Energy Efficiency and Smart Cities in Germany Status & Perspectives

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1 Energy Efficiency and Smart Cities in Germany Status & Perspectives August 27th, 2013, Chicago/USA Dr. Hartmut Grewe, energiewaechter GmbH, by order of Energy Efficiency Export Initiative sponsored by the Federal Ministry of Economics and Technology

2 Agenda Global Reasons for Energy Efficiency Governmental Strategies and Projects to Improve Energy Efficiency: Overview of German Activities Smart City Development: Theoretical Approach and Pilot Projects Energy Efficiency Export Initiative and Participating German Companies

3 Reasons for Energy Efficiency

4 1100 Reasons for Energy Efficiency: Rise of the Global Mean Temperature / Need for CO2-Reduction Human Impact on Atmosphere Vostok Ice Core: IPCC 2000 Szenarios for 2100 AD the record of the last 420,000 years Today 360 ppbv CH ppmv CO ka BP Source: WDCP/IPCC

5 Reasons for Energy Efficiency: Saving Money in Production Development of Consumer Price Indices in Germany Electricity Gas Heating Oil Solid Fuels Central and District Heating = 100 Source: German Federal Statistical Office, May 2011

6 Reasons for Energy Efficiency: Reduction of Dependency on Imports 3% Mineral Oil 11% Natural Gas 97% 89% Import dependency and self supply of selected primary energy carriers in Germany (2010) 24% Hard Coal 76% Source: adapted from AGEB 2010, BGR-Database

7 Reasons for energy efficiency: Regional concentration of fossil resources Source: Federal Institute for Geosciences and Natural Resources, 2007

8 Governmental Strategies and Projects to Improve Energy Efficiency Overview of German Activities

9 Energiewende Goals at a glance 100% CO2-Emissions Renewable Energies 60% 100% Energy Consumption 80% 60% 50% 20% 10% 18% Source: adapted from BMWi

10 Energiewende Action Plan Overall concept Energy policy for growth and wealth Goals Secure, affordable and environmentally friendly energy supply Dimensions Grid Power Plants RE EnEff Research Federal, state, local authorities & EU: Framework Actors Economy / Companies: Private Investments, Business Segments Public / Citizens: Acceptance, Contribution, Investments Monitoring Annual Report & every three years Progress Report Source: adapted from BMWi

11 Energiewende Main Challenges Increasing electricity prices Willingness / ability to pay for renewable energies Distribution of costs between energy-intensive and other industries Decreasing international competitiveness of the industrial location Germany? Social equity - support for low - income households? Grid Stability Costs and acceptance of grid expansion to secure energy supplies

12 Governmental Strategies and Efficiency Projects Governmental Instruments to Increase Energy Efficiency in Buildings and Industry Regulatory Policy Legal Requirements for Energy Saving Obligation of Replacement Financial Support Loans and subsidies Tax incentives Promotion Market Transparency Pilot Projects Information Qualification of Experts Source: adapted from German Energy Agency (dena)

13 German Energy Savings Strategies Objectives of New Energy Concept (September 2010) New standard Climate Neutral Buildings to reduce primary energy consumption of buildings by 80% (2050) Doubling of refurbishment rate (1% 2%) New financial incentives ( CO 2 -Building Refurbishment Program, Market Incentive Program to integrate RES in buildings, Industry Refurbishment Program, etc.) by KfW-Banking Group Energy Efficiency Funds (financial incentives to promote Energiewende) Harmonization of legal framework for Energy-Contracting Exemplary role of government in the implementation of energy efficient measures Source: BMWi

14 Energy Savings (PJ) in Different Sectors of German Economy Source: Prognos Study 2011

15 Smart City Development: Theoretical Approach and Pilot Projects

16 Smart City New Definition of Urban Development Environmentally sustainable and socially inclusive process, which systematically and intelligently combines information and communication technologies (ICT) with central elements of urban development such as transport systems, energy infrastructure, and other public services Central aspects are: Energy efficiency (energy management systems and smart grids) Consumption control through intelligent measurement and control technologies (metering and smart homes) Connected transport and mobility concepts (traffic control, car sharing) IT-solutions for citizens participation and efficient administration (e- Government)

17 Improving Energy Infrastructure through Smart Grids smart grid is a digital network that unites electrical providers, power-delivery systems and customers, and allows two-way communication between the utility and its customers. Smart grids have the potential to improve the efficiency of energy distribution and usage, both through the grids design and through consumer participation. Ideally, smart grids are also intended to work with multiple power sources, including wind and solar sources, and perhaps eventually small individual sources and ones that provide automotive power.

18 Smart Grid: How it works

19 Combining in a smart way power generation and consumption Eliminate waste Smart Grids Enhance network reliability and stability, to prevent electrical blackouts Balance the fluctuating power generation from renewable energies and electricity consumption The use of smart meters helps consumers to reduce consumption and provides efficiency advice Decentralizazion

20 Communication among components of all energy networks Smart storage Smart generation Smart consumption Smart distribution

21 E-Energy Smart Grids made in Germany Much more energy is produced by decentralized renewable energy sources Energy generation and consumption have to be kept continuously in balance E-Energy: ICT-based Energy System of the Future is a new support and funding priority undertaken by the Federal Ministry of Economics and Technology (BMWi) Primary goal: create E-Energy model regions that demonstrate how the potential for optimization presented by information and communication technologies (ICT) can be exploited to achieve efficiency, supply security and environmental compatibility. The BMWi finances four model regions (40 Millions Euros). The Federal Ministry for Environment, Nature Conservation and Nuclear Safety (BMU) finances two model regions.

22 The vision of Morgenstadt by Fraunhofer-Society: Joint research project towards smart and sustainable cities Energy: Renewable energies, energy efficient technologies and communicating energy grids will become the drive-train of tomorrow s cities. Buildings: New technologies allow buildings to communicate with their local environment and to produce more energy than they consume. Production & Logistics: In the future city transportation and handling of goods will happen fluently within intelligent structures of production and distribution. Mobility: Highly efficient mass transit systems or emission free mobility-on-demand solutions represent some of the groundbreaking solutions to be analyzed and developed further. Information & Communication: Technologies (geographic information processing, wireless internet and smart-phones) enable communication between devices, buildings, vehicles and people. Urban Processes & Organisation: In the city of the future, life and work will be characterised by short distances and by the freedom to realize individual life- and workstyles. At the same time people will have multiple opportunities for participating in decisions on the development of their city.

23 Participating German Companies Company Representative Business segment B.A.E.R. Becsei + Hackenbracht Mr. Stephan Becsei Green city, rainwater management Dr. Neuhaus Telekommunikation GmbH Edur Pumpenfabrik GmbH & Co. KG Mr. Detlef Einacker Mr. Larry Shanley Smart metering Systems engineering

24 Participating German Companies Company Representative Business segment eks Engel GmbH & Co. KG Mr. Stephan Gessner Electrical engineering E-Senza Technologies GmbH Mr. Amit Shah Smart metering, energy efficient heating systems Koch Architekten Mrs. Charlotte Koch Architecture

25 Company Representative Business segment mottai GmbH Mr. Marcus Todt Smart grid, smart home Schott AG Mr. Konrad Steinert Dr. Roland Weidl Illumination, ecologic construction systems

26 Thank you for your attention! Contact Details: Dr. Hartmut Grewe, energiewaechter GmbH

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