1. EU Smart Cities & Communities
Initiative
1 July 2011
Karen Fraser
Scotland Europa

2. Agenda
 Quick introduction to Scotland Europa
 Setting the scene: EU policy context
 What is a Smart City?
 The Smart Cities and Communities Initiative
 EU Funding for Smart Cities
 Scotland Europa/ Scottish engagement

3. Scotland Europa
- Who we are
Scottish
Enterprise Members
(public,
Scottish private,
Development academic)
International

4. Scotland Europa Members

5. Our team
Dedicated EU Policy & Funding resources for SE/SDI, members &
Scottish companies
Scotland Team Brussels Team
 EU Funding specialists –  Experienced staff focusing
strategic EU funding on EU policy – early
support, project warning, interpretation &
development & analysis
compliance
 Direct links with
 Close collaboration with
Commission & other
National Contact Points
regional & national
 Working in partnership representations in Brussels
with Enterprise Europe
Scotland and Scottish  Engagement with EU
European Green Energy business networks &
Centre associations e.g. EURADA,
ERRIN

6. Setting the scene: EU policy context
 Europe 2020 Strategy
 Successor to Lisbon Strategy: strategy for smart, sustainable & inclusive growth
 An exit strategy to lift Europe from the economic & financial crisis
 Responding to existing challenges: globalisation, ageing, climate change, pressure on resources
Smart growth
─ Flagship initiatives: Innovation Union; Digital agenda; Youth on the move
Sustainable growth
─ Flagship initiatives: Resource efficient Europe; An industrial policy for the globalisation era
Inclusive growth
─ Flagship initiatives: An agenda for new skills & jobs; Platform against poverty

7. Setting the scene: EU policy context
 Three broad “pillars” of EU Energy policy:
Internal
Climate
security
Supply
change
market
 Climate Change & Energy package:
20% renewables 20% less emissions 20% efficiency 2020
 Towards 80-95% less emissions by 2050: Low carbon
economy
Roadmap
Low carbon Energy Future of
energy system Efficiency Transport
Roadmap Plan White Paper

8. Strategic Energy Technology (SET) Plan
Implementation of European Industrial Initiatives,
Estimated investment needs to 2020:
Bio- Smart
Wind Grid Solar CCS energy
Nuclear
Cities
€6 bn €2 bn €16 bn €13 bn €9 bn €7 bn €11 bn

9. What is a Smart City? Building on Existing Initiatives
 CONCERTO
Renewables & efficiency in energy systems
58 Communities; 22 projects
 CIVITAS
Clean & energy efficient urban transport
system
25 cities; 5 projects
 Covenant of Mayors
Energy efficiency & renewables
2595 cities
 Green Digital Charter
ICT for energy efficiency
23 cities

10. What is a Smart City? Key Aims
 Implementing climate goals, especially energy efficiency
 Accelerating large scale deployment of innovative low carbon technologies
 Sharing best practice: technological, economic & organisational solutions
 Local economic development
 Engagement of citizens
 Social factors

11. Smart Cities and Communities Initiative: ‘Philosophy’
 Identify common challenges
 Develop innovative, replicable solutions
 Bundle demand from cities
 Attract and involve business and banks
 Create markets!

12. Smart Cities and Communities Initiative: Main Characteristics
 Technology focus
 Priority for energy efficiency
 SET Plan time horizon : 10 years programme
 Competitive process based on calls for proposals
 Stakeholder platform
 to provide input to the initiative
 to facilitate knowledge sharing and replication

13. What is a Smart City? Criteria
 Holistic, long term planning
e.g. Covenant of Mayors –Sustainable Energy Action Plans to achieve 20% CO2
reductions by 2020
Surpassing EU energy & climate goals
 Partnership
Strong commitment at local level; Engagement of public, private & academic partners,
as well as communities
Transnational collaboration
 Replicable projects
Potential to unlock markets
 Innovation
Cutting edge exemplar cities, but also learning cities?
No population threshold

14. Smart Cities and Communities Initiative: Building Blocks
Energy
 Energy in cities
Planning and modelling of flows
 Energy networks
Electricity and heating & cooling; improved components, systems and data flows
 Buildings
Energy consumption in public & private buildings, Retrofitting
 Supply technologies
Electricity and heating & cooling, local production

15. Building blocks (continued)
 Transport
Improve interconnections, inter-modal and co-modal transport;
Improve public transport, non-motorised transport, passenger and freight logistics;
Low carbon vehicles
 ICT
Cross-cutting applications related to energy or transport
Modelling of energy flows

16. EU Funding for Smart Cities
 2007-13
 No big new funds
 Making use of existing instruments, budgets
 Specific calls designed for Smart Cities agenda
 Greater priority for low carbon, energy agenda
 2014-20
 New instruments?
 More emphasis on financial instruments, less grant
 Bigger budgets?
 Greater priority for low carbon, energy agenda?
 Possibility of dedicated fund for SET-Plan?

17. EU Funding for Smart Cities: FP7 Energy Smart Cities 2012
 Budget € 75 million
 Demonstration of nearly Zero Energy Building Renovation for cities and
districts
 Heating and cooling technologies for large-scale systems for urban areas
 Strategic sustainable planning and screening of city plans
 In total 10 projects of at least 3 cities
 Time frame: 19 July – 1 December 2011

18. EU Funding for Smart Cities: Other FP7 Areas
 Energy
 Smart Energy Networks
 Renewable Energy Generation
 ICT
 Smart Energy Grids
 ICT for Efficient Water Resources Management
 Cooperative Systems for Energy Efficient and Sustainable Mobility
 ICT for Energy-Positive Neighbourhoods
 ICT for Fully Electric Vehicles
 PPP Energy Efficient Buildings
 Fuel Cells and Hydrogen Joint Undertaking

19. Intelligent Energy Europe
 Non-technical barriers, capacity building - soft actions, no hardware
 Generally minimum three partners, three member states
 Themes – renewables, energy efficiency, transport
 Specific Smart Cities calls 2011:
 Local energy leadership – transnational
 integration of sustainable energy policies in operations – development and
implementation of SEAPs
 cooperation between public authorities and other actors, particularly energy
companies e.g. data sharing
 Mobilising local energy investments – technical assistance
Closed 12 May

20. Technical Assistance / Project Development
ELENA / EEE-F Technical Assistance
 project development services for investment programmes & projects
 grants up to 90% technical assistance
 local authorities & other public bodies
 Companies working on their behalf e.g. transport operator, ESCOs
 High leverage private investment expected

21. Investment Funds
European Energy Efficiency Fund (EEE – F)
 EUR 125 m EEPR + EUR 75m EIB = at least EUR 200m
 Other financial institutions asked to join fund
 “Bankable” energy saving, energy efficiency, renewables projects
 Promoted by local or national public authorities
e.g. energy efficiency in buildings (public and private), CHP, micro-
generation, decentralised renewables, district heating / cooling, transport,
modernisation infrastructure – street lighting, smart grids
 Risk capital fund – loans, guarantees, equity
European Investment Bank
 Loans, guarantees, equity
 Risk Sharing Finance Facility (R&D, linked to FP7)

22. Scotland Europa / Scottish engagement
Scottish Steering Group
Scottish Government, Scotland Europa, Scottish European Green Energy Sector
Public and private sector
Scope for collaborative activity
Individual cities
Pursuing sustainable energy plans and a range of projects
European Commission consultation
Position papers from Scotland Europa & Scottish Government
Individual stakeholder responses
European networks
ERRIN, Eurocities etc. – brokerage events, partnerships