Making Cities Work Sustainable Urban Infrastructure
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1 Making Cities Work Sustainable Urban Infrastructure Smart Cities Smart Financing Danish Energy Industries Federation s Annual Conference May 2011, pm DR Byen, Copenhagen Dr. Willfried Wienholt VP Urban Development Siemens One, Corporate Development, Siemens AG willfried.wienholt@siemens.com
2 Cities are the growth engines for their national economies Megatrends imply significant challenges for city decision makers Megatrends Globalization & Urbanization Global players / trade volume increase 2030: 60% of population in cities High density living demands for new patterns in infrastructure Demographic Change 65+ generation will nearly double by 2030 (from 7% to 12%) Need for adequate infrastructures as well as health- and elder care Climate Change Cities responsible for ~80% GHG Need for resource efficiency and environmental care Sustainable Urban Development Cities are competing globally to make their urban areas attractive to live and to invest in Environment Competitiveness Governance Quality of Life Challenge to balance between competitiveness, environment and quality of life, and to finance infrastructure solutions Page 2
3 Sustainable Green Growth Siemens examples for energy efficiency in the city Existing technology achieves high gains in efficiency and CO 2 abatement Renewables CO 2 -free energy to the city Building technologies Traffic management system SIPLINK Wind turbines: Efficiency up from 1 MW to 3.6 MW Example HVDC: China 800 kv, 6.4 GW, 2,000 km 30% less energy used through building energy management Traffic speed: +37% Commuter times cut by 17% 12 tons less CO 2 emissions per ship and day by local grid connection Efficient energy production High-voltage urban link Industry Complete Mobility Street lighting Combined Cycle: From 50% to 60% Steam Power Plant: From 40% to 47% Efficient energy transport by HV close to the consumer 40% less energy consumption with variable-speed drives Higher attractiveness of public transport (reduced waiting and up to 20% fuel savings) Potential in Europe: 3.5 million tons less CO 2 emissions with LED systems Page 3
4 Examples of Siemens solutions to improve energy efficiency Singapore Kranji NEWater Reclamation Plant Treated wastewater from domestic sources is a strategic alternative resource 40,000 m 3 /day plant High-purity water for reuse by industrial customers and aquifer recharge Return of 92000m 3 of water a day into Singapore s water system LED Lighting, Regensburg, Germany A modern city needs high quality of lighting at low cost Cut energy costs by 50% per year Individually controllable and homogeneous radiation Creates a warm white atmosphere Won 1 st price of govt. Competition Energy efficient street lighting Umeå Municipality, Sweden Energy audit for 165 public buildings Scope of work: lighting, heating, ventilation, intelligent building management systems Result: Energy Savings: 20% per year Biomass Plant, Vienna, Austria Europe s largest biomass plant Generates power to supply 48,000 homes with electricity and 12,000 homes with heating Reduces CO 2 emissions in Vienna by 144,000 tonnes per year Savings of approx. 32 mil. m³ of natural gas or approx. 120,000 tonnes of brown coal per year Sustainable urban infrastructure requires a macroscopic view Page 4
5 Siemens insights into "how to become sustainable", jointly developed with major world cities Perception studies Comparative studies Implementation studies Megacity Challenges Comprehensive analysis based on interviews with over 500 city managers in 25 selected megacities Urban infrastructure trends and challenges as well as global best practices Commissioned research to GlobScan and MRCMH Other studies: The Sustainable Cities Challenge in Canada, ICT for Management Green Index Index compares cities across 8 dimensions of sustainability: CO 2, Energy, Buildings, Transport, Waste & Land Use, Water, Air, Governance Started in Europe, rollout in Africa, North/South America,Asia Commissioned research to Economist Intelligence Unit Sustainable urban infrastructure series How to become a sustainable city" with focus on measures for resource efficiency and CO 2 abatement Examples: London, Munich, Yekaterinburg, Dublin, Trondheim,... Page 5
6 Perception Study: The Sustainable Cities Challenges in Canada Study by Siemens, David Suzuki Foundation and GlobeScan The political fight of the century will be the pricing of energy. 73% of experts consider infrastructure renewal & upgrade, transportation issues, and infrastructure funding to be the three most serious challenges facing their cities 73% Tom Rand Practice Lead, Cleantech and Physical Sciences MaRS Discovery District There s no question we have the capacity to do this intellectually; the question is whether or not our political systems can generate the intelligence that our scientists and engineers can." 90% of experts rated transportation as having the highest need for infrastructure investments over the next five to ten years 69% of experts consider their city to be average or below average on adopting sustainable infrastructure solutions 90% 69% Peter Robinson CEO David Suzuki Foundation At the foundation, we believe that investments to protect and enhance natural capital are urgently needed. The David Suzuki Foundation encourages companies like Siemens Canada to continue their efforts to work towards a sustainable future. Page 6
7 Comparative Studies: European Green Index *) 16 quantitative and 14 qualitative indicators in 8 categories were assessed Green action plan Green management Public participation in green policy C0 2 intensity C0 2 emissions C0 2 reduction strategy Nitrogen dioxide Sulphur dioxide Ozone Particulate matter Air quality policies Water consumption Water leakages Waste water treatment Water efficiency and treatment policies Air Water Waste & land use EGCI CO 2 Green governance Transport Energy Buildings Energy consumption Energy intensity Renewable energy consumption Clean and efficient energy policies Energy consumption of residential buildings Energy efficient buildings standards Energy efficient buildings initiatives Municipal waste production Waste reduction policies Green land use policies Use of non-car transport Size of non-car transport network Green transport promotion Congestion reduction policies Prioritization of measures through identification of categories with performance below average *) A research project conducted by the Economist Intelligence Unit, sponsored by Siemens Page 7
8 Green Index helps to identify categories to focus on Overall CO 2 Energy Buildings Transport 1 Copenhagen 87,3 2 Stockholm 86,7 3 Oslo 84,0 4 Vienna 83,3 5 Amsterdam 83,0 6 Zurich 82,3 7 Helsinki 79,3 8 Berlin 79,0 9 Brussels 78,0 10 Paris 73,2 11 London 71,6 12 Madrid 67,1 13 Vilnius 62,8 14 Rome 62,6 15 Riga 59,6 16 Warsaw 59,0 17 Budapest 57,6 18 Lisbon 57,3 19 Ljubljana 56,4 20 Bratislava 56,1 21 Dublin 54,0 22 Athens 53,1 23 Tallinn 53,0 24 Prague 49,8 25 Istanbul 45,2 26 Zagreb 42,4 27 Belgrade 40,0 28 Bucharest 39,1 29 Sofia 36,9 30 Kiev 32,3 1 Oslo 9,6 2 Stockholm 9,0 3 Zurich 8,5 4 Copenhagen 8,4 5 Brussels 8,3 6 Paris 7,8 7 Rome 7,6 8 Vienna 7,5 9 Madrid 7,5 10 London 7,3 Water 1 Amsterdam 9,2 2 Vienna 9,1 3 Berlin 9,1 4 Brussels 9,1 5 Copenhagen 8,9 5 Zurich 8,9 7 Madrid 8,6 8 London 8,6 9 Paris 8,6 10 Prague 8,4 1 Oslo 8,7 2 Copenhagen 8,7 3 Vienna 7,8 4 Stockholm 7,6 5 Amsterdam 7,1 6 Zurich 6,9 7 Rome 6,4 8 Brussels 6,2 9 Lisbon 5,8 10 London 5,6 Waste and land use 1 Amsterdam 9,0 2 Zurich 8,8 3 Helsinki 8,7 4 Berlin 8,6 5 Vienna 8,6 6 Oslo 8,2 7 Copenhagen 8,1 8 Stockholm 8,0 9 Vilnius 7,3 10 Brussels 7,3 11 London Berlin 9,4 1 Stockholm 9,4 3 Oslo 9,2 4 Copenhagen 9,2 5 Helsinki 9,1 6 Amsterdam 9,0 7 Paris 0,0 8 Vienna 8,6 9 Zurich 8,4 10 London 8,0 Air quality 1 Vilnius 9,4 2 Stockholm 9,4 3 Helsinki 8,8 4 Dublin 8,6 5 Copenhagen 8,4 6 Tallinn 8,3 7 Riga 8,3 8 Berlin 7,9 9 Zurich 7,7 10 Vienna 7,6 12 London Stockholm 8,8 1 Amsterdam 8,4 3 Copenhagen 8,3 4 Vienna 8,0 5 Oslo 7,9 6 Zurich 7,8 7 Brussels 7,5 8 Bratislava 7,2 9 Helsinki 7,1 10 Budapest 6,6 10 Tallinn 6,6 16 London 5.6 Environmental Governance 1 Brussels 10,0 1 Copenhagen 10,0 1 Helsinki 10,0 1 Stockholm 10,0 5 Oslo 9,7 6 Warsaw 9,7 7 Paris 9,4 7 Vienna 9,4 9 Berlin 9,3 10 Amsterdam 9,1 15 London 7.7 Page 8
9 The Green Index research series assesses more than 100 cities worldwide US / Canada Green Index (June 2011, Aspen) European Green Index (Dec 2009, Copenhagen) German Green Index (June 2011, tbc) Asian Green Index (Feb 2011, Singapore) Latin America Green Index (Nov Mexico ) African Green Index (Dec 2011, Durban) Page 9
10 Implementation Study: Pilot London *) Findings (time horizon: 2025) Results Levers Insulation Abatement potential Mt CO 2 Average abatement cost / savings EUR/t CO Additional investment bn EUR 10.4 Two-third of all CO 2 - abating technologies pay back their invest ~75% of the abatement potential lies in the hands of individuals / businesses who make technological choices Buildings Heating efficiency Lighting Appliances Other The total investment required constitutes less than 1% of London's total economic output until 2025 Higher car efficiency Conclusions Transport Energy Biofuels Hybrid passenger cars Hybrid bus Other Energy mix CHP , Financial prioritization Broad technology expertise across infrastructure areas is mandatory to identify suitable combinations of solutions > roadmap Sustainability makes city decision makers to think and act as one *) Siemens Sustainable Urban Infrastructure London Study, a research project conducted by the McKinsey, sponsored by Siemens Page 10
11 Further examples on implementation studies executed by Siemens China: business district in a major city - CO 2 abatement CO 2 abatement potential of 46% Gross Floor Area > 10mn m 2, ROI: 3-4 yrs Intelligent building automation (14%) Lighting automation (7%) Energy saving lamps (6%) New Building KPI system (kwh/m²/a) "Siemens is the best among low-carbon experts" 1) European : Energy Efficiency, CO 2 /NO 2 abatement Top 9 technological levers: 512t CO 2 /2,9t NO 2 abatement per year, e.g. Street lighting: 99 GWh > 67 GWh (-31%) Harbor: -81% CO 2 emissions Hybrid bus: -30% CO 2 emissions, 1 mn liter less fuel consumption RoI: 2-8 years Russia: Yekaterinburg Energy Efficiency 2) potential % with "most common" technology 79% with "best" available technology Top 12 technological levers: Cover all infrastructures in the Account for 51% of top-down potential Save 1bn m 3 of gas or 2 days of Russian gas export (2008) Italy: Airport Energy Efficiency 68% less energy cost potential via Solar power Combined heat and power Building insulation and automation Lighting Savings: ~3mn per year 1) Customer comment 2) Within the German-Russian governmental dialogue Page 11
12 Connect technology solutions with RoI analysis Which combination of technology solutions is most suitable to achieve a specific CO 2 abatement? specific RoI-Analysis 1) Technology Innovation Total Economic Value Competitiveness Governance Environment Quality of Life Operation Today? Better CO 2 abatement or energy efficiency specific combination of technologies other combination of technologies Broad technology solution expertise across infrastructure areas is mandatory 1) Return on Investment: Page 12
13 Our unique environmental portfolio makes Siemens the perfect partner for sustainable urban development Page 13
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