Future cities resilient energy workshopDate: 11th September 2012Location: ManchesterAttendees:Eddie Townsend ICT KTNMike Perry MBE KTNAdam Green National GridVincent Thornley SiemensSacha Meckler WIPRODavid Healey WIPROLuis Ochoa University of ManchesterPierluigi Mancarella University of ManchesterDave Carter Manchester City CouncilJohn Parsons BEAMASteve Connor Creative CameraJessica Symons Clicks and LinksJacqueline Homan Birmingham City CouncilSteven lesser ArupMartine Tammis Manchester City Council
Key policy drivers with focus on growthThe Catapult will at the outset need to establish a framework for Energy in a Future Citiesenvironment and establish a new framework that takes account of the following drivers. The energyneeds of a city will be complex and there is a requirement to define a number of scenarios inestablishing the framework for business models and R&D. • Sustainability – economics (short term vs long term) • Demand • Policy at a city and national level • Electrification of transport • Flexibility • New business models in the energy sector • Affordability • Customer behavior response • Growth in global infrastructureThe framework will result in a multi level road map addressing industry and communities.With Future Internet style systems driving behavioral change there is an opportunity to use anInternet of things pilot to provide real time data feeds to enable modeling of behavioral change.Consumers need to be more engaged and responsible with energy.Changes in manufacturing techniques such as 3D printing technology enabling home manufacturewill have a significant impact on behavior and energy needs. The Catapult should embark onforesight ting and relate these ideas to practical application.Water systems are a major user of energy and need to be considered in any resilient energyscenario.There is also the tendency to view cities as isolated entities but of course they fit into a nationalframework and rather that view the solutions from an independence perspective there should be anemphasis on collaboration at a national or even an EU level.Definition of “Resilient Energy”The problem with any term like Resilient Energy is that it means different things to different peoplein different contexts and the Catapult should agree a definition upon which any activity can bebased. Any definition should consider different forms of energy, electricity, gas, heat and kineticenergy, etc., It is not sufficient to say that it should be fault tolerant, it should also addressaffordability as well as technology. There is also the challenge of providing high levels of resiliencewhilst at the same time meeting aggressive national, EU and international low carbon policyobjectives and targets. Any energy system should therefore take a long view around the driversfrom climate change. If carbon emissions are to be considered in any model then they should alsoinclude the emissions resulting from the supply chain of goods coming into the city.Evidence from other cities in the UK and internationally have shown that there is more than onesolution for a city or community. A single solution is too narrow and rather we need a road map thatcan cater for different scenarios. Putting intelligence in the network and taking into account theneeds of existing building stock are major factors.
Who owns the challengeThe future is less clearly defined as we move to these new energy structures and ownership will bemore diverse and vary with the different levels, from national government to city level to industryand citizens. This diversity will mean that responsibly will lie at a local level with the emergence ofCommunity Energy Systems. There will no longer be a single point of ownership with different setsof owners for different scenarios. With reference to the road map in “Definition of Resilient Energy”,different aspects of ownership at different levels of the challenge. Budget owners at the differentlevels, suppliers, citizens and business, along with city planners will all play a part in the ownershipand management of this complex emerging energy system.Whatever the ownership structure is at present it will become more complex in the future due todiversification and devolution of energy sources. Governments set rules and local ownership needsto ensure the coordination and joint ownership of the “Future Cities Agenda”, taking into accountthe regulatory impact.New Intellectual Property will be generated and the Catapult has an important role to play in takingthe lead on how these IP issues are to be managed by providing working models. The Catapultcan also coordinate the cross sector test beds and act as a driver for early adoption. By taking onthis role solutions can be developed to respond to UK requirements and then be adapted forexport. Catapult to act in a coordinator roleWhat partners need to be includedIt is essential that cities are involved from the outset in the establishment of priorities. City groupssimilar to those led by the Manchester Digital Development Agency are key Catapult partners. Infact the Catapult has the opportunity to become part of a worldwide partnership of cities developingsolutions and creating market entry points for UK innovation and solutions.New supply chain dynamics can be created by enabling cities to see energy production as a profitmaking endeavor, rather than a supply issue and waste as a resource rather than a disposal issue.There are exemplars of new style supply chain implementation such as Linkoping in Sweden thatthe Catapult can learn from. How supply chain partners are required to develop these newbusiness models. Cities are best placed to lead the development of new supply chains.The central government contribution is through OfGem, but there is a role for the Catapult in actingas a facilitator, bringing together the stakeholder community, developing UK and internationalstandards and acting as a hub for the SME community. Catapult can develop a tool box ofintegrating solutions and standards that will allow SMEs to operateCatapults working together can be instrumental in system integration, energy generation anddeveloping a joined up strategy for services such as transport and health. Catapult to bring system and market understanding to the table, commercial and legal understanding.
Programme steps and time scaleFirst 12 monthsScenario mappingProgramme steps are to include scenario mapping, the development and production of componentsleading to solutions. All of which will be supported by business models that will enable additionalinvestment to flow into the catapult and city.Developing top down scenarios and priorities that can be integrated into solutions will take between 9 and12 months, during which time the Catapult will engage with communities and identify the “touch points”between energy systems and other services and how commercial models may be developed.The development of scenarios will be a continuing role of the Catapult beyond this initial stagegiven that we are dealing with an ever changing context.EU CollaborationOne third of the Catapult funding will come from publically funded development programmes and apriority in the first 12 months will be to secure this funding through the development of an EUfunded project aimed at connecting cities across Europe.For UK technology to be used worldwide, cities in the UK see the catapult as a resource.Integration of other cities systems with energyTraining and EducationThe Catapult will in itself be a centre of excellence, but it will also develop links with Universitiesand through these establish training programmes to build a UK skill base in the corporate and SMEcommunity. It is important to the success of the Catapult that it is a leader in the areas of energysector regulation, knowledge and energy business models, with a cross sector understanding ofenergy marketsThe skills will encompass technology, system integration marketing and commercialization.Catapult to act as an intelligent broker and for cities to act as an intermediary expert.2 to 4 year programmeFeasibility studies will contribute substantially to the laying down of test beds and demonstratorswhich have to be complete by March 2014. Convergence and coordination of programmes toachieve sensible time scales will be important. Also there will be major challenges around scalingthe test beds and transferring the models into a full scale real time city environment5 to 10 yearsUK models and IP exported word wide and the creation of a Future Cities industrial sector.Improved understanding of market application of Future City Energy systems and the practicalitiesof full scale integration in a range of contexts and environments. Catapult role: Advocacy and leadership to achieve outcomes of Future City Energy Systems
UK Products and SolutionsEven with the level of funding at around £30M the Catapult will need to pursue activities that willleverage investment of several orders of magnitude greater to establish Future Cities across theUK providing internet style services. Therefore the most important aspect will be to encourageinward investment to the UK to support development and manufacturing of resilient energysystems.This will be achieved by establishing the Catapult as the centre of excellence, provision ofconsultancy services. SMEs who innovative ideas will be able to use the Catapult facilities to testtheir concepts, receive technical, market and investment advice and thereby reduce the risk topotential private investors.Network components to international standards, finance packages encouraging investment anddeveloping commercial models. Catapult role: Developing the commercial model, systems design consultancy.Success factorsAchieve the goal of two thirds funding from non Technology strategy Board sources, one third fromprivate industry and one third from other public funding sources, e.g. EU Commission FP7.Market uptake by achieving replication of city energy projectsIncreased activity of SMEs in the supply chain and engagement with large companies.Objective measurements of knowledge transfer resulting in a UK based centre of excellence,resulting more SME involvement in the sector with significant commercial benefitSuccessful submission of UK Patents and IPMeasureable progress towards more efficient cities with the replication of integrated solutions.It is not possible to describe the perfect delivery mechanism or process and there has to be anacceptance of the risk of market failure. However the identification and quantification of risk will aidthe ability of SMEs and cities to gain the required inward investment.DeliveryThe Catapult will in effect be a living laboratory to enable innovation to be tested against realisticmodels and standards criteria.However there are still some significant questions around this section. What is the funding tosupport and what are the risks.Catapult to establish financial business model.Test bed SME proposals to reduce riskNeed funding framework to support SME development.
ContextThe drive towards a Future City concept with new models for energy supply is not isolate to the UK but is aworldwide objective. The Catapult will have to be constantly aware of the latest state of the art and in factbe a market leader if the UK is going to gain commercial advantage.Other programmes Smart Grid Low Carbon Network FundOther opportunities Fraunhofer model of branding and selling concept overseas Shaping strategy System integrationDependent on scheduling the correct demonstrator