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SMART Seminar: Governance of Integrated Infrastructure
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SMART Seminar: Governance of Integrated Infrastructure

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The history of infrastructure design, development and operation in most countries has been that it has occurred in silos. Yet the citizen’s experience of infrastructure is integrated. Realisation......

The history of infrastructure design, development and operation in most countries has been that it has occurred in silos. Yet the citizen’s experience of infrastructure is integrated. Realisation that the governance of this integrated experience is badly out of alignment with the needs of developed and developing countries and cities has now caused consideration of how to move to a better set of arrangements.

A SMART Seminar presented by Prof Brian Collins on 13 May 2013. For more information, visit http://goo.gl/MfJ8t

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  • 1. Integration GovernanceProfessor Brian CollinsProfessor of Engineering Policy, UCL
  • 2. Governance• Governance is the act of governing. It relates todecisions that define expectations, grant power, orverify performance. It consists of either a separateprocess or part ofmanagement or leadership processes.• These processes and systems are typically administeredby a government.• A reasonable or rational purpose of governance mightaim to assure, (sometimes on behalf of others) that anorganization produces a worthwhile pattern of goodresults while avoiding an undesirable pattern of badcircumstances.Source - wikepedia
  • 3. Integration• The act of combining or adding parts to make aunified whole• The ambition of strengthening networks ofpolicies by building strong alliances among keystakeholders• The activity of contributing policyrecommendations that incorporate stakeholderperspectives on– the integration of policies– more effective collaboration and cooperation
  • 4. A challenge to the status quo• Complex packages of policies are avoided becauseimpact is more difficult to assess as is attributionof successful governance.• Multi factoral evaluation of benefits are difficultso too many stakeholders are to be avoided• Financial models for different infrastructuresectors are different, so the risk of integration ishard to evaluate.• The overhead of collaboration is not seen to addvalue because single stakeholder benefitassessments are used
  • 5. Incident in East BarnetMany residents in north London who had their gas cut off have also lost theirelectricity after heaters they were given overloaded supplies.About 750 homes in East Barnet are still without gas, three days after it was cut off.And EDF energy said about 180 customers have been without electricity since 2030 GMT onTuesday.A spokeswoman for the National Grid said water from a burst main got into the gas pipes,cutting off the flow.More than 3,000 cooking and heating appliances have been distributed to the affectedhouseholds.And about 150 gas engineers from across the country have gone to Barnet to attempt to getthe homes reconnected by Christmas Day.They have already restored supplies to 980 properties.An EDF Energy spokeswoman said: "Following damage to National Grids gas mains anumber of electric fires have been distributed to residents inEast Barnet who were left without heating."The significantly higher demand on the local electricity network has damaged some of EDFEnergys equipment and interrupted power supplies."EDF is asking customers to use only essential electricity appliances and switch off any non-essential appliances as National Grid carries out its repairs.It has also "reconfigured the electricity network to make it more robust to help with theextra demand placed on it by the significant increase in the use of electric heaters".http://news.bbc.co.uk/1/hi/england/london/8431654.stm
  • 6. Top down versus bottom up• Top down governance– UK has never had a top down national plan for all ofinfrastructure– Partial plans for Rail, Motorways, Electricity Grid, Gas, all priorto privatisation– No regulatory requirement for master plan or coordination postprivatisation• Bottom up– NIP is a bottom up plan driven by a pipeline of disconnectedprojects– Work is in hand to look at interdependence of projects– This will highlight risks, opportunities and gaps.– It will not deliver a national strategy or purpose
  • 7. 1943 - Abercrombie
  • 8. IT03 - UK INFRASTRUCTURE TIMELINES2010 - 2020 2021 - 2030 2031 - 2040 2041 - 20502012TransportRoadMajor SchemesDevolve funding for major local transport schemes to new local transport bodies (LTBs)HighwaysPrivatisation of highways Tolling of new roadsMaintenanceHighway Maintenance Efficiency Program Hand-off to Local GovtHigher Temp Road SurfacesIncreasedtemperature resilient paving specified in 2008Autonomous vehiclesProgressive introductionof autonomous road vehicles (freight) Autonomous passenger vehiclesRain resilience/drainage20% increase in drainage capacity specified in 2006 (60yr life)EV InfrastructurePlugged in Places Home and Workplace charging Public Charging through Regulated Asset BaseRailWestCoast MainlineWestCoast Mainline southern sections capacity reached without HS2ThameslinkPhase 1 Phase 2Crossrail£14.5 billion funding envelope (excluding rollingstock)HS2London - BirminghamManchester and LeedsNetwork Rail Control Period 4£9.6billion for stations, electrification and freight Control Period 5 - £7.2bn of investmentAirRunway capacityDavies Review Sustainable Aviation capacity policy London Airport capacity exceeded without sustainable avn policyMaritimePortinfrastructureLondon Gateway announced UK Port Capacity adequate - interactions with other modes taken into account in planningWasteLandfillLandfill requirements reduce through currentlegislation (landfill Tax) and increased recycling/reuseRecyclingEV BatteriesFirstEV batteries coming to EoL - no recycling/reuse schemes plannedMSW & C&IExpansion of composting up to 60% recycling of MSW & C&I Some waste infrastructuredecommissioned Emphasis now on reuse and recovery of material (Stranded Assets?)ResourcesResource Security Action PlanWastePlan for EnglandDisposalEnergy from WasteAnaerobic digestion for food waste and incineration with energy recovery for residual waste Decentralised EfW + CHP & small scale gasification and pyrolysis Gasificationand pyrolysis providing sometransport fuelGeological Disp NucPlanning Boreholes, Surface investigation Select Site Start of Construction FirstWaste emplacedEnergyEMRCapacityMechanismCarbon Floor Price Feed InTariff For Difference RO Closed to new generationElectricityEV InfrastructurePublic EV infrastructure Home and Workplace charging (assuming non-hybrid remains policy and subject to grid reinforcement/smart grid)Smart MetersFoundation trials DCC established and Mass Roll-out Smart meter data available to support smart gridsSmart GridLocal Trials (Low Carbon Network Fund) Basic active network mgt across sample areas Advanced active network management across network (Smart Grid 1.0) Extreme network stress. Smart Grid 2.0 including self healing, islanding etc.GridReinfConsistency with National Grid Gone Green Plan Further heavy reinforcement to 400kV network, especially if EVs and electric heating widespreadDist ReinfMainly asset replacement and LCNF trials Potential major network reinforcement at all voltages, depending on EV electric heating and smart grid progressGasConstruction of gas fired stationsOff-shoreGridand InterconnectionOFTO Deployment Offshorenetwork for UK Emerging EU SupergridNuclearFOAK construction (3rdgeneration design) Fleet Delivery (3rd generation) Fusion demonstration plantStorageLikely to become important on GW scale/24 hour scale (Technical breakthroughs required? Likely to become important on 10s of GW, more than 24 hours? Integration of heat, hot water, and other non-electrical as well as one systemCCSNeed demonstrator built GW Scale deployment on both gas and coal generation + CO2 pipelines Emphasis for CCS moves from coal and gas to biomass and MSWLarge Scale Renewables:OffshoreWindCost reduction requires infrastructureand volume orders Massive scale deploymentTidal barragesPossible Severn Barrage only if mass EV take up and many other factors satisfiedBiomassDeployment to limit of sustainable resource availability Commercialisationof new mass biomass feedstocks ,algae etc?OffshoreMarineResearch, Development and Deployment Possible GW scaledeployment?MicrogenerationMicrogeneration (Solar)Gridparity for solar PV Everyday use of solar PV on a wide range of surfacesDistribution networks under active management to accept reverse flowsHeat/Built Environment/Energy End UseInsulation and Building Performance – existing buildingsWhole house retrofitfor energy efficiency commercial demonstrations and trials Refurbish entire building stock to high fabric efficiency and air-tightness standardsInsulation and Building Performance – new buildingsBRREAM Excellent as minimum standard for all new non-domestic buildings Very high efficiency standards for all new buildingsHeating and Community EnergyDemonstrations and large scale trials of CHP, trigen and heat pumps and community/district energy schemesLarge scale deployment of CHP, trigen and heat pumps at various scales, fully integrated within community/district energy schemesGasReview and decision on futurerole of gas networksElectricity ApplicationsContinuous improvements mandated in energy efficiency of industrial drives, industrial controls, and white/brown goods Smart whitegoods mandatedLightingFull moveto LED lightingFuelsPetroleum refiningRefinery Reconfiguration or DecommissioningGasIncreasebulk storageBiofuels manufacture and distDemo Commercial Scale Biomass to Liquids Commercial-scaledeployment of Biomass toLiquids cellulosic-ethanol and bio-SGHydrogenPossible evolution of hydrogen feedstock as use for spilled (i.e. surplus) wind energyShale GasTax breaks for extractionWaterWater Bill Introduced Competition for business customersEnvironmentalWater Framework DirectiveCarry out plans Review Meet Directive/Second Phase of WFD (1st Management Cycle) 2nd Management CycleNatural Ecosyetms White PaperFloodingSeparation of runoff and wasteSUDS retrofitand new developmentResilience/Protection80 new flood defenceprojects plannedWater useWater Companies 25 year Water Resources Management Plan. Increased interlinking of networks expected.Drought Management Plans (revised every 3 years)RegulationPR14 separate pricecontrols for retail and wholesale servicesLocal TreatmentLocal treatment technologies possibly alleviate lack of access toabstractionAbstractionRestoring Sustainable Abstraction policy to be published addressing unsustainable abstraction up to 2027ICTBroadbandRural BroadbandCreating the best broadband in Europe by 2015Adequate BB to allAdequate broadband access and capacity by all that require it (Estimate)Fibre to CabinetBT reach 2/3 of UKIPV6Migration fromIP4 to IPV6 Core + ISPs service offeringGovPSNInstallation and migration of services to PSNMobile4G/LTEEE 4G 2012 - 0.8, 2.6 GHz Auction 2013 LTE services evolveFemto / mesh technologyFemto / Mesh networks establishedSpaceGNSSGalileoLaunch 1st 2 sats Launch 3rd/4th sat 18 satellites in operation Full operational capacity
  • 9. Consensus• Market instruments are not well designed toachieve consensus – they are all aboutcompetition and financial efficiency• Simplistic siloed treatment and regulation of thevalue of utilities as a public good dilutestreatment of environmental, adaptability,resilience, liveability as contributing factors –resulting in perverse outcomes, indecision,service degradation• However, synthesis is complex, stochastic inoutcomes and hence has been politicallyunacceptable – but so is siloed treatment!
  • 10. Assessment of effectiveness• How would ‘you’ assess consensus to have beeneffective……what are the metrics• Who is ‘you’ – is that a politically impartial bodythat is steward of the consensus making process– or is it the media..or professional advisers…..• Who is steward of resultant resource allocationdecisions and operations – is this the same bodyor another one – or is it current departments oragencies.• Who is the ‘they’ when we say ‘they’ should fix itwhen things go wrong
  • 11. Proposition• No proposed governance solution will be optimumfor all• Does any governance proposition meet sufficientlywell the vital interests of all stakeholders, such as– Public – it works and delivers the services we want– Government – we can afford it and the political risk isacceptable– Financiers – we can manage the financial risk and get areturn– Operators – it is reliable and resilient and profitable– Regulators – it is safe, fair and environmentallyacceptable
  • 12. Provocation• If consensus is essential how do ‘we’ arbitrateeffectively between disparate vital interests?• Is the value of a national agenda by consensuseffectively nullified by localism and nimbyism?• How important is city leadership in pathfinding newways of delivering infrastructure?• How acceptable would adaptable, consensusconstrained policy making be in our current adversarial,competitive political ecosystems?• If we had an Infrastructure Commission, we would needan Infrastructure Research Base as well to inform itspolicies and the implications of its operations. Can weafford it or afford not to have it?
  • 13. Some research opportunities• Use new systems thinking approaches to theevaluation of integrated infrastructureinvestment and governance.• Examine different governance models for theirdegree of integration and what aspects of theirdegree of integration have a significantcontribution to the delivery of benefits andmitigation of risks• Identify key factors needed in a managed changeprogramme to improve outcomes by betterintegration governance where appropriate