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Smart Grids & Smart Cities are not markets…
… They are political choices for citizens that will have to adapt.But It might be interesting and fun !
Olivier CATEURA, PhD. Grenoble Ecole de Management, France
Smart Cities: Intelligent Systems and IntegrationSession 1: If You Build It, Will They Come? Smart Grids, Policy and Consumer Choice
Fort Collins, Colorado, USA. October 23 & 24, 2013.
Olivier CATEURA, PhD.• Assistant Professor in Strategic Management, Grenoble EM,
since 2007• Head of the Advanced Program (MS – Specialized Master) in
Energy Marketing & Management.– A joint degree between Grenoble Ecole de Management &
Grenoble Institute of Technology, – Analyst, Consultant, Entrepreneur & Professor, in the energy sector
since 2003.• Member of Tenerrdis Energy Cluster, EU – EIT Kic InnoEnergy
Program Leader, Affiliate Faculty on MicroEconomics of Competitiveness (M. Porter’s Course Harvard BS/ISC)
• Education : – PhD, in Strategic Management (Université Montpellier I), – MSc in Management (EMLYON Business School), – BA in Political Sciences (Sciences Po Aix).
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Grenoble Ecole de Management
Grenoble Ecole de Management / Graduate School of Business.• Top 6 French Business School. Top 25
in Europe. AACSB, AMBA, EQUIS Accredited.
• Focus on Management of Technology & Innovation (Energy, It & Health).
• 6500 students, 40 programs, 110 full time Faculty.
• Campus in Grenoble, Paris, London, Moscow, Beijing & Singapore
Agenda
1. SMART GRIDS & SMART CITIES ?…
2. THE FUTURE IS IN THE CITIES
3. THE FRENCH EXPERIENCES
4. WHICH PLACE FOR CONSUMERS ?
O.CATEURA. Grenoble EM. 2013/10
Smart Grids & Cities are buzz words
http://blogs.forrester.com/jennifer_belissent/10-11-12-smart_is_here_to_stay_smart_city_tweet_jam_summary
Where is the consumer ?
Context : Major Trends in the Energy Sector (PEST analysis / Smart Grids & Smart Cities)
– P : Competition in the energy sector (Deregulation)• Shared power between States / Utilities / Customer
– E : Growth of Energy Consumption (+50% by 2035 - worldwide)• Electricity growth : +100% by 2035 (80% non-OECD)
– E : Economic slowdown• Debt burden & social priorities : avaibility of cash.
– S : New regulations for fighting against Climate Change • Climate Change Mitigation & CO2 Reduction (Kyoto, EU –ETS)• 3x20 priorities + EU Roadmap/Smart Meter by 2020. Decarbonisation by 2050
– T: Fossil Fuel Scarcity (?) & Investment in Renewables• European Strategic Energy Technology Plan (SET-Plan & Technology Roadmap)
– T : Technology Innovation• ICT innovations & availability of Smart Grids Technologies• Growth of Electric Vehicules Projects
World Energy Consumption 1990 – 2035 (quadrillion Btu)
• Total world energy use may rise from 505 quadrillion British thermal units (Btu) in 2008 to 619 quadrillion Btu in 2020 and 770 quadrillion Btu in 2035.
• Energy use in non-OECD nations increases by 85 percent in the Reference case, as compared with an increase of 18 percent for the OECD economies
http://www.eia.gov/ US Energy Information Agency
Electricity consumption growth 2007-2050
KEY POINT: Emerging economies will need to use smart grids to efficiently meet rapidly growing electricity demand.
Source : IEA, 2010 & International Energy Agency. (2011) Technology Roadmap – Smart Grids. OECD/IEA.
What is a Smart Grids ?
“A smart grid is an electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users”.
• Use of Information & Communication Technologies (ICT)• Real-time & bi-directional information (Utilities &
Consumers)
Source : International Energy Agency. (2011) Technology Roadmap – Smart Grids. OECD/IEA.
Smart Grid is a Technological Answer to :
• Low carbon economy
• Based on decentralized renewables energy
• Focused on energy efficiency & service quality
It’s a important need for emerging economies, but available and affordable now in developed countries
Smarter Electricity Systems
KEY POINT: The “smartening” of the electricity system is an evolutionary process, not a one-time event.
Source : International Energy Agency. (2011) Technology Roadmap – Smart Grids. OECD/IEA.
Remember : This is a Black out…
The USA…14th August 2003NY Region in the black…
The Smart Grid is part of the answer…
http://www.ptd.siemens.de/artikel1003.html
Idea from O.Cottet / Schneider Electric / HOMES Program.
Smart Everything…?
• Smart Grids• Super Grids • Micro Grids
• & Smart Buildings… !?
A Smart Grid Needs Smart Buidlings
http://www.institutebe.com/smart-grid-smart-building/What-is-a-Smart-Building.aspx
Consumers at the heart of the smart city
http://www.hitachi.com/products/smartcity/vision/concept/overview.html
Integration of new technologies in the city : Energy / Water / Transportation / Information Technology & Communication (ICT)
Big Potential Worldwide Market• Smart Grids : $ 100 Billions by 2020
– 39 billions USD, by 2016, compared to 10 billions in 2010. (Sce : AbiResearch)
– By 2020 a 100 billions USD potential market (Source : Items Int ’l , nov 2012)
• Smart Cities : Global Opportunity in Smart City Market to Total $3.3 Trillion by 2025– Source : Frost & Sullivan: Connected and Intelligent Infrastructure, e-
Government Services, and Smart Security Solutions to Drive Smart City Market
http://www.greentechmedia.com/images/wysiwyg/research-blogs/taxonomy-large.jpg
Agenda
1. SMART GRIDS & SMART CITIES ?…
2. THE FUTURE IS IN THE CITIES
3. THE FRENCH EXPERIENCES
4. WHICH PLACE FOR CONSUMERS ?
O.CATEURA. Grenoble EM. 2013/10
Mega-Trends : Climate Change
http://www.nps.gov/sama/planyourvisit/climate-change-in-new-england.htm
Mega-Trends : Digitalization
Mega-Trends : Demographic Growth
From 3 billions in 1960 to 6 in 1999 & maybe 9 in 2050…
Mega-Trends : Urbanization
Lagos, Nigeria Mumbai, India
Chongqing, China
Cities are the major phenomenon of our growing period…
Rank City/Urban area Country
Average annual growth
2006 to 2020, in %
1 Beihai China 10.58
2 Ghaziabad India 5.20
3 Sana'a Yemen 5.00
4 Surat India 4.99
5 Kabul Afghanistan 4.74
6 Bamako Mali 4.45
7 Lagos Nigeria 4.44
8 Faridabad India 4.44
9 Dar es Salaam Tanzania 4.39
10 Chittagong Bangladesh 4.29
11 Toluca Mexico 4.25
12 Lubumbashi Congo 4.10
13 Kampala Uganda 4.03
14 Santa Cruz Bolivia 3.98
15 Luanda Angola 3.96
• From 20 major cities (more than 1 million inhab.) to more than 450, mainly in Asia and Africa.
• More than 50% of the global population are in the cities. It will be 70% soon….
Fastest growing cities and urban areas
http://www.citymayors.com/statistics/urban_growth1.html
Building new « smart cities » ? Four models
• Economic Development• Brownfield
• Real Estate• Greenfield
Lyon Confluence (France)
PlanIT Valley, Parades, Porto (Portugal)
Masdar City, Abu Dhabi (United Arab Emirates)Masdar City, Abu Dhabi (United Arab Emirates)
Masdar Institute, January 2013.
Konza Techno City (Kenya)
Songdo (South Korea)
“Getting Clever About Smart Cities: New Opportunities Require New Business Models”, from Forrester Research http://www.urenio.org/2010/12/04/forrester-research-on-smart-cities/
Agenda
1. SMART GRIDS & SMART CITIES ?…
2. THE FUTURE IS IN THE CITIES
3. THE FRENCH EXPERIENCES
4. WHICH PLACE FOR CONSUMERS ?
O.CATEURA. Grenoble EM. 2013/10
http://www.iau-idf.fr/?id=349
From the concept of « Ville Nouvelle »In France, in 1970’s.Greenfield investments
- 5 Near Paris :Cergy-PontoiseMarne-la-ValléeMelun-SénartEvyySaint-Quentin- en-Yvelines +- 4 Outside of Ile de France :Villeneuve d’Asque (Lille)Berre l’Etang (Marseille)L’Isle d’Abeau (Lyon)Val de Reuil (Rouen)
Massive public housing, public transportation + New University.
New Smart Grids Projects in France « ADEME Showcase »
• Demonstrateur (showcases) ADEME – National Energy Agency – Thanks to a public endorsment– Investment for the Future Program.
• Brownfield => Urban modernization. Former industrial area or « smart campus, business district or neighborhood ».
1. Reflexe – 9 M€– Veolia – Dalkia, Alstom, Sagemcom, CEA-INES, Supélec
2. IssyGrid (Issy-les-Moulineaux)– Bouygues (Grp, Immo, ETDE), Schneider Electric, Alstom, Total, Microsoft,
Steria.
3. NiceGrid (Carros) – 30 M€– EDF, ERDF, Alstom, SAFT, Watteco, Armines...
4. GreenLys (Grenoble & Lyon) – 39 M€– GEG, ERDF, Schneider Electric,
GDF-SUEZ, Grenoble INP, CEA…
Réflexe in briefPériode: 2011 – 2014Budget: 9 millions d’eurosLoadshading target : 1 MW during 1hLocalisation: Provence-Alpes-Côte-d’Azur (Nice & Sophia Antipolis)Members : - Veolia Environnement (project management and energy management, aggregation)- Alstom (aggregation software, dispatching, and energy storage- Sagemcom (electronic and monotoring equipments )- CEA et Supélec (solar generation & energy storage…)
http://www.capenergies.fr/index.php?2011/07/07/618-capenergies-en-pole-position-sur-les-smart-grids
Budget : 30 M€ 4 years (2012 – 2015)1500 users. 2MW storage
http://www.rslnmag.fr/post/2013/09/27/smart-grids-Issy-les-Moulineaux-accueille-le-premier-reseau-de-quartier-intelligent.aspx
http://www.lesechos.fr/entreprises-secteurs/energie-environnement/actu/0203026859846-les-reseaux-electriques-intelligents-font-leurs-premieres-apparitions-en-ville-610449.php
• A Smart Grid for Grenoble & Lyon, by 2015.
• 1000 residential cutomers, • 40 offices & buildings
• 12 partners : 39 M€ (including 9,6M€ by French State, via ADEME)
• Part of an EcoCité Project
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From HydroPower to Nanotechnology• 1890’s : Aristide Bergès – « La Houille Blanche »
« The White Coal » - Hydro Power.
• 1950’s – 1970’s : Louis Néel : CENG & CEA– Nuclear Research – 1968 : Winter Olympic Games in Grenoble
• 1990’s – 2010’s : CEA-LETI, Micro & Nanotechnology.
• 2010’s – 2030’s… GIANT & EcoCité!
• Leaders for Smart Cities. Home of :
an Innovation Campus• 8 partners are drawing the futur of Grenoble
– 5 Research Centers : CEA, CNRS, EMBL, ESRF, ILL– 3 Universities & Schools : Univ. Joseph Fourier, Grenoble INP &
Grenoble EM• … as a world leader location for Innovation.• Three main objectives :
– Responding to three major societal challenges : Health, Information & Energy
– Breaking barriers by creating Centers of Excellence– Harmonizing urban and scientific develpment
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from above
Source :
« Presqu’île Scientifique »
Listed as « EcoCité », both urban, scientific, academic and economic, located on an area of 250 hectares
An investment of 1.3 billion euros over 15 years, divided between ● the scientific and academic GIANT project (600 M €) ● the urban development program (300 M €) ● the infrastructure (400 M €)
850 000 sqm floor area in the forthcoming 15 years, including● 200 000 sqm of commercial property ● 100 000 sqm of university buildings ● 200 000 sqm of scientific buildings● 25 000 sqm of shops, equipment● 2000 family housing, 3000 students housing
Among the top public-private investment in France 2010-2025
Urban ambition, a carbon-neutral site“Greentech” energy production:
Solar, hydrogen, hydraulic
Energy efficiency:
Low consumption buildingsIntegrated energy management
Integrated mobility:
Electric mobility services
Source :
Source :
Some key numbers
Preparing the future….
GIANT today GIANT tomorrow
● 6 000 researchers ● 10 000 researchers
● 5 000 industrial jobs ● 10 000 industrial jobs
● 5 000 students ● 10 000 students
● 300 inhabitants ● 10 000 inhabitants
100 000 visitors annually
5 000 publications annually
500 patents filed annually
€4 billion direct and indirect annual economic impact
50 start-ups launched in past five years
Lessons learned
• Informal networks : – Close connections between Industry, Research & Education.
• Ex : SolarDecathlon Canopea Project.
– Close connections with politics : Links between the City & the CEA impact
• A strategic vision :– A focus on three social stakes : ICT, Health & Energy– Institutionnal Entrepreneurs & Political sponsorship
• A good location too !– Close to Downtown,– Close to the Alps– Quality of life…
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Agenda
1. SMART GRIDS & SMART CITIES ?…
2. THE FUTURE IS IN THE CITIES
3. THE FRENCH EXPERIENCES
4. WHICH PLACE FOR CONSUMERS ?
O.CATEURA. Grenoble EM. 2013/10
Recommandations• Political & strategic vision for our civilization.
– A collective strategy with citizens, locally and at national and regional level (EU / KIC InnoEnergy)
• Political stability & regulation– « Do you want to know what keeps me up at night? Not my programmers. Not my
investors. Not my health care costs. It’s state regulators »CEO of Smart Grid Leading firm. In Peter Fox-Penner, Smart Power.Climate Change, the Smart Grid, and the Future of Electric Utilities
• Start with University Campus. – Develop Living Labs.– Learn & Build up on experiments & R&D
• Crossing the Chasm (G.Moore) Niche strategy.
• Involve the « Prosumer »– from energy consumer to > e-aware >
e-manager > energy partner– Develop Living Labs.
Conclusion
• The « Smart Gird » & the « Smart City » are not « markets » with « customers ».
• They are « Political Choices » and « Policies », with « Citizens »,…
… that will have to pay, for these infrastructures.– It will be too difficult to build it on individual choices and
consummer needs.– It will be fixed by laws and regulations, taxes & incentives.
• But it should be fun and attractive !
To go further…• My slides & presentation is on slideshare : http://fr.slideshare.net/oliviercat/
http://fr.slideshare.net/oliviercat/131024-oca-nzc-smart-grids-cities-consumers
• Global Smart Grid federation : www.globalsmartgridfederation.org• IEA Smart Grids Technology Roadmap :
www.iea.org/papers/2011/smartgrids_roadmap.pdf • EU Smart Cities & Communities : http://eu-smartcities.eu/• JRC Report Smart Grid Project in Europe :
http://www.smartgridinformation.info/pdf/4516_doc_1.pdf
A book : • Fox Penner Peter (2010) Smart Power. Climate Change,the
Smart Grid, and the Future of Electric Utilities. Island Press.
Smart Grids & Smart Cities are not markets…
… They are political choices for citizens that will have to adapt.But It might be interesting and fun !
Olivier CATEURA, PhD. Grenoble Ecole de Management, France.
Smart Cities: Intelligent Systems and IntegrationSession 1: If You Build It, Will They Come? Smart Grids, Policy and Consumer Choice
Fort Collins, Colorado, USA. October 23 & 24, 2013.