Navigant Research Blog

Los Angeles Uses Data to Transform Streets

— March 1, 2018

Cities are using data to make informed decisions to deliver city services; however, data alone is not enough. Successful data-driven initiatives require clear vision backed by coordinated processes, and smart technologies that can provide city managers with new insights into operational performance. On January 25, Bloomberg Philanthropies announced nine cities earned the What Works Cities Certification for their excellence in data-driven governance to improve quality of life. The nine cities—Boston, Kansas City, Los Angeles, Louisville, New Orleans, San Diego, San Francisco, Seattle, and Washington, DC—will each receive expert assistance to accelerate progress. What Works Cities Certification evaluates factors including cities having a dedicated staff responsible for helping departments use data to track progress, contracts being awarded based on past performance, and having key datasets open to the public.

Data-Driven Initiative Starts with a Clear Vision and Realistic Process

Among the nine cities, Los Angeles holds the highest honor with gold-level certification. The other eight cities won silver. One of many data-driven initiatives in Los Angeles is the Clean Streets LA (CSLA) initiative. In 2015, Mayor Eric Garcetti launched the CSLA initiative to replenish funding for city cleanliness services, aiming to have the dirtiest streets cleaned up by 2018.

Los Angeles Sanitation (LASAN) crew members assessed the cleanliness of 42,000 street segments using video and geographic information system tools every quarter. They assign a score based on four criteria: loose litter, bulky items, weeds, and illegal dumping. A street is rated 1 if it is clean, 2 if it requires some cleaning, and 3 if it requires immediate attention.

CSLA Interactive Map

(Source: City of Los Angeles)

After assigning a score, LASAN uses the data to identify where to allocate new garbage bins and where to target the deployment of cleanup crews. Since launching the initiative, the city has deployed over 1,500 garbage bins around the city. In just 1 year, these efforts led to an 82% reduction in streets previously rated as “Not Clean.” To make this data accessible to residents, the open data generated from the CSLA initiative is translated into an interactive map on the GeoHub, the city’s map-based open data portal.

Next Step: Smart Technologies

Cities can take another step forward to improve operational efficiency by leveraging smart technologies to automate data collection and analysis. For example, having achieved the goals of the CSLA, Los Angeles is now exploring avenues to incorporate forecasting and predictive analytics that can predict future deployment of garbage bins.

The City of Baltimore recently announced its move forward with a $15 million project to deploy 4,000 smart garbage bins across the city in an effort to increase the city’s waste collection efficiency. Ecube Labs will provide solar-powered bins equipped with sensors that monitor fill level, and a software suite to plan optimized collection routes and provide daily route information for each truck based on real-time data. Navigant Research expects the global market revenue for this type of smart waste collection technology will reach $223.6 million in 2025.

There is an opportunity for smart technologies to enhance the delivery of municipal waste collection services. And as Los Angeles demonstrated, it is necessary to have a clear vision and coordinated process in place to achieve successful outcomes. Once the goals and resources are defined, technology can accelerate the progress by improving efficiency and opening the door to other integrated solutions.

 

Smart City Technology Helping Low Income Residents, Too

— January 23, 2018

Particularly in the developing world, there are valid concerns that smart cities could exacerbate the digital divide and primarily benefit wealthier residents. However, a number of emerging companies and initiatives demonstrate that smart city technology can also be utilized for digital inclusion, citizen empowerment, and to increase low income residents’ access to essential city services such as transportation and healthcare.

Key Company and Project Examples

A new company called Cityblock Health was recently spun out of Alphabet’s urban innovation unit, Sidewalk Labs. Cityblock raised over $20 million from a range of investors to help low income Americans access basic health services. Through the company’s Commons platform technology, it will partner with community health centers and partner organizations across the US to reconfigure the delivery of health and social services—and make healthcare services more personalized for qualifying Medicaid or Medicare members. Specifically, the company is targeting issues with misaligned payment incentives (between payers and providers of Medicare and Medicaid), siloed medical and social service delivery, and fragmented data. Cityblock is expected to launch its first Neighborhood Health Hub in New York City in 2018. The Hub will differ from traditional siloed health clinics, using the company’s custom-built technology to merge health services with the community. Caregivers, Cityblock members, and local organizations will all engage with each other in one physical meeting space to discuss and solve local health challenges. Cityblock will be an interesting startup to follow as it aims to integrate primary care, behavioral health, and social services all under one roof.

Another significant example of the potential for smart city technology to help low income communities (and further explained in one of my previous blogs) is Columbus, Ohio’s proposal for the US Department of Transportation’s Smart City Challenge. One of the primary reasons the city won the Challenge—and beat out the better-known technology centers of San Francisco, Austin, and Denver—was due to Columbus’s ability to demonstrate that its plan would result in increasing poor residents’ access to new transportation options. Additionally, Microsoft, along with its partners G3ict and World Enabled, launched the Smart Cities for All Toolkit in spring 2017 as part of its broader city engagement program. The toolkit is designed to help city officials and urban planners make more digitally inclusive and accessible smart cities. Tools developed for cities include a guide for adopting information and communication technology (ICT) accessibility standards and a guide for ICT accessible procurement policies.

Project Design and Implementation Crucial

These examples demonstrate that smart city technology can be used to the benefit of low income residents—whether it’s increasing access to crucial services such as healthcare and transport, or helping to bridge the digital divide. Policymakers must be vigilant when designing and implementing smart city programs, ensuring that technology deployments will extend to and directly benefit low income residents and neighborhoods in their city. Specific projects designed for low income communities (e.g., providing transport between high unemployment neighborhoods and nearby job centers) should be pursued as part of a city’s broader smart city strategy whenever possible.

 

New Opportunities in the Urban Energy Cloud

— January 2, 2018

The importance of cities to meeting global climate targets is undisputed. Since the COP21 Paris Agreement, more and more cities are joining early leaders like Copenhagen and Stockholm in pledging to become carbon neutral cities. Boston and London, for example, have both recently announced the goal of becoming zero carbon cities by 2050. To achieve such ambitious goals, cities will need to have implemented major changes to their energy systems by 2030. And given the speed of urban planning processes and infrastructure programs, cities and their partners need to instigate many of these projects within the next 3-5 years.

This transformation will touch every aspect of city services and infrastructure, including energy generation and distribution, heating and cooling systems, building energy efficiency, transportation, water and waste management, and the efficiency of city services such as street lighting. At the same time, city operations are being transformed by digital technologies such as the Internet of Things (IoT), smart buildings, artificial intelligence, robotics, and automated vehicles.

A new Navigant white paper, Navigating the Urban Energy Transformation, looks at the critical elements of the emerging city energy landscape and the intersection with the radical changes that Navigant characterizes as the Energy Cloud. As the City of Madison is showing, the transformation of the energy sector provides the bedrock for the creation of the low carbon cities of the future. This convergence of urban innovation and the energy transformation makes smart cities one of the key combinatorial platforms for the Energy Cloud.

The opportunities this creates for utilities and other energy sector plays is particularly evident in the building and transport sectors. A zero carbon city will need to address the role of fossil fuels in space heating and in transportation. Improvements in energy efficiency and the shift to renewable resources are essential steps but, more profoundly, the much closer connection between buildings and transportation and the energy grid will lay the foundation for a new Urban Energy Cloud:

  • Building in the Energy Cloud: The extension of building systems from standalone applications focused on the operation of a single building to hubs within a wider network of energy and environmental monitoring systems will be one of the most dramatic changes in the technical infrastructure of the city. Navigant Research estimates that only 0.5% of the commercial building stock globally is actively participating in the energy system today, but by 2026, more than 9% will be involved. This development will create new roles and opportunities for all players in the sector, including utilities.
  • The age of low carbon mobility: The decarbonization of urban transportation fleets is also offering many opportunities for utilities. EVs will be the single largest addition of energy demand to the power grid in many nations of the developed world. By 2020, more than 4,000 GWh of electricity will be consumed by plug-in EVs annually in the US alone. New services are already combining EVs with stationary storage and other renewable energy offerings to optimize regional supply and demand. The smart charging of swarms of managed EVs will enable greater concentrations of rooftop solar, as charging will be staggered outside of peak times and will be matched to distributed generation.

The city of 2030 will need to manage a much more complex set of interdependencies between diverse aspects of city operations, infrastructure, and platforms. This requires new networks for collaboration between cities, utilities, and other energy sector players, as well as transportation providers, building owners, telecommunication companies, and technology suppliers. Navigant Research estimates that this will create a market worth more than $1.5 trillion over the next decade for smart services across urban energy, buildings, mobility, and other city operations.

 

In an Age of Digital Disruption, Cities and Utilities Must Work Closer

— December 19, 2017

Energy transformation will force the industry to reassess existing value propositions and identify new revenue streams. Until recently, this value lay in single technologies—such as smart meters or solar PV. However, the industry is recognizing value in the convergence of technologies that have historically been treated separately. These technologies might not currently sit within a utilities’ existing area of influence. The potential convergence of EVs, automated driving, smart transportation networks, charging infrastructure, metering, and billing could create huge opportunities for utilities. The industry should keep an eye on disruption in other industries, particularly transportation and smart cities.

Utilities Must Identify Where Value Will Be Created

Kodak is an often cited example of how companies can fail in periods of industry disruption. Kodak developed the first digital camera and owned many patents related to digital photography. Yet, it failed to recognize where the future of digital photography value lay. It believed that digital photos would still be printed on Kodak paper and did not consider a future where users would share digital images online.

There are many lessons that utilities can learn from Kodak, primarily that nothing within business models can be taken for granted. No part of the value chain is immune from the risk of future irrelevance. Every company must consider where the future value will lie in the energy transition. For many, this will focus on helping customers reduce their power consumption, instead of supplying more power. ENGIE UK and the Netherland’s Eneco have both stated their intentions to shift to this service-based approach. The industry has also recognized the growth opportunity in supplying power to EVs and the associated vehicle-to-grid services.

There Is Significantly More Value for Utilities beyond EV Recharging Infrastructure

However, I would posit that utilities have not yet recognized the potential value that lies beyond EV charging infrastructure, supply, and grid services. The automotive industry is undergoing a period of disruption arguably greater than what utilities are experiencing. As city leaders are increasingly concerned about pollution and congestion, cities such as Paris, Athens, Madrid, and Mexico City have announced bans on the most polluting diesel vehicles by 2025. The UK, France, and China have announced bans on the sale of all light duty internal combustion engine vehicles in the next 20 years.

While EVs will play a large part in the shift away from petrol and diesel and offer an opportunity to utilities, there is significant value to be gained by the most ambitious utility. Decarbonization is just one part of automotive disruption, and we are starting to see a shift in trends of car ownership. Increasing numbers of urban residents are turning their backs on car ownership. Singapore has legislated that there will be no net increase in car ownership after 2020. Auto manufacturers are investing millions in automated vehicles, which could hugely disrupt ownership models and, consequently, the taxi and car hire industries.

Utilities Must Work Closer with City Leaders

City leaders—keen to improve air quality and reduce traffic congestion—could be the primary driving force behind a shift to shared ownership and automated models. However, they will need partners to deliver the sophistication of smart transportation services. Utilities have an opportunity to provide the recharging infrastructure for EVs, so it is not inconceivable that they can manage additional infrastructure, such as the metering and billing of automated vehicle use, predictive maintenance of vehicle fleets, fleet asset management services, and more.

Over the past decade, I have witnessed (at least some) utilities’ reluctance to cooperate with smart city programs. However, the concomitant digitization and disruption of electricity and transport create a strong argument for cities and utilities to work closer for their mutual benefit and the benefit of citizens. Navigant Research recently published a list of recommendations for utilities to work closer with city leaders.

 

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