Karen Fraser Scotland Europa. EU Smart Cities & Communities Initiative 1 July 2011

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1 Karen Fraser Scotland Europa EU Smart Cities & Communities Initiative 1 July 2011

2 Agenda Quick introduction to Scotland Europa Setting the scene: EU policy context What is a Smart City? The Smart Cities and Communities Initiative EU Funding for Smart Cities Scotland Europa/ Scottish engagement

3 Scotland Europa - Who we are Scottish Enterprise Scottish Development International Members (public, private, academic)

4 Scotland Europa Members

5 Our team Dedicated EU Policy & Funding resources for SE/SDI, members & Scottish companies Scotland Team EU Funding specialists strategic EU funding support, project development & compliance Close collaboration with National Contact Points Working in partnership with Enterprise Europe Scotland and Scottish European Green Energy Centre Brussels Team Experienced staff focusing on EU policy early warning, interpretation & analysis Direct links with Commission & other regional & national representations in Brussels Engagement with EU business networks & associations e.g. EURADA, ERRIN

6 Setting the scene: EU policy context Europe 2020 Strategy Successor to Lisbon Strategy: strategy for smart, sustainable & inclusive growth An exit strategy to lift Europe from the economic & financial crisis Responding to existing challenges: globalisation, ageing, climate change, pressure on resources Smart growth Flagship initiatives: Innovation Union; Digital agenda; Youth on the move Sustainable growth Flagship initiatives: Resource efficient Europe; An industrial policy for the globalisation era Inclusive growth Flagship initiatives: An agenda for new skills & jobs; Platform against poverty

7 Setting the scene: EU policy context Three broad pillars of EU Energy policy: Climate change Internal market Supply security Climate Change & Energy package: 20% renewables 20% less emissions 20% efficiency 2020 Towards 80-95% less emissions by 2050: Low carbon energy system Roadmap Low carbon economy Roadmap Energy Efficiency Plan Future of Transport White Paper

8 Strategic Energy Technology (SET) Plan Implementation of European Industrial Initiatives, Estimated investment needs to 2020: Wind Grid Solar CCS Bioenergy Nuclear Smart Cities 6 bn 2 bn 16 bn 13 bn 9 bn 7 bn 11 bn

9 What is a Smart City? Building on Existing Initiatives CONCERTO CIVITAS Renewables & efficiency in energy systems 58 Communities; 22 projects Clean & energy efficient urban transport system 25 cities; 5 projects Covenant of Mayors Energy efficiency & renewables 2595 cities Green Digital Charter ICT for energy efficiency 23 cities

10 What is a Smart City? Key Aims Implementing climate goals, especially energy efficiency Accelerating large scale deployment of innovative low carbon technologies Sharing best practice: technological, economic & organisational solutions Local economic development Engagement of citizens Social factors

11 Smart Cities and Communities Initiative: Philosophy Identify common challenges Develop innovative, replicable solutions Bundle demand from cities Attract and involve business and banks Create markets!

12 Smart Cities and Communities Initiative: Main Characteristics Technology focus Priority for energy efficiency SET Plan time horizon : 10 years programme Competitive process based on calls for proposals Stakeholder platform to provide input to the initiative to facilitate knowledge sharing and replication

13 What is a Smart City? Criteria Holistic, long term planning e.g. Covenant of Mayors Sustainable Energy Action Plans to achieve 20% CO2 reductions by 2020 Surpassing EU energy & climate goals Partnership Strong commitment at local level; Engagement of public, private & academic partners, as well as communities Transnational collaboration Replicable projects Potential to unlock markets Innovation Cutting edge exemplar cities, but also learning cities? No population threshold

14 Smart Cities and Communities Initiative: Building Blocks Energy Energy in cities Planning and modelling of flows Energy networks Buildings Electricity and heating & cooling; improved components, systems and data flows Energy consumption in public & private buildings, Retrofitting Supply technologies Electricity and heating & cooling, local production

15 Building blocks (continued) Transport Improve interconnections, inter-modal and co-modal transport; Improve public transport, non-motorised transport, passenger and freight logistics; Low carbon vehicles ICT Cross-cutting applications related to energy or transport Modelling of energy flows

16 EU Funding for Smart Cities No big new funds Making use of existing instruments, budgets Specific calls designed for Smart Cities agenda Greater priority for low carbon, energy agenda New instruments? More emphasis on financial instruments, less grant Bigger budgets? Greater priority for low carbon, energy agenda? Possibility of dedicated fund for SET-Plan?

17 EU Funding for Smart Cities: FP7 Energy Smart Cities 2012 Budget 75 million Demonstration of nearly Zero Energy Building Renovation for cities and districts Heating and cooling technologies for large-scale systems for urban areas Strategic sustainable planning and screening of city plans In total 10 projects of at least 3 cities Time frame: 19 July 1 December 2011

18 EU Funding for Smart Cities: Other FP7 Areas Energy ICT Smart Energy Networks Renewable Energy Generation Smart Energy Grids ICT for Efficient Water Resources Management Cooperative Systems for Energy Efficient and Sustainable Mobility ICT for Energy-Positive Neighbourhoods ICT for Fully Electric Vehicles PPP Energy Efficient Buildings Fuel Cells and Hydrogen Joint Undertaking

19 Intelligent Energy Europe Non-technical barriers, capacity building - soft actions, no hardware Generally minimum three partners, three member states Themes renewables, energy efficiency, transport Specific Smart Cities calls 2011: Local energy leadership transnational integration of sustainable energy policies in operations development and implementation of SEAPs cooperation between public authorities and other actors, particularly energy companies e.g. data sharing Mobilising local energy investments technical assistance Closed 12 May

20 Technical Assistance / Project Development ELENA / EEE-F Technical Assistance project development services for investment programmes & projects grants up to 90% technical assistance local authorities & other public bodies Companies working on their behalf e.g. transport operator, ESCOs High leverage private investment expected

21 Investment Funds European Energy Efficiency Fund (EEE F) EUR 125 m EEPR + EUR 75m EIB = at least EUR 200m Other financial institutions asked to join fund Bankable energy saving, energy efficiency, renewables projects Promoted by local or national public authorities e.g. energy efficiency in buildings (public and private), CHP, microgeneration, decentralised renewables, district heating / cooling, transport, modernisation infrastructure street lighting, smart grids Risk capital fund loans, guarantees, equity European Investment Bank Loans, guarantees, equity Risk Sharing Finance Facility (R&D, linked to FP7)

22 Scotland Europa / Scottish engagement Scottish Steering Group Scottish Government, Scotland Europa, Scottish European Green Energy Sector Public and private sector Scope for collaborative activity Individual cities Pursuing sustainable energy plans and a range of projects European Commission consultation Position papers from Scotland Europa & Scottish Government Individual stakeholder responses European networks ERRIN, Eurocities etc. brokerage events, partnerships

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