Dr. Flavio Romano presents on the massive existing opportunities in Australia where smart infrastructure could be utilised to extract efficiency and avoid costly new infrastructure builds.

1. AUSTRALIA: LAND OF PLENTY
(OF OPPORTUNITIES FOR
SMART INFRASTRUCTURE)
FLAVIO ROMANO
TELSTRA TEMPLATE 4X3 BLUE BETA | TELPPTV4

2. CONTENTS
1. Setting the Context: Australia’s Strategic Challenges
2. The Role for Smart Infrastructure
3. The Path Forward
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3. THE CHALLENGES
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4. CHALLENGE ─ POPULATION GROWTH
Projected Population 2007-2056 Capital Cities and Australia
Capital cities = 67.0%
Capital cities grow
by 10.4 million
Capital cities = 63.6%
Source: ABS Catalogue No. 3222.0, Released 4 Sept 2008 – Medium level projections
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5. CHALLENGE ─ POPULATION GROWTH
Medium Growth
25
20
Population (millions)
15 Perth
Brisbane
10 Melbourne
Sydney
5
0
2007 2026 2056
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6. CHALLENGE – ECONOMIC CHANGE
Australia’s GDP by Industry Sector, 1900–2001 (%)
100% 3
10 6
90% 4
80% 30 12
20
70%
Mining
60% 12
Agriculture
22 Manufacturing
50% 48
Services (incl. technology)
40% 31 Construction
Property
30% 25 Government
20% 8 5
10% 10 8 10
3
0% 3 3 4
1900–01 1950–51 2000–01
Source: ABS Year Book Australia 2005
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7. OTHER CHALLENGES
Australian modelling of demand growth for economic infrastructure shows:
 Freight demand is set to double by 2035
The cost of urban congestion to increase from $9.4 billion in 2005 to
$20.4 billion by 2020
 Electricity shortages on the East Coast by 2014-15 without further
investments
 Urban water demand to increase 42% by 2026 and 76% by 2056
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8. THE AUSTRALIAN INFRASTRUCTURE TASK
$300bn 2020
High estimate
$30bn
per year, every year
2015
$250bn
Low estimate
2010
Source: Infrastructure Australia
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9. CHALLENGE – FISCAL CONSTRAINTS
Projected Fiscal Gap
Source: Intergenerational Report 2010, Chart 3.2
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10. DEMAND/SUPPLY
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11. THE ROLE FOR SMART
INFRASTRUCTURE
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12. STATE OF PLAY
Transport
Intelligent Transport Systems Level 3
Energy
Smart energy meters
Water & Irrigation
Smart irrigation sensors
Communications
The National Broadband Network provides the key enabling technology for
supporting smart infrastructure that can help achieve efficiencies across all
sectors
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13. INTELLIGENT TRANSPORT SYSTEMS
Monash-CityLink-Westgate (M1) Motorway (managed road)
75 km road corridor = busiest road in Victoria (160,000 vehicles per day)
$1.4 billion investment + 7% in smart infrastructure
Electronic information + coordinated ramp signals = real time travel information
Congestion and incident management
Variable speed limits
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14. INTELLIGENT TRANSPORT SYSTEMS
In 2009, NSW introduced time of day tolling =
$4 up from $3 at peak times and $2.50 at other times
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15. INTELLIGENT TRANSPORT SYSTEMS
The National Managed Motorways Strategy:
High Occupancy Vehicle (HOV) priority (1.2 average)
Full lane control e.g. tidal contra flows
Ramp metering
Freight only networks for added safety and economic value
Spreading peak demand – telepresencing/staggered work hour strategy
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16. INTELLIGENT TRANSPORT SYSTEMS
Singapore’s Electronic Road Pricing (ERP) system varies road prices based on
traffic patterns to maintain an optimal speed range (85 th percentile).
Washington DC Capital Beltway HOT Lanes:
Addition of 22.4 km of HOT/bus lanes to the I-495 with dynamic tolling due
2013
One estimate: 11 billion litres of fuel spent in congestion in the US annually
United States’ Public Law 106-346 (2000) and the Telework Enhancement Act
(2007)
Federal agencies required to develop employee telepresencing strategies.
Reducing peak demand on urban transport infrastructure by 5%
Australian report: -320,000t CO2 if 10% employees telework ½ time
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17. SMART ENERGY METERS
Australia is a very energy-intensive economy
 Debate has focused on the supply-side of generation but is slowly moving
towards demand-side measures:
Consumption choices
Consumption efficiency
Shortages predicted on the East Coast from 2014.
Network efficiency
In NSW, 8% (6400 GWh) annually is lost in transmission
Capital city smart meter programmes
Mandatory in new dwellings in many catchments
Victoria rolling out to all premises by 2013
Moratorium on mandatory smart meter use in VIC and NSW
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18. SMART ENERGY METERS
Boulder, Colorado
Smart energy meters that enable full control:
Choice of energy source (coal, hydro, nuclear, etc)
Consumer’s tolerance for interruptions to supply
which appliances must not be interrupted?
Pricing regime based on sensitivity to fluctuations in price
Emissions intensity
Management of appliances
programmed meters that can deliver just-in-time hot water obviating
the need to waste energy keeping large quantities of water heated
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19. WATER & IRRIGATION
Big issue for Australia = arid continent.
Water restrictions are widespread and stringent.
Household sector smart water meters allow consumers greater, real time
understanding of their water consumption but not common.
Irrigation sector is adopting smart sensors to identify areas of most need.
Potential synergies between energy and water smart meters largely
unexplored.
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20. THE PATH FORWARD
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21. CHALLENGES TO OVERCOME
 More collaboration both within and between infrastructure sectors
 More collaboration with international partners/leaders
 More accurate understanding of the cost/benefit dimension of proposed
smart infrastructure technologies
 Is a specific proposal worth doing?
 How will we know it was worth doing?
 More engagement from the community
 Need to address privacy concerns
 Need for a national framework
 Need for common standards for smart technologies
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22. KEY MESSAGE
Plenty of opportunity in Australia for smart infrastructure solutions that increase
the efficiency of new and existing infrastructure assets, thereby delaying costly
new builds and generating positive environmental externalities.
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23. Thank you.
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