Smart City Kalundborg Invest in the future or Renovate the past

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1 Smart Cities 11 October2012 in Amsterdam Smart City Kalundborg Invest in the future or Renovate the past Martin Andersen

2 Agenda: Facts about Kalundborg The Climate challenge and transformation towards fossil-free Intermittancy, micro-generation, Energy Efficiency, DER Smart City how to get more for less Smart City Kalundborg a full scale Demonstratorium Conclusions

3 DANMARK 5,5 mio indbyggere KALUNDBORG COPENHAGEN 3

4 4

5 2. The Climate Challenge 2 0 C EU20/20/20 > 2009 Danish Government: how can Denmark become fossil free in 2050?

6 Danish Climate Commission 28 September 2010: The answer is through wind and biomass How to get there? Energy efficiency Electrification and Smart Grid Renewable Energy deployment R&D and Demonstration

7 Source: Regeringen, Vores Energi, nov DK 22% wind power consumption 2020 DK 52% wind power by adding 2100 MW incl. scrapped capacity

8 df Source: EnergiNet.dk df

9 Bundling Energy services in buildings

10 - Or in the industries Energy efficiency Supply Model inducing investments in wind power

11 Public sector should lever the demand for energy services by: Offering its own assets, Public procurement - bundling Collaborating on spatial planning and Facilitating competition which benefits end-users spurring innovation and growth

12 ELECTRIFICATION: Are these grid friendly pro-sumers or just another dumb load?

13 SEAS NVE (DSO): It can only takes 6 EVs to shut down a distribution cable

14 How much value does it accrue to the DSO to agree upon or avert individual deployment of PV in a load-constrained area rather than joining a guild and relocating the good intention to a bare field outside town?

15 BUT WHERE IS THE GROWTH TO FINANCE THIS?

16 4. Smart Cities definition and tendencies: Multiple definitions of a smart city most are good though often too narrow Include importance of non-power sectors such as district heating/cooling, energy efficiency, societal and behavioural change, and not least public sector involvement and spatial planning creating symbiotic synergies getting more out of the same resource = Smart City Kalundborg In a society dominated by scarce resources both Public, Private and Industry must undertake smarter complementary collaboration across sectors revolving around energy generation, -efficiency, -load balancing, and spatial planning

17 2020 integrating up to 52% wind imposes a challenge to the grid AND Cities will impact much on balancing and catalysing energy services OPPORTUNITIES thereby averting or delaying expansion of the grid i.a. through DER, price signals and cooperation on spatial planning

18 Smart City Kalundborg SG energy service platform Financial Markets Weather Forecasts Forcasts Energy Markets Energy Service Providers Enabling Hub Smart Energy Services Smart Energy Services Active Distribution Management Virtual Energy Resources Customer & Service Mgnt Transmission Operations Distribution Operations Generation Transmission Distribution Consumers Transformation Grid-Friendly Services at Work Power Prosumers Communication

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20 Ways to get more for less

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22 Smart City Kalundborg a Demonstratorium

23 New financial models CAPEX&OPEX

24 Involvement of end-users (customers) is crucial how to incentivise flexibility

25 Smart Cities need to be inclusive with the service providers adressing non-proprietary standards letting the markets decide on what services should be supplied. SCK is an authentic playfield for going commercial

26 Service providers to Smart Cities similar to Apps just for energy -

27 - align spikes in power grid by use of (bio)gas or CH4

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29 There is a clear nexus between water and energy and we need to save on both: Water needs energy in all the steps along the water value chain: pumping water for supply and sanitation; delivery of irrigation water, for food- and bio energy production, etc. The energy requirements to produce water is significant. It takes 586 kwh electricity to treat 1 mio liters of water. As water is becoming more scarce and urbanization increases, it is foreseen that water will be transported over longer distances (ref. WssTP 2011) Clash between legislative base, e.g. EU Directives: Conservative estimates predict electricity increases of % over 15 years in order to meet new EU Directive requirements, which conflicts with energy- and CO2 reduction targets. Since 1990 UK Energy consumption in the urban waste water sector has doubled leading to pollution displacement from water bodies to the atmosphere (ref. WssTP2011)

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31 KALUNDBORG INDUSTRIAL SYMBIOSIS SYSTEM 2012

32 9 mio m3 water 3 mio m3 is recycled Recycling potential of 5 mio m3 provided heated to 700 C Smart City Kalundborg also revolves around shifting industry power loads - Manufacturing processes can assist load shifting in a Symbiotic Energy System bringing down e.g. waste water treatment costs Shifting energy loads within Industrial processes, which are not 24/7 are potential for DER e.g.

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34 China production slots today could depict an indicated solution to how DER should work for a smart city integrating all types of energy be it private, public or industry

35 CONCLUSION: PPP answer to get 'More For Less' resource efficiently circumventing scarcity of resources and improper organisational e.g. EPC and ESCOs Bundle consumption, DER and flexible demands with end-users Public planners and administrations need to diversify from traditional deeds acting as proactive catalysts for deploying smart grids symbiotically e.g. water-energy nexus Mixing CAPEX and OPEX enables new technologies to be deployed on market terms Micro-generation and uptakes of new technologies for avoiding extension of capacities of centralised utilities

36 Thank you for your attention! Martin Andersen