Urban energy policy design - IEA

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Energy and Power
Over 60 per cent of global energy demand is consumed in cities, where roughly half of the world’s population lives.
© JRover
Urban energy policy design
By Maria van der Hoeven, Executive Director, the
International Energy Agency (IEA)
Over 60 per cent of global energy demand is consumed
in cities, where roughly half of the world’s population
lives. Moreover, the urban population is expected to
continue increasing rapidly due to growing urbanisation
in emerging economies and developing countries, putting
cities at the centre of the sustainable energy challenge.
Cities can play an important role in the application of
sustainable solutions, especially if city planners learn
to identify policy opportunities for reducing their
consumption of energy and better exploiting their
capacity to generate energy.
Policy to ensure reliable energy supply and sustainable
energy generation will generally be designed and implemented
at the local level. But the impacts of national and regional
policies on the overall urban policy package must also be
considered, as they will drive energy consumption and
generation at the city level. Energy policies should therefore
strive to create an effective link between national, regional,
and local needs. Several of the most important areas to address
include city planning policies, building energy efficiency
policies, transportation policies, and energy generation,
distribution and delivery policies. Impact analyses of such
policy areas should also employ a cross-sectoral approach.
The link between energy and transport for example is
apparent, but less obvious interdependencies can also be
important, such as the interplay of energy policies with waste
and water management.
Energy policies should strive to
create an effective link between
national, regional, and local needs.
Policy-makers should include energy demand and
generation requirements in the early stages of city planning
policy design. A holistic approach is necessary, where not
only traditional technology, but also passive solutions are
considered. For example, this could include taking into
account the local climate in city planning policies, in order
for buildings to benefit or be protected from solar gains.
The nature of the energy sustainability challenge will
require a range of solutions to promote strong cities, while
reducing CO 2
emissions and dependence on traditional
external energy sources.
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Figure 1. Hammarby eco-cycle model.
© hammarbysjostad
Urban Policy Package
City planning
City planning is a major policy driver of sustainable energy
generation. It is therefore essential that city officials ensure
that city planning accommodates various other policy
goals, since it determines the urban density and establishes
residential, non-residential, and mixed zoning. These
decisions can have a direct impact on building heating and
cooling needs, the cost effectiveness of public transport, and
the vulnerability of the built environment to extreme weather
conditions. Overall energy demand and supply needs can
thus be reduced by design as much as by technology.
Buildings’ energy efficiency
The buildings sector is the primary energy consuming sector
at the city level. Energy efficiency policies for this sector
should therefore be developed early on in the design of
urban policy packages.
Overall energy demand and supply
needs can thus be reduced by design
as much as by technology.
These policy packages should include building energy
codes and energy labelling schemes that aim to reduce
the energy demand of both new and existing buildings,
without compromising comfort levels. When implemented
effectively, building energy codes can ensure the deployment
of energy efficient technologies and reduce the risk of
blackouts during extreme weather conditions. Energy
efficient buildings often yield greater year-round comfort
levels, which in turn can be a low-cost means to provide
health benefits for its occupants. Reducing energy demand
will lower pollution levels by cutting unnecessary power
generation, and reduce urban heat island effects.
Transport
Transport is the second energy consuming sector at the
city level, and should similarly be considered early on in
urban policy design. Transport policy to reduce energy
consumption might include the implementation of efficient,
high quality and safe public transport systems; schemes to
discourage the use of personal vehicles, such as road pricing
or driving and parking restrictions; and policies that turn
multi-modal trips into seamless journeys, such as car-sharing
and employee transport plans. Provision of infrastructure to
support more and safer non-motorised travel (such as cycling
lanes and better footpaths) can also play an important role.
Such policies not only reduce energy use and greenhouse gas
emissions, but also bring substantial improvement in other
environmental externalities, such as local air quality and
noise. Mixing shopping and work areas with residential areas
can also save energy by reducing the average distances city
dwellers need to travel on a normal day.
Energy generation
Sustainable city-level energy generation policies should
include plans for electricity and heat generation through
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Energy and Power
local renewable energy sources. Cities should thus aim
to be centres for energy and heat generation, where
technically feasible and economically viable. These efforts
should be concurrently supported by city planning and
building energy policies, in combination with waste and
water management programmes. Energy generation should
be part of an integrated approach that includes energy
distribution and delivery, and that can help to increase
on-site renewable generation and the overall share of
renewable energy.
Resources should be
secured for local capacity
building and energy
awareness programmes.
Such an integrated approach is not new. Since the
Earth Summit in 1992, several cities around the world
have implemented it. The approach was illustrated by the
Hammarby (Stockholm) eco-cycle model (see Figure 1).
Energy distribution and delivery
Policy-makers should consider smart grids, distribution
management, and end-user energy delivery at the early
stages of urban policy formation. Investing in smart grids
can improve demand response, delivery of energy efficiency,
integration of variable renewable resources, and enable
electric vehicle recharging services. Such grids also smooth
demand peaks and stabilise the electricity system, helping to
deliver effective energy savings.
Capacity building, transparency
and stakeholder involvement
In order to achieve effective implementation, resources
should be secured for local capacity building and energy
awareness programmes. As cities can benefit greatly from
sustainable energy generation, it is important that they lead
by example. Public buildings should be energy efficient and
use renewable energy where possible; and local authorities
should include the purchase of energy efficient products and
goods in their procurement rules.
In the end, city planning is
about human well-being.
Cities should also be mindful of transparency, and include
all stakeholders and interested parties from the early stages of
urban policy package design. Both stakeholder involvement
and transparency are key to successful acceptance and
implementation of such policies.
Towards a sustainable future,
inside and outside cities
In the end, city planning – including buildings, public
transport, energy supply, waste and water management – is
about human well-being. Efforts should not focus merely on
statistics or technology, but also be mindful of beautification
and quality of life. Urban greenery programmes, for
example, can increase quality of life while decreasing heatisland
effects.
This type of common-sense, win-win solution is typical
of good local, integrated policy planning. Even if national
policy takes the limelight, the real impact of energy policy
will first be local. And given the importance of cities within
the wider energy equation, addressing their particular
needs in a sustainable, intelligent and efficient manner also
enhances national energy security. Cities lie at the centre of
the energy challenge; making sound urban policy is key to
the solution.
Maria van der Hoeven took over as Executive Director of the IEA on
1 September 2011. Previously, she served as Minister of Economic
Affairs of the Netherlands from February 2007 to October 2010. As
minister, Ms Van der Hoeven took the initiative in advancing several
key aspects of her country’s energy policy, including unbundling,
infrastructure modernisation and extension, developing the Dutch
gas hub policy, and accelerating the development and use of
renewables. She played an active role in European energy policy
development, and helped to set up the Pentalateral Forum, which
establishes co-operation on electricity between Germany, France
and the Benelux countries. Before becoming Minister of Economic
Affairs, she was Minister of Education, Culture and Science.
The International Energy Agency (IEA) is an autonomous
organisation that works to ensure reliable, affordable and clean
energy for its 28 member countries and beyond. Founded in response
to the 1973/4 oil crisis, the IEA’s initial role was to help countries
co-ordinate a collective response to major disruptions in oil supply
through the release of emergency oil stocks to the markets. In
addition, it is at the heart of global dialogue on energy, providing
authoritative and unbiased research, statistics, analysis and
recommendations. Today, the IEA’s four main areas of focus are:
energy security; economic development; environmental awareness;
and engagement worldwide.
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