Smart Cities and the Energy Cloud - Impacts on Sustainability and Resiliency of the Energy...

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED1

APRIL 7, 2015

IMPACTS ON SUSTAINABILITY

AND RESILIENCY OF THE

ENERGY INFRASTRUCTURE

SMART CITIES AND

THE ENERGY CLOUD

JAN VRINS

LEADER GLOBAL ENERGY PRACTICE

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2 / ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED2

THE URBAN CENTURY

Percentage of Population in

Urban Areas: 1950-2050

(Source: Navigant Research)

is a defining characteristic of the 21st century

GLOBAL

URBANIZATION

of the global population will live in urban areas by 2050

TWO-THIRDS

the urban population compared to 3.9 billion in 2013

6.3 BILLION

IN 2050

of the world’s energy use by cities, occupying 2% of global land

70%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1950 1960 1970 1980 1990 2000 2010 2020 2030 2040 2050

(% U

rban

)

World

More Developed Regions

Less Developed Regions


EVOLUTION OF THE SMART CITY

• A smart city is characterized as the integration of technology into a strategic

approach to sustainability, citizen well-being, and economic development


THE ENERGY CLOUD

• Large, centrally located generation facilities

• Designed for one-way energy flow

• Utility controlled

• Technologically inflexible

• Simple market structures and transactions

• Highly regulated (rate base) and pass

through

• Distributed energy resources

• Multiple inputs and users, supporting two-way energy flows

• Digitalization of the electric-mechanical infrastructure: smart grid and

behind the meter energy management systems

• Flexible, dynamic, and resilient

• Complex market structures and transactions

• Regulation changing rapidly around renewables, distributed generation

(solar, microgrid, storage), net metering etc.


THE ENERGY CLOUD: SUSTAINABLE, BUT ALSO MORE

RESILIENT AND MORE EXPENSIVE TO MANAGE?

• The Energy Cloud architecture is vastly different from the traditional hub-and-spoke

architecture model, specifically in its sophisticated operating characteristics and

capabilities, which could improve reliability and resilience, but increase cost to

manage…

(Source: Navigant Consulting)

DISTRIBUTED GENERATION (DG)

Includes the generation of electricity from many small energy sources, including renewables; typically mass-produced, small, and less site-specific

CONFIGURATIONS

Applications or groupings of distributed energy resources (DER), like microgrids and virtual power plants (VPPs) that operate either connected to a traditional centralized grid or remotely

ENERGY STORAGE

Devices or physical media that store energy to perform useful operation at a later time; balance the supply and demand of energy; improve power quality

OTHER TECHNOLOGIES:

• Smart inverters

• Smart meters

• Advanced SCADA

• Demand response (DR)

• Building energy management systems


RESILIENT CITIES:

UNDERSTANDING THE THREAT AND THE IMPACTS

• Approximately 360 million urban residents live in coastal areas less than 10m above

sea level

• Megacities are vulnerable to rising sea levels

• Number of residents in New York City at flood risk has almost doubled between

1983 and 2012 (~400,000); similar for buildings (~70,000 in 2012)

• Cost of Hurricane Sandy estimated at $50 billion ($19 billion for New York)

• The Energy Cloud—pros and cons:

• Vulnerabilities, resilience, and adaptability need to be understood in this new world

• Flood and storm protection, grid security, water management, public safety

systems, transport management, and emergency service integration all have a role

to play

Pros Cons

Built-in redundancy Complexity and increased points of failure

Smarter: High visibility and control Digitalized, open security threats

Customer choice and reduction of dependency Complexity of managing demand and supply


IN CLOSING

• The Energy Cloud is here to stay and smart cities (driven by urbanization)

will evolve and adapt

• Resilience of the infrastructure and convenience to the citizens (customer

choice) are increasingly important as part of this growing relationship

• Underlying infrastructure is changing rapidly (replacement or new build),

and key technologies can provide resiliency

• Macro objectives can contradict:

- Reliability versus resiliency

- Resiliency versus cost

- Etc.

• Several entities (public, private) will come together to align strategy and

implementation: macro planning for smart city infrastructure is needed,

energy, water, waste, transportation, building, infrastructure etc.

/ ©2016 NAVIGANT CONSULTING, INC. ALL RIGHTS RESERVED8

CONTACTS

JAN VRINSGlobal Energy Practice Leader

Navigant Consulting, Inc.

305.341.7839 office

[email protected]

@Jan_Vrins

Navigant Energy Practice:

http://www.navigant.com/industries/energy

Navigant Research:

http://www.navigantresearch.com/research

The Energy Cloud White Paper:

http://www.navigantresearch.com/research/

the-energy-cloud

Smart Cities and The Energy Cloud

White Paper:

http://www.navigantresearch.com/research/

smart-cities-and-the-energy-cloud

http://www.navigant.com/industries/energy

http://www.navigantresearch.com/research

http://www.navigantresearch.com/research/the-energy-cloud

http://www.navigantresearch.com/research/smart-cities-and-the-energy-cloud

Smart Cities and the Energy Cloud - Impacts on Sustainability and Resiliency of the Energy...

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