Smart Altitude Webinar Series

N°5

Value creation through low- Smart Altitude carbon innovation FOR A RESILIENT FUTURE IN THE ALPS Wednesday 15 July 2020 | 11.00 - 12.00

Andrea Immendoerfer, Steinbeis 2i (Germany)

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleAgenda

▪Why innovate in mountain resorts/ resorts? ▪What value can you create? ▪What do we mean with low-carbon innovations? ▪Tools to help you along the way ▪Experiences from the Smart Altitude Living-Labs

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Why innovate? What value can you create? Low-carbon innovations

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleWhy Innovate?

■ Costs of energy and water for making and tourist accommodation ■ Traffic congestion ■ Competition with other resorts, image ■ The current way of operating ski resorts is threatened by climate ▪ 30 % less snow in the Alps change. towards the end of the century, even if warming − Unpredictable snow conditions limited to 2-degree − Severe weather events ▪ 70% less on the current ■ Need to sustain the livelihoods for local mountain communities. trajectory ▪ Resorts below 1200 m → Resorts need to reduce their GHG-emissions threatened → Resorts need to prepare for changes in climatic conditions (adaptation)

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleDrivers for Change, Drivers for Innovation

Social: Concern for the local community – the special constellation of ski-resorts

■ Competing interests for land-use between agriculture, eco-system services provided by forests and / tourism ■ Foreign investors into tourism influencing or dominating local agendas ■ Second homes, rising property prices driving out locals ■ Dominance of seasonal workers in tourism, including“ski-bums”, who will not feel responsible for the local area ■ Lack of job opportunities outside of tourism driving out the younger generation

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleWhat Value Can You Create?

■ Be more attractive than your competitor (Image) ■ Be attractive even without snow (mild winters, summer) ■ Be attractive to eco-aware tourists Make a Profit More tangibly… ■ Reduce operational cost ■ Improve the visitor experience Safeguard Help longterm mitigate livelihood of climate → Tripple Bottom Line community change

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleWhat’s Low-Carbon Innovation ? Climate Change Mitigation – the Smart Altitude way

Overall : Ski Lifts: Snow Making: Snow Grooming: Buildings: Implement an - Implement an - Replace old grooming - Assess energy - Assess consumption Integrated Energy efficiency, automated snow machines, Management System - Implement heat making system, - Verify the system - improve heating systems (IEMS) recovery and - Implement renewable available for snow - Improve energy efficiency energy sources grooming routes, of building envelope renewable energy - Implement renewable sources - Implement hybrid energy sources for heating snow groomers and electricity

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleNetworked RES + Storage

Electtrical Energy Consumption of the Ski 03 Energyresort: Storage • Ski lift; • Snow making systems;Systems • Fast recharging • Recharging stations for stations for EVs EVs Refuelling station for FCEVs

H2 consumption

H2 production EES

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleThink Further, Think H2, Geotextiles…

multifunctional hydrogen snow groomer concept at the Green Energy Center Europe in Innsbruck since June 2019. (FCH2 JU) Skiing on top of Coppenhagen‘s Waste incineration plant

https://www.youtube.com/watc h?v=e9XL6M_Z1A0 Prinoth prototype of hydrogen snow groomer

Snow farming

https://www.snowfarming.ch/schnee-von- The Solhub: solar array, electrolyzer, gestern-fuer-morgen- fuel cell, storage tanks and fueling 2/produkte/nahmaschine/ station in the skiresort of Hinterstoder (Austria)

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleHow to Get There…

• Tools for innovation management

• Learn from pioneers: Smart Altitude Living-Labs

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Smart Altitude Process Tools 1

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleSteinbeis2i – Our Work with SMEs

■ We are partners in many EU-Projects with responsibilities for project management, communication and exploitation of project results. ■ We reach out to SMEs on behalf of the regional ministry of economics ■ We help SMEs to understand and rationalize their innovation potentials ■ We coach SMEs with basic innovation management techniques ■ We advise them on EU-funding opportunities

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleSmart Altitude Process and Tools

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleWider Innovation Process

Plan Implement

Prioritise: how does low-carbon innovation Monitor fit into the overall Agenda

Innovation Audit: where/ how good is the Communicate resort overall ?

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleStatus Quo - SWOT Analysis

Strengths Weaknesses • What do you do well? • What could you improve? • What unique resources/ assets can you access? • Where do you have fewer resources / assets than • What will others perceive as your strengths? others? • What will others perceive as weaknesses?

Opportunities Threats • What opportunities are open to you? • What could harm you? • What trends can you take advantage of? • What are your competitors doing? • How can you turn your strengths into opportunities? • How do your weaknesses pose a threat?

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleSWOT Analysis - Examples

Strengths Weaknesses • What do you do well? • What could you improve? ▪ Safe place for families • What unique resources/ assets can you draw on? • Where do▪ youNot havehigh enoughfewer resourcesto have reliable / assets snow than ▪ Well connected to transport • What will others perceive as your strengths? others? conditions infrastructure • What will others perceive as weaknesses? ▪ Loyal local staff

Opportunities Threats • What opportunities are open to you? • What could harm you? • What▪ Concentratetrends can youon takethe „ advantagesafe, family of?friendly “ image • What▪ areClimate your changecompetitorswill affect doing?artificial snow • How canand you develop turn yourfun winter strengthsholidays into opportunities?with or • What threatsmaking do your weaknesses expose you to? without snow, „Nature dicovery with or without ▪ competitors have better snow & cooler snow“ apres-ski parties, are more fashionable ▪ Develop cultural offerings - your good transport links will allow good access for musicians

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleIdentifying Drivers - PESTEL

Economic E tax burden purchasing power S Political inflation rate nominal interest rate Social tax policy exchange rate trade restrictions population growth rate Often done in a workshop setting… political stability age distribution health cultural aspects ■ Political… education awareness infrastructure career attitudes Economic… P elections safety ■ Company/ migration ■ Social… Resort & Technological Technological… Legal ■ L market R&D activity Environmental law funding ■ Environmental… consumer law automation employment law technology incentives health and safety law Environmental rate of technological change ■ Legal… Intellectual property weather Innovation costs climate ….aspects/ demands/ constraints/ drivers climate change environment protection recycling T renewables E green growth … This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitlePESTEL - Examples

Economic E tax burden Political purchasing power S tax policy Krvavec: inflationWe have rate to Safeguard trade restrictions nominal interest rate Social Mayorpolitical of Les stabilityOrres: This is about local jobsexchangewhich ratedepend on ski population growth rate planethealth earth – I want us to be a tourism Uni Milan:age distributionOur young people are education cultural aspects infrastructuresuper-green resort leaving mountainawareness communities – P elections we needcareernew attitudesopportunities in the Company/ Resort safety migrationmountain & market Legal Technological Environmental law L R&D activity consumer law Krvavec: set within a protected funding employment law Verbier: the Canton of Valois is area, very difficult to get automation health and safety law Suppliers: we have the Environmental technology incentives going to Intellectualchange legislationproperty permission to build new lakes for Technologiesrate of technological for changemore efficeint regarding large energy snow makingweather,, new slopes, new climate, Innovationsnowgroomers costs / IEMS/ direct consumers, such as ski resort carclimateparking change … drive lifts…(LesOrres/ Madonna operator, to force them to put in environment protection recycling di Campiglio) place climate change action plan renewables E green growth T … This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Smart Altitude Living Labs: Innovation Journeys

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Innovation Stories - Les Orres (FR)

The Problems / Challenges we met: Organisational: when setting up an energy saving system the system needs to be controlled training all operational and administrative staff (snow groomer drivers, ski lift operators, administrative and technical staff Demand and production balancing occupying building and premises) to energy saving quality system in a self-production approach procedures. optimizing local renewables Financial: lack of knowledge on the real cost of implementing an IEMS: systems which save up to 25% of the energy bill can be set up in a 1-2 yrs. Timeframe, with very good ROI (< 3yrs.) Our Most Innovative Eco-Solutions: Also, specific regional or national grants could be set up to help - Extensive IEMS + microgrid approach: the most economically fragile resorts acquire the necessary - Integrating major energy consumers (tourism housing) equipment and engage into a global energy saving plan. - Local green energy production to move towardsenergetic autonomy. Regulatory: in France, the regulatory environment is not - Moving towards a peer-to-peer energy community. favourable to the implementation of own-consumption and peer- to-peer energy trading, nor local energy communities. How it started - Highly committed mayor Pierre Vollaire Journey to Success: - Concern for planet earth - Close long-term collaboration with EDF - Concern for local community - Commitment to disseminate and feed into regulations Innovation Story – Madonna die Campiglio (IT)

How it started - Started in 2018 with energy audit - Competitive advantage: provide high-quality ski slopes and ski lifts - Top management targeting “Zero Emission 2026” - Collaboration with local research centre and Test of integrated EMS, from process institutions for technology transfer of innovation optimization to comprehensive territorial strategy

Our Most Innovative Eco-Solutions: The Problems / Challenges we met: - Integrated energy management system (IEMS): collects + integrates - Resources: qualified personnel, time and budget real-time data from mountain environment + ski infrastructures, - Capital costs of low-carbon technology are often high Includes: electric grid, snow production, lake monitoring, snow - Energy costs have a low impact in the final turnover of grooming, weather, ski lifts + skier data. the Ski-resort. Therefore, energy saving is a second - Intelligent water monitoring on Lake Montagnoli: 2 floating devices priority with temperature sensors, real-time data on the water temperature at different depths, water surface + weather conditions for optimization Journey to Success: of the artificial snow production process to save in energy and water - Continuous relationships with local agencies such savings and heat recovery. as Trentino Sviluppo and Assindustria Trento - Heat-pumps (ambient heat) for heating the snow-groomer workshop (Assoenergia) and with research centre as FBK - Planned: PV potential on the Madonna di Campiglio ski-lift + Electric mobility Innovation Story – Krvavec (SI)

How it started - Uros Zupan is a former professional skier who is COO in the mountain resort Krvavec. He feels strongly the responsibility of the resort for the economic situation of the local Multi-energy consumption community. reduction approach on - The unfavorable position of natural snow forces us to invest processes, ski lifts and heating in technical snowmaking and optimizing it. Excessive waste of heating resources as well… - Starting with implementation of equipment in the beginning of year 2019 and still continuing.

Our Most Innovative Eco-Solutions: The Problems / Challenges we met: - Larger reservoir lake for snowmaking capacity 100.000 - The main problem is that the region and country does not square meters with summer uses; can be used for participate in investment programs as is the case in most preventing forest fires, will reduce energy consumption other Alpine countries. from pumps which currently have to refill existing lake several time, construction to start in 2021. Journey to Success: - Replacement of the heating system in cable car buildings - We are constantly in touch and communicating with - Replacement of snow cannons with more efficient ones our partners - suppliers, who are introducing us the innovations on the one hand and listening to our ideas on the other. This cooperation is continuous and produces results. Innovation Story – Verbier (CH)

How it started - Reduction of energy cost since and willingness of the management - Starting in 2013 with regulation of small buildings and development of a first energy platform - Improved image/marketing - The importance of “greenness” for ski resorts to be more Innovative measures for monitoring, attractive. optimizing and managing energy - Electricity consumption represent 8 million of kilowatt-hours per consumption over the entire ski area year for Verbier, so huge savings potential The Problems / Challenges we met: Our Most Innovative Eco-Solutions: - Innovative solutions can be complex (far easier to replace an old oil - Integrated energy management monitoring building and lifts boiler with a new one of same specification). energy consumption in real time. The platform allows also to act - Time span to implement innovative technologies is very short on e.g. temperature setpoint, send alarms… (during summer) to implement the work in order to be operative in - Heat valorisation of motors through heat pump to heat offices in the following winter, needs to be organised perfectly a building (average COP of 5). - Replacement of old inefficient motors Journey to Success: - New train station makes Verbier easily reachable by train (e.g. - Téléverbier has an environmental charter in order to keep investing straight from Geneva without changements). in actions to reduce its carbon footprint. - Innovative energy concept for a large building: using the heat - Have improved visitor experience from a motor, PV solar panels, wood burner, small district - more efficient ski lifts reduce energy consumption, transporting heating for nearby buildings, (currently in discussions). more people faster, better thermal comfort in buildings - New legislation in Wallis to be put in place regarding large energy consumers, such as ski resort operators, to force them to manage and reduce their C02 emissions. Tools 2

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleValue Chain Analysis

■ Identify who is affected ■ What stakeholders can contribute ■ What gaps there are in the value chain

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleValue Chain Analysis

What are the new benefits to your What innovations customers? can they offer?

How are they affected, if you innovate? What new suppliers Does the innovation do you need for attract new your innovation? customers ?

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleSustainable Business Model Canvas

Vision

Partners Activities Value Propositions Customers Competitors

Ressources Other stakeholders

Cost Revenue

Based on Borderstep Sustainable Business Model Canvas This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleSustainable Green Business Model Canvas

„We want to be the Vision „We offer all the fun, eco-option for skiing“ even without snow“

Partners Activities Value Propositions Customers Competitors

(What you actually What do they do − Suppliers have to do to provide „We guarantee differently? snow“ − Funding the value proposed) Budget customers? organisations Ressources Adventurer? − Local Other Families? stakeholders authorities E.g. renewable energy „We provide a save Eco-tourists? environment for your potentials − Conservation kids“ agencies − Energy agencies Cost Revenue Think holistically – include „costs“ to the 1. Think of revenue alternatives in addition to environment, e.g. impacts on natural water those related to skiing houshold from snowmaking 2. Consider wider benefits to community

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitlePartners in Madonna di Campiglio

Before Smart Altitude After Smart Altitude Many data management platforms.. 1 integrated data management platform

grid electric consumption skiers data

snow production vehicles fuels consumption

snow groomers operational data snow groomers operational data

snow depth snow depth

snow depth meteo Integrated data visualization and comparison, KPI generation, monthly and seasonal reporting

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitlePorter’s 5 Forces – Finetune your Strategy

Threat of New Entrants

Rivalry Among Existing Bargaining Power of Suppliers Bargaining Power of Buyers Competitors

Threat of Substitute Products or Services

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitlePorter’s 5 Forces – Example 1: Eco-skiing holiday So you have to be Your neighbouring village You‘ll have to recoup Threat of New Entrants ambitious enough! the cost…is contracting becomes even greener an option?

Renewables have high up front RivalryAll theAmongresortsExistingyou Bargaining Power of Suppliers BargainingTourist will Power compare of Buyersprices cost currentlyCompetitorscompete with

What is your VALUE? ThreatMany ofresorts Substitute now cater Products for Appropriate marketing, What is unique? ecoor-aware Services clients consider your target -> marketing group!

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitlePorter’s 5 Forces – Example 2: Virtual Skiing So you have to Newer, more cutting edge provide more You‘re the first! virtualThreat reality of Newskiing Entrantsin larger desirable context -> marketing games centres (catering, desirable environment…)

Real skiing experience While this is new it will cost a Tourist will compare prices Rivalry Among Existing Bargaininglot, prices Powerwill come of Suppliersdown Bargainingamongst Powerdifferent of Buyersindoor Competitors later activities

ThreatOther of virtual Substitute reality Productsgames Consider this when It‘s got to be part of YOUR (nonor Services skiing) setting price RESORT‘s special experience instead of generic gaming

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Stakeholders and Innovation Partners

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleStakeholders

The key players identified by the Smart Altitude project are: - Ski resort managers and operators, - Municipalities (Mayors, political representatives) - Regional authorities These must be managed closely, and in order to engage them successfully it is fundamental to understand their priorities and to find the most effective way to communicate the multi- dimensional benefits that this transition can deliver in terms of economic, social and environmental sustainability for the ski area and the surrounding territory.

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleStakeholder Engagement

Stakeholder engagement should include five key stages which represent groups of necessary questions and processes in planning and managing their engagement.

In particular, a dedicated communication channel with local communities has to be considered and planned carefully.

Figure 1: five stage stakeholder engagement framework (source: AccountAbility, United Nations Environment Programme, Stakeholder Research Associates, 2005) This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleStakeholders – Collaborative Innovation

R&D

Higher Education Industry Institutions Collaborative Projects

Public authorities, SMEs communities

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleOpen Innovation

■ Term coined in 2003 by Henry Chesbrough ■ Especially appropriate for societal problems: demographic issues, effects of climate change faced by resorts ■ Opening up of the innovation process to include customers, researchers, suppliers and partners into the innovation activities ■ Opposite of development of new products in secret behind closed doors

Basic requirements: 1. A strong will to cooperate 2. Reciprocal benefit and added value 3. Mutual trust and transparency 4. Cooperation framework /Consortium Agreement

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleAny questions ?

■ Your chance to ask our Living-Labs how they managed to implement their low-carbon innovations….

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program Become a Replicator

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleBecome a Replicator Who are replicators?

1. Ski-resort operators 2. Policy-makers of Alpine territories 3. Financial operators 4. NGOs 5. Companies operating in the ski sector

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleBecome a Replicator What are the benefits for replicators?

1. Access to all Smart Altitude tools 2. Benefit from consultancy for auditing, planning and implementing low-carbon measures 3. Receive regular updates on state-of-the-art measures for improving energy efficiency, water management and low-carbon strategies 4. Be part of an international network of innovative ski resorts committed to sustainability in Alpine territories

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program TitleBecome a Replicator How to become a replicators?

1. Directly through the dedicated page on the Online Toolkit https://smartaltitude.eu/replicators/ 2. By writing to us [email protected] Coordinator: [email protected] Replicators’ manager: [email protected]

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program THANK YOU

Andrea Immendoerfer [email protected] www.smartaltitude.eu

This project is co-financed by the European Regional Development Fund through the Interreg Alpine Space program