Green Deal Smart Energy

Cities

October 22, 2014

Create Energy, Eindhoven

Frits VerheijChairman Dutch Innovation Consortium

for Smart Grid Development

1. How our energy system is changing

2. Meeting the challenges and opportunities

3. The Green Deal Smart Energy Cities

4. What happens next?

Presentation Overview

Signed by 47 parties across industries, utilities, NGO’s and governments

Main goals of the Energy Agreement: 1.5% Annual energy saving, reduction of 100 PetaJoules*) by 2020 Renewable energy sources from 4% share in 2012 to 14% by 2020

and 16% in 2023 Addition of 15.000 full-time jobs in energy business by 2020

Goals beyond our reach (!) according to PBL, ECN and RVO as stated in report: Nationale Energieverkenning 2014 (NEV)

*) About the same annual electricity & gas usage as 1,5 million households

2013 Dutch Energy Agreement: What it means – goals

Top Sector Energy asked for support in putting the agreement into practice

Actions involve the energy infrastructure

But no actions (yet) to address changes needed in our energy market mechanisms!

Green Deal Smart Energy Cities contributes to additional energy savings and renewables

2013 Dutch Energy Agreement: What it means – actions

How our energy supply is organisedToday: centralised & separate

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How energy supply will be organisedIn future: towards glocalisation

Growing share of wind and solar large variations in power output big investments in energy infrastructure

Alternatively: new business models, change “end-users” into consumers and prosumers, from commodity to services

Challenge: Public not really interested in their energy footprint – yet

Lack of incentives to efficiently use local energy systems

An example from Liander in Arnhem: extra investment in the grid would cost €5.900 per household

Why do we need to change?

Opportunity: electrification will ease integration of three key sectors

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Transportation Local energy Smart devices

Smart home appliances &

innovative services

Smart combination of local heating &

electricity production

Electric vehicles become mainstream

Green gas application

The path to “Glocal”

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New: system integration,customer centric approach

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Green Deal Smart Energy Cities

Timeline to large-scale implementation

Giant steps towards green growth …

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… via Green Deal Smart Energy Cities

Goals for Green Deal Smart Energy Cities In 5 Dutch cities, we’ll realise low carbon smart energy solutions

in districts with 100,000 residential and commercial buildings.

We believe companies will welcome this large scale approach.

Expect additional investments in innovative technologies and services: implementation between 2015 - 2019.

Approach is customer centric, focussed on energy consumers, owners & energy managers of residential & other buildings.

Innovations need to be developed from a system integration perspective: All components should function as part of a system.

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Members of Public-Private Partnership

Leading Cities of Amsterdam, Arnhem, Eindhoven, Enschede, and Groningen

Dutch Innovation Consortia: Switch2SmartGrids, EnerGO, Solar Energy, Gas, CLICK NL (creative industry)

Dutch Grid Operators Association

Ministry of Economic Affairs

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Results of Phase 2 (draft)

Inventory of 60+ projects with 30,000 buildings in 5 cities, 2-3 projects per city selected to be spearhead in 2015

Innovative city-oriented solutions, e.g. ‘supermarket of energy efficient applications’, Energy Atlas, innovative purchase procedures for district renovation projects

Innovations that are close to market within TKI’s/Dutch Grid Operators projects have been identified

Good understanding of mutual needs and strengths

Empowering smart energy citizens will be key!

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Next Steps: Phase 3 (draft, 1/2)

Cities will actively scout for new locations, and act as door-opener for building or sub-location owners within the city

Innovation consortia will encourage companies in the marketing of their innovations. Also develop new innovations for use by citizens and other stakeholders

Grid operators will provide support to cities and give help designing the energy infrastructure in both innovative and effective ways

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Next Steps: Phase 3 (draft, 2/2)

Green Deal consortium will offer liaison officers to upgrade city projects. They are the link between companies with ‘market ready’ innovations and local stakeholders

Best practices to be expanded to other cities

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Call to Create Energy in 2015

Looking for project designs seen from the “customer’s perspective”

System orientation, e.g. multiple types of customers, groups of buildings, different building types

Solutions to be scalable, repeatable and commercially attractive

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Thanks for listeningMore details: www.tki-switch2smartgrids.nl

Questions?Email: info@tki-switch2smartgrids.nl