ict for energy sectors reports - european...

October 2008

ICT for Energy Efficiency: Consultation Groups Sectors Reports

ICT for Energy Efficiency: 6 Consultation Groups –Sectors Reports

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Table of Contents

1 ICT for Energy Efficiency in Smart Distribution Networks................................ 6

2 ICT for Energy Efficiency in Manufacturing ...........................................................24

3 ICT for Smart Buildings ...................................................................................................24

4 Lighting & Photonic Technologies..............................................................................24

5 ICT for clean & efficient mobility ................................................................................24

6 ‘Restructuring’ by the innovative use of ICT..........................................................24


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1 ICT FOR ENERGY

EFFICIENCY IN SMART

DISTRIBUTION

NETWORKS

Final Report; 25 September 2008


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SUMMARY

The Power sector in the EU in 2007 has an annual turnover of about 400 b€ billion growing energy consumption to almost same amount as EU GDP growth. Global Energy demand is predicted to increase 60% over the next 30 years. Without action, the EU’s energy consumption is expected to rise by as much as 25% by 2012, which would increase EU emissions despite renewable energy targets. EU Energy dependency could rise 50 to 70% by 2030. Getting from the energy inefficient present to the energy‐optimised future will be a major challenge. To begin with, it will be expensive and costing to deploy the SmartGrids. According to the International Energy Agency, 1000 b€ by 2030 (average of 45 b€ a year representing a Capex of 11% based on 400 b€ annual turnover of the Power sector) divided equally between Generation and Transmission and Distribution will need to be invested. Some $120 billion will be invested in Transmission and $413 billion in Distribution networks and a conservative estimation of 20 b€ (based on 100 € per connection) will be spent on Data and information for Markets and regulations by 2030. Utilities allocate 2% to 6 % (6% being in exceptional years where Market openness or future SmartGrids investments would require intensive ICT) of their turnover for IT spending representing 8 b€ IT investment per year (2% of turnover) and 188 b€ by 2030 (2% of turnover), an increase of 12 b€ based on 6.7 % CAGR compared to 2008. The accelerated usage of ICT to improve Energy Efficiency will require more aggressive ICT investments by 2030 for markets and regulations estimated at 40 b€ (based on 200 € per connection) or 36 b€ (based 6% of turnover IT spending). According to Energy Insights forecasts, Total IT spending (Hardware, Services and Software) for year 2008 in Europe will be 11.5 $US Billions and will reach 13.9 $US Billions in 2011. During these 3 years CAGR (Compound Annual Growth Rate) will be 6.7%, slightly above the market average. Spending just for the Electricity sub‐industry will

Trading12%

Shared Services / Other

40%

Retail13%Generation

10%

Distribution16%

Transmission/ Pipelines

9%

Source: Energy Insights, 2008


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be about in 9.7 $US Billions in 2008. Figure 1 shows the distribution of IT spending in 2008 across the segment of the Utilities value chain. Distribution and Retail representing 29% of total IT spending is due to customer focus and market communication following the market openness of July 1st 2007.

F i g 1 : T o t a l U t i l i t i e s 2 0 0 8 , % I T S p e n d i n g b y l i n e o f b u s i n e s s

ICTs, if directed to sustainable uses, could increase energy efficiency in all areas of the economy while continuing to account for 40% of Europe’s productivity growth. ICT sector at present accounts for 2% of global emissions (in UK, ICT is responsible for up to 20% of carbon emissions generated by Government offices). This is as much as civil aviation. The real gains from green ICT will come from developing energy efficient solutions that impact the other 98% of global emissions. ICTs are a contributor to global warming, but more importantly they are the key to monitoring and mitigating its effects. Since the Kyoto Protocol was adopted in late 1997, the number of ICT users has tripled globally. ITU stressed that ICT are also part of the solution to climate change, and could help curb emissions by anywhere between 15 and 40 %, depending on the methodologies used to come up with the estimates. Smart 2020 study has estimated that Smart Technology could reduce Global emissions by 15%. Energy generation and distribution uses one third of all primary energy. Electricity generation could be made more efficient by 40% and its transport and distribution by 10%. ICT could make not only the management of power grids more efficient but also facilitate the integration of renewable energy sources. The three energy intensive sectors are: power grids‐ from production to distribution, buildings and lighting have a high potential for energy efficiency. In the near future new applications can be easily added into home and building automation to save energy. A bioclimatic house may provide energy savings up to 80 ‐ 90% compared to a conventional building. VTT Technical Research Centre of Finland has together with its European partners launched a thee‐year project to develop a platform which makes it possible to add energy saving applications into one’s home almost as simply as putting a sticker on a door Heating, cooling and lighting of buildings account for more than 40% of European energy consumption. ICT would, for instance, provide consumers real‐time updates on their energy consumption to stimulate behavioral changes. In


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Finland, this smart metering encouraged consumers to increase energy efficiency by 7%. According to the French regulator, CRE, the implementation of Smart Metering they recommended would increase supplier switch capability by factor 10, decrease non technical losses by 50% instead of 2.5%, decrease residential consumption by 5% and decrease CO2 emissions by 5% instead of 0.5%. About 20% of world electricity is used for lighting. Changing to energy efficient light bulbs could halve today’s energy consumption for lighting by 2025. Intelligent light bulbs, which automatically adjust to natural light and people’s presence will have an even greater effect. Cities are considered a priority as they consume over 75% of the world’s energy and produce 80% of its CO2 emissions. U.S. Pacific Northwest National Laboratory teamed up with regional utilities and industry partners in the year‐long demonstration project (112 homeowners who participated in the Olympic Peninsula project received new electric meters) that found advanced technologies which enable consumers to be active participants in improving power grid efficiency and reliability. The power use reduced 15 percent during key peak hours. In the future, if taken in use nationwide means important savings in building power plants and transmission lines. In addition, consumers saved on average approximately 10 percent on their electricity bills. A combination of demand response and distributed generation reduced peak distribution loads by 50 percent for days on end. Over the duration of the study, participants who responded to real‐time prices reduced peak power use by 15 percent. It is easier to save energy if one can monitor the consumption as accurately and quickly as possible. Consumers need information that helps them to make more sensible use of energy. If we can save energy, we can see the benefit directly as lower energy bills. Moreover, we will slow down the climate change, according to the Finnish Environment Institute (SYKE) who launched HEAT (Household Energy Awareness Technologies), a joint project of a team of energy, environment and technology experts, is developing a new method to measure electricity consumption and new user services for households that want to improve their energy efficiency. According to Smart 2020 report, reducing T&D losses in India’s power sector (SmartGrids like) by 30% is possible through better monitoring and management of electricity grids, first with smart meters and then by integrating more advanced ICTs into the so‐called energy internet. Smart grid technologies were the largest opportunity found in the study and could globally reduce 2.03 GtCO2e , worth $124.6 billion. The consultation group “ICT for Smart Distribution Networks” composed of leading specialists from the Technology, Communications and IT European community has been working since mid of June 2008 on the identification of


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Smart Grids ICT technologies impacting energy savings. The approach was to start working along the Energy value chain from Generation to Retailing and Users coming up with an exhaustive Portfolio of ICT measures contributing to Energy Savings (Fig.2). Once identified, a clustering and prioritization of technologies recommended where ICT investments need to increase will conclude the study.


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Infrastructure and Energy Value chain

IT spending

Technologies contributing to energy saving Impact on Energy Efficiency

ICT invest. Need to increase

Generation 10% 1. Forecasting & Portfolio management 2. Plant Predictive Maintenance 3. Aging infrastructure 4. Energy storage (electric cars ‐ all chain) 5. Adaptive generation

1. ++ Infrastructure readiness (IR) 4. +++ 5. ++

Medium

Transmission 9% 6. Network stability and network losses 7. Black‐out management 8. Restoring management 9. Aging infrastructure (network lifecycle management) 10. Forecasting and Balancing demand‐supply

6. +++ 7. IR 8. IR 9. IR 10. +++

Medium

Distribution 16% 11.Connection and integration of DG 12. Visibility of the distribution network 13. Micro‐grids 14. Aging infrastructure 15.Market communication 16.Forecasting and load balancing 17.Outage management 18.Power electronics

11. +++ 12. IR 13. +++ 14. IR 15. ++ 16. +++ 17. IR 18. +++

High

Customer Communication (Metering)

Distribution IT (EU) Retailing IT (UK)

19. Standard and regulations 20. Performance in Telecommunications 21. Interoperability 22. End to End integration 23. Value added services

19. IR 20. IR 21 IR 22. +++ 23. +++

High

Retailing 13%

24. Demand Side Management 25. Selling innovative Energy services 26. Targeted contracts, tariffs and offers 27. Incentives

24. +++ 25. +++ 26. +++ 27. +++

High

Trading 12% 28. Portfolio, forecasting and Trading 29. Market Operator Exchange Platform

28. +++ 29. ++ + High

Small and Medium Users Retailing IT

30. Customer participation in consumption 31. Demand Response Management 32. Incentives

30. +++ 31. +++ 32. +++

High

Large Users Retailing IT

33. Large customers participation in better energy management 34. Customer segmentation 35. Incentives

33. +++ 34. +++ 35. +++ Medium

Shared Services 40%

36. Business Process Outsourcing 37. Procurement Marketplace 38. e‐Energy marketplace 39. Shared Services for Infrastructure management 40. Shared Services for Customer Services

36. ++ 37. ++ 38. +++ 39. ++ 40. ++

Medium

Fig 2 : “Exhaustive” list of SmartGrids ICT technologies impacting Energy Savings along the Value Chain


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It was agreed to cluster and prioritize the ICT technologies recommended as follows: ICT clusters and priority of investments

ICT Technologies related

ICT for Smart Energy consumption processes (chapter 2)

Generation Forecasting & Portfolio management 5. Adaptive generation Customer Communication (Metering) 19. Standard and regulations 20. Performance in Telecommunications 21. Interoperability 22. End to End integration Customer to Utilities through Smart Meters 23. Metering and Energy based Value added services Retailing 24. Demand Side Management 25. Selling innovative Energy services 26. Targeted contracts, tariffs and offers 27. Incentives Trading 28. Portfolio, forecasting and Trading 29. Market Operator Exchange Platform

ICT for Smart Small and Medium Users behavior Management (Chapter 3)

30. Customer participation in consumption 31. Demand Response Management 32. Incentives

ICT for Smart Large Users behavior Management (Chapter 4)

38. eEnergy marketplace 39. Shared Services for Infrastructure management 40. Shared Services for Customer Services

ICT for Grid Infrastructure readiness (Chapter 5)

Generation 2. Plant Predictive Maintenance 3. Aging infrastructure (Plant Lifecycle Management) Transmission 7. Blackout management 8. Restoring management 9. Aging infrastructure (network lifecycle management) Distribution 12.Visibility of the distribution network 14. Aging infrastructure 17.Outage management

Breakthrough Industry Transformation (Chapter 6)

Generation and all value chain 4. Energy storage (electric cars all chain)

Fig 3 : Clustering and prioritization of ICT investment technologies contributing to Energy Savings

For each ICT technology cluster listed here above, description, current projects, measurable and quantifiable benefits and clear recommendations to stakeholders are illustrated in the next pages of the report and summarized in Fig. 4.


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ICT clusters and priority of investments

Summary of Recommendations

ICT for Smart Energy consumption processes (Chapter 2)

European funded project : Build a European Standard business case for Smart Metering comprising best practices from existing projects Regulation authorities : Time of Use Metering and Billing (real consumption) mandatory in Europe European funded project : Development of Advanced Customer Value Added Services based on Smart Metering comprising Commission stating European target : Large scale penetration of Smart Metering to reach 100% penetration in 2015 European project : Home Energy controlling box (internet box like !) collecting real time consumption of household appliances and connected to the Smart Meters European harmonization and standardization group to be setup : Interoperability standards between metering suppliersSetup of a cooperation group Utilities and Telecommunications for joint research and regulations European project : investigate the opportunity for setting up a publicly available infrastructure for smart metering (versus PLC and GPRS) Standardization groups : Open standards for interoperability across the value chain Regulatory enablement for investment across the value chain

ICT for Smart Small and Medium Users behavior Management (Chapter 3)

Standardization groups : Open standards for interoperability across the value chain Regulatory enablement for investment across the value chain

ICT for Smart Large Users behavior Management (Chapter 4)

European survey : Comprehensive survey of European Demand‐Response pilots European project : Library of case studies across diversity of business customers (schools, grocery, stores, retail stores, private sector office buildings, warehouses, etc) to being more visibility to Utilities about Demand‐Response Standardization group : Automated Demand‐Response Communication Standards for C&I buildings Develop innovative incentives and business models to share benefits on Demand‐Response across various stakeholders European project : Technical feasibility of distributed, autonomous load control

ICT for Grid Infrastructure readiness (Chapter 5)

Standardization groups : Open, agreed standards for integration of devices Regulatory enablement for investment across the value chain Interoperability standardization and market communication standards : for better coordination between Transmission and


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Distribution systems European project : Research innovative technologies for minimizing network losses and improving network stability (KPIs : FACTS, WAMS, Interoperability and integration standards : between technical SCADA systems and Business management systems

Breakthrough Industry Transformation (Chapter 6)

Regulation : promote the advancement of commercial PHEV Regulation : Promote renewable energy programs around carsRegulation : Push the creation of Time of use rate plans as incentive for PHEV Research : Contribute in funding pilot to study and field test PHEV research : create real‐time pan‐European ubiquitous micro‐mini billing infrastructure for PHEV (mobile payments) Regulatory : Change the regulatory framework to allow pan‐European ubiquitous micro‐payments and engage Telecoms and Banking Go to Market : Marketing campaign for PHEV Go to Market : Assistance in developing energy management capabilities for end users Go to Market : create ICT enabled energy efficiency standard indicators

Fig 4 : Clustering and prioritization of ICT investment technologies contributing to Energy Savings We recommend to invest in the following technologies:

• ICT Studies, Business Cases, Surveys, Projects best practices, Go to Market required

• Customer Communications (Smart Metering) • Demand Side and Demand Response Management and Real Time Pricing • Home Energy Controlling box (internet box like) • “Losses free” and Readiness of Infrastructure Network to connect Large

scale DG and RES • ICT readiness for “Mobile Electricity Consumers” (eg PHEV)

By implementing these recommendations, we estimate the significant benefits to be achieved (up to). This will depend on the stage of each EU country as well as the success to combine smart processes (like Demand response) and smart technologies (like Smart Meters) :

• Peak load shaving : up to 50% • Consumer energy consumption reduction : up to 25% • Network losses reduction : up to 50%


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ICT Areas

Custering and Prioritization of Recommendations

ICT for Smart Energy consumption processes ICT for Smart Small and Medium Users behavior Management ICT for Smart Large Users behavior Management ICT for Grid Infrastructure readiness ICT for Breakthrough Industry Transformation

ICT Studies, Business Cases, Surveys, Projects best practices, Go to Market required European funded project : Build a European Standard business case for Smart Metering comprising best practices from existing projects Library of case studies across diversity of business customers (schools, grocery, stores, retail stores, private sector office buildings, warehouses, etc) to being more visibility to Utilities about Demand‐Response (EU project) Assistance in developing energy management capabilities for end users Create ICT enabled energy efficiency standard indicators Comprehensive survey of European Demand‐Response pilots (EU survey) Customer Communications (Smart Metering) European Regulation : Time of Use Metering and Billing (real consumption) mandatory in Europe Large scale penetration of Smart Metering to reach 100% penetration in 2015 Incentives for investments Standardization European harmonization and standardization group to be setup : Interoperability open standards between metering suppliers and end‐to‐end from customers to Utilities Telecom and Utilities Setup joint cooperation between Utilities Telecommunications Setup up a publicly available infrastructure for smart metering (versus PLC and GPRS) (European project) Demand Side and Demand Response Management and Real Time Princing Standardization Automated Demand‐Response Communication Standards for C&I buildings Incentives Develop innovative incentives and business models to share benefits on Demand‐Response across various stakeholders R&D Technical feasibility of distributed, autonomous load control Home Energy Controlling box (internet box like) Collecting real time consumption of household appliances and connected to the Smart Meters (European project) “Losses free” and Readiness of Infrastructure Network to connect Large scale DG and RES I. European project : Research innovative technologies for minimizing network losses and improving network stability (KPIs : FACTS, WAMS, … European project : large scale connection of DG and RES to the Grid by 2020 (considering 20 to 50 % renewable capacity connected to the Grid) ICT readiness for “Mobile Electricity Consumers” (eg PHEV) Regulation I. promote the advancement of commercial PHEV Promote renewable energy programs around cars Push the creation of Time of use rate plans as incentive for PHEV Change the regulatory framework to allow pan‐European ubiquitous micro‐payments and engage Telecoms and Banking

Fig 5 : Clustering and prioritization of recommendations


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ICT FOR SMART ENERGY CONSUMPTION PROCESSES

ICT For Smart Metering Operations (Ami)

End to End integrated Value Added Services from Utilities to Customers through Smart Metering

In Europe, system standards for meters are determined by a number of over‐arching directives and industry specifications. Of particular importance, the Measuring Instruments Directive (MID, 2004) aims to regulate metering products through harmony of technical standards based on the ‘essential requirements’, which cover areas such as accuracy, durability, and security. The Directive will allow compliant goods to be awarded the ‘CE marking’, giving them free movement throughout the European Community. As far as smart meters are concerned, MID sets the baseline for required quality standards and regulations, yet it does not mandate specific technologies or the functionality to be included within the meter. The meter functionality and the applications it will use have a major impact on the cost of the meter and the communications infrastructure required to support large sale implementation. Smart Meters and AMI Systems provide a much higher level of precision regarding the electricity/gas/heat/water consumption. This information is available as electronic data and can be forwarded by the meter to the energy company:

• Via a gateway to the customer and visualized on a display or fed into an onsite Energy Management Systems that optimize efficient energy consumption on the premise; this data exchange happens in real time.

• Via a communication network to the energy company that will now have a complete overview on the consumption and consumption behavior of all connected customer(s) (premises); this data exchange is likely to be on a daily basis with an option for more frequent updates.

Benefits

• Sending the customer information on commodity prices or consumption advice with the expectation that the customer adjusts his consumption according to the price situation, or even adjusts his consumption behavior irrespective of pricing

• Control of the use of certain appliances at the customers site, provided that a Home Automation Network and electronic interfaces at the appliance allow for a communication access via the meter and its gateway to the appliance

• Disconnection or partial load reduction at the customer premises According to CRE “Commission de Regulation de l’Energie”, the primary

benefits of Smart Metering are:


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• Improved Competition through more competitive tariffs • Supplier switching where Smart Metering is deployed (50% instead of 5%) • Decrease of Non Technical losses • Non Technical Losses avoided (50% instead of 2.5%) • Decrease of Residential Consumption • Up to 5% • Peak Shaving avoiding unnecessary investments • Peak Shaving Consumption Reduction: 1 to 2% • Peak Shaving avoiding use of non optimal resources • Peak Hours per Year: 427 Hours • Decrease of CO2 Emissions • CO2 Savings: From 0,5% to 5% In addition the UK Government BERR report (Impact Assessment of Smart

Metering Roll Out for Domestic and Small Businesses, April 2008) indicates smart metering solutions can provide further benefits through: • Accurate billing of customers for energy used • Improved energy network management allowing better informed

investment decisions • The facilitation of wider policy goals such as policy on energy efficiency

measures • Improved customer services in reducing complaints • Reduction in costs of Pre‐payment meters

Norway (Research project) : Market Based Demand Response Project (2005‐

2008) performed by SINTEF Energy Research with the Norvegian TSO (Statnett) as responsible partner on behalf of the Research Council of During the pilot project, the customers with the new power product reduced their consumption by 24.5% in quarter 1 of 2006, while customers with spot price power products and standard power products increased their consumption by 10.4% and 7.7% respectively in the same period

Britain : For residential and small businesses, the benefit from radical reform would lead to 3.4% in Energy/capacity savings and 1% carbon savings (British Gas cost benefit – undertaken for British Gas by Frontier Economics)

US (development and implementation project) :

Consumers Energy’s AMI (Advanced Metering Infrastructure) and MDUS (Meter Data Unification and Synchronization System) programme : CMS is servicing 1.8 Million customers in US. AMI and the Balanced Energy Initiative are also aligned with Michigan’s 21st Century Energy Plan, issued in January by the then‐chairman of the Michigan Public Service Commission. A well designed AMI initiative offers a unique opportunity to provide tangible benefits for CMS’s customers. By providing energy usage information, load management capabilities and demand response programmes,


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customers are expected to become more efficient in managing their energy usage. By sending appropriate pricing signals, the AMI initiative will provide an opportunity for residential customers to reduce their power energy usage during high cost, critical peak demand periods. To promote AMI’s load management capabilities, customers will be able to volunteer to take part in an air conditioning load cycling programme, starting in 2010. This programme will allow the utilities to cycle their air conditioners on and off, reducing usage on peak demand days and shifting load to cooler evening hours when energy costs are lower. For demand response, programmes, customers will have the opportunity to use programmable, communicating thermostats, which may be adjusted remotely for load reduction during peak demand periods. AMI’s two‐way communications system will connect thermostats to electric smart meters, which in turn will send data to Consumers Energy’s computer systems

Recommendations

Data to be investigated : There is many businesses cases available, per utility or meeting operator. What is missing is a European typical business case for Smart metering that could be a benchmark of a significant number of business cases focusing on “energy savings achieved due to the large deployment of Smart meters in Europe”.

ICT recommendations :

Regulation: “We cannot manage what we cannot measure frequently”: Decision for mandatory Time of Use Metering and Billing (calculated by IT systems) by the regulating authorities.

Research : Demand Side and Demand Response Management Research algorithms combined with AMI taking into account the majority of countries and cases in EU member states for Residential and Commercial/Industrial customers.

Multi-disciplinary Value Added Services (including Multi‐media) benefiting from the technology deployment of smart meters.

Development : of advanced Standard AMI scenarios (for instance pre‐payment and multi‐metering energy saving decision support) that communicate and integrated seamlessly in the end‐to‐end value chain

Go To Market : Large scale deployment of End to End AMI solution across EU member states with a dynamic scenario leading to 100% Smart Metering deployment in 2020.

Interoperability Of Smart Metering Solutions

While many energy network operators can deploy ICT primarily for operational cost savings, they also have to ensure they capture the full potential of the


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strategic and regulatory benefits in order to cover the cost of this technology. Technology advancements and the availability of infrastructure features at lower prices create opportunities for expanded deployment, value‐added services and potential new revenue streams for stakeholders such as Network Operators, Suppliers, Value Added Service providers and Consumers. In order to offer an open, flexible and future oriented meter solutions, new standards for integrating the components of the ICT Infrastructure and ensure interoperability among these components, have to be developed. The large scale adoption of smartmetering solutions, potentially covering electricity, gas and any other network service and commodity, is today hampered by the lack of widely accepted open standards, capable of guaranteeing the interoperability of systems and devices in the metering systems produced by different manufacturers. Benefits Interoperability will create opportunities and reduce cost in the IT infrastructure that enables the applications that finally will lead to energy savings. Data available about AMI communication standards can be found on:

• DLMS User Association ‐ http://www.dlms.com/ • Energy business Information eXchange ‐ http://www.ebix.org/ • IEC TC57 ‐ http://www.iec.ch/ • BDEW (MUC) ‐ http://www.m‐u‐c.org/index.htm

ENBIN (NTA8130 + DSMR) – www.energiened.nl

Recommendations

• Interoperability standards between metering suppliers to facilitate supplier switch and the quick deployment of Smart Meters across EU member states must be considered and evaluated. The relation between metering solutions must be investigated as well as the possible gaps: interfaces where no standards or initiatives yet exist. • The possibility for European harmonization of the initiatives and resulting

standards must be investigated. It is very important that all stakeholders involved in the standards mentioned above participate in this harmonization activity. The EC call “ENERGY.2008.7.1.1: Open‐access Standard for Smart Multi‐Metering Services” is a first step, but the projects resulting from that call must still result in unique international solutions and furthermore the scope of standardisation should be wider than Smart Multi‐Metering systems.

• A European harmonisation effort should be initiated to come to unique international standards to solve the interoperability problem. In this effort major players in the utility industry, the IT manufacturers and Research/Test institutes will work together on these standards.

• The work already undertaken on standards and interoperability has to be published, so new markets can use existing solutions.


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ICT FOR SMART METERING COMMUNICATIONS

Communications for Smart Metering brings its own challenges in providing cost effective, reliable communications to many millions of premises within any country or region. Europe has been successful in promoting competition in the telecommunications sector and there are now numerous competing telecommunications operators and equipment vendors offering an increasing range of fixed and mobile technologies and services. Smart Metering will involve the routine collection of usage and system data from individual customer homes. Solutions will need to consider the costs and benefits of using specific technologies and third party networks for each leg of the communications path. It is clear from the many smartmetering trials that are taking place around the world that there is no single technology or service mechanism that can deliver large sale implementation of smartmetering. Rather, there will be a mixture of technologies involved. The key technologies will be:

• internet services through public service broadband access • Power Line Communications (PLC) provides direct access to the electricity

meter and can support broadband connectivity • The many wireless technologies, GSM/GPRS. 3G, Wimax • Optical fibre in enabling increased broadband capability and providing

wide area networking • CAT5, WiFi, Bluetooth, Zigbee, and Homeplug in providing connectivity in

the customer premises for control of appliances and connection to gas and water meters

The key factors which will influence the communications solution are likely to be:

• The level of telecommunications competition in the region of the implementation, effective competition increases choice and reduces prices

• The roll out mechanism for the smartmetering solution • The functionality requirements of the meter, more complexity in the

application means higher bandwidth communications • Which part of the energy value chain takes responsibility for the meter

The ability to future proof chosen communication technologies. The smartmeter business case will be built on a long term view, maybe 10 – 15 years whilst communication technologies are changing very rapidly and may have a much shorter lifecycle Recommendations

• A research and regulation initiative should focus on the cooperation between the Utility and Telecom sector in order to make mutual use of all available communication networks for TV, radio, internet, telephone and smartmetering solutions.


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• Investigations of the general cost savings and specific energy savings by sharing multi purpose communication networks among several content providers. For the energy industry for example, the benefits of avoiding specific utility smartmetering solutions for wireless (eg GPRS) or wired (eg PLC) by making use of a publicly available infrastructure should be identified

• Work should be instigated in developing open standard physical and electrical interfaces in the energy meter to enable the use of any telecommunication technology. The meter has a long asset life compared to the shorter service life of communication technologies and should be capable of accepting any technical solution.

• Interoperability standards between metering suppliers to facilitate supplier switch and the quick deployment of Smart Meters across EU member states must be considered and evaluated. Interoperability will help backend Billing, Commercial and Asset Management system being independent of Metering suppliers and will help investments to focus on the development of Value Added Services rather than duplication of effort due to proprietary “fat” metering systems.

Benefits

The communications solution used in any large scale implementation of Smart Metering should be transparent in respect of the metering data or any value added services or data to be transported to and from the customer premises. By addressing the recommendations outlined above will it be possible to drive ‘best value’ in the development of a business case and allow introduction of ‘best practices’ for the communications technologies to be used for any specific implementation. Such actions will speed up the introduction of Smart Metering and the subsequent energy and environmental benefits whilst ensuring communications solutions can be future proofed to continue to deliver value across the lifetime of the meter assets.

ICT For Demand Side Management

The above area has been addressed through the use of ICT. Specifically:

• Markets, • Products and Services, • TOU tariffs Evidence in support of this use of ICT comes from the research project run by

GRIDWISE in the Olympic Peninsula project, USA. The project ran during 2007 and the results were published in January 2008. Gridwise is an organization sponsored by the US Department of Energy (DoE). It is developing a number of trials and research projects to test technologies and the applicability of products, services and processes in support


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of Smart Grids. The Olympic Peninsula project ran for 12 months and investigated the impact of 5 minute energy price signals combined with smart in‐home appliances, “intelligent agents” and network operations in 120 residential energy homes. Some of the results from the project are:

• 15% Peak Demand reduction over a 12 mnth period. • 50% peak reduction over “significant” periods • Technology integration proven

Recommendation for ICT investment required (regulation, Research, Development, GTM):

• Open standards for interoperability across multiple platforms and device types.

For more information please see reference 1

All of the above areas have been addressed through the use of ICT. Specifically:

• Monitoring and Control of the MV and LV Networks. • Integration of new devices with existing SCADA, GIS, Asset Repositories,

Outage Management. Evidence in support of this use of ICT comes from the implementation at DONG

Energy, Denmark. A cost benefits analysis was undertaken in 2006. Design and implementation of the solution began in 2007 and initial functions are now live in parts of the Distribution network. DONG Energy, Denmark – case study (2007) – the following are projections for the solution currently being implemented: • 25%‐50% reduction in NDE (~CML) • 35% reduction in fault search time • Up to 90% reduction in Network Reinforcement costs • Improved operations (safe overloading) • Improved Network Planning • Improved Customer Service

Non Delivered Energy (NDE) and Customer Minutes Lost (CML) are measurements of the availability of supply. CML is the average number of minutes that end customers were without energy supply over a 12 month period. NDE puts a value on the time that energy was not available to the customer base. That value is a combination of several factors, including CMLs and the value to the economy of the kWh not delivered. This can help show the value of Smart Grids to society and the European / National economy.


1 http://gridwise.pnl.gov/docs/op_project_final_report_pnnl17167.pdf


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• Open, agreed standards for integration of devices • Enablement for investment across the value chain – this may require

harmonization of some regulatory frameworks (e.g. benefits realized by Distribution and Retail)

For more information please see reference 2.

ICT For Targeted Contracts, Tariffs And Offers


• Markets, • Products and Services, • TOU tariffs

Evidence in support of this use of ICT comes from the Ontario ToU trials, Canada 2006/07. This project trialed Interval Metering with Time of Use tariffs with 375 residential customers. The objective was to investigate the impact of variable energy rates through out the day on energy consumption. This included the definition of Critical Peak periods. The results included :

• 6% average energy conservation effect • Critical Peak load shifting (summer) 5.7% ‐ 25.4% (indicative)


• With Interval meters now installed in many European countries the use of Tou tariffs on a large scale should be investigated.


ICT For Portfolio Management, Forecasting And Balancing

The applications for Portfolimanagement and EnergyDataManagement / Balancing do not contribute directly to the reduction of energy consumption and CO2, but they are basic infrastructure tools for the management of smart grids and a liberalized energy market; they can be seen as a kind of enabler for smart grids. With the deployment of smart grids these applications will have to cope with a tremendous growth of datacommunication, datastorage and (new) processing. Some examples for the growth of data and communication:

2 ftp://ftp.software.ibm.com/software/solutions/pdfs/ODC03017‐USEN‐00.pdf

3 http://www.oeb.gov.on.ca/documents/cases/EB‐2004‐0205/smartpricepilot/OSPP%20Final%20Report%20‐%20Final070726.pdf


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• At a german utility (about 3.5 Mio Meteringpoints electricity, about 10% supplied by external retailers) the amount of datastorage for marketcommunication (compliance‐ and securityconform wich enforces redundancy) in todays situation is about 2 Terrabytes per year, with up to 50000 communicationprocesses in peak per day. This amount will rise in 10/2009 times 5‐10 due to legislation when the associated supplier has to be handled in the identical way then an external retailer from the distributors point of view (today there is an exception in the german market, that associated suppliers can be dealt in an easier way ‐ “two contract model”). Above figures comprise the processes of supplier switching, grid usuage billing, meterdata‐ and masterdataexchange.

• The overall datavolume for metering will rise in maximum up to faktor 100, due the future use of time series instead of yearly measurements for residential customers (depending on the used time interval). This is due to the reason that e.g. DR‐programms, DSM as a way to reduce balancing power, customerindividual products etc. in a net of highly volatile generation can not be used with only a few standardprofiles as today. (The factor is derived from the ratio 1:100 ‐ industrial:residential customers in germany and the fact that the storage volume for residential customers with yearly meterings is neglectible in this case)

• A finding from Gardner Group: • Data Management: Smart Grid will be the largest increase in data any utility has ever

seen; the preliminary estimate at one utility is that the smart grid will generate 22 gigabytes of data each day from their 2 million customers. Just collecting the data is useless – knowing tomorrow what happened yesterday on the grid does not help operations. Data management has to start at the initial reception of the data, reviewing it for events that should trigger alarms into outage management systems and other real‐time systems, then and only then, should normal data processing start. Storing over 11 Gigabytes a day per million customers is not typically useful, so a data storage and roll off plan is going to be critical to managing the flood of data. Most utilities are not ready to handle this volume of data. For a utility with 5 million customers, they will have more data from their distribution grid, thanWal‐Mart gets from all of their stores andWal‐Mart manages the world’s largest data warehouse.

Example requirements these applications will have to face with smart distribution networks

• Portfolio management of the future has not only to take care of midterm and longterm requirements but has also to consider short term (at least day ahead) prognosis due to the high volatile generation of RES esp. wind energy and PV to adjust their scheduling (this is e.g. the case in Germany where the retailers have to buy today a fixed quote of RES due to EEG‐legislation. This energy is today supplied by the TSO in bands to the retailer but in the future ‐ already so with wind energy ‐ according to actual (near time) time series


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• EDM‐Systems have to visualize the possibilities for load shedding or the possibilities for micro storage to reduce the amount of balancing energy. This has to be done in a regional context and also has to consider commercial / contractual data

• The potential for load shedding today (Germany) is rarely used and not transparent. There is a very costly prequalifying process in place.

• The potential in germany at the chemical, paper and metal‐industry is 2 GW

• The potential in germany in other industries (cold storage, food, retail, household…) is 1,5 GW

• There is only one virtual balancing energy power plant in place: Saar Energie AG

• In terms of virtual power plants (generation and balancing energy) and virtual storage facilities (microstorage) there are a lot of requirements for data communication and aggregation and also the relation to commercial/contractual data. This includes requirements for logical and technical communication standards, as well as a common datamodell and a common understanding of the relevant (interoperable) business processes.

• The requirements for the use of EDM for forcasting rise due to the high volatility of esp. wind‐, PV‐ and microCHP‐energy. To improve forecasting also the weatherforecasting has to be involved. As an example there is already a statistical online‐modell (based on 111 representative wind‐parks in germany) from ISET/Kassel in place that supports the TSO’s in germany with realtime data on windenergy

• With PHEV there are also a lot of new requirements for balancing and forecasting with a regional impact

In the meantime there are a lot of studies and pilotprojects in place that to a certain extend cover individual ICT requirements related to Portfoliomanagement and EDM/Balancing e.g.

• Smartgrids • Smartgrids/SmartHouse • eEnergy and the 6 model‐region‐projects • CRISP • microgrids • BUSMOD • smart2020

But there is no comprehensive view of the overall requirements related to these topics to show the softwarevendors the roadmap to follow. So we suggest to do a study to collect all these requirements from existing studys / thematic networks and rund up with new requirements to set up a modell and roadmap for Portfoliomanagement, EDM/Balancing and forecasting in terms of


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• market modell (participiants and their relations, relevant business processes)

• communication modell (technical and organizational) • Interoperability • future IT‐storage capacities, communication‐volume and processing

power ‐ assessment on grid computing • functional requirements • system integration (to reduce interfaces and to guarantee consistency and

also to integrate commercial/contractual data)) • data modell (based on CIM/IEC and ebix) • required (additional or harmonized) standardisation and regulation • data aggregation and data lifecycle

ICT For Smart Small And Medium User Behavior Management


• All Customer Service, Billing, Product and Service, and other residential energy processes and systems.

Evidence in support of this use of ICT comes from the IBM Research report – Plugging in the consumer (2007). This includes a survey of 1894 energy consuming households from six countries: Germany, Netherlands, UK, USA, Japan, Australia. The results include a number of points relevant to Smart Grids and the future use of energy:

• Growing demand for security of supply (energy always available) • Energy consumers are moving toward a more participative model for

energy consumption (import and export) • Price and environment are the main factors in changing consumption

patterns • 62% of respondents would like to generate their own power if they could

sell it back to the grid • 57% would like to generate their own power if it resulted in cost

reductions of 50% ‐ this drops to a 32% share if energy price difference is below 10%




For more information please see reference 4.

4 http://www‐935.ibm.com/services/us/index.wss/ibvstudy/gbs/a1029014


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ICT For Large Users Behavior Management

Process and technology description (Case of Industrial and Commercial Buildings)

Energy users can contribute to make distribution electricity grids smart by becoming “reactive” and participate to demand‐response (DR) programs, i.e. respond in real‐time to grid conditions by shedding loads (lights, machines, air conditioning… ) or start on‐site generation in response to an emergency condition (reliability based DR) or “contingency programs”) or to wholesale market conditions (market‐based DR). Two types of DR exist : Price‐based DR ( Real‐Time pricing(RTP), critical‐peak pricing (CPP) and Time of Use Tariffs (ToU) ) and Incentive based DR (pay participating customers to reduce their loads) Very large customers have been participating to DR for 15‐20 years. Response was “manual” and could only be afforded when resulted shed capacity was significant More recently, ICT have been developed to the point of allowing larger portions of the demand‐side infrastructure to function as an integrated system element, with technologies to automate the process of DR (detect the need for load shedding, communicate the demand to participating users, automate load shedding, and verify and measure compliance with DR programs). More specifically, technologies “beyond the smart meter” that can support interactive customers include:

• Energy management tools to understand ones consumption patterns in substantial details, to support awareness of ones capabilities to shift of curtail usage, to enable load prioritization schemes (non automated demand‐response)

• Integrated platforms for demandresponse, which integrates external environmental factors (pricing signals, weather data, curtailment requests,, etc.) with electrical equipments in a facility (lighting system, HVAC system, machines, distributed generation, etc.). Typically, internet standards are required to connect to external data sources, while building automation and metering integration provide connectivity with electrical equipment within the premises. Intelligence – e.g. if/then rules ‐ can be implemented on top of this platform to automate equipment reaction to external signals.

• Intelligent equipment and appliances that are designed once and manufactured ready to respond autonomously to DR signals. This model would be particularly suitable for appliances that are manufactured in high number and where significant economies of scales could be achieved.


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With such technologies, the case for having medium size industrial and commercial customers participate to DR could be viable, suggesting a large unused potential for DR. Data available5 DR benefits are well documented. They consist mainly of:

• Cost reduction (RTP programs achieve load reductions equal to 12‐33% of participants’ peak demand [2]; incorporating demand response into the US market with dynamic pricing would lead to $10 billion to $15 billion savings per year [6]).

• Electricity Price reduction • Reliability benefits

Less data exist regarding the benefits of ICT‐based tools to support DR. Below is a list of relevant work and studies. In RTP pilots, substantial fragment do not participate because they lack flexibility and technical expertise, and there is a tendency to forget about electricity prices [2], which support the case for energy management systems and automated DR. Linking lighting and air conditioning systems to RTP achieved cost and demand reduction up to 42% during peak hours. (Lawrence Berkeley Labs Pilot) Integrated Demand‐Response Platform for lighting in an industrial facility enabled 20‐30 % shedding during peak usage in some areas of the facility and 50 % on second‐shift and weekends without adversely affecting operations at all. [7]

[1] “benefits of DR in electricity markets and recommendations for achieving them”, US Department of Energy – Feb 2006 ‐ http://eetd.lbl.gov/ea/EMS/reports/congress-1252d.pdf

[2] “A survey of utility experience with Real Time Pricing , Lawrence Berkeley national Lab ‐ Dec 2004 ‐ http://repositories.cdlib.org/lbnl/LBNL-54238/

[3] Pacific Northwest GridWise Testbed demonstration project Part I – “Peninsula Olympic Project” – GridWise/PNNL ‐ October 2007

[4] Pacific Northwest GridWise Testbed demonstration project Part II. “GridFrienlyTM Appliance Project” ‐ GridWise/PNNL ‐ October 2007

[5] EU‐DEEP project http://www.eu-deep.com/

[6] http://www.iea.org/textbase/nppdf/free/2000/powertochoose_2003.pdf

[7] Tridium pilot at Boeing http://www.tridium.com/galleries/case-studies-gallery/CS-Boeing.pdf

[8] Efflocom project http://www.energy.sintef.no/prosjekt/EFFLOCOM/index.asp


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technical feasibility of frequency responsive appliances (i.e. that adjust automatically when local measured grid frequency fell below a given threshold) has been established with residential customers (but should be applicable to C&I customers as well) with no inconvenience perceived by the customers Other relevant projects include EFFLOCOM (2002‐2004) [8], EU‐DEEP (first results will available in 2009 [5], study by VTT Finland (in Finnish). Recommendations for Data to be investigated (investment required) Comprehensive survey of European DR Pilots (cf. UD DoE study [1]) Library of DR case study across diversity of business customers to help utility customers see how DR can work under specific needs and type of equipments Recommendations for ICT investment required (Regulation, Research, Development, Go To Market) Open Communication Standards for Automated Demand Response for C&I buildings Innovative Incentives and Business models to share benefits of DR across various stakeholders via some ICT mechanisms Study grid‐wide benefits and advisability of frequency responsive appliances Business case studies for technology tools described above (benefits of DR vs. benefits of automated DR is not available yet)

ICT FOR GRID INFRASTRUCTURE READINESS

ICT For Asset Management

It is a fact that the European transmission network is rapidly ageing. It has been estimated that within the next 30 years more that 750 b€ will need to be invested for the European power sector, among which more than 90 b€ should be dedicated to the transmission system and more that 300 b€ to the distribution sectors. A great majority of the population lies in the range of equipment age across the design technical end‐of‐life. Managing an ageing system on one hand with increased requirements in terms of system response to perturbations, system flexibility and robustness is a challenge which cannot be addressed without the extensive use of modern technologies, such as ICT.

ICT Process And Technology Description


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The present management of the assets of transmission and distribution systems already rely on the wide use of ICT. • Tele‐measures and tele‐controls (Voltages, Currents, frequencies, active and reactive

power, topology etc.) are normally available in central and local control centres for the on‐line management of the system configuration. Very often these systems (based on SCADA technologies) are equipped with operation aid decision tools, such as state estimation, power flow calculation, static security analysis and simulation of emergencies, voltage stability analysis and calculation of collapse margins, power exchange capabilities calculations, congestion forecasts, voltage profiles optimisation, calculations of short circuit levels at substation and line levels, verification of protection settings and coordination etc.

• Systems are also available for the data collection and analysis (often off‐line) for the condition monitoring of main equipment and for the planning and control of condition assessment and maintenance operations. These are based on local sensors (e.g. oil temperature, gas pressure, leakage currents) that measure physical quantities (called dia gnostic indicators) that can be related, by means of adequate ageing models, to the state of degradation of the components and that are used to trigger maintenance operations, possibly before any failure occurs.

Data available

Near all TSOs worldwide in cooperation with research centres are developing (with poor coordination and dispersion of resources) their own projects related to the use of ICT for the network and asset management. Among the most important projects presently on‐going or in the pipe we can mention: US – EPRI IntelliGrid initiative6: an open‐standards based architecture for integrating the data communications networks and intelligent equipment needed to support the power delivery system of the future, providing methods, tools, best practices and recommendations for specifying “intelligent” systems in such a way as to promote interoperability, flexibility, effective security and data system management, expandability. Specific projects are contemplated, and among others:

• The integration of substation systems by means of IEC 61850 protocol • The setting up of station monitoring systems (antenna array) to locate

concentrated defects in the substation

6 EPRI contribution to VLPGO – Rome June 2008


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• The use of low‐cost distributed sensors for equipment monitoring and problem identification

• The extensive use of Phase Monitoring Units to enhance the system visibility and to anticipate the effects of system disturbances

• The development of monitoring systems for the automatic fault detection JP – TEPCO Initiatives7: R&D initiatives focused on the following topics

• Collection and data sharing from substation on all voltage levels (EHV, HV, MV)

• Adaptative protection, wide area protection,, wide area monitoring and security assessment

• Application of tools to minimise the transmission losses based on real time SCADA

• Platform and architecture for integration IN‐ Power Grid Initiatives8: the Indian initiatives for the enhancement of the HV network intelligence is focused on the use of the PMU technology. In this respect, initiatives are taken in the following fields:

• Installation of PMUs in strategic locations and specification for a continuous up‐to‐date approach

• Use of PMUs to validate off‐line power system models used at present • Develop visualization software for a better visibility of the network and

on‐line disturbance monitoring; • Design and implement tools for data storage, retrieval and analysis • Enhance system observability and understanding • Development of remedial action scheme based on adaptative islanding, self

healingness approach and improved protection BR – ONS initiatives9: the Brazilian TSO, in view of the implementation of a Smart Grids approach, focuses on the following points:

• Information management: integration of data bases, upgrading of EMS systems, enhancement of the decision making operation tools

• Sensors and controls: renewal of remote transmission units, implementation of Wide Area synchrophasor measuring systems, and improvement of the quality of operational measurements

• Data communication: improvement in TLC and migration to IP‐based networks

IT – TERNA initiatives: The Italian TSO has a program of continuous development of its system and asset management programmes; the approach focuses on monitoring, defence plans and advanced dispatching techniques. Among the most recent initiatives we can mention:

7 TEPCO contribution to VLPGO – Rome June 2008 8 PowerGrid contribution to VLPGO – Rome – June 2008 9 Based on contribution to VLPGO – Rome – June 2008


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• As far as defence plans are considered, the approach is based on adaptative systems

• As far as monitoring, the keyword is WAMS with particular reference to PMU dissemination and experience gathering

• As far as operation is concerned, to goal is to develop and implement tools that will allow to run the system in security preventing dangerous conditions with 8 hours advance notice by means of real time control and advanced dispatching concepts;

• Several asset management initiatives are well proven as stabilised such as the system called MBI (maintenance and Business Intelligence) or the dynamic simulator of the electrical network behaviour (SICRE)

UK ‐ National Grid initiatives:

• Advanced sensors that measure system performance and asset conditions • Advanced grid control devices such as fast switches that support reliability

and flexible network operations • Diagnostic software (algorithms that extract performances and

maintenance trends for equipment and systems) • Pattern recognition • Power stabilisation software • Open architecture • Wide Area Network (wireless: WiMax, GSM etc. – wired: PLC, Ethernet

over fibre etc.) • Two‐way real time communications

Equipment manufacturers: propose on the market several tools for the system and components asset management, as an example we mention:

• Advanced protection and monitoring tools (adaptative protection by using logical functions, wide area protection, wide area monitoring with steady state and dynamic security assessment)

• Systems for the on‐line observability of the system state: detection of power swings and analysis of counter‐measures, dynamic load flow control, stability observation, line utilisation increase, fault analysis

Recommendations:

The recent European Coordination action ERMInE (Electricity Research Road Map IN Europe) has put great emphasis on this aspect as shown in the following figure, representing the ranking of the research priorities for the next 25 years. All four top‐priority R&D subjects, weighted by means of a multi‐criteria approach to reach the goals of the European Green Paper (i.e. competitiveness, sustainability, security of supply), are linked with ICT: automation and control, simulation tools, ICT technologies and diagnostic and monitoring tools are all part of the above approach. More specifically, the European SmartGrids technological Platform has pointed out the top priorities for the transmission system that are completely in line with


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the approach presented here; among them, we mention the priorities which are more closely linked with the use of ICT:

• Real time condition monitoring • Flow control devices • Losses optimisation • Investment decision tools • Carbon‐costed asset management • New protection principles • Cyber security protection

ICT For Visibility Of The Distribution Network, Aging Infrastructure And Outage Management

All of the above areas have been addressed through the use of ICT. Specifically:

• Monitoring and Control of the MV and LV Networks. • Integration of new devices with existing SCADA, GIS, Asset Repositories,

Outage Management. Evidence in support of this use of ICT comes from the implementation at DONG Energy, Denmark. A cost benefits analysis was undertaken in 2006. Design and implementation of the solution began in 2007 and initial functions are now live in parts of the Distribution network. DONG Energy, Denmark – case study (2007) – the following are projections for the solution currently being implemented:

• 25%‐50% reduction in NDE (~CML) • 35% reduction in fault search time • Up to 90% reduction in Network Reinforcement costs • Improved operations (safe overloading) • Improved Network Planning • Improved Customer Service

Non Delivered Energy (NDE) and Customer Minutes Lost (CML) are measurements of the availability of supply. CML is the average number of minutes that end customers were without energy supply over a 12 month period. NDE puts a value on the time that energy was not available to the customer base. That value is a combination of several factors, including CMLs and the value to the economy of the kWh not delivered. This can help show the value of Smart Grids to society and the European / National economy. Recommendation for ICT investment required (regulation, Research, Development, GTM):




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ICT For Network Stability

Some possible developments expected at distribution system level may have a major impact on the network stability of the whole system. Active Networks, Micro grids, and Virtual Power Plants may represent a possibility towards which the today’s distribution systems might evolve in presence of Distributed Generation. Also a hybrid combination of these might result. The scope of these developments is related to the need for ensuring adequate levels of reliability and security of supply in presence of increased DG penetration. In all three system developments, modern control technologies may result to be very useful. Particularly, soft controllers based on ICT (Information & Communication Technology) and hard controllers based on power electronic devices like FACTS (Flexible AC Transmission System) may support the DSO controlling the system. These technologies may prove helpful to TSOs too. ICT‐based technologies can be used to improve the communication between a DSO and a TSO and provide the DSO with more advanced monitoring tools (like SCADA). Power electronics‐based devices like FACTS are able to control electrical parameters like the real and reactive power flows and the voltage amplitude at network nodes in a very smooth, fast way. FACTS devices are proven technologies for a flexible transmission system control. At distribution level the equivalent devices are known as D‐FACTS and may be useful for a better control of power flows, voltage level, power quality issues in distribution grids. Other advanced network controllers are given by WAMS (Wide Area Measurement System). These technologies include soft (ICT) and hard (PMU, Phasor Measurement Unit) tools. PMUs are devices able to remotely monitor phase voltages and currents and the corresponding angles at network nodes. Each phasor is measured and coupled with a very precise time stamp derived from a GPS (Global Positioning System) satellite. WAMS systems are already used to control transmission systems.

ICT For Active Networks

Active Networks are foreseen as probable evolution of today’s distribution networks. These systems, which are passive, can evolve to be structured and operated similarly as the transmission systems, which are active managing bidirectional power flows. This change of the distribution design may be triggered by the connection of an increased amount of small generating units.

10 : ftp://ftp.software.ibm.com/software/solutions/pdfs/ODC03017‐USEN‐00.pdf


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This evolution shall be accompanied by an opportune upgrade of the protection schemes, along with the introduction of new (soft and hard) technologies for a more flexible system control. The distribution network will then be more meshed (currently it has a radial structure or it is operated mainly as radial) and more controllable by means of ICT and power electronics‐based devices. The active distribution network may then deliver power to users and/or transfer it to the transmission system as well. This first big transformation is already ongoing in some European countries.

ICT For Micro grids

The European Smart Grids Technology Platform defines Microgrids as low voltage networks with DG sources, together with local storage devices and controllable loads (e.g. water heaters and air conditioning). The unique feature of Micro grids is that, although they operate mostly connected to the distribution network, they can be automatically transferred to islanded mode in case of faults in the upstream network. After a fault has been resolved and the upstream network operation restored, they can be resynchronized to the rest of the system. Intentional islanding mechanisms can protect clusters of customers against power outages occurring on bordering and/or upstream networks. In case of disruptions affecting a nearby network, by disconnecting a Micro grid (having sufficient generation and storage resources) from the faulted network, power supply to local customers can be maintained. Additionally, the islanding procedure could be implemented at a less sophisticated level, more simply allowing that a Micro grid is able to ‘black start’ in case of a widespread system outage. Pilot projects of Micro grids are present in Greece, Germany, Netherlands, Italy, Portugal, Spain, and in Denmark.

ICT For Virtual Power Plants

The Virtual Power Plant (VPP) is a decentralized energy management system tasked to aggregate different small generators either for the purpose of energy trading or to provide system support services. The VPP concept is not itself a new technology but a scheme to combine decentralized generation and storage and exploit the technical and economic synergies between system’s components. This aggregation is not pursued by physically connecting the plants but by interlinking them via soft technologies (ICT). For this reason the result is a virtual power plant, which may then be a multi‐fuel, multi‐location and multi‐owned power station. A virtual power station balances required and available power in identified areas, based on off‐line schedules for distributed energy sources, storage, demand side management capabilities and contractual power exchanges. For a grid operator or energy trader, buying energy or ancillary services from a VPP is equivalent to purchasing from a conventional station.


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Virtual power stations using DG, RES and energy storage can potentially and gradually replace conventional power stations. Data available for ICT Infrastructure and Power Electronics We recommend to check the freshly published McKinsey & Company’s Report “SMART 2020: Enabling the Low Carbon Economy in the Information Age”, available at www.gesi.org. The report shows that while ICT’s own sector footprint currently 2% of global emissions will almost double by 2020, this sector could cut CO2 emissions by up to five times this amount. Great opportunities for emissions savings exist in applying ICT to global infrastructure and industry and the report examines four major opportunities where ICT can make further transformational cuts in global emissions: smart building design and use, smart logistics, smart electricity grids, and smart industrial motor systems. The following FP5/FP6 European projects could be the basis for further ICT developments for better Energy Efficiency: MICROGRIDS and MORE MICROGRIDS: http://microgrids.power.ece.ntua.gr/micro/default.php In particular deliverable DA4: Development and evaluation of innovative local controls to improve stability and islanding detection Main objectives: Investigation of new micro source, storage and load controllers to provide efficient operation of Microgrids. Development of alternative control strategies (centralised versus decentralised) Alternative Network designs. Technical and commercial integration of Multi‐Microgrids. Field trials of alternative control and management strategies. Standardisation of technical and commercial protocols and hardware. Impact on power system operation. Impact on the development of electricity network infrastructures. DISPOWER: http://www.dispower.org/WP1 Task 1.4 Distributed Load Control) Deliverable 5.4 Creation of service pools with easy accessible plug & play interfaces Deliverable 9.2 Prototype of PoMS

CRISP: http://www.ecn.nl/crisp/index.html Deliverable D3.3 Final Report on Field Experiments and Tests Deliverable 2.4 Dependable ICT support of power grid operations) Main results: Design and testing of new operating strategies for distributed power generation. As enabled by recent advances in ICT technologies for distributed intelligence. Focusing on practical scenarios for supply‐ demand matching, intelligent load shedding, fault detection and diagnostics and network security. FENIX: http://www.fenix‐project.org/ (Deliverables downloadable after registration) Main objectives: Enabling Distributed Energy Resources (DER) to make the EU electricity supply system cost‐efficient, secure and sustainable through aggregation into Large Scale Virtual Power Plants (LSVPP). Development of intelligent interfaces for commercial and grid integration of DER into LSVPP. Development of novel network services and new DMS and EMS applications to include LSVPP in system operation.


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ready for implementation in test sites using standard hardware and interfaces) Main results: Strategies and concepts for grid stability and system control in DG networks. Preparation of safety and quality standards. Investigations on power quality improvements and requirements. Development of management systems for local grids with high penetration of DG units. Assessments of impacts to consumers by ICTs, energy trading and load management. Planning tools to insure reliable and cost effective integration of DG components in regional and local grids. Internet based systems for communication, energy management and trading. Investigations on contract and tariff issues regarding energy trading and wheeling and ancillary services. Improvement and adaptation of test facilities, experiments for further development of DG components, control systems and design tools. Dissemination and implementation of concepts.

Development of new commercial and regulatory solutions to support LSVPP. Validation through 2 large field tests in Spain and UK. Interact with stakeholders through an advisory group. IRED CLUSTER: http://www.ired‐cluster.org/ (Several European pilot installations for distributed generation fully described)

Recommendation for ICT to be investigated: There is a need for a better coordination of the transmission and distribution systems, which have to efficiently and safely work together. Both systems need to be further developed, not necessarily only in terms of carrying capacity but also and mostly in terms of ICT infrastructure and communication platforms. In particular, the transmission system strongly needs clear interfaces with the downstream distributed system.

ICT For Network Losses

Technical losses are an inevitable consequence of the science of distributing electricity and of transforming from one voltage to another. In an environment where any form of inefficiency in the energy cycle may be seen as highly undesirable (e.g. in terms of ‘carbon footprint’) it is important to remember that with technical losses typically in the range of 5%, this represents


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an overall ‘machine’ efficiency of 95% which compares extremely favourably with most other energy conversion / distribution processes. If load factor at LV could be improved (i.e. increased) by smoothing the load profile, there would be benefits in terms of reducing variable losses, improving voltage regulation, and also in terms of creating additional capacity headroom. Benefits and importance of minimising losses It has long been recognized that minimizing distribution network technical losses is integral to good distribution engineering practice. Minimizing losses has the following utility and wider societal benefits: It maximizes the available capacity of plant and equipment to deliver useful energy (i.e. rather than supplying losses); By the same token, minimizing losses also minimizes the amount of generation required purely to supply network losses. Demonstrating to utilities customers and society generally that utilities are managing their carbon footprint; Maximizing revenue‐earning opportunities arising from the regulatory incentive if any

ICT FOR BREAKTHROUGH INDUSTRY TRANSFORMATION Energy storage (electric cars) ‐ Plug‐in Hybrid Electric Vehicles (PHEV)

Introduction To Phevs

Plug‐in hybrid electric vehicles (PHEVs) combine today’s hybrid automotive technology with large battery systems that can be recharged from the electrical grid. PHEVs offer both an opportunity and a challenge to the electric power system, as they could provide that holy grail of the electric power system: significant energy storage. Currently, electricity cannot be stored, so off‐peak periods, for example night hours, are wasted. PHEVs could be the answer as batteries are recharged in the evening during off‐peak periods. They could power the electrical grid in times of high demand or, more likely, could function as reserves or other ancillary services – a concept commonly referred to as vehicle to grid (V2G). Should PHEVs be deployed on a broad scale for V2G applications, the impact on the electric power system (particularly the distribution system) would be tremendous. Transportation account approximately for two‐third of global oil demand and this section is 95% reliant on oil. While there is not silver bullet, PHEV can also be part of an effective strategy to face climate change.


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Energy Insights expects that, assuming PHEV sales growth will be similar to the pattern seen thus far with hybrid electric vehicles, PHEVs could have about 5% of the market after being commercially available for 10 years. This could reduce emissions by 2% and petroleum usage by 3%11. Utilities need to learn how to manage large numbers of distributed energy storage devices and two‐way power flows.

ICT Process and Technology Description

Since PHEVs will connect to the grid to either purchase or sell electricity it will be necessary for electric girds to be updated to become two‐way systems, so enabling it to collect electricity from remote storages, like PHEV car batteries. To simplify, basic enabling technologies will be car, batteries, charging points, exchange stations, and from an ICT perspective: smart meters, meter data management system (the repository) , meter reading/communications software (between meter and systems), Meter systems interfaces (between other systems and MDM), Web‐enabled end‐user applications, end‐users energy management systems. Settlement of electricity consumptions and sales, and/or compensation for the use of PHEV for reserves or other ancillary services will then need to be managed by utilities billing systems. In fact, even if V2G approach could supply energy to the grid at times of peak demand, V2G is more likely to have a role in providing power services, such as regulation and spinning reserves, for which PHEV owners would get paid. In either case, these possibilities bring with them challenges related to interconnection issues and impacts on the electric distribution system. A V2G approach could be beneficial to the utility and more broadly from an energy efficiency perspective, for it could be used to manage wind power fluctuations and to match ramp rates of gas‐fired generators. Interconnecting PHEVs would be very simple if the vehicles were only drawing power from the grid to recharge batteries. In effect, the vehicle would plug in like any other domestic appliance. The PHEV batteries could also relatively simply be used to provide backup power to a home or business during an outage. But if the vehicle were designed to feed power back onto the grid based on a signal from the utility, then protection equipment would be needed. Given that there is no rotating equipment and that the battery system would be producing DC power, a protection system could be as simple as those used in photovoltaic or fuel cell systems utilizing inverter‐based approaches.

11 Energy Insights raw estimations


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Initially, growing V2G deployment would likely require a review of the capabilities of individual feeders to handle power fed onto the grid. But, concurrently, utilities would also need to reevaluate and perhaps alter the design approach they take in building and retrofitting the distribution system. Likewise, to gain full advantage, communications and control technologies would have to be modified to dispatch PHEVs when reserves, regulation, or other ancillary services are needed.

Data Available

There are some pilot projects taking place through Europe. As the projects unfold there will be more and more data to look at to see the performances of PHEVs and their interactions with electricity grids. Energy Insights expects that, assuming PHEV sales growth will be similar to the pattern seen thus far with hybrid electric vehicles, PHEVs could have about 5% of the market after being commercially available for 10 years. This could reduce emissions by 2% and petroleum usage by 3%12. Of course contribution to efficiency and environment could be increased by technology development of batteries allowing PHEV to be used on longer versus shorter average daily distances. The energy mix used to produce electricity to charge vehicles is also a determinant of PHEV contribution to a cleaner environment. Of course the possibility to use renewable energy represents the best option, not only for pollution, but, being PHEV a storage facility, also to increase Renewables level of utilization, decoupling the moment of production from usage (for instance usage of wind energy during the night in country like Denmark). Projects currently underway, which will unveil huge experiences include: EdF’s partnership with Toyota to evaluate PHEVs in Europe; Saab and Volvo pilot project collaboration with Vattenfall in Sweden; and Dong Energy’s testing of an electric vehicle fleet that can plug‐in into the grid with Project Better Place, also involving Renaul‐Nissan.

12 Energy Insights raw estimations. Additional bibliography:

EPRI‐NRDC Joint Technical Report, Environmental Assessment of Plug‐In Hybrid Electric Vehicles, Volume 1: Nationwide Greenhouse Gas Emissions (1015325), July 2007.

WWF Plugged In, The end of the oil age, March 2008

Energy Insights, What Path are PHEVs Taking in Europe? (Doc# EIRS02Q, May 2008)


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In September 2007, EdF formed a technology partnership with Toyota to evaluate PHEVs in Europe. Their objective is to develop practical solutions for the commercialization of Toyota’s prototype vehicle technology, which can further reduce the environmental impact of vehicles especially in urban areas. Under the joint agreement, a small number of PHEVs were integrated into EDF’s vehicle fleet to be tested on public roads in France under typical driving conditions. Road trials of the PHEV commenced in France in the fall of 2007 and may be expanded to other European countries. EdF and Toyota have developed an innovative charging and invoicing system, equipped in each of the test vehicles. This system is compatible with a new generation of public charging stations, which aim to make electric power more accessible on public roads and car parks and to reduce the cost to the customer. EdF penned a second partnership in October 2007 with Elektromotive to install 250 new charging points over the next six months in London and elsewhere in the UK. Saab and Volvo will collaborate on a pilot project around plug‐in hybrid vehicles. The two car manufacturers will test ten Volvo PHEVs on Sweden’s public roads next year. Swedish energy company Vattenfall and battery manufacturer ETC Battery and Fuel Cells Sweden are also partners in the new project. The project will continue between 2008‐2010 and the ten plug‐in hybrids are scheduled to be under test by 2009. Data collected during the demonstration project will be used to evaluate batteries, analyze driving patterns, and refine simulation software used for PHEV and HEV development. The expected cost of the project is US$9.6 million, and the partnership has applied for a government grant for half of that. Danish utility, DONG Energy has also jumped on the wagon in the testing and development of an electric vehicle fleet that can plug‐in into the grid. The firm signed a letter of intent with California‐based Project Better Place at the end of 1Q 2008 aimed at reducing CO2 emissions from the Danish car fleet. Together with Project Better Place, DONG Energy will work on giving Danish consumers access to buying environmentally friendly electric vehicles (EVs) at attractive prices. Within the next few years, Better Place Denmark is to introduce environmentally friendly, battery driven EVs to the streets of Denmark. DONG’s other aspiration is to achieve a new way of storing the unstable electricity output from wind turbines, as EVs are typically charged during the night, when the exploitation of power generation is low and considering DONG’s strong developments in the wind energy arena. The vehicles will be developed and provided by the Renault‐Nissan Alliance partnership with Project Better Place Denmark. Renault will provide Better Place Denmark with the electric vehicles, thus achieving the objective of zero emissions while at the same time offering driving performances similar to a gasoline engine. Project Better Place, before Denmark, launched its first V2G pilot in Israel, partnering with Renault‐Nissan. Their aim is to integrate all necessary


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companies and components that already exist to make widespread use of electric cars a reality. Through their system electric cars will get their power through a system called the Electric Recharge Grid. The parts of the ERG include the car, batteries, charging points, exchange stations, software and renewable energy systems—all of which need committed manufacturers and suppliers. Project Better Place calls this a “virtual oil field”. So far governments throughout Europe have bee busy trying to sponsor a more vast adoption of fuel alternative vehicles, including PHEVs. Most countries have adopted some form of tax incentive to keep costs of ownership for these new technological vehicles competitive. Below are some country specific examples:

• Sweden Incentives for environmentally friendly vehicles in Sweden embrace reduced company car tax, free parking in selected cities, reduced vehicle insurance, exemption from congestion charges in Stockholm and lower annual registration taxes. The Swedish Government has also mandated that 85% of Government vehicle purchases (excl police, fire and ambulance vehicles) must be Alternative Fuel Vehicles; and that all petrol stations with an annual volume of more than 1000m3 must have an alternative fuel pump by Dec. 31, 2009, and all new filling stations must offer Alternative Fuels.

• France The French government has agreed far‐reaching tax incentives for both the fuel and alternative‐fuel vehicles, no mineral oil tax on ethanol, no company car tax for the first 2 years, reduced registration tax, no VAT on fuel for the fleet customer.

• Italy Alternative‐fuel vehicles sold in Italy are eligible for 30% to 65% government support on the purchase price, if a company purchases the vehicle. As a result, most privately driven alternative‐fuel vehicles in Italy, including hybrids and electric vehicles, are leased.

Recommendations For Data To Be Investigated (Investment Required)

Looking more closely at ongoing initiatives and pilot project for PHEV focusing not only on technical issues regarding the creation of the infrastructure but also on business case to facilitate investment. Furthermore, intelligent grid initiatives are constantly releasing new material concerning PHEVs and relevant companies that are claiming to already have the technology to integrate PHEVs.


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Recommendations for ICT investment required (Regulation, Research, Development, Go To Market)

Regulation

• Promote the advancement of commercial PHEV • Promote renewable energy programs around the concept that cars of the

future could be powered with renewable energy rather than gasoline. • Push the creation of time‐of‐use rate plans that provide consumers an

incentive to recharge PHEVs and other rechargeable electronics during off‐peak hours.

• Establish programs for battery recycling and proper disposal

Research/Development

• Contribute in funding pilot to study and field test projects involving PHEVs. Vehicle‐to‐Grid (V2G) demonstrations should be a part of that effort. Particular evidence should be given to infrastructure development and ICT enabling solutions.

Go To Market

• Ask utilities to estimate the number of PHEVs they could fuel with excess load in the evening and divulgate that information, for example via their Web site.

• Launch a marketing campaign to illustrate how using electricity to power PHEVs is better for the environment and for consumers’ budgets than using gasoline.

• Assistance in developing energy management capability for end users. • Create ICT enabled energy efficiency standard indicators and reinforce

their collection and monitoring

Phev Towards Billing For The Future Energy Infrastructure

In the future energy infrastructure billing will play a major role. As we move towards a service‐based society, a variety of services will be offered within a specific time frame, and the providers need to be able to charge for it in a quick, transparent and cross‐border way. New forms of billing and payment will arise i.e. instant‐payments will be needed. In a future scenario, electric cars will be able to charge their batteries while waiting at the traffic lights, with energy being wirelessly transmitted from special installations at the road. As this transaction will be in the seconds, respective billing capabilities should be there. The smart meter that is seen as a key entity for the future smart grid, will be a distributed one, composed of many real and virtual units e.g. at home, at the car, or even embedded as part of every electrical device and bound to the user.


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To that extend we propose to

• Create a real‐time pan‐European ubiquitous micro‐/mini‐ billing infrastructure. Existing systems e.g. mobile payments, GeldKarte etc could be seen as the first steps. The infrastructure should of course include security, archiving, invoicing, signing and verifying of invoices, real‐time payments, cross‐channel support etc.

• Change the regulatory framework to allow pan‐European ubiquitous micro‐payments; apply this to the SEPA (Single Euro Payments Area)

• Promote electronic money and electronic transactions; Reduction of cash money and increase of electronic money through reduction of costs of electronic money

• Engage the Telecoms (experience micro/mini payment solution providers) in dialog with the banks (mini/macro billing payment providers).


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ANNEXES Contributors to the Consulting Group Industry

Accenture Technology Labs (Ms. Marion Mesnage) Alcatel‐Lucent (Mr François Loubry) BOOZ & Company GmbH IBM IDC Energy Insights Infineon Technologies KEMA SAP (co‐Chair) Siemens

Broader business associations Eurelectric European Renewable Energy Council European Centre for Power Electronics European Utilities Telecom Council (co‐Chair) CIRED Research Centres Enersearch Cesi Ricerca SpA

European Commission INFSO ENV Joint Research Centre RTD For any information, please contact : Maher Chebbo, VP EMEA Utilities SAP, EU SmartGrids Council and co‐chair ICT for EE [email protected] OR Miguel Angel Sànchez Forni, Director, Iberdrola EUTC, EU SmartGrids, co‐chair ICT for EE [email protected]

ICT Industrial Partners

Accenture Technology Labs Alcatel‐Lucent BOOZ & Company GmbH IBM IDC Energy Insights Infineon Technologies KEMA SAP Siemens

Ms. Marion Mesnage Research Manager Phone: +33 4 92 94 17 12 Mobile: +33 6 79 59 11 38 Email: [email protected] Mr François Loubry Vice President, Energy Phone: +33 1 30 77 43 45 Mobile: +33 6 03 42 63 41 Email : francois.loubry@alcatel‐lucent.fr


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Replaced for this meeting by Peter Johnson Mr Rolf Adam Phone: +49 89 54525 697 Mobile: +49 170 2238 697 Email: [email protected] Mr. Jeremy Willsmore IBM Europe’s Energy and Utilities Business. Phone: +44 2392 561 994 Mobile: +44 7860 809 397 Email: [email protected] Roberta Bigliani, EMEA Research Director Phone: +39 02 28457377 Mobile +39 33 56327767 Email: Rbigliani@energy‐insights.com Dr. Gerhard Miller Phone: +49 89 23428281 Mobile: +49 1717636317 [email protected] Absent for this meeting Tomas Harder Mr. Willem Strabbing Phone: +31‐26‐3566232 Email: [email protected] Dr. Maher Chebbo Vice‐President SAP Phone: +33 6 18 22 05 38 Mobile: +33 6 18 69 9797 Email: [email protected] Dr. Michael Weinhold CTO Energy Sector Phone +49 9131 185275 Email: [email protected] Replaced for this meeting by Gerd Griepentrog

Broader business associations


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Eurelectric European Renewable Energy Council EREC European Centre for Power Electronics (ECPE) European Utilities Telecom Council (EUTC)

Mr. Gunnar Lorenz Head of Unit Networks Phone: +32 2 515 10 54 Email: [email protected] Replaced for this meeting by Michel Laurent (Electrabel) Ms. Christine Lins Secretary General of EREC Phone: +32 2 546 1933 [email protected] Replaced for this meeting by Mr. Thomas Harder General Manager Phone: +49 911 91 02 88‐11 Email: [email protected] Mr. Peter D Moray EUTC Director Mobile: +44 7710 057694 [email protected]

Research Centres

Enersearch Cesi Ricerca SpA

Prof. Hans Akkermans Chief Scientific Officer Phone: +31 653 254 053 Email: [email protected] Dr. Michel de Nigris Director Dpt T&D Technologies Phone +39 023992 5890 Email: [email protected]


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2 ICT FOR ENERGY

EFFICIENCY IN

MANUFACTURING


Edited by Prof. Dr.‐Ing. Frank‐Lothar Krause; Berlin


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SUMMARY

In January 2008, the European Commission adopted a far‐reaching package of concrete measures demonstrating that agreed climate change targets are technologically and economically feasible and provide a unique business opportunity for thousands of European companies. With its Communication "Addressing the Challenges of Energy Efficiency through Information and Communication Technologies" presented in May 2008, the Commission underlined the role of ICT as an enabler of energy efficiency across the economy. The Communication proposed the setting up of Consultation Groups with industrial and societal stakeholders to investigate opportunities offered by ICT to increase energy efficiency throughout the economy. As nearly one third of global energy demand and CO2 emissions is attributable to manufacturing, a systems approach, enabled by ICT, which transcends process and sector boundaries, seems to offer significant potential for savings. The industry represented in the Smart Manufacturing Consultation Group involved the process industries, discrete manufacturing and semiconductor manufacturing industries. Technology providers, in particular ICT providers, made significant contributions. The Group also involved representatives from academic institutions, European universities and research institutes, specialised in this R&D field. The report provides a consolidated summary of suggestions made by the Consultation Group. Its main aim is to identify opportunities for ICT to reduce the carbon footprint of Europe's manufacturing industry. It starts with an analysis of the significance of manufacturing for Europe's economy, wealth and jobs, it analyses the share of manufacturing on Europe's energy consumption and then attempts to consolidate estimates for savings potentials in industry. The report concludes with a list of recommendations for ICT deployment activities in the short‐to‐medium term (2009‐2015) and a summary of R&D needs for new ICT benefiting manufacturing in the long term (2015‐2020). It is expected that the proposed measures will help manufacturing to move away from the dominating economic paradigm of "maximum gain with minimum capital investment" towards a more sustainable paradigm of "maximum added value from a minimum of resources".


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INTRODUCTION During 2007, a consensus crystallised on the need to put a combined climate and energy policy at the heart of the European Union's political programme, central to the Lisbon and renewed sustainable development strategies and of primary geo‐political importance considering oil reserves and prices. The European Council set precise and legally binding targets as a symbol of Europe’s determination. In January 2008, the European Commission adopted a far‐reaching package of concrete measures demonstrating that the agreed climate change targets are technologically and economically feasible and provide a unique business opportunity for thousands of European companies. With its Communication13, presented on 13 May 2008, the Commission underlined the role of ICT as an enabler of energy efficiency across the economy, including fostering the change in behaviour, improving efficiency in the use of natural resources and reducing pollution and dangerous waste. The Communication proposed the setting up of Consultation Groups with industrial and societal stakeholders to investigate opportunities offered by ICT to increase energy efficiency throughout the economy. As nearly one third of global energy demand and CO2 emissions is attributable to manufacturing, a systems approach, enabled by ICT, which transcends process and sector boundaries, seems to offer significant potential for savings. The industry represented in the Smart Manufacturing Consultation Group involved process industries (in particular the steel and the chemical industry represented by two European Technology Platforms, on steel research (ESTEP) and on sustainable chemistry (SUSCHEM)). It further involved discrete manufacturing (in particular the machine tool building sector represented by their European association CECIMO, small and medium sized enterprises (SMEs) represented by CIC Margune in Spain) and semiconductor manufacturing (in particular chip makers represented by AMD in Dresden and Intel Ireland). Technology providers, in particular ICT providers, gave significant inputs. Representatives of academia, European universities and research institutes specialised in this R&D field, gave further significant input.

13 COM (2008) 241 final of 13 May 2008: Addressing the Challenges of Energy Efficiency through Information and Communication Technologies


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This report provides a consolidated summary of a large number of suggestions made by this Consultation Group. At a meeting held in Brussels on 3 July 2008, around 30 participants from industry and academia discussed under the heading "Energy Efficiency in Manufacturing: The Role of ICT" and provided written input (see Annex 1 and 2). The main aim of the report is therefore to identify opportunities for ICT to reducing the carbon footprint of Europe's manufacturing. It starts with an analysis of the significance of manufacturing for Europe's economy, wealth and jobs (section 3), its analyses the share of manufacturing on Europe's energy consumption (section 4) and attempts to consolidate estimates for savings potentials in industry (section 5). Sections 6 and 7 deal with short‐ and long‐term measures to help manufacturing change its economic paradigm from "maximum gain with minimum capital investment" to "maximum added value from a minimum of resources", thereby facilitating a more holistic view of this important human economic activity.

DEFINITIONS AND SCOPE Manufacturing and production are two narrow terms. Manufacturing provides goods and services. The types of goods vary between industries. In the current investigation we have four sectors: discrete manufacturing, semiconductor manufacturing, process industries and services. While manufacturing includes all industrial activities from the customer to the factory and back to the customer, the term production may be used for the process of making the goods. Manufacturing processes also involve supply chains that span the globe as well as the lifecycle of a product. Enablers of manufacturing are human resources, materials, energy, infrastructures, ICT and knowledge. ICT is increasingly used in the planning, operation and control of manufacturing business. Three types of manufacturing activity are discussed in this report. Discrete manufacturing produces investment goods and consumer goods in single batch processes or in a series or in mass production. Examples are machine tools, cars and even simple screws. Semiconductor manufacturing aims at producing ICT components such as transistors, diodes, processors and memory chips. These are the essential building blocks of the information society. Process industries are those parts of industry that involve continuous flow production. This is the case for chemical and pharmaceutical production as well as for the production of steel, copper, aluminium, etc.


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Services (in the sense of immaterial "products"), for example the software that runs data centres or is used for computing, education and controls, are dealing with another aspect: e.g. the energy saving service offered to the operator by a service provider. A "dematerialization" trend, towards more services and product/service systems, may ultimately affect energy efficiency in a positive way. However, this report will not deal with that particular issue but will rather focus on ways to improve the energy efficiency of manufacturing processes.

THE IMPORTANCE OF MANUFACTURING Manufacturing is one of the key industries, contributing 22% to Europe's GDP. In 2004, the MANUFUTURE High‐Level Group estimated that 70% of jobs in the EU directly/indirectly depend on manufacturing [MANUFUTURE]. Discrete manufacturing revenues are of the order of 1,500 billion €, with 34 million people employed, which means that 30 % of all work places in Europe are in industry [Neugebauer]. Regarding discrete manufacturing, CECIMO, the European Committee of the Machine Tool Industries, provided the following data: 71 % of the production is exported14, and 133,000 employees are working in the machine tool industry in 1,190 companies [CECIMO]. The percentage of SMEs is very high, for example in Germany about 70% of the companies have less than 250 employees [Neugebauer]. The production of automation equipment in the EU‐27 accounted for 40.5 % of the world market in 2005. The production of ICT in the EU‐27 was at 24.3 % in the same year [Electra/ZVEI]. In 2007, European semiconductor manufacturing showed revenues of 27.4 billion €, with 90,000 people directly employed [ECCA ESIA]. The process industries contribute with 2,500 billion € to the turnover of EU‐25 industry15. They employ 8.6 million workers in 381,000 companies. 96% of the companies are SMEs (26,200 are the latest figures from 2001). The industry's export value is 121 billion €. In 2007, steel production in the EU‐27 amounted to 209 million tons and accounted for a 15.8 % share of the total global steel production with a turnover of more than 140 billion € and direct employment of 370,000 people [ESTEP].

14 For example: Germany's and Italy's export value in 2007 together amounted to 13,366 million US$ [Neugebauer]

15 2006 figures, including chemicals, metals, food and beverages, pulp and paper, coke and other fuel production [Eurostat]


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Based on the large impact of manufacturing on Europe's welfare the following strategic considerations should provide a rationale for action:

• The significance of the industrial sector (in terms of GDP share) makes its energy efficiency efforts a non‐negligible contribution to reaching European and G8 policy targets.

• Making Europe's industry an energy efficiency forerunner may have dual global impact: Firstly, it proves that energy efficient goods can be competitive – providing a showcase for sustainability‐minded European business. Secondly, as Europe's manufactured goods supply other manufacturers world‐wide, global production may ultimately follow Europe's example into more energy efficiency in manufacturing.

• Keeping manufacturing industries strong is essential for Europe's sustainable growth and welfare. Energy efficiency in manufacturing not only contributes to reducing the carbon footprint of the industry, it also contributes to reducing Europe's dependence on energy imports, and this helps limit inflation.

MANUFACTURING'S ENERGY DEPENDENCE

In 2006, Europe's share of the global primary energy consumption was 18% (10,900 Mtoe16). World electricity production will almost double, from 16.4 million GWh in 2004 to 30.1 million GWh in 2030. This translates to an annual increase of 2.4 % [Infineon]. The EU‐25 primary energy consumption in 2005 amounted to a total of 1,750 Mtoe, with industry being responsible for a share of 17‐18 % [see footnote 5]. According to these sources, the 2005 energy consumption of manufacturing industry was roughly 297 Mtoe. The chemical industry's share amounted to 131 Mtoe (2005, latest available data) [Manninen]. In the EC Action Plan for Energy Efficiency, the energy consumption of manufacturing industry is listed separately from the contribution of commercial buildings and of transport. This may lead to inconsistencies in the counting of industry consumption figures, as energy consumption of transport and buildings logistics may be included. Therefore, similar figures for the other industries, e.g. discrete and semiconductor manufacturing may not be directly comparable. For example, about 10 % of industrial energy consumption is attributed to the use of compressed air (more than 80 TWh/year). There are about 321,000 compressors (of sizes between 10 and 300 kW) installed in Europe [COMPR AIR].

16 "Mtoe" denotes mega tons of oil equivalent


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Another factor is electrical drives. In 2004, 15% (528 TWh) of Germany's primary energy consumption was on electricity. The industry share is 47 % and two thirds of it (or 165 TWh) may be attributed to electrical drives. The remaining one third of this industrial energy bill may be accounted to heating and lighting [ZVEI]. In semiconductor manufacturing, energy is required to process the silicon wafers in the tool, and to power the tool during idle times. Individual components of processing tools such as vacuum pumps or motors require energy. The energy needed to run process equipment and tools accounts for up to 40 ‐ 50 % of the total energy consumption in a semiconductor facility [EECA ESIA]. It should also be mentioned that the growing energy intensity of emerging manufacturing process technologies (such as sputtering, drill EDM, oxidation) is a matter of concern. In terms of energy intensity per processed unit of volume, a factor of up to 100 million is noticeable between conventional and emerging material removal processes [Duflou].

SAVINGS POTENTIAL The absolute total energy consumption and achievable efficiency improvement figures should be differentiated according manufacturing sector. While a lack of total energy consumption data may already be a problem for sectoral comparison, estimating possible improvements is even more difficult due to high uncertainties in the efficiency gains to be expected. However, an attempt is made here to build a logic that can support prioritisation [Duflou]. While process industries like steel, chemicals and cement production consume considerable amounts of energy, the cost structure in those sectors is such that possible efficiency gains constitute a core business concern. They are already exploited to the fullest possible extent using state‐of‐the‐art technology. Additional gains are therefore to be estimated in an order of magnitude of a few percent at best and will come at considerable investment costs. Fundamental technological shifts will be required to improve this situation. Market mechanisms triggered by rising material costs constitute a strong incentive for designers and manufacturers to make material efficiency a priority. Rather than expecting large improvements in the energy efficiency of the above mentioned material production sectors, it is more likely that, influenced by raising material costs, design efforts will reduce the material intensity of


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production by emphasising dematerialisation, structural optimisation and systematic use of recycled materials. The situation is however totally different when considering production facilities in discrete manufacturing. In this domain the energy efficiency of production is a concern to the end user of machine tools rather than a major cost factor for the machine tool builder. Since the selection of machine tools is traditionally based on quality and productivity considerations, no intrinsic incentive is present in machine tool design to optimise for energy efficiency. While energy efficiency concerns are gradually emerging in some machine tool market segments, energy efficiency of machine tools remains largely non‐documented. It is obvious that the machine tool sector, which is typically characterised by SMEs, lacks the direct incentives and in many cases also the expertise to significantly improve the energy efficiency performance of their offering. A coordinated action seems recommendable here to overcome this situation. Up to now, most factories have been designed and constructed with cost as the most important economic factor in mind. This can be seen at machine level, systems level and infrastructure level. However, due to increased changes in the energy sector, energy efficiency and optimisation should be another key indicator for cross‐layer optimisation of future factories. In order to achieve this optimisation and transform it into an efficient factory, energy has to be measured locally and almost in real time, while manufacturing control activities need to also be made aware of the consumed energy. Furthermore, higher‐level decision support systems and enterprise services should also take into consideration the overall energy consumption of each process, and optimise globally and locally. These goals have to be assisted by increasing automation within factories, which can provide better visibility and efficiency on the shop floor. Regarding achievable energy savings in manufacturing the following general statements can be made:

• Energy efficiency is the best energy alternative. • A business paradigm change is needed

•

Maximum gain from minimum capital

Maximum added value from a minimum of resources

paradigm change


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The overall medium term achievable industrial production savings potential is 25‐30 % [Neugebauer].The Commission17 estimates the energy savings potential by 2020 of being 95 Mtoe, or a full energy savings potential of 25% by 2020 [Electra]. Industry represents about 30% of Europe's primary energy consumption. Savings of up to 65%, at least in many processes, can reasonably be expected [Electra]. More focus needs to be put on the design and the management of manufacturing processes. It is necessary to develop tools and relevant algorithms which will be able to take energy efficiency into account as a significant parameter of the process, and to calculate best energy performance results along with other desired process results. There seems to be a significant lack of awareness for energy wasted on behalf of industrial operators. This is often caused by worn‐out (or old) components and installations. Savings can be achieved through preventive maintenance, the use of condition monitoring systems, and the use of intelligent components and systems solutions [COMPR AIR]. ICT could play a significant role in mitigating up to 970 million tons of global carbon emissions by 2020, thanks to motor systems and industrial process optimisation [SMART2020]. ICT‐optimised logistics could result in a 16% reduction in transport emissions and a 27% reduction in storage emissions globally [SMART2020]. These improvements can be made in a number of ways: through software to improve the design of transport routes and networks, route optimisation and inventory reduction.

Process Optimisation 25‐30% Development of New Products

10‐40%

Optimised Logistics 16% Intelligent Motor Drives 20‐40%

Integrated Process Chains 30% Alignment with Best Performers

15%

The Key Role of ICT

17 Action Plan for Energy Efficiency: Realising the Potential, COM(2006)545 of 19 Oct. 2006; 2020 Vision: Saving our Energy, Energy Efficiency Action Plan, http://ec.europa.eu/energy/action_plan_energy_efficiency/doc/2007_eeap_en.pdf; Green Paper on Energy Efficiency: Doing More with Less, http://ec.europa.eu/energy/efficiency/


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To introduce energy savings intelligent controls are needed. At machine tool level ICT controls are situated within the CNC system monitoring the machine status and controlling various machine functions. A selective actuation of support systems, like cooling, chip removal or exhaust units, and an intelligent determination of the actuation level of such systems allows cutting down on secondary energy consumption without affecting the function of the machine tool. Selective switch‐off or modulating the power supply to the primary process systems, based on intelligent machine status determination, allows further reductions [Duflou].

ICT For Production Optimisation

Today’s advanced technologies, such as model predictive control, are capable of solving optimisation problems in real time. If the cost function that is optimised includes energy consumption, then the process is run in a more energy efficient way. Embedded, smart components and systems, sensor/actuator networks and control algorithms can be used to achieve a positive effect on emissions. On top of more advanced control schemes, today’s automation architectures allow for a wide range of optimisation loops by enabling data exchange between the automation system, the manufacturing execution system, and the enterprise resource planning system [SAP]. The amount of data that is available in and around a modern automation system contains a lot of information about the plant. Advanced asset monitoring systems that analyse the data, extract information about the state of production, the health of the plant, and maybe even life cycle information, are another means of optimising plant energy consumption. They are a good tool to detect abnormal plant behaviour that very often results in increased energy consumption. Indications of performance degradation of the plant may result in condition‐based maintenance or service activities. The quicker the problem is recognised, the shorter the production is running in non‐optimal areas. Another way to increase production effectiveness is by the application of advanced scheduling algorithms. To put customer orders in the right sequence may significantly reduce the time required to re‐tool or re‐arrange the production line, keeping down‐time low. This does increase the plant throughput, but does not necessarily reduce energy consumption. However, if the manufacturing process requires energy‐intense start‐up or shut‐down phases, or if stand‐still does consume energy (e.g. to keep parts of the production at operational temperatures), the gain of reduced re‐configuration outages may add to that effect as well. At production system level, ICT‐driven optimised production planning allows for a scheduling of energy intensive tasks when the lowest economic and ecological effects are to be expected. Peak load avoidance, resulting in the elimination of undesirable, high impact marginal peak load energy production, can reduce the environmental footprint of a production facility as well as its operational costs. Scheduling production activities with a


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high cooling requirement outside the warmest hours of the day can, for example, result in significant energy savings [ABB].

ICTEnabled Design For Energy Efficiency

A completely different possibility to reduce plant energy consumption can be found in the engineering phase. Today’s engineering tools contain all data of a future plant, its layout, dimensioning, and component information. This information can be used for simulation purposes. The behaviour of the plant can already be checked during the engineering phase, without running the physical plant. Processes can already be optimised during simulation rather than during an energy intensive commissioning phase. Today’s design criteria of a plant are very often performance and capacity. The design is optimised to maximise these variables. At this stage already, the overall energy consumption of the plant can be taken into consideration, and a more efficient process can be chosen based on the simulation results. For design support to eco‐design, at machine tool level, ICT support is also crucial. Flexible access to energy consumption oriented process models and to a design guidance knowledge base are important support functions for machine tool designers that can only be realised using state‐of‐the‐art ICT.

Possible Savings In Discrete Manufacturing

The general approach to improving energy efficiency in industry is to perform an equipment inventory, an assessment of the energy savings potential for each piece or group of equipment, and to draw up an action plan including monitoring and reporting. This approach can be developed through a professional audit of the main process (see also section 6.4 on standardisation) [Electra]. There is significant savings potential, such as the following [Neugebauer]:

• Premium investment goods, premium consumer goods and mass consumer goods could save in Germany alone 210 PJ p.a.

• Better integrated process chains could save 30% energy. • Development of new products could lead to savings of 10‐40%, depending on the

products and branch. The development of new products offers the possibility to minimise the product's energy consumption during its operation, but its energy consumption during production can be minimised, too.

• To substitute cutting with cold forming is another area with significant savings potential. According to a study on the pre‐processing of gears, the process time could be reduced by 50% and the material use by 70%. The replacement of spot welding by clinching can reduce energy consumption from 3% to 1%.

Savings potentials for discrete manufacturing can be grouped as follows:


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Process Stability

Energy and material efficiency through better process stability [Neugebauer]: • “Zero waste production” avoids the manufacturing of defective parts. 100%

quality control can help achieve this goal. • ICT‐driven control systems can considerably reduce unproductive time during

ramp‐up. • Operation and maintenance cycles can be optimised.

Rethinking Production Process Technology

Mechanical, thermal and chemical processes and production systems have to be reconsidered concerning their energy savings potential, which can be estimated at 25% [Neugebauer]:

• Net‐shape technologies have to be further developed. • Structural light‐weight construction with gradient materials has enormous

potential. • Processes which lead to changes in the state of materials, such as heat treatments,

lead to high materials losses. • Sensor based ICT‐infrastructures should be used to analyse energy‐relevant

parameters. • Detection of the beginning and end of down times, intelligent monitoring, system

diagnosis and auto‐correction should be implemented. • The base load on machine tools is responsible for up to ¾ of the total power

consumption, while ¼ is used for the process itself. An optimisation of waiting/start‐up times has a savings potential of 10‐25%.

• Coating of sheets should be changed from post‐coating to pre‐coating. This means to coat before forming which results in less energy consumption, less loss of lacquer or powder in the process, less time for the process and less required space.

Lossless Infrastructures

Lossless infrastructure operations in manufacturing plants and factories [Neugebauer]: This production area, including the transportation of goods, accounts for more than 40% of energy consumption in discrete manufacturing. Because of not‐yet available assessment methods its savings potential cannot be estimated.

Intelligent Drives


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Technologies to increase energy efficiency are readily available: motors are installed in all manufacturing plants and represent close to 70% of the electricity used in industry; 88% of the motor drives are not electronically controlled today. Out of these some 50% can be equipped with variable speed drives (VSD) to achieve energy savings, during partial load, of up to 50% [Electra]. The savings potential from the use of power electronics [Infineon] is estimated as follows:

• 20‐30%: Traction drives using power semiconductors, e.g. recuperation of braking energy

• 30‐40%: Motor control using inverters • 30‐40%: Air conditioning, using intelligent compressor control

There is a lack of information about energy consumption of motor systems and where savings can be made within a factory. ICT’s main role in the short term will be to monitor energy use and provide data to business, so they can make decisions on energy and cost saving. Wireless networks that allow inter‐machine and system communication would improve energy efficiency across an entire factory [SMART2020].

Energy Savings In The Use Of Compressed Air

In case studies on compressed air technology it was found that energy savings are possible in the range of 10‐50% [COMPR AIR]. An awareness raising programme involving information, decision‐making and measurement guidelines could stimulate a reduction of the current compressed air systems electricity consumption by almost 17 %. Additional measures, described in the study, could under certain conditions stimulate savings of 25%. Economically and technically feasible energy savings amount to about 33%, achievable over a 15‐year period. The main means are: reduction of air leaks, better system design, and use of adjustable speed drives and recovery of waste heat.

Possible Savings In Semiconductor Manufacturing

Production‐related savings include the following targets: • Greenhouse gas emissions can be reduced by 33% by 2010 relative to the 2006

baseline (as measured by kilogram carbon equivalent emissions/manufacturing index [AMD]).

• The energy consumption reduction goal aims to reduce normalised energy use with 40% by the end of 2010 relative to the 2006 baseline (as measured by kWh/manufacturing index [AMD]).

Savings of 35,500 MWh were achieved in 2005‐2007 with an Enterprise Energy Monitoring System. It is an internet‐based, real time, centralised energy tracking


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software which monitors over 1000 metering points at 24 locations. This has been supported by an organisational change. The energy management organisation is focused in a global department within its Corporate Real Estate and Site Operations Departments [IBM]. In a re‐commissioning programme, existing buildings undergo an extensive data‐based evaluation to identify opportunities to optimise system operations and reduce energy use. For 2.6 million square feet (242,000 m²) of space annual savings of 17,000 MWh could be achieved in the period from 2003 to 2006 [IBM]. The World Semiconductor Council (WSC), where ESIA (European Semiconductor Industry Association) is a member, has agreed on a common expectation level for the reduction of electricity consumption in semiconductor production processes on a global basis. The expectation level of the WSC is that normalised electricity consumption should be reduced by 30% from 2001 to 2010 [EECA ESIA].

Possible Savings In The Process Industries

Almost all options identified in the section on discrete manufacturing are applicable also to the process industries. The estimated savings potential in this industry domain is as follows:

• The cement industry has reduced its energy consumption by 27.5% since 1990 [Garas].

• The steel industry has reduced its energy consumption and CO2 generation with 50% and 60% respectively over the past 40 years [ESTEP].

• Steel can be generated from an integrated route or from a recycling route. To use the integrated route means to start with ore. The recycling route makes use of shredded material. The integrated route needs 18 GJ per ton of slab (hot steel product) while the recycling route needs about 2.5 GJ per ton of steel. The share of the recycling route has risen from 25% in the eighties to 41% today. The recycling route will be further increased as steel is fully recyclable.

• The impact of new product development on the energy consumption involved in steelmaking is very low. However, a reduction of energy consumption at customer level, e.g. through the development of advanced high strength steel for the car industry, has a key impact. Similar developments are coming for the construction sector and for other industries (energy production, etc.).

• An alignment of plants of the best performers may yield 10‐15% of savings. • Further energy saving potentials lie in the continuous improvement in heat

recovery and waste steam utilisation and use of intelligent manufacturing technologies and ICT.

• The chemical industry sees in the improvement of reaction and process design a direct relevance for more energy efficient chemical production. Recent, accelerating developments in high performance computing, process systems engineering, chemical sensing technology and distributed process control


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will ensure that "insilico" techniques will have a revolutionary impact on the way the chemical industries operate in the next 20 years [Wohlleben].

• Modelbased catalysis can lead to substantial improvements (up to 50%) if fundamental process improvements can be achieved. But, this is usually not the case. Modelbased synthesis concepts (excluding catalysis) can also lead to significant improvements (e.g. 20%). Modelling can lead to energy efficiency improvements of around 5% (see for example the oil and petrochemical industry). Process analysers – frequently combined with modern process control strategies – could yield 10% of savings, e.g. through avoidance of off‐spec material. The above mentioned total savings potentials are deduced from experience with current applications [Förster].

ICT‐SUPPORTED MEASURES TO INCREASE ENERGY

The Consultation Group proposes the following ICT‐driven measures to support the required paradigm change towards more energy efficiency in manufacturing:

Measure To Manage

The management of energy efficiency calls for an alignment of goals, strategy, and metrics. This requires the creation of a metrics framework (including a common terminology) and key performance indicators (based on available and reliable information). Reliable information is essential for evaluation and decision making. Current statistical data are based on economic performance, rather than on energy efficiency considerations. The terminology is not coherent and statistical data are rarely comparable between industries. Information needed should for example include:

• Industrial data that also reflect the number of production sites, the number of supply chains, transportation costs compared with the revenue.

• Data about available equipment, like number of machine tools, actors and drives, their age, their energy consumption.

Metrification is the definition of measurable properties, especially those which should be quantified. They are used to describe and compare different facts as needed to get a full picture of energy efficiency in the different industries. An example for company oriented metrics could be EPIs (Energy Performance Indicators) used in the semiconductor manufacturing [SEI]. They can be set at management and operational level. Management EPIs generally relate to the overall control of significant energy use. Operational level EPIs relate to


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particular items such as production sites, equipment etc., and focus on specific saving opportunities. In the semiconductor industry, voluntary standard metrics exist (unit: kWh/cm2), which ensure a standardised measurement of energy consumption [ECCA ESIA]. Methodologies and (software) tools are proposed to support the following:

• A group of experts from different industries defines compatible metrics systems. This group should involve operators/end users, machine builders/OEM, suppliers of components, sensors and control systems and research institutes.

• Metrics are built with a clear focus on the physical availability and use of energy (resources in general), costs, and market value.

• From the point of production engineering it makes sense to consider total energy consumption by having absolute measures for the characterisation of production systems (machines, equipment) and components; production processes and technologies; and case specific discrete examination spaces.

Promote Best Practice

"Best practices" are a means where companies use benchmarking methodology and tools to learn about how problems are solved in other companies or industries. In the case of ICT for Energy Efficiency, it is proposed that the management of industrial energy efficiency is developed as an industry benchmark, e.g. through intelligent use of smart meters, sensor networks and controls, and widely promoted by industrial associations. Regular benchmarking results should be published and their development monitored. Benchmark leaders should be awarded.

Encourage Voluntary Agreements

It may make sense to start an energy efficiency industrial campaign with voluntary agreements between related partners. The benefit for all partners involved must be obvious. This is given in the case of energy efficiency and industry associations should take the lead. Examples for already existing voluntary agreements are:

• VDI 4602 Energy Management, October 2007 (in German and English): The guideline deals with terms and definitions. It describes besides of terms in the fields of energy provision, energy distribution, energy trading and energy utilisation also requirements for energy management systems and fundamentals.

• VDI 3922 Energy consultation for industry and business, 1998 (in German and English). This is a guideline for enterprises which use energy for manufacturing


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or transformation processes as well as for space heating. It can also be used by energy consultants.

• SEMI S23‐0705, Guide for Conservation of Energy, Utilities and Materials used by Semiconductor Manufacturing Equipment. The guide is intended to be a tool. It addresses measurement related to energy, utilities and material use of semiconductor manufacturing equipment. It also addresses continuous improvements for energy, utilities and material conservation.

Voluntary agreements have the benefit that they can be set up in a relatively short time. Through such voluntary arrangements ICT providers and industrial users could join efforts in developing ICT pilots and using them for joint benefit.

Envisage Essential Fast-Track Standardisation

Standards have a legal status when they are referenced in laws. It should be decided if such a legal situation is necessary in the case of the ICT sector given the time required for the standardisation process. An example of a relevant standard, currently implemented in Ireland, is I.S. 393:2005 ‐ Energy Management Systems, Technical Guideline: The standard has been developed to ensure that energy management becomes integrated into organisational business structures, so that organizations save energy, save costs and improve energy and business performance. Setting objectives and targets and the use of energy performance indicators (EPIs) at both management and operational level are seen as key activities. It is proposed to raise the issue of energy efficiency to the level of importance of quality (as standardised under the ISO 9000 series or the Capability Maturity Model (CMM) scheme in the field of software development). A European (CEN) or global (ISO) standard for the energy efficiency model, focusing on energy efficiency management needs, should be developed and deployed as soon as possible. It will facilitate benchmarking by type of industry and application; elements would help CEOs to make decisions and develop their plans [Electra], [De Maidagan]. Each company (including SMEs) could become certified under such a standard, thereby obtaining a competitive advantage.

Consider Carbon Tracing In Energy Labeling

While a systematic comparison of the energy efficiency of machine tools today is virtually impossible, the adoption of a standardised energy consumption measurement specification would help to overcome this situation. For example, a total energy consumption indicator could be defined and applied as an energy efficiency label on production machines. Such a label should exceed the traditional material removal processes (milling, turning) and cover a wide range


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of emerging process technologies. The label could become a powerful tool in influencing investment decisions of machine tool end users since they are the direct beneficiaries of reduced energy consumption. Regulatory effort combined with a harmonised metric could drive progress in the highly divided machine tool market. The European Commission should therefore stimulate efforts in this direction [Duflou]. Efforts to introduce such an energy (efficiency) label for machine tools require the involvement of industry, transparency regarding the evaluation criteria, and support to improving design capabilities (e.g. knowledge‐driven systems and self‐monitoring systems based on performance indicators). Energy consumption labeling is already available for a variety of products [EuP Directive]. These labels bear important information for consumers as a help to making purchase decisions. It is proposed to develop a manufacturing process label that extends existing energy labels on the operational energy use of products by including information on the efficiency of the manufacturing process. This way, an OEM or tier1‐supplier could evaluate the offers of suppliers and select accordingly. This would also empower the consumer in allowing him to choose a product on the basis of its overall carbon footprint.

Support Industry-Wide Deployment Of ICT Infrastructures And Tools For Energy Efficiency

Developments in microelectronics and embedded systems make it possible for networked embedded devices (with computational capabilities) to cooperate and provide almost real time information as a feedback to the (real) world of manufacturing in which they are operating. The goal should be to envisage the "energy aware factory". The following non‐exhaustive list provides examples of possible pilot cases that should be considered:

• Set up industrial demonstrators to showcase enterprise services that evaluate and assist in the optimisation of production planning and execution, based on dynamic energy loads, e.g. at production process level, at supply chain logistics level, etc.

• Support application pilots of market‐driven mechanisms and collaboration between ICT‐providers, energy providers and industrial users focusing on optimal energy use and/or the integration of distributed (alternative) energy provision in industrial end user companies.

• Encourage software management solutions for large‐scale infrastructures, e.g. for remote monitoring, remote diagnostics, predictive maintenance, etc. in energy‐intensive industrial sites.

• Support demonstrators of ICT‐enabled distributed micro‐factory networks, demonstrating energy efficiency of at least 50 %.


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• Set up environments (e.g. a Living Lab: web‐laboratory on Energy Efficiency Estimation – E³) to enable industrial users (SMEs in particular) to develop strategies for energy efficiency implementation and evaluation [Kuzman].

Regulatory Measures

It is proposed to accompany regulation on industrial energy efficiency reporting by suitable (e.g. effective) e‐government applications that facilitate electronic reporting on energy efficiency similar to a tax declaration.

DEVELOPING NEXT GENERATION ICTS FOR SMART MANUFACTURING

Energy efficiency in the manufacturing domain goes beyond simple stand‐alone approaches, e.g. peak load avoidance or single process/machine optimisation. It should be seen in a more holistic form, where local vs. global optimisations are supported by an ICT infrastructure that dynamically adapts to energy conditions and business plans. There are a number of R&D projects in the ICT domain addressing energy efficiency to a varying degree. In FP6, the following are relevant: EMMA, HYCON, SOCRADES, and WASP. In FP7, the following R&D projects are ongoing: AELUS, CHOSEN, FlexWARE, GINSENG, HD‐MPC, PECES, POBICOS, PRODI, and SM4ALL. Project SOCRADES, for example (Cross‐Layer SoA‐based Automation), works elaborates solutions for discrete manufacturing plants as well as for continuous production plants. This project works with sensor/actuator networks for control and supports factory‐wide energy efficiency at different levels [Konstantellos]. To realise a widespread use of research results, it is proposed not only to facilitate research itself, but also its (pilot) implementation after the duration of projects. The above mentioned potential energy savings require further research efforts. The following objectives address the specific needs.

R&D Needs In Discrete Manufacturing

Objective 1: Improve energy and material efficiency through better process stability

• Material saving is energy saving


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• Zero rejection production saves material and energy by avoiding failure production

• Recovery of by‐products and sustainable use of resources • Faster and safer (controlled) ramp up saves energy.

Objective 2: Improve energy and material efficiency in mechanical, thermal and chemical production processes through optimisation of maintenance and repair

• Substitute cutting with forming, and spot welding with clinching • ICT tools and techniques for Plant Asset Management • Intelligent drives: base load reduction, avoidance of peak loads through controls • Cheap and robust sensors.

Objective 3: Lossless infrastructure processes of production systems and factories

• Support the evolution of “Energy‐Optimised Supply Chains” through a coordinated optimisation of supply chain management, logistics and intra‐logistics.

Objective 4: Cost efficient “track & trace” approaches to control goods flows. These could be realised with RFID and sensor networks Objective 5: As energy costs are part of production costs they can influence the configuration and evaluation of global value added networks

• Develop methods to cope with the complex situation of cost networks with the aim of evaluating them from an energy perspective

Objective 6: Development of methods for a sustainable energy and material economy

• Total Energy Management (TEM). Objective 7: ICT‐enabled methods for the development of products which are energy efficient throughout their life time

• Design for Logistics, Design for Recycling and Reuse • Design for optimal energy use • Assistant systems with functionality to evaluate energy efficiency • LCA (Life Cycle Assessment) including energy efficiency of manufacturing,

recycling, maintenance and sustainability. Refine methodologies on energy & raw materials modelling (material flow analysis). Use of dynamic material assessment models.

• Energy cost as an aspect of Life Cycle Management/Total Cost of Ownership • Knowledge support systems and self evaluation systems based on clear

performance indicators


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• Energy efficient components, sensors, diagnostic and energy monitoring systems and their integration into plant asset management.

Objective 8: PLM (Product Lifecycle Management) has to be extended by functionalities which support energy monitoring and saving

• Today's PLM systems are mainly implemented at the product development phase, but need to be extended to cover also the needs of production and the use phases. Filtering systems can help store and retrieve energy related data.

Objective 9: ERP systems tuned to energy efficiency needs

• Modern Enterprise Resource Planning (ERP) systems incorporate resource planning and business processes of the entire enterprise. The elimination of incorrect information, data redundancy and the optimization capabilities they provide can lead to significant inventory optimisation and material savings in various manufacturing systems

• Apart from better shop‐floor scheduling and production planning of the manufacturing system, optimising the energy efficiency of a manufacturing system is still an important challenge for ERP systems. Furthermore, ERP systems often provide both Supply Chain Management (SCM) modules and interfaces for interacting in an integrated way with external information technology systems. A challenge for SCM systems could be the reduction of energy consumption due the transport of goods, through an overall improvement of logistics processes.

Objective 10: PDM Systems tuned to energy efficiency needs

• (Digital) factory management uses Production Data Management (PDM) systems and simulation tools to optimise manufacturing at the planning phase. Energy efficiency is currently not considered.

Objective 11: Towards a holistic understanding (comprehension) of manufacturing

• Towards holistic simulation; involving technical building services and building climate, production machines/material flow, and production management. Energy saving potentials have to be taken into account at different levels: (a) component level, field level; (b) machine level; (c) process and plant level

• Links need to be established between energy efficiency and other important parameters in manufacturing and synergies should be developed (better buildings, resource efficiency, light materials, intelligent components, effective maintenance, diagnostics, improved process quality, better safety, new service concepts and business models).


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• Methods to allow information to flow to where it is needed, e.g. for enterprise level and cross‐enterprise optimisation of energy consumption.

Objective 12: Improve sensing and computational methods for the management of large‐scale monitoring data

• "Soft" (embedded and energy autonomous) and "rugged" sensing devices, sensor networks and appropriate computational methods for large‐scale real time monitoring of rapidly changing production processes

• Interoperable ICT infrastructures that allow real time monitoring of energy consumption from the enterprise level down to the discrete device level.

• Adequate models for energy consumption prediction and simulation at each layer, e.g. device level or process level.

Objective 13: Intelligent drives [SMART 2020]

• For standardisation, monitoring and accounting: power electronics chips for variable speed drive (VSD) intelligence, digital metering and components for real time information, e.g. energy audits integrated with business software, central collection of real time energy data, and interfaces with monitoring agencies

• Software to analyse and optimise the design of motors and motor systems in industrial systems

• CIRP, the International Academy of Production Engineering, has generated a working group which is named CO2PE! (Co‐operative Effort on CO2 Process Emissions). Its aim is mainly to utilize ICT in an appropriate form to reach the set goal.

R&D Needs In Semiconductor Manufacturing

The semiconductor industry spends 20% of its annual revenues on R&D. The international semiconductor industry has a roadmap known as the ITRS (International Technology Roadmap for Semiconductors). It is the most important technology roadmap to set the direction for semiconductor R&D. It is written by over 1200 experts from around he world, and focuses on 16 topics such as design, lithography, test, metrology, and interconnectivity. It identifies technical challenges that must be overcome to continue semiconductor technology advances through 2020 and beyond [EECA ESIA]. Research needs include: ICT‐related systems such as smart metering that potentially improve the energy efficiency of facilities through moving to more and more demand‐controlled facility energy consumption.


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Model the complex manufacturing lines with regards to tool energy consumption and to substantially improve the overall energy efficiency. Breakthroughs are needed to maximize the utilization of the tools and load management in such a way that the sensitive fabrication processes are not disrupted. All levels of the factory need to be measurable; top level system‐to‐module management, tool‐to‐individual components/sub‐systems management. Sensors do exist to measure some, but not all, components of the subsystem. Smart metering is a real opportunity for the industry. There is some research starting in the industry to investigate manufacturing of 450mm wafers versus the currently used 300mm. This requires close research partnerships between silicon wafer manufacturers, the semiconductor manufacturers and integrated circuit manufacturers.

R&D Needs In The Process Industries

Research approaches need to focus on a breakthrough to generic, low cost, fast, first‐principle‐based modelling methodologies for complex continuous flows and batch processes as well as for lifecycle management. De‐novo design would allow efficient consideration of completely new materials as well as cost efficient, flexible, clean and energy efficient (bio‐) chemical processing with improved yields, reduced waste and maximum recycling. A major challenge is the modelling of complex systems and systems representing different scales. This is a prerequisite for process modelling tools meeting the needs of current process technology directions. R&D objectives include: Development of a library of predictive constitutive models with the capability to generate the necessary models of different scales of size, form and application for a wide range of problems at a fraction of the time and resources spent currently; Systematic fitting of models to experimental data including model structure discrimination and model‐base experimental design; flexible and generic framework (architecture) for a computer‐aided modelling system useable by all disciplines; Plug & play of models from various sources and of various sizes. Emphasis should also be given to an efficient use of models – that is, how to obtain innovative solutions from model‐based approaches. If the model is simply used to replace an experiment, while some savings in time can be achieved, it is doubtful if innovative solutions can be found. Again many of the discrete manufacturing ideas are directly applicable to the process industries.


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CONCLUSIONS ICT is the key enabler for the manufacturing industries as highlighted in this report, in discrete manufacturing, semiconductor manufacturing and the process industries. Planning, development, operation and monitoring of manufacturing processes are already performed in symbiosis with ICT. To further continue to develop these domains in close connection with ICT it will be mandatory to have a holistic perspective that covers the economy, employment and the environment. The report also shows that the contribution of ICT to today's energy savings and its potential for the medium term is significant. Achieving a paradigm shift from “maximum gain from minimum capital to maximum added value from a minimum of resources” requires a new way of thinking which needs to be promoted. Only a holistic view to manufacturing processes will lead to a new comprehension. To get there requires measures that concern specific domains of the factory, but also the factory as a whole including supply chains and suppliers. This new thinking must also take into account the dependence of material use on energy consumption. It requires a combination of approaches from ICT with disciplines such as mechanical engineering, economics and ecology. Interdisciplinary actions will be needed. In short term, the following measures should be initiated: As information is essential for the management of energy efficiency, information on energy consumption should be collected and made available. Such an information base is essential to measuring, planning and organisational change across the economy. Creating and promoting a public repository of energy efficiency measures and opportunities would help generating the appropriate mindset. An efficient energy efficiency certification scheme for companies requires a standardised approach. It could be built in analogy to standards for quality management. Such a scheme could soon become the basis for energy efficiency thinking within industry. It could shape company behaviour and provide competitive advantage for lead users. Also, educational methods are useful. E‐learning modules could help spread the word quickly within industry. Energy labelling requires an extension from products (today) to include processes (tomorrow). It would complement the picture for responsible behaviour of sustainability‐minded consumers. Energy efficiency reporting (e‐government application) could be a useful tool for policy makers. Some prominent pilot projects demonstrating the symbiosis between ICT and manufacturing should be started soon. In the long run, R&D for the development of new ICT to support simulation, modelling, large‐scale (wireless) monitoring and control would be an essential contribution to further reduce the carbon footprint of manufacturing.


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ANNEXES TO ICT FOR ENERGY EFFICIENCY IN MANUFACTURING Annex 1: Agenda and List of Participants

Consultation Group Meeting

3 July 2008

Avenue de Beaulieu 33, Room 0/54, 1160 BrusselsAgenda

Objective: The Commission, through a consultation process with stakeholders, aims to investigate opportunities offered by ICT to increase energy efficiency (EE) throughout the economy. As nearly one third of global energy demand and CO2 emissions is attributable to manufacturing, a systems approach enabled by ICT that transcends process and sector boundaries seems to offer significant potential for savings. 10.00 Welcome Dr. Augusto de Albuquerque, Head of Unit "Microsystems", European Commission 10.10 Introduction by the Chair: The German Background Study “Energy Efficiency in Manufacturing” Prof. Dr. Reimund Neugebauer, Director, Fraunhofer IWU, Chemnitz 10.40 Examples of ICT Driving Energy Efficiency in Manufacturing: Ms. Silke Hermanns, AMD Dresden Dr. Bazmi Husain, ABB Corporate Research, Sweden Mr. Barry J. Kennedy, Intel Ireland Dr. Wendel Wohlleben, BASF, Germany 12.00 Discussion: How to achieve the 20% energy efficiency target in manufacturing by 2020 ? In which way can ICT be instrumental in this process ? 12.30 (Net)working lunch 14.00 Rapporteur’s summary of written suggestions Prof. Dr. FrankLothar Krause 14.30 Participants' statements All participants 15.30 Wrap up & next steps 16.00 Close of meeting ‐‐‐‐‐‐‐‐‐‐‐ Meeting organisers: European Commission, DG Information Society and Media Gisèle RoesemsKerremans, Unit G1 – Nanoelectronics Erastos Filos, Unit G2 Microsystems/Intelligent Manufacturing Systems Alkis Konstantellos, Unit G3 – Embedded Systems and Controls

Title Last Name First name Institution Function Country

Dr. Bredau Jan Festo – Research Department Future Technology Germany

Dr. Charbonnier Jean-Claude Steel Technology Platform (ESTEP) Secretary General France

Dr. Chrysostomou Antigoni IBM Germany


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Prof. Dr. Chryssolouris George

University of Patras, Department of Mechanical Engineering and Aeronautics

Director, Technology Platform MANUFUTURE Greece

Prof. Dr. Cser László

Faculty of Business Administration / Institute of Information Technology Head of Institute Hungary

Dr. De Maidagan Xabier CIC Margune General Manager Spain

Prof. Dr. Duflou Joost

Centre for Industrial Management/K. U. Leuven Belgium

Mr. Ganz Christopher ABB Group Control & Automation Research Switzerland

Dr. Garas Fikry Garas Consultants Ltd UK

Mrs. Garczynska Magdalena CECIMO aisbl Head of Technical Department Belgium

Ms. Göschel Angela

Fraunhofer Institute for Machine Tools and Forming Technology IWU Germany

Ms. Hermanns Silke AMD EPR Programme Manager (Europe) Germany

Dr. Herrmann Christoph

Technische Universität Braunschweig

Management Board/Head Product- and Life-Cycle-Management Germany

Dr. Karnouskos Stamatis SAP AG SAP Research Germany

Mr. Kennedy Barry J. Intel Ireland

Prof. Dr. Krause Frank-Lothar

Formerly with Fraunhofer IPK, Berlin Rapporteur Germany

Prof. Dr. Kuzman Karl

University of Ljubljana, Faculty of Mechanical Engineering

Head of Manufacturing Technologies & Systems Slovenia

Mr. Lee Carlos SEMI Europe Senior Manager, Brussels Office Belgium

Dr. Manninen Jussi VTT, Process Chemistry Technology Manager Finland

Prof. Dr. Neugebauer Reimund

Fraunhofer Institute for Machine Tools and Forming Technology IWU

Director of Institute, Chairman Germany

Ms. Sartiaux Delphine SEMI Europe Belgium

Dr. Wohlleben Wendel BASF AG Technology Platform Sustainable Chemistry Germany


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Contribution only

Ms. Knast Joanna Motorla Inc. EU Affairs Executive Belgium

Mr. Miller Gerhard Infineon AG

Senior Director Consumer & Industrial Power Semiconductors Germany

Annex 2:References and Contributions

[ABB] Husain, B. and Ganz, Chr., ABB Corporate Research: ICT Contribution to Energy Efficiency in Manufacturing Industries

[AMD] Hermanns, S., AMD: Energy Efficiency in the Manufacturing of High Performance Microprocessors – the Dresden Experience

[CECIMO] Garczynska, M., CECIMO: Energy Efficiency in Manufacturing: The Role of ICT, 14 July 2008

[Chryssolouris]

Chryssolouris, G., University of Patras: Draft Contribution to the Consultation Meeting

[COMPR AIR]

Compressed Air Systems in the European Union, 2001, ISBN 3‐932298‐16‐0

[De Maidagan]

De Maidagan, J., CIC MARGUNE: Energy Efficiency in Manufacturing: The Role of ICT

[Duflou] Duflou, J., K.U. Leuven: Towards a Reduced Energy Consumption in the Manufacturing Sector: An ICT Facilitated Approach Additional input provided via email to Erastos Filos, 15 July 2008

[EECA ESIA]

EECA ESIA, European Semiconductor Industry Association

[Electra] Twenty Solutions for Growth and Investment to 2020 and Beyond, 2008: http://ec.europa.eu/enterprise/electr_equipment/electrareport.pdf Annex 1 ‐ Statistical Analysis, 2008: http://ec.europa.eu/enterprise/electr_equipment/electrareport_annex1.pdf Annex 2 – Report of WG1: Energy Efficiency and CO2 Reduction as Drivers of Innovation, 2008: http://ec.europa.eu/enterprise/electr_equipment/electrareport_annex2.pdf

[ESTEP] Charbonnier, J‐C.: Towards an Additional Reduction of Energy Consumption in the Steel Sector


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[EuP Directive]

Directive 2005/32/EC on Eco Design for Energy Using Products

[Festo] Bredau, J., Festo: Email to Frank‐Lothar Krause, Erastos Filos, Matthias Putz and Reimund Neugebauer, 21 July 2008

[Filos] Filos, E., European Commission, DG INFSO: Overall report editor [Förster] Förster, A., DECHEMA e.V: Email to Frank‐Lothar Krause, Wendel

Wohlleben and Jussi Manninen, 18 July 2008 [Garas] Garas, F., Garas Consultants Limited: Issues related to Energy

Efficiency [Herrmann]

Herrmann, Chr., TU Braunschweig: Energy efficiency in manufacturing systems

[IBM] Chrysostomou, A.: IBM's Energy & Environmental Efficiency Model and related ICT Concepts Additional input provided via email to Frank‐Lothar Krause and Consultation Group members on 22 July 2008

[Infineon] Miller, G., Infineon Technologies AG: Infineon Power Products Help Improve Energy Efficiency in Many Application Fields Pophal, C., Infineon Technologies AG: Energy Efficiency in Semiconductor Manufacturing at Infineon Technologies

[Kelm] Kelm, G., European Commission, DG INFSO: Presentation [Kidd] Kidd, P. T., Cheshire Henbury: Contribution to the Consultation on

Energy Efficiency in Manufacturing: The Role of ICT [Konstantellos]

Konstantellos, A., European Commission, DG INFSO: Presentation

[Kuzman] Kuzman, K., University of Ljubljana: Energy Efficiency Analysis of a Manufacturing Chain

[Manninen] Manninen, J., VTT: Achievable Gains in Energy Consumption of Manufacturing Processes Bernstein, L. et al.: Industry, in: Metz, O. R. et al. (eds.): Climate Change 2007: Mitigation. Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, United Kingdom and New York, NU, USA Gupta, S. et al.: Policies, Instruments and Co‐operative Arrangements, in: Metz, O. R. et al., 2007

[MANUFUTURE]

MANUFUTURE ‐ A vision for 2020. Assuring the future of manufacturing in Europe, 2004, ISBN 92‐894‐8322‐9


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[Motorola] Scott, L., Motorola: ICT and Energy Efficiency in Smart Manufacturing

[Neugebauer]

Neugebauer, R.: Closer Linkage of ICT and Manufacturing Towards Resource Efficiency‐driven Manufacturing Neugebauer, R. et al.: Studie EffPRO ‐ Energieeffizienz in der Produktion, Untersuchung zum Handlungs‐ und Forschungsbedarf, Fraunhofer‐Gesellschaft München, 2008

[SAP] Karnouskos, S., SAP and Lastra, J., Tampere University of Technology: Towards Energy‐aware Future Factories

[SEI] Energy Management Systems, I.S. 393: 2005: Technical Guideline, Sustainable Energy Ireland, December 2006

[SEMI] SEMI S23‐0705: Guide for Conservation of Energy, Utilities and Materials Used by Semiconductor Manufacturing Equipment, 2005

[SMART2020]

Smart 2020: Enabling the Low Carbon Economy in the Information Age, The Climate Group, GeSI, 2008, http://www.gesi.org/

[Wohlleben]

Wohlleben, W. and Iden, R., BASF: Strategies for More Energy Efficiency in Manufacturing: The SusChem Research Agenda

[ZVEI] ZVEI, Energiesparen mit elektrischen Antrieben, 2006


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3 ICT FOR SMART

BUILDINGS


Edited by Jose‐Javier de las Heras / Acciona

Alain Zarli / CSTB


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Building / Building Construction: to be considered in the whole document in a broad perception, which includes houses, residential buildings, office buildings, large infrastructures (harbours, airports, etc.), facilities like tunnels, and up to Urban management. Moreover, Buildings refer to all types of buildings, whether they are new, or being used or to be renovated, either they are residential, tertiary, or industrial. For the sake of simplicity, we will refer in the rest of the document to “Construction” for Buildings, Built Environment and (smart) Facilities.

Smart Building: a new concept of Buildings18 integrating technologies for ambient access19 to all building information made available to all stakeholders anytime and anywhere, and regardless of physical location: office, construction site, home, etc. they are buildings with ICT systems intimately integrated with everyday environments and supporting people in their activities or their daily life. Wireless and powerless sensors should support future “smart, self‐configuring and self‐adapting home / building”, users needs and requirements (including evolution of users’ profiling) will require special attention, based on advanced technology like pattern recognition and uncertain reasoning. Smart Buildings take into account not only the infrastructure of the building itself (envelope, energy, networks), but also its users (private or professional space) and their needs for communication and services. “Energy‐efficient smart building” are to be smart buildings with an optimal management of building energy flows, and over the whole lifecycle, i.e. from construction, through occupancy (between 50 to 100 years) and through demolition (and re‐use).

Building Automation: this is a systemic approach that increases and monitor, especially through integration, the interaction of part or all components in the building (mechanical subsystems, elements of the envelope, equipments, and tomorrow embedded systems), so as to improve functions and/or performance of the building (occupant comfort, lower energy use, on‐site and off‐site building control, etc.). As the building of tomorrow is to be a more and more a complex combination of multiple monitoring and control systems, with connection of disparate systems, building automation is the way to ensure in the future an improved and reliable supervision of buildings.

Building Control / Management System: a system (or an integrated set of systems) that allows in Buildings to deploy and operate Building automation. For instance,

18 See ECTP FA7 “Processes & ICT” SRA for a more detailed definition.

19 Ambient access stems from the convergence of 3 key technologies: 1) ubiquitous computing, 2) ubiquitous & secure communication, and 3) intelligent user‐friendly interfaces.


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typically used in smart buildings to automatically control and adjust the space heating and cooling, the lighting, etc..

INTRODUCTION

Information and Communication Technologies (ICT) have an important role to play in reducing the energy intensity20 and therefore increasing the energy efficiency of the economy, in other words, in reducing emissions and contributing to sustainable growth. Indeed emerging changes offer the possibility of modernising the European economy, towards a future where technology and society will be attuned to new needs and where innovation will create new opportunities. ICT will not only improve energy efficiency and help combat climate change, they will also stimulate the development of a large leading‐edge market for ICT enabled energy‐efficiency technologies that will foster the competitiveness of European industry and create new business opportunities. As ICT is today pervasive to all industrial and business domains, it is expected to generate a deep impact in the energy efficiency of buildings of tomorrow (should they be new or renovated).

This document focuses in ICT as a support to energy efficiency in the so‐called smart buildings. Moreover, the focus is on the building itself, including equipments and devices, the envelope, and the potential connection with the outside (e.g. electric grids). It also includes considerations from a Urban point of view, but on the other hand, it does not go beyond potential borders with other themes targeted by the other Concertation Groups. As an example, if we consider the embodied energy in buildings and building materials, it is considered that about 10% of all CO2 emissions globally come from the production of building materials. In particular steel, concrete (cement), bricks and glass require very high production temperatures that can only be reached today by the burning of fossil fuels. However, this is considered to be in the domain of Manufacturing, even if future interfaces with the Construction domain will be naturally investigated.

It is clear that, if Europe is to succeed and achieve its ambitious objectives21, the role of ICT as an enabler of energy efficiency across the economy22, needs to be fully explored and exploited: Europe needs to ensure that ICT‐enabled solutions will be:

20 this is a measure of energy efficiency of a nation´s economy: EI = Energy units/GDP =MJ/$.

21 As defined at various levels, should it be European (e.g. reducing Energy consumption by 20% by 2020), or national, e.g. in France with the “Grenelle de l’Environnement”: for new houses/buildings, all to be Positive Energy Buildings (PEB) by 2020, with 1/3 with max 50 KWh/m2/an and 10% being PEB ; for non‐residential buildings, 50% with less than 50KWh/m2/year and 20% being PEB. For existing houses/buildings, decrease by 2020 the average consumption down to 150 KWh/m2/year (today: 240 KWH/m2), and for non‐residential buildings, by 2020, down to 80 KWh/m2/year (today: 220 KWh/m2/year).


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- available:, in addition to developing the necessary individual components , and more has to be done in terms of system integration and proof of concept;

- fully deployed: this means initial deployments in terms of assessment and feedback, and further generalisation of deployments in the built environment;

- operational: all stakeholder should have them installed and perfectly operating, and users aware of these systems and being able to ‘behave with them”, which will probably lead to drastic change in users’ behaviours.

In order to put ICT at the core of the energy efficiency effort and to enable them to reach their full potential, it is necessary to foster research into novel ICT‐based solutions and strengthen their take‐up — so that the energy intensity of the economy can be further reduced by adding intelligence to components, equipment and services. Therefore, it is essential, as expressed several times through European Commission communications, to reinforce multidisciplinary RTD involving researchers from the ICT, the energy and the building domains, to foster the use of national and regional programmes for the deployment of ICT‐enabled research results (like large‐scale pilots of energy management systems for public and commercial buildings), and to support awareness raising and foster exchanges of information involving these issues23.

According to the European Union Directive on the energy performance of buildings (EPBD 2002/91/EC), more than 40% of the energy consumption in Europe is due to heating and lighting operations within buildings. Moreover, buildings are the largest source of CO2 emissions in the EU15 (including their electric power consumption), and their total energy consumption has been rising since 199024.

The majority of energy consumption is due to space and water heating within households as illustrated within, although the share of consumption of lighting and appliances is rising over time (this situation is similar within the service sector although the share of lighting and appliance consumption is higher than in households due to greater utilisation of ICT equipment).

22 Which includes fostering the change in citizen's behaviour, as well as in improving efficiency in the use of natural resources while reducing pollution and dangerous waste.

23 http://ec.europa.eu/information_society/activities/sustainable_growth/docs/com_2008_241_1_en.pdf

24 Fourth National Communication from the European Community under the UN Framework Convention on Climate Change (UNFCCC). http://unfccc.int/resource/docs/natc/eunce4add.pdf


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FIGURE 1: SOURCE: ODYSSEE PROJECT ON ENERGY EFFICIENCY INDICATORS IN EU25.

Buildings can be considered as energy‐intensive systems through their whole life‐cycle, being particularly important figures the ones related to the building operation phase, as seen in Figure 2.

FIGURE 2: ENERGY CONSUMPTION AT EACH STAGE OF THE BUILDING LIFECYCLE.

Concerns (and therefore solutions) on Energy Efficiency exist throughout the whole construction product life cycle (PLC). In each stage of the PLC one can overlook solutions and approaches that positively contribute to more Energy Efficient buildings.

Roughly one can consider three main phases in the construction PLC, namely the design phase (early and detailed design and engineering), the realisation phase (construction itself) and the support phase (maintenance, renovation, etc). Through out each of the phases of the PLC, several considerations in respect to Energy Efficiency (EE) of buildings could be set, namely:

25 http://www.odyssee‐indicators.org


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• Design Phase: At design phase the focus on EE should be on realising the best efficient design considering the many variables to be potentially taken into account (health and comfort performance, building costs, whole life costs, etc). For a designer and engineer (D&E), and from the Energy Efficiency (and also Sustainability) view point, the need is to have comprehensive (account the many variables at stake) and enhanced (with enriched knowledge) Energy Efficiency analysis and simulation services in order to optimize (e.g. by testing alternate design solutions, changing materials, trialling distinct scenarios, etc.) the overall design towards a more suitable design, that presents the optimal energy efficiency levels while considering the many competing dimensions under concern.

• Realisation Phase: At realisation, the first aspect is the procurement activities, and the need for the establishment of a Sustainable Procurement process, evolving from the typical price and quality criteria to account in the case the energy efficiency of purchased materials. Another aspect that is of major importance for the authorities (and therefore for construction stakeholders) is the conformance assessment of a building in view of existing codes and regulations for Energy Efficiency, enabling e.g. the establishment of rankings that would set distinct taxation levels given the level of efficiency, or to adapt building codes and regulations for EE to the specific characteristics and properties of given locations or applications.

• Support Phase: From the support phase view point, one can distinguish from two kinds of processes that greatly impact on Energy Efficiency of buildings – Operation and Renovation. From an operation perspective, there is much that the so‐called smart buildings can perform to support a more efficient operation, namely by the supervision using networked ambient intelligence and control of building devices and systems (e.g. HVAC, lighting, shading, etc.) to maintain comfort and operative levels while being more Energy Efficient. Considering Renovation, the important aspect is on how to support the reformation of existing buildings towards being more energy efficiency performing thus towards sustainable modernisation and renovation of buildings. A report on “Building Renovation and Modernisation in Europe” has been issued by OTB (Research Institute for Housing, Urban and Mobility Studies) under the umbrella of ERABuild, focusing precisely on sustainable renovation looking at current practice and exploring research opportunities and challenges for the sector, that includes views into energy use and savings.

Efficiency at Support(EE Operation, EE Renovation)

Efficiency at Realisation(EE Procurement, EE Checking)

Efficiency at Design(D&E for Energy Efficiency)

RealisationPhase

DesignPhase

SupportPhase

FIGURE 3: BUILDING PRODUCT LIFE CYCLE PHASES AND ENERGY EFFICIENCY.


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Taking into account the targets agreed for 2020 in the European Council in 200726, reducing the energy consumption in the buildings is an unavoidable issue to approach in order to fulfil these challenges as stated in the Set Plan (European Strategic Energy Technology Plan)27 . In order to achieve this ambition, one of the most important aims that the European Commission points to in its communication “Addressing the challenge of energy efficiency through Information and Communication Technologies” (Brussels, 13.5.2008), is the use of ICT among other technologies.

According to a recent study28, the worldwide energy consumption for buildings will grow by 45% from 2002 to 2025 – where buildings account for about 40% of energy demand with 33% in commercial buildings and even 67% in residential buildings (see Figure 4). This study is also corroborated by national reports about Climate Change29, which identify the “diffused sectors”30 as the main contributors to Greenhouse Gas Emissions in the next year. The reduction of energy consumption through the use of ICT as key enabler technology is expected to be about 15% in the next years.

26 The targets are as follows: 20% reduction in emissions compared to 1990 levels; 20% share of renewable energies compared to projections in overall EU energy consumption; and 20% savings in EU energy consumption compared to 2005

27 http://ec.europa.eu/energy/res/setplan/communication_2007_en.htm

28 SMART 2020: Enabling the low carbon economy in the information age. The Climate Group

29 “Estrategia Española de Cambio Climático y Energía Limpia. Horizonte 2012”. http://www.mma.es/portal/secciones/cambio_climatico/documentacion_cc/estrategia_cc/pdf/estrategia_esp_ccel.pdf

30 “Diffused Sectors” are characterized by compiling a lot of small sources of Greenhouse Gas Emissions and energy consumptions. Typical examples of “diffused sectors” are transport, building or agriculture.


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FIGURE 4: WORLDWIDE ENERGY CONSUMPTION FOR BUILDINGS.

The report estimates contributions to that reduction figure from different technologies and policies emphasizing that ICT tools for the improvement of energy efficiency in buildings at a design phase and smart building management systems could have the biggest impact.


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MISSION OF THE CONSULTATION GROUP

The overall aim of the Smart Buildings Consultation Group is to identify and investigate ways in which ICT can contribute to energy efficiency in the Building and Construction sector, and to identify actions that the Commission can take to reinforce this contribution and accelerate its impact.

The conclusions drawn by this concertation Group (through this document and based on various exchanges between well‐identified key stakeholders, as introduced below) will indeed feed the outcomes of a (high level) advisory group aiming at providing information on potential as well as recommendations to the EC in terms of ICT for Energy Efficiency. This concertation group is also to be seen, from the “Construction ICT” side, as the channel for involving DG INFSO in the activities the Construction sector needs.

The main targeted achievements of the concertation group are:

− Provide a *preliminary* set of references about potential current data and trend analysis of the impact of ICT on EE in the Building sector, taking into account good practices applied worldwide. However, it seems still today difficult to find exhaustive useful references to proven data, but the group should at least provide with some links and demonstrate that this is an ongoing activity in the community: There are various sources about the distribution of energy usage in buildings e.g. convection through the envelope, windows, air leakages, ventilation, lighting, hot water generation, sewage (warm waste water), micro‐generators, thermal storage, etc.. This group will explore the (indirect) relations of all these items with ICT e.g. tools for analysis, design, simulation etc. but also new embedded systems based techniques for control and actuation.

– Provide early drafted RTD roadmaps and priorities, potential actions that the Commission could take that would intensify/accelerate the existing trend, including awareness raising and sharing of good practices.

Group participants composition / structure

The structure of the Group is synthesised in the table below:

Chairman

José Javier de las Heras (Acciona)

Rapporteurs

Alain Zarli (CSTB), Matti Hannus (VTT)

Industry

(12 members)

Academics & Research Centers

(8 members)

Associations of stakeholders

(4 members)


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Chairman: Jose‐Javier De Las Heras, Acciona ([email protected]) – "representing" the group in the more horizontal group (AdHoc Advisory Group on ICT for energy efficiency) that will advise the i2010 HLG.

Rapporteurs:

- Alain Zarli, CSTB ([email protected])

- Matti Hannus, VTT ([email protected])

Industry

Company Country Participant name Participant mail

Acciona Spain Jose‐Javier De Las Heras

[email protected]

ARUP UK Marta Fernandez [email protected]

OPB (OBERMEYER PLANEN + BERATEN GmbH)

Germany Dr. ‐Ing. Rudolf Juli

[email protected]

Philips NL Eliav I. Haskal [email protected]

Schüco International KG

Germany Christian Glatte [email protected]

Orange‐FT France Gilles Privat gilles.privat@orange‐ftgroup.com

Atos Origin (Atos Research & Innovation)

Spain Mélanie Biette

[email protected]

Mostostal Poland Pawel Poneta [email protected]

T‐Online

(with Eotvos Lorand University Budapest)

Hungary Akos Kriston [email protected]

Alcatel‐Lucent Bell NV

Belgium Sven Claes Sven.Claes@Alcatel‐Lucent.com

Bouygues France Claude Lenglet [email protected]

ISA Portugal Jose Basilio Simoes [email protected]

Academics & Research centers

Company Country Participant name

Participant mail

CSTB France Alain Zarli [email protected]


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VTT Finland Matti Hannus

[email protected]

TU Delft Netherlands Wim Gielingh

[email protected]

CEA France David Corgier

[email protected]

TU Dresden Germany Raimar Scherer

raimar.scherer@tu‐dresden.de

Labein Spain Juan Perez [email protected]

Fraunhofer/Univ. of Stuttgart

Germany Sven Schimpf

[email protected]

Uninova Portugal Pedro Malo

Celson Lima

[email protected]

[email protected]

Associations of stakeholders (end user associations, local governments,…)

Associations Country Participant name Participant mail

FIVEC / City of Valencia

Spain Manuel Martinez [email protected]

ECTP N/A Luc Bourdeau [email protected]

ECCREDI Belgium Johan Vyncke

Myriam Olislaegers

[email protected]

[email protected]

ACE/CAE31 Belgium Alain Sagne alain.sagne@ace‐cae.org

Though being not members of the Group, informal exchanges have also taken place with the following stakeholders:

Prince’s Foundation for the Built Environment

The Prince’s Foundation for the Built Environment is an educational charity which exists to improve the quality of people’s lives by teaching and practising timeless and ecological

http://www.princes‐foundation.org/

31 Architects' Council of Europe/Conseil des architectes d'Europe.


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ways of planning, designing and building, to reap improvements in public health, in livelier and safer streets and in a more affordable lifestyle for families and individuals.

EuroACE European Alliance of Companies for Energy Efficiency in Buildings, involved with the manufacture, distribution and installation of a variety of energy saving goods and services. The mission of EuroACE is to work together with the European institutions to help Europe move towards a more sustainable pattern of energy use in buildings, and therefore to reduce emissions of carbon dioxide, one of the principal climate change gases.

http://www.euroace.org/

UK Green Buildings Council

The UK‐GBC mission is to dramatically improve the sustainability of the built environment, by radically transforming the way it is planned, designed, constructed, maintained and operated.

http://www.ukgbc.org/

CIRIA ‐ Construction Industry Research and Information Association

CIRIA is a member‐based research and information organisation dedicated to improvement in the construction industry. It is a leading provider of performance improvement products & services in the Construction and related industries. CIRIA members include representatives from all parts of the supply chains of the modern built environment, covering building and civil engineering as well as transport and utilities infrastructure.

http://www.ciria.org.uk/

IEA ‐ International Energy Agency

The IEA acts as energy policy advisor to 27 member countries in their effort to ensure reliable, affordable and clean energy for their citizens.

http://www.iea.org/about/index.asp

Timetable of actions:

Actions Deadline In charge Comments

(optional)


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#1 Finalise Concertation Group

18/06 Acciona, CSTB Group can be extended even beyond the deadline.

#2 Participation to the ad‐hoc Advisory Group (1st meeting)

26/06 Acciona, CSTB

#3 Working report (draft) 30/06 Acciona, CSTB Mainly based on discussion and outcome from the REEB open Ws at I3Con conf. (15/04), and various documents, including from the EC.

#4 Comments by:

- All members of Concertation Group

- Relevant EC officials

21/07 ALL By mail.

EC officials contacted:

- DG ENTR: Antonio Paparella

- DG Research: Christophe Lesniak

- DG JRC, Institute for Energy Arnaud Mercier

#5 Participation to the ad‐hoc Advisory Group (2nd meeting)

24/07 Acciona, CSTB

#6 Interim report 31/07 Acciona, CSTB

#7 Concertation group workshop

(organised by REEB & ECTP/FA7)

11/09 Acciona, VTT, CSTB At ECPPM 2008 conference.

#8 Participation to the ad‐hoc Advisory Group (3rd meeting)

25/09 Acciona, CSTB

#9 Final report 30/09 Acciona, CSTB


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STATE OF THE ART OF ICT FOR SMART BUILDINGS

The R&D targeting the EE in future smart buildings is to be developed around the following fundamental pillars:

• The “intelligent” objects: these objects must have embedded electronic chips, as well as the appropriate resources (including potential OS or platform such as J2ME) to achieve local computing and interact with the outside, therefore being able to manage appropriate protocol(s) so as to acquire and supply information.

• The communications: these must allow sensors, actuators, indeed all intelligent objects to communicate among them and with services over the network. They have to be based on protocols that are standardised and open.

• The “smart BMS / ECMS32”: relying on embedded intelligent objects and communications, they are to be new systems characterised not only by improved features (e.g. optimising the equation EE/duration/cost), but being able to communicate by embedding appropriate tags (RFID, etc.), and to improve global monitoring of complex assembling of products and equipments in the built environment. They have to potentially allow dynamic control & (re‐)configuration of devices (based on strategies), through new algorithms and architectures for any configuration of smart devices (i.e. any set of such devices being inter‐connected) to be able to dynamically evolve according to the environment or change in a choice of a global strategy. Ultimately, networks of such BMC/ECMS are to be the foundations of self‐configuring home & building systems for EE, based on architectures where Component‐based in‐house systems learn from their own use and user behaviour, and are able to adapt to new situations, locating and incorporating new functionality as required, including the potential use of pattern recognition to identify and prioritise key issues to be addressed, and to identify relevant information.

• The multimodal interactive interfaces: the ultimate objective of those interfaces is to make the in‐house network as simple to use as possible, thanks to a right combination of intelligent and interoperable services, new techniques of man‐machine interactions (ambient intelligence, augmented/dual reality, tangible interfaces, robots, and so on), and learning technologies for all communicating objects. These interfaces should also be means to share ambient information spaces or ambient working environments thanks to personal advanced communication devices. They should adapt to the available attention of users, using and avoid overloading their "cognitive bandwidth" with unnecessary warnings or redundant feedbacks.

32 Building Management Systems / Energy Control Management Systems.


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The development of these pillars has to be based on the current legacy and State of the Art, which includes:

• Wired and wireless sensors: lots of various remote controlled devices, with the use of such devices (HVAC, lighting, audio‐video equipments…) being currently investigated in the built environment through preliminary deployment and experimentations.

• Wireless and wireline connection models & protocols: still under development and even more looking for harmonisation and standardisation (NFC ‐ Near Field Communication, Bluetooth, Wi‐Fi, RFID, ZigBee, Z‐Wave, en Ocean, PLC, etc.), they aim at establishing and managing communication between objects.

• Proprietary platforms & networks: current platforms implementing connected objects are mainly experimental platforms, with no standardisation of management of and communication between any kind of “intelligent” objects. There are already developments around de‐facto standard platforms or execution environments, but these are still mainly at an experimental level.

• “Dumb” legacy services: all services deployed by the industry so far are specialised / dedicated services that ensure one given function, without providing interoperability, and no capacity to “talk” with other services or to take into account the full environment.

• Multimodal context‐aware interfaces / devices: still few intelligent objects that are not intrusive and offer appropriate interfaces to allow the final user to seamlessly integrate the ubiquitous network.

The figure below synthesises the current state‐of‐the‐art regarding the identified pillars:


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FIGURE 5: TECHNOLOGIES FOR THE SMART BUILDINGS.

BARRIERS AND CHALLENGES AHEAD

As a first step, both problems and barriers for the ICT for Energy Efficiency massive deployment in buildings shall be identified. The following problem areas are identified33:

− Inadequate ICT‐based informed decision‐making (both human and automated) in the current delivery and use of sustainable and energy‐efficient facilities, with issues related to Data and Information (D/I): availability, appropriateness of D/I Source, reliability, D/I collection methods and integration, transfer (between actors and between applications), transformation, use and delivery to stakeholders, etc.;

− Current delivery and use of facilities do not necessarily lead to sustainable and energy‐efficient buildings, due to:

33 International Workshop on Global Roadmap and Strategic Actions for ICT in Construction. 22‐24 August 2007, Helsinki, Finland


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o Lack of (common) agreement of what sustainable and energy‐efficient buildings are;

o Too many standards regulating buildings that affect delivery and use, with some being in conflict with others towards achieving sustainability and energy‐efficiency;

o Lack of (common) agreement on holistic and systems‐based view of buildings, and of industry agreement on measurement and control;

o Too many options to choose from regarding environmental systems and their configurations;

o Decision‐making not supported by adequate information, in a context of complex and difficult automation.

− Need for occupancy feedback to user to enable behaviour modification towards sustainability and energy efficiency, including definition of user requirements and preferences, dynamic and personalized environmental controls, visualization of data associated with energy use, etc.;

− Need for management of energy types and distribution in buildings and urban areas, including integration of sources of energy, and balancing and optimization of energy sources and uses;

− Inadequate D/I on, and methods for establishing, sustainability, energy efficiency, and other attributes of materials and products used in facilities, including assessment, smart labelling, logistics, etc..

Additionally, some of the barriers identified34, related to future business models based on ICT, are:

− Lack of incentives for architects, builders, developers and owners to invest in smart building technology from which they will not benefit;

− Unclear business case and absence of business models supporting/promoting investments on energy efficiency: energy consumption is a small part of building cost structure, yet building automation costs can be high and payback periods are often long;

− The buildings sector is slow to adopt new technology – a 20‐25‐year cycle for residential units and a 15‐year cycle for commercial buildings is typical;

− A lack of skilled technicians to handle complex BMS – most buildings of less than 10,000 sq ft (930 sq metres) do not have trained operating staff;

− As each building is designed and built as unique, it is difficult to apply common standards for efficiency and operations;

34 SMART 2020: Enabling the low carbon economy in the information age. The Climate Group


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− Lack of incentives for energy companies to sell less energy and encourage efficiency among customers.

The current gaps and foreseen Research/ Technological challenges related to ICT for energy‐efficiency in the built environment include:

− Systems‐thinking, multi‐stakeholder, and multi‐disciplinary design and construction of sustainable and energy‐efficient facilities;

− Pre‐designed/engineered, replicable, and flexible environmental systems solutions, e.g. optimization, adaptation, and scaling to specific context applications, and configuration tools to do so;

− Cost‐effective deployment of specific ubiquitous sensing networks – along with the seamless adaptation of moving environment context, e.g. adding or removing resources;

− Incorporation of the human dimension (for instance, needs from the end‐users) in ICT, especially through solutions that are “accepted” by the user, e.g. with systems naturally interacting with the user (voice, avatar, …), with systems having the capacity to learn and adapt themselves to the way of living or working, with dynamic adaptability to the user specificity (handicap, health, age,…), etc. – overall issues related to human activity and energy efficiency, and to the design of interfaces accordingly;

− Adaptation to the user's instantaneous activity , situation and context;

− Understanding and development of quantitative tools that match reality;

− Scaled and selective mining, as well as visualisation, of D/I within large databases, along with integration of disparate databases;

− Development of mature cross‐domain / multi‐disciplinary software tools and ICT‐based services for industry;

− Development of formal models for performance metrics for sustainability and energy‐efficiency in buildings and urban areas.

ICT –ENABLED SMART BUILDINGS

Recent researches35 regarding intelligent management systems inside buildings, among other ICT applications, have shown that important energy savings can be reached using

35 Emerging Trend Update 3. The Role of ICT as Enabler for Energy Efficiency EPIS Work Package 1 – Deliverable 1.3 ETU. JRC


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these technologies. The use of these intelligent systems inside buildings can improve the control and management of heating, ventilation, air conditioning, lighting, and other energy‐hungry devices.

Applying novel ICT solutions for control systems and home automation promises to have an impact on electricity demand at the level of households and much more at the level of publicly owned buildings which are professionally managed. Building control systems enable the integrated interaction of a number of technological elements such as heating, ventilation, air conditioning, lighting, safety equipment etc. The embedding of ambient intelligence in building, thanks to advances in nanotechnologies, sensors, wireless communications and data processing contributes to for instance better temperature management, leading to reduced energy consumption.

Four key horizontal aspects of how ICT can improve energy efficiency of buildings are connectivity, flexibility, transparency, and miniaturisation36, leading to ambient intelligence.

During the ECTP/REEB37 Workshop held in Loughborough, UK as part of the I3CON Conference, stakeholders from the whole value chain including Energy Efficiency, ICT and construction pointed out the need of research initiatives targeting the topics described in the following sub‐sections:

5.1 Design and simulation tools

Integrating the whole life cycle of buildings into a holistic approach to improve energy efficiency is a usual demand from the stakeholders. However, little advances have been made on this topic. For that purpose, the use of Building Information Models including energy simulations across the entire life of the building is needed as well as using an appropriate ontology for the domain although due to the specific characteristics of construction sector will be very difficult to setup.

Studies undertaken in Europe highlighted that designers can achieve significant improvements in building’s energy performance if they apply ICT tools to plan buildings that minimize energy consumption – e.g. simulating and optimizing envelope measures and passive solar heating techniques ‐ designers can achieve significant improvements in building’s energy performance. In moderately cold climates, such as the ones of Central Europe, for example, heating needs can be reduced from over 200 kWh/m2/year to less than 15 kWh/ m2/year38.

36 Impacts of Information and Communication Technologies on Energy Efficiency. Bio‐intelligence Service

37 REEB (European strategic research Roadmap to ICT enabled Energy‐Efficiency in Buildings and constructions) ‐ FP7 funded project.

38 The potential global CO2 reductions from ICT use. Identifying and assessing the opportunities to reduce the first billion tonnes of CO2 – from WWF (World Wide Fund).


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In addition to the opportunities that derive from efficiency gains, such as the ones described above, reductions of GHG39 emissions can be obtained if new buildings are designed to also utilize, as much as possible, renewable energy sources available locally (e.g. with PV systems, solar heater systems, urban turbines or geothermal systems) or to utilize the grid when more renewable energy is being delivered to the grid.

Overall there is a significant potential to achieve efficiency gains and reductions of GHG emission with new buildings, where:

1. ICT tools can be deployed to design and plan buildings that fit within the environments in which they are built;

2. During their operational phase, advanced ICT solutions adapt the buildings’ behaviour and performance for optimisation taking into account the external environment and their users needs.

Based on previous experiences, a 40% reduction in the electricity consumption is expected40.

Although its impact is higher in new developments, design and simulation tools become an esential element in existing buildings refurbishment operations as they enable an assessment of the different solutions in order to choose the optimal for reducing building energy demand (by including for example, renewable energy technologies).

Such benefits could be even higher when ICT‐based design tools and embedded ICT technologies are applied not at a building scale, but at a larger scale to improve city planning or to design new communities. Thanks to improved processing power, data availability and software capabilities, ICT applications can be used to simulate and analyse holistically complex urban systems and seek solutions that increase quality of life while reducing overall energy use and generating a minimum amount of GHG emissions.

5.2. Interoperability/standards

Today, most control systems are based on micro‐processor technology. Sensors, for example, for determination of temperature or flow rates, are typically connected to the control system by wires. The algorithms implemented in the control system are wide ranging, from simple temperature difference control functions to complex self‐optimising strategies. The most significant weakness of current control systems is that, in most cases, separate controllers are used for each application. For instance, there are often three controllers for solar thermal, space heating and cooling, or the air‐conditioning system. Typically, the individual controllers operate separately, without exchanging information and, as a consequence, the building is not considered and

39 Green House Gas.

40 The potential global CO2 reductions from ICT use. Identifying and assessing the opportunities to reduce the first billion tonnes of CO2 – from WWF (World Wide Fund).


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controlled as one single system, but as a number of individual sub‐systems. This leads to sub‐optimal results in terms of energy flow, comfort, cost and controllability41.

The most appropriate solution would be one single control system, governing all HVAC, lighting and other electrical applications, and related sub‐systems installed in a building. The main barrier to this logical solution is the fact that the different sub‐systems are manufactured and often installed by different companies.

Furthermore, taking into account that the lifetime of a building is much longer that of an ICT system, upgrading operations will be difficult as there is still inadequate development of standardisation for the interfaces and communication, even between the sensors and actuators.

5.3. Building automation

In the area of home automation, which is primarily perceived as improving life quality (e.g. more comfortable, safer homes), ICT should contribute to energy efficiency through the use of improved control and management systems based on smart appliances and communication networks. In that sense, a recent report published by ChangeWave Research42, 31% of the companies interviewed identified building automation systems as the easiest way to reduce the energy usage. Individually adaptable building control would be required to improve user awareness about energy savings.

Building control systems are intended to improve the quality of comfort, health and safety conditions of indoor environments in an effective and efficient manner. In contrast to passive energy efficiency measures (e.g. insulation) and conventional heating/cooling technologies, building control systems have been introduced to ensure the integrated interaction of a much broader range of technological elements (HVAC ‐ heating, ventilating, air conditioning ‐ lighting, life safety equipment, architecture), and of humans who live/work in them in order to influence the indoor environment. Recent developments in nanotechnology (e.g. windows, surfaces), sensor/actuator technology, wireless communication technology, and data processing and control have enabled the embedding of ambient intelligence in buildings.

Energy efficiency may not be the only motivation behind the introduction of building control systems, but it is certainly an important one, driven by cost considerations too. Moreover, in professionally managed building, cost considerations tend to support the interest in reducing energy (and electricity) consumption. Although the initial investments in advanced building control systems can be quite significant, declining costs for sensors, actuators and ICT equipment in conjunction with the cost savings over the life‐time of the equipment tend to make the introduction of building control systems a promising investment. Investment in intelligent building control systems must be compared to other investment options in energy efficiency. Moreover, the right level of sophistication needed for building control systems may be a source of debate. Comparatively simple building control systems may be sufficient to reap quite

41 European Solar Thermal Technology Platform Strategic Research Agenda

42 http://blog.changewave.com/2008/04/huge_shift_corporate_energy_use.html


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significant economic benefits. This is a strong argument especially in relation to the upgrading of existing buildings, where the retrofitting of major new physical components may be difficult, but some soft ICT‐based measures are comparatively easy to implement.

For instance, ICT applications for heating management have a high potential impact on the rational use of heating energy. Heating accounts for roughly 30% of total energy consumption, and the most effective conservation measures using physical materials tend only to be applied to the small annual share of buildings that is renovated or newly built. ‘Soft measures’ using ICT (such as intelligent heating systems) have the advantage of being applicable in all kinds of buildings, both old and new, and could therefore have a significant effect. The use of ICT applications for heat management should therefore be a priority for future research and development.

It is worth mentioning that recent studies have shown dissimilarities (and therefore exhibited different figures) according to the type of buildings:

Case Study: Residential HVAC: it is assumed that ICT‐enhanced HVAC system optimization could reduce the annual energy consumption of HVAC in EU‐27 residential buildings by 8.0% to 17.0% which correlates to 16 Mtoe to 70 Mtoe respectively.

Case study: Commercial HVAC: In that case, one can assume for service sector HVAC systems a realistic average annual savings by 20% or about 18.5 Mtoe by the year 2020. This equals 23.7 Mt CO2 eq. emission.

5.4. Smart metering

Smart metering enables more accurate measurement of consumption via the use of advanced meters which are connected to a central unit through a communications network, improving data collection for billing purposes. In addition smart metering provides information on consumption patterns contributing to more sustainable consumption and energy savings.

A smart meter generally refers to a type of advanced meter that identifies consumption in greater detail than a conventional meter, and communicates this information via the network back to the local utility for monitoring and billing purposes (Automated Meter Reading, AMR). Using smart meters merely for data collection and billing purposes does not fully exploit their potential. In fact smart meters close the information gap for understanding energy use pattern and implementing more efficient control mechanisms. They are offering to the customers (of both electricity and gas) the following additional advantages:

• More accurate bills (i.e. avoid bills based on estimated use);

• Information that could help them use less energy and encourage investment in energy efficiency;

• Lower costs through reduced peak consumption, because this would reduce the need for new network investment;

• Increased security of supply because the less energy is used, the less is needed;


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• More sustainable consumption through reduced carbon emissions.

Smart metering systems are being marketed by commercial companies, allowing for instance comparison of energy consumption between branches of a company, or enabling individual users to see their consumption pattern and adopt appropriate measures for energy saving.

In most European countries energy consumption is still measured with conventional or induction‐type, meters that can only measure the overall consumption. With these meters it is, therefore, not possible to measure the individual energy demand over time. The EU directive on energy end‐use efficiency and energy services, however, requests the installation of individualised meters that can inform end‐users about their actual energy consumption. The changed framework conditions offer new market opportunities. Energy suppliers and other enterprises set up metering companies that offer their services not only to their own network branches but also to third parties. Large service enterprises that already offer metering services for the heat market develop concepts for entering the market for gas and electricity metering.

Examples of smart metering in Europe and abroad43

UK A consortium is planning an AMR pilot project with approximately 1000 household customers. The project aims at reading existing meters optically and transmitting the data over TV cable or satellite links. Over TV cable power supplier receives metering data while customers receive information about tariffs, which are displayed on the TV set. If only a satellite link is available metering data is transmitted over GPRS or another packet switched network.

Italy Over a 5‐year period beginning in 2000 and ending in 2005 Enel invested 5 billion EUR for deploying smart meters to its entire customer base (30 million). Motivation: Cost savings for administration, reduction of electricity theft, stabilisation of the grid by reducing peak load during summer time. Enel is offering their customers a multitude of different tariffs. Meters were developed together with IBM and include a PLC modem for transmitting data to a so‐called concentrator, which acts as the interface to existing IP‐networks. Most meters are read via a GSM link because this network has the broadest coverage.

Netherlands The Dutch ministry of economic affairs has decided in February 2006 to replace all electricity and gas meters by AMR systems. For the implementation a project group was installed that analyses the main advantages of AMR systems and defines the main functionalities.

43 Baldock, M.; Fenwick, L. (2006). Domestic Metering Innovation. Consultation Report. London: Office of Gas and Electricity Markets (Ofgem).


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Canada The Ontario Energy Board in Ontario, Canada has actively strived to define the technology and develop the regulatory framework around their implementation. Smart meters will be installed in 800,000 homes by 2007, with an eventual goal of 100% penetration by 2010.

5.5. Userawareness tools

One of the main actions to improve energy efficiency lies on the need of intuitive feedback to users on real time energy consumption in order to change behaviour on energy‐intensive systems usage. Different studies have shown that a reduction of 5‐15% of energy consumption could be achieved44 through the implementation of this measure.

In addition, there is a need to ensure the acceptance of embedded systems and other ICT‐based solutions at home through the use of human‐centric graphic interfaces for different user profiles (age, cultural level, etc.)

It is also critical that users do not get bombarded by a barrage of feedback data about something that they do not require in the first place : information provided by the system should be unobtrusive, and attuned to the user's available attention, taking into account both his/her activity and the urgency of the information that is notified to him.

BUSINESS OPORTUNITIES

In the area of business and trading, detailed analysis of potential impacts of ICT‐based solutions on Energy Efficiency is needed as well as the creation of energy saving business models supported by ICT. Last but not least, local building energy trading would have a definitive impact on the way energy is generated and distributed moving the building from a demand side to a “prosumer” (producer+consumer) profile.

In that sense, new business opportunities45 will appear based on ICT‐enabled energy efficient buildings:

44 The Effectiveness Of Feedback On Energy Consumption. A Review For Defra Of The Literature On Metering, Billing And Direct Displays. Sarah Darby, April 2006

45 Capturing the European energy productivity opportunity. McKinsey&Company. September 2008


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• Innovative Building‐technology products and electrical devices: dealing with more energy efficient space‐heating, HVAC equipments, elevators, water boilers, appliances, white goods, etc.

• Transparency‐creating products: educating energy end users about the impact of their choices and behaviours on their energy consumption and therefore encouraging more conscious use of energy. These products will include smart meters and graphic user interfaces at the consumer’s location.

• Remote operational services: this is typically an area where the telecom provider can play an important role in the end‐to‐end delivery of smart building applications, whether these services are targeted to the end‐user or to the utility provider. To end‐users, the telecom provider is able to offer energy‐efficiency applications using multimodal interactive interfaces (TV, PC, mobile phone...), e.g. smart metering details, per‐appliance real‐time power consumption, temperature monitoring, etc. To the utility company, the telecom provider can offer smart metering services. In addition, the telecom provider enables maintenance of the BMS, and other services like remote monitoring, surveillance and management/control of appliances. ICT can empower people to remotely manage their vacation homes, enable technicians to manage many buildings from a central location thereby achieving scale and energy efficiencies (less commuting). The telecom provider is likely to play an important role in providing secure remote access to smart homes and buildings.

• Energy services: Energy Services Companies (ESCOs) will offer a wide range of activities to energy users, including operation and maintenance of installations, energy supply, often in the form of power and heat from co‐generation, facility management (covering technical, cleaning, safety and security) and energy management including energy audits, consulting, demand monitoring and management.

• Engineering customized solutions: integrating numerous products from different vendors, companies involved in this area will offer services from design of integrated systems to operation and maintenance phases.

RECOMMENDATIONS

A set of recommendations can be structured in two main parts:

- recommendations in terms of key axis / topics for future RTD;


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- recommendations addressing potential European initiatives to be supported by the EC.

7.1 Recommendations for future RTD topics

Even if it is necessary to continue research in new technologies and components what it is drastically missing are tools and services for an integrated approach so as to reduce energy consumptions (and GHG emissions) from the diverse and fragmented building sector. Such an approach must coordinate across technical and policy solutions, integrate engineering approaches with architectural design, consider design decisions within the realities of building operation, integrate green building with smart‐growth concepts, and takes into account the numerous decision‐makers within the industry.

All in all, a comprehensive and systemic view needs to consider future construction including life‐cycle aspects (of buildings materials, design, and demolition), use (including on‐site power generation and its interface with the electric grid), and location (in terms of urban densities and access to employment and services). When studying the range of technologies, it is important to consider the entire building system and to evaluate the interactions between the technologies. In this context, improved techniques for integrated building analysis and new technologies that optimize the overall building system are especially important.

An initial draft view to be developed may especially envisage integrating considerations on:

1. Inside the building:

- HVAC;

- lighting;

- water heating;

- appliances & electronic equipments;

- issues and questions related to the inside use / user behaviour.

2. At the intersection of the building and its environment:

- the envelope of the building;

3. Outside the building:

- integration in the future distributed electric grid;


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- alternative urban design(s)46 – i.e. the spatial arrangement of buildings in communities and urban systems can play an important role in energy consumption and GHG reduction.

The table below covers a first set of research fields within the Smart Buildings topic. It is worth noticing that this will be refined and detailed in the context of the European project REEB GA n° 224320.

Field Functionalities

Systems architecture & networks

New ICT‐based reference frameworks and infrastructures of installation / distribution of Energy (electricity, gas, heat,…)

Modularity – auto‐configuration (new source, load)

Self‐checking: self‐diagnosis, remote maintenance

Management Autonomous management of the (supply) sources and load/remote control

Management, intelligence over the network, communication function of origin components: electricity/hot/cold = f(weather, electricity gas price,…)

Management, intelligence over the network, communication function of load components including thermal devices (radiators, air‐conditioners, doors, windows, shutters, walls,…) electric household appliances

Global Management, sources and load / control, information feedback, maintenance remote billing

Energy integration of the building in its district: global smart energy approach ‐ including in the context of a global energy market

Support:

Development of Response “to the context”, personalization (atmosphere,

46 Towards a ClimateFriendly Built Environment – Report from the Pew Center on Global Climate Change, June 2005


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mood, type of activity, user profile…): thermal, visual, sound comfort multi‐sensorial interactions, friendly robots

mechanisms to store, aggregate/consolidate, recover, distribute (in housing) in an intuitive and personalized way the masses of potential audio‐video data about Energy consumption and optimisation.

Developing means to store, manage, recover, distribute audio video data (in housing) in an intuitive and customised way, to provide with more interactive and natural interfaces inside the smart building.

Remote Education/Training – typically, current building practices seriously lag best practices. Thus, vigorous market transformation and deployment programs are critical to success, and to ensure that the next generation of lowenergy / lowGHG innovations is rapidly and extensively adopted.

7.2 Recommendations addressing potential European initiatives to be supported by the EC

Increase synergies and potential collaborations between multiple actors and partners in the fields of building construction, energy efficiency and ICT. Partnerships should be supported and favoured, including public‐private partnerships. In this sense, Joint Technology Initiatives are powerful tools to support this kind of collaboration, particularly:

- ARTEMIS JTI47, which has been approved by the EC, has established a priority research topic within its work‐programme dealing with Embedded Systems for Sustainable Urban Life, including new electronic devices for supporting Energy Efficiency in Buildings among other services such as security;

- E2B (Energy Efficient Buildings) JTI, currently under elaboration, which objective is to deliver and implement building and district concepts that have the technical, economic and societal potential to cut the energy consumption in existing and new buildings by 50 % within 2030, thereby contributing to improve the energy independence of EU. To reach this goal implies a holistic combination of technologies

47 https://www.artemisia‐association.org/


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that are needed to realise the building concepts. These technologies include ICT as a key element for improving energy efficiency in buildings and districts.

In, addition, initiatives such as NESSI (Networked European Software & Services Initiative) will encourage the creation of new businesses towards Service Oriented business models.

The figure below details the context for future RTD and innovation developments in Europe:

FIGURE 6: A TENTATIVE GLOBAL PICTURE OF EUROPEAN COORDINATED RTD IN ICT FOR SMART BUILDINGS

Increase cross‐sectoral synergies between the various sectors concerned by greater efficiencies enabled through the use of ICT (buildings, lighting, electric grids). A cross collaboration between these sectors has to be organised, at the common interfaces between them – the table below is an initial draw of already identified strong links between “Smart Buildings” and the 5 other groups addressing specific themes. This is an area where DG INFSO – and especially the “ICT for sustainable Growth Unit” – may play a key role, in favouring ambitious joint projects with all or at least part of the key players in the 6 sectors. In a second stage, extension to international collaboration may be envisaged, typically through the IMS48 collaborative scheme.

48 Intelligent Manufacturing Systems – http://www.ims.org & http://cordis.europa.eu/ims


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Smart Manufacturing

• Link with embodied energy in buildings and building materials. It is considered that about 10%49 of all CO2 emissions globally comes from the production of building materials. In particular steel, concrete (cement), bricks and glass require very high production temperatures that can only be reached today by the burning of fossil fuels. Knowledge from Smart Manufacturing is of high interest here so s to take into account these constraints in future buildings.

• Processes in the Construction sector largely involve a complex supply chain – improvement from Smart Manufacturing considering Construction supply chain constraints will have impact in terms of reduction of CO2 emissions.

Smart Electric Grids • Need for improvement in Smart Metering, including within the Built environment, and customers’ communication / awareness.

• Home Energy Controlling box (Internet box).

• Development of ICT‐based NMS (Neighborhood Management Systems), considering future positive‐energy buildings as potential active nodes (supply of energy) in future Smart Electric Grids.

Lighting & Photonic • It is considered that about 12%50 of energy consumption in buildings is due to lighting. This figure increases in the non‐residential building sector.

• Smart integration of new lighting technology (high performance technology) and devices (e.g. intelligent LED solutions) in Smart Buildings.

Smart Mobility • Smart integration of Buildings & Networks in Energy efficient Urban monitoring

• Integration of ICT tools for the design phase of buildings and urban developments

ReStructuring • New business cases and new (ICT‐based) business models

• Establishment of common (integrated) platform for measuring and informing citizens, service providers and organisations about the carbon footprint of all activities of, e.g. a city’s life.

49 Roughly estimated figure – to be confirmed in the future.

50 Bertoldi, P.; Atanasiu, B. (2007). Electricity Consumption and Efficiency Trends in the Enlarged European Union –Status report 2006. Technical Report Series EUR 22753 EN. Ispra: EC‐JRC, Institute for Environment and Sustainability, p. 6


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Provide incentives to favour information sharing and collaborative developments at a trans‐national level (leading to collaborative European RTD, but taking into account specificities of countries and providing opportunities of sharing of experiences and good practices), as well as International cooperation.

Propose instruments to create a critical mass of research, development and innovation at EU level in the areas of ICT‐based technologies and services for energy efficiency in buildings, with the establishment of a favourable environment for participation of construction SMEs that could act as “front‐runners” in Construction for the prescription and deployment of new optimised solutions in Buildings. An important effort is currently being done in this sense with the potential creation of a Joint Technology Initiative on Energy Efficiency in Buildings51 where one of the main research topics is the integration of ICT‐based solutions for Energy Efficiency.

Support the development and integration of technical ICT‐based solutions, especially by:

- accompanying the construction industry in the innovation process (after the RTD phase), by providing a coherent European framework for developing common approaches, with common European standards, and the localisation and adaptation of common solutions which have to be compatible with varying environmental contexts, social (user) preferences and regulatory aspects at national or regional level across Europe; One of the key points here is to overcome the standardisation barrier, with means to stimulate/look at some potential standardization of building systems in a standards body;

- valorising the ICT‐based solutions by helping and pushing evaluation and certification of packages, digital services (in buildings) and processes – overall with the development of labels. The evaluation should be relying on the usage value of technical solutions, for instance through large‐scale pilots, user panels, development of showrooms, education, etc.

Public procurement should clearly encourage ICT‐enabled energy efficient buildings, taking into account that approximately 40% of the construction turnover is still public (hospitals, schools, etc.).

51 http://www.e2b‐jti.eu


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RELEVANT INITIATIVES

Relevant initiatives including best practices and real use cases have been reviewed within this Consultation Group. This list will be refined and updated in the context of the European project REEB GA n° 224320.

Relevant initiatives in ICT for energy efficiency in Buildings

Main characteristics

Directive on Energy Performance of Buildings – EPBD (European Energy Performance of Buildings Directive)

European Commission initiative in the framework of the Intelligent Energy ‐ Europe (2003‐2006) programme, which provides information services for practitioners and consultants, experts in energy agencies, interest groups and national policy makers in the European Member States for helping the implementation of the EPBD.

www.buildingsplatform.org

ENERGYSAFE (FP6): Development of a new low cost retrofittable wireless and self‐powered building control system for improving energy efficiency employee comfort and fire safety in commercial buildings.

Built upon wireless control HVAC and lighting conditions and adapted to individual user preferences. Furthermore, it will create individual comfort zones and will be able to locate occupants in case of fire or other emergency.

EUREC ‐ European Renewable Energy Centres Agency

an EEIG representing European Research Centres active in renewable energy from across Europe

EUREC (www.eurec.be) rationalise the European research, demonstration and development efforts in all renewable energy technologies. Several projects & initiatives, including:

- ProRETT (SSA under FP6) dedicated to the promotion of


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Renewable Energy Technology Transfer

- Pisa II ‐ EU‐sponsored initiative for stimulating the debate on integration of photovoltaics in buildings and for communication and dissemination. This is a joint initiative of the Architect's Council of Europe (ACE) and EUREC

European Program Energy Star ‐ e‐Star

(aligned with the US Energy Star initiative)

A new Regulation that requires EU institutions and central Member State government authorities to use energy efficiency criteria no less demanding than those defined in the ENERGY STAR (US) programme when purchasing office equipment.

www.euenergystar.org

ALLP52 demonstrator 3000m² building renovated with ICT integration for energy management.

www.genhepi.com

AUZENER ‐Model for virtual simulation of energy balance of urban communities focused on its energy and economical optimisation

Simulation of the energy performances of a district

SIGE: Intelligent Systems for energy management. Spanish Ministry of Industry

SIGE develops a monitoring and control system or intelligent control management in buildings.

STAND‐INN: Integration of performance based building standards into business processes using IFC standards to enhance innovation and sustainable development.

STAND‐INN focus on the advantages of the IFC data model in order to increase building sector sustainability.

Umbrella initiative "zukunft haus" (http://www.zukunfthaus.info only in German)

can be roughly translated as "Future House".

Conducted by the German Energy Agency DENA

Also linked to the European green building initiative (for non

52 Association Lyonnaise de Logistique Post‐hospitalière.


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residential buildings)


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4 LIGHTING &

PHOTONIC

TECHNOLOGIES

Edited by

Bruno Smets & Berit Wessler

In Consultation With Photonics21, ELC, CELMA & E2b


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SUMMARY

Almost 20% of the electricity consumption worldwide is used for lighting. If today the best alternatives available would be applied in all installations an energy saving of 30% is envisioned.

Solid‐state light sources, i.e. light‐emitting diodes (LED) and organic light emitting diodes (OLED), may in the future outperform almost all other light sources in terms of efficiency and thus provide a saving potential of about 50% of the electrical energy. If the advanced LED technology is combined with intelligent light management system, which will control the light output according to ambient lighting conditions or people’s presence, another 20% can be saved – in sum 70%. Thus an additional saving potential of 40% will be provided by intelligent solid‐state lighting solutions. By realising those solutions, huge benefits can be achieved:

From an environmental perspective more than 1000 Mt of carbon dioxide can be saved per year on a global level

The economy will be boosted by increasing Europe’s industrial position in lamp, luminaire and driving electronics, jointly employing 150,000 people today

Each year more than 300 billion euro can be saved on the global energy bill

Society at large will profit from more visual comfort by superior light solutions and from less light pollution

Energy efficient light technologies will provide significant individual savings

However, the high performance technology is not available yet to its full extent and slow market adaptation and acceptance limit the realisation of these intelligent LED solutions. The faster market share can be gained, the sooner people can profit form their benefits and the sooner the burden of increasing energy cost can be eased. In order to make his happen measures beyond today’s practise will be required:

The, member states jointly with the Commission should set binding minimum efficiency targets for the different lighting segments in line with the advancement in technology

Member states and local authorities should provide incentives for intelligent energy efficient lighting technologies

The Commission and member states should support large pilot actions to demonstrate the benefits of intelligent SSL lighting technology, to study its acceptance and to determine its economical cost

Industry must work towards open standards supported by the Commission


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The Commission and member states should call for and increase their support for research on SSL targeting both indoor & outdoor applications, especially addressing high quality white LED sources with improved efficiency

The Commission should extend its present research focus beyond photonic components, i.e. LEDs and sensors, to the integration of these components into solutions, system integration at present being hardly addressed in European projects

The Commission should for lighting systems reconsider the clear split between research programmes in FP7 on one side and real‐life demonstration programmes in CIP on the other side; research and demonstration in this case should run in parallel, in order to shorten the learning cycles

INTRODUCTION

The 120 years of electrical lighting was characterized by an industry wide effort to increase the efficiency of light generation. In this respect the innovative speed of the industry clearly outpaced the acceptance of new lighting technologies by the market. With the advanced technologies of today still a lot can be gained in terms of energy efficiency, explaining why lighting has gained a prominent position on the global political agenda 53.

At present the lighting world is revolutionized by the advent of solid‐state lighting. The era of semiconductor lighting opens the potential for energy savings far beyond the one of the present lighting technologies.

A concerted effort between the Commission and the member states on the one end and industry on the other end could clearly speed up the transition to LED based lighting technology. We will formulate recommendations to all parties involved in order to make this happen.

53 Report to the G8 Summit, Haokkaido, Japan, International Energy Agency (2008)


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PRESENT SITUATION

One eight of the primary energy is used for electricity generation. In 2005 lighting accounted for 19% of the global electricity consumption 54 (Fig. 2.1). The 2651 TWh of energy used for lighting equals two thirds of the electricity production in the US and accounts for greenhouse gas emissions equalling 70% of the emission by passenger cars.

87,6%

12,4%

19%

81%

Primary Energy

Lighting = 2651 TWh

Electricity

87,6%

12,4%

19%

81%

Primary Energy

Lighting = 2651 TWh

Electricity

FIGURE 0.1 GLOBAL LIGHTING ENERGY USE

impact of lighting on energy consumption

0%

5%

10%

15%

20%

25%

30%

industry transportation residentialbuildings

commercialbuildings

frac

tion

Although the overall impact lighting on the global energy consumption is limited to about 2.5%, the impact of lighting on energy use is much bigger while focussing on the built

54 Light’s Labour’s Lost – Policies for Energy‐efficient Lighting, International Energy Agency (2006)


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environment. In a study by the US Department of Energy (DoE)55 it is indicated that the impact of lighting equals

FIGURE 0.2 IMPACT OF LIGHTING ENERGY CONSUMPTION BY SEGMENT

12% in residential buildings and even 25% in commercial buildings (Fig 2.2).

Nearly 70% of the lighting energy used however goes to lamps for which a better alternative is available (Fig. 2.3). The slow acceptance of advanced lighting technology by the market triggered the lighting industry to start a dialogue with public authorities all over the world in order to stimulate the use of more efficient lighting. The European lighting industry, represented by the European Lamps Companies Federation (ELC)56 and by the Federation of National Manufacturers Associations for Luminaires and Electrotechnical Components for Luminaires in the European Union (CELMA)57, is working very closely with the Commission on developing specific lighting implementation measures under the Directive 2005/32/EC setting ecodesign requirements for Energy using Products (EuP Directive). These EUP implementing measures will set energy efficiency limits for the future use of new lighting products.

Efficient technology

Technology with improvement

potential

FIGURE 0.3 ENERGY USE PER LAMP TECHNOLOGY

55 2006 Building Energy Data Book, US DoE

56 www.elcfed.org

57 www.celma.org


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light production (Plmh)

59.5

38.5

17.4

16.1 commercial buildings

industrialinfrastructureresidential lighting

outdoor stationary

energy consumption (PWh)

0.43

0.18

0.31

0.08 commercial buildings

industrialinfrastructureresidential lighting

outdoor stationary

The 2.651 PWh of energy were used to produce 131.5 Plmh of light in 2005. The lighting market is however far from being homogeneous and can be divided into four major market segments, each having market dynamics of its own (Fig. 2.4). The biggest segment both in terms of energy consumption and in terms of light generation is the commercial buildings segment, equalling more than 40% of the total market. The residential market segments ranks second in terms of energy consumption, but only third in terms of light generation. In residential lighting the efficacy of a light source is far below market average (Table 2.1).


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Average efficacy per light point in 2005 2

2005 data Average efficacy (lm/W)

Commercial buildings 52.7

Industrial infrastructure 78.6

Residential lighting 21.5

Outdoor stationary 73.2

Market average 49.6

The smallest two segments, i. e.: industrial infrastructure and outdoor stationary lighting, both have a clear focus on the economical cost of their lighting installation, often called Total Cost of Ownership (TCO). TCO also plays an important role in commercial buildings. Lighting effects are also important to this segment and designers will be inclined to switch to less efficient technology, when they are short in efficient alternatives living up to their expectations. Accent lighting for shops is dominated by efficient High Intensity Discharge technology in Europe and Japan. In other regions however one often relies on less efficient halogen technology. In offices linear fluorescent technology is by far the most efficient technology available at present. Notably in high‐end offices designers tend to prefer CFL downlights and this at the expense of energy efficiency. The consumer market is completely governed by the initial cost of the lighting system. TCO has proven to be a hard sell in this market, explaining why this market is still largely being dominated by incandescent and halogen technology at least in the US and Europe. Next to cost other quality attributes such as consistent white light and instant light are also important selling arguments in the residential lighting segment.


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Regional share of electrical light production

33%

17%10%

1%

10%

8%

21%North AmericaEuropeJapan & KoreaAustralia & New ZealandChina Former Soviet UnionRest of World

Fig. 2.4 Regional split of 2005 light production 2

Sixty percent of all light generated is used in the OECD (Organization for Economic Co‐operation and Development) countries (Fig 2.4). It is to be expected that the use of lighting will drastically increase in the coming years in the BRIC (Brazil, Russia, India & China) countries and in the longer term lighting consumption is bound to increase in the rest of the world as well. In a recent paper based on historical and contemporary data spanning three centuries, six continents, and seven orders of magnitude Tsao and Waide 58 came to the conclusion that the consumption of artificial light depends linearly on the ratio between GDP (gross domestic product) and the cost of light. Over the last decade the demand for artificial light grew at an average rate of 2.4% per year2. The growth was slower in the IEA (International Energy Agency) countries (1.8%) than in the rest of the world (3.6%). Present growth rates in the IEA countries are lower than in the previous decades and for the first time in history may be indicative of the beginning demand saturation. A global growth rate of 2.4% will result in an increase by a factor of 1.4 in 2020 and of 2.9 in 2050. Only by embarking in innovative lighting solutions it will be possible to produce more light in a sustainable way.

58 Jeffry Y. Tsao and Paul Waide, Nature, July 21 2007


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ENERGY SAVING POTENTIAL OF THE PRESENT TECHNOLOGY

The energy saving potential of the lighting technology already available today is far from being exploited. Incandescent technology can easily be replaced by either CFL (compact fluorescent) or LED technology, both being five times more efficient. By switching from T8 to T5 technologies more than 60% of energy can be saved in office & industry lighting. Similar gains in efficiency can be realized in outdoor lighting by replacing the outdated HPL (High Pressure Mercury Lamp) by the more advanced High‐pressure Sodium (HPS) and metal halide (MH) solutions. More details on the potential savings can be found in Fig. 3.1.

Application segment From To Saving

MH 57% Outdoor HPL

HPS 40%

Office & Industry T8 T5 61 – 65%

CDM 80% Retail Halo

Halo IRC 20%

CFLI 80%

LED 80%

Home GLS

Halogen 30%

Fig. 3.1 Energy saving potential of advanced lighting technology in the different market segments (compilation of Philips 59 and Osram data 60 ‐ Appendix 5)

A greenhouse gas emission saving of 42.5 Mtonnes is claimed by the European lighting industry (Table 3.1) 61,62. Europe accounts for 17% of the global light production (Fig. 2.4). The proposed measures would result in 30% 63 of energy saving in the 27 countries of the European Union and should become fully operational well before 2020. Similar measures could however take longer time for implementation in the other parts

59 Energy efficient lighting, a summary of green switch facts, Philips Lighting, June 2007 60 Energy Effiziente Beleuchtung, A. Wacker, Osram Gmbh, July 2007 61 EuP consultation forum meeting, input from the lighting industry, June 22 2007 Brussels 62 Impacts of ICT on Energy Efficiency, BioIntelligence Service, p. 143, May 2008 63 In a European context the generation of TWh of electrical power will result in the emission of 0.35 Mtonnes of greenhouse gas


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of the world. A more conservative figure of 25% reduction of energy consumption seems to be an achievable goal on global level by 2020.

Table 3.1 Forecasted saving for EU 27 by ELC and CELMA

LIGHT‐EMITTING DIODES, A NEW ERA IN ELECTRICAL LIGHTING

Solid‐state light sources based on inorganic semiconductors started their revolutionary breakthrough about a decade ago. Light emitting diodes (LEDs) made outstanding improvements within just a few years. While being applied initially for illumination of signs and mobile phone keypads, nowadays they even show up in automotive headlamps. Today, the disruptive LED technology is pushing its way into the general lighting market. Due to their unique properties such as robustness, long lifetime, colour tunability, absence of environmentally mercury, instant light and high efficiencies, LEDs are able to start a new era in general lighting. LEDs as high‐intensity point sources will be perfectly completed by organic light emitting diodes (OLEDs) based on organic molecules or polymers, which provide diffuse light sources. In the future these flat sources will even be flexible or transparent.

LED lighting offers quite a number of advantages over present day lighting technologies. Firstly in the foreseeable future we will be able to generate quality white light more efficiently based on solid‐state lighting than based on discharge lighting (Fig 4.1). Typical efficacies for discharge lamps top around 100 lm/W for white light. This level of performance per today is already achieved with the best LEDs 64,65 and is projected for

64 Osram History of LED (http://www.osram.com/osram_com/Professionals/Opto_Semiconductors_%26_LED/Everything_about_LED85033/History_of_LED/index.html)

65 HB LED Market overview and Forecast, Robert V. Steele, euroLED 2008

CO2 (Mtonnes) Saving potential (kWh)

Saving potential (Billion Euro)

Electricity cost (Euro/kWh)

domestic lighting 23 62.2 9.3 0.15office lighting 8 21.6 2.2 0.10industrial lighting 8 21.6 2.2 0.10street lighting 3.5 9.5 0.9 0.10Total 42.5 114.9 14.6

Saving potential per year


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commercial samples to increase well above this level in the coming years (Appendix 1 & 2) 66. Photonics21 in its strategic research agenda also projects a LED efficacy of 150 lm/W by 2015 23. These efficacy data cannot be translated directly into the efficacy of a light point based on LEDs. The former figure reflects the performance of a single LED package at a junction temperature of 25 degree centigrade and 350 mA of current. To create a light point typically a number of LEDs has to be combined in a light module also accommodating the driving electronics and optical measures to mix the light generated by the individual LEDs. The figure of around 150 lm/W presently projected for a single packaged commercial LED needs to be corrected for the driver electronic losses (10%), for the optical losses in the module (10%) and for the losses due to the thermal load of the junction (20%), resulting in a light point efficacy of around 100 lm/W.

Illumination is not only about light generation. The light produced should also be delivered efficiently where needed by the luminaire. The ratio of the light delivered over the light generated can range between 35% and 85% 67. The latter figures are only in reach while using high quality optical materials. Inorganic LEDs are much closer to point sources, which make them better suited for light manipulation than the more bulky HID or CFL lamps. Luminaire efficiencies in the order of 70 to 85% seem to be more realistic for LED based lighting fixtures.

1950 1990

CFL

Incandescent

Halogen

Metal halide

Mercury

Fluorescent

18791904

1981

1959

1938

1961

//1996

2002

2005

2006

2010

Solid State Lighting

100

50

Light source efficiencyLumen/Watt

Year of invention150

1990 2020

LED

OLED

Potentials

Fig. 4.1 Solid‐State Lighting technologies versus classical technologies

The lifetime of the present lamp technologies does range from 1000 for incandescent lamps to 30,000 hrs for some HID and fluorescent lamp types. For LED solutions lifetimes in the range 50,000 hrs are anticipated in the near future. Cost of LEDs will

66 Light Emitting Diodes (LEDs) for General illumination, An OIDA Technology Roadmap update 2002, OIDA, Whasington, DC.

67 Learning from experiences with Energy Efficient Lighting in Commercial Buildings, CADETT Analysis series, No 6, CADETT, Sittard, The Netherlands


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become a dominant factor in their market acceptance. According to Haitz’ law the cost of LEDs will decrease with a factor of then per decade. Due to this initial cost decrease the cost of ownership of LED solutions has already outperformed the one of incandescent and halogen technology and is bound to outperform discharge technology in the coming years as well (Fig. 4.2).

Fig. 4.2 Evolution of the cost of ownership of LED lighting 68

INTELLIGENT LED LIGHT SOURCES

In contrast to discharge lamps LEDs are perfectly suited for switching and dimming. Dimming is feasible with fluorescent technology up till levels of 1%, a level of 50% is at the best achievable with HID technology. After switching off and on an HID lamp it will take 10 to 15 minutes before the light level is re‐established. Next to that switching has a more adverse effect on the lifetime of both fluorescent and HID lamps. These setbacks are not encountered with LED technology, which makes them highly suited for integration with sensor based lighting control systems.

68 “Cost of Light – When does Solid‐state Lighting make Cents?”, Kevin Dowling, Color Kinetics, September 12, 2003; http://www.colorkinetics.com/support/whitepapers/CostofLight.pdf &

http://www.colorkinetics.com/energy/cost/


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Lighting control system in itself offer great opportunities for energy saving. The US Department of

Energy (DoE) came to the conclusion that savings up to 50% are feasible 69. Case studies by Rensselaer Polytechnic and the National Research Council of Canada prove that by combing presence detection and daylight harvesting savings up to 70% are feasible in real life situations70,71. On a global level the market penetration of control systems is in the one percent range. Market acceptance however is gearing up in the US market 72. The introduction of the LEED Green Building Rating System in 2000 definitely is one of the major drivers for this increased market acceptance.

Intelligence can be combined with existing lamp technology, but will only be applied to its full extent when combined with LEDs. Intelligent LED based lighting systems are coined by Photonics21 as a research priority in the field of lighting. The synergies with new developments in the field of sensors almost speak for themselves.

By marrying LEDs, sensors and embedded software the intelligent lighting systems of the future have in the long term a much higher saving potential than the advanced lighting technology of today. Because LED technology is still under development predictions will be less accurate than the data on the replacement of out‐dated lamp technology. A scenario based on the present market dynamics is depicted in more detail in Appendix 3. The underpinning assumption is that an average efficacy per light point of 100 lm/W would be feasible, a doubling over the present value of 50 lm/W. The impact of lighting control will not be the same in all lighting market sectors. The biggest gains are anticipated in commercial buildings, working hours overlapping to a large extent with daylight. In industry due the 24 hours economy the impact of daylight harvesting will be smaller, while for the residential segment an intermediate scenario was used. Outdoor lighting is operated on average 12 hrs a day, while traffic density will only be high for 3 to 4 hours in this period of time. Without sacrifying security the light level might be substantially reduced during low traffic hours.

The renovation rate for lighting is extremely low: 3% for outdoor lighting and 7% for indoor lighting). Which means that more than 30 years will be needed before the complete lighting market with its present dynamics fully switches over to LEDs. Next to that additional time will be required to bring LED technology to the performance level used in this scenario. In 2050, it is possible to save 50% of the energy by advanced LED technologies and even 70% by combining LED technology with intelligent lighting systems. In this scenario 2050 was taken as the point in time where the world has fully

69 U.S. Lighting Market Characterization, Volume II: Energy Efficient Lighting Technology Options U.S. Department of Energy, Eugene Hong, L.C., Louise A. Conroy Michael J. Scholand, Navigant Consulting, Inc. (2005) 70 Personal Control: Boosting Productivity, Energy Savings Craig DiLouie, Lighting Controls Association, September 2004 71 A.D. Galasiu et al., Energy Saving Lighting Control Systems for Open‐Plan Offices: A Field Study 72 htpp://www.aboutlightingcontrols.org/education/papers/trends.shtml


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embarked in intelligent LED lighting. For 2030 energy efficiency gains up to 25% for LEDs and 40% for intelligent LEDs are anticipated (Appendix 3). These gains however will almost completely be offset by the projected growth in lighting demand by 2050.

A more assertive approach (Appendix 4) towards intelligent LED lighting by a concerted private public action might result in a much faster market penetration of the solutions envisioned and consequently a higher impact on the energy savings realized. The Commission could play a prominent role in this by bringing the different industries involved together. In this scenario savings of 26% for LEDs and 34% intelligent LEDs are projected by 2020, increasing to 41% and 56% respectively in 2030. The market would have fully switched to LED technology by 2040, resulting in savings of 50% and 70% respectively. In this scenario we would even be able to decrease the global energy consumption in the coming decades, by 2050 the consumption would grow again to the present level due to the increased demand for lighting.

New parties originating from other regions will enter the market with a clear focus on cost at the expense of performance, resulting in efficacies per light point well below 100 lm/W. Next to that these new entrants will lack the application and market knowledge to exploit to the full extent the opportunities offered by LEDs on the one side and by controls and sensors on the other side. It will be clear that such an approach will not bring the projected savings in energy. Europe has clearly to take the lead in bringing energy efficient solutions to the market.

The evolution of the global lighting energy consumption is depicted in Fig. 5.1 for all scenarios considered. It is clear that for intelligent LED systems the potential in controlling the energy consumption by lighting is much higher in the long run than for the advanced lighting technologies of today (CFL & HID). Intelligent LED lighting will be 70% more efficient than the lighting presently in use. With existing technology an efficiency gain of 25% can be realized in the short run and 30% in the long run, leaving 40 ‐ 45% to be bridged by the introduction of LED technology. A concerted effort by industry and government to boost the market change over to this new technology would result in substantial additional savings in the mid term as well.


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Lighting Energy Use

0

1

2

3

4

5

6

7

8

9

2000 2010 2020 2030 2040 2050 2060

year

PWh

status quoexisting technologymarket dynamicsassertive scenario

Fig. 5.1 Forecasted global lighting energy use

ENERGY EFFICIENCY AND THE LIFECYCLE OF A LIGHTING PRODUCT

For today’s lighting systems more than 99.5% of the energy is used during lamp operation (Table 6.1). Only a small fraction of the energy content of lighting systems can be attributed to the production of the lighting components, such as lamps and electronic drivers, and to their transport to the user. No reliable data on the energy intensity of the disposal of a lighting system are available. It is however safe to assume that the disposal cost will be less than the production cost.

Table 6.1 Energy intensity of fluorescent tube and driver

Energy intensity

T8 production 0,007 GJ


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T8 electronic ballast production 0,015 GJ

20,000 hrs of use 8,2 GJ

Up till now no reliable data are available on the energy needed for the production of LEDs or OLEDs. Due to the fact that LED solutions live two to five time longer than the existing lamp technologies the situation will be quite similar to the one found with existing technologies even in the unlikely event that more energy would be needed in the production of LEDs. 99.5 % of the energy intensity of LED solutions will consequently be consumed during their use. The impact of production, transportation and disposal on the energy use will be minimal and will not have any impact on the conclusions drawn in the previous sections.

Next to the LEDs and their actuators also the sensor network will consume energy when the system is in operation. Minimizing the energy use is high on the sensor network research agenda. A substantial research effort is presently focussing on low power stand‐by networks and on energy scavenging by autonomous sensors 73.

ACTIONS TO SPEED UP THE MARKET ACCEPTANCE OF INTELLIGENT LED SYSTEMS

Efforts in order to speed up the market acceptance of intelligent LED systems will pay off immediately in view of the large savings potentials. The public awareness on LED technology is quite high, but it is often solely seen as a new replacement for incandescent bulbs. Only few people realize to the full extent what can be achieved with LEDs in combination with control systems. Large‐scale demonstration projects could pave the way towards a deeper understanding on the potential of intelligent LED lighting and will proof these concepts are working in real life. In a recent report by ChangeWave it was pointed out that embarking into LED Lighting was seen as by 37% of the companies interviewed as the easiest way to cut back in energy usage 74. The Initial cost price is seen as a major hurdle. Three quarters of the companies interviewed will consider changing over to LEDs, if the bulbs cost less than 5$. Large‐scale demonstration projects could be an excellent tool in order to convince the consumer of the economic

73 5th Annual IEEE Communications Society Conference on Sensors, Mesh and Ad Hoc Communications and Networks, 16‐20 June 2008, San Francisco bay Area

74 ChangeWave Energy Efficiency Report: Huge Shift Now Occurring in Corporate Energy Usage, 2008


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benefits of intelligent LED technology. A proof‐of‐concept is urgently needed and it would also be beneficial to establish financial incentives to users of this green technology. Based on the results of large‐scale demonstration projects it will be much easier to convince the financial world to invest in intelligent LED technology and to develop financing schemes speeding up the transition to this technology. By increasing the minimum performance requirements for lighting systems in line with the advancement of the technology the Commission and the member states could stimulate the use of economic intelligent LEDs over energy consuming cheap lighting solutions.

Although a lot of progress has been made in LED technology more R&D is needed in order to realize the performance levels required. First of all, the efficiency needs to be further increased. The most efficient LEDs emit cold white light of low quality. Steps need to be made in order to reach a similar performance for warmer high quality light normally found in lighting applications. Moreover, a reliable source with consistent white colour coordinates is needed and by using tunable solutions the functionality of the light sources can be increased. Last but not least, a massive effort will be needed to provide LED solutions at moderate cost. Next to that the ease of use of control systems is considered as being quite poor. This holds for all phases of the life of the control system: installation, commissioning, operation and maintenance. A concerted R&D effort will be required in order to bridge this gap in performance as well.

Within the ICT work package 2009‐2010 of FP7 the need for further RTD on LED components and advanced sensors is covered to some extent. Lighting system RTD is however not covered at all. Notably for the larger systems envisioned combining the components into working solutions is a challenge by itself. Larger systems based on embedded software tend to suffer from bugs that will never surface on the laboratory workbenches. Only by relying on robust test strategies and on real life demonstrations with end‐users such systems can be debugged appropriately.

In contrast to the normal practise in European programmes, where a clear distinction is made between the RTD phase covered by FP7 and the deployment phase covered by CIP, we strongly feel that research and demonstration for systems should run in parallel, this in order to shorten the learning cycles. The clear cut between RTD and deployment, successfully applied for product oriented technologies, would rather be counterproductive in the case of system related technologies and would hamper the rapid market acceptance of ambient intelligent LED lighting.

In the field of both LEDs and control systems quite a lot of proprietary standards are used, resulting in a lack of interoperability. The development of open standards and norms will also largely contribute to the adaptation of this new technology. A lighting system does not exist by itself and it often is an integral part of a larger infrastructure. In order to use the potential of LED lighting to its full extent the lighting industry should align itself with the construction industry, notably regarding the integration of light points in building materials. A lighting control system could in principle exist next to the other control systems in a building, but from the users perspective this definitely is not


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the way to go. The lighting system should be an integral part of the building management system as well as of the power distribution system. Therefore the building management industry and the lighting industry should develop together standardized interfaces and protocols. Through this integration the lighting system will become linked to the smart energy meters entering the market now. In this way the user will get instant feedback on the actual performance of its lighting system. LED and light manufacturers should support luminaire manufactures to apply LED technology in their products.

In due time the minimum efficiency requirements for lighting products under the EuP regulation should be adapted in order to reflect the status of technology determined by LEDs. Because SSL technology offers the opportunities to create lighting patterns not achievable today the regulations for illumination levels in office and industry should be reconsidered in due time by the Commission and the member states.

Europe is lagging with respect to the US in gearing up a concerted effort between government and industry to promote the use of LEDs 75. Already in February 2005, DOE signed a Memorandum of Agreement (MOA) with the Next Generation Lighting Industry Alliance (NGLIA) creating and clarifying the expectations for the Partnership. The Alliance will accelerate the implementation of SSL technologies by:

• Communicating SSL program accomplishments • Encouraging the development of metrics, codes, and standards • Promoting demonstrations of SSL technologies for general lighting applications • Supporting DOE voluntary market‐oriented programs

INTELLIGENT LEDS A TRIPLE WIN

75 Multi‐Year Program Plan, FY’09‐FY’14, Solid‐State Lighting Research and Development; Navigant Consulting, Inc., Radcliffe Advisors & SSLS, Inc., March 2008


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The forecasted energy savings with intelligent LED systems by 45‐40 % on top of the projected 25‐30 % by embarking into advanced lighting technology over the coming years will result in a global savings of 1.3 PWh in 2030 and of 3.0 PWh per annum in 2050. Because we are exclusively dealing with grid based lighting this can be translated immediately in the annual output of 650 to 1500 medium sized 200 MW electrical power plants delivering 2TWh of yearly energy.

One billion people will probably never be connected to the electrical grid and presently rely on kerosene to generate light, causing a lot of health hazards next to poor lighting quality and exceedingly high cost. LEDs do not need the high voltages supplied by the grids for their operation. They can be connected directly to low voltage systems consisting of photovoltaic cells and batteries. In this way economical quality lighting will become accessible to this large group of people as well.

From an ecological point of view this will result in a reduction of the greenhouse gas emission by 650 to 1500 million tonnes on a yearly basis. This taken into account that on a global level the environmental impact of the generation of electricity is 40% higher than in Europe. LEDs live much longer than lamps and this as a consequence adds to the sustainability of this solution. The superior optical performance of LEDs compared to discharge lamps will also result in a substantial reduction light pollution at night. Such a reduction will have a positive impact both on the ecosystem and on the population. Discharge technology relies to a large extent on the use of mercury. By embarking into LED technology the ecosystem will no longer be exposed to this hazardous material.

From an economical perspective 190 to 450 billion euro on a yearly basis is no longer needed in order to pay our global fossil fuel bill in the period between 2030 and 205076, but can be invested in economic growth. Part of these investments can be diverted to the lighting & photonic industry. The latter is presently already growing at a 12% level in Europe, while the photonic world market is predicted to grow at a rate of 7.6% 77. Such an effort would largely contribute in gaining Europe a position of technological leadership in this area. The European lighting industry as represented by the ELC and CELMA employs 150,000 people in Europe, generating a turnover of around 20 billion euro. ELC is a federation of seven lamp manufacturers of which Philips, Osram and GE

76 assuming a oil cost price of 100 euro a barrel

77 Photonics Strategic Research Agenda, Photonics21, April 2006


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cover the majority of the world market. CELMA represents 18 National Lighting Associations in 13 countries with over 1000 companies, most of them being small and medium sized enterprises (SME’s). The annual turnover in lamps is about a third of the one in luminaires and luminaires components, in terms of employees the same balance applies.

The societal impact of LEDs and Intelligent LED systems in particular can best be described as creating more visual comfort at less cost. Saving energy pays itself always back in an acceptable time span. By bringing quality light where and when needed a much more pleasant environment can be created. Quality light will also increase well‐being and personal performance The user will also be able to adapt the light to his personal preferences much more easily than with the lighting technology of today. Next to the light effect LED lighting also offers additional opportunities in the design of the fixtures, making lighting a thing of beauty in many aspects.

RECOMMENDATIONS

In order to achieve the “assertive approach” as depicted above the following actions should be taken:

• The Commission should continue setting the ongoing minimum energy efficiency requirements for lighting products under the regulation for Energy using products (EuP). These requirements should be reviewed on a regular basis in order to reflect the actual state of technology.

• The Commission and the member states should complement the ongoing Implementing measures for lighting under the EuP Directive which are addressing the product level only, with a new EU‐wide lighting design legislation to cover all aspects related to the energy efficiency and savings at the application level of a lighting installation.

The Commission and the member states should also support pilot actions to demonstrate SSL performance and to determine the economical cost of such services.

• Industry must cooperate on open standards and norms in order to guarantee interoperability of the future lighting solutions. This effort should extend itself beyond the lighting domain and cover as well the interfacing with building and power management systems.

• The Commission and the member states should call for and support research on SSL for indoor & outdoor applications, especially addressing the trade off between colour quality and efficiency. Next to that a concerted R&D effort will be needed on


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ambient intelligent LED lighting solutions, which can be used far more easily than the present lighting control technology.

If all players involved are committed to their contribution and will act together global energy savings up to 1.3 PWh by 2030 and up to 3.3 PWh per annum by 2050 could be realized. This would result in 650 to 1500 Mtonnes less worldwide greenhouse gas emission (CO2) and 150 to 490 billion euro savings in yearly electricity costs. The payback time of the future lighting systems should be at the maximum two to three years. Financial incentives based on public private partnership would greatly stimulate the market acceptance in the first years to come.

ANNEXES TO LIGHTING & PHOTONIC TECHNOLOGIES

1. OIDA forecast of LED performance for laboratory samples as well as for commercial samples10

2. Energy Consumption per market segment

energy consumption (PWh) no growth

2005 global data 2030 global data 2050 global data market segment

LED smart LED LED smart LED

commercial buildings 1.13 0.87 0.52 0.60 0.30

industrial infrastructure 0.49 0.44 0.13 0.39 0.31

residential lighting 0.81 0.49 0.47 0.17 0.11

outdoor stationary 0.22 0.19 0.46 0.16 0.11

2.65 1.99 1.58 1.32 0.83

25% 40% 50% 69%

energy consumption (PWh) inclusive 2.4% growth p.a.

2005 global data 2030 global data 2050 global data market segment

LED smart LED LED smart LED

commercial buildings 1.13 1.57 0.94 1.73 0.87


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3. Haitz’s Law: LED Light Output Increasing / Cost Decreasing

‐ Source: Roland Haitz and Lumileds ‐

4. Energy saving scenario based on the present market dynamics /Energy saving based

on assertive market approach

industrial infrastructure 0.49 0.80 0.24 1.12 0.90

residential lighting 0.81 0.89 0.85 0.51 0.32

outdoor stationary 0.22 0.34 0.83 0.47 0.33

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5. Consumption per product type

2005 global data LED smart LED LED smart LED LED smart LED

commercial buildings 1.13 0.89 0.78 0.69 0.50 0.60 0.30industrial infrastructure 0.49 0.58 0.52 0.45 0.34 0.39 0.31residential lighting 0.81 0.24 0.23 0.21 0.19 0.17 0.11outdoor stationary 0.22 0.24 0.22 0.21 0.17 0.16 0.11

2.65 1.95 1.75 1.56 1.20 1.32 0.8326% 34% 41% 55% 50% 69%

2005 global data LED smart LED LED smart LED LED smart LED

commercial buildings 1.13 1.25 1.09 1.25 0.91 1.73 0.87industrial infrastructure 0.49 0.81 0.73 0.81 0.62 1.12 0.90residential lighting 0.81 0.34 0.32 0.38 0.34 0.51 0.32outdoor stationary 0.22 0.34 0.31 0.38 0.31 0.47 0.33

2.65 2.73 2.45 2.82 2.17 3.83 2.41

market segment

market segment 2030 global data

2030 global data2020 global data

2020 global data 2050 global data

energy consumption (PWh) no growth

energy consumption (PWh) 2.4% growth p.a.

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5 ICT FOR CLEAN &

EFFICIENT MOBILITY Final Report; 1 October 2008 Edited by Wolfgang Reinhardt, ACEA & Paul Kompfner, ERTICO‐ITS Europe


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INTRODUCTION

The Working Group on ICT for Clean and Efficient Mobility was established by the eSafety Forum in December 2006 with the purpose to identify and promote the potential benefits that ICT (information & communication technologies) and ITS (intelligent transport systems) applications & services can bring towards cleaner and more energy‐efficient mobility for people and goods. Hereafter in this report these technologies, applications and services will be collectively referred to as “Green ITS”. This report presents a review of the wide range of Green ITS already available or under development that can have a significant impact on road transport energy efficiency and emissions of pollutants and CO2. It is a summary of the results of Working Group meetings and other inputs from the Working Group members. The report begins with a summary of the environmental challenges for a sustainable mobility. The following section discusses the contribution to clean and efficient mobility available from non‐ICT technologies and other measures.

THE ENVIRONMENTAL CHALLENGE

Global Warming

Global warming is now an accepted fact by the world’s scientific community. The greatest influence appears to be the growth in emissions of CO2, a powerful “greenhouse gas”, that enters the atmosphere as a result of heating, industrial processes, electricity generation – and transport, principally from road and to a lesser extent air traffic. CO2 emissions due to road transport are influenced by 78: Vehicle technology Fuel and how it is used Type of vehicle and how it is driven Efficiency of the roadway environment and alternative modes of transport

78 Carl‐Peter Forster, President GME, Fuel for Thought Event, Brussels, Nov. 21, 2007


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In volume terms the transport sector emissions grew 1,412 million tonnes (+31%) worldwide between 1990 and 2003, and increased 820 million tonnes (+26%) in OECD countries79. This trend has continued and is expected to further increase in the future. The challenge for Europe is plain: to reduce greenhouse gas emissions by a factor of more than three. As road transport’s share of CO2 emissions is still growing, the task is to re‐shape our transport system so that it can sustain a growth in mobility while drastically cutting greenhouse gas production.

Oil Supply And Security

The global demand for oil is expected to further increase from currently 84 mb/d (million barrels per day) to 116 mb/d by 2030. The IEA80 is warning of shrinking oil resources, oil capacity and slowing production, at the same time as demand for oil in fast growing areas such as Asia and the Middle East is expected to rise three times faster than in the OECD area, causing a tightening of supply and likely high oil price levels post 2010, leading to further increases in petrol and diesel prices81. The prospect of unstable and uncertain future oil supplies in the future gives added reason for seeking to increase the overall fuel efficiency of today’s mobility system.

Energy Consumption

Currently our mobility is heavily dependent on fossil fuels, either petroleum products used in vehicle motors or to fuel power stations for generating electricity used in transport. The challenge is to reduce energy consumption per unit of mobility, and to redirect energy sources away from those that have a negative effect on the environment and sustainability. In 2006 the European Commission adopted an Action Plan aimed at achieving by 2020 a 20% reduction in energy consumption as well as increasing renewables to a 20% share of total energy use. This Action Plan identifies the areas where the biggest energy savings are to be made, e.g. Smart electric grids, heating and lighting in buildings with savings of nearly 40% of energy used in the EU,

79 ECMT: Cutting Transport CO2 emissions: What progress? ISBN 92‐821‐0382‐X, 2007 (ECMT=European Conference of Ministers of Transport), page 5

80 IEA Mid Term Oil Market report July 2007

81 FIA General Assembly Declaration: Make Cars Green, 26. October 2007


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Smart building design (public/private buildings, housing, offices) with potential savings estimated at 27%, Smart industrial motor systems and industrial automation, But also smart transport & logistics with a potential for a 26% reduction in energy consumption. In a recent published report82 applying information and communication technologies (ICT) more widely in industry and infrastructure could help deliver significant energy efficiency gains and cut global gas emissions by up to 15% p.a. by 2020. The “Smart 2020” report estimates that ICT can enable sectors to save up to 7.8bn tonnes of CO2 equivalent p.a. by 2020 with related savings of over Euro 500bn. The need is therefore urgent to find and use cleaner and less energy‐consuming means of transport and apply intelligent mobility management. But to achieve wider take up also means a change in people’s attitudes and the correct policies at local and national levels. Road traffic is responsible for 13% of all greenhouse gas emissions globally while private transport counts for less than 6%. Concerning CO2 alone the share of transportation is higher with 17%. In the year 2000, within the transport sector passenger cars counted for 44% and commercial transport of goods for 23%. A forecast for 2050 based on extrapolation of the presently known structural changes leads to a more than doubling of the CO2 volume (+128%) for the year 2000. Automobiles today are cleaner and more fuel efficient than ever before as a result of improvements in technology and fuels that are reducing both toxic emissions and the quantity of CO2 emitted per vehicle83. There are areas, however, where sharing efforts is necessary because technology alone does not have all the answers84. This leads to a holistic approach to promote new measures for “eco‐efficiency”. Eco‐efficiency in transport means an increase in resource productivity with reduced ecological impacts. Critical aspects of eco‐efficiency are:

• Reduced material intensity of goods and services • Lower energy intensity of goods and services • Reduced dispersion of toxic material • Improved recyclability • Maximum use of renewable resources

82 Global e‐Sustainability Initiative (GSI) and the Climate Group: Smart 2020 Report “Enabling the low carbon economy in the information age”, June 2008

83 FIA General Assembly Declaration: Make Cars Green, 26 October 2007

84 ACEA: Cars, trucks & the Environment, July 2008


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• Greater durability of products • Increased service intensity of goods and services.

Measures for cutting road traffic emissions have a cost. There is a large body of literature85 estimating cost for fuel economy measures but remarkably little agreement in the findings. In general, technical adaptations in engine and vehicle design tend to generate net costs while behaviour changes tend to generate net benefits. Several studies estimate the cost86 of moving the European new car fleet average from 140g CO2/km to 120g CO2/km at somewhere between 34 to 71 €/tonne with marginal costs at 175 €/tonne for vehicle technology improvements only. ACEA87 estimates the average costs of moving to a 120g/km target at 400‐540 €/tonne. It is unclear how far costs can be expected to decline in the long run due to technological but also other developments.

Air Quality

EU air quality rules88 require Member States to limit the concentrations of pollutants such as benzene, carbon monoxide, lead, nitrogen dioxide, particulates and sulphur dioxide in the ambient air, and to draw up action plans when the concentrations risk being exceeded. In 2005, some 70% of European towns and cities with 250,000 inhabitants or more have reported exceeding the PM10 limits in at least part of their area. Recommended counter‐measures include limiting or even suspending motor vehicle traffic. In practice, the risk of such air quality emergencies is highest in urban areas. A number of Member States and cities have already taken measures to restrict vehicle traffic on grounds of vehicle emissions or air pollution episodes. These are likely to grow in number as city traffic increases and as the stricter limits (e.g. for small particulates PM2.5) come into force. Successive European legislation has imposed limits on the specific emission of new light and heavy vehicles. These have brought dramatic a reduction of emissions of particulates (PM10 and more recently PM2.5), NOx and volatile organic compounds. The latest standards require a reduction by more than 50% in each of the above pollutants from 2000 to 2020.

85 i.g. Greene, D.L. and Schafer, A., 2003, NRC, 202, U.K. Department for Traffic.2003, T&E, 2005, EC, 2004, ACEA, 2006

86 ECMT: Cutting Transport CO2 emissions: What progress? ISBN 92‐821‐0382‐X, 2007

87 ACEA 2006 (Biofuels are estimated to cost from 200 to 500 €/t).

88 Directive 2008/50/EC of the European Parliament and the Council of 21 May 2008


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The automotive industry is introducing technologies such as particulate filters, catalytic converters and new fuel injection and combustion techniques in order to achieve these targets. ICT are not expected to have an impact on such specific emission reductions.

FIGURE 0.1 EURO EMISSION STANDARDS FOR NEW LIGHT VEHICLES

An Integrated Approach To The Challenge

The Working Group believes that an integrated approach towards clean and efficient mobility is necessary. This means both the involvement of a wide range of relevant stakeholders but most importantly to look for solutions not only from vehicle technology alone but also by complementary measures such as improving traffic management, adjusting infrastructure, increasing the use and availability of alternative fuels, changing driving behaviour and influencing consumer demand through taxation.


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FIGURE 0.2 INTEGRATED APPROACH TO REDUCE CO2 EMISSIONS

The Working Group has pursued a balanced approach, considering the vehicle, the driver and the infrastructure in an integrated way.

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FIGURE 0.3 INTEGRATED APPROACH SCHEME

Even though the goal of the Working Group is to concentrate on those aspects either not treated adequately until now, or where there is a significant potential for eSafety technologies (ITS/ICT or “Green ITS” applications) to yield environmental benefits and productivity gains (traffic flow management, fleet


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management) the following section will also present a brief summary of non‐ICT related aspects to help provide a context for Green ITS measures.

Non-ICT Related Technologies With Impact On The Environment

3.1 Vehicle, Fuel & Tyre Technologies

In February 2007, the European Commission presented a strategy paper calling for the introduction of improved vehicle technology in order to reduce the CO2 emissions of new cars in Europe to an average of 130 grams per kilometre by 2012. A further reduction of 10 grams was to be achieved through additional measures such as improving the efficiency of vehicle components (e.g. tires) and a step‐by‐step transition to fuels containing less carbon89. Vehicle & fuel technologies are thoroughly treated in other fora, and are therefore not the subject of this Working Group on ICT for Clean & Efficient Mobility. Since 1995 European vehicle makers have introduced more then 50 CO2‐cutting technologies into their vehicles. Some of the key developments include90: Engine efficiency: direct injection diesel and petrol engines, second & third common rail injection, variable valve lift, downsizing, twin‐charge turbo engines, stop & start, hybrid technology, electric powertrain, … Optimised transmission: automated manual transmission, 6th, 7th and 8th gear, continuously variable transmission, low friction transmission, computer controlled manual transmission, … Cleaner exhaust: particulate matter filter, catalytic converter, selective catalytic reduction, … Alternative low emission fuels: ethanol or gas (liquefied or compressed natural gas or liquefied petroleum gas), “flex fuel” (85% ethanol and 15% conventional petrol) are available, second generation bio fuels are on the way Technologies under development include hydrogen cars, fuel cell technology, electric vehicles, storage and use of heat, energy‐efficient LED lights, … Other fuel‐efficient technologies are related to vehicle design, ultra lightweight materials to reduce vehicle weight and new tyre technologies to reduce rolling resistance. According to estimates, maintaining correct tyre pressure can reduce fuel consumption by up to 5%. Introducing tyre pressure monitoring systems on

89 Daimler 360 Facts: Sustainability Report 2008, pages 28ff

90 ACEA: Cars, Trucks & the Environment, July 2008


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all new vehicles would, therefore, help reduce wasted energy and will pay off quickly.

Vehicle Safety Technologies And Related Applications

Driver support technologies with a primary objective of safety – even if they provide a secondary impact on fuel consumption and related emissions ‐ will only be discussed in this report where significant environmental benefits can be demonstrated. A good example in this respect is adaptive cruise control (ACC), e.g. including “stop & go assistant”, which although intended to maintain a safe headway to the vehicle in front could also help to reduce fuel consumption. The earliest advanced safety systems now entering the marketplace include functions such as: ESC (Electronic Stability Control) Seatbelt reminders and head restraint systems Emergency braking systems (Brake Assist and Adaptive Brake Lights) Lane departure warning, lane keeping assist, blind spot monitoring, obstacle warning systems Traffic sign recognition Adaptive cruise control (ACC) Electronic brake assist, including automatic emergency braking Adaptive front lighting Night vision systems (infrared, radar) Intersection warning Speed alert Driver impairment (alcohol, drugs, tiredness detection) monitoring The direct impact of these systems on the environment is generally limited and difficult to assess. Furthermore, most such systems are vehicle‐based and autonomous, and therefore not ICT related. In the future autonomous systems will be further linked and together with an intelligent and responsive infrastructure will form a new cooperative safety network with additional potential benefits for the environment. Examples of future applications and services include: Extended environmental information High quality congestion/ traffic information/ RTTI (Real Time Travel and Traffic Information) Infrastructure‐based warning systems/local danger warning


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Inter‐vehicle hazard warning Cooperative ACC for automatic regulation of inter‐vehicle separation Infrastructure based speed alert Dynamic traffic management (VMS) eCall – Pan‐European emergency call service The limited extent of deployment of such integrated systems means that there is little hard evidence related to potential environmental benefits, and the Working Group is doubtful that any effort to quantify them would be useful. Indeed, the growth of passive and active safety systems implies has contributed to an increase of the average weight of passenger cars by about 300 kg based on customer demand for safer vehicles. Future advanced ICT‐based safety systems are likely to have less impact on vehicle weight, as far as they comprise (weightless) software, and benefit from miniaturisation and integration of several independent systems and functions into one platform.

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FIGURE 0.4 WEIGHT INCREASE 2003 VS. 1990 OF SELECTED VEHICLES The EC's approach to co‐funding collaborative R&D projects has had a very positive role in advancing ADAS technologies to increase road safety and reduce road deaths in support of the eSafety initiative. However, there is a widening gap between EC‐funded R&D activities and actual market adoption of ADAS systems.


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To overcome the low (less than 1%) market penetration of ADAS systems (except for camera and parking assistance systems, now at around 20% penetration) and to unlock the related safety and other secondary benefits, growth strategies are required including a number of technical and marketing strategies to drive the safety technologies into the mass market in the future. Any proposal should take into account the current imbalance between technological advancement and real‐world implementation issues and should suggest how this could be improved to ensure that ADAS delivers its true safety – and secondary environmental – benefits to society91. How much each of the 16 ADAS groups of applications contributes to CO2 emission reduction is extremely difficult to calculate, especially as many systems are still in pre‐mature status or have just achieve a less than 1% market penetration. One way to approach the question is to create a link between ADAS systems and European accident statistics.

NonICT Infrastructure Measures92

Also non‐ICT infrastructure measures have strong potential to reduce CO2 emissions. It has been calculated that, simply through a more efficient planning and management of roundabouts, CO2 emissions could be reduced by up to 20%93. Better road design and more investment in road infrastructure may also help to remove bottlenecks, to divert more traffic around city centres and to complete missing links in the network, which together cost billions of Euros each year in lost fuel and contribute avoidably to the sector’s total emissions. Better roads in terms of better alignment and sufficient width and capacity, can lead to smoother traffic flow and thus to lower emissions from car traffic and should be regarded as positive contribution to a sustainable environment. Road construction itself has an environmental impact, this can be minimized by a mix of sound environmental road design and management, and a combination of processes and techniques including optimised route planning, environmental impact analyses or use of recycled and environment‐friendly construction material. Significant impact on fuel consumption can be realised through use of improved road surface materials and construction. This can achieve reductions in tyre

91 Abhishek Visveswaran ‐ Telematics & ITS Technical Analyst

92 ACEA comments on “Reducing CO2 emissions through infrastructure measures, May 2008

93 VUB‐TNO study for AMINAL project 2002


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rolling resistance of up to 40%, corresponding to a saving of approximately 5% of CO2 emissions. These arguments are supported by a number of studies. A Norwegian study released in 200794 found conclusive evidence that road improvements and realignments reduce car emissions. Taking three baseline scenarios, the emissions of CO2were reduced by 38% while local pollutants also fell. The same study indicated that in a majority of cases, the changes did not generate new car trips. Initiatives in the field of road infrastructures currently represent an under‐exploited opportunity for energy efficiency gains, which should receive substantially more attention by EU authorities. There is an urgent need to identify and investigate the cost effectiveness of potential measures to reduce vehicle CO2 emissions with infrastructure related measures.

Policy Recommendations

CO2 audits of road network EU action plan on CO2 savings from infrastructure Consideration of infrastructure measures as part of EU Sustainable Consumption and Production action plan Commission to study and implement Japanese measures for saving CO2 through infrastructure adjustments Spend fuel taxes on CO2 saving infrastructure improvements (“ear‐marking” CO2 saving targets through infrastructure measures as part of the Integrated Approach

Enforcement

With the introduction of a European driver’s licence (March 2006), harmonisation of traffic rules and cross‐border enforcement of traffic law violations in the area of speeding, drink driving, failure to wear a seatbelt, not stopping at red lights (adopted proposal March 2008) as well as increased control (incl. speed cameras) of potential offenders could be further improved. For example, France achieved notable success

94 “Environmental consequences of better roads”, SINTEF, 2007


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through the deployment of large numbers of speed cameras some years ago and increased enforcement: this has led to some 30% reduction of fatal accidents.

Co2 Related Taxation

On July 8, 2008 the European Commission presented its “greening transport” package aimed at making the European transport sector more sustainable. The package is composed of: A Communication entitled “Greening Transport”, which sets out EC initiatives until 2009 in the field of transport that have an impact on climate change, noise, pollution, congestion and accidents. An inventory of measures already in place at EU level to “green transport” A communication entitled “strategy of the internalisation of external costs” accompanied by an impact assessment and a technical annex on how to estimate external costs. The intention is that transport prices better reflect the indirect costs that transport causes to society. A proposal to amend Directive 1999/62 (Eurovignette). This last proposal would revise the Eurovignette Directive so as to promote deployment of road charging systems obliging trucks to pay their costs of pollution, noise and road congestion (internalisation of external costs). The amount of this charge would vary in terms of vehicle environmental quality (EURO class) and time of day. When the Commission reports on the implementation of the new directive at the end of 2013, the possibilities of making the system mandatory on certain roads may be taken into consideration. Most important is the fact that the proposal will in the first stage not take vehicle CO2 emissions into account (calculated on the basis of particle and NOx emissions only) but postpone a decision to 2013. Moreover, the Commission explicitly says that “ private transport is not covered because of subsidiarity, but the Commission encourages Member States to implement charging systems for all road transport and not just heavy goods vehicles as this would create incentives for all road users to change their behaviour, thereby increasing the significant positive impacts”95. It is expected that CO2‐related taxation would create consumer demand for fuel‐efficient vehicles and alternative fuels. All these combined measures target the CO2 challenge currently under discussion for 2012.

95 Communication “Greening Transport”, COM(2008) 433/3, page 6


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To go beyond these limits additional long‐term measures are necessary. ICT and ITS can play an important role here. This is the subject of part B of this report.

Other Transportation Means

Next to road traffic and road transportation other transportation means play an important role in transportation of both people and goods. In a networked global society such systems have to be seen as complementary to the transportation tasks and, therefore, also with regard to overall emissions and pollutions. The following charts put such means in relation to road traffic.

FIGURE 0.5 ANTHROPOGENIC CO2‐EMISSIONS OF TRAFFIC. GLOBAL TRANSPORT IN 2000 AND

SCENARIO 2050

In absolute terms CO2 emissions by railway transport are projected to grow by 242% while road transport related CO2 by 148%. To cover larger distances a user can use a mixture of transport modes (e.g. public transport to the airport, flight to a first holiday destination, boat trip to an island, car rental, walking and using a bicycle. For goods transport, a product is made in a factory based on material input from trucks, freight trains, etc. It is then loaded on a train, transferred to a boat and shipped to a harbour in another country, where it is loaded on a large truck and taken to a hub where it is unloaded, stored and loaded on a smaller truck for final delivery. These delivery chains are common practice and in the commercial area mainly driven by time and cost. When we talk later of modal shift then we basically mean two things:


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Instead of only using a car to go from A to B an individual will use a mixture of transport modes like walking, cycling, driving, park & ride, using a metro, a bus, etc. to reach his destination in a more energy‐efficient and transparent way according to his personal preferences without compromising too much on time and costs. A cargo is transported in an energy‐efficiency way (positive energy balance) by using different transport means consuming less overall energy but without sacrificing productivity. Local governments may promote multi‐modalism in the pursuit of other transport policy goals such as reducing congestion

ICT FOR CLEAN & EFFICIENT MOBILITY: THE WORKING GROUP APPROACH

Background & Mandate

The eSafety initiative promoted by the European Commission, ACEA and ERTICO pursues an integrated approach, recognizing that vehicles, infrastructure and drivers each have a contribution to make towards safer road transport in the future. Its general objective is to support the development, deployment and use of preventive and active safety systems, using so‐called “eSafety technologies”. The eSafety Steering Group facilitates the deployment of ICT for safe and intelligent transport through a framework of working groups and plenary events of the eSafety Forum. The eSafety Forum members and the eSafety Steering Group welcome the high‐level political commitment shown by the European Commission in launching the “i2010” initiative to stimulate the “digital” economy, and specifically to promote the take‐up of information and communication technologies (ICT) within the transport sector. i2010 is intended to create growth and employment in the information society and the media industry, with a main focus on an increase of EU investment in ICT research and development. Within i2010, DG Information Society and Media is promoting the “Intelligent Car” flagship initiative, to establish a new approach to smarter, safer and cleaner transport and mobility by developing a comprehensive agenda comprising RTD, demonstration, large‐scale field testing, deployment and user awareness actions. Furthermore, co‐ordination with national activities, exchange of best practice and monitoring and reporting of progress should be established. “Intelligent Car” also includes intelligent infrastructure and other elements of an integrated approach and is not just focussing on the vehicle as the name might suggest.


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With this initiative the Commission wants to accelerate the take‐up and use of advanced ICT‐based in‐vehicle and co‐operative systems that make road transport safer and cleaner, by raising user awareness of such systems and their benefits, and by facilitating their deployment. On 17 September 2007 the Commission published its first Communication on the Intelligent Car Initiative, “Towards Europe‐wide Safer, Cleaner and Efficient Mobility: The First Intelligent Car Report” and gave more details on the environmental challenge related to transport: Congestion costs amount to € 50 bn per year or 0.5% of Community GDP By 2010 this rate could go up to 1% of EU GDP Number of cars per 1000 persons has increased from 232 in 1975 to 460 in 2002 Overall distance travelled by road vehicles has tripled in the last 30 years Volume of road freight transport grew by 35% contributing to serious daily congestion on about 10% of the road network Concerning energy efficiency and emissions: Investigations show that up to 50% of fuel consumption is caused by the traffic situation and driving behaviour While Information and Communication Technologies (ICT) help to create more intelligent vehicles, they can also provide new intelligent integrated solutions including infrastructure measures that contribute to solving the key societal challenges described above. In May 2006 the formation of a new eSafety Working Group jointly chaired by ACEA and ERTICO was proposed to the eSafety Forum and approved at the eSafety Steering group of 4 July 2006. The new work group started its work with a kick‐off meeting on 6 December 2006

Objectives And Terms Of Reference

The aim of the new workgroup was defined as: “Identify and promote the potential benefits eSafety/ICT applications & services can bring towards cleaner and more energy‐efficient mobility for people and goods”. Since only few ITS systems and services especially address environmental objectives the various sectors need to be mobilized to cooperate in identifying and promoting deployment of new solutions and prepare the business environment In order to do so, the work group should


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Identify & assess the ICT applications with strongest potential to yield environmental benefits Examine measures to reinforce the environmental compatibility & sustainability of mobility Examine potential for education & support tools to promote environment‐friendly driver behaviour Cost benefit assessment of measures to reduce environmental impact of mobility Identify measures to promote & support deployment. The following work areas were proposed: Environmental traffic management strategies and operations, e.g. environment‐optimised traffic light synchronisation, automatic traffic incident detection and management, urban goods delivery management, air pollution crisis management, etc. Integrated traffic/mobility management systems, traveller information and guidance services Infrastructural measures to reduce negative environmental impact of mobility Cooperative vehicle‐infrastructure systems, e.g. optimisation of vehicle‐traffic management in order to avoid congestion, with accompanying environmental benefits On‐line environmental information services for drivers, travellers and operators Systems, tools and incentives to support & educate drivers in environmentally‐friendly driving Innovative business and organisational models to deliver environmental ITS Cost‐benefit analysis of environmental ITS policies and options Measures to promote and support deployment of ITS for clean & efficient mobility. The Terms of Reference are attached at Annex 1.

Scope

With regard to the Intelligent Car Initiative this report will concentrate on road transport, intelligent road infrastructure and road users but it is important that contributions from other transport areas should be exploited through other projects as well. The report will only concentrate on ITS/ICT measures and not on aspects such as road construction (e.g. elimination of accident critical spots, safety barriers, park & ride facilities, network of pedestrian and bicycle paths, noise walls, etc.).


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As mentioned above, improvements providing emission (CO2) reductions from vehicle engine/powertrain or other vehicle technologies are excluded from the scope. The same is valid for issues such as the weight, size and shape of vehicles as well as horsepower, etc. that can bear on fuel efficiency. Furthermore, this report will not comment on potential impacts of setting lower maximum speed limits or using alternative fuels (fuel cells, liquid gas vs. petrol or diesel, etc.). Last but not least the high average age of the European vehicle parc implies that emissions could be reduced if older vehicles were replaced by new ones. The same is valid for the potential unfavorable individual fleet composition of single fleet operators. This, however, will not be subject of this report either. The impact of vehicle maintenance and inspection ( mandatory in most countries) is only treated in this report when ICT is used for remote diagnostic applications. The Working Group’s goal was to investigate how to reduce energy consumption and production of CO2 and other pollutants not only by conventional measures but also with the help of “alternative therapies”. Notably, these include infrastructure “eco‐management” and eco‐driving, which are in the scope of this report as far as they are based on the use of information and communication technologies. Elements that can contribute to such CO2 savings include: Increasing fuel efficiency by making traffic flow more smoothly

• Help drivers find the most eco‐friendly route & mode choice • Giving travellers information about different journey alternatives

Collecting real‐time information about traffic and environment conditions, and the extent of congestion and traffic incidents Reduce congestion by improved traffic flow management and by responding quickly to perturbations Direct and control access to critical zones of high potential pollution according to measurements of traffic density and structure, and air quality Guiding travellers to choose the most environmentally friendly travel route using a multi‐traffic mode approach Support drivers to acquire and adopt eco‐driving techniques. Improved traffic flow can lead to shorter driving times, lower fuel consumption and fewer emissions. Consequently, the idea was born to exploit the possibilities of emerging and future eSafety technologies to produce environmental benefits such as: Improved traffic flow through infrastructure measures like e.g. traffic light synchronization, variable message signs, demand management, access control;


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More efficient journeys through real‐time traffic information and dynamic route guidance (RTTI); Smoother driving using safety systems such as adaptive cruise control (ACC) or stop‐and‐go assistance, vehicle‐to‐X communication (e.g. interactive traffic control, local danger warning); Lower fuel consumption and emissions through measures to support eco‐driving; and Enforcement of traffic regulations, and safe speed and speed limit advice.

Research Overview

There are numerous studies available highlighting the potential impact of ITS/ICT applications on fuel consumption and emissions, but few full‐scale studies with significant results. The benefits of separate measures may not aggregate linearly when combined, making the assessment of multiple or combined measures problematic. It is important to identify the so‐called “real world indicators” to know and understand potential impacts resulting from the implementation of ICT for clean mobility. In the following chapters, key studies in the three different areas, intelligent vehicle, intelligent infrastructure, and driver will be presented and discussed, together with the legal environment. For an overview see Annex 2.

GREEN ITS MEASURES The Working Group approached its task by reviewing proposed ICT measures for clean and efficient mobility and reducing these to a limited core of six areas thought likely to yield the most significant impacts on energy efficiency and environmental effects. The seven “Green ITS” areas thought by the Working Group to hold greatest potential for environmental impact are as follows. They are presented below in the following order: Eco‐driving support Eco‐traffic management Eco‐information and guidance Eco‐demand & access management Eco‐mobility services Eco‐freight and logistics management.


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Eco‐monitoring and modelling These are described in more detail below. For each area the Working Group selected one or more case studies, and prepared a synthesis according to the following schema: Assessment schema

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Eco-Driving Support

One of the most significant measures for reducing fuel consumption and therefore also CO2 emissions is “eco‐driving”, shorthand for a number of techniques to reduce fuel consumption through influencing human behaviour. The aim to change behaviour can be achieved through training, awareness, real‐time information, incentives & penalties, for example. Green ITS technologies can also be applied to support the driver to adopt and then to maintain a more fuel‐efficient driving style. The “Golden Rules of Eco‐Driving” include suggestions such as: Shift into a higher gear early; leave in gear when braking Maintain a steady speed at highest possible gear Look ahead and anticipate traffic flow Switch off engine at short stops Check and adjust tyre pressure regularly Make use of in‐car fuel saving devices such as on‐board computers and dynamic navigation to avoid traffic jams Remove surplus weight and unused roof racks. Already certain of these techniques are becoming an integral feature of the vehicle itself, such as the display of fuel consumption, the stop‐start assistant, eco‐navigation system, gear‐change indicator, advanced semi‐automatic transmission and automatic tyre‐pressure monitoring. Additional impacts can be expected from applications using enhanced vehicle and driver monitoring, adaptive cruise control, additional digital map content and vehicle‐infrastructure communication. As this report is related to ICT/ITS we focus on those eco‐driving measures that make use of information and communication technologies, including: Eco‐journey support – on‐line and mobile information services to the traveller with advice on environmental conditions and on multi‐modal choices, provided before and during the journey; Enhanced navigation using adapted algorithms for dynamic route guidance, e.g. with historic data, least‐fuel routing etc. Cooperative eco‐driving – providing the driver with support, feedback and guidance on a more fuel‐efficient driving behaviour (e.g. CO2 production or cost/saving in Euros) Online & real‐time incentives – “bonus / save as you drive / green points” On‐board monitoring and online coaching of “golden rules of eco‐driving” for drivers.


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Note that in deploying any driver support system it is important to ensure that environmental gains are not at the expense of safety, e.g. these systems should not overload drivers with information or actions, deflecting attention from the driving task or prolonging reaction times.

Case Study: Eco‐drive coaching

Description of measure: Eco‐driving is a way of driving that reduces fuel consumption, greenhouse gas emissions and accident rates. Eco‐driving is about driving in a style suited to modern engine technology: smart, smooth and safe driving techniques that lead to average fuel savings of 5‐10%. Eco‐driving offers benefits for drivers of cars, vans, lorries and buses: cost savings and fewer accidents as well as reductions in emissions and noise levels. Several European countries have implemented successful eco‐driving programmes. Background: education, training, policy etc. Fuel efficient driving can be supported by the use of (non‐ICT) fuel saving in‐car devices like cruise control, tyre pressure monitoring systems and gear shift indicators. Reactive gas pedal. ICT additions: ‐ for commercial vehicles: need to improve HMI for drivers; may need new system development to support eco‐driving for hybrid vehicles; ‐ need real‐time support (but safe HMI, no distraction) ‐ on‐board recorder, with post‐trip feedback & analysis ‐ online Internet service – benchmarking with own behaviour & peers ‐ digital map support and location information ‐ dynamic traffic adaptation (individual) ‐ dynamic traffic adaptation, adaptive cruise control (cooperative system with wireless communication) References: Project SENTIENCE –to optimise drivetrain control for hybrid vehicles Nissan Carwings connected navigation system – with Internet feedback and coaching, comparison with performance of peers (drivers of the same car model).

Functioning: Data captured from vehicle CAN bus.


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Data transfer to fleet owners/management by mobile communication, e.g. GPRS Data analysis according to parameters relevant for Driver Coaching Direct information display in the cab to the driver (HMI) related to Eco‐driving (e.g. speed, gear, rpm, idling, acceleration, tyre pressure, service etc.). Direct feedback is given to the driver concerning the actions to take in order to decrease fuel consumption, both instantaneously as well as averaged for the planned route. Fleet owner/management can extract and compile vehicle data that is relevant to Eco‐driving. These data can be sorted according to a number of variables, e.g. individual drivers and vehicle; route; weight of vehicle and cargo; and can be displayed according to time (weekly, monthly etc.). The information from collected data could be used for an incentive scheme, for education/training, for optimising a logistics operation, for allocation of resources etc. The potential benefits for eco‐driving from use of a gear‐shift indicator has been discussed in an informal working group including the European Commission, car manufacturers and users. It is now proposed that gear‐shift indicators become mandatory in all new cars.

Enabling factors: Improved driver HMI for clear, concise and easy to understand feedback on which actions to take while driving; Improved information presentation to fleet owner/manager in order to process data into meaningful information leading to actions to reduce fuel use; Incentives for fleet owners/management to invest in driver coaching systems and technologies i.e. proof of cost savings and investment pay‐back; Model business case for investment in driver coaching; Incentive schemes for eco‐driving measures, for drivers and for companies; Fiscal incentives to encourage reductions of CO2 emissions; Insurance policy incentives to promote driver coaching; Enhancements to digital map data and other ICT technologies, e.g. real time traffic information. Gear‐shift indicators (GSI): for vehicles with manual transmission, when the current gear is not optimum then the GSI displays to the driver which gear to select for maximum fuel efficiency. Tyre pressure monitoring systems (TPMS): TPMS alerts the driver when the vehicle’s tyres are below their ideal pressure. A well‐inflated tyre offers least rolling resistance and thereby increases fuel efficiency. Driving on tyres with air pressure at 50kPA (0.5kg/cm²) below the recommended pressure decreases fuel efficiency by 2 per cent and 4 per cent in urban and suburban areas respectively.


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Cruise control: Cruise control (sometimes known as speed control or Autocruise) automatically maintains a vehicle’s selected speed. The driver sets the speed and the system continually adjusts the throttle to maintain the set speed; this can lead to lower fuel consumption than that of an unassisted driver. Enhanced digital maps: both the in‐built systems and the driver can operate more efficiently with additional information to help with choice of gear and speed. The most important data concern the current speed limit and the gradient of the road, e.g. to help decide when to change up or down a gear, or when to ease off the accelerator. Vehicle communications: vehicle‐to‐vehicle communication can enhance ACC to allow a vehicle to take account of movements of others further ahead in the traffic, thus reducing the need to change speed abruptly. Also, vehicle‐to‐infrastructure communication can transfer onboard driver and vehicle monitoring data to a service centre, or to the Internet where the driver can compare his performance over time, and against his peers.

Impacts: Eco‐driving can have a number of positive benefits, including: Fleet owners/management: Cost saving due to Decreased fuel consumption Decreased costs for maintenance, service and repair Positive brand image, good will Possible reduction of insurance costs Lower cost of taxes; Driver: Rewards according to green driving skills Less stressful working conditions (due to lower speed) Safer driving, fewer accidents Satisfaction of reducing environmental impact. Long‐term analysis shows that the promotion of efficient driving can increase overall fuel efficiency of passenger cars by five to ten percent, a non‐negligible contribution to reducing greenhouse gases. A review of transport CO2 abatement policies by ECMT, co‐funded by the FIA Foundation, confirms that initiatives to improve fuel efficient driving play a key role for effective CO2 abatement. The report analyses over 400 abatement measures that have either been introduced or are under development across Europe and makes recommendations for future policy direction. While there is general agreement on the order of magnitude of the benefits of eco‐driving support, more structured research is needed. For example, the


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detailed mechanisms linking drivers’ actions with changes in instantaneous fuel consumption and CO2 emissions are not well documented. The link to gear shift and accelerator behaviour is not reflected in today’s micro‐simulation models of vehicle behaviour or traffic; engine/drivetrain models also need to integrate driver behaviour. Research at Leeds, TNO, Imperial.

Cost (vehicle, infrastructure, etc): Systems to monitor fuel economy and display the information to the driver have little added cost, as most data are already available on the CAN bus and existing displays can be re‐programmed. The additional cost for a communication module can be shared with other systems such as pay‐as‐you‐drive or eCall.

Deployment requirements: A proposal for a new regulation concerning type‐approval requirements for the general safety of motor vehicles was published recently, addressing Low Rolling Resistance Tyres (LRRT) and Tyre Pressure Monitoring Systems (TPMS) in order to reduce CO2 emissions from cars. The Commission has also declared its intention to require all new cars to be equipped with a Gearshift Indicator. Data privacy and protection issues for data recorders, online monitoring. Although it has been shown that driver behaviour can be improved towards greater safety and lower fuel consumption simply by the fact that the driver is being monitored, it is important to ensure that the monitoring data are used with suitable protection in the case that the driver is an employee, or are anonymised in case the data are uploaded to the Internet.

Other comments: Traffic infrastructure, regulations and enforcement may need to be modified to support good eco‐driving behaviour, and prevent poor behaviour .

Known Results

Eco‐driving training leads to a reduction in fuel consumption of up to 20% after training, with a significant long‐term effect of 7% under everyday driving conditions. In 2004 an “Ecodrive” programme in the Netherlands resulted in a reduction in CO2 emission between 97.000 and 222.000 tons but it was felt that further driver training and promotion of the programme would be needed to


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maintain reduced fuel consumption. It was also suggested to integrate the principles of eco‐driving in new driver tests96 The European Climate Change Programme calculated that eco‐driving could save 50 million tonnes of CO2 emissions in Europe by 2010. The independent TNO research institute estimates cost savings to society of up to € 128 per tonne CO2 saved. To show the dimension, with an average of 7% saving this is equivalent to approximate annual savings in EU‐27 of 16bn litres of petrol/diesel (> 20bn Euro p.a.)97 Another example of good practice is the European campaign to improve driving behaviour, energy efficiency and safety (ECODRIVEN initiative). This campaign runs across nine countries throughout 2007‐2008 and aims to raise awareness for eco‐driving and smart, smooth and safe driving techniques that lead to average fuel savings of 5‐10%. The campaign wants to reach 2.5 million drivers and avoid 0.5 million tonnes of CO2 in the period up to 201098

Recommendations:

Research to identify and validate the critical parameters for fuel efficiency and eco‐driving. The parameters need to be weighted according to different scenarios and transport situations. HMI development based on user and customer needs and requirements in order to facilitate the deployment and outcome of driver coaching systems. Hybrid power train vehicles require specific eco‐driving methods according to the type of hybrid technology, type of transportation, type of vehicle etc. Research is also needed to optimise hybrid eco‐driving according to different variables, such as long‐and short term optimisation of considering battery life cycles, the interaction between electric engines and combustion engines, instantaneous eco‐driving actions, eco‐driving for long‐routes, the whole hybrid system’s life cycle etc. EU to make low‐resistance tyres, tyre pressure monitoring systems and gear shift indicators a (mandatory) option for all new cars

96 EEA Technical report No.2/2008: Success stories within the transport sector on reducing greenhouse gas emissions and producing ancillary benefits

97 250 million Vehicles, 12.000 km p.a., 7.5l/100km, 7% sustainable saving, 1 liter= 1,30 €

98 see http://www.ecodrive.org and http://ec.europa.eu/energy/intelligent/projects/doc/factsheets/ecodriven.pdf


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Need to develop standards for system performance, data exchange, interfaces etc. Driver training on eco‐driving should be part of the learning package for new drivers and could also cover less experienced drivers. In this context driving schools and professional driving instructors can contribute significantly. Automobile clubs could also offer to their members training possibilities and share good practice.

Eco-Information & Guidance

Due to the explosive growth of portable navigation devices, a high proportion of drivers now use route guidance as an aide for finding their way and, increasingly, also for receiving traffic information and avoiding congestion. All navigation systems, including in‐built and portable devices, depend on a digital map of the road network. Today’s maps provide road geometry and topology as well as various features such as speed limits, road signs and points of interest99. Most in‐built systems and growing number of portable devices use TMC technology to receive and display information on traffic incidents and suggest alternative routes. Other key features are: Vehicle integrated or mobile devices for use in the vehicle as well as outside Real‐time data about free/full parking facilities; Pre‐trip & on‐trip multi‐modal journey planning; Weather information, etc. Nearest public transport lines and fares; In the future additional safety features like actual incidents, road conditions, local warning messages, accident critical zones with link to respective traffic signs e.g sharp curve ahead, speed warnings, commercial vehicle specific restrictions like weight of bridges, etc. are expected to be displayed as well.

Navigation systems can provide substantial benefits for fuel economy and environmental impacts. These include:

• Savings of driving time and fuel consumption, avoid traffic jams through real‐time traffic information

• Reduction of mileage driven in unfamiliar areas by 16% (TNO study)

• Saving of up to 30% mileage searching for a parking place

99 Wikipedia, Automotive Navigation System


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• Less time caught in traffic jams, with lower energy consumption and emissions when supported by inter‐modal information.

However, there are opportunities to enhance navigation and guidance even further with a view to energy efficiency and lower environmental impacts. For example, by adding additional information to a digital map such as gradient or environmental sensitivity it would be possible to use a routing algorithm that optimised a journey for fuel economy or least environmental impacts. Such “eco‐guidance” features have already started to appear in some navigation systems, where as well as a choice of shortest or fastest route, or route with most or least motorway, a driver could be offered the route with least‐CO2 emissions or with least nuisance. In built‐up areas such eco‐information could extend to real‐time guidance taking account of traffic signal optimisation or actual and historic traffic data, or where a routing server could distribute traffic over a number of alternative routes, thereby avoiding overloading any individual links. Recent evidence for the potential impacts of eco‐information and guidance includes a 2006 study by TNO 100 into the effects of driving with the help of a navigation system on traffic safety in the Netherlands. The research showed that use of navigation systems has a positive effect on traffic safety:

• Drivers who do not use a navigation system make 12% more claims for damage and claim 5% more damage costs

• Using a navigation system increases driver alertness and reduces driver stress

• Using a navigation system improves the driving behaviour and performance of the driver when driving in an unfamiliar area and to an unfamiliar destination

• Using a (good) navigation system when driving in an unfamiliar area can reduce driver workload, and reduce kilometres driven by 16% and journey time by 18%.

Assuming penetration of 20% of cars in Europe and an average annual mileage of 12000 km and average consumption of 7.5 l/100km, a reduction in total mileage of 16% by 50% of all users would result in a saving of 48 billon kilometres or 3.6 billion litres of fuel, worth some €4.5 billion Euro per annum.101 Now that portable navigation systems have become quite inexpensive, the remaining barriers to their introduction can be summarised as follows:

100 TNO 2007‐D‐R0048/B, December 2006

101 250 million vehicles, 12.000 km p.a., 7.5 l/100km, 16% saving, 1litre = 1,25 Euro


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Traffic data are often incomplete and inaccurate RTTI/TMC Traffic information is not always free of charge Lack of European‐wide standards and interoperability Important safety features, environmental and alternative traffic mode information not yet integrated or available Lack of on‐line information services for drivers e.g. parking information, urban road traffic information, environmental information Limited options for integration of mobile navigation systems in vehicles.

Recommendations

Insist on safe and sustainable integration of mobile navigations systems in vehicles; Agree on certification process for nomadic devices to prove compliance with European guidelines; Expand take‐up of vehicle based traffic data collection and integration with fixed systems; Explore potential for cooperative systems to improve data collection and exchange and agree on deployment roadmap Integrate more safety & environmental features for safer and eco‐friendlier driving. Stakeholders comprise a diverse group including the European institutions, vehicle manufacturers and automotive suppliers, nomadic device manufacturers, public authorities/traffic centers, infrastructure and road operators, service providers. As these systems are relatively simple and inexpensive, they can be introduced quickly and are easy to upgrade as technologies advance.

Eco-Traffic Management

It is estimated that traffic congestion costs about 2% of EU GDP. It also leads to extra fuel consumption and thus CO2 emissions. Optimised traffic flow management & control helps to improve road safety and also contributes to clean & efficient mobility as improving traffic flow leads to shorter journey times and lower average fuel consumption, while fewer stop‐start cycles leads to lower fuel consumption and related emissions. There are a number of ways to improve traffic management to yield lower overall fuel consumption and CO2 and pollutant emissions. The aim is to help


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traffic flow more smoothly, by reducing vehicle stops and acceleration‐deceleration cycles and by helping drivers to travel at the speed where fuel consumption is minimised. Another group of measures aims to give drivers information and guidance to help them reach their destination with least delay and lowest emissions, through collection of traffic monitoring data, and providing routing recommendations to avoid any congestion. Where the volume of demand in the network does not permit such optimisation, then various tools for demand management are available. These aim to suppress part or all of vehicle‐based trips and to encourage drivers to use more energy‐efficient means of travel and transport. Significant benefits can be achieved by the deployment of one of the latest generation of dynamic urban traffic control (UTC) systems. These measure traffic flows and queue lengths and alter the traffic signal parameters dynamically to minimise total vehicle delay or another criterion. Installing such a system to replace fixed‐plan traffic control can already bring significant benefits for the environment. However, there is potential to increase benefits further by optimising the traffic network management according to energy consumption or emissions.

Case study: Co‐ordinated Dynamic Urban Traffic Control and Traffic Management

Description of measure: Dynamic traffic signal control relies on the detection of vehicles in real time and uses an embedded model to estimate a performance measure based on such traffic parameters as delay, stops and congestion. This performance measure may be optimised to maximise the traffic capacity across a signal control region, or to coordinate vehicle flows so as to minimise the number of stops. Performance measures may be converted to air pollutant emissions, fuel consumption or carbon emissions so that signal timings can be optimised to reduce environmental impact or minimise journey cost by reducing fuel used. Good traffic management becomes most important when the network reaches saturation. At this point queue location must be managed (to prevent blocking upstream junctions) and also speeds and flow levels (to reduce emissions or noise). This can be achieved through gating and metering of traffic by using the green splits and offsets, or with variable message signs (VMS) to advise speeds or alternative routes. When traffic problems recur at the same time and place then management measures can be implemented in specific areas of the network or at specific times of the day (or both). These measures can be tactical or strategic. One tactical measure could be the relocation of traffic congestion away from a narrow, residential street, with many pedestrians, to a more open space where


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natural ventilation can disperse any pollution. Strategic measures include park and ride schemes and bus priority lanes, giving pedestrians greater priority at traffic lights or green wave signal synchronisation through a series of junctions.

Functioning (how it works): The intelligence and flexibility of ITS provide the potential to manage networks across modes so that an integrated traffic control and management system has due consideration for the benefits achieved through public transport integration. Traffic management measures on motorways include variable speed limits through VMS, emergency stop lane/hard shoulder running and access control using ramp metering. Multi criteria traffic control can be achieved dynamically in time and space against different objectives, according to various high‐level operational strategies. Even if a measure reduces the volume of stop‐start traffic it may have second order effects that can encourage traffic demand to grow. In urban areas traffic management can try to balance the conflict between providing priority for public transport (red truncation, green extension), pedestrians (short cycle times, scramble junctions) or vehicles. It is important to develop evaluation tools to assess the different trade‐offs and the performance of various measures. This information can be presented to the operator and traffic manager to improve decision support, and also to the public to affect route and mode choice.

Enabling factors: Reliability of data collection Sensors for traffic, carbon emissions and air quality Standardised databases and statistical analysis to gain information and knowledge from the data collected Accepted methodology(ies) for assessing the emissions and relating these to traffic system parameters Communication network (low latency) between adjacent traffic signals Standardised, user friendly and simple to understand information platform

Impact: The impacts of dynamic traffic management usually begin immediately and the pay back period is usually within short periods typically two years. Main impact is in reduction in congestion and related emissions.


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Timing Intelligent transport systems are being delivered to a greater and lesser extent, across the whole of Europe mainly on trunk roads, motorways, towns and cities but also in rural and other networks. However the real challenge is for the control and management of traffic to be integrated across all systems (up to 3 years), networks (up to 5 years), and modes (10 years).

Deployment requirements & barriers: It is becoming increasingly important to have standardisation not just of the hardware but the database formats, software, information platforms. As ITS and other technologies are rolled out across Local Authority boundaries, across regions, nationally and across Europe consistency in all respects will have to be achieved. Barriers are political, organisational, technical and will require investment. Difficulties will arise if nationally managed motorways are not integrated with the urban road network to provide seamless management of traffic.

Deployment actions (what, who, when, how…): These depend on the technology and the purpose for which it has been deployed. In urban areas demand responsive control would be implemented by traffic engineers when the traffic flows in a signal controlled region are continually varying through the day and from day to day by typically more than about 10%‐15% resulting in congestion. The demand responsive technology would be a substantial investment made by the Local Authority and when installed, calibrated and fully commissioned will have justified its investment in typically 18 months. Maintenance and running costs of the system should be outweighed by benefits in terms of reduced delay shorter journey times, fewer accidents and less impact on the environment. An air quality action plan would be deployed when the weather conditions are such that at the expected level of traffic demand a pollution ‘hot spot’ is likely to occur. In this case when the combination of conditions occur a predefined signal plan will be implemented to, for example, relocate queues to an open space to enable the natural dispersion of tailpipe emissions. This strategy does not reduce emissions but simply spreads them around the network to avoid excessive levels at a particular junction. A complementary strategy would be to implement a park and ride scheme to reduce the traffic flows sufficiently to prevent the congested related emissions from occurring.

Recommendations


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Set up a European study group of stakeholders to identify and specify best practice. Develop a harmonised technical framework allowing competition and freedom to integrate technologies. Evidence for the effectiveness of dynamic urban traffic control is strong and established over many years of experience. A pioneering system was the SCOOT (Split Cycle Offset Optimization Technique) UTC system developed by TRL as a tool for managing and controlling traffic signals in urban areas. It is an adaptive system that responds automatically to fluctuations in traffic flow through the use of on‐street detectors embedded in the road. The effectiveness has been assessed by major trials in five cities (Glasgow, Coventry, Worcester, Southampton, London) where a reduction in journey travel time by 8% (cars) and 6% (buses) was measured, and a 20% reduction in delays102. On critical route sections improved traffic management can reduce traffic delay and congestion by up to 40%, with equivalent energy savings. A recent quantitative evaluation trial study103 on the Tokyo Metropolitan Expressway and its new “Oji section” showed that the reduction of traffic congestion reduced annual CO2 emissions in central Tokyo by between 22 and 31 million tonnes. In fuel conversion terms, this reduction corresponds to the annual gasoline consumption of approximately 10,000 passenger cars. A study in Southampton found that a Parking Guidance and Information System could reduce the average time spent searching for a parking space by 50%. If as is the case in some cities up to 30% of all vehicles in urban central areas are looking for a parking spot, overall saving on fuel and related emissions would be substantial. Traffic light synchronization has the potential to increase intersection throughput for private traffic by 15%. ACEA104 estimated the yearly CO2 reduction potential and costs of substituting 50% of current traffic lights with modern dynamic UTC, which generates an optimal traffic flow by adjusting to traffic conditions, and came to the result that 2.4 million tonnes of CO2 p.a. could be saved across the EU. The UTOPIA (Urban Traffic Optimization by Integrated Automation) /SPOT (System for Priority and Optimization of Traffic) system developed by Fiat Research Center, ITAL TEL and MIZAR Automazione in Turin, Italy has been fully operational since 1985 on a network of about 40 signalized junctions in the central area of Torino and is now used in several cities in Italy, the Netherlands, USA, Norway, Finland and Denmark.

102 SCOOT: http://www.scoot‐utc.com/

103 JAMA documentation on CO2

104 ACEA Position Paper “ Reducing CO2 emissions through infrastructure measures”, May 2008


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The improvements attributed to UTOPIA (at 1985/86 traffic situations) were increase in private traffic speed of 15,9% on average, and of 35% in peak times. Public transport, which was given absolute priority, showed a speed increase of 19.9%.

FIGURE 0.6 SPECIFIC VEHICLE CO2 EMISSIONS VS. SPEED

Increase in average speed dramatically reduces fuel consumption as shown in Figure 8. Future development aims to adapt UTOPIA into a flexible, scalable and modular system for Traffic light controller monitoring Actuated and adaptive traffic control and to become the platform to build on future Urban Traffic Control applications105 Another measure in the Green ITS traffic management toolbox is the variable message sign (VMS). VMS can guide traffic away from problem areas, optimise section speed and capacity and lead to 10‐30% less accidents with 2‐8% less emissions. It can also provide traffic information and re‐routing recommendations, that can influence drivers to change their behaviour and lead to congestion relief. Intelligent Co‐operative Systems106 are the next big challenge in automotive electronics and ITS. Cooperative systems allow communication between vehicles and infrastructure (vehicle‐to‐vehicle, vehicle‐to‐infrastructure and vice versa) and even with an equipment rate of only 20% (according to the German INVENT project) could lead to fewer traffic jams on selected highway sections due to

105 Fabrizio Biora, Mizar Automazione S.p.A.,Nordisk Trafiksignalkonferenz, Stockholm May 2007

106 http://www.cvisproject.org/en/about_cooperative_systems/introduction/


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smoother traffic flows. For example, the provision of personalised real time traffic information to drivers represents a promising service whose application will allow motorists to make informed route choices. It will also be possible in the future to book a parking space ahead of the trip. In this context “search traffic” can account for up to 30% of urban traffic at peak hours107, so the resulting decrease in congestion can significantly contribute to energy savings and environmental protection. Indeed intelligent co‐operative systems increase the "time horizon", the quality and reliability of information available to drivers about their immediate environment, and about other vehicles and road users, enabling improved driving conditions leading to enhanced safety and efficiency of mobility. Similarly, co‐operative systems offer increased information about the vehicles, their location and the road conditions to the road operators and infrastructure, allowing optimized and safer use of the available road network, and better response to incidents and hazards. Intelligent co‐operative systems will build and expand on the functionality of autonomous and stand‐alone in‐vehicle and infrastructure‐based systems, such as Intelligent Vehicle Safety Systems (eSafety systems), including Advanced Driver Assistance Systems (ADAS), traffic control and management systems, and motorway management systems. The benefits of intelligent co‐operative systems stem from the increased information that is available of the vehicle and its environment. The same set of information can be used to extend the functionality of in‐vehicle safety systems, and through vehicle‐to‐infrastructure communications for more efficient traffic control and management. The benefits include: Increased road network capacity Reduced congestion and pollution Shorter and more predictable journey times Improved traffic safety for all road users Lower vehicle operating costs More efficient logistics Improved management and control of the road network (both urban and inter‐urban) Increased efficiency of the public transport systems Better and more efficient response to hazards, incidents and accidents.

107 “Sustainable roads”, ERF/IRF Discussion Paper, April 2007


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A key project in this context is CVIS (Cooperative Vehicle Infrastructure Systems) to Create a unified technical solution allowing all vehicles and infrastructure elements to communicate with each other in a continuous and transparent way using a variety of media and with enhanced localization; Enable a wide range of potential cooperative services to run on an open application framework in the vehicle and roadside equipment; Define and validate an open architecture and system concept for a number of cooperative system applications, and develop common core components to support cooperation models in real‐life applications and services for drivers, operators, industry and other key stakeholders; Address issues such as user acceptance, data privacy and security, system openness and interoperability, risk and liability, public policy needs, cost/benefit and business models, and roll‐out plans for implementation. The project deals with the following applications (listed according to customer preferences): Area routing and control Cooperative traveller assistance In‐vehicle map update Obstacle warning Road status report Urban parking zones Flexible lane allocation Personalized route planning In‐vehicle internet. All of the applications are of environmental relevance but the project is still in progress and no results are currently available.

FIGURE 0.7 BETTER DATA – BETTER INFORMATION


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This figure shows how cooperative systems can break the “vicious circle” of ever‐worsening traffic problems by offering – for the first time – new ways for drivers and their vehicles to interact (and not just react) with a more intelligent infrastructure. And that new intelligence is due to new kinds of information that come, at least partly, from individual road users. Urban traffic management and control centres cover a certain road traffic network of relevance. They are not applicable to other roads. E.g. traffic light synchronization is not relevant for rural roads. The innovation in CVIS is to link vehicles to the nearby roadside systems, allowing the traffic control system to interact with individual vehicles, e.g. to set up a local “green wave”, or to give a driver a recommended route to his destination that avoids known trouble‐spots. Such a system could easily be optimised for least total fuel consumption rather than delay, that could further reduce emissions. In principle, with vehicle‐infrastructure communication it would be possible to monitor each vehicle’s fuel consumption in real time and provide feedback to drivers as well as anonymous data to the traffic control system for signal optimisation. Barriers to better traffic management & control are: Technologies that are needed to create applications where vehicles and roadside infrastructure can talk to each other directly are not yet fully developed and validated Cost of investment in road construction, road safety improvements and for intelligent infrastructure Cost of traffic data collection High market fragmentation for roadside and in‐vehicle equipment and related Telematics services Lack of technical standards No or poor information on alternative or complementary traffic modes/means including time and cost to reach a destination Low willingness of drivers to pay for traffic information Political priorities and limited budgets. Main entities involved are not yet persuaded of the utility and benefits of investing in cooperative system RTD, and the whole domain is as yet undeveloped.

Possible Solutions

Structured and organized exchange and political acceptance of best practices Gather and disseminate evidence for environmental benefits of advanced management & control systems


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Improve and organise collection of traffic information through floating car/phone/device data Initiate research & development of eco‐optimised traffic management models including multi‐modal traffic planning and forecasting Investigate potential of cooperative systems with regards to safety and eco‐efficiency Expand work on R&D for environmental monitoring & modelling, methods of impact assessment and impact analysis, development/adaptation of simulation models Improve incident detection and post‐accident management Dissemination and application of onboard diagnostics to identify problems before they lead to breakdowns or accidents Give drivers on‐line access to real‐time traffic, travel and parking information After careful analysis public authorities/road operators should invest in state‐of‐the‐art intelligent infrastructure, e.g. VMS, traffic control, speed management in respective areas National and local governments should cooperate and harmonise the approach to environment‐friendly mobility in order to ensure interoperability, lower cost and greater impact

Eco-Demand And Access Management

Under the heading of “Eco‐demand and access management” there are two related types of measure that can influence emissions and energy use, Demand Management and Access Management. Each has a different focus but are both used to better manage mobility by acting directly on demand for mobility, as opposed to Eco‐traffic management that tries to optimise its supply. Demand Management describes measures to influence the demand for transport and mobility. Mobility management tries to enable mobility while at the same time reducing the burden of increasing traffic.

Key Principles

Focus on mobility and accessibility, and not traffic Strive for sustainable, more efficient, socially acceptable and ecological mobility Base measures on information, communication, organization and coordination Change choice of traffic means (modal split) in the direction of more environmentally friendly and more sustainable means of transportation (e.g. walking, bicycling, car sharing, public transport, railway & inland water transportation vs. truck, cars and planes)


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Managing demand for mobility in an eco/energy‐efficient way requires an integrated approach and involvement of all relevant stakeholders, provision of reliable, real‐time and dynamic information on alternative means and schedules and information on how they connect to allow the private and commercial customer to go from A to B. Last but not least information must be provided on journey costs and travel time. Each customer needs full knowledge of the alternatives to choose according to his personal priorities (energy‐efficiency, environmental friendliness, productivity (cost/time)). This networking of alternatives is not yet deployed. Consequently environmental benefits are either not yet fully evaluated or are based on simulations under limited assumptions. Socio‐economic aspects on how modal shift would impact employment, overall cost of mobility and disposable income have not been investigated neither.

FIGURE 0.8 REDUCTION CONTRIBUTIONS BY MODAL SPLIT

ISIS108 sees the potential for a 15% reduction in CO2 through modal split alone, an additional 7% with the help of ITS and another 1% through incentives to further improve vehicles. A variety of techniques may be used for demand management. Probably the most common is some form of charge relating to vehicle type or vehicle use. This can take the form of a specific tax or charge, or can be related to the distance travelled, to the location where the vehicle is used, or the time of day. A congestion charge, for example, may even vary directly according to the degree of congestion.

108 Maurizio Tomassini, ISIS, Presentation Brussels 23 May 2008


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As a complement to demand management measures, it is important to raise awareness of modes of transport that are less energy‐consuming than road transport, especially for moving goods long distances. Switching to rail transport or developing efficient short sea shipping can be particular effective when different modes of transport are effectively combined. Air transport still has a much greater environmental impact than other modes and is growing fast. Great efforts are needed to make necessary trips more energy‐efficient without sacrificing productivity. Access Management helps to achieve the necessary balance between traffic movement and accessibility by controlling access by vehicles to specific areas, with the aim to reduce congestion or improve air and environmental quality. The scheme may distinguish between different vehicle types or characteristics such as emission class, may restrict access to residents of a zone, or may limit the number of trips. A number of ITS technologies may be used for vehicle detection and access management. Traffic access to environment‐critical areas can be controlled by intelligent access restrictions, intelligent infrastructure and charging schemes in order to Manage daily traffic load and flow Create a safer environment, less severe crashes Reduce inner‐city congestion and pollution Increase fuel economy Improve inner urban living quality Charge according to polluter‐pays principle

Case study: Access Management taking account of emission criteria

Description of measure: Road charging and Low Emissions Zones.

Technologies that control the access of vehicles to a specific part or area of a city or urban area. This involves ways of observing number plates of vehicles entering, transiting and exiting from the ‘controlled’ zone. The measure can address policy objectives such as reducing congestion and/or emissions. Any pricing policy should reflect the objective, for example to influence congestion a charge relating to distance or to enter a zone would be the same for all vehicles. An emissions policy might lead to no charge for smaller, cleaner vehicles and heavy penalties for the higher emitters.

Functioning: Through the pricing policy the driver is faced with higher out of pocket costs for each trip requiring access to the controlled area. This makes the alternative


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modes less costly and may induce a modal shift.

Enabling factors: Off‐vehicle technologies are applied in London and other cities, where roadside monitoring is combined with automatic number plate recognition; comprehensive database and link with the national vehicle number plate database for enforcement; billing mechanism and exemption database. Tolling gates can collect charges through automatic fare collection. Access control through electronic vehicle identification (EVI); for example identifying whether the vehicle is private or commercial, fuel type, Euro standard whether or not a diesel vehicle has a filter etc. as in the Netherlands. Air quality within a city varies by time of day; technologies with flexibility and a predictive mechanism needed to allow pre‐trip warning of potential problems. Development of a ‘fair’ system is essential. However, in the case of threats, to health, measures do not have to be fair, switching in mandatory measures when need. Require mechanisms for dissemination to the users. Potentially in the future, technologies on vehicles to provide information for billing and enforcement but will need incentives eg lower tax/rebate on fuels

Impacts: Reduced congestion, lower fuel consumption and emissions.

Evidence of impacts is still growing as these measures are applied more generally across Europe. The London congestion charging zones have resulted in a 16,4% reduction in CO2 emissions (2003 vs. 2002) and 12% lower emissions of NOx and PM10 from road traffic, based on a 30% reduction in traffic congestion. Similar schemes have been successfully implemented in Oslo and Trondheim, where they also led to an increase in revenue. However, there are also critical voices. A Swedish newspaper109 reports on the Stockholm congestion charging scheme that costs for the urban charging stations have doubled over the last 5 years compared with an initial estimate of around € 97 million, and that first benefits cannot be expected before 2011 at the earliest. In the access control scheme in Milan, city center PM emissions were down 30% and the number of cars by 10%, resulting into quicker public transport journeys.

109 Dagens Nyheter, 20.02.2008


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There is a trend to introduce environmental zones in more European cities using different methods. The environmental zone in Prague has been successful in reducing emissions from heavy vehicles entering the city centre through application of weight restrictions. Estimated reduction of CO2 from this measure was given as 1650 tons p.a.110

Barriers To Introduction

Integrated planning processes are hampered by organizational divisions between transport modes, government agencies and services Transport planning tends to be regarded as a technical task, quite often lacking adequate stakeholder participation and delivering only piecemeal measures111 General poor acceptance by drivers who see higher journey costs and less freedom Public transport alternatives not always available, may be expensive & inconvenient for some travellers High cost of infrastructure based schemes Lack of interoperability across Europe Conflict of interest between travellers and residents of environmental zones

Recommendations

Develop and agree amongst European Commission and Member States for a European interoperable solution and/or framework: one device, one contract, one invoice principle Offer flexible access to core and/or environmentally sensitive areas of a city based on traffic density, congestion, air quality (e.g. smog) and time of day Apply intelligent systems with effective enforcement Set up Congestion Management Centres to measure air quality (online) in order to redirect and guide vehicles based on temporary speed limits displayed on variable message signs and/or on vehicle displays, opening/closing additional lanes (incl. hard shoulder), remote ramp metering, traffic light synchronization, etc.

110 EEA Technical report No. 2/2008: Success stories within the road transport sector on reducing greenhouse gas emissions and producing ancillary benefits

111 EU sponsored PILOT Project on “Sustainable Urban transport Planning” (SUTP), 2007


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Expand Park & Ride offer and provide multi‐modal alternatives in a transparent way Privilege environmentally friendly vehicles Exchange and learn from best practice.

Eco-Mobility Services

Under this heading we understand a wealth of applications using information and communication technologies that complement the principal means of travel and transport considered under “Intelligent Transport Systems”. These services (mainly intended for use by persons and not for goods) share the quality that their use implies a lesser impact on the environment than the use of individual road transport. Although there are many examples we could include in this section, we concentrate here on three groups of service, that are described below: incentive schemes individual mobility collective mobility.

Incentive Schemes

Under incentive schemes we include ideas such as “green bonus” or “earn‐as‐you‐travel” and “pay‐as‐you‐drive”. Beginning perhaps as a voluntary scheme where people try to live within a certain CO2 budget, this could work by an application in a user’s GPS‐enabled mobile device that could record sufficient journey information to allow an estimate of CO2 emissions. The analysis could be made via an Internet service operated by a service provider or agency on the basis of uploaded data from each user. The scheme would then reward or punish the user according to his/her CO2 use compared to budget – awarding extra points for saving CO2 and claiming back points when spending more than the allowance. Already there are a number of schemes in the marketplace for “pay‐as‐you‐drive” insurance, where the cost of insurance is invoiced regularly on the basis of detailed exposure information (location, time, date) that is closely related to risk. These schemes are successful in both reducing the cost to users (who modify their driving to reduce costs) and reducing the risk to insurers (who receive more or less revenue when driving is more or less risky, respectively).

Individual Mobility

Under individual mobility schemes we consider ideas that preserve many of the qualities of individual transport that today favour its continual growth in the face


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of ever‐growing demand and consequent congestion. Thus, the “door‐to‐door” convenience of a private car or two‐wheeler; the freedom to enjoy one’s own infotainment content and climate control; the feeling of security; and the flexibility to set one’s own timetable and route are benefits that must be approximated by any innovative service aspiring to attract drivers out of their vehicles. However, pressure is growing to find more economical ways to travel, and with rising fuel prices and advantages such as those granted to “high‐occupancy vehicles” where they may use a reserved highway lane, there is interest to find novel ways to increase vehicle occupancy. A combination of mobile phone with GNSS positioning, an Internet‐based broker service and a kind of “Web 2.0” social community could offer a way that a vehicle driver could find compatible and trustworthy passengers to share a ride whilst offsetting some of his travel costs and perhaps even provide an agreeable travelling companion! Such new mobility services could be stimulated by suitable tax or other incentives. A user could call up the ride‐share service on the Internet or on his mobile device, and see on a map who was offering places to his destination, with the time of passing a number of potential pick‐up points.

Collective Mobility

Collective transport services, ranging from taxis through mini‐ and midi‐bus to full‐scale bus services, could be configures to help reduce greenhouse gas and other emissions, and fuel consumption. Starting with taxis, these could become more responsive if a potential customer could see on his mobile device the availability of all taxis in the nearby area, and could call one up simply by “clicking on” the nearest one. The customer could also indicate his destination & departure time to an online Web‐service, and the interested taxis could respond directly. This would make booking easier for both customer and taxi driver. It could also open the way to a more successful shared taxi service by helping taxis and passengers to meet up and match. The smaller service buses could gain customers and improve revenue by adapting their routes and service timetable, by using communication with users’ mobile handsets to identify potential customers and to provide them with information on the next service to pass (location and time). Similarly, even fixed‐route large‐vehicle services could benefit from knowing passengers’ intended destination, as this could help to adapt the timetable and the service volume offered. Departures could be programmed more flexibly for example to synchronise with feeder services or Park & Ride facilities. However, users need to know in advance and during the journey the timetable of each vehicle relevant to their journey. This information is needed before the driver sets off in his car, and during the journey if it is still possible to use multiple modes.


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All these improvements could increase the attractiveness of collective transport and help persuade drivers to leave their vehicle at home or at a peripheral car park, thus providing direct environmental benefits. And these technologies could help make the service offering much better adapted to the changing demand, that would of course need to grow to compensate for those drivers changing from car to collective means.

Eco-Freight And Logistics Management

The final domain of Green ITS to be considered is that of freight and logistics, and fleet management. The predominant form of ITS today in this sector is the fleet management system and services. ITS for fleet management includes the management of cars, vans and trucks. Fleet (vehicle) management functions can include vehicle maintenance and financing, vehicle and driver despatching, telematics services (such as floating‐vehicle data collection, vehicle tracking and geo‐fencing, cargo tracing, remote diagnostics and electronic fee collection), driver time and shift management, fuel monitoring and management, and health & safety management. This requires an in‐vehicle unit (original or after‐market fit) for collecting certain monitoring data from the vehicle, driver and cargo, and sending these to a service centre. This is linked by two‐way wireless communication (using either cellular or dedicated radio networks) with a service back‐office that analyses the monitoring data and forwards it to the fleet owner, freight forwarder and/or cargo customer. The management or service centre can then contact the driver directly with advice or questions, and also the recipient of the goods at the destination of the journey, for example to confirm their expected arrival time. ITS systems allow the collection of data for both real‐time and “a posteriori” evaluation. It also helps the transport operator to develop strategies for better capacity utilization, select and optimise different transport modes (also from an environmental point of view) and to inform the customer on where his order currently is and when it will arrive. Concerning driver behaviour ICT plays a key role to check working hours, violation of traffic or other transport related regulations (e.g. overspeeding or alcohol misuse) and represents the means for integrated and interoperable payment. Professional planning and control avoids unnecessary trips, reduces accidents and related emissions and helps to cut cost. ITS also enters into the overall logistics chain, by linking in the movement of goods (using multiple modes if appropriate) with the production, handling and delivery processes. Such “smart logistics” can benefit from the use of mobile communications between vehicle and other actors in the chain, to better synchronise the transport process with all other processes that depend on the timely delivery of goods. Thus the use of traffic information, route guidance and electronic payment services can allow better coordination with the receiving end of a goods shipment – with adaptation in case of unforeseen problems – and a


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more efficient process if paperwork is replaced with online payment and administration services. This ITS domain offers potential for substantial environmental benefits beyond those achievable by the services mentioned above. For example, one of the biggest sources of inefficiency is a low load‐factor (ratio of the average load to total vehicle freight capacity) of many goods vehicles on the road. The proportion of truck journeys where the truck is empty (load‐factor zero, or “empty hauling”) was 25% of total truck‐km in Germany in 2000, and more than 40% in the Netherlands. There is also a tendency towards more frequent but smaller shipments as a result of the drive for greater logistics efficiency, that has a negative impact on load factors. Online services to auction spare transport capacity can improve load factors, as can advances in packaging and loading systems that allow more flexible use of a truck’s capacity. Also operational improvements such as transhipment facilities with communication links to operators and their vehicles can increase load factors without adding excessively to journey or shipment times. According to market research from independent analyst Berg Insight, the number of fleet management units deployed in commercial fleets in Europe will exceed 1 million in 2008. Even though the overall penetration level is just a few percent, some segments such as road transport fleets may attain adoption rates above 30 percent. Smart logistics & fleet management belong to an area where the market provides powerful incentives to take up Green ITS measures, and government interventions may not be needed. If investing in ICT provides economic and energy efficiency rewards to the investor, the market will develop itself. The main limitation of the market mechanisms is apparent when the costs of time are more valuable than the costs of transport, hence there is not a strong disincentive to running empty or lightly‐loaded goods vehicles.

For the purpose of this report we have identified the following measures that can yield environmental benefits:

• Administration, planning, directing and control of vehicle fleets

• Optimization of end‐to‐end flow of goods

• Coordination of road and inter‐modal goods transport

• On‐line tracking & tracing of goods vehicles & cargo

• Speed alert and control

The key benefits are:

• Significant productivity gains through optimized route planning and guidance


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• Reduction of empty trips leading to less emissions

• Lower fuel consumption by maintaining an optimum vehicle speed

• Less accidents, less thefts/follow up actions

A recent study, the SMART 2020 Report112, argues that through a host of efficiencies in transport and storage, smart logistics in Europe could deliver fuel, electricity and heating savings of 225 Mt CO2 equivalent. The global emissions savings from smart logistics in 2020 would reach 1.5 Gt CO2 equivalent, with energy savings worth €280 billions. The implementation of efficient logistics levers enabled by ICT could result in an emissions reduction of approximately 27%, and road transport abatement opportunities represent 70% of the total abatement potential from energy efficiency measures in all sectors. There are significant barriers to progress including: Fragmented, highly competitive market in Europe Many small companies with only few vehicles supplying a local/regional markets, low penetration of ITS technologies High investment costs for systems, high operating costs Lack of standards and need for open systems Insufficient interoperability between products Uncertainty and inconsistency on regulatory issues Lack of fiscal or operational incentives available from public sector As solutions the following points are under discussion: Investigate possibilities of “green” logistics using an integrated approach focused on emission reduction and interaction of in‐vehicle technology and systems with infrastructure and information Convergence of multiple applications in single on‐board unit Harmonization and interoperability for on‐line services to combat fragmentation of on‐line service market Integration of multiple services via Internet Develop/enhance truck specific navigation systems & maps

112 SMART 2020: Enabling the low carbon economy in the Information age, The Climate Group, June 2008


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Introduction of city logistics, special systems and facilities optimised for urban deliveries, e.g. favouring electric vehicles for downtown operation and transhipment facilities where goods can be transferred from large vehicles to city‐friendly vehicles.

Eco-Monitoring And Modelling

This last “Green ITS” area is horizontal in the sense that it is not an end service itself but can be an essential input to all the other services. Traffic monitoring techniques are rapidly becoming more accurate, with more complete road network coverage and with enhancements such as the integration of historical data. Floating‐vehicle data collection is moving from a few “islands” of equipped fleets (e.g. taxis, trucks) in large cities to a more generalised monitoring of all drivers’ mobile phone location, and now to full‐network monitoring across the entire country by the newest generations of portable navigation devices with a cellular data connection. Infrastructure‐based monitoring is also expanding, with use of embedded cable loops or video/radar detectors at key locations. These may also be used for traffic control vehicle detection or automatic enforcement. Environmental monitoring is still largely limited to the collection of air quality data at a limited number of locations in Europe’s larger cities. These data are required for compliance with European legislation on permissible levels of the main airborne pollutants. However, they fall a long way short of the sort of complete coverage achieved for traffic monitoring for example. Already a number of cities use vehicle‐based air quality monitoring, and the UK MESSAGE project is investigating the potential of mobile monitoring combined with data management to relate air quality to vehicle emissions, weather, road design and driver behaviour. The results of both traffic and air quality monitoring are needed as the basis of other Green ITS services. Thus, travellers need to know where there is unexpected traffic congestion in order to find the quickest route to their destination. But they may also wish to know where air quality is poor so as to avoid an ozone peak. Traffic managers also need these data in order to implement strategies for redirecting or reducing traffic in the locations and at the times when air pollution exceeds permitted standards. For both traffic and environmental monitoring, data collection alone is not sufficient to guide remedial actions. What is needed is forecasts of conditions in the future and at points of particular interest in the road network. This need can only be met by an integrated traffic and environmental model. The first generation of such dynamic forecasting models is now entering the market, such as the EnViVer integration between the Vissim dynamic microsimulation traffic model (PTV and Vialis) and the VERSIT emission model (TNO), but there still remains much development and validation to be done.


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CONCLUSIONS The Working Group (WG) is convinced that global warming and the need to preserve the environment in the face of growing demands for mobility must be addressed and that the need is urgent to act quickly. The WG accepts the European challenge to the road transport sector to make its contribution to the overall reduction CO2 emissions by 20% by the year 2020. The WG believes that the key to achieving sustainable mobility for people and goods lies in the application of Information and Communication Technologies (ICT) in the form of “Green ITS” measures, that can deliver substantial benefits especially if coordinated in an integrated approach across a number of key sectors. Already the introduction of advanced ICT for road transport will bring secondary effects on environmental criteria and energy efficiency, even if these are not their primary purpose. So the WG supports the efforts to accelerate the deployment of ITS and ADAS promoted by the eSafety initiative. The WG believes that there is substantial untapped potential for a new generation of Green ITS technologies, applications and services whose primary purpose is to reduce environmental impacts or increase the energy efficiency of road transport. These measures lie within the triangle of an integrated approach that treats simultaneously the infrastructure, the vehicle and the driver. The WG concludes that to achieve sustainable mobility needs an integrated approach, where non‐ICT measures can take their place alongside the new “intelligent” techniques. The success of Green ITS will nevertheless depend on the quality of the underlying infrastructure. Therefore it is necessary to bring Europe’s road, traffic management and transport system infrastructure up to the current state‐of‐the‐art before full benefits can be obtained from ITS deployment. The WG has identified seven types of Green ITS measure that seem to offer the greatest potential for environmental benefits. Although the WG did not reach a clear consensus on which of these measures was expected to yield the greatest benefits, a qualitative assessment did show a common view of how to group the measures according to their importance, as shown below: Eco‐driving support Eco‐traffic management Eco‐information and guidance Eco‐demand and access management Eco‐mobility services Eco‐freight and logistics management Eco‐monitoring and modelling


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However, each measure is seen as yielding positive benefits so there is little justification to spend more effort to try a better ranking. The WG accepts the need to investigate the potential benefits of each group so that a well‐founded action plan can be formulated to promote their implementation. While the WG believes that Green ITS measures will deliver benefits, it is not possible today to form a reliable and quantitative estimate of these impacts, either singly or if implemented together. Therefore, more research is needed to understand the mechanisms by which impacts are generated and how the effects of integrated and interdependent systems can be assessed.

OVERALL RECOMMENDATIONS ‐MOBILITY This final section suggests a number of recommendations reflecting the views of members of the Working Group, directed at different actors:

General Recommendations

To ensure that the road transport sector contributes towards the European target of a reduction of total CO2 emissions by the year 2020, the WG recommends that a new pan‐European and multi‐sector initiative be established to promote the development and rapid deployment of Green ITS, along the lines of the eSafety initiative. As this should include a different grouping of key actors, it should probably be set up separately from the eSafety framework. This new partnership should include public authorities and agencies, automotive industry, passenger and freight transport operators, public and commercial road operators, road energy industry, service providers, ICT industry etc. The lead for this initiative should lie with the European Commission. To ensure a consistent policy approach, a link should be created between ITS benefits and existing and/or planned EU strategies, for example in the area of CO2 limits for cars. Given the high costs of some of the measures discussed in this paper, mandatory fitment across 100% of cars is unlikely to be possible or advisable for a number of measures. Therefore, intelligent incentive systems, e.g. credit systems, should be considered that would reward companies for the installation of systems whose CO2 benefit can be demonstrated.

Recommendations For Priority Green Its Measures

EcoDriving Support


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Research is needed into how the “golden rules of eco‐driving” might be automated within onboard and off‐board services; R&D should be embedded in the upcoming calls of FP7 but also promoted by national projects and industry initiatives; With growing demand automotive manufacturers should offer optional eco‐driving support functions such as fuel‐consumption display, gear‐shift indicator, cruise control, adaptive cruise control (ACC), stop‐start assistant, eco‐driving feedback display, reporting and analysis, on‐line coaching etc.; On‐line services should be promoted that support eco‐driving behaviour through comparison with the performance of a driver’s peers, through competitions and incentives, etc.; To create awareness and acceptance for eco‐driving measures multi‐media campaigns should be launched in a coordinated way.

EcoTraffic Management

Research and development is needed into a new generation of urban traffic control systems that can be optimised according to environmental criteria, such as least overall fuel consumption, or that minimise CO2 emissions or pollutants; City traffic authorities should be encouraged to deploy as widely and as quickly as possible today’s traffic management systems that minimise congestion, traffic incidents, stop‐start traffic and that promote smooth traffic flows and a balanced distribution of traffic throughout the network, that favour the most efficient modes of transport – all key factors for reducing environmental impact and energy use; Speed advice, management and enforcement measures should be extended widely across Europe where this is likely to yield benefits in lower fuel consumption and safety; Parking information, guidance and booking services should be extended in urban areas; A guidebook should be compiled featuring best practice on energy‐efficient traffic management strategies and measures, and distributed widely to urban traffic managers; Guidance is welcomed from the European Commission while execution should be under the responsibility of the national, regional and local public governments and traffic authorities; public – private partnership models should be explored.

EcoInformation And Guidance


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Historic data on air pollution and traffic congestion “hot‐spots” should be added to the map data used in navigation systems so that drivers can more easily avoid such problem areas or times of day; Digital maps should include additional attributes with an impact on fuel efficiency or emissions such as road gradient (slope), speed limits, truck‐specific restrictions, road charging/ controlled access zone data, accident risk etc.; In implementing the above recommendation, digital map providers should be supported by the public authorities who own much of these data, to minimise avoidable data collection cost and effort; Navigation system algorithms should include an option to calculate the route offering least‐fuel consumption; Real‐time traffic information (RTTI) service providers should offer enhanced road and traffic information including critical weather conditions; RTTI service providers should offer drivers information and recommendations for suitable multi‐modal alternatives, including Park + Ride location, availability and real‐time timetables; To improve the quality of traffic and travel information the possibilities of floating car/device data need to be researched and implemented through a joint stakeholder effort.

EcoMobility Services

There is a need for a multi‐sector working group at European level to develop innovative eco‐mobility service concepts; Research is needed into the factors influencing public acceptance of eco‐mobility services, to help design schemes that can prove attractive for car users and lead to a substantial shift towards more eco‐friendly modes; Explore potential of ride‐sharing, car‐sharing, multi‐modality concepts to yield environmental benefits and fuel savings; Exchange of best practices

EcoDemand And Access Management

Scheme technologies for demand and access management should be harmonised across Europe, around a core of European standards; There is a need for a multi‐sector working group (include public & private road operators and traffic authorities) at European level to develop innovative eco‐demand and access management concepts, within a framework that promotes investment in improved roads, collective transport and other measures to reduce congestion and offer high‐quality individual mobility;


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EcoFreight And Logistics Management

Research is needed into potential ICT solutions that could lead to fewer empty haul journeys and a higher load factor, such as an online auction, the use of Web 2.0 technologies etc.; Research is needed to develop concepts for a standards‐based open platform offering all sizes of commercial vehicle fleet operators a range of services likely to improve fuel economy and reduce environmental impacts; A multi‐sector forum is needed where the road haulage industry and public authorities and road operators can meet to agree a common European approach to city logistics.

EcoMonitoring And Modelling

The impact on the environment of measures taken need to be controlled in a systematic way and feedback given to improve the measurement For better decision making measurement, forecast and impact calculation models need to be developed and tested in real life environment

Recommendations To Stakeholders

In this section we gather some recommendations grouped according to the intended audience.

For The Esafety Forum

Implementation Roadmaps WG should add Green ITS measures to their deployment roadmaps, and should add environmental aspects to the business case for all eSafety priority measures Continue work and exploit results of this WG in an appropriate way, towards deployment of priority Green ITS measures (in eSafety Forum, or in a new body) RTD WG should propose research work items on the theme of Green ITS for the next round of R&D activities SOA WG should also consider “Green ITS” use cases and services International cooperation aspects of these themes should be included in the work of the International Cooperation Working Group, with the aim to adopt a coordinated framework of research and other common activities with the other global regions. Follow‐up of the results of the WG RTTI should include environmental aspects, such as providing air quality and pollution information services for travellers.


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For The European Commission

Develop different future scenarios on global and European emission and pollution output and assign probabilities. “Green ITS” measures (e.g. infrastructure‐based with impact on efficiency and environment) should be taken into account in policy initiatives such as the forthcoming ITS Roadmap and Action Plan, and the synergy with eSafety measures should be highlighted. Development of “green ITS” technologies and applications should be given higher priority in future R&D programmes such as the next FP7 calls for proposals and large scale field operational tests (FOTs). In particular, work is urgently needed on the reliable appraisal and quantification of potential environmental impact and benefits of eSafety technologies and applications; EC, in cooperation with the Committee of the regions and other stakeholders, could publish a best practice guide for municipalities on energy efficient traffic management solutions EC to evaluate and favour the use of incentives to encourage eco friendly driver behaviour and promote the so‐called “golden rules of eco‐driving” to initiate sustainable driver behaviour change EC and Member States to include eco‐driving within the scope of driver licensing and license examination EC should put additional focus on other fast growing transport areas like rail and air transport to increase their contribution to energy savings and ensure fair competition between the different transport modes ICT related environmental benefits should be adequately considered within the overall CO2 reduction target system

For Industry

Traffic management industry should develop products and promote standards for eco‐traffic management systems; Public transport and traffic management system suppliers should cooperate to offer integrated & compatible mobility systems Automotive industry should explore approaches to promote more eco‐friendly driving and driver behaviour as a complement to current efforts to improve fuel efficiency and reduce emissions through vehicle engineering Need for data exchange standard for transfer of engine parameters to (“engine map”) navigation system for eco‐navigation support


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Digital map makers to enhance database with attributes/features to support “eco‐navigation” Both traffic management and automotive industries should collaborate with each other in developing cooperative vehicle infrastructure systems for lower emissions and fuel consumption.

For Operators And Service Providers

Road operators (both public and private) should add environmental aspects to road management schemes & systems; Traffic and travel information providers should consider including broadcast messages and guidance to promote eco‐driving and eco‐ITS; Consumer organisations such as automobile clubs should offer their members advice on the benefits of and support for eco‐driving; Driver education and training organisations should increase their offer of courses in eco‐driving.

For National, Regional And Local Governments

Public authorities should promote advances in eco‐friendly technologies for mobility, the purchase of new environmentally friendlier cars and more efficient driver behaviour through targeted measures such as fiscal or other incentives, as well as the adoption of “clean mobility” objectives within transport, energy and environment policy; Governments should include eco‐driving within the scope of driver licensing and licence examination, and within the curriculum of required driver training; Transport aspects of energy efficiency should feature strongly in the work programme of EU Presidencies; National and local governments in Europe should cooperate and harmonise the approach to environment‐friendly mobility, in order to ensure interoperability, lower costs and greater impact. Carbon and fuel taxes are an effective measure for addressing CO2 emissions, especially when earmarked. Focus should be more on lower cost options like labelling for certain components, support for eco‐driving and improved freight logistics Public authorities/road operators should invest in latest intelligent infrastructure, e.g. VMS, traffic control, speed management MS should drive for deployment of such IC technologies and services where saving potential has already been proven including adequate monitoring & measurement systems; optimisation of traffic management & control and


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investing in intelligent infrastructure like VMS (variable message signs), urban traffic control centres and speed management; MS to promote a more energy‐efficient modal‐split as well as the use of dynamic in‐vehicle navigation systems; MS in cooperation with industry to develop and implement area traffic management strategies optimised for environmental criteria including mobile data collection, real‐time traffic and travel information, parking management and energy‐optimised dynamic traffic control

Others

Standardisation bodies should identify the need for European and global standards for certain ITS‐technologies, and promote a corresponding standardisation road‐map and action plan; Universities & research institutes should prioritise work on: environmental monitoring and modelling techniques – high resolution as input to new eco‐mobility services extended methods of impact assessment include health impacts as a dimension of eco‐ITS assessment expand EDUNET training programmes and curriculum to include eco‐ITS The impact of ITS on “Efficient and sustainable mobility” should be a major theme in future ITS events such as European and World Congresses; Lastly, the key stakeholder interests should establish a forum to link and focus the many activities in the domain of ICT for clean and efficient mobility, and set priorities for action. Make link to other relevant forums e.g. ERTRAC, etc.] Develop information material for ICT for Clean & Efficient Mobility (eSafety Support) Measures for shared access to traffic & environmental monitoring data – problem of access to diverse and incompatible sources


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ANNEXES TO ICT FOR CLEAN & EFFICIENT MOBILITY Terms of reference

ESAFETY WORKING GROUP ON ICT FOR CLEAN & EFFICIENT MOBILITY Co‐chair ACEA, ERTICO Aim: Identify and discuss the potential benefits ITS applications might have with regards to cleaner and more energy‐efficient mobility for people and goods. Background The environmental effects of steadily increasing demand for mobility of people and goods present challenges that need to be addressed in the interest of long‐term sustainability and public concern. ITS per se means that traffic systems are designed in an intelligent way to secure “sustainable mobility”, which stands for “the ability to meet the needs of society to move freely, gain access, communicate, trade and establish relations without sacrificing other essential human (traffic safety) or ecological (environment) values, today and in the future”. ICT is the technology behind ITS and clearly relates to “communication”. The application of ICT with regard to “cleaner and efficient mobility” generally means to improve communication and the flow of information between v2v, v2i, i2v and i2i in order to organize a smoother, more flexible traffic flow (people and goods) in a most cost efficient way. In this sense ITS applications could produce some positive environmental side effects, for example infrastructure measures that reduce vehicles’ time spent in heavy traffic by flexible traffic management systems (less consumption, less emission). However, there are practically no ITS systems and services that specifically address environmental objectives. The eSafety Forum has proposed to look into the environment as a potential area for future ITS development and deployment exploiting the architectures under development for safety applications. This new Working Group should take the first steps to mobilise the various sectors that need to cooperate to work towards identifying possible new solutions. Examples of the technical and non‐technical work areas include: • Environmental traffic management strategies & operations, e.g. traffic light

synchronisation, automatic traffic incident detection, congestion management, parking management, urban goods delivery management, etc.

• Integrated traffic/mobility systems Infrastructural measures reducing the negative impact of mobility;


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Cooperative vehicle‐infrastructure systems, e.g. optimisation of vehicle‐traffic management, in order to avoid congestion, which would have some additional environmental side benefits; On‐line environmental information services for drivers; Driver education and support for environment‐friendly driving behaviour; Systems and tools that support drivers in environmentally‐friendly driving; Objectives Discuss, which ICT applications and services for mobility have the strongest benefits with regards to addressing environmental issues Examine relevant measures that could complement and enhance environmental compatibility of mobility; Participants Around 15 – 20 people representing key stakeholders, users, public authorities, infrastructure and telecom operators, automotive industry, transport industry, integrated traffic management specialists, etc. ICT FOR CLEAN & EFFICIENT MOBILITY – CURRENT ACTIVITIES This Annex presents a summary of known projects, products and other activities in the domain of Green ITS, or “ICT for clean and efficient mobility”. These are presented separately for activities for mobility of people and for mobility of goods.

ICT for People ICT for Goods Education/instruction based systems

Eco‐Driving behavior instructions, simulation, training

iManage (GE fleet) includes the ability to look at drivers performance in terms of spend, maintenance costs and CO2 profiles

85,2% of accidents are caused by pure human error [source?]

Economical driving training for truck, bus and coach drivers

Internet/ Telecommunication/Sensor based systems

Online environmental information/ eco‐information for journey planning

Online environmental information (e.g. temperature, smog alarm)

Personalized information systems

ITSWAP (transport services via wireless applications)

AMBIESENSE (information system for mobile users)

ROLLING STOCK (internet monitoring of cargo for time of arrival)

DIAMOND (ITS application through

TROP (virtual enterprise for forwarders)


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Multimedia DAB) APNEE/APNEE‐TU

(Combine environmental data with travel information)

GIFT (Global freight information system)

MESSAGE (use busses and pedestrians to act as mobile sensors, collecting vital real time air quality data

MOSCA (DSS for door to door delivery)

PEPTRAN (Pedestrian + public transport navigator)

Ad‐hoc journey & load sharing management

Vehicle based systems

Driver information feedback systems

Driver information feedback systems

Vehicle crash prevention systems

Vehicle crash prevention systems

Navigation systems Navigation systems Energy efficiency of

safety related applications like ADAS/ACC systems

Energy efficiency of safety related applications like ADAS/ACC systems

Enhanced engine & drive train management/control and feedback

Enhanced engine & drive train management/control and feedback

Infrastructure based systems

5,1% of accidents are related to infrastructure issues

Adaptive network management & control using real data

Online quality control Inter‐modal support

(TRASCOM, TRANS‐3) Tracking and Tracing (PARCELCALL, MOCONT‐II

Synchronization of traffic lights

Route & Load optimization

Incident detection and management

Delivery optimization

Network supported route & parking guidance

Map related projects: NextMap, ACTMAP, MAPS&ADAS, FEEDMAP

Cooperative systems

CVIS project (www.cvisproject.org); SAFESPOT project (www.safespot COOPERS project


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6. IMPACT MATRIX (BASED ON RESEARCH RESULTS) Below are compiled a number of results of the impact of vehicle and/or infrastructure measures to reduce environmental impact. Note that some are expressed as a reduction of fuel consumption, others as reduction of emissions; these are of course closely associated.

Impact indicator Emission reduction

Eco‐Driving 20‐25% decrease after driver training and 10% less fuel consumption as sustainable training effect on driving behaviour

A 10% decrease in consumption would translate into 40 billion litres of fuel and 100 mega‐tones carbon dioxide (CO2) emissions

Gearshift Indicator (GSI)

GSI as driver assistance measure will reduce fuel consumption by some 3%

Related reducing effects on CO2 and other emissions

GERICO on‐board system design (driver to adopt best driving behaviour, smooth speed and good gear management by visual and vocal messages (optimization algorithm) leading to up to 15% consumption reduction (80 tests)

ECODRIVEN project (European‐wide eco‐driving campaign) with 500.000 car drivers to reach 0.5 Mton of CO2 emission reduction until 2010

Adaptive Cruise Control (ACC)

0.4‐3.6% in normal traffic (field data)

Simulation: 10% ACC vehicles 28%

Up to 60% less pollution in specific situations

Intelligent vehicles with ACC/LDW cut accidents by 8% (Dutch Field test) and saved 3% of fuel

Emissions decreased by up to 10% when driving with ACC and LDW (Dutch Field test)

Traffic Management

Up to 40% in traffic standstill and congestion

Smart NETS: new software + real‐time traffic data in urban traffic control centres: considerable energy savings Free flowing traffic along the motorways consume on average 60% less fuel than when travelling on the local

By penalizing left‐hand turns in route planning (trucks) the ROADNET software generates savings on fuel and emissions


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urban network (Greece)

Floating Vehicle Data for Traffic Management and incident data to vehicle systems

Congestion information from highways and interurban and urban roads

Traffic Light Synchronisation

Utopia (Italy) dynamic urban traffic control system increased intersection throughput for private traffic by 15%

Transport Demand Management Strategies (TDMS)

HEAVEN DSS (2003): Decision Support System to evaluate the environmental effect (air/noise quality) of TDMS. Driven by 6 European cities

CITEAIR (based on HEAVEN experience) 11‐18 European cities are developing efficient means to collect, present and compare air quality data across a multitude of sites and provide input to the air quality reporting and action planning.

Predictive cruise control

CC linked to intelligent map information + GNSS position + maps: up to 2% of fuel economy

Navigation systems

Linked to real‐time traffic information: reduced driving time and fuel consumption

Cooperative systems

PReVENT: equipment rate of only 20% of vehicles could avoid traffic jams on selected highway sections with subsequent energy savings

Bibliography and references


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The European Conference of Ministers of Transport (ECMT) report “Cutting Transport CO2 emissions: What Progress?”, which was co‐funded by the FIA Foundation, examines the level of CO2 emissions from the transport sector and reviews the effectiveness of CO2 abatement policies. URL: http://www.fiafoundation.com/policy/environment/index.html


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6 ‘Restructuring’ by the innovative use of ICT Final Report: Submitted September 25 2008


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SUMMARY

Restructuring describes a reduction of the material and energy intensity of economic processes (production, transport, consumption, waste disposal). (Hilty 2008) Whilst there are many constraints on restructuring. Their resolution can be facilitated by enhanced, innovative use of ICT. The present environmental overheads of economic activity are poorly understood, inconsistently measured and as such difficult to manage downward at all levels. There is a need for a clear understanding and policy position in relation to the balance between competitive open economic activities and the environmental cost of such competition. A clear, accessible, comprehensive and consistent strategic messaging and communication programme is critical. A focus on the opportunities rather than challenge is required. Addressing the reduction of the environmental impact of economic activity will require short medium and long term changes at all levels of the economy and society. Regions and cities have a key role the initiation, testing and deployment of ICT facilitated short, medium and long term initiatives. ICT is an enabler not a solution. Social change is also required. Cash not conscience will drive the initial stages of transformation. Few existing business models leverage existing ICT facilitated restructuring. Lack of standards reduce likelihood of business and individual change Social norms in relation to future consumption and responsible environmental actions can be influenced at an early age especially in schools using ICT tools. Existing social norms are can be influenced by immediate explicit rewards for beneficial change in personal behaviours. ICT can enable restructuring of work, work spaces and practices. Present business management techniques are geared to managing 19th century labour not 21st century minds. There is no comprehensive audit of existing ICT enablers that can support the initiation of short term reduction activities.


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INTRODUCTION ‐ RESTRUCTURING: A DEFINITION

Restructuring describes a reduction of the material and energy intensity of economic processes (production, transport, consumption, waste disposal). (Hilty 2008) ‐As such it includes the entire scope of economic activity, including agriculture, at all levels of society. It looks to arrive at a position where the environmental impact of economic activity is reduced to a level that is sustainable in the short to medium term and positive in the long term.

The European Union is being presented with an historical opportunity to fundamentally influence, drive and lead the global economic transformation required to address the challenges of climate change. Unlike past economic transformations, which were gradual and organic, the impending transformation is time definite and has to be target driven. This is due to the impending arrival of a point of uncontrolled environmental degradation due to the impact of human activity planet wide. No other entity in the world has the established economic power, emerging political will or social legitimacy to address the opportunities and challenges of climate change in a coordinated, consistent and comprehensive fashion. As such it has a moral responsibility to initiate and lead. Whilst the challenges are well known the opportunities and actions to achieve them are less evident and poorly explored. In the following report the restructuring group of the ICT for Energy Efficiency initiative examines the key challenges, opportunities, responsibilities and preferred outcomes achievable through the transformation of the processes and outcomes of production and consumption. In its simplest form the group looked at what was achievable through focusing the three main stakeholders (political, business and social) on the establishment of production and consumption frameworks that do more with less. Essentially this is the transition to and establishment of a transformed economic system that enhances present and future social well being, increases business efficiency and viability whilst reducing the lifecycle material, energy and environmental cost of goods and services. What emerged is a comprehensive view of what is possible, what is required and what is dependent on restructuring. Its implications are clear: There are real and rapid opportunities available for efficiency today that pre‐position Europe for enhanced, environmentally positive prosperity and renewed competitive advantage tomorrow.


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RESTRUCTURING EXAMPLES Restructuring can involve the reduction of energy intensity, material resource intensity or both. ICT plays a critical role in this due to its ability to be used to identify inefficiencies, plan more effectively or simply transition processes and products to an entirely digital form and facilitate their use. Emerging examples of Physical to Digital are of this are :

The music / video /software industries:

Moving from Disc to digital provision

The travel Industry: Move to online bookings and reservation

Business travel: Move to video conferencing

Publishing: Move to print on demand / E‐Books

Business and administration:

Replacement of paper with online billing

Banking Online banking and ATMs

Advertising: Hardcopy to digital marketing

Examples of ICT enabled material intensity reductions are also being identified. These are generally of influence over the lifecycle of products and involve:

• Software upgrades instead of hardware upgrades

• Opening new services without the need for new equipment

• Product convergence (More services from a single material item)

• Online support (reduces material and energy input to a Lifecycle process)

• Miniaturisation (new ICT technologies allowing material reductions (Ram Sticks V hard disks)

• Computerisation of design processes (Better design / Less materials in products)

• Managed disposal and repurposing (reduced the net materials required in the economy)

Such examples indicate the opportunities being revealed by considering restructuring. The pervasiveness of ICT makes it a key facilitator of that process and realising the opportunities.


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However, whilst these examples illustrate what is possible, they have also thrown up challenges to the traditional mechanisms, methods and management of business. The lessons of experience to date need to be carefully factored into the planning and implementation of deeper restructuring initiatives.

Company Examples

The following two examples will illustrate the impact of using ICT in managing the identification and realisation of energy efficiencies.

Irish food producer Jacob Fruitfield set up an Energy Monitoring System to tackle deficiencies identified in an energy audit. The system has helped reduce gas consumption by 9%, provided better understanding of consumption patterns, and has instilled greater energy awareness among staff. Energy Focus System to measure and monitor energy consumption Broad network of meters and sub‐meters for gas, electricity and water show specific consumption on the manufacturing site The readings from the metering system are transferred to computer application where the data is transformed into a useful form Evaluation and processing of the data leads to activities to reduce energy consumption Changed practices after monitoring reduced gas consumption by 9% p.a. Better understanding of energy consumption patterns Acquisition of more energy‐efficient equipment Continuous education of the staff to increase energy awareness Prospects are focusing on further energy consuming

Coop, Switzerland’s second‐largest retailer set up an Energy Management System in an attempt to reduce electricity consumption, and to meet its commitments under national climate policy. The system combines data collection from its 1500 stores with a comprehensive building management system, which makes sure that target values for temperature and consumption of fuel and water are met. It also oversees the recovery of energy from the cooling system, which has reduced heat energy demand by 60%.


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Electricity spending alone approx. 50/m2 or 38 million per annum for all 950 stores Tet / MESA Energy Management System (developed in close collaboration with specialized engineering company) EMS consists of a variety of ICT‐supported organisational and equipment changes

o Standardisation of buildings o Time‐of‐use management system (lighting, temperature) o Data monitoring, use of waste heat etc.

Integrated building management system Co‐developed by Coop and B+B Engineering, meanwhile offered commercially in 3rd generation Black boxes helping to collect all relevant data Set target values for room temperature and for consumption of electricity, fossil fuel, and water Electronic alarm system if actual and set values diverge (remote diagnostics) Heat energy demand (room heating, baking ovens) reduced by 60% due to energy recovery from the cooling system Specific heat consumption of new retail outlets is 50% lower than average consumption level of all supermarkets New supermarkets with data collection system have an annual specific heat consumption of less than 40 kWh/m2

E-Government Examples

The use of ICT in reducing the service overheads borne by government can be seen in the World Bank (2008) illustration below. In 2007 over 30% of OECD citizens use e‐Govt services In 2007 47% of EU 15 enterprises submitted completed forms via e‐govt services (Greece and Finland had over 70%) In 2006 over 50% of Czech medical practitioners accessed health information online Survey of opinions

FORRESTER 2006: (US AND CANADIAN CONSUMERS) 53% of people believe e‐govt makes services more

convenient 52% believe it makes service more impersonal

49% believe it increases the level of communication with Govt

42% believes it improves service efficiency 41% believe it increases the level of interaction


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39% say it will decrease cost of services 35% say it increases govt accountability

Selected ICT Applications Creating Value for Citizens

Country Service provided

Time to complete

Time to complete online

Chile Paying taxes 25 days 12 hours

Andhra Pradesh,

Registering land

7–15 days 5 minutes

Karnataka, India

Updating land 1–2 years 30 days for approval

Singapore Issuing tax 12–18 months 3–5 months Assessments

Post offices: Internet services are offered by 60% of global post offices. ( 56% of developing countries, 86% of industrialized).


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Major services offered Track and trace (offered by at least 49% of countries) Information on tariffs (41%) Postcode lookup(32%) Sale of philatelic products(31%) E‐mail service (30%)

Business Model examples These examples illustrate the impact of ICT on the business models of companies. As can be seen not all of them are positive. Books: Amazon launched its Kindle e‐book reader in 2007. Sales are at the same pace as for the IPod year one release of 360,000. Amazon revenue from e‐books in 2006: 0%. Amazon revenue from e‐books in 2007 12%. Projected revenues 2009 :€487 million. Music: In 2007 Physical sales of CDs and DVDs fell 13 percent to $15.9 billion. Sales of downloaded songs and mobile‐phone ringtones rose 34 percent to $2.9 billion. John Kennedy, chairman of the IFPI, “30 billion illegal downloads in 2007“, while “physical and digital piracy cost the U.S. music industry alone $5.3 billion“. Education: Online distance learning has increased 12% in the US since petrol reached over $4 a gallon.

Indicative prices: 2008 Customer service call for tracking information to courier company €2.50 Same information provided online €0.001

Telecommuting

The most current and comprehensive research found relating to trends in ICT enabled telecommuting (e‐Work, Distance Working) is from the United States. This provided some interesting attitude, work practice and commute / travel habit data. The uptake of wireless is especially interesting in relation to considerations given to the linking of various sensors and meters in the home.

General Figures (Various Sources)

• A 40 minute commute equates to 8 working weeks per year • Office space for the average worker costs $10,000 per year • The manager/staff ratio in a virtual organization is 1:40. It's 1:4 in a traditional office • The average commute of a teleworker when not teleworking is 18 miles • Teleworkers save an average 53 minutes of commuting each day they don't drive to

work • Teleworkers drive 9.3 miles to run errands on days they telework • Commuters, when adding errands to their commute, drive 7.9 additional miles • Teleworker ages: 17%, 18‐29 Yrs; 60%, 30‐49 Yrs; 22%, 50‐64 Yrs • Likelihood to use wireless: 88% higher than a non teleworker


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• Home teleworker have 1 PC for work and 1 PC for non‐work purposes • Non‐teleworkers who have 0.8 PCs for work and 0.5 PCs for non‐work • Teleworkers work 39% from a spare bedroom, followed by 10.5% from the dining room • 33% of Canadians would prefer to telework over a 10% wage increase • 43% of Canadians would change jobs to an employer allowing teleworki

Issues With Teleworking

While a large majority of executives believe telecommuters are equally or more productive than their peers who work in offices, many of those same business leaders believe telecommuters are less likely to advance in their careers. The survey found that 61 percent of executives downgraded telecommuters' advancement chances compared with those of employees who work in traditional office settings. Despite their negative outlook, 78 percent of executives still regarded telecommuters as productive employees, according to the survey from Futurestep, a subsidiary of Korn/Ferry International.

Business Impact Of Teleworking

Dow Chemical

Administrative costs have dropped 50% annually (15% in real estate costs.) Productivity increased by 32.5% (10% through decreased absenteeism, 16% by working at home and 6.5% by avoiding the commute.) JD Edwards Teleworkers are from 20 to 25% more productive than their office workers

RESTRUCTURING: KEY DESIRED OUTCOMES

Restructuring can be considerably assisted or facilitated by ICT (Heiskanen et al., 2001; Hilty and Ruddy, 2002, Bohn et al., 2002;).

Desired Outcomes


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Ideally such ICT facilitated restructuring would lead to:

Optimization of processes and products with respect to material and energy efficiency A ubiquitous, standard, communications backbone for ICT interconnectivity Faster dissemination on knowledge, expertise and interaction on viable approaches Long term competitive advantage at a supra national, national and business level Enhanced Regional and city provision of lower overhead services to citizens Infrastructure and building energy efficiency and resource management Lifecycle management of physical and virtual products, services and facilities Innovative new business models, products and services Reorientation of consumption and demand trends and types Organization of innovative ICT facilitated services Increased contribution of information services to the net product value Avoidance of transport by telecommunication Sale of the use of material / service goods rather than products /services themselves Better work life balance

For these to be politically, economically and socially realized and viable, a number of non‐technical requirements must be met. These include, for example, organization of technology in accordance with human requirements (Technology working for people rather than people working for technology) and overall consistent policy control of developments across the political, economic and social landscape.

Restructuring: Transition

To arrive at a position where such outcomes are an organic integrated part of the social, economic and political fabric of the EU will require a carefully managed transition process. Such a process cannot be precisely time lined but is highly likely to be target driven, slow to start and accelerate as experience and benefits are gained. The ability to change and the disruption of change will be different in every socio‐economic sector. Three key areas of change will be required in order for the transition process to lead to the desired outcomes: Business, Social and Political.

Business


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Business will be challenged to respond to two major transition drivers: policy and consumers. Policy will drive business transition through regulations, procurement processes, support of business initiatives and partnerships. To maintain commercial viability business must be enabled to balance the returns from present activity / investments, the impact and returns of transition investments and its ability to strategic positioning for future operation and returns. Businesses therefore will be critical to managing the expression of policy and the maintenance of the volume and velocity of business whilst reducing the material and energy intensity of economic processes that service consumer demand. Business, in parallel to this, will play a key role in the sensitization of their staff, customers and stakeholders to the necessities of transition and change. They are a key partner in the process of implanting and internalizing the need for change at all levels of the economy and society. Any business focused transition process will require the following characteristics:

It is consultative in its creation and ongoing management It is future scoped to protect prior investments and support future investments It has clear, consistent metrics and standards across the EU It values, recognises and supports first movers It is non disruptive where possible

Social

The success or failure of any transition process will depend on the action and reaction of individuals. The restructuring group had a difference of opinion as to whether the key focus of social change initiatives should be at the aggregated level of society or that of the individual and their responsibility for personal consumption and its management. Neither approach precludes the other. It is likely that the emphasis of policy and mechanisms of transition will change over time depending on progress made to the targets set for achievement. The group also discussed the impact of technology on society and the individual. The Internet and its rapid penetration into the fabric of personal and social life is a clear indication that individuals can, and often do, get ahead of business and policy on the adoption curve. Because of the sheer scale of the challenge and uncertainties that exist as to the implications of actions (eg: Bio fuels and food supply ) the education and “management” on social change (at an individual and aggregate society level) will be of critical


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importance. Adoption of new but damaging consumer level practices and behaviours can radically impact the ability of business and policy to affect change and meet targets. It is here that regions and cities have a major role as they are core to the provision or facilitation of key, high impact services to consumers such as energy, transport, health, education, social facilities and support. Both are also ideally placed to deal with the cultural differences that exist between and within social groups and best placed to tailor initiatives, support and management to the socio‐economic and cultural micro environments in their remit. They provide key multiplier opportunities where large scale impact can be had through coordinated and consistent actions that focus on both the societal and individual levels. Any socially focused transition process will require the following characteristics:

Clearly identifies, quantifies and projects the issues and opportunities Is consistent, comprehensive, future scoped and credible Provides activity level measurements for consumption behaviours Provides immediacy of benefit to individuals or households Protects individuals from misrepresentation and exploitation Influences at key change and consumption points in an individual or household lifecycle Is ICT enabled to offload management overhead from individuals Is seen to be led by business, region, city and state actions

Political

The political leg of the transition triumvirate will be most challenged and most influential in establishing the landscape and the will to begin, maintain and achieve transition. It is the one constituency that has the mandate and legitimacy to establish, influence and, if necessary, impose the leadership and actions required to establish, manage and enforce the changes necessary. Key to exercising the mandate and legitimacy of their position will be leadership in vision, thought and action. Lack of these will undermine or negate willingness and consistency of action by both business and individuals. The establishment of leadership, policy and action positions that are practical for business, popular to individuals and politic across the political spectrum will require consultation, consensus, consistency and confidence. Just how this will be achieved the group did not address. It did however see it as problematic and worthy of further attention.


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RESTRUCTURING: KEY ENABLERS The restructuring group identified that addressing the ubiquitous issues related to environmental change would require a multi dimensional and dynamically changing approach. However in its deliberations a single equation summed up its approach to enablers:

Society + Systems = Solution

Whilst simple, it captures the groups conviction that technology alone cannot solve the issue of climate change without the input, influence and interaction of society to drive the exploitation of the opportunities presented by such technologies at a business and individual level. The transition phase will be core to identifying and making available the key enablers of restructuring to business and individuals. These will change over time and can broadly be divided into short medium and long term.

Short term enablers

Experience to date with computerisation, the Internet and wireless technologies clearly points to the enormous opportunities for dematerialisation of many existing products and also the provision of services via non physical means. Short term enablers can basically be classified as relatively low impact actions or positions, enabled by the availability of existing ICT , that initiate, educate and integrate what is possible and practical in a relatively short time frame. Whilst these may seem minor and relatively low impact they are CRITICAL to initiating, illustrating and educating business, individuals and political levels as to what is possible through the use of ICT as a means of reducing the energy and material intensity of their processes. They also begin the process of sensitization, education and attitudinal change that will be critical to rapid adoption of medium and long term advanced ICT capabilities, efficient products and digital services. A key characteristic of short term enablers is that they generally require little or no deployment of physical infrastructure, employ existing ICT technologies (perhaps with online software upgrades) and are not disruptive to business models or consumption pattern. Examples of these are:


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Availability of cost accessible ICT ,high capacity fixed and wireless data links Availability of online business services and e‐Government services. Greater visibility on existing ICT enabled restructuring technologies ICT enabled monthly billing of actual utility consumption ICT enabled business and individual level 360° carbon measurement tools Machine readable carbon labelling, capture and reporting at point of sale ICT facilitated disposal of goods and materials Clear projection of a consistent strategy, actions, implications and rewards Greater ICT and restructuring skills during education Initiation of coordinated , multi city level restructuring action plans

Medium term enablers

Whilst short term enablers rely on the broad availability and use of existing capabilities, processes and ICT, medium term enablers require the additional input of innovation at a policy, business, social and ICT levels. The majority of these medium term enablers will require significant (in overall terms) creation, diffusion and integration of new technology innovations, service transition, product capabilities and behaviours at all levels of politics, business and society. Upgrade cycles to medium term enablers also absolutely require the availability of ICT enabled recycling, repurposing or disposal services and management of existing technologies and infrastructure. A further characteristic of medium term enablers is that they may, in cities and regions, be the precursors of the mega infrastructure, long term enablers of high impact reduction technologies such as energy and communication grids, efficient water and liquid disposal systems, road and building design technologies and replacement strategies. Regions and cities adopting first generation mega infrastructure technologies will be highly attractive, both socially and economically as their cost of living and production positions are competitively advantaged. A key characteristic medium term enablers is that they will require managed but quite radical changes in the technologies, policies, business models and consumption behaviours at a political, business and social level. Examples of these are:


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Clear aligned competition and environment policies Taxes and incentives to initiate and motivate behavioural changes Clear definitions and accounting responsibilities for all stages of a product lifecycle Enhanced standards for buildings, infrastructure, products and processes Extensive trials of mega infrastructure developments at region and city levels Repositioning of digitally capable services and products to be purely digital Repositioning of work practices and management / business models Lower or eliminated cost of change for utilities and services Implementation of mobile and micropayment capabilities for micro service use Personal IP recognition and protection to release talent, innovation and life long earning

Long term enablers

Long term is defined, not by a time line, but rather by the success or failure of short and medium term enablers to achieve or surpass levels of reduction required to mitigate or halt climate change. This implies that where such short and medium term reductions, as result from the use of initial measures fall short, nations will have to initiate mega infrastructure programs earlier to achieve their targets. This has huge implications at an economic, technology maturity, business and social level in terms of the cost, financing and disruption of a fast tracked change to such infrastructures. As such it also argues for an aggressive approach to short and medium term enablers and a staged sensitization as to the creation and implementation and implications of long term enablers. The key characteristic and aim of mega infrastructure upgrades or replacement is the maximization of efficient sourcing, generation, supply and disposal / recycling of basic utilities and enablers of a nation. These will include electricity, liquid and solid fuels, water, waste disposal, transport infrastructure, defense, buildings, health and communications related to emergencies. Key common themes across all these infrastructures is the very long lead time between initiation and completion of change, difficulty in initiating such change, the enormous cost of the required change and the severe disruption of doing it badly or inadequately. Because of their nature mega infrastructures do not test well in small scale trials and this argues for testing to be carried out at a city or regional level where broad, nationally applicable lessons can be learnt.


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A key characteristic long term enablers is that they will require radical changes in the technologies, policies, business models and procurement behaviours at a political, business and social level. Examples of these are:

Establishment of innovative long term private / public partnerships Clear policies on returns for the intensive investments required for success Open transparent competition, operation and reporting Initiate, announce and support initiatives early to position for early impact Early establishment of priorities and strategies for mega infrastructures Focus on nationally appropriate, lowest lifecycle cost, power sources Renovation or replacement of housing stock to new high yield standards High bandwidth communications network in support of ICT enabled products Behavioural change Consumer/individuals education‐awareness raising Introduction of personal carbon trading and phase out free carbon credits Guaranteed product lifecycles (service not physical upgrades)

RESTRUCTURING: KEY CONSTRAINTS The definition of restructuring as being “A reduction of the material and energy intensity of economic processes (production, transport, consumption, waste disposal” contains some key indications as to the major constraints that are being faced in realizing restructuring. These are: Scale The challenges are so big they are easier to ignore, delay or

deny at all levels Leadership vacuum The ubiquity of the challenge has led to a leadership vacuum. No first

mover advantage is yet seen in the political, business or social domains.

Length of effort The time scales do not fit into existing business, political or personal strategic timeframes.

No perceived Strategy

There is a lack of clear meaningful, tailored, consistent and focused statement of the strategy and its implications

Poor Positioning The challenges are pitched as a crisis rather than an opportunity. As such it frightens rather than motivates

Key Metrics Restructuring requires a 360° view, understanding and management of any product, process or service in order to arrive at its true


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material and energy overhead. True costs The true overall cost of the material and energy overhead of products

and services is presently invisible Static Business Models

Many business models are highly static and slow to change.

Cost insulation Consumers do not know or bear the true lifecycle costs of their consumption.

Slow evolution of social Norms

Changes in personal behaviour and social norms is slow and hard to drive or orientate when purely voluntary.

RESTRUCTURING: EMERGING PROPOSALS Two proposed initiatives have emerged from the Restructuring group. The focus on:

A. The dynamic measurement of footprint in support of restructuring using ICT tools

B. The establishment of coordinated and multi city action plans for footprint reduction supported by ICT tools.

These two initiatives have clear interconnections and mutually benefit from being actioned:

They are both ICT dependent The Cities proposal relies on clear measurement of the baseline position today The measurement proposal relies on large scale access to cities and businesses Both require an ongoing dynamic data set to measure progress to targets They test areas and techniques that will have to be tested eventually They are fast to market using existing ICT technologies They are low cost / low disruption They are scalable and reusable within existing ICT technology boundaries They are presently practical and future scoped They create key skills, knowledge sets and experience at all participatory levels


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Whilst both are presently in the creation and discussion phases they have gained support within the Ad Hoc group as they address questions and issues that are common across all the groups These are:

The lack of clear data and measurement The lack of scale of existing data and experience The lack of standard data, measurement and consistency across participants The lack of dynamic data to measure progress to target The inability to quickly identify failure or success from present data collection means

As such they will service a broader agenda than just that of restructuring because they will identify immediate tactical efficiencies and reduction strategies, measure the outcome of these and explicitly support advanced businesses and cities in their efficiency and restructuring activities

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