REPORT SHAPING THE CITIES OF TOMORROW: Renewable Energies and Sustainable Urban Ecosystems July 2018 WITH SUPPORT FROM: REPORT SHAPING THE CITIES OF TOMORROW: Renewable Energies and Sustainable Urban Ecosystems Hugo Ferradans, Miquel Rodriguez, Albert Tapia, Albert Banal-Estañol y Joan Enric Ricart With the support of Iberdrola PPP FOR CITIES The Specialist Center on PPPs in Smart and Sustainable Cities (PPP for Cities) is a research, innovation and advisory center whose purpose is to provide government agencies around the world with support in the organization, management and development of collaborative projects between the public and private sectors, in the field of smart cities. It is also a platform for partnerships between companies and agencies at a global level where they can thoroughly explore the dynamics of public-private partnerships, create guides on best practices and standards, and design solutions to the problems faced by cities. The center is run by IESE Business School and is part of the PPP program of the United Nations International Center of Excellence (UNECE). It has the support and sponsorship of the City of Barcelona and other government agencies, as well as private companies. This paper was prepared by the Specialist Center on PPP in Smart and Sustainable Cities, as a document of interest for the study of PPPs; it is not intended to illustrate proper or improper management by the agents. No part of this publication may be reproduced, saved, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or system by any means—electronic, mechanical, photocopying, recording or otherwise—without the written permission of the author. DOI: https://dx.doi.org/10.15581/018.ST-482 WORKING TEAM Hugo Ferradans Research Assistant del Specialist Center on PPP in Smart & Sustainable Cities (PPP for Cities) Albert Tapia Research Assistant Albert Banal–Estañol Research Fellow del Public-Private Sector Research Center (PPSRC) Miquel Rodriguez Manager del Specialist Center on PPP in Smart & Sustainable Cities (PPP for Cities) Joan Enric Ricart Academic Director del Specialist Center on PPP in Smart & Sustainable Cities (PPP for Cities) CONTENTS EXECUTIVE SUMMARY & RECOMMENDATIONS 3 COMMON CHARACTERISTICS RELATED TO THE CASES 6 CHANGES OBSERVED 7 RECOMMENDATIONS TO POLICY OFFICERS 8 STRUCTURE OF THE DOCUMENT 10 INTRODUCTION – ENERGY AND THE URBAN FUTURE 11 THE IMPORTANCE OF UNSDGS AND PUBLIC-PRIVATE PARTNERSHIPS 13 METHODOLOGY 14 SUSTAINABLE URBAN MODELS 15 1. Demand Management 17 2. Circular use of energy & clean energy 35 3. Good Practices and lessons learned 51 SUSTAINABLE & ELECTRIC TRANSPORT SYSTEM 55 1. Charging stations 57 2. Car-sharing 61 3. Public transportation networks: electrifying metro, bus and tram systems 68 4. Building an integrated strategy for electric urban transport 77 5. Good practices and lessons learned 82 ENERGY ACCESS 85 1. Rural electrification 86 2. Energy access in excluded population 92 3. Basic services: Education, healthcare and clean water 101 4. Good Practices and Lessons Learned 112 GENERAL CONCLUSIONS 115 Change 1. Impact on the mitigation of climate change and air pollution thanks to the transformation of passive into active consumers 115 Change 2. Revisiting the roles of the public sector 116 Change 3. New business models for the energy sector. 116 REFERENCES 117 EXECUTIVE SUMMARY AND RECOMMENDATIONS This report aims to provide a general outlook on the impact that the use of smart solutions is having on the consumption and production of energy in cities. The report has been structured around three areas: sustainable neighborhoods, sustainable electric urban transport and energy access by citizens. For each of these areas, a broad set of individual cases has been analyzed. For each case, we present the main purpose and provide some details about the implementation and the key characteristics (factors of success, agents involved, technologies used, outcomes and impacts), which enables us to produce a list of good practices and lessons learned for each area. The common characteristic of all the cases is the use of smart solutions, some of which foster the use of renewable energy and others that enable a more efficient use of energy. In the area of sustainable neighborhoods, ten cases show how clean and renewable energy consumption can be increased in cities. Examples of how smart solutions allow a better use of energy in cities are the implementation of a circular use of energy, and an improved use of clean energy and demand management. In the area of sustainable electric urban transport, a combination of ten cases exemplifying new trends in urban mobility show how the use of car-sharing systems or a strong public electric transport network can improve traffic flows and be more efficient in energy consumption. A strategic implementation of transport policy is also shown to be a step forward towards more sustainable mobility. Finally, the nine cases related to energy access show how the use of smart solutions and renewable energy can be crucial in satisfying the basic needs of citizens. The current section summarizes the good practices and lessons learned in each area of study, highlighting the common characteristics identified across the cases analyzed. From these characteristics, changes in behavior patterns in the energy sector can be suggested. Some of these changes, as it will be observed, may generate an opportunity to mitigate climate change in cities. Therefore, replicating and scaling up the cases analyzed in this report can have a positive impact on the global challenge of climate change. For this reason, this section also includes a series of recommendations to public officers who are willing to implement smart solutions related to the improvement of sustainable urban ecosystems. Table 1 below lists, and provides some details for, each of the 29 cases. 3 IESE Business School - Shaping the Cities of Tomorrow / ST-482-E Table 1. Detailed list of cases studied SUSTAINABLE NEIGHBOURHOODS Project City Country Summary of project Subtype Malaga Smart City Málaga Spain Development of Smart Grid technologies to foster energy Smart Grids and Energy efficiency and cut GHG emissions. Distribution Energy Smart Ithaca, NY USA Improvement of electric distribution service integrating Smart Grids and Energy Community Project renewable sources. Distribution Fernando de Noronha Fernando de Brazil Development of sustainable area through smart grids, Smart Grids and Energy Smart City Noronha renewable energy generation, smart metering, etc. Distribution; Behavioural change Sao Luiz do Paraitinga: Sao Luiz de Brazil Advanced Metering Infrastructure, distributed generation, Smart Grids and Energy "Cidade Inteligente" Paraitinga interaction with consumer, Evs, smart street lighting, etc. Distribution; Behavioural change Hammarby Sjostad Stockholm Sweden Smart neighbourhood: co-generation, renewable Behavioural change & energies, smart metering, etc. Production Villa 31 Buenos Aires Argentina Giving access to energy to Villa 31, a slum in Buenos Slum electrification Aires characterized by poor infrastructure and limited connectivity. The project includes green buildings, energy efficient services, and efficient connection to grid. City of Puerto Princesa Puerto Princesa Philippines Sustainable neighbourhood: renewable energy sources, Production & circular use efficient housing. of energy Dezhou Solar City Denzhou China Sustainable neighbourhood: integration of solar energy Production & circular use systems into new buildings. Strategy includes incentives of energy to business through policies on land-usage, tax-return, and financing. Taipei Smart City Taipei Taiwan Smart waste management, and grids; efficient and Production & circular sustainable buildings; green transport. use of energy Clichy Batignolles Paris France Smart neighbourhood: sustainable buildings, self- Production & circular sufficiency from renewable energy, efficient and green use of energy waste and water management. 4 IESE Business School - Shaping the Cities of Tomorrow / ST-482-E Table 1. Detailed list of cases studied (cont.) SUSTAINABLE TRANSPORT Project City Country Summary of project Subtype Charge & Drive Oslo Norway Charging stations around the city of Oslo. Charging stations Cambio Cologne Germany Electric carsharing system in Cologne. Carsharing Car2Go Madrid Spain Electric carsharing system in Madrid. Carsharing Autolib Paris France Electric carsharing system in Paris. As opposed to Carsharing other carsharing projects, Autolib is a standard PPP. Metrocable Medellín Colombia Fully electric funicular system that gives services to Public transport; Other citizens in slums, and that has helped to activate infrastructures the economic activity in the area surrounding the funicular. Electric BRT system Curitiba Brazil Electric BRT system in Curitiba. Public transport; BRT Metrorrey Monterrey Mexico Metro fuelled by bioenergy. Public transport; Metro BlueTram Paris France Bus/Tram system in which the bus/tram is fully Public transport; Bus/Tram electric and it charges everytime it arrives to a but stop while passengers are getting on and off. Amsterdam electric Amsterdam Netherlands Long-term strategy for the development of a Integrated strategy successful electric and sustainable transport system. BMW iCharge Forward San Francisco USA Vehicle-grid optimization and integration of renewable Behavioural change energy sources. ENERGY ACCESS Project City Country Summary of project Subtype Microgrids by SteamCo