OECD Regional Development Working Papers 2016/05 Masaru Sugahara, Energy and Resilient Cities Leslie Bermont https://dx.doi.org/10.1787/5jlwj0rl3745-en OECD REGIONAL DEVELOPMENT WORKING PAPERS This series is designed to make available to a wider readership selected studies on regional development issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available. OECD Working Papers should not be reported as representing the official views of the OECD or of its member countries. The opinions expressed and arguments employed are those of the author(s). Working Papers describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the OECD works. 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The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law. ----------------------------------------------------------------------------- OECD Regional Development Working Papers are published on http://www.oecd.org/gov/regional/workingpapers ----------------------------------------------------------------------------- Applications for permission to reproduce or translate all or part of this material should be made to: OECD Publishing, [email protected] or by fax 33 1 45 24 99 30. © OECD 2016 Energy and Resilient Cities By Masaru Sugahara and Leslie Bermont. Abstract This paper analyses the role of cities in energy policies to build resilience and assesses related energy policy practices in cities. It analyses how energy affects resilience in cities from the economic, environmental, social and institutional perspectives. It also assesses the policy practices of six cities; Barcelona (Spain), Bristol (UK), Kyoto (Japan), Munich (Germany), Perpignan (France) and Toronto (Canada). This paper outlines the building blocks of key policy strategies; adaptive energy management, robust energy management, redundant energy management, flexible energy management, inclusive energy management, resourceful energy management and integrated energy management. It proposes a number of policy measures in the building blocks for managing energy smartly in cities to build resilience. Keywords: cities, resilience, energy, renewables, urban development, housing and buildings JEL Classification: Q48, Q54, R11, R58 Acknowledgements This paper was drafted by Masaru Sugahara and Leslie Bermont. It was co-ordinated by Masaru Sugahara under the supervision of Setsuko Saya, in the Regional Policies for Sustainable Development Division of the OECD. It benefited from valuable comments and input from colleagues: Luiz de Mello, Joaquim Oliveira Martins, Karen Maguire, Rüdiger Ahrend, Hideki Takada, Tadashi Matsumoto, Abel Schumann, Johannes Weber, Christian Pollok, Loïc Daudey and participants of relevant meetings, including brownbag seminars and workshops. The OECD Secretariat wishes to thank the regional authorities and relevant organisations that co-operated on information collection of the policy practices in the case study cities. Victoria Elliott provided editorial support. The financial support of the Ministry of Land, Infrastructure, Transport and Tourism (Japan) is gratefully acknowledged. 1 TABLE OF CONTENTS 1. INTRODUCTION ..................................................................................................................... 4 1.1. Executive Summary ............................................................................................................ 4 1.2. Background and objective .................................................................................................. 5 2. HOW ENERGY CAN INFLUENCE RESILIENCE IN CITIES ........................................... 11 2.1. Urbanisation and energy ................................................................................................... 11 2.2. Energy’s impact on resilience in cities ............................................................................. 21 2.3. Conclusion ........................................................................................................................ 41 3. POLICY PRACTICES ON ENERGY IN CITIES ................................................................. 42 3.1. Visions and targets ............................................................................................................ 42 3.2. Urban development ........................................................................................................... 53 3.3. Finance .............................................................................................................................. 64 3.4. Institutional capacities ...................................................................................................... 68 3.5. Pilot projects ..................................................................................................................... 71 4. CONCLUSIONS ..................................................................................................................... 73 ANNEX A GLOSSARY ............................................................................................................. 78 BIBLIOGRAPHY ....................................................................................................................... 79 Tables Table 1. Cities selected for information collection .............................................................. 9 Table 2. Share of local renewable energy production in total energy consumption of selected cities .................................................................................................. 15 Table 3. Estimated technical potential of solar energy generation (US) ........................... 16 Table 4. Energy consumption and local renewable energy production in selected cities . 18 Table 5. The impact of energy on resilience in cities ........................................................ 21 Table 6. Disruptions of energy supply by disasters and accidents .................................... 34 Table 7. Targets of urban energy policy in Toronto .......................................................... 48 Table 8. National policy frameworks on resilience in selected countries ......................... 51 Table 9. Targets of urban energy policy in selected cities, national governments and EU ................................................................................................................. 52 Table 10. Barcelona’s Energy Self-Sufficiency Plan .......................................................... 56 Table 11. Regulatory requirements for solar panels by subnational governments in Japan ................................................................................................................ 61 Table 12. Financing methods for energy efficiency projects .............................................. 64 Table 13. Finance schemes for urban energy management by governments ...................... 67 Table 14. Key policy strategies of energy management for building resilience in cities .... 75 2 Figures Figure 1. Energy-related CO2 emissions in selected regions (2014) .................................... 6 Figure 2. Estimated energy demand in cities ...................................................................... 11 Figure 3. Urban population share and total final consumption of energy per capita .......... 12 Figure 4. Energy demand by fuel type (2006) .................................................................... 12 Figure 5. GDP growth and energy production growth in OECD........................................ 14 Figure 6. Energy production by energy sources in OECD ................................................. 14 Figure 7. Deployment of renewable energy facilities per unit of energy consumption (Japan) ................................................................................................................. 15 Figure 8. Energy dependency of OECD countries (2013) .................................................. 22 Figure 9. Growth in consumer prices: energy and non-energy items ................................. 23 Figure 10. Inability to keep household sufficiently warm (2014) ..................................... 25 Figure 11. GHG emissions by human activities ............................................................... 27 Figure 12. Urban population share and GHG emissions per capita (2010) ...................... 28 Figure 13. GHG emissions in the OECD AI, Baseline, 2010-2050.................................. 28 Figure 14. Population density and CO2 emissions per capita in large metropolitan areas 29 Figure 15. Mean annual temperature in Tokyo,