The document outlines the European Investment Bank's (EIB) contributions to smart energy initiatives within the context of smart cities, emphasizing the importance of energy sector innovations. It discusses the challenges cities face with energy demand and infrastructure while detailing EIB's support through funding and financing solutions aimed at promoting sustainable urban development. Additionally, the role of smart grids and technology in enhancing energy efficiency and facilitating a low-carbon transition is highlighted.

1. SMART ENERGY. The fundamental role of the energy sector in
the Smart City Concept.
The EIB contribution
Nicola Pochettino
Senior Loan Officer
European Investment Bank

2. SMART ENERGY. The fundamental role of
the energy sector in the Smart City Concept.
The EIB contribution
Nicola Pochettino
Senior Loan Officer
European Investment Bank
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3. The European Investment Bank
Promoting European objectives
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4. Long-term finance promoting European objectives
The EU Bank
European Union’s long-term lending bank set up in 1958 by the Treaty of Rome
Shareholders: 28 EU Member States
Largest multilateral lender and borrower in the world
Raise our funds on the international capital markets
Pass on favourable borrowing conditions to clients
Gross outstanding loans, equity
investments and guarantees
Source: Standard & Poor’s; Supranationals -Special Edition 2011
Data as of 31.12.2010 (World Bank, IFC as of 30.06.2011)
EURbn
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5. LENDING BLENDING ADVISING
Loans
(Corporate and Project Finance)
Guarantees
(Trade Financing)
Equity participation
(Infrastructure Funds)
Combining EIB finance
with EU budget
(Project Bond Initiative)
Higher risk projects for
innovation
(RSFF)
Prepare & implement
projects (JASPERS)
Support to public/private
partnerships (EPEC)
EE&RE investment in
urban environment
(ELENA)
Financial engineering to
catalyse funds (JESSICA)
 Attracting funding for long-term growth
 Support for EU priority objectives
 Project quality and soundness assessment
 Financial benefits of EIB funding
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EIB products and added value
Tailor made finance

6. EIB loans: signed and disbursed
Projections to 2015
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7. EIB lending to energy projects
Overview of the 2007-2013 period
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8. Smart and Sustainable Cities
Concepts and EIB support
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9. Increasing size and density of cities
creates complex service delivery challenges for city authorities and increased
demand on ageing city infrastructure
Creation of new markets for goods and services
tackling the challenges and exploiting the opportunities of city-scale development
Increases in Renewable Energy generation and more efficient new and
existing energy infrastructure, homes and appliances
Persistence of inequality within and between European cities
Increased exploitation of smart technologies by businesses
delivering personalised services to customers
EU commitments to reduce CO2 emissions (from 1990 levels) by 80%
by 2050
Drivers for Smart and Sustainable Cities
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10. Digital infrastructure
• ICT infrastructure
• high speed broadband
• fibre optic cables
• wireless technologies
• networked information
systems
Data
• Data collection, storage, and analysis (and open-data) at a city wide level,
potentially through the ‘Cloud’, which can enhance a city’s ability to
predict and plan for the future
Information processing
• Processing of information to service programmes
Service development
• Development of service applications
Smart Transport and
Mobility
• Bike schemes
• Real time travel
information
• Electric vehicle car pools
• Congestion charging
• Apps…
Renewable energy & energy
efficiency
• Combined Heat and Power
• Renewables
• Electric vehicle charging points
• Sensors to monitor traffic,
pollution, emissions
• Street lighting
• Waste collection systems
• Smart grids
Smart and Sustainable Buildings
• Smart meters
• Energy efficiency measures: Insulation,
low energy lighting, efficient boilers
• Building Integrated Renewables
• Electric Vehicle Charging Point
• Smart appliances
• Motion detectors
• Automatic weather forecasting
Emerging typology of smart city projects
for setting into integrated plans/strategies
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11. JESSICA
Urban Development Funds
Potential role for UDFs :
Long term financing
Risk match
Collaboration between public
and private sectors
Financial ROI + Socioeconomic
and Environmental impact
Support achievement of
economic, social, environmental
goals
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EIB involvement :
Advise and assist national, regional and local authorities in implementing JESSICA
Promote the use of Urban Development Funds and best practice across Europe
Act as a Holding Fund, when requested by Member States or managing authorities

12.  EE&RE in public and private buildings
public lighting and traffic light network,
photovoltaics, heating/cooling systems;
 Efficient urban transport
high-efficiency buses, electrically powered
cars, logistical improvements;
 Local facilities support EE&RE
smart grids, infrastructure for recharging
electrically powered cars, information and
communications technologies, etc.
Support for local or
regional entities:
 Additional personnel
 Technical studies
 Preparation of calls for tender
 Financial structuring
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ELENA
European Local ENergy Assistance
Investment ProgrammeTechnical Assistance

13. Smart Grids
A key role in the Smart City concept
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14. Energy infrastructure is one of the biggest challenges for cities
need to revolutionise the way of producing and distributing energy to tackle climate change
growing city populations increases energy demand
need for greater resilience from national electricity grids
Smart grids:
seek to manage peak energy demand to reduce the need of installed generating capacity
incorporate distributed and micro renewable energy (solar PV, CHPs, wind, etc.)
support the transition to a lower carbon energy mix
require communication between users and suppliers of electricity
require smart appliances and smart citizens using those appliances to allow for automated
systems to regulate energy demand, also in the transition to electric vehicles
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Smarter Grids
Key to creating a step change in the sustainability of cities

15. Smart Grids
The EIB approach
Over the last decade, electricity networks have gained an increasingly important role
in the EU energy infrastructure policy and, as a result, in the EIB lending activities
Key role of electricity networks to meet EU energy policy objectives is being further
strengthened for next decade
EU Connecting Europe Facility to provide financial support of EUR 5.85 bn over 2014-
2020 for energy infrastructures, incl. smart grids.
New Energy Efficiency Directive requires billing to be made on actual rather than
estimated consumption (by 2015): encourages use of smart meters
Smart grids in the EU: an extremely open concept
a new concept of electricity grids aiming at facilitating the development of low carbon
initiatives
focused on reducing dependency on traditional network reinforcements and minimising the
investments needed to adapt the pre-existing infrastructure
implying wider use of communication, monitoring and control technologies and/or the
integration of higher performance network equipment
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16. Integrated management of responsive loads, distributed generation, system
configuration, and distributed storage
Enable to meet local system needs (voltage regulation, power flow control) and global
system requirements (preserving system reliability or following RE fluctuations).
Effectiveness/benefits still unproven; they depend on:
customer’s behavioural adaptation
availability of a cost-efficient form of distributed energy storage (as RE penetration increases)
To support decision makers on whether to proceed with national roll-outs,
demonstration projects have been launched in many EU MS
EIB can finance these demonstration projects
By 2020 up to 200m smart meters could be installed in EU requiring an investment of
EUR30-40bn
Over the past decade, EIB support to smart grids accounted for 6% of total
investments financed by the Bank in electricity networks
Active Distribution Grids
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“A smart and sustainable city invests in human and social capital, manages
resources wisely, has citizens which participate in city governance, and has
traditional and modern infrastructure which supports economic growth to
create high quality of life for its inhabitants.”
“A sustainable city is one which develops in a manner which meets the needs
of the future without compromising the ability of future generations to meet
their own needs.”
Closing Remarks
Sources: Report JESSICA for Smart and Sustainable Cities, 11.12.2012, composite quotations from Brundtland Commission Report (1987); Giffinger, R.,
Haindlmaier, G. and Kramar, H. (2010) The role of rankings in growing city competition; Caragliu, A., Del Bo, C and Nijkamp, P. (2011) Smart Cities in
Europe; Deakin, M. (2010) SCRAN’s development of a transnational comparator for the standardisation of e-government services

18. http://www.eib.org/
info@eib.org
Tel: (+352) 43 79 - 22000
For more information
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