Navigant Research Blog

Cities Are Making the Energy Cloud a Reality

— October 12, 2014

The possibilities for procuring and distributing clean, low-cost electricity offer challenges to cities and utilities – but also opportunities to forge new relationships and lay the foundations for cities that are clean and efficient in their energy use.

I’ve written previously about the close relationship between smart cities and smart grids.  Early projects have largely been driven by utility programs for the piloting and demonstration of smart grid technologies and to gather intelligence on consumer and business responses to energy management programs.

The challenge is to integrate the lessons learned from these projects into broader smart city programs.  Cities have played a role in these pilots but have largely been supporters of utility-driven technology programs.  This is changing as cities develop more extensive energy management strategies of their own.  Boston, for example, is working closely with its local utilities (National Grid and NSTAR) to reduce its $50 million-plus energy costs and meet the goal set in 2007 to reduce greenhouse gas (GHG) emissions 25% by 2020 and 80% by 2050.   The city is targeting energy consumption across residential and commercial properties.  Other initiatives include the introduction of an energy management system for Boston’s public buildings and the deployment of LED street lighting.

New Collaborations

Minneapolis is going further.  The city is using the renegotiation of its franchise relationship with its utilities (which governs their access and use of city resources such as roadways and buildings) to establish a new form of collaboration that it believes can be a model for the rest of the United States.  The proposed Clean Energy Partnership between Minneapolis and its electricity and gas suppliers, Xcel Energy and CenterPoint Energy, will create a new body focused on helping the city meets its climate action goals of reducing GHG emissions 15% by 2015 and 30% by 2025 based on a 2006 baseline.

The increasing focus of city leaders on energy efficiency, reduced GHG emissions, and the development of a more resilient infrastructure requires close partnership with utilities.   Cities like Boston and Minneapolis are pushing their utilities to help them meet their commitments, but the cities themselves are also taking a more active role.  The Greater London Authority (GLA), for example, has become the first local government authority in the United Kingdom to be licensed as a “junior” energy supplier.  This enables London to buy power from small generators and sell it to other public bodies at an attractive rate.   The city expects to be buying and selling power by early 2015, and it hopes to reduce energy costs for London while also boosting the local renewable energy industry.

A Vision Emerges

The emerging energy vision for smart cities integrates large- and small-scale energy initiatives: from improvements in national infrastructure through citywide increases in efficiency to expanded local energy generation.  Cities will thus become clusters of smart energy communities that can exploit the benefits of the new energy systems, such as distributed generation, dynamic load management, and active market participation.

This synergy presents an excellent example of the opportunities and challenges presented to utilities by the emergence of the energy cloud.  Utilities need to see cities as more than demonstration sites for technology.  Cities are ideal partners for developing the new relationships and the new services core to that energy cloud vision.

These issues are explored further in a new Navigant Research white paper, Smart Cities and the Energy Cloud.  I will also be discussing these developments in my presentation on Smart Cities at Korea Smart Grid Week in October and at European Utility Week in November.

 

Results In for San Francisco’s Parking Experiment

— October 1, 2014

Navigant Research’s Smart Parking Systems report examines technologies and policies that have the potential to reduce both congestion and greenhouse gas (GHG) emissions in cities.  San Francisco has been one of the cities at the forefront of parking innovation with its SFpark project.  The city’s assessment of the project, recently released, has significant lessons for cities considering similar solutions.

SFpark was an extensive smart parking trial run by the San Francisco Municipal Transportation Agency (SFMTA) and largely funded by the U.S. Department of Transportation, which provided 80% ($19.8 million) of the program’s total cost of $24.8 million.  The project encompassed approximately 6,000 metered on-street parking spaces (about one-quarter of the city’s total supply) and 12,250 parking spaces in 14 city operated garages (75% of the spaces managed by SFMTA).  Around 11,700 parking sensors were deployed, along with 300 repeaters and gateways.  The key strategic initiatives in SFpark included:

  • Real-time parking availability information to make it easier to find a parking space
  • Demand-responsive pricing to create parking availability
  • Longer time limits at parking meters to make parking more convenient
  • Meters that make it easy to pay by credit card and other forms of payment
  • Garage facility upgrades to make garages more convenient

How It Worked in Practice

According to the SFpark Pilot Project Evaluation, the amount of time that the target parking occupancy (60% to 80%) was achieved increased by 31% in pilot areas, compared to a 6% increase in control areas.  In so-called high payment (HP) compliance pilot areas (where people tend to pay the meter most of the time), achievement of the 60% to 80% target occupancy rate nearly doubled.

The amount of time that blocks were too full to find parking decreased 16% in pilot areas, while increasing 51% in control areas.  In HP zones, there was a 45% decrease.

During the trial, SFpark decreased rates on half of all blocks and increased rates on the other half, with average meter rates falling 4% from $2.69 an hour to $2.58 an hour during the pilot.  At garages, the average hourly rate fell from $3.45 to $3.03.

Meters First

SFpark maintained consistent parking availability while increasing utilization of SFpark garages.  Utilization of these facilities grew by 11%, far exceeding non-SFpark garages.

There was also an estimated reduction in GHG emissions of 30%, from 7 metric tons per day to 4.9 tons per day in the pilot areas.  Vehicle miles driven also decreased by 30% (compared to a 6% decrease in the control areas), and traffic volumes fell 8%.

Demand-responsive pricing and new technologies helped improve parking management and optimize the use of parking space, but simple tools also work.  The most basic improvement was seen from the simple deployment and enforcement of parking meters.  ”One of the clearest findings of this evaluation is that parking meters are extremely effective at managing parking demand,” the study found.  This is not so surprising.  Parking meters – like electricity and water meters – are a basic tool for making visible the cost of a shared resource.  New technologies – whether parking sensors or smart meters – enable more sophisticated and dynamic forms of metering and billing, but the basic principle of payment for use has to be accepted first.

SFpark benefited not only from federal funding, but also from the authority of SFMTA over most aspects of the city’s transportation system.  This allows SFMTA to consider parking as part of its broader mobility targets and revenue projections.  Such an approach is likely to be a critical element of getting the best not only from new parking systems, but also from other innovations in urban mobility.

 

Smoggy Skies Drive City Innovation

— September 16, 2014

The air pollution caused by rising vehicle numbers and coal-fired power plants in Chinese cities has been well documented.  But these issues are not limited to cities of the developing world.  In March, smog levels in Paris reached levels that forced the city government to limit vehicle access to the city and make public transportation free.  Subsequent analysis suggests that this drastic measure had a notable impact on air quality, if only temporarily.

Paris is not alone among European cities in suffering from deteriorating air quality.  London and other U.K. cities, for example, have been under the spotlight for failing to meet European Union (EU) standards on air quality.  A report in July suggested that Oxford Street in London was one of the most polluted roads in the word with regard to nitrogen dioxide (largely produced by diesel buses and cars), with levels 3 times the EU-recommended amount – and higher than Beijing.  London and some other U.K. cities are not expected to meet EU targets for air pollution reduction until 2030.

Fewer Vehicles, Cleaner Air

The World Health Organization estimates that outdoor air pollution causes 3.7 million premature deaths worldwide each year; this mortality rate is due to exposure to small particulate matter of 10 microns or less in diameter, which cause cardiovascular and respiratory diseases and cancers.  Of particular concern in cities are fine particulate matter below 2.5 microns, referred to as PM2.5, which can lodge deep within the lungs.  This life-threatening type of smog is created by burning vehicle fuel as well as other fuels such as coal and wood.

The need to address air pollution is becoming a significant driver for the adoption of electric vehicles in cities, restrictions on the worst polluting vehicles, and the introduction of technologies that can monitor and improve air quality.  Madrid, for example, is using parking fees to target the worst polluting vehicles, while also introducing an electric bike rental scheme.  Boston is piloting high-tech city benches that can collect information on air quality and provide solar-powered charging for electronic devices.  Other high-tech attempts to improve air quality have been less than successful: a project supported by the Mayor of London that used a form of glue to collect contaminants proved to be largely ineffective in capturing vehicle pollution.  More recently, the Mayor has suggested that diesel vehicles, responsible for much of London’s damaging air pollution, may face additional charges for driving in the capital under the city’s congestion charging scheme.

Looking East

In the future, western cities may look to China as a leader in air quality improvement.  In 2013, the Chinese government launched its Airborne Pollution Prevention and Control Action Plan, which will see it invest $277 billion in an attempt to reduce air pollution by up to 25% in selected provinces and cities (including the municipality of Beijing) by 2017 compared to 2012 levels.  Beijing alone is expected to invest around $160 billion.  Beijing is also working with IBM on a 10-year project called Green Horizon that will employ sensor technologies, big data analytics, weather modelling, and other advanced techniques to help the city monitor and address air pollution.  The project will also integrate renewable energy forecasting and industrial energy management.

In North America and Europe, air pollution is often associated with a previous age of industrialization, but the growing public awareness of the continuing threat to public health is accelerating policy and technology innovation.  Ultimately, air pollution in our cities needs to be addressed through a combination of transportation and energy policies and the general adoption of clean fuel vehicles and other clean technologies.

 

Preparing for the Worst, Cities Seek Resilience

— August 7, 2014

The Rockefeller Foundation is asking cities to apply for the latest phase of its 100 Resilient Cities Centennial Challenge.  This challenge aims to enable 100 cities to better address the shocks and stresses of the 21st century.  The selected cities receive support from the Rockefeller Foundation to create and implement resilience plans and to hire chief resilience officers (CROs) to oversee strategies.  Thirty-two cities – including, for example, Bangkok, New Orleans, Durban, Mexico City, and Rotterdam – were selected in the first phase of the competition.  San Francisco appointed the first CRO in April 2014.

The Intergovernmental Panel on Climate Change’s 2014 report on the impacts of global climate change highlights the particular vulnerability of urban infrastructures.  The impact of climate change on cities can take many forms – including increased temperature, drought, and storms – but the most direct threat comes from rising sea levels.  Approximately 360 million urban residents live in coastal areas less than 10 meters above sea level.  China alone has more than 78 million people living in vulnerable, low elevation cities.  Miami, New York City, and Tokyo are also among the top 20 cities at the highest risk of coastal flooding, along with Asian megacities such as Mumbai, Shanghai, Bangkok, and Dhaka.   The 2011 Tohoku earthquake and tsunami in Japan and Hurricane Sandy off the East Coast of the United States in 2012 demonstrated how even the most advanced cities can be devastated by extreme events.

After the Flood

The threat to American cities is further emphasized in the Third National Climate Assessment from the U.S.  Global Change Research ProgramMiami, in particular, is developing into a test case for the impact of the climate changes on U.S. cities and the ability of civic and business leaders to collaborate in response.

Resilience can be characterized as the ability of cities and communities to bounce back from catastrophic events, as well as respond to more gradual changes that threaten well-being or economic stability.  Resilience is not just a question of identifying and acting on specific climate change impacts; it also requires an assessment of each city’s complex and interconnected infrastructure and institutional systems.   New York, for example, initiated a major study of the how the city’s infrastructure and services can be better designed to cope with events like Hurricane Sandy – including more resilient, distributed energy grids and new approaches to land use policy in flood-prone areas.

Urban Sensitivities

Resilience is also a driver for new technology adoption.  The Sensing City project in Christchurch, New Zealand is an interesting test case for how smart city technologies can support resilience planning.  Christchurch was devastated by an earthquake in 2011 that left 185 people dead; the rebuilding project is estimated to eventually cost around NZ$40 billion ($35 million) in total.  The aim of Sensing City is to use sensor technologies and data analytics, including smartphones and sensors embedded in new construction, to lay the foundation for a healthier, more sustainable, and more resilient city.

Coping with the threats and uncertainties of the 21st century will require a deeper understanding of the normal operations of a city and its vulnerabilities.  That’s why resilience is becoming one of the key attributes of any smart city and a significant driver for the smart city market.

 

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