Policy objectives on national, regional and local level conflicts of interest?!

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1 Policy objectives on national, regional and local level conflicts of interest?! Robert Hinterberger, NEW ENERGY On behalf of: Austrian Ministry for Transport, Innovation and Technology International Energy Agency (IEA) Paris, 29 October 2014

2 Overview Austrian R&D policy R&D strategies and programmes related to cities Building of Tomorrow City of Tomorrow Smart Cities Demo Transnational RDI programme co-operation Lessons learned INFRA-PLAN: show cases Berlin, Graz, Hamburg Key issues and challenges Suggestions regarding ETP 2016

address grand challenges Energy Research Strategy 2010

3 Austrian R&D-Policy Federal Research, Technology and Innovation Strategy 2011 Research and technology should address grand challenges Energy Research Strategy 2010 guiding principle: Making the Zero Carbon Society Possible!

Policy Targets Energy Consumption in PJ 2020 34% RES 2050 85% RES testo Efficiency RES testo Oil Products Coal Gas

4 Policy Targets Energy Consumption in PJ % RES % RES testo Efficiency RES testo Oil Products Coal Gas District Heating Conventional Power RES Power RES District Heating Heat from RES Bio Fuels Energy Savings Fossil Fuels Renewables

Programmes and Activities National Programmes Multilateral Activities Building of Tomorrow 1999-2012 Smart Cities

.. ERA-NET Eracobuild Long-time approach (> 10 years) is prerequisite for achieving programme goals.

5 Programmes and Activities National Programmes Multilateral Activities Building of Tomorrow Smart Cities MSI Smart Cities D-A-CH City of Tomorrow JPI Urban Europe Smart Cities Demo ERA-NET Eracobuild Long-time approach (> 10 years) is prerequisite for achieving programme goals. ERA-NET Smart Cities & Communities ERA-NET Smart Grids Plus IEA - EBC EIP European Innovation Partnership on Smart Cities and Communities

6 Building of Tomorrow Overall goals of the research programme user and service aspects low energy solar house passive house ecological building materials and systems renewable energy sources energy efficiency renewable raw materials, building ecology Building of Tomorrow comparable costs new buildings energy surplus retrofitting

7 ENERGYbase (passive house office building) 4,500 m² offices 1,500 m² labs 100 % heating and cooling with RES 400 m² PV, ca kwh/a Humidity management with plants

and dust Cost certainty Minimising defect potential on site Optional concrete core (required for Austrian building permit) Energy efficiency

8 LifeCycleTower Wooden hybrid building with up to 30 stories 90 % reduction in CO 2 emissions regarding material Reduced use of resources Innovative prefabrication Short construction time, precision pre-fabrication Low level of pollution during construction phase regarding noise and dust Cost certainty Minimising defect potential on site Optional concrete core (required for Austrian building permit) Energy efficiency and high quality of life Enabling efficiency from low-energy to passive house Individual design of appartments, or offices Good indoor air quality

9 Plus Energy Office / Vienna Energy surplus renovation at Vienna University of Technology Radically reduced energy demand Biggest facade integrated PV facility in Austria

Energy Surplus Renovation (I) Upgrade of building stock from the 60s to the 80s Example: Renovation and upgrade of a 1960s building in Kapfenberg using prefabricated roof and façade elements,

10 Energy Surplus Renovation (I) Upgrade of building stock from the 60s to the 80s Example: Renovation and upgrade of a 1960s building in Kapfenberg using prefabricated roof and façade elements, integrated building services, and grid coupling large prefabricated façade modules (active and passive) including windows and utility modules for heating and ventilation ductwork integrated active elements such as PV modules, solar collector panels and honeycomb solar cells Photo: AEE INTEC 200 m² of solar-thermal collector panels and up to 1000 m² of PV modules on façade and roof renovation of building envelope in short time, independent of weather and without scaffolding, passive house quality (HED 11,50 kwh/m²a)

Energy Surplus Renovation (II) Nineteenth century with a future Innovative modernisation of late nineteenth-century buildings integrated system solution with 80% reduction of energy use to be

including moisture-adaptive vapour barriers, HED: 20-30 kwh/m²a exterior insulation where possible central ventilation facility with heat recovery loft conversion to passive house standard

11 Energy Surplus Renovation (II) Nineteenth century with a future Innovative modernisation of late nineteenth-century buildings integrated system solution with 80% reduction of energy use to be implemented under the currently existing grant regime and replicated at reasonable cost inner sashes of traditional Viennese box-type windows replaced by passive house windows interior insulation including moisture-adaptive vapour barriers, HED: kwh/m²a exterior insulation where possible central ventilation facility with heat recovery loft conversion to passive house standard implementation below 10 % extra cost renewable energy sources integrated in façade: photovoltaic system and solar heating backup vacuum insulation around the terrace area to allow full accessibility, HED: 13,8 kwh/m²a

13 From Smart Buildings to Smart Communities and Cities New compact spatial concepts Building; solar orientation and energy efficiency Smart mobility city of short distances Urban smart grids District heating and cooling

14 Smart City Project Graz Mitte 400 hectar area Retrofitting-Area Solar cooling Solar updraft tower Smart City Coaching smart heat grids integrated façade technologies

Urban Restructuring Lehen (Salzburg) High

efficiency of electricity) The use of thermal

district Energy efficient reconstruction of an

of a specific intelligent energy monitoring

15 Urban Restructuring Lehen (Salzburg) High efficient buildings (building envelope, efficiency of electricity) The use of thermal solar power and photovoltaic in the urban district Energy efficient reconstruction of an office tower of the nineteensixties Development of a specific intelligent energy monitoring Integration of the inhabitants and users Qualitiy control and dissemination

16 Lessons learned Think big : from buildings to building blocks to whole city quarters aim: unlocking synergies 100% renewable electricity produced in the city itself (autarky) is not a reasonable objective Smart City Demo Programm: large-scale demonstration projects integrating buildings, energy infrastructure, mobility, ICT,... Conflicts of interest between different energy carriers and energy service providers Conflicts of interest between all planning levels (especially between best practice demonstration projects and ciy-wide energy planning)

17 Interdependencies and conflicts of interest Quelle: TU Wien/EEG

18 Example: INFRA-PLAN (infrastructure planning in urban modell quarters and hybrid networks) Transnational R&D projects (Austria/Germany) within the Smart Grids/Smart Cities D-A-CH co-operation Focus: integrated infrastructure planning Across different energy carriers and systems (electricity, district heating, natural gas, cooling,...) Regarding different planning levels (modell quarter, whole city, region,..) focusing on interdependencies, conflicts of interest Assesing the role of new technologies (Power-To-Gas, Power-To-Heat) in the context of urban energy systems

19 INFRA-PLAN: Berlin, Graz, Hamburg Berlin Adlershof Graz Mitte Hamburg Wilhelmsburg

20 Methodical approach Multi grid simulation tool (more than 10 years of development) Sub-models for each energy carrier (electricity, heating, natural gas) and conversion components (incl. P2G, P2H) Economic and investment model is running in parallel High time resolution (1 hour) taking into account the characteristics of renewable energy production Opimization of infrastructures (planning horizont of typically years) Ranking of different technology options both from technical and economical side

21 Simulation of transformation szenarios Zeitreihenanalyse Status Quo

22 Key issues and challenges How to overcome (typical) conflicts of interest between the different stakeholders? How to increase the share of renewables in urban heating markets? (much bigger challenge than electricity) Economic future of district heating? How to integrate the local surplus of renewable electricity into urban energy systems? Role of new technologies (Power-To-Gas, Power-To-Heat) Example for conflicting policies and regulations: Power-To-Heat in Berlin/Brandenburg region (Germany)

National and regional policies 1 National Regional Regional targets for renewable production are even much more ambitious than the national ones Ambitious national targets Ranking

23 National and regional policies 1 National Regional Regional targets for renewable production are even much more ambitious than the national ones Ambitious national targets Ranking regarding renewable energy production Share of renewables in electricity mix: 2030: 50% 2050: 80% (currently approx. 25%) Share of renewables (total energy consumption): 2030: 30% 2050: 60%

E N E R G I E S T R AT E G I E 2 0 3 0 D E S L A

regional policies 2 Renewable electricity

installed capacity (end 2013) Electricity demand

Landes Brandenburg (Political) challenge for

24 E N E R G I E S T R AT E G I E D E S L A N D E S B R A N D E N B U R G 1 City and regional policies 2 Renewable electricity production in Brandenburg (Wind + PV): 7,9 GW installed capacity (end 2013) Electricity demand in Berlin: 0,9 2,5 GW Energiestrategie 2030 des Landes Brandenburg (Political) challenge for policy makers in Berlin and Brandenburg Source: David Liuzzo/wikipedia

Electricity: Optimization at level of Transmission System Operator (TSO) 3 How to integrate renewable electricity production into the electricity grids?

25 Electricity: Optimization at level of Transmission System Operator (TSO) 3 How to integrate renewable electricity production into the electricity grids? Number of days per year in control area 50Hertz, in which renewable energy production has been disconnected from the electricity grid (Maßnahmen gema ß 13 (2) i. V. m. 11 EEG) Number of days/year Quelle: Thesenpapier: Power-To-Heat als Instrument zur Effizienzsteigerung der Energiewende (Daten aus [Ziemann 2013], [50 Hertz 2014] Source: Francis McLloyd

26 Heat planning at local level 4 How to use the surplus of renewable electricity production in local heating systems? (Power-To-Heat) Economic competition between different energy carriers/systems (district heating, natural gas, electricity) Surplus of renewable energy production must not be more expensive like other options (e.g. natural gas) On the other hand, electricity produced with fossil fuels should not enter into the heating market What are the main (market) barriers?

zero. Nessesary to remove barriers in 5 different regulations/legal acts Source: Thesenpapier:

27 Barriers for Power-To-Heat 5 Barriers at national level (electricity market design, tax regulations) Indirect costs for district heating operator would be >130 /MWh, even if the electricity price would be zero. Nessesary to remove barriers in 5 different regulations/legal acts Source: Thesenpapier: Power-To-Heat als Instrument zur Effizienzsteigerung der Energiewende (Entwurf; Zahlen bzw. Berechnung nach [Goẗz 2013]

6 Detailed planning and new forms of cooperation (dispatching) between TSO and DSOs are neccessary Objectives: Minimizing the energy loss Avoiding that

28 icklungsplan 2013 (Leitszenario) die us den Versorgungsgebieten der lands konstruieren. Den mit Abstand as auch flächenmäßig größte Gebiet der bis an die Ostseeküste erstreckt und Co-operation between TSO and DSOs Windzahlen mit abbildet. 6 Detailed planning and new forms of cooperation (dispatching) between TSO and DSOs are neccessary Objectives: Minimizing the energy loss Avoiding that electricity produced ouf of fossil fuels is entering the heating market Source: GridLab, 50 Hertz NEP 2013 Optimal locations for P2H? P2H-Capacities? (MW) Hours per year? beiträge aus den Versorgungsgebieten der s [Quelle: GridLab, 50Hertz, NEP 2013]

Integrate different regional and local policies 7 Not more of

Berlin Adlershof: 2q 2015 Integrated planning through all

levels Market barriers have to be abolished at all policy

29 Integrate different regional and local policies 7 Not more of the same, but: Ranking regarding renewable energy production (do not change it!) Planned commissioning of Power-To-Heat pilot project in Berlin Adlershof: 2q 2015 Integrated planning through all energy carriers Integrated planning at different planning levels Market barriers have to be abolished at all policy levels Main question: How could urban infrastructures enable the integration of renewables in the whole energy system?

30 Suggestions regarding ETP 2016 (2nd part) Focus on 3 5 key challenges Discuss typical local situations (show cases) Focus on interactions and conflicts of interest between the different planning levels between different energy carriers and systems BMVIT: interested in co-operation regarding ETP 2016 Timetable and budgetary restrictions: start discussions regarding ETP 2017 as early as possible

31 Thank you for your attention! Robert Hinterberger (on behalf of BMVIT) Tel.:

Austrian and European Policies and Strategies for

1 Austrian and European Policies and Strategies for Smart Cities Ingolf Schädler, Innovation Directorate Austrian and European Policies and Strategies for Smart Cities Conference: Meeting the Urbanization