kitakyushu model energy...

Kitakyushu Model

Energy Management

English

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Contents

Page

1 Introduction 2

1.1 Purpose 2

1.2 Energy Principles 2

2 Baseline and Policy Review 4

2.1 Purpose 4

2.2 Undertaking a Baseline and Policy Review 4

3 Developing an Energy Strategy 8

3.1 Purpose 8

3.2 Undertaking Policy and Strategy Development 8

3.3 Energy Characterisation and Forecasting 9

3.4 Policy Aims, Objectives, and Targets 12

4 Technical Strategy Development 14

4.1 Purpose 14

4.2 Reducing Energy Demand 14

4.3 Energy Efficiency Improvements 18

4.4 Low Carbon and Renewable Energy Resource Review and Holistic Sustainability 21

4.5 Smart Communities: Creating a ‘clever energy society’ with cross-sector integrated energy system 27

5 Strategy Testing and Measurement Tools 32

5.1 Purpose 32

5.2 Key Considerations 32

5.3 Main Technical Options 33

5.4 Stakeholder Consultation 34

5.5 Understanding Opportunities and Constraints 35

6 Procurement and Financing 36

6.1 Key Considerations 36

6.2 Models for funding and procurement 36

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1 Introduction

1.1 Purpose

The purpose of an energy strategy is to identify the key technologies and programmes required to enable cities and regions to meet the national and local targets for the parameters governing energy; such as energy consumption, production and reduction targets, carbon reduction target areas and low or zero carbon energy generation targets. This methodology sets the headline targets and key strategic priorities; the remaining sections detail how a city or region can meet these.

1.2 Energy Principles

Traditional urban development took advantage of what was perceived as an unlimited supply of cheap fossil fuels and natural resources. Our overdependence on traditional energy sources and strategies has resulted in environmental degradation, climate change, and geopolitical concerns. Cities still rely on energy to grow and develop. However, they can do so by optimising the energy demand and changing the energy supply. The main principles of an energy strategy are set out in the following hierarchy:

1.2-1 Japan - Energy pre-conditions have changed (Case study

of Kitakyushu city by IBM)

(Before March 11)

Energy could be sufficiently provided whenever you

request

The least blackouts and brownouts in the world．Centralized, one-way control of energy supply chain worked well

To meet GH requirements, nuclear power would be the

answer, and there were few incentives for renewable energy

BEMS/HEMS managed an individual building

(After March 11)

Energy supply may not be sufficient for a long time

The increase of fossil fuels as a result of nuclear

operation suspension makes CO2 issues bigger

The supply is scarce, and the increase of electricity bills is unavoidable

Consumers are mandated to reduce the consumption

with supply alternatives

- Saving energy policy emphasizes ‘peak cut’ and

‘peak shift’ actions

- Nothing is more important than business continuity and sustainable life

- May change pattern of use accordingly to

priorities

- With more feedback, consumers can make better

decisions

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Figure IV-1 Energy policy hierarchy

Reducing Energy Demand- The most important and cost-effective strategy

Increasing Energy Efficiency- Energy efficiency gains can be achieved through retrofitting existing buildings, improving standards for new buildings, as well as the use of appliances with a lower energy demand.

Increasing Low or Zero Carbon Energy Sources- As prices become more competitive and technology improves, cities and regions can turn to alternative energy sources, such as solar and wind power to meet their energy needs. They also can take advantage of their local developments to generate ‘win-win’ solutions, such as turning waste into energy, sewage into biogas, or biomass to heat. Japan is considering its renewable energy targets of between 25-35% of total power generation by 2030.

Local governments need to work together with a range of public and private stakeholders and provide a stable, safe, cost-effective and environmentally sound energy strategy.

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2 Baseline and Policy Review

2.1 Purpose

The Baseline and Policy Review is the first stage in the development of a city-wide energy strategy. It is primarily an information gathering exercise using desk-based or other research methods. Its purpose is to obtain information that sets the context for the energy strategy, and establishes a baseline that can be used to inform future policy direction and the overall strategy implementation.

2.2 Undertaking a Baseline and Policy Review

The Baseline and Policy Review should relate to a stated point within time (e.g. last full calendar year or fiscal year). Information should be obtained from credible sources (including peer reviewed and/or published information where possible) to ensure certainty of the information. This is most likely to include sources within local, regional and national governments. The Baseline and Policy Review should also be relevant to the sources of energy under review. Table IV-1 provides a checklist of information that should be obtained during this process. The review should be undertaken by a specialist in energy, which may be a consultant technical adviser or a government representative.

Table IV-1: Baseline and Policy Review Checklist

Information

Requirements

Checklist Questions

Policy and

Regulatory

What are the current governance arrangements for energy production,

transmission, consumption and re-use/recovery?

What are the current and planned energy policies, regulations, strategies etc.

applicable at the local, regional, and national level?

What are the current and planned energy objectives, targets, indicators? This

may include energy consumption reduction, carbon emissions reduction, energy

efficiency, and renewable energy targets.

2.2 -1 Energy policy of Kitakyushu city

1. Support willingness and partnership of citizens and

business sectors

(a) Promote energy and resources savings for easy

(b) Promote effective energy utilization

(c) Create and disseminate Eco-friendly products and

promote Environmental management

2. Establish urban infrastructure with CO2 saving

(a) Develop Eco-friendly “Environmental capital

integrated transformation strategy”

(b) Promote utilization of public transportation

(c) Promote Eco-friendly mobiles utilization

(d) Promote the traffic streamlining and distribution

efficiency

(e) Establish compact urban infrastructure

(f) Establish Eco-friendly houses with high quality

and construction stocks

(g) Promote the heat island mitigation measures

(h) Reduce CO2 generated by wastes

3. Promote measures to curb climate change from a wide

points of view

(a) Develop and promote implementation of

renewable energy technologies

(b) GHG absorption measures

(c) Promote international environmental cooperation

to promote measures to curb climate change

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Information

Requirements

Checklist Questions

What are the economic / fiscal energy related instruments in use? ( such as

energy related funds, tariffs, tax-reliefs etc)

What is the city/regional/ national/ international policy and regulatory context

for energy?

Who regulates the energy policies, regulations, strategies objectives, targets,

indicators etc. applicable to a city (including renewable energy)?

What future energy policy is proposed or under consultation relating to the

above

Governance What are the existing institutional arrangements for energy management, roles

and responsibilities, jurisdictions and mandates of various departments

involved, including roles of municipalities, local governments, private sector,

non-governmental organisations (NGOs)/community-based organisations

(CBOs), and the private informal sector?

How is energy regulated at the local, regional, and national level?

How is it managed between the residential, business, and industry sectors?

Who is responsible and how are the energy prices determined and regulated?

Are there any planned or proposed changes to the above?

Energy

Characteristics What are the city-wide energy demands?

What are the city’s current energy sources?

What are the demand profiles for the various energy sources?

What are the demand projections for the various sources of energy?

What energy resources are available in the city/region? This could include waste

heat streams, renewable resource, waste that could be converted to heat etc.

What are the existing and planned energy production, transmission,

consumption and re-use/recovery arrangements?

●Reference

<Case Study>

・現状・政策調査チェックリスト（北九州版）(J/E/C)

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Information

Requirements

Checklist Questions

What energy infrastructure currently exists?

What are the characteristics of current energy systems?

(Efficiencies, infrastructure, area of coverage etc.)

What is the carbon intensity of the utilities grid?

What are the current energy generation technologies?

What is the condition of the existing energy infrastructure?

What are the characteristics of the energy distribution infrastructure?

What are the characteristics of existing energy conversion infrastructure? What

are the characteristics of the existing energy recovery systems and

infrastructure?

Are there any planned or proposed changes to the above?

Energy Management

and the Energy

Industry

Are there any educational and behavioural programmes in place for energy

management?

How do energy consumers track their energy demands, e.g. smart meters?

Are there opportunities to obtain alternative energy supply elsewhere, such as

waste to energy for heating, electricity, and transport?

How much choice do consumers have in choosing their energy supply, i.e., from

renewable sources?

What kind of opportunities are there for greater partnerships between businesses

and civil society?

Economic and

Financial What is the city / regional economic and market context for energy?

What is the energy market overview?

What are the various sources of energy? (fossil fuels, nuclear, renewable etc.)

What are the current financing regimes for managing the supply of energy?

Can excess or renewable energy be sold back to the grid?

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Information

Requirements

Checklist Questions

Who are the current providers/operators in the market?

How is fuel poverty addressed?

What is the current energy market structure?

What relationships are there between types of energy and supply chains?

What are the current energy re-use/recovery markets? (local industries etc.)

What are the interdependencies between the energy market and other areas of

economy? (transport, waste, water, etc.)

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3 Developing an Energy Strategy

3.1 Purpose

The purpose of this stage is to establish a set of aims and objectives for a city or region energy strategy. This will require heavy involvement and consultation with a set of key stakeholders as well as consultation with a wider set of stakeholders that have an interest in the development of such a strategy.

3.2 Undertaking Policy and Strategy Development

Working within the relevant geo-political, social and economic context, the energy strategy should make reference to other related policies such as those for water management, resource management and waste, security and supply, air quality, economic development and employment. Policy proposals should also be assessed against sustainability and other criteria (e.g. for cost-benefit analysis) and undergo public consultation to ensure that they are fit for purpose and to facilitate engagement of the strategy with the wider public and those organisations that will be affected by them.

Table IV-2 provides a checklist summary of sections that should be covered by the energy strategy framework.

3.2-1 Kitakyushu Green Frontier Plan

1. Short-Term (2009-2013)

By advancing the discussion on a stock-based society as

well as a sustainable and fulfilled society which have

been discussed by citizens on various occasions, the city

will present a low-carbon future with detailed plans

(rather than just concepts) which citizens can share.

Conduct area-level low-carbon projects in a city centre,

a residential area, an industrial area and an area with a

rich natural environment as pioneering projects, so that

citizens can see and understand what a future low-

carbon society looks like.

Implement campaigns to promote new technologies and

systems (such as photovoltaic (PV) systems) that can

contribute to a low-carbon society, by involving all

citizens. Targets will be set where necessary.

Establish world-class environmental learning systems

and environmental activity systems which have the

functions to visualize the effects of environmental action

and enable people to feel the effects of environmental

action. These systems will be used as the infrastructure

for increasing the citizens’ ability to tackle the

environmental issues relevant to a low-carbon society.

In order to take the initiative and set a good example to

others, the city will proactively install new energy and

energy saving systems in public facilities, establish a

code of conduct for municipal staff and promote

environmentally sound public work.

The results of the efforts will be published and

disseminated to the public. The results will be verified in

detail and achievements and problems will be

summarized in order to use the information for future

activities.

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Table IV-2: Energy Strategy Checklist

Section Requirements

Description

Introduction Setting out the purpose of the strategy, its scope (eg geographic scope, business sectors targets within the strategy apply to, etc.), defined time period and a summary of policy proposals.

Existing Situation and Evidence Base

Setting out the baseline conditions (eg context of existing energy markets, energy sources, management, infrastructure capacity, etc.) that have been used to inform development of the strategy and a discussion of why change is required to move towards development of a more sustainable city or region.

Aims, Objectives, Indicators and Targets

Setting out the core aims and objectives of the strategy along with quantitative indicators and targets that will be used to monitor and track progress of subsequent energy programmes.

Evidence base Analysis the demand reduction potential, energy efficiency possibilities and the renewable energy resource available. These areas should all be assessed to show the cost benefit of different technologies and solutions which are then translated into the cost and benefit of different policies and citywide/region wide strategies.

Policy Proposals Details of policy programmes and implementation programmes.

Related Policy and Legislation

Reference to existing and proposed legislation guiding formation of the policy proposals contained within the strategy. Also with reference to related policy areas to demonstrate an integrated approach

Implementation Plan Time-related implementation plan for policy programmes.

3.3 Energy Characterisation and Forecasting

3.3.1 Purpose

The estimation of current and future energy requirements may be necessary where this information either does not exist or is not fit for purpose.

（3.2-1 Continued）

2. Medium-Term (-2030)

Based on the achievements and the results of the

detailed verification for the short-term activities,

improvements will be made to existing measures and

new measures will be added, as the city works on full-

scale reforms for a low-carbon society throughout the

city area.

Integrate the development of a low-carbon society and

the development of its economic environment.

Present and disseminate to the world the resulting city

planning models, business models and community

models which have been developed based on new values

and cultures.

3. Long-Term (-2050)

As the final goal for the development of a low-carbon society,

the city will establish a vital “stock-based society” created

through new values and new cultures, where citizens in both

current and future generations can have a fulfilling and secure

life using the various types of infrastructure put in place

●Reference

<Toolkit>

・環境首都レポート環境モデル都市行動計画（J）

・World Capital of Sustainable Development Report -Eco

Model City Action Plan（E）

<Case Study>

・ Kitakyushu City’s challenge toward a Low-Carbon Society

（J/E）

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3.3.2 Undertaking a Characterisation and Forecasting Study

A baseline energy requirement would be estimated using a combination of desktop research of published data sources, empirical evidence and benchmark energy consumption data based on a statistical representative sampling and analysis programme. The output from this process should be a figure, expressed as kilowatt hours per annum, for the energy source being considered.

Future energy requirements can be estimated by applying defined growth figures to the baseline data to provide projected energy requirements across the lifetime of the proposed strategy. This should be performed for each source of energy being considered; for example, the consumption of electricity may increase more than the consumption of natural gas. An increase in energy consumption is often linked to economic growth and so should be identified as part of the Baseline and Policy Review.

This data should be broken down by sector, allowing detailed analysis of, for example, the domestic sector versus the industrial sector.

3.3.3 Energy Strategy Scenario Development

A range of scenarios should be developed for achieving the aims and objectives agreed in the energy strategy development process. The strategy scenarios should follow the underlying energy principles of prioritising a reduction in energy demand, then focusing on an increase in efficiency and finally looking at the application on low and zero carbon technology.

The various scenarios should be analysed to establish those that meet the aims and objectives and those that do not. A single strategy scenario should be selected and progressed to the next stage of development.

The purpose of the energy strategy is to provide a framework for the city-wide distribution and management of energy over a defined period of time (typically within the range of five to forty years).

3.3.2-1 Current Situation of Greenhouse Gas Emissions in

Kitakyushu city

The total amount of greenhouse gas (GHG) emissions in the

City of Kitakyushu was estimated to be about 15.6 million tons

in FY2005, accounting for 1.2% of total emissions in Japan.

When looking at emissions by sector, the industrial sector is

responsible for 66% of total emissions in the city, in

comparison with 35% in Japan, which shows the

characteristics of Kitakyushu as an industrial city.

The amount of emissions per citizen is about 16 tons, which is

higher than the national average of 10 tons.

When looking at the changes in the amount of emissions over

time, the data on the total amount of emissions, a comparison

of the FY1990 level and the emissions in the six years from

FY2000 to FY2005 all show that there is no significant

fluctuation and the emissions remain at 15-16 million tons. The

data on emissions by sector shows that emissions in the

business and household sectors are increasing, although there

are variations in different years.

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The analysis and appraisal of strategy scenarios and selection of final energy strategy should be undertaken by specialist energy consultant technical advisers with input from agreed specialist consultants where required (e.g. cost consultants).

3.3.4 Understanding Opportunities and Constraints

3.3.4.1 Attitude and Behavioural Change

A change in awareness and behaviour is fundamental for the effective implementation of the energy strategy by all stakeholders involved and the city’s community. This is best achieved by creating an interest in energy and providing society as a whole with information and knowledge about energy management to motivate people to change their behaviour. A multi-sectorial approach is required aimed at engaging with all parts of the community including schools, universities, manufactures, suppliers, consumers and government agencies.

3.3.4.2 Creating Markets for Reclaimed Energy & District Energy Systems

Markets for reclaimed energy (e.g., recovered Low Temperature Hot Water (LTHW), steam etc) by creating a value for this energy that could feed local or district systems. Consideration should be given to initiatives that help to increase the supply of recovered energy and develop district energy distribution infrastructure. Opportunities should also be identified for bringing together companies within close geographical proximity with the aim of improving cross industry resource efficiency by the exchange of energy & resources.

3.3.3-1 Energy strategy scenario of Kitakyushu city

1. Environmental Efforts will create an Advanced City

(Converting the City into a Stock-Based City which

Enables a Low-Carbon Society) The City of Kitakyushu

will promote stock-based city planning which enables a

low-carbon and fulfilling life. This will be achieved by

creating compact towns with long-life infrastructure and

low energy consumption, using Kitakyushu’s advanced

material technologies, its decentralized urban structure

and the fact that factories are situated close to the towns.

The efficient use of energy and the expansion of

vegetated areas as an effective carbon sink will also be

promoted. (The emissions reduction: 750,000 tons by

2030 and 1.1 million tons by 2050)

2. Environmental Efforts will develop the Economy

(Establishment of Industrial Clusters which Contribute

to Carbon Emissions Reduction) The City of Kitakyushu

will work to reform its industrial sector into an

environmental value-added structure suitable for a low-

carbon society, by developing the technologies and

know-how which have been cultivated in the

manufacturing city. The city will thereby promote the

development of technologies, the product manufacturing

and the service provision that are needed in a low-

carbon society. The city will also take the initiative in

promoting new energy, green IT and paperless working

environments for offices and factories. It will also

promote the utilization of factories’ energy potential for

various uses, by turning factories into energy supply

centres for the city. (The emissions reduction: 3.5

million tons by 2030 and 6.1 million tons by 2050)

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3.4 Policy Aims, Objectives, and Targets

3.4.1 Purpose

Aims, objectives, indicators and targets should be developed that are specific to the project and based, in the first instance, on the information gathered within the Baseline and Policy review, stakeholder workshops and wider stakeholder consultation.

3.4.2 Developing Aims, Objectives and Targets

As part of this process, it may be necessary to:

Identify any existing local, regional or national indicators and targets that should apply (ensuring that the strategy is in conformity with other, over-riding policies and strategies where relevant).

Assess whether existing indicators and targets are sufficient to drive implementation programmes that meet the key aims and objectives (e.g. does a stretch target need to be developed).

Identify and consider existing measurement, monitoring and reporting regimes (eg international best practice, government requirements) that may apply.

Consider how indicators and targets for the energy strategy relate to the wider city sustainability framework; for example, do they support or are they detrimental to other policy aims and objectives.

For example:

Objective: Increasing energy efficiency and renewable energy use in the city

Example City Target:

Kitakyushu City: Reduce greenhouse gas emissions by 50% by 2050.

Copenhagen: 1st carbon neutral capital in the world by 2025

3.4.2-1 GHG emissions reduction targets in Kitakyushu city

1. Long-Term Targets (by 2050)

The long-term target is to reduce emissions within the

city by eight million tons from the FY2005 level (a 50%

reduction) by 2050. The city will also continue its

efforts to achieve a 60% reduction through the

expansion of efforts and the development of new

measures, in the process of achieving the long-term

target. In addition, the city will reform the industrial

structure within the area into a more environmental

value-added structure, and promote the development of

a large number of environmental materials,

environmental products, environmental technologies and

environmental services which will contribute to the

promotion of carbon emissions reduction inside and

outside Japan. Through inter-city environmental

diplomacy with Asian cities, the City of Kitakyushu will

contribute to an emission reduction of 23.4 million tons

in Asia, which is 1.5 times the amount emitted by the

city.

2. Medium-Term Targets (by 2030)

Setting the medium-term target year as 2030, the city

aims to reduce its emissions by 4.7 million tons (a 30%

reduction). It also aims to reduce emissions in Asia by

11.7 million tons (which is about 75% of the amount

emitted by the city), through inter-city environmental

diplomacy with Asian cities. The city will closely

monitor discussions about medium-term targets at the

national level and will consider revising the targets

where necessary.

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New York City – Reduce greenhouse gas emissions by 30% by 2030

London: Supply a quarter of London’s energy from decentralised sources by 2025

Philadelphia- Purchase and generate 20% of electricity use from alternative energy sources

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4 Technical Strategy Development

4.1 Purpose

The purpose of this stage is to identify the main technical options for achieving the agreed aims and objectives of the energy strategy. The priority of the technical solutions should be in line with the established energy principle and follow the hierarchy of sustainable design; reduce energy demand, increase energy efficiency, adopted low and zero carbon technologies.

4.2 Reducing Energy Demand

4.2.1 Key Considerations

The first step in implementing a city-wide low energy strategy is reviewing the opportunities for reducing the demand of all sources of energy (heat, electricity, cooling). This review should be across all sectors of the economy and identify opportunities for changes in behaviour, technology, policy etc. that could achieve a reduction in the demand for energy. This will have to be performed in relation to the wider sustainability policies and targets for the city (e.g. transport waste, water etc.). This is an information gathering and review exercise using desk-based or other research methods.

4.2.2 Main Technical Options

Table 3 provides a checklist summary of the actions that should be completed within the reducing energy demand technical strategy elements scenario development stage. Further information on some of these aspects is provided below.

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Table IV-3: Key Factors that should be considered for Reducing Energy Demand

Key Factors Considerations

Policy Drivers What local, regional and national policies already in place for the reduction of energy demand?

What economic and policy instruments are in use?

Are there current objectives and performance targets for the management of energy? This may include, for example, indicators and targets for demand reduction (e.g. maximum glazing allowable in regulation, percentage reduction on regulated baseline or targets for existing building energy demand reduction)

What progress has been made against existing objectives and targets and how is this measured?

What other existing policy interactions are there affecting the reduction of energy demand (e.g. building regulations, climate change adaptation and mitigation)?

Are there any targets or requirements for poorly performing buildings to increase energy efficiency and reduce energy demand?

What existing legislation is in force to support policy implementation?

Is energy related data being recorded and reported by the Government, local authorities and/or businesses (for example; no. of homes retrofitted, minimum energy ratings of buildings)?

Consider development plans for the area and identify potential

impacts now and in the future over the lifetime of the development.

Energy demand

characteristics

What is the current landscape of energy demand reduction and energy

efficiency?

What design and technologies are lacking?

How is electricity pricing structured?

What energy reduction incentives are there (retrofit funding)?

Are there targets for energy reduction and can the region affect or

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Key Factors Considerations control these?

Analysis of this allows a strategy for how to best to reduce energy

demand and increase efficient use of energy.

Buildings What are the current building standards?

What building regulations applied for building fabric?

What passive design and technologies have a short payback (e.g. insulation, light shelf, night purge)?

What appliances and equipment are produced and available?

What is the current building stock capable of achieving?

Are there lots or heritage buildings that cannot be altered?

What building systems are typically poorly performing?

Can systems be altered to cope with new supplies (e.g. remand response)?

Analysis of this allows a strategy for how to best to reduce demand

and increase efficiency use of energy.

Transportation What is the current mode of transportation and fuel source:

How the journeys in private cars can be avoided?

Is current public transportation system good, affordable, accessible and desirable to all member of society?

What are the current walkability and the easiness of bicycle use and care sharing?

What fuel is available in what price, and how the supply infrastructure is designed, especially for electrically-powered vehicles?

What taxations and economic incentives and available and

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possible, e.g., congestion charge and carbon charges?

What retrofitting is possible to transform the city to become walkable compact city/neighbourhood?

Can the frequency of freight transport be reduced and the transport mode be altered?

What is the feasibility of electric vehicle charging points being added to the city?


for individual car use and switch to non-fossil fuel source.

Infrastructure What would be the consequence of energy reduction in buildings and

transport?

Is there any opportunity to introduce local network, such as co/tri-generation, district heating/cooling?

Can street lighting management system and equipment be replaced to reduce the demand?

Can less road area per resident be achieved?

Can utility reticulation per residents is achievable?

What extent of demand reduction is possible in the current plants for water supply, swage, and power sectors?


for infrastructure including water, sewage and power.

Awareness raising and

behaviour change What are the key attitude barriers to reducing energy demand?

How can behaviour change be triggered?

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Opportunities

Reducing energy consumption will reduce demand for energy generation.

Provides a value to owners and funders by reducing vacant periods, and increasing reputation within the market

Outcomes from the process can help to guide decision-making process and subsequent programme implementation.

Helps establish areas of economy that require ‘further focus’ and action in regards to energy consumption

Constraints

Various initiatives involve behavioural changes in building occupiers or operators, designers and funder and with wider society. This can be unpredictable and desired outcomes may not be achieved.

Managing and balancing the impact on economy sectors; managing demands on economy sectors (controlling potential backlashes etc.)

4.3 Energy Efficiency Improvements


The next step in implementing a city-wide low energy strategy is reviewing the opportunities for increasing efficiency in the generation, distribution, transmission and consumption of energy (heat, electricity, cooling). This review should be across all sectors of the economy and identify opportunities for changes in behaviour, technology, policy etc. that could increase city-wide energy efficiency. This will have to be performed in

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relation to the wider sustainability policies and targets for the city (e.g. transport waste, water etc.). This is an information gathering and review exercise using desk-based or other research methods.


Table 4 provides a checklist summary of the actions that should be completed within the energy efficiency technical strategy elements scenario development stage. Further information on some of these aspects is provided below.

Table IV-4: Key Factors that should be considered for Increasing Energy Efficiency


Policy Drivers What local, regional and national policies already in place for the management of energy:

o Demand management

o Energy efficiency


Are there current objectives and performance targets for the management of energy? This may include, for example, indicators and targets for demand management (e.g. maximum glazing allowable in regulation), energy efficiency (percentage reduction on regulated baseline or targets for existing building energy efficiency)


What other existing policy interactions affect the management of energy (e.g. metering, monitoring and reporting requirements)?

Are there any targets or requirements for poorly performing buildings to increase energy efficiency


Is energy related data being recorded and reported by the

4.3.2-1 Test of Kitakyushu Smart Community infrastructures

The following social infrastructures in Kitakyushu Smart

Community should be tested to improve energy efficiency.

Implement mega solar to assume the developed city

Implement energy saving systems applicable to smart grids

Develop the smart data centre to operate CEMS whose

core is the state of art technology in Japan at an integrated way

Implement a lot of smart meters

Develop urban factories to seed plants

Develop and assure Green Audit Management

foundation

Utilize resources efficiently to recycle parts of cars electronics

Develop apartments for experiment of direct current and

Eco villages

Develop and implement Eco points/Carbon off set

systems

Develop infrastructures of instant electricity charging systems friendly for elders/women

Develop and implement the bridge systems between on-

demand buses and public transformation

Implement mobility systems within the local area and to

neighbourhoods to use innovative technologies

Develop and implement Eco-driving supporting systems

Develop and test the next-generation mobile operation

systems with ITS

Rental for electric bicycles

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Government, local authorities and/or businesses (for example; no. of homes retrofitted, minimum energy ratings of buildings)?

Consider development plans for the area and identify potential impacts now and in the future over the lifetime of the development.

Building design What is the current building stock capable of achieving:

Are there lots or heritage buildings that cannot be altered?

What building systems are typically performing poorly?

Can systems be altered to cope with new supplies (low temperature heating systems, grid controlled shut off)?

Can energy management systems be installed to increase efficiency?

Can building management systems (BMS) be incorporated to better control energy use?

Analysis of this allows a strategy for how to best to reduce demand, increase efficiency use of energy.

Awareness raising and

behaviour change What are the key attitude barriers to reducing energy demand?



Opportunities

Increases efficiency reduces demand for energy generation.


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Constraints

Various initiatives involve behavioural changes in society. This can be unpredictable and desired outcomes may not be achieved.


4.4 Low Carbon and Renewable Energy Resource Review and Holistic Sustainability


Following reductions in demand and optimisation of efficiencies, the effective implementation of a city-wide low energy strategy will involve the integration of renewable technology into the current energy infrastructure systems. In order to determine the most appropriate renewable technologies to form part of the strategy a review of the low carbon energy resources will be required. This will have to be performed in relation to the wider sustainability policies and targets for the city (e.g. transport waste, water etc.). This is an information gathering and review exercise using desk-based or other research methods.


Table 5 provides a checklist summary of the actions that should be completed within the energy efficiency technical strategy elements scenario development stage. Further information on some of these aspects is provided below.

The low carbon and renewable energy resource review exercise should be undertaken by specialist energy consultant technical advisers.

4.4.1-1 Develop and disseminate urban energy systems

towards Low carbon society

Development of Systems which Visualize the Effects of a Low

Carbon Society and Enable People to Feel the Effects of a Low

Carbon Society as follows.

1．Jono Area low-carbon advanced model city block

This city block develops the advanced housing blocks toward

zero carbon to utilize a variety of low carbon technologies and

methods totally by promoting utilization of public

transportation, restricting use of family cars by implementing

the car sharing, motivating to build public eco-houses and

facilities of creative energy/saving energy and optimizing

energy utilization by EMS

2．Hibikinada next generation energy park

The north area, Hibikinada of Wakamatsu accumulates a

variety of energy facilities.

Energy supply stations to support livings: Stations for

coals, oils for national secured, LNG

Next-generation natural energy :PV ,wind, water power

generations

Biomass energy from recycles : Bio ethanol, oils and fats

Sharing of energy between factories (local consumption

of locally produced energy):Utilization of steam heat, power generation by wastes

Innovative technologies of energy utilization::

Experimental facilities developing technologies to manufacture multi-purpose coal gas, Kitakyushu

Science and Research Park

22

Table IV-5: Key factors that should be considered for low carbon and renewable energy resource review


Policy Drivers What local, regional and national policies already in place for the management of energy:

o Decentralised energy supply

o Renewable energy


Are there current objectives and performance targets for the management of energy? This may include, for example, indicators and targets for clean energy supply (such as targets on numbers of buildings connected to district heating or cooling) and renewable energy supply (e.g. percentage supply from renewable sources)


What other existing policy interactions affect the generation of renewable energy (e.g. supply of fuels (e.g. gas or biomass), climate change adaptation and mitigation)?

Are there any policies and standards in place for the use of low grade heat (e.g. from substations, tunnels etc)?


Is energy related data being recorded and reported by the Government, local authorities and/or businesses (for example; total energy use, carbon emissions, renewable energy supply)?

Consider development plans for the area and identify potential impacts now

and in the future over the lifetime of the development.

Electricity

generation and

distribution

What is the current landscape of electricity generation and distribution:

Does the region have control over generation?

Is the market for electricity regulated? If so, how?

Does the region have control over distribution?

How is electricity pricing structured?

4.4.2-1 Test of Kitakyushu Smart Community technologies

The following energy technologies in Kitakyushu Smart

Community should be tested.

Town mega solar

Kitakyushu hydrogen towns

Small wind power generations

Utilize waste heat from factories（Vegetable factories）

Utilize waste heat from factories（Binary power

generation）

Utilize biomass fuels to develop the next generation of BDF

ESCO business to use solar heat

Lighting control systems to keep high efficiency such as LED

Local weather analysis/Heat air current within buildings

Reusable batteries for EV

Implement a lot of EV、pHV and develop facilities for

charging

4.4.2-2 FIT in Japan

For the purpose of promoting usage of renewable energy

sources, The FIT scheme commenced on July 1, 2012.

This is a scheme to oblige electric utility operators to purchase

electricity generated from five renewable energy sources -

photovoltaic (PV), wind, hydro, geothermal and biomass, at a fixed price and for a certain period of time.

The operators may pass costs of purchasing renewable electric

energy on to end-users.

●Reference (Price and term of the purchase etc)

http://www.enecho.meti.go.jp/saiene/kaitori/kakaku.html

23

Key Factors Considerations What low carbon generation incentives are there (Feed In Tariff

(FIT))?

Analysis of this allows a strategy for how to best to increase low carbon,

embedded generation of electricity.

Heat generation and

distribution

What is the current landscape of heat generation and distribution:

Does a market for district heating exist, could it?

Is the market for heat regulated? If so, how?



How is heat pricing structured?

What low carbon generation incentives are there (Renewable Heat Incentive (RHI))?


district heating.

Cooling generation

and distribution

What is the current landscape of heat generation and distribution:

Does a market exist for district cooling, could it?

Is the market for cooling regulated? If so, how?



How is coolth pricing structured?

What low carbon generation incentives are there?


district cooling.

Building plant How does building energy interface with low carbon energy generation?

Can energy be exported to the grid or heating/cooling networks?

Can buildings accept low temperature heating (underfloor heating, high thermal efficiency)?

Can smart systems and appliance react (switch off or discharge stored energy) back into the grid or heating/cooling networks

4.4.2-3 Kitakyushu Eco-Complex Plan

1. Philosophy of Kitakyushu Eco-Complex Plan

Changing “optimization in plant” to “optimization in

region” of use of resources and energy

Mutual utilization of energy and by-products

(waste) between industries

Minimization of consumption of resources and

energy at the municipal level by cooperation with sphere of daily existence

2. Expected result

Realize sound resources/energy cycle at city and

contribute to measures to curb climate change

Improve international industrial competitive capabilities to utilize cheap energy and contribute

to measures of the hollowing out

Create new industries such as a new energy

industry

Regenerate existing industries in seaside areas

3. Case studies (Then companies)

Steam supply between 2 companies：Mitsui Mines

and Kubota/Matsushita Denko

Effective use of unused energy and waste

between 2 companies：Nippon Steel and Kyushu

Paper

Cascade utilization of energy

- Wasted heat collection systems from steel

manufacturing factories（Kokura）

- Wasted heat collection systems from

cleaning factories（Kurosaki）

Kitakyushu hydrogen towns

Supply hydrogen generated as a by-product to commercial and residential uses trough pipelines

24


Awareness raising

and behaviour

change

What are the key attitude barriers to the uptake of low carbon energy production?


Table IV-6 provides an overview of the main low carbon and renewable energy technologies available. Information is also provided on the scales at which these technologies are typically commercially viable.

Table IV- 6: Renewable Energy Categories and Technologies

Renewable Energy Categories

Renewable Energy Technologies

Solar Solar power- Concentrated and non-concentrated technologies (small to large scale)

Solar Thermal- Concentrated and non-concentrated technologies (small to large scale)

Wind On shore wind power (small to large scale)

Off-shore wind power ( typically large scale)

Hydropower Hydropower with dam and resolvers for storage (typically large scale)

Pumped Storage hydropower (small to medium scale)

Run-of-river with no or very little storage capacity (small to medium scale)

Tidal/marine Tidal/Marine power ( typically large scale)

Biomass Biomass heat generation (small to large scale)

Biomass cogeneration - heat and power (small to large scale)

Biomass trigeneration - heat, power and cooling (medium to large scale)

Bio-fuel Bio-methane/bio-gas (typically small to medium scale)

Bio-oils (typically small to medium scale)

4.4.2-4 Low carbon technologies

The following low carbon technologies may be considered.

・Clean coal technology（CCT）

・superconducting power transmission

・light utilization more efficient

・Ultra-highly efficient heat pump

・HEMS／ＢＥＭＳ

●Reference

<Toolkit>

・Cool Earth エネルギー革新技術計画（経済産業省資源エ

ネルギー庁）（J）

25

Renewable Energy Categories

Renewable Energy Technologies

Geothermal Geothermal heat generation (typically large scale)

Geothermal electricity generation (typically large scale)

Ground source heat pumps (small to medium scale)

Air-source Air-source heat pumps (small to medium scale)

Hydrogen Hydrogen fuel cells power generation

Hydrogen fuel cell Cogeneration – heat and power

Natural Gas Gas cogeneration - heat and power (small to large scale)

Waste Heat Recovery Medium Temperature Hot Water (MTHW)/MTHW Waste heat recovery – District systems

Low Temperature Hot Water (LTHW) Waste heat recovery – local systems

Table IV-7 provides a checklist summary of the factors that should be considered within the low carbon and renewable energy resource review. Further information on some of these aspects is provided below.

Table Ⅳ-7: Key Factors that should be considered in the low carbon and renewable energy resource review


Relationship

between the energy

strategy and other

aspects of urban

sustainability

Closed-loops / virtuous cycles related to energy

Energy and waste: review waste streams, viability of energy from waste

technology (heat and electricity)

Energy and water: review the current energy cost of water, and power any

desalination from low carbon sources

Energy and ecology (agriculture): Anaerobic digestion still provides a useful

by-product that can be used to fertilise land

Energy and culture: review smart technology techniques to highlight the

26


cultural attitude to energy and how this could be altered.

Energy and place-making; provide visible renewable and low carbon energy

generation as part of the built landscape

Energy and socio-economics: ensure that all citizens have access to low

carbon energy

By sector The applicability of renewable technologies varies depending on building energy

demand, which are broadly similar within sectors:

Proportion of electrical to heat use

Split of energy use for different uses, e.g., lighting, small power,

heating, hot water, cooking, IT, etc

Energy demand profile

Available roof area

Available site footprint vs total development area

Volume to floor area

Refurbishment and rebuild rates

By technology

Available renewable resource, sunlight, ground temperature, wind

characteristic, biomass availability, waste streams etc.

Visual impact

Tariffs and taxes

Cost and benefit

Demand profile vs availability of renewable resource

Space requirements

27


Opportunities

Process helps to establish new markets in renewable energy

Provides a value to owners and funders by increasing a buildings attractiveness to the market


Constraints


During the Strategy Scenario Development stage specific low carbon energy solutions would have been targeted in order to achieve the aims and objectives of the Energy Strategy. On review of the low carbon energy resource, if it is concluded that there is not sufficient resource to deliver the chosen solution, the Energy Strategy Scenario should be amended and refined where required.

4.5 Smart Communities: Creating a ‘clever energy society’ with cross-sector integrated energy system

4.5.1 Introduction

Smart community is defined as a social system that deliberately aims to manage its use of resources in a sustainable and integrated way to achieve a balance of social, environmental and economic objectives. The resources managed include primary fuels and their derivatives including electricity, heat and cooling as well as water and waste. This is achieved through the use of self-monitoring, reporting and control devices which link resource consumption to supply in a way that minimises consumption and peak demand. Smart technology is applied to all elements of energy use – building,

4.5.1-1 Kitakyushu Smart Community creation business

1. Definition of Smart Community（Nation）

"Smart community" is a concept of new town planning

based on the use of Information Technology (IT) that

deeply integrates environmental and system technologies such as Smart Grids, renewable energy, urban

transportation, water treatment and recycling, where

Japan has an advantage. This concept matches the solution to problems related to social infrastructure that

arise in emerging countries, and many countries

including India highly expect Japan's contribution. METI considers this concept as one of the 11 important fields of

infrastructure-related/system exports in the Industrial

Structure Vision, and considers the "Smart information system" aiming at solving problems taking advantage of

IT as another.

2. Definition of Smart Community（Features of

Kitakyushu）

“Integration between factories and cities” and “Local energy supply by co-generation of core” are unique in

Kitakyushu. Local distributed power generations such as

Higashida co-generation（Special energy supply ）as an

assumed basic electricity and basic ＰＶ,fuel cells and

other generations supply steam to factories and electricity to cities.

3. Basic concept of Kitakyushu Smart Community creation

business

Kitakyushu Smart Community creation business creates

the social infrastructure toward low carbon society to

embody local EMS to be and change “Life style”, “Business style” and urban development by integrating

intelligence of industries, universities and governments

allying with fundamental systems.

4. Operation of Kitakyushu Smart Community creation

business

NPO SATOYAMA, active viewers of Sustainable

Society with Kitakyushu city conducts inspection for

facilities of Kitakyushu Smart Community creation

business. NPO SATOYAMA, Active viewers of

Sustainable Society is located in the area of testing

Kitakyushu Smart Community creation business since 2005

and develop Higashida as a core member

28

transportation and infrastructure. Smart systems enable individuals knowingly to modify their behaviour to meet climate change objectives.


A Smart Community Strategy targets a region/district wide reduction in carbon emission by integrating energy systems across all sectors and optimising their management and control to reduce the total consumption of energy. Aspects of the energy strategy to support smart communities will have been identified through the initial Baseline and Policy Review, this includes:

Establishing opportunities for creating cross-sector energy optimisation (transport system, industries, data centres, residential, recreational etc.)

Establishing existing energy requirements (electricity, heat) of potential smart grid community and any ‘waste energy’ streams

Implementing the education of local community in energy consumption and smart communities


The selected energy scenario should be reviewed to establish opportunities for the application of Smart Community integrated systems. The feasibility of bi-directional energy management should be assessed for all sectors of the community: Power plants (Co-generation and Trigeneration opportunities to be considered), Government (transport etc.), Industry, Businesses and Citizens.

Aims and objectives for the implementation of Smart Community strategies should be established during this stage and progressed as an integral part of the city-wide energy strategy.

The Smart Community Strategy Review should be undertaken by specialist energy consultant technical advisers.

Table 8 provides a list of strategic options that should be considered for smart community implementation.

4.5.3-1 Dynamic pricing

This is the first trial and investigated the tariff to do some

simulation.

Eg 3 patterns as follows

① “Basic pricing” decides the basic price of “morning,

afternoon, evening” at the beginning of year.

② The message like “Today’s price is xxx” will be

distributed to users to consider the weather forecast and electricity demand projection in previous day or the

morning.

③ “Real time pricing” will be set before 3 hours when the demand is growing strained.

4.5.3-2 Implement energy saving systems to buildings

Develop and install HEMS,BEMS intensively which a variety

of buildings in the area should enjoy max effect in each way of

use and be cooperative with local EMS and energy saving

systems such as air conditions with high efficiency and

lighting. Targets of the system are residents, offices,

commercial facilities, museums, factories, hospitals and SS as

well as urban infrastructure like cities lighting.

Challenge to create society with little loss of energy such as

implementation of LED to street lightings and houses for

experimenting direct current.

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Table 8: Strategies for smart communities

Smart categories Strategies for smart communities

Smart metering Review smart metering technologies and how to engage public in metering

Install smart metering pilot

Review pilot success and implement wider installation adaption in line with pilot outcome

Dynamic pricing Review energy profiles and tariffs to understand benefit of dynamic pricing of utilities

Implement smart metering capable of dynamic pricing

Assess interaction with other smart solutions, e.g. smart metering and energy management systems

Energy Management Systems

Review of different energy management strategies:

o Review feasibility of Home Energy Management Systems (HEMS) – functionality, data collection, communication etc.

o Review feasibility of Building Energy Management Systems (BEMS) – functionality, data collection, communication etc.

o Review feasibility of Factory Energy Management Systems (FEMS) – functionality, data collection, communication etc.

o Review feasibility and opportunities for Distributed Energy Resources (DER) – regional energy demands, energy suppliers/resources etc.

o Review feasibility of Community Energy Management System (CEMS) – establishing network, functionality, communication etc.

Review opportunities for management systems

o Thermal storage of excess renewable energy generation for use

o Demand management of non-essential plant in buildings

o Assess whether electrical storage can be undertaken on a large scale (using EVs, batteries, etc)

4.5.3-3 Develop local EMS with a core of local power

generation

Develop “local power generations” to control energy to

consider both supply and demand sides.

Develop control systems to manage total energy in the area to

utilize advanced energy control, EV, storage batteries through

integrating “１ Develop blocks to use a new energy, 10% of

total energy” and ”２ Implement energy saving systems to

buildings” and fundamental electric grids

This local EMS controls solar, hydrogen, wind, waste heat in

the area totally.

4.5.3-4 Develop urban transportation systems

Develop the infrastructure of electricity charging which is

necessary for auto-mobility corresponding to the electricity

society with high energy efficiency and realize auto-mobility

systems to be by implementing a lot of next-generation

automobiles in the area. Develop the next-generation

transportation systems including bicycles and public

transportation by implementing transportation streams to use

necessary sensors and simulation of pedestrian streams as well

as mobility information systems ＩＴＳ、eco-driving.

30

Smart categories Strategies for smart communities

etc.

EV/PHEV Assess the likely uptake of electric/plug-in hybrid electric vehicles (EV/PHEV)

Assess the requirement for EV/PHEV charging points

Assess smart interactions with Energy management systems, metering and dynamic pricing etc

Smart devices Assess the viability of implementing a smart devices policy and its impact on the grid

Review the interaction between utility consumption and presentation of use on visible devices

Implement pilot study to review effectiveness with population

Table IV-9 provides a checklist summary of the actions that should be completed within the Smart Community Strategy Review.

Table IV-9: Smart Community Strategy Review Checklist

Section Requirements Description

Smart Community Review

Review the selected energy scenario strategy and establish opportunities for smart community integration

Determine and agree required information for Smart Community Review

Determine and agree tools required for Smart Community energy review

Review bi-directional energy management of all applicable government and business sectors of the region:

o Energy o Water o Ecology

4.5.3-5 Develop local social infrastructure to be in the next-

generation

This test covers a wide range of society to develop EMS,

electricity charging systems like EV which enable to cope with

many next-generation automobiles, billing systems, bridge

systems with public transportation and assure on-demand buses

to cope with elderly society.

Improve environment in urban infrastructures such as

improvement of heating environment to organize green spaces

and body feeling environment in the local to control a sensitive

weather.

A new public will “develop urban” where regenerate local

communities and local communities are responsible of

“developing urban” trough local residents experience to use

new energy. These activities should be applied to social

infrastructure information systems (smart systems) such as

EM as well as waste disposal, transportation and water and will

manage information about infrastructures of all cities improve

convenience of citizens and business sectors

●Reference

<Toolkit>

・次世代エネルギー・社会システム実証北九州スマートコミ

ュニティ創造事業マスタープラン（J）

<Case Study>

・低炭素社会に向けた北九州市の挑戦（北九州スマートコミュ

ニティ創造事業）（J）

・Striving to Smarter City -The Kitakyushu Smart Community

Creation Project（E）

・JAPAN SMART CITY(The Kitakyushu Smart Community

Creation Project) （Ｊ/E/C）

31

Section Requirements Description o Transport o Waste o Etc.

Establish and agree regime for prioritising energy management

Agree aims and objectives of Smart Community Strategy Review impact on energy strategy deliverables, programme

etc. Agree Key considerations Establish main technical options Complete Cost Benefit Analysis of Smart Community

implementation Assess ‘ease of implementation’ Complete required stakeholder consultations

Japanese technology elements related to smart communities are well listed in the “Japanese Smart

Energy Products & Technologies” published by Japanese Business Alliance for Smart Energy

Worldwide.

(http://www.jase-w.eccj.or.jp/technologies/index.html)

For the development of technologies, please refer to the section of Energy in “Technology Strategy

Map” issued by Japanese Ministry of Industry, Technology and Energy.

http://www.meti.go.jp/policy/economy/gijutsu_kakushin/kenkyu_kaihatu/str2010download.html#6

(Available only in Japanese.)

http://www.jase-w.eccj.or.jp/technologies/index.html

http://www.meti.go.jp/policy/economy/gijutsu_kakushin/kenkyu_kaihatu/str2010download.html#6

32

5 Strategy Testing and Measurement Tools

5.1 Purpose

The selected energy strategy scenario’s energy reduction and carbon reduction targets as well as the energy strategy’s aims and objectives should be benchmarked against peer international cities to establish the relative performance of city. This is an information gathering and review exercise using desk-based or other research methods.

5.2 Key Considerations

The strategy should be tested throughout its development to ensure it is appropriate to proceed to the next stage of strategy development. Testing and measurement typically relates to overall viability, environmental performance, cost and financial performance and tends to be quantitative in nature. The overall viability of the strategy should be tested early in the development cycle utilising data from the Baseline and Policy Review. Social, environmental and financial performance should be tested next as delivery options are evaluated (assuming there are appropriate targets to be achieved) with detailed financial performance tested towards the end of the cycle.

Overall viability and environmental performance testing and measurement should be undertaken by an energy specialist, which may be a consultant technical adviser or a government representative.

Financial performance testing and measurement should be undertaken by a specialist financial advisor, supported by an energy specialist, which may be a consultant technical adviser or a government representative.

Social performance testing and measurement may be in relation to a variety of factors such as employment provision, contribution to economic growth or benefits to a wider group of stakeholders that may be directly or indirectly affected by the strategy’s proposals. This may form part of wider sustainability appraisal, stakeholder consultation or specific economic assessment and undertaken by relevant specialists in these areas supported by a specialist in low carbon energy. Again, this may be either a consultant technical adviser or government adviser.

33

5.3 Main Technical Options

The review and multi-criteria analysis of the subject city’s and peer cities’ sustainability aims and objectives should be undertaken, enabling an impartial review of the subject cities sustainability performance and aspiration.

The Benchmarking exercise is aiming to compare the subject city to the process and the performance metrics of the best practices in other cities or projects, and should be undertaken by specialist energy consultant technical advisers.

The actions that should be completed within the Benchmarking stage are:

Review the sustainable objectives, successes and lessons of Kitakyushu city

Review the sustainable energy targets of peer cities (C40 Cities analysis: Soul, Tokyo, etc.)

Complete multi-criteria analysis of subject city and peer cities

Review relevant and appropriate best practises business cases

Stakeholder consultation

Establish Benchmarks

The original aims and objectives of the energy strategy may have set targets for the performance of the subject city in relation to peer cities. If these targets of have not been achieved the energy strategy scenario selected during stage 3 of the development should be refined and the benchmarking stage repeated.

Table IV-10 sets out a checklist of the main testing and measurement tools applicable to an energy strategy.

5.3-1 Items to be done for energy strategy of Kitakyushu city

Implementation of new energy：number of installing PV,

wind power generation and reduction

Implementation of saving energy：number of installing

energy saving appliances, building maintenance for saving ,reduction

Eco-friendly houses：number of houses with energy

saving

●Reference

<Case Study>

・スマートコミュニティについて（平成 24 年 7 月 11 日資源エ

ネルギー庁）（Ｊ）

・第 14 回次世代エネルギー・社会システム協議会（平成 24

年 2 月 1 日資源エネルギー庁）（Ｊ）

34

Table IV-10: Testing and Measurement

Item Testing and Measurement Tools

Viability Sensitivity Analysis

Multi-Criteria Analysis

Environmental Performance

Energy Consumption measurement tools (benchmarking)

Carbon emissions measurement tools (carbon emissions factors, carbon footprinting, Beacon tool, decode tool)

Cost Capex and Opex spreadsheets derived from empirical data.

Life-cycle replacement costs.

Financial Performance Discounted cash-flow model to establish Net Present Value, Project Internal Rate of Return etc.

Social Performance Sustainability Appraisal (ASPIRE Tool)Stakeholder Consultation

Poverty and Social Analysis

Capacity-Building and Knowledge Management Plan

Resettlement Action Plan

5.4 Stakeholder Consultation

Consultation with key stakeholders and a wider ‘qualitative’ testing of the strategy with all interested stakeholders should be undertaken– these will include regulatory bodies, local authorities, trade bodies and citizens. Genuine stakeholder consultation will engage with interested parties at the earliest opportunity when meaningful dialogue can take place. Each stakeholder will have different priorities and may, therefore, require a different approach in terms of mode and means of consultation. To this end a separate stakeholder consultation strategy should be prepared, implemented and managed by a specialist in energy communication and public consultation.

Stakeholder consultation should also be extended to potential service providers and lenders through soft market testing in the form of workshops with relevant industry representatives where the

5.4-1 Stakeholder Consultation in Kitakyushu city (Case

study of Kitakyushu city by IBM)

（eg）Energy saving optimization in local area

1. All stakeholders involvement and mix is mandatory

- Government/municipal

- Users/residents

- Building operator, Building owner, tenant

- Device companies (BMS/HMS suppliers)

- Service providers

- Electricity suppliers

- Marketing companies

- Distributors and support providers

2. Define the role of each player

3. Align plans and actions with government policy to

construct a sustainable social mechanism

35

strategy proposal can be explained to the market and general comments and feedback invited. Such opportunities are likely to be more beneficial to the market where the procuring organisation’s position on key risks can be made known. The workshops require various participants but organisation and delivery should be undertaken by a specialist in energy communication and consultation or meeting facilitation.

5.5 Understanding Opportunities and Constraints

Opportunities

Testing and measurement provides an assurance that the policy proposals and implementation plan developed as part of the strategy are fit for purpose.


Demonstrates that proposals are viable and that key stakeholder concerns have been taken into account during the process.

Constraints

May be a need to consider alternative options if testing does not provide desired or expected outcomes.

Managing expectations, and balancing the competing objectives of, stakeholders.

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6 Procurement and Financing

6.1 Key Considerations

To successfully procure and finance the infrastructure and services required to deliver the energy strategy the risks associated with delivery need to be identified and understood. Before beginning procurement, a risk specific workshop should take place involved a range of specialists to provide technical, legal, financial, procurement and risk management advice. These can be consultant technical advisors or government representatives.

6.2 Models for funding and procurement

There are a number of different ways in which carbon reduction or mitigation can be funded:

Grand funding, provided by state, region or city

User funded, justified by savings made in energy bills

Citizens-based renewable energy fund, often administrated by a social enterprise or non-profit organisation with “fund for funds” contributed by a city, by soliciting citizens for investment fund for community renewable energy projects.

Low carbon investment fund, administered by the city lending specifically to energy efficiency projects at reduced rates. This is still user funded, justified by savings made in energy bills. The London Energy Efficiency Fund (LEEF, or the Global Climate Partnership Fund (GCPF) are examples of this.

Energy Services Performance Contracting ESPC: Third party installs energy reduction or carbon mitigation measures and guarantees a certain level of energy reduction. This can take a number of forms:

o On balance sheet funded by the user, justified by savings made in energy bills (London’s RE:FIT programme is an example of this)

6.2 Funds for renewable energy

●Reference

<Toolkit>

・ESCO 事業について（J）

<Case Study>

・市民発電所建設事業（J）

37

o Off balance sheet funded by third party or funding institution, where third party receives difference between existing and new energy bills

kitakyushu model energy...

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