhile at all? It’s because smart municipalities permit a more sustainable way of living and are therefore an answer to the major challenges, such as climate change, facing our society. Our environment is changing at an extraordinarily rapid pace – unfortunately, to our disadvantage. The systematic destruction of our planet worsens living conditions and increases the risks to human health, entailing high economic and social costs and leading to species extinction. We are currently living through some of the dangers that face us when the relations between humans, nature and wildlife are thrown off balance – for example, an increased risk of pandemic.
Wouldn’t it be clever to combine the necessary changes with an improvement of our quality of life? And that’s precisely what smart city projects are all about. In this book, we start off with the basics and encourage you to create your own vision and strategy for your smart municipality of the future and to understand your own role and responsibility in shaping it. After that, you will read about the numerous challenges and opportunities presented by energy systems and digitalisation. For the focus areas you will have formulated on this basis, we will point you toward selected funding and subsidy options.
Last but not least, we want to thank all those involved in this project, which has been driven and implemented with great enthusiasm right from the start by E.ON internally as well as by the many external authors. We hope you enjoy the book and the subsequent implementation.
Munich in spring 2021
Alexander Schlüter and Juan Bernabé-Moreno
Foreword to the European Edition |
The feedback on the first book has shown that we seem to have hit the spot with the subject and type of presentation. For this reason, and in response to further climate-linked disasters, we have decided to publish an English edition to cater for a European framework. Compared with the first book, which contained many examples and data from Germany, we have replaced these with references to Europe and the European Union in this edition. And of course we have updated the information in general wherever possible. What’s more, the team has been expanded, and Greenwich, London has made itself available for interview. We are very grateful for this. OK, enough of the foreword. Now it’s time to read, plan and act!
Munich in February 2022
Alexander Schlüter and Juan Bernabé-Moreno
Title Page
Copyright Page
Contents
Foreword by Fabrizio Rossi
Foreword by the Editors
Foreword to the European Edition
Editors and Authors
Editors and Authors
Authors
I Fundamentals and Strategic Planning
1 First Steps towards Smart Municipalities
Alexander Schlüter
2 Vision of a Sustainable Digital Future
Matthew Timms, Laura Färber
2.1 Climate Change and its Consequences
2.2 Digitalisation and Municipalities
2.3 Literature
3 How to Make Your Municipality Smart and Sustainable
Alexander Schlüter
4 Strategic Planning of the Transformation Process
Diana Khripko, Nicky Athanassopoulou, Imoh Ilevbare, Rob Phaal
4.1 Background on Strategic Roadmapping
4.2 Scoping, Design and Planning
4.3 Strategic Roadmapping
4.4 Conclusion and Courses of Action for Smart Municipalities
4.5 Literature
II Integrating Renewable Energy Systems
1 Renewable Energy – Unleashing the Full Potential
Jens Weibezahn, Alexandra Krumm, Pao-Yu Oei, Laura Färber
1.1 Introduction
1.2 Techno-economic Aspects
1.2.1 Electricity Sector
1.2.2 Heating Sector
1.2.3 Mobility Sector
1.3 Socio-economic, Regulatory, and Political Aspects
1.4 Applications of Renewable Energies
1.4.1 Major Cities: Photovoltaic Potential in Berlin and Urban Heat Transition in Hamburg
1.4.2 Towns and Districts: The EC’s Platform for Coal Regions in Transition and Steinfurt’s Masterplan
1.4.3 Rural Areas and Villages: Developing and Exporting 100 % Green Electricity in Schönau and Samsø
1.5 Tenant Electricity: a German Renewable Energy Product
1.5.1 The Principle Underlying Tenant Electricity
1.5.2 Roles in the Tenant Electricity Model
1.5.3 Technologies, Legal Requirements, and Incentives
1.5.4 Metering and Technical Requirements
1.5.5 Why Tenant Electricity is Attractive
1.6 Conclusion and Courses of Action for Smart Municipalities
1.7 Literature
2 Electricity Grids: Moving towards the Smart Grid
Vincenz Regener, Simon Köppl
2.1 Basic Principles of Electricity Grids
2.1.1 Physical Aspects – How Does Power Get from A to B?
2.1.2 What Does Europe’s Grid Infrastructure Look like?
2.1.3 What are the Beginnings of Electric Power Transmission?
2.1.4 What Are the Functions of Grid Operators?
2.1.5 What Are the Challenges the Energy Transition Poses to the Grid?
2.2 How Can the Electricity Grid Be Turned into a Future-capable Smart Grid?
2.2.1 New, Digital Grid Operating Resources and Networking
2.2.2 Transparency for Households: What Do Smart Meters Do?
2.2.3 Flexibilisation of Generation and Consumption: to Support, or at Least Be Compatible with the Grid!
2.3 Microgrids: Innovative Districts as an Individual Solution
2.4 Best Practice for the Use of Smart Grids
2.5 Conclusion and Courses of Action for Smart Municipalities
2.6 Literature
3 Thermal Grids
Hagen Braas, Markus Bücherl, Janybek Orozaliev, Peder Berne
3.1 Status of the Heating Transition in the EU
3.2 Heating Grids Now and in the Future
3.3 Modern District Heating
3.4 Case Studies
3.4.1 100 % Renewable District Heating in Marstal
3.4.2 Combination of Different Infrastructures in London
3.4.3 Malmö’s District Heating System
3.4.4 ectogrid™ in Medicon Village, Lund
3.5 Conclusion and Courses of Action for Smart Municipalities
3.6 Literature
III Using Energy More Efficiently
1 Preparing the Ground with Energy Efficiency
Ron-Hendrik Hechelmann, Florian Schlosser, Henning Meschede, Alexander Schlüter
1.1 Energy Efficiency Based on the Onion Layer Model
1.2 Energy Efficiency in Cross-cutting Technologies
1.2.1 Lighting
1.2.2 Ventilation Systems
1.2.3 Heat Provision and Waste Heat Utilisation
1.2.4 Cooling
1.2.5 Compressed Air
1.2.6 Electromechanical Drives
1.3 Literature
2 Saving Energy in Industry and Commerce
Florian Schlosser, Ron-Hendrik Hechelmann, Henning Meschede, Alexander Schlüter
2.1 What Can Industry and Commerce Do in Concrete Terms?
2.2 Where Does Energy Efficiency in the Industry Reach its Limits?
2.3 Conclusion and Courses of Action for Smart Municipalities
2.4 Literature
3 Operating Buildings More Energy Efficiently
Garance Emmerich-Bundel, Manuel Lindauer, Rita Streblow, Alexander Schlüter
3.1 Background
3.2 Main Energy Consumption Factors
3.2.1 Building Shell
3.2.2 Heating, Ventilation, Air-conditioning Systems for User Comfort
3.2.3 Lighting
3.3 The Role of Digital Technologies
3.4 Regulations for Energy Efficiency of Buildings
3.5 Conclusion and Courses of Action for Smart Municipalities
3.6 Literature
IV Linking Sectors and Storing Energy
1 Sector Coupling and Storage are Crucial for Green Energy
Henning Meschede, Diana Khripko, Alexander Schlüter
2 Storage Systems for Increased Flexibility
Matthias Philipp, Alexander Jäger, Andreas Kießling, Egon Westphal
2.1 Demand for Storage in the Electrical Energy System
2.2 Technologies
2.3 Areas of Application
2.3.1 Battery Systems
2.3.2 Thermal Storage Systems
2.4 Practical Example: “Werksviertel Mitte” in Munich
2.5 Conclusion and Courses of Action for Smart Municipalities
2.6 Literature
3 Using More Hydrogen and Green Fuels
Eugenio Scionti, Matteo Genovese, Christoph Pellinger, Petronilla Fragiacomo, Alexander Schlüter
3.1 Underlying Drivers
Katherina Reiche
3.2 Introduction
3.3 Current Status and Outlook
3.4 Production
3.5 Transmission, Distribution and Storage Infrastructures
3.6 Application in Energy-intensive Industries
3.7 Application in the Power Sector
3.8 Application in Buildings
3.9 Application in Agriculture
3.10 Conclusion and Courses of Action for Smart Municipalities
3.11 Literature
4 Preparing for More Sustainable Mobility
Alexander Schlüter, Matteo Genovese, Petronilla Fragiacomo
4.1 Challenges for the Sector
4.2 Technologies and Outlook for Electric Vehicles
4.3 Charging and Flexibility Options by Connecting to the Energy System
4.4 Conclusion and Courses of Action for Smart Municipalities
4.5 Literature
5 Making Energy Demand More Flexible
Diana Khripko, Henning Meschede, Eva Meschede
5.1 Identifying Load Shifting Potentials
5.2 Practical Examples of a Flexibilisation in the Industrial and Tertiary Sectors
5.2.1 Converting Electrical Energy into other Energy Forms
5.2.2 Adjusting Demand by Switching the Energy Source
5.2.3 Flexibility in Operational Planning and Control of Electrical Facilities
5.2.4 Focus: Commercial Water Supply
5.3 Practical Examples of Flexibilisation in Households
5.4 Conclusion and Options for Action for Smart Municipalities
5.5 Literature
V Digitalising Municipalities and Energy Systems
1 Digitalisation: The Issue of Our Time
Victoria Ossadnik
2 Local Energy Transition: Digitalising Municipalities
Matthew Timms, Laura Färber
2.1 Digitalisation as Key Element of the Energy Transition
2.1.1 Digitalisation of Energy Systems
2.1.2 Digitalisation of Energy Consumers
2.1.3 Tipping Points for Significant Changes in Energy Systems
2.2 Technologies Accelerating the Transition
2.3 Conclusion and Courses of Action for Smart Municipalities
2.4 Literature
3 The Rising Role of Prosumers in the Energy System
Svetlana Ikonnikova, Alexander Schlüter, Bernadette Brandner
3.1 Energy Transition through Digitalisation
3.2 Role of Network Effects Enhanced through Digitalisation
3.3 New Opportunities to Generate Added Value
3.4 Setting Up Data Centres and Using Blockchain
3.5 Conclusion and Courses of Action for Smart Municipalities
3.6 Literature
4 The Foundation of the Digital Transformation: Data and IoT
Giorgio Cortiana, Nicholas Ord
4.1 Growth and Potential of the IoT
4.2 Data beyond Specific Domains
4.3 Data from and to IoT Devices for Controllable Remote Operation
4.4 Conclusion and Courses of Action for Smart Municipalities
4.5 Literature
5 Artificial Intelligence – Enabling Smarter Municipalities
Juan Bernabé-Moreno, Theodoros Evgeniou
5.1 Introduction
5.1.1 Definition of AI and Intelligent Systems
5.1.2 Prerequisites and Limiting Factors for AI: It’s All about Data
5.1.3 Types of Problems and AI Tools
5.2 AI Makes Our Municipalities Smart
5.2.1 Smart Manufacturing
5.2.2 Smart Buildings
5.2.3 Smart Mobility
5.2.4 Smart Energy Systems
5.2.5 Smart Logistics
5.2.6 Smart Farming
5.2.7 Smart Waste Management: towards a Circular Economy
5.2.8 Smart Police and Emergency Services
5.2.9 Smart Healthcare and Sustainability
5.3 The Adoption Path
5.3.1 Ecosystem for Services Development
5.3.2 Processes and Governance
5.3.3 Data and Technology Readiness
5.4 Conclusion and Courses of Action for Smart Municipalities
5.5 Literature
VI Becoming Concrete
1 Integrating Interests and Finding Optimal Financing
Maria Garbuzova-Schlifter, Jakob Kulawik, Philipp Bugs, Kuldip Singh, Aaron Praktiknjo
1.1 Introduction
1.2 Financial Stakeholders
1.3 Fundamentals of Municipality Project Financing
1.4 Selected Financing Options
1.4.1 Debt Financing
1.4.2 Equity Financing
1.4.3 Hybrid Financing
1.5 Selected Funding Options
1.6 Selected Partnership Models
1.6.1 Public-Private Partnership
1.6.2 Joint Venture
1.6.3 Citizens Participation Schemes
1.7 Conclusion and Courses of Action for Smart Municipalities
1.8 Literature
2 Interviews
2.1 Nicolas Lahovnik, Wunsiedel, Germany
2.2 Thomas Bugl and Dr. Götz Brühl, Rosenheim, Germany
2.3 Sarah Butler and Trevor Dorling, Greenwich, London, United Kingdom
3 We Must Act – Now!
Alexander Schlüter, Juan Bernabé-Moreno
List of Abbreviations
Editors and Authors |
Editors and Authors |
Dr.-Ing. Alexander Schlüter
Innovation Manager, New Business, E.ON Digital Technology GmbH.
Lecturer, Technical University Munich (Guest) & REMENA-Programme of the Universities Cairo, Kassel and Monastir.
Dr. Juan Bernabé-Moreno
Chief Data Officer, E.ON; Global Head of Data and Analytics, E.ON Digital Technology GmbH.
Research Fellow, University of Oxford & Universidad de Granada.
Authors |
Dr. Nikoletta Athanassopoulou
Head of Solution Development, IfM Engage, Institute for Manufacturing, University of Cambridge.
Angel K. Batalla, MBA, MA Design
MSc Energy & Sustainability Student, Technical University Munich.
Climate Tech & Sustainability Strategy, Hellenic Republic Asset Development Fund.
Peder Berne, MSc
Project Manager Sustainable City, E.ON City Energy Solutions.
Hagen Braas, MSc
Research Associate, Institute for Thermal Energy Technology, University of Kassel.
Bernadette Brandner, MSc
Former Working Student, E.ON Digital Technology GmbH.
Scholarship recipient, UnternehmerTUM GmbH.
Dr.-Ing. Markus Bücherl
Expert Engineer, E.ON Energy Solutions GmbH.
Philipp Bugs, MSc
Venture Manager, New Business, E.ON Digital Technology GmbH.
Dr. Giorgio Cortiana
Head of Advanced Analytics – Energy Intelligence, E.ON Digital Technology GmbH.
Garance Emmerich-Bundel, MSc, MBA
Senior Manager Technology Enablement, E.ON Energy Infrastructure Solutions.
Prof. PhD Theodoros Evgeniou
Professor of Decision Sciences and Technology Management, INSEAD.
Artificial Intelligence Academic Partner, World Economic Forum.
Dipl.-Pol. Laura Antonia Färber, MSc
Venture Manager, New Business, E.ON Digital Technology GmbH.
Prof. Ing. Petronilla Fragiacomo
Associate Professor of Energy Systems and Power Generation.
Research Head of Fuel Cell and Hydrogen Team, University of Calabria.
Dr. rer. pol. Maria Garbuzova-Schlifter
Global Data Governance Manager & Senior Expert Digital Innovation, E.ON Digital Technology GmbH.
Dr.-Eng. Matteo Genovese
Postdoc and Research Fellow, Fuel Cell & Hydrogen Research Group, University of Calabria.
Dr.-Ing. Ron-Hendrik Hechelmann
Postdoc, Department of Sustainable Products and Processes, University of Kassel.
Prof. Dr. Svetlana Ikonnikova
Associate Professor, Chair for Resource Economics, Center for Energy Markets, TUM School of Management, Technical University Munich.
Dr. Imoh Ilevbare
Principal Solution Development Specialist, IfM Engage, Institute for Manufacturing, University of Cambridge.
Dipl.-Ing. Alexander Jäger
Advisor for Strategic Special Projects and Policy Issues, Bayernwerk AG.
Dr.-Ing. Diana Khripko
Senior Solution Development Specialist, IfM Engage, Institute for Manufacturing, University of Cambridge.
Dr. Andreas Kießling
Head of Associations and Quality Assurance, Bayernwerk AG.
Dipl.-Ing. Simon Köppl
Project Leader, FfE.
Alexandra Krumm, MSc
Research Associate, Europa-Universität Flensburg.
Doctoral Candidate, The Reiner Lemoine Institute.
Jakob Kulawik, MSc
Research Associate, Chair for Energy System Economics, E.ON Energy Research Center, RWTH Aachen University.
Dr.-Ing., Dipl. Math. Manuel Lindauer
Product Development, Calcon Deutschland GmbH.
Freelancer, Fraunhofer Institute for Building Physics.
Eva Meschede, MSc
Research Associate, Institute for Networked Energy Systems, German Aerospace Centre (DLR).
Prof. Dr.-Ing. Henning Meschede
Chair for Energy Systems Technology, Paderborn University.
Prof. Dr. Pao-Yu Oei
Professor for Economics of Energy System Transformation, Europa-Universität Flensburg.
Head of “CoalExit” research group, Europa-Universität Flensburg, Technische Universität Berlin, and DIW Berlin.
Nicholas Ord, MBA, Tech Eng. (Computer Science and Electronics Systems)
Venture Manager, New Business, E.ON Digital Technology GmbH.
Dr.-Ing. Janybek Orozaliev
Group Lead Thermal Components and Systems, Institute for Thermal Energy Technology, University of Kassel.
Dr. Victoria Ossadnik
Board member, E.ON SE.
Member of the supervisory boards of Linde plc. & Commerzbank AG.
Dr.-Ing. Christoph Pellinger
Managing Director, FfE
Dr. Rob Phaal
Director of Research (STIM, CUED), Institute for Manufacturing, University of Cambridge.
Dr.-Ing. Matthias Philipp
Project Manager Product- and Solution Development, Bayernwerk Natur GmbH.
Prof. Dr.-Ing. Aaron Praktiknjo
Chair of the Department for Energy Systems Economics, E.ON Energy Research Center, RWTH Aachen University.
Vincenz Regener, MSc
Research Associate, FfE.
Dipl.-Chem. Katherina Reiche
Chief Executive Officer, Westenergie AG.
Chair, National Hydrogen Council of the German Federal Government.
Dr.-Ing. Florian Schlosser
Postdoc, Department for Energy Systems Technology, Paderborn University.
Eugenio Scionti, MSc
Venture Manager, New Business, E.ON Digital Technology GmbH.
Kuldip Singh, Drs., CMA, CFM
Head of Digital Transformation CS, E.ON Digital Technology GmbH.
Prof. Dr.-Ing. Rita Streblow
Professor for Digital Networking of Buildings, Energy Supply Systems and Users, Einstein Center Digital Future, Technische Universität Berlin.
Chief Engineer, Institute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University.
Matthew Timms, BSc
Industry Advisor, Advent International
Independent Non-Executive Digital Advisory Board Member, Cabinet Office, UKE.
Dr. Jens Weibezahn
Postdoctoral Research Fellow and Marie Skłodowska-Curie Fellow, Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School.
Dr.-Ing. Egon Leo Westphal
Chief Executive Officer, Bayernwerk AG.
I
1 | First Steps towards Smart Municipalities |
Alexander Schlüter
Do you know the definition of a smart city? You don’t? Well, that’s hardly surprising – there’s no official definition setting out specific objectives. So you have to create your own. With our help, if you like. But more about that later.
Our focus in this book is primarily directed at two cross-cutting issues: energy and digitalisation. We also take a brief detour to look at the mobility sector, which is linked to energy. If you want to turn your city into a smart city or your rural area into a smart rural area, creating a vision should be your first step. The next chapter will give you a few ideas of how to do that in relation to the focus areas. This is followed by definitions you can use as models – with reference to the three different types of locality selected as examples for this book. Once you have a vision and definitions, the next logical step is planning. To this end, we provide a model for producing a strategic roadmap for smart city projects. For the sake of simplicity, we use this term in this book to refer to projects for any municipality, which is, in turn, the umbrella term for villages, towns and cities.
But how many people live in urban and how many in rural areas? Figure 1.1 shows the percentages of the population in the European Union (EU) for the three categories used.
Figure 1.1
According to Eurostat’s definition (2020), 39.3 % of the EU’s population live in cities, 31.6 % in towns and suburbs and 29.1 % in rural areas.
But before going there, you should clarify a few fundamentals by asking why – and climate change is only one aspect here. Each individual holding public office should aim to improve how people live (together) in the community. Time and again, the term “quality of life” came up in our interviews and discussions with local decision-makers. A smart population uses technology and data to raise its quality of life to a new level and make its environment more attractive.
Definition of “smart”
A smart treatment of day-to-day issues aims at taking a more intelligent approach than in an alternative scenario. Digital technologies capture data and network us via different terminals. We use the data to explore things that would have taken up more resources or more time in the past. Smart can be defined as, for example, sustainable, easy to access, easy to integrate, elegant, flexible, adaptable, beneficial, easy to deploy, user-friendly, individual, scalable and agile.
What makes an environment worth living in? Its inhabitants should firstly feel happy and secondly get the idea that things are moving upwards. Opportunities should outweigh problems. For this, we need to take a frank look at the past – not to reminisce about the good old days, but to identify areas of improvement.
Were our ancestors able to stream films?
Or could they make cheap phone calls to anywhere in the world at a moment’s notice?
Did they have access to easy-to-use rental bicycles at rent-a-bike stations in cities?
Don’t you agree that maps in apps on our smartphones are much more practical than folding maps made of paper?
And more generally: where would we be without mobile phones? True, some people are suffering from digital overload – but on the whole, they do improve our daily lives. What would I do without my built-in calendar or shopping list – which are networked with other people? And do you remember the pyramid-like phone call chains – how 1980s was that? Today’s familiar apps have made group communication a lot easier, haven’t they?
People ask what they can contribute to the community – and often end up scratching their heads, even though they have a say in who governs them. In our municipalities, authority – and power – is held by administrations and elected executives. They can prepare their area of responsibility for the future. This sounds a bit abstract at first and terribly slow. But you have to look at other municipalities around you to see that it can make a big difference whether issues are addressed with drive, hard work and imagination – or not, as the case may be. In some cities, the air people breathe is poor, in others it is not so bad. In some cities, they wait a long time for the traffic lights to change, even though no other cars are in sight, while other cities have intelligent control systems. In some municipalities, residents are keen to generate (their own) sustainable energy, while in others, locals mount strong opposition to wind turbines – often in a very emotional way driven by fear of change. This is despite the fact that they provide opportunities, particularly in rural areas, precisely because they are indispensable in ensuring the success of the energy revolution.
Eurostat (2020). Urban and rural living in the EU. Data from 2018. Brussels: Eurostat. Retrieved on 29.07.2021 from https://ec.europa.eu/eurostat/de/web/products-eurostat-news/-/edn-20200207-1.
2 | Vision of a Sustainable Digital Future |
Matthew Timms, Laura Färber
Energy and energy exploitation have been at the heart of communities since the agricultural revolution – they are the drivers of progress (Pimentel and Pimentel, 2008). And this progress is based on technologies. For example, steam technology powered the automation of manufacturing processes, which in turn triggered the start of mass production. We are now seeing progress of computing power and connectivity, which are creating a highly connected and digitalised society.
This digitalisation process involves the use of technologies (hardware and software) and connectivity to deliver improved automation and efficiency in business processes, open up new channels for communicating with our customers, or create entirely new business models, which would have been impossible without such connectivity. However, digital transformation also prompts us to review our existing business models and processes to ensure that our organisations are prepared for the new technology-driven ecosystems and commercial horizons ahead.
2.1 | Climate Change and its Consequences |
However, alongside the opportunities offered by digital change, we also face one of the biggest challenges of our times with climate change and its consequences. According to an assessment conducted by the World Meteorological Organization, the years 2015 to 2018 were the four warmest years on record, and global temperature has risen by 1 °C (World Meteorological Organization, 2019).
“Creating a smart, sustainable energy future must be one of the top priorities for 21st century, driven by the urgent need to curb climate change, increasing temperatures and air pollution.”
European Commission (2018a)
This change in the global temperature has led to a significant economic impact on society (European Commission, 2018a). According to an estimate by the Economist Intelligence Unit (2019), climate change could directly cost the world economy nearly USD 7.9 trillion by 2050, causing it to shrink by 3 %. These costs will cascade down to municipalities directly impacting gross domestic product (GDP).
Figure 2.1
It is essential to tackle climate change to combat the worst effects on society and the economy. A key aspect in this process is to switch over to renewable energy generation and stop using conventional power plants, which are fired, for example, by coal (European Commission, 2018a). Municipalities in cities, towns and rural areas will need to make systemic changes to the energy system within their remit. Incentives must be set, encouraging local businesses and consumers to install new renewable energy systems in their areas (Kamyab et al., 2020). In rural areas, an opportunity exists to build larger-scale renewable systems – for example, wind farms –, which can supply neighbouring cities, towns and villages with power. Such plans could also be combined with local re-wilding projects (European Investment Bank, 2019).
Conventional power generation is predominantly centralised, with large-scale upstream power plants connected to local grid areas via high voltage lines. However, with the support of governments and regulatory authorities, megatrends – such as renewable energies, e-mobility, electrification of society and the need for decarbonisation – are driving the transition to a blended model of centralised and decentralised generation. In the end, power generation might ultimately become entirely localised.
For such a switch to decentralised power generation, changes will be needed at the municipal level, with municipalities and energy companies alike reviewing their current infrastructure and modernising it where necessary. This is where digitalisation and automation of the local power grids can play a crucial role. Although in the shorter term this would entail higher costs to upgrade the grids, in the longer term, it would improve reliability and reduce the costs involved in transmission and delivery of electricity between the parties in the grid while offering cities, towns and rural areas the opportunity to turn into smart cities, towns and smart rural areas. The growing demand for e-mobility has reinforced this need for a smart grid infrastructure, as charging services must be built and integrated into the local grid (Färber et al., 2018).
Compared with conventional power plants the disadvantage of renewable energies is that their production volumes are subject to strong fluctuations. So to improve the output from renewable energy systems, storage technologies will play an increasingly important role (Lu et al., 2021). Electric power storage systems can store excess electricity and then feed it back into the grid when electricity generation levels are lower (OECD, 2018). As electricity prices can rise sharply when low production levels coincide with high demand, one can use storage technologies to improve the availability of electricity at any given time, with a correspondingly positive impact on the cost structure of electricity for local businesses and consumers. In the same way as charging stations, storage capacities need to be expanded and integrated into the local power grid.
However, a carbon-neutral future does not just require changes to the production, distribution and storage of electricity or how it is used for mobility. It also entails changes to heating and cooling. So an essential aspect of decarbonisation is for district heating planning to encompass electric and heat storage systems. District heating and cooling solutions will allow municipalities to become more energy efficient (Geels, 2018). What’s more, efficiency in the supply of heat forms a key component in making buildings more energy-efficient.
The real added value for city, town and rural area municipalities, as well as consumers and producers, lies in establishing an integrated and sustainable energy system, which delivers economic, ecological and social benefits to local areas and increases their autonomy. A sustainable energy future is essential for decarbonisation and supports the fight against climate change.
Alongside energy, mobility also forms a significant building block in creating a carbon-neutral planet and flourishing economy. Municipalities need to provide the necessary infrastructure to bring about a modal shift from fuel-powered transport to carbon-free transport (Brozynski and Leibowicz, 2018). They have to establish sustainable transport systems and build up capacity for the distribution of goods so that residents can travel using sustainable forms of transport (Geels, 2018). Administrative and legislative authorities should review whether further incentives can be introduced for using public transport or modern schemes – such as carsharing or rental bikes – and whether a more environmentally friendly system for transporting goods can be established. Autonomous vehicles and automated freight vehicles will become part of the cityscape in the future. Studies suggest that these solutions could optimise traffic flows and in turn, reduce congestion. What’s more, electrifying the mobility sector would decrease particulate pollution, improving citizens’ health (Khomenko et al., 2021).
New technologies will sustainably change the mobility sector. There will be a significant increase in e-mobility, hence the need to build new or upgrade existing infrastructure. Hydrogen, too, will change the energy system and mobility sector.
A more extensive use of drones or the invention of flying cars are also conceivable, although such developments would have a knock-on effect on aviation safety and increase the demand for new parking facilities. After all, underground car parks, for example, are not exactly suitable for flying technologies. Conceivable solutions in this respect could be sky parking or landing pads on buildings.
2.2 | Digitalisation and Municipalities |
Digitalisation, data and artificial intelligence (AI) have already impacted on the energy system and how we live together. All parts of society are becoming interconnected – we are generating more data on our devices than we ever did before in all aspects of our life. Smart municipalities will become increasingly connected, and their buildings and means of transport will be exchanging data in real-time. The number of sensors and other data communication technologies will continue to grow. The speed of connectivity is also set to rise, thanks to 5G telecommunications. And this will open up opportunities for municipalities and all parts of the community to use this data to drive efficiency and create transparency in their energy systems, including consumption and generation.
Digitalisation will be a crucial requirement for this local and decentralised energy system to function effectively. The installations within such a system have to be interconnected to ensure the security of energy supply, create transparency in the flow of energy and simplify billing between the various players.
Progress in technology offers potential for people locally. One specific example is vehicle-to-grid, in other words, the use of electric car batteries to balance grids and potentially sell electricity between different users on the grid. And that is not all – technologies such as blockchain will make it possible for different energy assets, such as e-cars and buildings, to buy and sell energy between each other, based on supply and demand.
The storage systems integrated into the grid and renewable energy systems will need to be connected to an energy ecosystem powering an Industrial Internet of Systems and producing data on their availability and performance for consolidation and optimisation. The additional data generated by the systems will increase the system’s efficiency and offer the additional benefit of near real-time fault and maintenance management (PwC, 2017). Artificial intelligence will become increasingly common for managing the amount of data created by the systems in the grid and allowing complete transparency of the system (Ahmad et al., 2021). To this end, it is of the utmost importance to improve the quality and real-time sources of data from the grid (Deloitte, 2017) and technology is required to ensure it is possible to route energy and control systems in real-time based on demand (Deloitte, 2020).
For technologies to interact in this way in the future, it is essential to ensure the security of data and systems so that the supply of energy can be guaranteed at any given time. All the more so, if a hacker attacked part of the technology, the sectors connected to this technology would also be affected. For instance, energy systems and grids in Ukraine were attacked by hackers (Greenberg, 2019), causing a threat to energy supplies.
When thinking about smart cities of the future, perhaps we should look to science fiction for inspiration. Seamless high-speed transport systems, digital signage, urban agriculture, open areas given over to pedestrians and nature (while transportation takes place in the skies and drones complete the final miles of delivery), integrated energy supplies in buildings, nature and architecture combined in beautiful shapes and forms, autonomous passenger and freight transport, local 3D printing of goods, a hyperconnected infosphere of data about the city available to you on your smart contact lenses, autonomous buildings, robots, hydroponic agriculture and space launches or orbital lifts are just a few of the fictional examples of life in the future. And technology is gradually catching up with this fictional image.
Concepts such as localisation and self-supply will become increasingly familiar in society, with smart cities of the future generating at least part of their energy needs, cultivating their food, and converting used materials into raw materials for re-use. Based on these concepts, the future could become hyper-localised, without the need to transport goods across hundreds or thousands of kilometres, which would reduce the carbon footprint of agriculture and freight transport.
While urbanisation is a megatrend, with forecasts of urban populations reaching nine billion (European Commission, 2018b), the COVID-19 pandemic will put this trend to the test, as lockdowns across the World have prompted people to reconsider their life priorities (Guardian, 2020). Yet what does this mean for the city of the future, and what will society need? COVID-19 has made it clear that many jobs can be performed digitally from any location, leading to an exodus away from towns and cities towards rural communities. Cities of the future will have to adapt to the fact that proximity to work is becoming less and less important, whereas living space, internet connections and access to green space are gaining importance. It, therefore, follows that demand for office space will go down, with public earnings in built-up areas likewise declining. On the other hand, authorities in suburbs and rural areas will have to consider additional demands from incoming residents in terms of energy supply, expansion of the public infrastructure and connectivity.
2.3 | Literature |
Ahmad, T.; Zhang, D.; Huang, C.; Zhang, H.; Dai, N.; Song, Y.; Chen, H. (2021). Artificial Intelligence in Sustainable Energy Industry: Status Quo, Challenges and Opportunities. Journal of Cleaner Production, 289, p. 125834. Amsterdam: Elsevier.
Brozynski, M. T.; Leibowicz, B. D. (2018). Decarbonizing power and transportation at the urban scale: An analysis of the Austin, Texas Community Climate Plan. Sustainable Cities and Society, 43, pp. 41–54. Amsterdam: Elsevier.
Deloitte (2017). Innovation in Electricity Networks. Retrieved on 10.01.2021 from https://www.energynetworks.com.au/resources/fact-sheets/innovation-in-electricity-networks-fact-sheet.
Deloitte (2020). Unlocking growth in energy retail – Building revenue by giving customers what they want. London: Deloitte Touche Tohmatsu.
Economist Intelligence Unit (2019). Global economy will be 3 percent smaller by 2050 due to lack of climate resilience. Retrieved on 14.01.2021 from https://www.eiu.com/n/global-economy-will-be-3-percent-smaller-by-2050-due-to-lack-of-climate-resilience/.
European Commission (2018a). A Clean Planet for all. A European long-term strategic vision for a prosperous, modern, competitive and climate neutral economy. Brussels: European Commission.
European Commission (2018b). Continuing urbanisation. Retrieved on 24.01.2021from https://knowledge4policy.ec.europa.eu/continuing-urbanisation_en.
European Investment Bank (2019). New Rewilding Europe Capital loans to enable transformative rewilding projects in Finland and Portugal. Retrieved on 11.01.2021 from https://www.eib.org/en/press/news/new-rewilding-europe-capital-loans-to-enable-transformative-rewilding-projects-in-finland-and-portugal.
Färber, L. A.; Balta-Ozkan, N.; Connor, P. M. (2018). Innovative network pricing to support the transition to a smart grid in a low-carbon economy. Energy Policy, 116, pp. 210–219. Amsterdam: Elsevier.
Geels, F. W. (2018). Low-carbon transition via system reconfiguration? A socio-technical whole system analysis of passenger mobility in Great Britain (1990–2016). Energy Research and Social Science, 46 (July)., pp. 86–102. Amsterdam: Elsevier.
Greenberg, A. (2019). New Clues Show How Russia’s Grid Hackers Aimed for Physical Destruction. The Wired. Retrieved on 10.01.2021 from https://www.wired.com/story/russia-ukraine-cyberattack-power-grid-blackout-destruction/.
Guardian (2020). Escape to the country: how Covid is driving an exodus from Britain’s cities, 26 September 2020. Retrieved on 24.01.2021 from https://www.theguardian.com/world/2020/sep/26/escape-country-covid-exodus-britain-cities-pandemic-urban-green-space.
Kamyab, H.; Klemeš, J. J.; Fan, Y. V.; Lee, C. T. (2020). Transition to Sustainable Energy System for Smart Cities and Industries. Energy, 207, pp. 118104. Amsterdam: Elsevier.
Khomenko, S.; Cirach, M.; Pereira-Barboza, E.; Mueller, N.; Barrera-Gómez, J.; Rojas-Rueda, D.; de Hoogh, K.; Hoek, G.; Nieuwenhuijsen, M. (2021). Premature mortality due to air pollution in European cities: a health impact assessment. The Lancet. Amsterdam: Elsevier.
Lu, B.; Blakers, A.; Stocks, M.; Cheng, C.; Nadolny, A. (2021). A zero-carbon, reliable and affordable energy future in Australia. Energy, 220, pp. 119678. Amsterdam: Elsevier.
OECD (2018). Power struggle: decarbonising the electricity sector – Effects of climate policies, non-climate policies, and political economy factors on decarbonisation. Environment Working Paper No. 139. Paris: OECD.
Pimentel, D.; Pimentel, M. H. (2008). Food, Energy, and Society. 3rd edition, London: CRC Press Taylor & Francis Group.
PwC (2017). Predictive Maintenance 4.0, Predict the unpredictable. Amsterdam: Pricewaterhouse-Coopers B. V.
World Meteorological Organization (2019). WMO confirms past 4 years were warmest on record. Retrieved on 14.01.2021 from https://public.wmo.int/en/media/press-release/wmo-confirms-past-4-years-were-warmest-record.
3 | How to Make Your Municipality Smart and Sustainable |
Alexander Schlüter