The penetration of the latest technologies into the urban economy will require a rethinking of the sources of functioning and life of the city. According to Deloitte, the transition to green energy will play a key role here.
Cities occupy only 2% of the world’s land mass, but are already home to most of the world’s population, economic activity and energy consumption. In urban planning, the concept of a “smart” city has recently come to the fore, in which electronic communication and the Internet of things (IoT) will play a key role in managing the economy.
The idea of a “smart” city is inextricably linked with “green” energy, since the latter contributes to the creation of a favorable environment for residents, Deloitte analysts are sure. In their study “Renewable Energy for Smart Cities: Food for Thought”, they created the concept of Smart Renewable City (SRC), a smart city with an autonomous energy grid from renewable sources.
The authors of the report believe that the combination of advanced technologies in the urban economy and in energy supply:
- will contribute to economic growth, as “green” energy is able to compete with traditional energy, creates new jobs and promotes innovation;
- support a sustainable, environmentally responsible economy;
- improve the quality of people’s lives by creating a healthier environment for them.
These three directions form the main goals facing the human-centric city of the future. To meet them, Deloitte analysts say, the energy sector must, in turn, be reliable, affordable and environmentally friendly.
What does this mean in practice
Two energy sources suitable for all these needs are wind and solar energy. Previously expensive and useless, now this industry has caught up with traditional energy in terms of efficiency and availability. An important aspect: the same solar panels can and should be placed right inside the city, on the roofs of houses. This leads to a radical transformation of society, the creation of a small neighboring power grid, the transition to autonomous supply, and so on.
The rudiments of a city of the future, permeated by the Internet of Things and relying on renewable sources, are already visible in megacities around the world. For example, in Paris, 18% of electricity generated comes from renewable energy, 4,2% of which is solar and wind energy. In London, the figures rise to 24,6 and 10,9%, respectively, in Hamburg – to 29,9 and 14,8%.
Some cities have already completely switched to the use of energy from renewable sources. But basically these are either very small settlements (for example, Georgetown in Texas with 70 thousand inhabitants), or promising projects that exist mostly on paper (say, Chinese Xiong’an).
1. Green economic growth
The authors of the report note: at some stage, power grid operators realize that the integration of renewable sources into the city’s economy becomes more profitable than maintaining, and even more so, building new traditional power plants. In the same Georgetown, over ten years of introducing “green” energy, the cost per kilowatt-hour has fallen from 11,4 to 8,5 cents. A side effect is expressed in a decrease in water consumption and cheaper fuel.
In addition, green cities attract innovative businesses that bring high-paying jobs, as is also evident in Georgetown. In such cities, modern scientific clusters and business incubators can emerge, as is the case in South Africa’s Nelson Mandela Bay and Mexico’s Peña.
2. Sustainable infrastructure
Buildings and vehicles consume the most energy within the urban economy. Accordingly, the transition to renewable sources is changing not only the way energy is delivered, but also what these sectors are: houses are becoming miniature power plants that can not only take, but also supply electricity to a single grid, while there are more and more electric vehicles on the streets.
3. Quality of life
“Green” energy is mistakenly considered something purely elitist. On the one hand, indeed, individual solar panels and electric cars remain quite expensive. On the other hand, the growth in supply and specific government support measures make them more accessible.
Over time, moving away from internal combustion engines and coal-fired power plants will lead to a healthier environment. Already, European capitals (Copenhagen, London, Paris) are planning to close the center for petrol and diesel vehicles over the next decades.
In addition, the transformation of houses and electric vehicles into miniature power plants will lead to the emergence of a layer of so-called prosumers, that is, producers-consumers. This contributes to increasing the autonomy, and hence the self-awareness of individual companies and families.