Planning for Resource Efficient Cities by landblend

EDITORIAL BOARD EDITOR-IN-CHIEF: Dr. Vasile ZOTIC Babeş-Bolyai University, Faculty of Geography, Centre for Research on Settlements and Urbansim, Cluj-Napoca, ROMANIA GUEST EDITORS: Dr. Christian FERTNER & Dr. Niels Boje GROTH University of Copenhagen, Department of Geosciences and Natural Resource Management, Copenhagen, DENMARK

EXECUTIVE EDITOR: Dr. Diana-Elena ALEXANDRU Babeş-Bolyai University, Faculty of Geography, Centre for Research on Settlements and Urbansim, Cluj-Napoca, ROMANIA

SCIENTIFIC BOARD: Prof. dr. Gertrud JØRGENSEN University of Copenhagen, Institute of Geosciences and Natural Resource Management, Division of Landscape Architecture and Planning. Copenhagen, DENMARK Senior Researcher Em. Poul Erik GROHNHEIT Technical University of Denmark, Lyngby, DENMARK Prof. dr. Lilli GARGIULO University of Naples Federico II, Naples, ITALY Dr. Kobe BOUSSAUW Vrije University, Faculty of Science and Bio-engineering Sciences, Department of Geography, Brussel, BELGIUM Dr. Trine Agervig CARSTENSEN University of Copenhagen, Institute of Geosciences and Natural Resource Management, Division of Landscape Architecture and Planning. Copenhagen, DENMARK Dr. Ole FRYD University of Melbourne, Faculty of Architecture, Building and Planning, Melbourne, AUSTRALIA Dr. Nataša PICHLER-MILANOVIC University of Ljubljana, Faculty of Arts, Department of Geography, Ljubljana, SLOVENIA Prof. dr. Carmen DELGADO VIÑAS University of Cantabria, Department of Geography, Urban and Regional Planning, Santander, SPAIN Prof. dr. María-Luisa GÓMEZ MORENO University of Málaga, Faculty of Philosophy and Letters, Department of Geography, Málaga, SPAIN Prof. dr. hab. Mirosława CZERNY University of Warsaw, Faculty of Geography and Regional Studies, Warsaw, POLAND Prof. dr. Ekaterina ANTIPOVA Belarusian State University, Faculty of Geography, Minsk, BELARUS Prof. dr. em. Vasile SURD Babeş-Bolyai University, Faculty of Geography, CCAU, Cluj-Napoca, ROMANIA Prof. dr. Dănuţ PETREA Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA Prof. dr. Remus CREŢAN WEST University of Timișoara, Faculty of Chemistry, Biology and Geography, Department of Geography, Timișoara, ROMANIA Prof. Dr. Ștefan DEZSI Babeş-Bolyai University, Faculty of Geography, CCAU, Cluj-Napoca, ROMANIA Dr. George KORRES University of Newcastle, Centre of Urban and Regional Development Studies, Newcastle, UNITED KINGSDOM Dr. Timo SEDELMEIR "Eberhard Karls" University, Institute of Geography, Tübingen, GERMANY Dr. Gerhard HALDER "Eberhard Karls" University, Institute of Geography, Tübingen, GERMANY

Dr. Vladimir TIKHII Orel State University, Faculty of Economics and Management, Orel, RUSSIAN FEDERATION Dr. Evgeny ALEKHIN Orel State University, Faculty of Economics and Management, Orel, RUSSIAN FEDERATION Dr. Pedro Porfirio GUIMARÃES Lisbon University, Institute of Geography and Spatial Planning, Centre for Geographical Studies, Lisbon, PORTUGAL Dr. Christian FERTNER University of Copenhagen, Institute of Geosciences and Natural Resource Management, Copenhagen, DENMARK Dr. Barbara MAĆKIEWICZ Adam Mickiewicz University, Institute of Socio-Economic Geography and Spatial Management, Poznań, POLAND Dr. Sanja PAVLOVIC University of Belgrade, Faculty of Geography, Belgrad, SERBIA Dr. Snežana ŠTETIĆ University of Novi Sad, PMF, College of Turism, Belgrad, SERBIA Dr. Titus MAN Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA Dr. Daniela MATEI Romanian Academy, Iași Branch, ROMANIA Dr. Nagi SFEIR University of Grenoble, Urbanism Institute, PACTE, Grenoble, FRANCE Dr. Ewa KACPRZAK Adam Mickiewicz University, Institute of Socio-Economic Geography and Spatial Management, Department of Food Management and Rural Areas, Poznan, POLAND Dr. Bela BORSOS University of Pécs, Faculty of Sciences, Institute of Geography, Pécs, HUNGARY Dr. Artur HOŁUJ Cracow University of Economics, Faculty of Finance, Department of Regional Economics, Cracow, POLAND Dr. Bernadetta ZAWILIŃSKA Cracow University of Economics, Faculty of Finance, Department of Regional Economics, Cracow, POLAND Dr. Antonio GARRIDO ALMONACID University of Jaén, Department of Cartography Engineering, Geodesy and Photogrammetry, Jaén, SPAIN Dr. Adina Eliza CROITORU Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA Dr. Ciprian CORPADE Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA Dr. Bogdan-Nicolae PĂCURAR Babeş-Bolyai University, Faculty of Geography, Cluj-Napoca, ROMANIA Dr. Viorel-Neculai CHIRIŢĂ Ștefan cel Mare University of Suceava, Faculty of History and Geography, Suceava, ROMANIA

CONTENTS Guest Editorial. Planning for Resource Efficient Cities Christian FERTNER, Niels Boje GROTH

Urban Energy Generation and the Role of Cities Niels Boje GROTH, Christian FERTNER, Juliane GROSSE

Successful Development of Decentralised District Heating: Application of a Theoretical Framework Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK

Beyond the Building – Understanding Building Renovations in Relation to Urban Energy Systems Javier CAMPILLO, Iana VASSILEVA, Erik DAHLQUIST, Lukas LUNDSTRÖM, Richard THYGHESEN

Policy Frameworks for Energy Transition in England: Challenges in a Former Industrial City Roberto ROCCO

Planning for Energy Efficiency in a Historic City. The Case of Santiago de Compostela, Spain Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES

Industrial Energy Use and Interventions in Urban Form: Heavy Manufacturing versus New Service and Creative Industries Arie ROMEIN

The Inefficiencies of Energy Efficiency: Reviewing the Strategic Role of Energy Efficiency and its Effectiveness in Alleviating Climate Change Stephen READ, Erik LINDHULT, Azadeh MASHAYEKHI

Note: The PLEEC Project – Planning for Energy Efficient Cities Mikael KULLMAN, Javier CAMPILLO, Erik DAHLQUIST, Christian FERTNER, Rudolf GIFFINGER, Juliane GROSSE, Niels Boje GROTH, Gudrun HAINDLMAIER, Annika KUNNASVIRTA, Florian STROHMAYER, Julia HASELBERGER

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Guest Editorial Planning for Resource Efficient Cities Christian FERTNER1, Niels Boje GROTH1 1 University of Copenhagen, Faculty of Science, Department of Geosciences and Natural Resource Management, Copenhagen, DENMARK

E-mail: chfe@ign.ku.dk, nbg@ign.ku.dk

K e y w o r d s: resource efficiency, urban planning, sustainable development, smart cities

ABSTRACT Addressing the threats of climate change has become a key issue in urban development. Striving towards energy self-sufficiency, implementing regional resource cycles, retrofitting of the built environment, turning energy consumption towards renewables as well as generally decoupling urban development from energy consumption are crucial for a city’s future vulnerability and resilience against changes in general resource availability. The challenge gets further complex, as resource and energy efficiency in a city is deeply interwoven with other aspects of urban development such as social structures and the geographical context. As cities are the main consumer of energy and resources, they are both problem and solution to tackle issues of energy efficiency and saving. Cities have been committed to this agenda, especially to meet the national and international energy targets. Increasingly, cities act as entrepreneurs of new energy solutions acknowledging that efficient monitoring of energy and climate policies has become important to urban branding and competitiveness. This special issue presents findings from the European FP7 project ‘Planning for Energy Efficient Cities’ (PLEEC) and related research.

We are grateful for the invitiation of the editors of the Journal of Settlements and Spatial Planning to edit a special issue on ‘Planning for Resource Efficient Cities’. Resource efficiency is ranked high on the political agenda, especially in the light of climate change. Just a few months ago, in December 2015, all of the 195 member states of the United Nations Framework Convention on Climate Change (UNFCCC) adopted the Paris Agreement, promising to reduce their carbon output to keep global warming well below 2°C. Key strategies to this are also reflected in EU’s 20-2020 targets, of jointly increasing energy efficiency, reducing CO2 emissions and increasing the share of renewable energy sources. Despite the international and national frameworks, regions and cities play a crucial role to put such ambitions into practice. The major part of energy and resource consumption takes place in the cities. Futhermore, the demand of urban citizens for goods and services typically involves a large hinterland and

causes resource use in other places. Many projects and organisations around the world are currently working on making our cities more resource efficient. Most recently, the European Environment Agency has published three new reports on resource efficient cities [1], combining a wide variety of topics (energy, housing, transport, waste management, public spaces, green areas, governance and policy-making), making clear that we are not just dealing with technical solutions, but also with structural, social and behavioural aspects. This also is one of the conclusions of the European project Planning for Energy Efficient Cities (PLEEC) [2], in which we were involved in the last three years. The project was a so-called ‘coordination and support action’ within the EU’s 7th Framework Programme for Research and Technological Development, focusing on the adaptation, application and dissemination of existing research in close cooperation with end users (six cities in the case of PLEEC). However, several interesting themes of a more

Christian FERTNER, Niels Boje GROTH Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 1-3 Planning for Resource Efficient Cities

general academic interest have come up and are partially reflected by the contributions to this special issue. In the open call for papers, we asked for contributions related to: - sustainable urban development; - energy and resource planning in cities; - urban structure and energy systems; - transport planning and energy; - retrofitting of the built environment; - urban energy production and consumption; - sustainable transition and governance of energy and resource use; - multi-level energy planning and policies; - rebound effects and trade-offs in resource efficient cities; - the smart city and resource efficiency. Not all topics are covered in this issue. However, the seven papers in this issue address a wide range of them. In the first paper, Groth et al. discuss the role of cities in urban energy generation [3]. Despite that energy generation has got somehow detached from cities in the last century, many new technologies of renewable energy production and ambitions towards sustainable cities bring energy generation back on the urban agenda. Groth et al. review the activities in six European medium-sized cities. How these new trends as for example decentralised energy production fits with spatial planning and urban development processes is discussed by Hooimeijer et al.. In two cases from the Netherlands they show how the mere technical side of implementing decentralised district heating systems can be integrated with a bottom-up planning approach of new urban districts [4]. Campillo et al. review progresses in energy efficiency retrofitting of buildings, showing initiatives going beyond mere insulation, e.g. integrating renewable energy generation [5]. Examples include several cases from Sweden. Taking into account the very low replacement rate of buildings in Europe, renovation is a key topic towards resource efficienct cities. This gets also clear from Rocco’s article on energy efficiency policies in Stoke-on-Trent, a former industrial city in England [6]. Stoke-on-Trent faces a major challenge because of its poor private housing stock, where an above-average share of population is affected by fuel poverty. The city is actively engaging in many schemes and applying for national funding for various innovative renovation projects. However, Stoke-on-Trent is also in a fierce competition with other English cities, as the main part of national funding is given to successful bids. Santiago de Compostela in Galicia, Spain, is also working with energy renovation, though with a different challenge. The city with its many historic and protected buildings make specific renovation techniques necessary, as Fernández Maldonado et al. write in their contribution [7]. Although the city has taken energy

considerations into its local plan, implementation measures are very narrowly defined, not taking the full potential for climate adaptation into account. A quite similar sideline fate has the industrial energy use in regards of its relations to urban planning, as revealed by the paper of Romein [8]. Industrial energy use accounts for about a fourth of the total energy use in Europe. Despite the manifold efficiency increases in the past decades – and deindustrialisation in many European countries – industrial energy use has almost never been tackled in urban planning, despite the high potential as shown by two case studies. The ambition is a (partially) circular economy, (re-)using energy and resources instead of emitting or discarding them. A critique of our current production and consumption system is also emphasized in the final paper [9]. Read et al. suggest a global view on resource consumption, question how ‘fossil-free’ renewables really are and highlight the paradoxes of rebound effects as part of energy efficiency gains and replacements. Without taking these into account, “energy efficiency will not be efficient”. Six of the seven papers are built on the work done in PLEEC. At the end of the issue a short note on the project can be found, summarizing its main findings [2]. The PLEEC project has made a valuable contribution to show where planning practice in regards to cities’ energy efficiency stands today in Europe and so do the papers of this special issue. All of the cities mentioned in the contributions make major investments in alleviating climate change. However, a close follow-up of its impacts and an alignment with other policy areas is crucial to achieve real progress avoid backlashes in other spheres of the system. The work on PLEEC has shown that we are not at the end of the story. Rather, we are at the stepping stone of urban climate and energy policies becoming increasingly integrated in regional and national energy networks - not just as passive recepients but also as entrepreneurs responsible for new ideas and practices. ACKNOWLEDGEMENTS We would like to thank the editorial team of Journal of Settlements and Spatial Planning, especially Vasile Zotic and Diana-Elena Alexandru, for their support to convey this issue. Furthermore we are grateful to the many reviewers commenting on the submissions. The PLEEC project (www.pleecproject.eu) was supported by the European Commission’s 7th Framework Programme, GA no. 314704. REFERENCES [1] EEA (2015), Urban Sustainability Issues — What Is a Resource-Efficient City? Technical report No. 23/2015, European Environment Agency. Available

Guest editorial: Planning for Resource Efficient Cities Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 1-3 Planning for Resource Efficient Cities

online at: http://www.eea.europa.eu/publications/ resource-efficient-cities [2] Kullman, M., Campillo, J., Dahlquist, E., Fertner, C., Giffinger, R., Große, J., Groth, N. B., Haindlmaier, G., Kunnasvirta, A., Strohmayer, F., Haselberger, J. (2016), Note: The PLEEC Project – Planning for Energy efficient Cities, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 89-92. [3] Groth, N. B., Fertner, C., Große, J. (2016), Urban Energy Generation and the Role of Cities, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 5-17. [4] Hooimeijer, F. L., Puts, H., Geerdink, T. (2016), Successful Development of Decentralised District Heating: Application of a Theoretical Framework, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 19-30. [5] Campillo, J., Vassileva, I., Dahlquist, E., Lundström, L., Thyghesen, R. (2016), Energy Renovations Beyond Buildings, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 31-39.

[6] Rocco, R. (2016), Policy Frameworks for Energy Transition in England: Challenges in a former industrial city, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 41-52. [7] Fernández-Maldonado, A. M., Liñares Méndez, P., Vieites Montes, E. (2016), Planning for Energy Efficiency in a Historic City. The Case of Santiago de Compostela, Spain, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 5365. [8] Romein, A. (2016), Industrial Energy Use and Interventions in Urban Form: Heavy Manufacturing versus New Service and Creative Industries, Journal of Settlements and Spatial Planning, Special issue no. 5 (2016), pp. 67-76. [9] Read, S., Lindhult, E., Mashayekhi, A. (2016), The Inefficiencies of Energy Efficiency. Reviewing the Strategic Role of Energy Efficiency and Its Effectiveness in Alleviating Climate Change, Journal of Settlements and Spatial Planning, Special Issue no. 5 (2016), pp. 77-87.

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Urban Energy Generation and the Role of Cities Niels Boje GROTH1, Christian FERTNER1, Juliane GROSSE1 University of Copenhagen, Faculty of Science, Department of Geosciences and Natural Resource Management, Copenhagen, DENMARK E-mail: nbg@ign.ku.dk, chfe@ign.ku.dk, jg@ign.ku.dk

K e y w o r d s: local energy, energy self-sufficiency, medium-sized cities, sustainable development, urban energy generation, EUFP7 project PLEEC

ABSTRACT

Although a major part of energy consumption happens in cities, contemporary energy generation is less obviously connected to the urban structure. Energy based on fossil fuels and consumed in transportation is produced at global scale; energy for electricity is usually distributed through a national or continental grid; energy for heating, if related to district heating systems or the use of local/regional resources for its generation (e.g. biomass, waste), has a more local or at least regional character. In the latter case, electricity might be a by-product of combined-heat-power plants, but still feeding into the grid. Furthermore, through the ongoing liberalisation of energy markets and a subsequent change in the organisation structure of energy providers towards larger co-operations as well as the development of new technologies as ‘smart grid’-solutions, local authorities seem to lose further influence on energy generation and distribution. However, contemporary focus on sustainable and efficient use of resources and energy at local level, mainstreaming of renewable energy production and ideas of urban energy harvesting put energy generation again on the local agenda. The role of cities can be twofold: (1) cities as producers and (2) cities as enablers or promoters. Furthermore, energy production (renewable or not) has to happen somewhere, potentially also in the city where consumption takes place, and is related to specific spatial conditions. We review the contemporary options of urban energy generation, building on literature and findings from six European medium-sized cities who participated in the EU-FP7 project PLEEC.

1. INTRODUCTION This paper discusses the role of cities in energy generation and distribution, based on findings from six European medium-sized cities that participated in the EU-FP7 project PLEEC. A major share of energy is consumed in cities; however, energy generation is not explicitly connected to the urban structure. Depending on the resource and the type of produced energy, generation takes place at very different scales: fossil fuel based energy for transportation is produced at global scale; electricity generation and distribution is usually carried out through a national or continental grid; heat energy, however, is primarily generated and distributed at a regional or even local scale, for instance through district heating systems, and allows the use of local/regional

resources (e.g. biomass, waste). Heat generation in combined-heat-power (CHP) plants produces electricity as by-product, which is, however, still fed into the national grid. In general, local authorities seem to lose further influence on energy generation and distribution, which is directed by changes in the organisation structure of energy providers towards bigger cooperations due to an ongoing liberalisation of the energy market, as well as the development of new technologies such as ‘smart grid’-solutions. On the other hand, the increasing importance of renewable energy production and sustainable and efficient use of resources, put energy generation again on the local agenda through the use of local resources or urban energy harvesting. In this agenda, cities act not only as producers but also as enablers, promoters and

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

mediators towards the general public. Moreover, the recent Paris agreement (COP21, 2015) of the UNFCCC on holding global temperature rise below 2°C above pre-industrial levels, put strong focus on renewable energy production, also in cities. In this paper we first review the changing role of cities in energy production (section 2), especially focusing on changes in the past century, moving from local supply production to a liberal energy market and the current climate agenda. Related to the latter, a number of ideas and concepts have been developed, ranging from the zero-carbon city to the productive city. We further go into detail with our findings on different forms of urban energy production and distribution in European medium-sized cities (section 3). We draw on work done in the EU-FP7 project PLEEC [1], [2]. PLEEC used an integrative approach, bringing together researchers and practitioners to increase energy efficiency in six cities and disseminating good practice across Europe. This study is based on material from the six partner cities, Eskilstuna (Sweden), Turku and Jyväskylä (Finland), Tartu (Estonia), Stoke-on-Trent (UK) and Santiago de Compostela (Spain), as well as selected experiences from Danish cities.

belongs to the city-level of energy production should not be taken for granted. Facing the complex energy systems, we need to clarify how local energy production and the local energy producer can be singled out in the myriad of relations. Local energy plants might produce for the national grid, e.g. electricity as by-product of CHP; however, local decision makers might not be independent actors, but rather members of large non-local systems. Local house owners, private housing estates, cooperative housing societies, local energy companies and energy processing industries, as independent actors, make their decision on energy investments based on individual priorities, economic profitability and climate responsibility. However, local decision makers, as members of large non-local energy systems, are subject to optimisation of regional or national systems for energy storage or timely production of energy during periods of changing supply-demand. A look back in time illustrates the evolution of these complex relations. Four phases in the development of the current energy system (with focus on heating and electricity) highlight the development from independency towards interdependency. 2.2. Evolution of the urban energy system

2. BACKGROUND AND ANALYTICAL APPROACH 2.1. Energy generation and the city Urban energy generation is not new. Available resources as water, biomass and building material are decisive for a city’s survival. Historically, their depletion “may have become a constraint on the growth of cities” [3]. However, since the industrial revolution and the exploitation of fossil fuels, cities gradually “became spatially disconnected from the sources that allow an urban life style” [4]. Today it is questionable if there is anything specifically ‘urban’ about energy, as energy systems mainly function on national and international levels [5], though with district energy systems as an exception. Our starting point is thereby the energy that is consumed in the city, rather than where the energy actually comes from. The consumed energy is usually the driving force for the local authority to engage in energy generation and/or its distribution or, more general, in initiatives enabling certain energy generation. Consumption patterns are strongly related to settlement characteristics. For example, in suburban and rural areas, the consumption of fossil fuels mainly for transportation is usually the most prominent, whereas in urban areas (at least in Northern Europe) district heating might play a bigger role in the overall energy consumption. Also, the frame conditions for local energy production are changing, by energy policies, technologies and markets. Therefore, what

Local generation. Historically, local energy generation covered the energy demand of cities. Since the industrial revolution fuels were increasingly imported (wood, coal) and transformed into heat and electricity in local plants. While oil production became a global business (though with increasing focus on providing energy for transportation), nation-wide electricity grids were evolving since the 1920s and 1930s, at the beginning still facing many different local and regional configurations. Gas got first more widely used in the 1960s and 1970s. Therefore power production was still a local or regional business for a long period after WW II. In Scandinavia and the Baltic countries, local energy production was reinforced by the installation of district heating plants in the 1950s and 1960s. In these countries, the construction of local plants was closely connected with post-war housing programmes. District heating was characterised by simple relations between local consumers and local producers connected by local heat grids. Thus, the energy companies owned all elements of the energy value chain, from production to the distribution of energy to the final consumers. Electric power and district heating was ‘broadcasted’ from central units to the individual customers. Cogeneration. The oil crisis in the 1970s called for energy savings to reduce the vulnerability that was created by the dependency on fossil fuels. One of the policy implications was the decision to encourage the development of a more efficient use of energy, notably

Urban Energy Generation and the Role of Cities Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

combined heat and power generation. The combination of heat and power generation was a first step into the new complexity of interdependencies between different kinds of energy production as well as multilevel connections of energy companies, since the CHPs were connected, on one hand, with the local heat grid and, on the other hand, with a local electricity grid, which was further connected with the national grid. Liberalisation. In 1996, the EU launched the electricity market directive aiming at the liberalisation of electricity production [6]. Two years later, the electricity directive was followed by a corresponding directive on the liberalisation of the gas market. The principle used for the liberalisation of the electricity and gas supply industries was that generation and supply are subject to competition, whereas the grid activities – transmission and distribution – remain monopolies that are subject to regulation. The cogeneration of district heat (DH) and electricity requested a homogenisation of two principles of price calculation: the price of heat from DH plants, based upon the principle of cost-recovery of each single DH plant, and the price of electricity based on the market. Homogenisation of the two price principles was needed in order to avoid cross subsidies between heat and electricity sales – and the market principle was chosen as the common principle [7]. As a consequence, neither consumers nor distributors were any longer tied to their own power plants, thus, liberalisation implied that power plants no longer need be anchored in the local community, and nor should municipalities hold monopolies within certain geographical areas. From then on, they should compete for the customers and about the prices – not only at the local and national levels, but also up to the European level [8]. To be a player in the liberalised market is more demanding than holding a monopoly in the local market. Liberalisation was thus followed by several mergers of local energy companies, mergers of municipal plants with those of larger municipalities as well as takeovers by large private companies. As a result, energy companies tended to become fewer and larger and with ownerships that tended to loosen the ties with the local. Climate policy and smart grid. The introduction of climate policies in energy production called for further cooperation in this sector. According to Frías et al. (2009), the public goal of a sustainable electricity system is strived for by a number of national technology-specific support schemes in the member states ”for renewable-based electricity generation (RES-E) and co-generation of electricity and heat (CHP). This objective is a main driver of the growth of distributed generation – generators connected to the distribution network – to significant levels.” [9, p. 445]. In the climate-based energy policy, substitution of fossil fuels by renewable resources (RES) became a key issue. Since RES (e.g. wind and sun) are not steadily

available, a focus on the availability of resource supply became urgent, in order for one non-available resource to be timely substituted by another available resource. Further, storage of energy produced by available resources in periods of low demands became urgent. These challenges called for cooperation between different kinds of energy production and storage capacities and led to the development of the so-called ‘smart-grid’, i.e. systemic monitoring of several production units to find optimum capacities in a world of fluctuation of prices, energy resources and energy demand. Smart grid solutions have pronounced impact on the energy system. It is not just a system for optimisation of existing production, but also about the development of systems best suited for optimisation [10]. “Smart Grid may be characterised as an upgrade of 20th century power grids, which generally “broadcast” power from a few central generation nodes to a large number of users. Smart Grid will instead be capable of routing power in more optimal ways to respond to a wide range of conditions and to charge a premium to those that use energy during peak hours” [11, p. 9].

Fig. 1. Relations of a local CHP plant, located in the city, supplying the local heat grid. Energy production includes the use of RES available in the region and/or from international suppliers. The CHP plant is connected with an aggregator and so is an energy consuming plant in the region delivering surplus energy to district heating in the region

In the smart grid, competent operators are needed. This is the background for the formation of socalled ‘aggregators’ that act on the electricity market in the interest of small producers or consumers. Such an example is the Danish NESA Energy, representing about 200 power producers, many of which are CHP companies. Each of the partners is equipped with remote control units facilitating a central coordination and optimisation of the partners’ 500 generating units by NEAS. “The CHP plants plan their day-ahead

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

production considering both the electricity market and the district heating system. Over the course of the day they deliver different balancing services. They remove capacity, when there is a surplus. They offer NESA storage in hot water accumulation tanks and the district heating system. This storage facility has been further encouraged in district heating systems, allowing the district heating plant to maintain high levels of efficiency while decoupling their electricity and heat generation over certain time periods” [12]. The work of the aggregator illustrates the key issue of smart grid, remote monitoring of energy generation in the interest of the total system. As a consequence, the individual producer, including the local energy producer, sacrifices his autonomy for the benefits of being part of the ‘common good’. If sustainability is a goal, the aggregator thereby also has the key role of managing the ‘common good’ by favouring renewable energy in the system. Figure 1 shows how the local CHP is connected with a regional and international supplier of RES via the national and regional infrastructure. Within the borders of the municipality the CHP is connected with the local heat grid. Due to the production of electricity the CHP has chosen to be a member of an aggregator, made responsible for the optimal production of power. Also, the industrial CHPs are connected to the aggregator. While the heat is produced for the local heat grid, the electricity is distributed by the aggregator to the national (international) power grid. It is likely that local energy policy will turn into fulfilling obligations as defined by the larger system, rather than develop independently. This does however not imply that municipalities, cities or regions cannot advocate for their say in the system, by defining their rules. Also, the development of new systems and technologies has crucial implications for the overall system. For example, future low-energy buildings could completely remove the need for heating. This is opposing the approach that excess heat from industries, waste incineration and power stations may also be used, together with geothermal energy, large scale solar thermal energy and large-scale heat pumps to utilise excess wind energy for heating. In the first case, a district heating network may not be needed, while, in the latter case, a district heating network becomes essential [13]. 2.3. Local visions for self-sufficiency in the network reality Many cities today have energy production somehow included in their local strategies – directly or indirectly. A couple of ideas and brands around that have emerged, including ‘a productive city’, ‘a selfsufficient, independent, resilient city’, ‘a regenerative city, producing energy, recycling and reusing’, ‘a CO2-

neutral city (zero-city)’ or even cities with a circular (inclusive) metabolism. Many cities strive for such visions, also due to an expected positive impact on their economic development and a more efficient and sustainable use of resources or an increasing autonomy and economic resilience against negative effects of global economic crisis [14]. All concepts are related to the general idea of sustainable development. It is however doubtful if a city really can be sustainable in the meaning of selfsufficient, i.e. only dependent on its own resources. Barbosa et al. (2014) pointed this out by stating that “[s]ome studies advocate that to consider a city sustainable, it must be self-sufficient in terms of energy, materials, food and water […] Despite this, among some authors there is some criticism about the concept of self-sufficient cities […] They assert that sustainability is a desirable and attainable goal at the global scale, but do not agree that is achievable locally” [14]. Self-sufficiency (especially after a transition towards renewable energy sources) might be a more realistic vision at regional level. The point is, that cities (again) are not only consuming resources but also producing them by harvesting available local renewable resources and waste [4] as made explicit by the idea of ’urban mining’. Besides the ambition of a renewable energy supply, the aim of being independent from imported energy is fuelling the idea of selfsufficiency. For example in Estonia, the independency from foreign energy supply plays an important role for policy making and it is also one of the reasons for the extensive use of oil shales for electricity production, covering almost entirely the domestic demand [15]. Although this contributes to Estonia’s self-sufficiency, it is a very environmentally-harming way of energy generation. In that sense, the aim for self-sufficiency is in opposition to climate goals. The six PLEEC-cities also show that the ambition of providing sustainable energy in their case does not necessarily mean to invest in renewable energy generation within the municipality [16]. For example, the local energy supply company in Eskilstuna (EEM) has invested in solar cells and wind turbines in other areas in Sweden to increase the share of renewable energy in their portfolio [17]. However, the precondition for that is a reliable grid and distribution system, something which cities can hardly influence by themselves. 3. RESULTS 3.1. Local production in European medium sized cities As emphasised in the previous sections, the trend towards building large complex energy systems is not about replacing local with central energy

Urban Energy Generation and the Role of Cities Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

production. It is rather about combining local and central production and monitoring of energy systems, in which local production has importance. In the following we will review different energy supply technologies with special reference to their application in the studied case cities. Table 1 gives an overview of different kinds of collective/municipal production and

its application in the six cities. The six cities resemble medium-sized cities in various geographical and regional contexts. However, they are also typical for the European urban landscape, where more than half of the urban population lives in urban regions with less than 500,000 inhabitants [18].

Table 1. Collective/municipal energy generation in the PLEEC cities.

Energy supply technologies District heating and CHP District cooling

Eskilstuna (SE)

Tartu (EE)

Jyväskylä (FI)

Turku (FI)

× ×3

× ×1 ×

× ×4 ×

× ×

Ground source heat pumps Deep geothermal Solar (solar farms) Wind Biogas from waste

× × ×

× ×5 ×

Waste incineration Micro CHP

Stoke-onTrent (UK)

Santiago (ES)

×1

×1 ×

× ×2

×6

‘Surface energy‘ e.g. bicycle lanes 1

Implementation decided Closed down in 2010 3 Smaller district cooling grids for industries 4 Planned in Kangas area 5 Wind power park is planned to be built in the city area by 2016 6 Biogas micro-CHP using landfill gas (in operation as of spring 2015) 2

Fig. 2. The use of combined heat and power (CHP) and district heating (DH) in the EU member states.

District heating and CHP. District heating is a major contributor to local energy production, especially in the Nordic and Baltic Countries. In all the cities district heating is combined with electricity production in CHP plants, most of which are fuelled by biomass. Figure 2 gives an overview of district heating in EU member states. Two statistics [19,20] are combined, showing the share of CHP in the national electricity production on the one hand and the percentage of citizens serviced by DH on the other. The statistics reveal, that the use of DH varies substantially in the EU, and so does the contribution from CHP to national electricity production. Usually, CHP is driven by residential consumption of heat. But in the case of the Netherlands, with high consumption of heat in green houses and refineries, industrial heat processes have been the drivers for installing combined power production. Two different kinds of CHP seem to be at play, (1) the residential CHP driven by heat produced for residential purposes, and (2) the industrial CHP, that generates heat as surplus from industrial processes. Denmark and Latvia show high figures on DH and CHP as well, whereas Sweden and Estonia

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

show high rates of DH but modest shares of CHP, indicating potentials for further transformation of DH into CHP. Connolly et al. (2014) revealed that excess heat from industry is available all over Europe [21]. Only about 3% is used for district heating. This could also be an important element to a more sustainable energy supply for DH in cities like Tartu. The city’s CHP is fuelled by peat extracted from large inland areas with peat. Although peat is biological, it is not considered renewable. In Santiago’s recent Energy Efficiency Action Plan (‘Plan director de eficiencia energética y sostenibilidad’), the implementation of CHP and the use of biofuels are recommended. However, the city owns only small plants and no district heating system. In Turku, district heating is generated at the CHP plant in Naantali. Heat is generated from a variety of fuels: coal, refinery gas, waste, wood, biogas and oil. The combined heat and power production cuts fuel consumption by one-third [22, p. 136]. There will be changes in the energy generation solutions in the region when the Naantali power plant is replaced by a new multi-fuel power plant in 2017. The aim is to use domestic biofuel as much as possible. However, the use of biofuels augments daily hauls with biomass to the CHP plant, many of which are still located close to the city centre. In Eskilstuna a relocation of the plant is being considered in order to respond to (1) the need for a technical renewal of the 14year-old plant and (2) the need to reduce the heavy transport of wood chips into the city. Currently, the Eskilstuna CHP consumes 900,000 MWh biofuels (wood chips) per year, delivered by over 8,000 lorries per year. In the cold winters, about 80 lorries pass through the town each day. Former plans included a new CHP plant which would decrease the annual number of transports to the city to about 3,500 lorries, while 30-50% of the wood chips would be delivered by rail to the new plant, thus reducing the number of lorries by 2,800-4,600. However, the plans are currently (June 2015) halted. District cooling has been introduced as an energy efficient alternative to the traditional powerbased cooling systems. In Tartu, a district cooling system based on water from the Emajõgi River is going to start up in 2016. The major customers of the new system are situated in the city centre, characterised by high building density, business and shopping centres. In Turku, a district cooling system was inaugurated in 2000 [23]. Further, in 2009, the extraction of heat energy from household waste water by a heat pump was put into operation. The heat recovery takes place after the treatment process and before the water is discharged back into the sea. Prior to discharging the cooled water into the sea, it is used a second time to cool the water for Turku’s district cooling network. The heat pump plant replaces district

heat for about 12,000 residents of Turku, without any local air emissions [24]. Geothermal energy and ground source heat pumps. Energy from the underground can be generated from deep or near surface geothermal energy or ground source heat pumps. ‘Stoke-on-Trent has decided to start up England’s first fossil fuel free district heating plant, fuelled by deep geothermal energy from natural resources 2 km below the city, using remedies of old mines. Due to the lack of central heating in the city, the project is only for businesses and new housing area. The benefits of the project include the production up to 45GWh of heat energy annually, lowering heating costs for businesses by up to 10%, and saving approximately 10,000 tonnes of carbon dioxide annually. Consequently, new forms of urbanisation, e.g. densely built and located in proximity to the grid, as well as new forms of public-private partnerships are envisaged. However, heat sources just below the ground are more widely available for extraction with ground source heat pumps. Most of the case cities include them in their energy strategy. Heat pumps are also seen as sustainable alternative in sparsely built-up areas, where district heating is not feasible. If combined with other systems, such as solar cells, heat pumps are also relevant in new urban areas. An example is being developed in Skanssi, a new urban development area in Turku [23]. Due to high insulation and low temperature heat systems (floor heating), houses are suited for solar and geothermal energy and less attractive for traditional district heating, especially during the construction phase. A feasibility study from Denmark on a similar development (‘Vinge’) that compares a decentralised individual system, a semi-decentralised system and a centralised system (district heating), gives priority to a semi-decentralised system, based on heat pumps constructed for small clusters of houses, instead of individual heat pumps. If, in the future, a district heating system provides a better alternative, it would be feasible to connect to the clusters [25]. Solar energy includes power cells (PV) and heat panels. These devises are mushrooming on the roofs of individual households, and – like heat pumps – are seen as a complement to district heating. Like heat pumps, solar cells and panels are also relevant at larger scales. For example, one of the world’s largest reservoirs of warm water heated by solar panels has been established in the Danish town of Vojens (Fig. 3 & 4). The reservoir has a capacity of 200 mil litres of water, heated by 4,166 solar panels with a joint surface of 52,500 m2. The reservoir was established in a former gravel pit. The solar panels are added to 17,500 m2 panels that are already established, extending the total surface up to 70,000 m2. The system is going to supply energy for 2,000 households in the city [27]. The Danish Energy Agency projects that solar heat will

Urban Energy Generation and the Role of Cities Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

cover 4% (6,000 TJ) of the energy supply in district heating in Denmark by 2020 [28].

Fig. 3. Visualisation of the Vojens Solar District Heating project when completed [26].

Fig. 4. Local plan for Vojens District Heating plant. Area I: DH-plant; Area II: Solar panels; Area III: Warm water reservoir. The total area of the district heating plant - signified by the dotted line – is 33.5 ha. The volume of the warm water reservoir – area III – is 225.000 m3. The DHP is situated in the industrial zone of the town adjacent to industrial buildings south of the area and residential housing east to the area [26].

Wind and hydropower are tightly anchored to suitable sites. Also, they are costly. Municipalities usually enter into wind and hydro production only as shareholders or in cooperation with other municipalities. In 1998, the Hyötytuuli wind power production company was founded by several major Finnish energy companies, including Turku Energia. The share of wind power will increase to 10% in Turku

in 2020. In 2003, Turku Energia and two other energy companies bought “Eastern Norge Svartisen”, a Norwegian hydro power plant. Also, Eskilstuna Energy & Environment (EEM) has invested in solar cells, hydro and wind turbines, yet with only minor shares. Energy from waste. A public service run by many cities is the handling of waste. Several cities use waste in incineration and biogas production. EEM has set up a production of biogas from waste. The production takes place at the central wastewater treatment plant. In the water treatment process, biogas has been a by-product since the 1960s. Formerly, biogas was used for electricity production. Today, it is used as fuel for busses and municipal vehicles and has also a branding value. Waste incineration is one of the energy sources for CHP plants. Usually waste incineration is organised in huge CHP plants run by private companies or by a cooperation of municipalities. However, if not available locally, waste may be exported. This is what the city of Turku does. On average, 8 hauls per day are shipped to Estonia every day, to be incinerated at Eesti Energia’s new incineration plant from 2013. In 2010 Turku’s own incineration plant was laid down, and the city started to export the waste to Sweden and since 2013 to Estonia. According to the operations manager at the Turku region waste management company, Patrik Jalonen, emissions from the transport of waste are notably lower than emissions from its treatment. The top priority on the issue of municipal waste is to reduce the amount of waste produced and to encourage its re-use. Recycling is the third option and incineration only the fourth. A tender for waste treatment resulted, however, only in bids for the fourth prioritised category [29]. Small scale energy production: Micro CHP and ‘Surface energy’. Hydro power cells that function as a Micro CHP provide a tool for storing power that is for example produced by wind turbines. In the village of Vestenskov, Denmark, 32 households were provided with micro heat and power units as part of an international research and development project, KeePEMAlive, testing low temperature fuel cells for stationary power generation and combined heat power production. The Danish pilot project was organised jointly between the Municipality of Lolland, the regional energy company, Seas-NVE, and IRD fuel cells A/S, in cooperation with the Danish parliament, the national power distributor Energi.net and the national program for development and demonstration of energy technology, EUDP. From the consumer point of view it was a success. The bottleneck and key challenge for a competitive production is to further develop the durability and the price of the power cells [30]. The extensive land needs of solar energy generation turned the attention for potential production sites towards ’secondary’ locations, primarily focusing on building roofs. Another kind of surface currently

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

tested are roads and bicycle lanes. In the Netherlands, a consortium of research institutions, industry and government is developing products feasible for integration in the public infrastructure. The consortium acronymed ‘Solaroad’ has started a full-scale pilot project, integrating solar cells in bicycle lanes providing power for road lightning (www.solaroad.nl). All six PLEEC cities show commitments to local energy production. The variations in type of production show, that ‘local’ is not just about scale, but also about local uniqueness or deviations from other localities. The rationale of CHP has developed in the Nordic and Baltic countries; the use of industrial excess energy production has developed in countries characterised by energy consuming industries such as glass houses and refineries in the Netherlands; recent efforts in profiting from deep geothermal energy are related to countries that are endowed with suited geothermal energy resources, such as the UK; whereas in countries with relatively little heating demand (Spain), individual solutions dominate. These deviations show that there is no unique local energy solution. However, the PLEEC project also shows that the diversity of local solutions provides great opportunities to learn from each other. Just to mention a few: the extraction of energy from waste water in Turku and the construction of the world largest solar panels in Vojens, Denmark. As the national energy policies are an important driver for local energy solutions, we shall thus turn to this aspect for a brief overview in the casecity countries. 3.2. National frameworks for local action Local energy production is closely related with national regulatory frameworks. Investments in energy efficiency by house owners, private companies and municipalities are influenced by the national climate and energy agenda. However, local investments are not taking place until the market or economic incentives by the government make them profitable. In this section we will elaborate on the following national policies and framework conditions that influence local action in the PLEEC cities: - EU and National energy goals; - voluntary agreements and commitments; - economic incentives; - green certification; - knowledge diffusion and exchange; - national policy supporting (or depending on) local action. EU and national energy goals. National energy policy of EU member states is closely connected with the implementation of EU energy policies. This can be illustrated by the basic pillars in Spain’s energy policy, which closely follows the EU’s 20-20-20 objectives:

promotion of renewable energy, diversification of energy sources and energy efficiency. From these three policy strands, the development of renewable energy sources has high priority. Thus, in 2012 more than 27% of Spain’s power supply came from renewable sources, excluding large hydroelectric generators, as compared to about 13% in 2007 — one of the highest shares in the EU. However, the highly subsidised renewable energy sector has been the most affected by a major restructuring of the energy sectors in 2013, designed to tackle the huge tariff deficit in Spain, representing the difference between the real cost of electricity generation and what was paid by consumers [31]. The national energy policy in Finland rests on three pillars: Energy, Environment and Economy. It thus requires the combination of different aspects such as energy safety or the reduction of fossil fuels within an economic framework. In practice, the Finnish energy policy includes investments in renewables along with nuclear power. Preparations for the next National Energy Efficiency Agreement Scheme 2017-2020 have started. They mainly address the cities’ own activities and buildings. These are supplemented by strategies on how to encourage citizens and other actors in the city area to follow energy efficiency measures. The framework for local energy production in Tartu is set by the Estonian national energy policy [32]. Besides a general concern about climate issues, the Estonian energy policy is aiming at pressing political issues such as reducing dependency on imported resources and ensuring security of energy supply. A more decentralised regional energy production is taken as a means of improving the overall energy security as well as a better exploitation of local energy resources (wind, solar, biomass, earth heat). However, the interplay between national frameworks and municipal execution of climate measures is so closely connected that it is difficult to characterise the municipality as a simple executor of national policies. To a wide extent, initiatives are developed locally inspired by the generally increasing concern about the climate [17]. Voluntary agreements and commitments. In 1997, two years after joining the EU, the Finnish government introduced the so-called ‘voluntary energy efficiency agreements’ to integrate the most relevant partners to implement the EU regulations: municipalities, industry and commerce, the oil sector, hotels and restaurants, farms and the transport sector. The voluntary agreements include energy efficiency plans and audits; and the implementation is facilitated by subsidies and energy efficiency service provided by energy companies. While the national energy policy focuses on the implementation of EU energy policies, the municipal energy policy takes the implementation of national

Urban Energy Generation and the Role of Cities Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

energy policies as starting point. Thus, Jyväskylä has engaged in the National Energy Efficiency Agreement Scheme 2008-2016. By signing this policy scheme, Jyväskylä has entered a commitment of achieving 9% energy savings annually by 2016. The Climate programme, adopted by the City Council, includes 170 measures and the involvement of city decision makers, employees and citizens [33]. The Stoke-on-Trent City Council has empowered its capacity by joining a so-called Local Enterprise Partnership (LEP) with Staffordshire County Council. LEPs are supported by the government, but formed on a voluntary basis by local authorities and business representatives. They have been set up since 2011, partly to substitute tasks that were taken care of by the regional development agencies, which were dissolved in 2012. The Stoke-on-Trent & Staffordshire LEP has been a stepping stone for local energy policies in Stoke-on-Trent. In 2014, the network won a bid for energy efficiency funds from the central government for the first fossil fuel free district heating plant in England. Since 2009, at the European level, the EU’s initiative for sustainable local energy policies, called ‘Covenant of Mayors’, has supported over 6,000 municipalities to prepare Sustainable Energy Action Plans. Three of six PLEEC cities are signatories. Economic incentives and subsidies can play an important role for public and private investments. For instance, in 2000, EEM received about 25% of the costs from national subsidies for renewable electricity to transform the existing district heating plant into a CHP plant in Eskilstuna. The subsidies are not equally suitable for all kinds of renewables. Thus, EEM has invested in solar cells, hydro power and wind turbines, but only in minor shares. The Swedish subsidies are also available for private homeowners, encouraging them to invest in solar cells, which the state subsidises by up to 35% of the costs. Green Certification. Certification schemes are another way to encourage energy efficiency and the use of renewable energy. For example, the Swedish green certification system was launched in 2003, conveying a flow of financial means from energy consumers to producers. Producers of renewable electricity are rewarded with certificates that consumers of electricity are compelled to purchase. The consumers are the daily consumers as represented by energy distributing companies, as well as large industrial, single electricity consumers and consumers buying electricity from the Nordic energy grid. Every year, these consumers are assigned an obligatory quota of certificates for purchasing electricity from the renewable energy producers. For EEM the green power certification system generates an income of 35–70 million SEK annually. Knowledge dissemination and exchange. Besides economic incentives, the national climate and

energy policies often include promotional activities on various levels and targeted towards different stakeholders. In the Swedish cooperation programme for sustainable municipalities (“Uthållig kommun”) about 35 municipalities take part, including Eskilstuna. The national energy authority conveys knowledge, resources for cooperation and assistance for setting up networks. Especially, they address ambitious municipalities in order to develop and inform about advanced pilot projects. To enhance the efficiency of policy measures oriented towards the citizens and other decision-makers in the municipality, the city of Jyväskylä and the Finnish Innovation Fund Sitra launched a joint project, “Towards Resource Wisdom” in 2013. The purpose was to create duplicable models for ecologically resourcewise lifestyles in urban environments in cooperation with local residents, companies and organisations. National legislation provides the framework for local action. Besides the previous initiatives as subsidies or certification systems, other policies also define the scope of action and can support municipalities’ ambitions, but also hamper them. The 1999 Master Plan of Tartu included an energy development plan (DH, electricity) and assigned DH areas. In this respect, Tartu was ahead the national legislation, which enabled municipalities to establish special zones that make connection to DH compulsory first in 2003 with the implementation of the District Heating Act. The current Master Plan (2006) includes further areas in the DH system. In order to include these new areas, the city had to establish stricter regulations in DH zones, since the energy companies would otherwise refuse to expand their network due to its high costs. In other countries as Sweden such compulsory energy districts are not allowed. Spanish cities like Santiago face the limitation that energy planning is done by the provinces (i.e. Galicia), whereas local authorities are only implementing it. However, such a national policy is no guarantee that municipalities also implement it. From that perspective, the UK policies on energy, environment and climate are similarly relying on local action. This was emphasised by the UK Government White Paper 2006: Strong and prosperous communities. Fudge et al. (2015) highlighted that the focus of policy making in the UK lies on the leading role of local authorities in energy conservation, generation and efficiency [34]. Thus, ’place based’ – i.e. locally embedded – initiatives were given a prime position in the national Low Carbon Transition Plan, launched in 2009. The UK energy policy approaches the local household as well as local enterprises and local authorities. As an example, the UK Green Deal programme sets up a framework for assessment of the energy

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

performance in households followed by suggestions for technical and economic feasible improvements. The Green Deal can also be seen as an ‘economic incentive’ policy as described above, however, not being a direct subsidy but rather opening up for different financial support schemes, similar to those applied by ESCOs (Energy Service Companies). Repayments of the work done according to the Green Deal programme are added to the electricity bill. Thereby investments in energy efficiency are directly compensated by energy savings. Most initiatives are about energy savings in the households, but also initiatives about energy production, e.g. by solar cells and panels, are eligible [35]. Local authorities are asked to produce “positive strategies” to promote energy from renewable and low carbon sources. They should also identify opportunities for decentralised, renewable or low carbon energy supply systems and for co-locating potential heat customers and suppliers. The UK energy policy presupposes that local authorities and households are capable of handling projects. It has, however, been observed that the Green Deal programme is almost impossible to fit in the numerous needs of deprived households, which account for a high number in Stoke-on-Trent and other UK cities. It is less attractive for low-income households in privately rented homes, since they are unwilling to contract long-term debts that have an impact on their monthly income. Also, fragile households (the elderly, the very poor and the illiterate) are much less inclined to seek the Green Deal, because it is a difficult programme to understand, and their housing arrangements might be uncertain or short-termed. For all six PLEEC cities national energy policy is an important regulator of obligatory local actions but also a stimulator of local voluntary energy initiatives. In this national-local interplay, local institutional capacity, competencies and political commitment are crucial. 4. DISCUSSION 4.1. Consumption – production – transmission – distribution – regulation – calibration The basic types of activities in energy production may be summarised by the activities mentioned in the above heading. In modern energy production, former simple relations between consumption and production are now connected by an independent transmission and distribution allowing for competition between consumer and producer. Important drivers are the EU and national regulations and frameworks for energy production, distribution and consumption. The growing number of interdependencies has caused the need for calibration of activities, for example by aggregators and smart grids.

4.2. The local energy policy Local policies have to respond to the needs of superordinate policies that demand cross-cutting calibration of supply and demand as represented by the smart grid. On the other hand, these also provide new possibilities for cities and regions, such as the case of Eskilstuna’s investment in renewable energy outside their territory. Under these circumstances we consider the production of energy as local if produced locally (for local consumption) in private households (e.g. solar panels, solar cells, heat pumps) or in a local energy plant distributing energy via the local grid - no matter the ownership of the producer. Co-generation of electricity from local heat production, contributing to national consumption via a national power grid, is a byproduct contributing to the efficiency of the heat production, but is not considered as local electricity production. Local energy production is developing from broadcasting energy from a few local or regional producers to a much more complex situation characterised at least by three trends: a). Energy production techniques are mushrooming due to a diversification of techniques, resources and scales. However, diversification is also often developed within the specific local context, giving cities a key role. b). Apart from energy production tied to resource availability (e.g. wind and hydro) most of the energy production is becoming decentralised, whereas regulatory frameworks and policies as well as the development of new techniques are becoming more centralised in the hands of national governments, international governmental co-operation and national research institutions and energy companies. These two trends, decentralisation of production and centralisation of regulation, are part of the same overall trend towards a ‘networked energy production’, crowned in a few years by smart grids, or by the ‘energy internet’. Municipalities need to set their agendas within these systems and take active roles and responsibilities for their territories. c). Generally, downsizing fossil fuels from energy production causes a drive towards electricity based systems. In this system, energy storage is the bottleneck. Two kinds of storage solutions are being developed: technical and relational. Technical solutions are usually on the site of the producer, whereas the relational storage is established by connecting energy producers. 4.3. Implications for urban planning Different impacts on the city and urban planning are caused by these trends and techniques. Site dimension and location. New techniques require sites tailored for the technique. The solar panel

Urban Energy Generation and the Role of Cities Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

based district heating (DH) system in Vojens, Denmark, is a notable example (section 3.1). In several cases, old energy plants are moved from a central location in the city to more peripheral location in order to give room for extension (e.g. when DH is transformed into CHP). Traffic generation and logistics. The relocation of Eskilstuna’s CHP from the central part of the city to a logistic area 10 km east to the city was promoted by a wish for reducing the daily heavy lorry transport of wood chips in the centre of Eskilstuna as well as improving the logistics of regional fuel transport to the plant. Resource availability. The availability of resources causes diverse restrictions on the location of grids and plants. In Tartu, the presence of peat quarries in the region is an asset for the Tartu CHP. Even closer connected are the local DH grids and industries delivering excess heat from the production. Local DH grid tissues. Since the very beginning of DH, it has been common that investments in the DH plant and grid were decisively depending on dense grid facilitating dense housing areas developing stepwise in the so-called energy districts. Density is still preferable to the effectiveness of the DH system. However, the liberalisation of the energy market and the priorities given to individually established sustainable energy solutions have outpaced the criteria of density. This is the case of both Eskilstuna and Turku cities. Grid districts and clusters. A special challenge to common energy systems is energy saving. For instance, DH is only feasible if a minimum amount of heat is needed. The development of zero energy houses has caused a re-evaluation of DH. In the case of Vinge, Denmark, houses were not planned as zero-energy houses, but rather as low energy consumers. As an alternative to DH small clusters of water based heatpumps were chosen for the urban development. Public works. The idea of reusing waste has caused a turnaround for the municipal public works. Some kinds of reuse are bound to the site of the public works. This is the situation, when heat is extracted from wastewater by heat pumps as in city Turku. Solid waste, on the other hand, is usually transported to huge incinerators in the region or even abroad. Urban surfaces – road and roof. Urban environments are characterised by artificial surfaces suitable for multi-purpose use. Roofs and even facades on buildings are used for solar panels. Other optional surfaces are roads and bicycle lanes, as revealed by the Solaroad initiative in the Netherlands. City and village – questions on scale. The fact that we live in scattered as well as dense built up areas, calls for energy solutions suited for both. Connolly et al. (2014) recommend a combination of DH plants (CHP) in the cities and heat pumps in the scattered built-up rural areas and villages [21]. Along with heat pumps an

alternative may develop, if the micro heat and power units get mainstreamed. These micro units are especially suited for small settlements rather than large cities. 5. CONCLUSION The raison d’être of local energy production is space and proximity. Space is needed for solar panels, solar cells and heat pumps and proximity is needed for efficient transportation of heat. Other kinds of energy production, such as the production of electricity, are relatively independent of distance when produced in central power plants and transported in high voltages transmission grids. Electricity production by wind and water turbines is of course determined by the suitability for wind and hydropower. Besides the technical requirements, strategic and political requirements are greatly influencing how central and local energy production is combined. Thus, the strategic turn towards combined production of heat and electricity and vice versa, is decisive for producing electricity where heat is produced, for instance at district heating plants. Also, it is decisive for the production of heat in energy-intensive industries. Finally, local production may be chosen to enhance security of energy production, to develop energy technology as a local competence and job generator, or to enable local political steering. The interrelations between urban form and energy production are developing along with new technology. New forms of heating systems (related to electricity), decentralised and small scale energy production and efforts in energy efficiency widen their suitability for urban development. On the other hand, new requirements for energy saving will limit at the same time suitable locations. We set up a number of parameters to consider: the site, the traffic generation, logistics and availability of resources, the grid and heat pump clusters, public work dependencies, urban roofs and roads and the scale of village and city. All these parameters are relevant and need to be considered jointly with the urban parameters of energy consumption. 6. ACKNOWLEDGEMENTS The research was conducted in the frame of the project PLEEC (Planning for energy efficient cities), GA no. 314704, www.pleecproject.eu, funded by the European Commission’s 7th Framework Programme. REFERENCES [1] Kullman, M., Campillo, J., Dahlquist, E., Fertner, C., Giffinger, R., Große, J., Groth, N. B., Haindlmaier, G., Kunnasvirta, A., Strohmayer, F., Haselberger, J. (2016), Note: The

Niels Boje GROTH, Christian FERTNER, Juliane GROSSE Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 5-17 Planning for Resource Efficient Cities

PLEEC project – Planning for Energy efficient Cities, Journal of Settlements and Spatial Planning, Special issue no. 5, pp. 89-92. [2] Meijers, E. J., Romein, A., Stead, D., Groth, N. B., Fertner, C., Große, J. (2015), Thematic report on urban energy planning: Buildings, industry, transport and energy generation EU-FP7 project PLEEC, Deliverable 4.3. [3] Agudelo-Vera, C. M., Mels, A. R., Keesman, K. J., Rijnaarts, H. H. M. (2011), Resource management as a key factor for sustainable urban planning, Journal of Environmental Management, 92(10), pp. 2295–2303. [4] Leduc, W. R. W. A., Van Kann, F. M. G. (2013), Spatial planning based on urban energy harvesting toward productive urban regions, Journal of Cleaner Production, 39(0), pp. 180–190. [5] Rutherford, J., Coutard, O. (2014), Urban Energy Transitions: Places, Processes and Politics of Socio-technical Change, Urban Studies, 51(7), pp. 1353–1377. [6] European Commission (1996), Council Directive 96/92/EC of 19 December 1996 concerning common rules for the international market in electricity (the electricity market directive) European Commission, Brussels. [7] Grohnheit, P. E., Mortensen, B. O. G. (2003), Competition in the market for space heating. District heating as the infrastructure for competition among fuels and technologies, Energy Policy, 31, pp. 817–826. [8] Frederiksen, G. F. (2012), Liberaliseringen af den danske el Aarhus Universitet. Institut for Kultur og Samfund, Aarhus. [9] Frías, P., Gómez, T., Cossent, R., Rivier, J. (2009), Improvements in current European network regulation to facilitate the integration of distributed generation, Power Systems Computation Conference (PSCC) 2008, 31(9), pp. 445–451. [10] ForskEL, ELFORSK, EUDP & Innovationsfonden (2014), FUD til fremme af elsystemets effektivitet ForskEL, ELFORSK, EUDP og Innovationsfonden. [11] Gulich, O. (2010), Technological and Business Challenges of Smart Grids, . [12] COGEN Europe (2014), The role of aggregators in bringing district heating and electricity networks together: integrated supply maximising the value of energy assets The European Association for the promotion of Cogeneration, Brussels. [13] Lund, H., Möller, B., Mathiesen, B. V., Dyrelund, A. (2010), The role of district heating in future renewable energy systems, Energy, 35(3), pp. 1381–1390. [14] Barbosa, J. A., Braganca, L., Mateus, R. (2014), New approach addressing sustainability in urban areas using sustainable city models, International

Journal of Sustainable Building Technology and Urban Development, 5(4), pp. 297–305. [15] Rudi, U. (2010), The future of power generation in Estonia, International Journal of Global Energy Issues, 34(1), pp. 68–77. [16] Fertner, C., Groth, N. B., Große, J., Meijers, E. J., Romein, A., Fernandez Maldonado, A. M., Rocco, R., Read, S. (2015), Summary report on urban energy planning: Potentials and barriers in six European medium-sized cities EU-FP7 project PLEEC, Deliverable 4.4. [17] Groth, N. B., Große, J., Fertner, C. (2015), Urban energy planning in Eskilstuna EU-FP7 project PLEEC, Deliverable 4.2 (1). [18] Nordregio et al. (2005), ESPON 1.1.1: Potentials for polycentric development in Europe, Project report. Nordregio/ESPON Monitoring Committee, Stockholm/ Luxembourg. [19] European Commission (2013), EU Energy in Figures - Statistical Pocketbook 2013 Publications Office of the European Union, Luxembourg. [20] Euroheat & Power (2015), Statistics Overview 2013. [21] Connolly, D., Lund, H., Mathiesen, B. V., Werner, S., Möller, B., Persson, U., Boermans, T., Trier, D., Østergaard, P. A., Nielsen, S. (2014), Heat Roadmap Europe: Combining district heating with heat savings to decarbonise the EU energy system, Energy Policy, 65(0), pp. 475–489. [22] City of Turku (2012), Turun kaupunkiseudun rakennemalli 2035 [Turku Master Plan 2035]. [23] Fertner, C., Christensen, E. M., Große, J., Groth, N. B., Hietaranta, J. (2015), Urban energy planning in Turku EU-FP7 project PLEEC, Deliverable 4.2 (3). [24] Merisaari, M., Keski-Oja, E. (2009), One green step at a time. [25] Rambøll, TI & NIRAS (2013), Scenarier for Energi-Infrastruktur. Vinge og Copenhagen Cleantech Park ved Federikssund. [26] Haderslev Kommune (2014), Lokalplan 11-8 Tekniske anlæg og erhvervsomårde ved Tingvejen Vojens [Local Plan 11-8] Municipality of Haderslev. [27] Bindslev, J. C. (2014), Global solrekord på vej til Vojens, EnergiWatch. [28] Energistyrlesen (2014), Danmarks Energi- og Klimafremskrivning 2014 (Denmark’s energy and climateprojection) Danish Energy Agency, Copenhagen. [29] Lehtinen, T., Telvainen, A. (2014), Turku municipal waste is converted to energy in Estonia, Helsinki Times. [30] Grahl-Madsen, L. (2013), Final report for IRD A/S’s participation in the FCH JU project: KeePEMAlive. [31] Fernandez Maldonado, A. M. (2015), Urban energy planning in Santiago-de-Compostela EU-FP7 project PLEEC, Deliverable 4.2 (4).

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[32] Große, J., Groth, N. B., Fertner, C., Tamm, J., Alev, K. (2015), Urban energy planning in Tartu EU-FP7 project PLEEC, Deliverable 4.2 (2). [33] Read, S., Hietaranta, J. (2015), Urban energy planning in Jyväskylä EU-FP7 project PLEEC, Deliverable 4.2 (6). [34] Fudge, S., Peters, M., Woodman, B. (2015), Local authorities and energy governance in the UK: Negotiating sustainability between the micro and

macro policy terrain, Environmental Innovation and Societal Transitions, in press. [35] Rocco, R. (2016), Policy Frameworks for Energy Transition in England: Challenges in a former industrial city, Journal of Settlements and Spatial Planning, Special issue no. 5, pp. 41-52.

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Successful Development of Decentralised District Heating: Application of a Theoretical Framework Fransje L. HOOIMEIJER1, Hanneke PUTS2, Tara GEERDINK2 1 Delft University of Technology, Faculty of Architecture and the Built Environment, Department of Urbanism, Delft, THE NETHERLANDS 2 Netherlands Organisation for Applied Scientific Research (TNO), Department of Strategy and Policy for Environmental Planning, Delft, THE NETHERLANDS E-mail: F.L.Hooimeijer@tudelft.nl, hanneke.puts@tno.nl, tara.geerdink@tno.nl

K e y w o r d s: energy planning, district heating, decentralized energy, spatial arrangements, organic urban development

ABSTRACT

One of the most important goals for energy transition is to reduce CO2 by turning to renewable energy, such as solar and wind energy. However, the production of renewable energy is not always an integral part of the energy system. Instead, it may have a decentralized basis, even up to the household level. In the Netherlands, this decentralizing trend coincides with developments in/of spatial planning, in which case the government is retreating to stimulate private and business development. Thus, a new kind of arrangement is emerging in the Netherlands, the so-called organic urban development, in which bottom-up trends meet top-down developments. This paper looks into such organic arrangements, especially those designed for district heating, to get a better understanding of the relationship between the energy sector and spatial planning. The main question of this paper is: How and under what conditions can district heating get a more important role in local energy systems in the Dutch context? Based on an extensive literature study on the international best practices of bottom-up energy initiatives, and two theoretical concepts – institutional theory and technical entrepreneurship – we build a theoretical framework for the organic development of urban energy projects that is then applied in two Dutch cases: the municipal heating company of Rotterdam (top-down) and the privately-owned district heating in Lanxmeer, Culemborg (bottom-up). The results of the study comprise of a practical and scientific contribution. First is a useful framework that makes the iterative and complex character of urban development processes clear and shows how urban energy projects can be successful taken into this process. Second, the study identifies a new important tactic as part of institutional theory: utilization, which represents the linking of existing physical and governance conditions to new urban energy projects.

1. INTRODUCTION A trend towards more sustainable energy is emerging in response to climate change [8], [21]. New sources are particularly found in more locally generated renewable energy resulting from wind, solar, biomass, geothermal energy and residual heat. But the introduction of new renewable energy sources into the current energy grid triggers substantial challenges, such as the need for more flexibility of the current energy system and other financial and organizational demands

because existing revenue models do not fit the emerging local, decentralized forms of energy [14]. At the same time in the field of spatial planning and design, public services have been deregulated and a more proactive societal model based on self-organization steers political, administrative and social actors. This is called ‘organic urban development’ [1]. Responsibilities are redistributed and initiatives come from new actors, which cannot exist without a profound commitment and responsibility of citizens and businesses. This counts for urban development but

Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

also for the transition in the energy field where local, decentralized energy supply initiatives arise. Magnusson (2013) sees this European trend of liberal political economics not only as affecting spatial planning but also as the energy market that has gone through liberalization at the same time. He shows how this liberalization reduced the expansion of the urban heating network in the Swedish case of urban heating in Stockholm [18]. Huygen (2013) defines decentralized energy supply as initiatives that engage citizens and business operations to save, produce or market energy by themselves [14]. For the appropriate integration of these new forms of energy supply not only technological innovations are necessary, but also new and smarter energy infrastructures, new business models and financial incentives. Within the new political field around decentralized energy supply systems, new actors step in and current actors are forced to take on new roles. Traditional stakeholders have to work with unknown newcomers to achieve a successful business performance. Thus, bottom-up meets top-down. The transformations around decentralized energy provision create new arrangements that are shaped by: (1) technical and knowledge components; (2) organizational and financial tactics; (3) and spatial development conditions. Consequently, the current legislation needs to change, because it is designed for the traditional centrally organized energy market [14]. The energy use of the Netherlands consists for 5.6% (111 PJ) of the renewables of which half is residual heat. Out of the total energy demand in the Netherlands 40% (54 PJ) is heat. There are 7.7 million households of which 0.55 million are connected to district heating [4]. Sijmons et al. (2012) argue that heat in the Netherlands has the largest potential to raise the percentage of 5.6% to the renewable target of 14% in 2020 [22]. However, the implementation of district heating in existing cities is complex and the fact that it is more centralized than the individual heating systems makes it less flexible to apply [2]. This paper studies the emerging of new energy arrangements in relation to urban development. It begins by describing the generic features of the new arrangements in decentralized energy provision and then studies the decentralized district heating in particular. The difficulty of dealing with different policy areas such as energy, construction, mobility, spatial planning and the challenge of implementation makes these new arrangements fundamentally different from the traditional ones. The biggest challenges to district heating are the construction or expansion of the infrastructure; and connecting the supply to the demand in a smart way. An energy supply system connects different policy domains (energy domain, urban planning, construction sector), it integrates different types of energy (electricity, gas, heat), different energy sources

(both fossil and renewable) and different organizational modes (centralized versus decentralized). When it comes to (re)developing district heating networks, three components in the supply chain are essential: the supply side, the demand side, and the related energy infrastructure. The challenge of integrating these three components counts at three scales levels: building â&#x20AC;&#x201C; urban district â&#x20AC;&#x201C; urban region. At each level, other considerations and other technological solutions are making the energy transition possible. The choice for one or the other solution depends i.e. on the demand for heating (and cooling); the costs for development and implementation; and organizational and financial aspects. Heat consumers or end-users are located at the building scale. They can apply individual measures like insulation or solar panels, or link to the larger scale [2]. At the district scale, it is quite difficult to integrate new district heating networks because the subsurface is already used for other purposes such as car parks, subway systems and drinking water and other infrastructural networks [13]. At the regional scale, the network can be fed by industrial residual heat or geothermal energy [9]. Geothermal energy comes from heat extracted from shallow (less than 500 m below ground level), but also from (hotter) deeper strata. Residual heat comes from energy conversion, for example in the generation of electricity or as a by-product of a larger industrial production process. See Figure 1 which is a schematic illustration of the heat supply and demand chain, showing the relations in the field of geothermal energy as a future heat source for various end-users [2].

Fig. 1. Schematic illustration of the heat supply and demand chain, showing the relations in the field of geothermal energy as a future heat source for various end-users (ÂŠ TNO, TU Delft, 2012).

2. RESEARCH APPROACH The central question of this research is: How and under what conditions can district heating get a

Successful Development of Decentralised District Heating: Application of a Theoretical Framework Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

more important role in the energy supply system in the Netherlands? What does this mean for a business case?1 To answer it, we investigated a broad range of international new arrangements in decentralized energy supply or heat facilities and their relationship with spatial development conditions. This leads to the following three sub questions: a). What new sustainable arrangements between traditional and new stakeholders can be found in decentralized energy provision? b). What are the main features of these new arrangements in 1) technical and knowledge components, 2) organizational and financial tactics 3) and spatial development conditions? c). What financial incentives support these new arrangements? The aim of this study is to create a theoretical framework that would describe the organic development of urban energy projects to reach successful implementation of district heating. The investigation started with literature review into (inter) national cases of arrangements in local energy supply, to get a first conceptualization of how successful initiatives for local decentralized energy systems are created and which successful elements reoccur. These successful elements were used in combination with existing concepts of institutional theory and spatial development processes. The theoretical framework was tested on two successful Dutch cases: the municipal district heating network in Rotterdam (top-down) and the private district heating network in Lanxmeer, in Culemborg (bottom-up). The construction of the theoretical framework and the investigation of the two cases partly developed through previous research by TNO (2012 and 2013) [2], [8], literature study and interviews. Next to the cited references, the study was supported by either more sectoral oriented literature or literature that was studying other resources and distribution of energy [3], [5], [6], [18], [20], [23], [24]. The semi-structured interviews where held with entrepreneurs from Heineken, Woningcorporatie Brabant Wonen (housing cooperation), Brabants Water (water company), and professionals in the field of district heating and decentralized energy supply: Peter Bell, Municipality Pijnacker, Gijs de Man, chair foundation urban district heating; Michiel Rexwinkel, owner Greenchoice Energy Company; Wouter Verhoeven, Heat company Rotterdam; Astrid Madsen, Municipality Rotterdam – Programme Office Sustainability. 3. THEORETICAL FRAMEWORK: INSTITUTIONAL THEORY AND PRACTICE Institutional theory explores the ethics, values and behaviours of a particular domain and investigates

A business case is a documented argument intended to convince a decision maker to approve some kind of action.

how changes in this field occur, so it is useful to understand how new stakeholders in the field of energy supply collide with the existing, traditional field. Klein Woolthuis et al. (2013) have explained how institutions can be changed by entrepreneurs, and how that happens [16]. Garud and Karnøe (2003) have focused on the technical entrepreneur, describing the development of new technical products as a shared commitment of the stakeholders during the process, which they call ‘distributed agency’. In this process, stakeholders may change according to the steps taken in the development of the product [11]. This approach is particularly suitable for urban development because the city is also a technical product, the result of a complex process with existing and varying arrangements. However, current practice of urban development is dominated by socio-economic aspects and the city is not viewed as a technical product. The main reason is the conviction that technically everything is possible and every socioeconomic desire can be realized [12]. In the context of the current energy transition and urban renewal trends, the technical space of the city – the technosphere – is an important boundary condition that needs to be met. Entrepreneurs who set up smallscale energy projects perform as technical entrepreneurs, which can be seen as influential individuals or organizations [10], [11] that challenge old institutions and initiate new institutions [7]. Garud and Karnøe (2003) cite three conditions for the genesis of a new technology: (1) the steady accumulation of input into a technology development path, (2) the involvement of a wide range of actors and (3) the involvement of market processes [11]. The input is generated by the accumulation of knowledge, introduced through a variety of actors. Mutual learning is crucial and market processes also play a role later in the development process. Institutional entrepreneurs play an important role in sustainable urban development. Klein Woolthuis et al. (2013) identify six important tactics [16]: a). "Framing" – the development of a certain vision on the project; b). "Theorization" – legitimization of the project; c). "Collaboration" – integrating different interests and the establishment of co-creation; d). "Lobbying" – enabling implementation of the project within the institutional framework of legislation and government policy. e). "Negotiation" – brokering to new contractual forms. f). "Standardization" – fitting regulation. During the development of an urban or energy project these tactics are employed differently at every stage. They may change in scope, approach or effect and thus characterize the different phases in the (spatial) development of a decentralized energy supply system.

Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

In addition, institutional entrepreneurs also have to deal with the conditions set by urban development regulations. In the Netherlands, the former Ministry of Spatial Planning identifies four phases in the area development process by private sector parties (Figure 2).

Fig. 2. Area development process according to VROM [28].

The initiative phase is intended to assess if the area development is desirable or whether there are better alternatives, for which a vision and a first plan are prepared and approved. The feasibility phase is an intensive and

complex phase which can be divided into three subphases, each characterized by its own partial results: 1) the definition phase, to define the project and its administrative constraints; 2) the design stage, making a design that fits the outcomes of the definition phase; 3) the preparation phase, producing an implementation plan. These sub-phases are part of an iterative process, in which calculations and designs are done simultaneously. The implementation phase is focused on the allocation of responsibilities, organizing the (risk) management, legal aspects and streamlining stakeholders. The maintenance phase is the last phase after implementing the area development [28]. With the three theoretical concepts described above it is possible to define the technical and knowledge component [11], the organizational and financial tactics [16] and the spatial development conditions [28] of new arrangements in decentralized energy provision in the Netherlands. These concepts, together with the results of the success elements of a number of (inter)national projects in local, decentralized energy supply, are translated into the theoretical framework for the organic development of urban energy projects in Figure 3.

Fig. 3. Theoretical framework for the organic development of urban energy projects ÂŠTUDelft and TNO 2013.

The analysis first gave insight into the various phases of the development of a local, decentralized

energy supply: it starts with an initiative (phase 1), from which quickly an initial idea is created (phase 2).

This idea is that the development in an iterative process with various stakeholders improves the idea (version 2.0, 3.0 and so on, phase 3) and results in the implementation (phase 4). In addition, examination of the sample projects also yielded a picture of the role of technical and knowledge components [11], the organizational and financial tactics [16] per phase and the connection to the conditions set by spatial or area development. At each phase, the input of knowledge and participation of different actors are important and subjected to change. The tactics defined by Klein Woolthuis et al. (2013) are an expression of the behaviour or action(s) by the stakeholders in order to achieve the required "technical product" [16]. Finally, the development of decentralized energy projects shows very clear parallels with the current phases of area development. In the next paragraphs we explain the phases of the theoretical framework and the technical and knowledge components, organizational and financial tactics and the spatial development conditions. 3.1. Phase 1: Initiative Obviously, initiators play a crucial role in new arrangements. There is no definite profile of an initiator; it can actually be anyone who has mastered the tactics that make the development and implementation of an idea reality. Initiators ensure that a shared vision is established and that other actors are convinced and supportive to the project. Tactics would include framing, collaboration and theorization. Framing or vision development is important to energy transition because it implies organizing energy supply differently. To get people out of their comfort zone, they have to be convinced. In recent years, however, this has improved due to an increased awareness of the need for sustainable development. Energy companies play with this trend, increasingly emphasizing the "green" against the "price" issues in their publicity. Collaboration is indispensable to find partners to spread the idea. A relevant example is a 'bio-village’ in the municipality of Jühnde in Lower Saxony, Germany, producing electricity and heat from biomass. An interdisciplinary team of scientists from the University of Göttingen focused their research on the capacity of a community to become an energy supplier [15], [29]. The researchers considered Jühnde to have the right conditions, encouraging residents to create a local energy arrangement and act as initiators. Theorization to explain the legitimacy of the project can be done in general terms, such as the pursuit of sustainability or reducing costs, but usually has very specific and contextual motivations. For example, the beer brewer Heineken investigated the potential of geothermal energy mainly to protect its groundwater, an important component in

their beer production [2]. Heineken wanted to ensure that the groundwater remained of high quality and prevent contamination in case nearby company would start using geothermal energy. Heineken was interested in reducing CO2 emissions and hoped that geothermal energy would substantially contribute to its sustainability ambition. Unfortunately, since part of the business case was the selling of the residual heat to dwellings from a housing association, the potential of the geothermal source was not high enough to justify the investment. In Pijnacker, South Holland, a private entrepreneur drilled a geothermal well to heat glasshouses. The local municipality launched an energy vision with geothermal energy as an important accelerator, actively facilitating the initiative phase of the new arrangement. The extracted heat was initially used by a horticultural company and then passed on to several sport facilities. In short, the initiative phase may be motivated by a vision, a new technology, a new partnership between actors around a spatial or energy project, from a question or ambition in the market or even by scientific research. The promising character of an initiative is determined by commitment, distributed agency, and by the spatial context of the project [11]. Does this provide opportunities for development or are there other alternatives? 3.2. Phase 2: Idea In this phase, the original vision is translated into a more concrete idea and examined within the social, policy and physical contexts of the new arrangements, exploring its planning and legal preconditions. How does it fit in the existing policy objectives and what is needed to take the idea further? At this moment, the business case is built, seeking ways to reduce costs, for example by improving the performance or reducing the required investments. In Pijnacker the original the idea was quite modest: a single glasshouse company wanted to apply geothermal energy. Since this initiative fitted into the municipal objectives for the energy transition and sustainable development, the plan was scaled up by linking it to other heat consumers. It was crucial that the municipality took a leading position both in the initial and idea phase, supporting the participating companies through the planning procedures and other legal arrangements and taking away some financial risks. Two tactics are relevant in the second phase: deploying a lobby to form a group around the project (collaboration) and the legitimization of the initiative (theorization). To return to the example of Heineken, the fact that the potential heat of the planned geothermal source was not enough, it did not end the

Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

collaboration between Heineken and related stakeholders. They continued to explore energy options in their locality, Den Bosch, creating an association with other local businesses, which led to the ‘Bossche Energy Covenant’2. In Jühnde, this phase was successful because of both collaboration and theorization tactics. After several meetings and information sessions with the scientists, the idea of a bio village took form, and the villagers continued with the development of the project [29]. The feasibility of the idea in relation to a larger area development and spatial planning perspective is crucial; it needs to be linked to the spatial potential of the area such as the characteristics of the natural system, but also the socio-economic characteristics of the residents and the existing network (i.e. cables, pipes, roads, tunnels, water, buildings). This is crucial now that "greenfield" developments are rare, and urban renewal is the main strategy in urban development. In Jühnde, the feasibility analysis was already done by the researchers, who calculated how many houses were there, and how many farmers were needed to meet the biomass supply. In existing cities, however, this is much more complex, especially because the subsurface is already used for other purposes, so district heating networks cannot be built or expanded without a thorough study of the situation. To conclude, after the initiative phase, the idea will be tested on its potential and adapted to the implementation boundaries. Here, not only the technical / knowledge, financial / organizational aspects are involved, but also the spatial integration of interests where planning and other statutory conditions are shaping the idea. This last tactic can be called ‘utilization’. 3.3. Phase 3: Development The phase of development is characterized by an iterative process, in which the idea is further devised and positioned. This may initially be a short term development, but through new steps and input it can turn into a long-term development. “Lobbying" and "collaboration" tactics are active, supported by negotiation, to outline the contract or business case. Theorization also remains an important pillar for the further elaboration and implementation of the project, which is also checked to the boundary conditions of the following phase, while continuous adaptation and assessment takes place. The idea is renewed and improved and the arrangement - the combination of technical, knowledge, organizational, financial and environmental aspects - becomes more clear and concrete.

2 The Covenant’s mission is joining forces for sustainable and reliable energy supply in its locality. http://www.bosscheenergieconvenant.nl/ accessed January 2oth, 2016.

This iterative process is also typical in area development projects, in which the feasibility or utilization is achieved by successive designs proposals and further analysis of the constraints, ending up in integrated solution alternatives. The success lies in "distributed agency": each phase has its own particular combination of knowledge, skills, and actors; as the case of wind turbine launch in Denmark showed [11]. The idea was developed in cooperation with ownerusers, independent (R&D) test stations and in collaboration with planning actors, who were also able to change the conditions in the regulatory process, or to lobby. The development of wind turbine technology in the United States has been cited as a bad example [11], in which the process did not progress because there was little interaction between the numerous actors of the process. Developing a business case is the way to test the feasibility and affordability of the idea: it brings the dream close to reality. In order to 'act differently', a temporary instrument like subsidy may be necessary to allow breaking barriers. The business case of the Jühnde bio village is built on grants, loans, private contributions and revenue of the electricity that is produced. The total investment was of EUR 5.4 million, of which approximately 28% came from public funds of the Federal Ministry BMELV and Lower Saxony. For the production of electricity the biomass is bought from local farmers and it is sold to the national energy system. They produce twice as much than the residents need, so the revenue is 50% of the production. The residual heat from the power station is used for a new district heating network that connects 145 households, who paid EUR 1,500 each to be connected. The ‘owners’ save money on their energy bills. Another benefit that plays an important role in the success of this business case is the increased employment in the village [15], [29]. The villagers are happy and proud of the project because they do it themselves and thereby keep their money in the region. Local energy supply also plays a role at national scale, as it is better to be less dependent on other countries for energy. During the development phase the organizational and financial tactics of the new arrangement are negotiated and laid down in a contract. New forms of contracts have appeared, for instance the Energy Service Company (ESCO), which are local energy companies or Renewable Energy Cooperations (REScoops) [30]. These organizations are characterized by low cost organization, technical and financial plans, insurance and service contracts, transparency in the financial aspects, flexibility to pay variable dividends and to make it possible for local communities to benefit from the project the same way as the developer does [30]. Owning the project is critical for the involved participants, as in Jühnde, and will increase the carrying capacity and the success of the project. Other

characteristics of a cooperative tactic are knowledge about the stakeholder interests and frequent communication to increase the sense of involvement and ownership. Research on the costs and benefits of district heating found few information about concrete projects [17], but the literature shows that both the willingness to put in a long-term investment and the scale of the project crucially determine its success. The many examples reveal that bigger projects have high initial investment costs and decreasing costs on the long term. While smaller projects have lower initial investment costs, they have to deal with rising investment costs on the long term. 'Revolving funds' in the form of provincial funds may provide loans for investment in renewable sources [14], but local actors, municipalities and local companies may also invest in new arrangements. Local actors can contribute in various ways, for example by buying stakes in the project, investing in the initiative, through membership or voluntary contribution in offering expertise or labour. It remains crucial that the local community benefits from the project, by getting revenues of the energy production; decreasing energy costs; improving economic growth and job creation [11], [30]. 3.4. Phase 4: Implementation and usage The different alternatives of the idea are reviewed during the development phase and lead eventually to the selection of the most promising 'version', which would be taken to the phase of implementation and usage. In area development the former phase ends up in an implementation plan that is made operational during this phase with the allocation of responsibilities, risk management, legal aspects and an organization. The most promising version is not necessarily a new plan, but it can also be the expansion of an existing project. Important tactics at this phase are: utilization or the linking of the idea to the existing infrastructure and area characteristics; negotiation of the organizational or financial arrangement, including further development of the business case; and standardization, or integration of the idea within existing legislation or adapting laws and regulations. The 3rd and the 4th phase are closely linked in building the business case, include locals in the benefits, involve relevant actors (distributed agency) and proceed with the construction of the project. In urban development this is the stage where potential problems come to light. During the development of the idea (phase 3) potential risks are considered but not yet systematically dealt with. An important and difficult aspect of utilization is to provide detailed information about the technical conditions or the technosphere of

the city, especially implementing district heating as the subsurface is never unused [13]. The contract used to support the project often has a financial basis but is also the result of adapting to existing policy frameworks, the need for selforganization, or the sustainability goals. In the Netherlands, the policy framework for heat is described in the ‘Heat Act’, which regulates issues concerning heat supply to protect consumers. It includes a price regime and regulates transparency in costs and revenues of the energy companies3. Until 2012 it was an obligation to connect to district heating if it was close to the building site. As part of the new policy supporting "Bottom-up meets top-down" aiming at being flexible and stimulating the energy field, this was replaced by a ‘heat plan’ in which other local arrangements are possible. In an international context, the governance and policies in the UK, the Renewable Heat Incentive [6], and the feed-in system in Germany are interesting examples. The UK 2009 Renewable Energy Strategy recognizes barriers in raising the percentage of renewable energy and they are developing instruments to overcome them [6]. Germany is a good example of incentives measures because it responds to selforganization trends in urban development, by which more citizens are taking an active role in urban development and also in the transition towards renewable energy supply [29]. Thanks to advances in ICT, consumers can be smarter and more selective regarding energy issues [19]. When people start producing energy they consume differently, and decentralized district heating appeals to this trend. Even if infrastructure is a technical and complex system, groups of private persons can link into it as the Jühnde case shows for Germany. In the Netherlands, however, energy companies are not yet ready to support initiatives from the private realm, so the success of decentralized energy supply depends on a change in the perceived role of the energy companies and the regulations surrounding district heating. 4. APPLYING THE THEORETICAL FRAMEWORK The theoretical framework has been applied to two cases of district heating networks. The case in Rotterdam is representative of a top-down approach in which the municipality plays the primary role cooperating with private and public parties in the Heating Company Rotterdam. Lanxmeer (Culemborg) is an organic urban development where the residents play the leading role in developing and maintaining the district heating network. Both cases are described following the four phases of the theoretical framework, describing the conditions, tactics and instruments used to bring the idea to implementation.

https://www.acm.nl/nl/publicaties/publicatie/12479/ACM-stelttarieven-voor-nieuwe-Warmtewet-vast/ accessed Jan 2oth 2016.

Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

4.1. The Rotterdam case Rotterdam has an extensive district heating network built after WWII, which was expanded in the 1970s. Inspired by the Clinton Climate Initiative, the city of Rotterdam aimed for a more sustainable energy system, thus developing a vision that became the initiative phase. The idea was that the residual heat from the Port of Rotterdam could become an important source for the existing district heating network, ensuring the supply of affordable heat in the long term, a theorization tactic. To support the idea the municipality used a collaboration tactic, creating the socalled Climate Office in 2007 for the design and development of the new arrangement.

Fig. 4. The relationship between residual heat, transport, distribution and sale [27].

The idea phase included proposing a transport pipe (see figure 4) that would feed the port’s residual heat into the distribution network, to increase the capacity of the district heating network. The Climate Office used the ‘lobby’ tactic to generate enthusiasm for such sustainable urban heating network, organising frequent meetings with relevant stakeholders and potential partners, i.e. with potential suppliers of residual heat, contractors, pipeline operators and housing associations. The expansion of the existing heating network had to fit into the existing energy infrastructure district heating and had to be able to connect the enormous amount of residual heat from the port, enough for heat supply to up to 50,000 households. 'Utilization', a crucial tactic of considering the conditions of an urban area – infrastructure, buildings, planning, natural systems – where a district heating network is implemented, was used after researching the optimal connection between the supply side, the demand side and the energy infrastructure. The development phase of this arrangement was particularly focused on the business case, whose success depended on three factors: the existing network, the players like the heat supplier E.ON and the distributors, the huge amount of residual heat from the port of Rotterdam, and the obligation (valid until 2012) of users to connect to the network. The latter was an existing planning regulation that made mandatory for

all new buildings close to a district heating network to connect to it, which guaranteed the clientele of the two incumbent heat distributors in Rotterdam, Nuon and Eneco. To improve collaboration, it was decided that all stakeholders should be part of the project, so the municipality, the residual heat supplier(s), the heat transporters, the distributor(s) and end-users in the form of the housing associations became partners in the Heating Company in 2010. However, preparing the business case it became clear that the construction and management of the new main transport line from the port to the city was too expensive. Therefore, the company was split into two: (1) the Heat Infra Company, responsible for the main transport of which the municipality owned 90%, the housing association(s) 5%, and the province of ZuidHolland 5%; and (2) the Heat Company Operations, responsible for the heat supply to the main transmission grid, owned by the municipality for 50% and E.ON 50%. Another import agreement was made with E.ON regarding the supply of residual heat from its power plants. The district heating network would become cost-effective at a critical level of delivering 100 MW of heat to end users, which will probably reached in 2022 when 50,000 households will be connected. E.ON will buy the surplus heat until that moment, so the new transport network would be cost-effective from the start (see Figure 5).

Fig. 5. Rotterdam business case after agreement with E.ON [27].

The second part of the business case is the agreement with the energy companies Eneco and Nuonfor the extension of the networks, which have the monopoly on the distribution of heat to end users. The implementation phase started with the establishment of the Heating Company in 2010. Negotiation was used for the operationalization of the company and the construction of the heat transport network between the heat supplier AVR and the port in 2013. As the regulation obliging to connect to district heating was lifted by 2012, better ways were sought to stimulate the extension of district heating networks

(standardization). Since then, the municipality offers developers a heating plan, which makes them aware about energy planning. Using residual heat plays an essential role in realizing the ambition of a CO2 neutral city. The Municipality of Rotterdam sees heat as a "no regret" solution because there will always be a demand for heat. The extension of the network needs to be stimulated and this is done by supporting the best conditions. The Climate Office has set up a Joint Declaration4 between several stakeholders, such as energy companies, housing corporations and governments, which states the ambition to stimulate district heating as much as possible. To realize this ambition a small organization has been created, which supports the implementation of the vision, sets the agenda, promotes and facilitates the extension of the network. 4.2. The EVA Lanxmeer case The EVA Lanxmeer is a new district located in the town of Culemborg, built between 1994 and 2009, and labelled as organic development because of its strong community participation. The Foundation E.V.A. - Ecological Centre for Education, Information and Advice - was founded in 1994 with the aim to contribute to the development of a sustainable and environmentally conscious society. At that time urban development was mainly done through top-down decision making, through large scale projects by project developers. The Foundation aimed to develop an ecological area for living and working with the ambition to make the experience and related knowledge accessible to others. It should function like a "living labâ&#x20AC;? for consumers, NGOs, education institutes, construction companies and governments. Klein Woolthuis et al. (2013) analysed the tactics used by the leading entrepreneurs in Lanxmeer to reach their goal, focusing on one part of the area development, the district heating network that used residual heat from the local water company Vitens. The study of the EVA Lanxmeer case also revealed the tactic of 'utilization', as one of the founding principles of the foundation is to optimally use existing (physical) networks and structures. The initiative phase for district heating in EVA Lanxmeer is part of the EVA concept (vision development). The actors that took the initiative are members of the EVA Foundation (collaboration) who developed the EVA concept and managed the development process. The first urban plans were convincing in reflecting on the idea for a sustainable and environmentally conscious urban development (theorization). The project team developed the energy 4http://www.rotterdam.nl/Clusters/Stadsontwikkeling/Document%20 2013/010Duurzaam/Warmtekoudevoorziening%202030-%20tambitieverklaring-met%20titeltje.pdf

plan together with energy supplier Nuon and chose for an autarchic system, an independent network which best suited to the philosophy of the EVA concept. During the idea phase the heat supply proposal was further developed through a feasibility study. An important partner was the local water company (then Water company Gelderland, later acquired by Vitens), which extracted water with a temperature of 12 degrees C, an ideal heat source for floor or wall heating. The idea to use this water for heating the new urban district also fitted well the policy of the water company Gelderland. Together they conducted a study on the heat supply for the dwellings using the water pumped by the water company. Tactics of utilization, theorization and collaboration were used to translate the idea into a concrete business case and technical operations. In the development phase the future residents and the municipality of Culemborg were informed and consulted. During two meetings it was explored whether there was support for a collective heat supply and if positive, how could the idea be improved. In the second meeting the residents agreed and decided that they should have the opportunity to participate in the finance of the project. These agreements were laid down into the Framework Heating supply Lanxmeer (2000), a contract between the Water company Gelderland, the City of Culemborg and the Residents Association Lanxmeer Eva (BEL) (collaboration). This is a negotiated framework that defines the ecological objectives together with the agreements regarding the development and operation of a community-based district heating. Vitens extracts drinking water with a pump that is now connected to a heating station that distributes the heat to the end-users in Lanxmeer. The implementation phase of the district heating depended on the phases of the urban development of the area, because the expansion of- and connection to- the district heating would also be in phases. The municipality set the obligation to connect to the network in the zoning plan, to ensure enough heat demand and protect the businesses case (standardization). The first group of houses were connected temporarily in 2002 and two years later the new water pumping station and heat station became operational. The governance structure changed drastically in 2008 when Vitens sold the district heating network to the Residents Association (BEL) that founded the Association of Development Operations Heating Network (collaboration). The aim of BEL was to investigate future scenarios, which led to a new arrangement: the heating company Thermo Bello. The business case of Thermo Bello shows the relation of the costs and revenues [25] (see Figure 6). The partners who bought the plant and depreciations are brought into the Foundation

Fransje L. HOOIMEIJER, Hanneke PUTS, Tara GEERDINK Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 19-30 Planning for Resource Efficient Cities

Administration Office (Stichting Administratiekantoor, SAK). The stock were divided exclusively 25% for BEL and the businesses in the development and 75% was financed by the bank. The new energy company used a heat rate that is competitive with other market operators and is composed of two parts: a price for heat (GJ-price) and for standing charges (subscription fees). To stimulate energy saving as much as possible, they apply a low standing charge (â&#x201A;Ź 280) and a higher heat rate. The heat rates (GJ price) for business and private customers are the same and related to gas prices in the market. The average heat consumption is 20 GJ per year. So the residents became owner and users of the energy company like in JĂźhnde.

Fig. 6. Planned costs and revenues of Thermo Bello [29].

According to BEL, the new arrangement of the local energy company gives a lot of benefits because 1) the areaâ&#x20AC;&#x2122;s small scale offers the possibility of local energy; and 2) the prevalence of knowledge, including technical knowledge in the area. They state: "This part of the business plan is based on the proposition that residents are willing to engage in energy issues at the neighbourhood level during their free time, provided the tasks are clearly defined and well organized. If qualified, local residents are also professionals in their free time" [25]. The energy company also wanted to expand its operations into other activities. Unlike a conventional large-scale energy company, Thermo Bello can anticipate on the connection between production and consumption, which brings energetic and economic optimization. 5. CONCLUSION This study makes clear that successful arrangements in decentralized energy projects are developed following a stepwise and iterative process involving multiple actors, which is a standing procedure in the practice of area development. This conclusion is based on combined insights from different national and international examples and key concepts from institutional theory and policy areas, which led to the introduction of the framework for the organic development of urban energy projects. The framework includes three domains: the technical and knowledge components, organizational and financial tactics and the spatial development conditions. The technical and

knowledge components show that all actors involved bring their contribution to each iteration and go through a joint learning process whereby accumulating knowledge. This process runs through all phases of the theoretical model. Therefore, the active involvement of different actors at different stages of the planning process is essential for the successful development and moreover implementation of a project. The organizational and financial tactics represent necessary conditions for implementation within the existing policy, governance and social context, as well as how to achieve a viable business case. Stimulating legislation and start-up funding by the government seems necessary in the Netherlands, especially compared to policies in the neighbouring countries. In Germany and the UK the creation of fruitful conditions, instead of funding, stimulated entrepreneurship in the energy sector. The many examples from the literature study show that the financial arrangement may be achieved through multiple funding sources and is often characterized by co-ownership of energy consumers in the local energy project. The financial arrangement is therefore inextricably linked to the local organizational arrangement. The conditions set by spatial development are crucial in the construction or expansion of a district heating network. The necessary infrastructure must fit into the technosphere of the city which includes the already constructed infrastructure and other spatial issues. The significance of this step has led to the introduction of an additional tactic that could be added to the list of Klein Woolthuis et al. (2013): the utilization of the existing physical and organizational characteristics of the project location [16]. This tactic explores the potential of a specific site or urban area. This is also strongly connected to the business case as the construction of a district heating network is expensive and (spatially) complex. Moreover, it does not bring more financial benefits to the users than other forms of heat generation. Answering the second research question and gaining insight in the building blocks for successful business cases of decentralized energy projects turned out to be difficult because information on financial incentives for the development of decentralized urban heating networks was difficult to find. Apart from qualitative descriptions of the business cases, this investigation has yielded no hard figures on how business cases are built. It is generally suggested that incentive frameworks in legislation and regulations are necessary for feasible business cases. The two cases testing the proposed theoretical framework show that both the municipality and private enterprises are likely to succeed in developing and implementing a district heating project. In Rotterdam we find a strong municipal initiative that can build on the large scale network that was built in the post-war

era. Magnusson (2013) shows that in Stockholm the implementation of the urban heating network was part of the ‘spatial doctrine’ of building large new towns in the post-war era with comprehensive, integrated planning of public systems [18]. In Rotterdam this potential for utilization and the strong initiative from the municipality made the new arrangement successful. However it is not as part of organic urban development as the case of Lanxmeer which is really an example of small scale organic development with a successful implementation of a network. The success here lies in the distributed agency of innovation. It also takes an institutional entrepreneur to really accomplish this because you have to deal with the complex governance that is dispersed across multiple levels [3]. The main conditions for successful implementation of urban heat networks are: a strong initiative, an iterative development process, distributed agency and utilization. The proposed framework is useful to explain the process the organic development of urban energy projects and to support the development of decentralized district heating networks, so new similar projects can be successfully developed. It explains the mutual relationship between the technical and knowledge components, the organizational and financial tactics and the spatial development conditions and how they could be brought together in different arrangements. The framework has a generic character due to the fact that it aims at connecting the energy and area development domains. Especially for the energy domain this roadmap is helpful to guide them through the complex and wicked processes of urban development. REFERENCES [1] Boonstra, B. (2015), Planning Strategies in an Age of Active Citizenship: A Post-structuralist Agenda for Self-organization in Spatial Planning. PhD Series InPlanning, book 7, Utrecht. [2] Boxem, T., S. Emmert, F. L. Hooimeijer, A. Huygen, H. Puts, R. Vogel (2012), De Rol van aardwarmte (geothermie) als decentrale lokale warmtebron voor verschillende eindgebruikers in Nederland. Delft: TNO (TNO 2012 R11224). [3] Britton, J. and Woodman, B. (2014), Local Enterprise Partnerships and the low-carbon economy: Front runners, uncertainty and divergence. In: Local Economy, 29(6-7), pp. 617-634. [4] CBS (2015), StatLine: Hernieuwbare energie: verbruik naar energiebron, techniek en toepassing. CBS, Den Haag / Heerlen. [5] Clark, W. W. (2008), The green hydrogen paradigm shift: Energy generation for stations to vehicles. Utilities Policy 16, 117–129. [6] Connor, P.M. Xie, L., Lowes, R., Britton, J., Richardson, T. (2015), The development of renewable heating policy in the United Kingdom. In:

Renewable Energy Vol. 75, March 2015, Pages 733–744. [7] Dacin, M. T., Goodstein, J., Scott, W. R. (2002), Institutional theory and institutional change: Introduction to the special research forum. Academy of Management Journal 45, 45–56. [8] Donker, J. F., Huygen, A. E. H., Westerga, R. S. Weterings, R. A. P. M. (2015), Naar een toekomstbestendig energiesysteem voor Nederland: flexibiliteit met Waarde. TNO Delft (TNO 2015 11144). [9] *** (2009), EU RES Directive 2009/28/EC: “Geothermal energy’ is the energy stored in the form of heat beneath the surface of the solid earth”. Available at: http://eur-lex.europa.eu/legal-content/EN/ALL/? uri=CELEX:32009L0028. Last accessed: 8-11-2015 [10] Fligstein, N. (1997), Social skill and institutional theory. American Behavioral Scientist 40, 397–405. [11] Garud, R., Karnøe, P. (2003), Bricolage versus breakthrough: distributed and embedded agency in technology entrepreneurship. Research Policy 32, 277– 300. [12] Hooimeijer, F. L. (2014), The making of polder cities: a fine Dutch Tradition. Rotterdam: JapSam Publishers. [13] Hooimeijer, F. L., Maring, L. (2013), Ontwerpen met de Ondergrond. (Design with the subsurface), in: Stedebouw & Ruimtelijke Ordening 2013/6. [14] Huygen, A. E. H. (2013), Lokale energie voorzieningen. Openbaar bestuur, april 2013, 32-36. [15] Interdisziplinaren Zentrum für Nachhaltige Entwicklung der Universität Göttingen IZNE (2010), Bioenergiedörfer im Göttingerland. Kassel: IZNE. [16] Klein Woolthuis, R., Hooimeijer, F., Bossink, B., Mulder, G., Brouwer, J. (2013), Institutional entrepreneurship in sustainable urban development: Dutch successes as inspiration for transformation. Journal of Cleaner Production 50, 91– 100. [17] Lavrijssen, S., Huygen, A. (n.d.), De warmteconsument in de kou: een juridische en economische analyse van de positie van de warmteconsument. [18] Magnusson, D. (2013), District Heating in a Liberalized Energy Market: A New Order? Planning and Development in the Stockholm Region, 1978 – 2012. Linköping Studies in Arts and Science No. 576 The Department of Thematic Studies – Technology and Social Change: Linköping. [19] Rifkin, R. (2011), The Third Industrial Revolution: How Lateral Power Is Transforming Energy, the Economy, and the World. New York: Palgrave Macmillan Ltd. [20] SER Commissie Borging Energieakkoord (2014), Energieakkoord voor duurzame groei – voortgangsrapportage 2014. The Hague: SociaalEconomischeRaad. Available at: www.energieakkoord ser.nl/publicaties/voortgangsrap portage-2014.aspx.

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Last accessed: 8-11-2015. [21] SER (2013), Energieakkoord voor duurzame groei. The Hague: Sociaal-Economische Raad. Available at: https://www.ser.nl/nl/publicaties/overige/20102019/ 2013/energieakkoord-duurzame-groei.aspx. Last accessed: 8-11-2015. [22] Sijmons, D., Hugtenburg, J., Hoorn, A. Van. Fedded, F. (2014), Landscape and Energy Designing Transition. Rotterdam:nai010. [23] Schwencke, A.M. (2012) Energieke BottomUp in Lage Landen De Energietransitie van Onderaf Over Vrolijke energieke burgers Zon- en windcoöperaties Nieuwe nuts. Leiden: AS I-Search. [24] Teuteberg, F., Gómez, J.M., Schmehl, M., Eigner-Thiel, S., Ibendorf, J., Hesse, M., Geldermann, J. (2010), Development of an Information System for the Assessment of Different Bioenenergy Concepts Regarding Sustainable Development in: F. Teuteberg, J.M. Gómez (2010) Corporate Environmental Management Information

Systems: Advancements and Trends. New York: Hershey. [25] Thermo Bello (2009), Business plan Thermo Bello. www.thermobello.nl/organisatie Last accessed: 17-3-2014. [26] TNO and TU Delft (2013), Eindrapportage Geothermie Manifestatie. TNO Dellft (TNO 2013 R11763). [27] Verhoeven, W. (2013), Presentation on the Geothermal Manifestation dated 03/28/2013. [28] VROM et al. (2011), Reiswijzer marktpartijen in gebiedsontwikkeling. Den Haag: VROM. [29] Wüste, A., Schmuck, P. (2012), Bioenergy Villages and Regions in Germany: An Interview Study with Initiators of Communal Bioenergy Projects on the Success Factors for Restructuring the Energy Supply of the Community. Sustainability 4, 244–256. [30] Zomer, S. (n.d.), Report Best Practice: WP2. 3 REScoop 20-20-20. http://www.rescoop.eu/nl Last accessed 19-1-2016

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Beyond the Building – Understanding Building Renovations in Relation to Urban Energy Systems Javier CAMPILLO1, Iana VASSILEVA1, Erik DAHLQUIST1, Lukas LUNDSTRÖM1, Richard THYGHESEN1 1 Mälardalen University, School of Business, Society and

Engineering, Västerås, SWEDEN E-mail: javier.campillo@mdh.se, iana.vassileva@mdh.se, erik.dahlquist@mdh.se, lukas.lundstrom@kfast.se, richard.thygesen@gmail.com

K e y w o r d s: Sweden, ECMs, case studies, review, from building to city, energy system

ABSTRACT About 35% of Europe’s building stock is over 50 years old and consumes about 175 kWh/m2 for heating, between 3-5 times the amount required by the newly constructed buildings. Annually, between1 and 1.5% new buildings are built and only between 0.2 and 0.5% are removed, therefore the focus needs to be put on the renovation of the existing building stock. The implementation of energy conservation measures (ECMs) in the residential sector becomes a very important strategy to meet the EU´s 20% energy consumption reduction of the 20-20-20 goals. The main challenge, however, is to determine which of the ECMs strategies are the best to provide not just with the best energy consumption reduction, but also with the best environmental impact and economic benefits. This paper addresses this issue and analyses the impact of different ECMs by focusing not only on the buildings themselves, but on the energy supply network and the overall energy system as a whole. To achieve this, we review five case studies in Sweden that use different ECMs as well as other alternatives, such as: distributed generation (DG) and energy storage. Results suggest that although there is no standard protocol that would fit all renovation projects, the existing methodologies fall short to provide the best overall impact on the energy system and that a broader analysis of the local conditions should be carried out before performing large building renovation projects.

INTRODUCTION

The buildings sector in Europe is responsible for about 40% of the final energy consumption and 36% of the EU’s total CO2 emissions [1]. This corresponds to the annual unit consumption per m2 for buildings of 220 kWh/m2 in 2009, with a large gap between residential (200 kWh/m2) and non-residential (300 kWh/m2) use. One critical issue is that about 35% of EUs buildings are over 50 years old and require an average of 175 kWh annually for heating alone [2]. In contrast, new buildings only require between 35 and 58 kWh/m2 [1]. The construction of new buildings represents between 1-1.5% of the building stock while removed buildings represent only about 0.2-0.5%. Assuming that this trend will continue, the focus needs to be put on

renovation of existing buildings in order to achieve a substantial impact in terms of energy savings and greenhouse gases (GHG) reduction. Taking into account that the number of refurbishments accounts for about 2% of the housing stock per year, it is possible to estimate that around one million dwellings are refurbished every year. Adopting effective energy conservation measures (ECMs) in the residential buildings sector is an important strategy to meet one of the EU’s 20-20-20 goals: 20% energy consumption reduction. Mass adoption of this strategy could help reduce the use of non-renewable primary energy resources between 5% and 6% and reduce CO2 emissions by 5% [1]. Some of these ECMs are explained in more detail in section 2. Sweden has developed policy incentives to reduce energy use in buildings that have been in place

Javier CAMPILLO, Iana VASSILEVA, Erik DAHLQUIST, Lukas LUNDSTRÖM, Richard THYGHESEN Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 31-39 Planning for Resource Efficient Cities

since the mid-1970s. Sweden has adopted EUs 20-2020 goals for reducing 20% of the energy use in the residential sector by 2020, and by50% in2050 using the consumption levels in 2008 as a baseline [3], [4]. Out of the existing building stock in Sweden, a large share was built between the 1960s and the 1970s under the so called “Million Programme”, that had the main objective of reducing the existing housing shortage [5]. These buildings were built very fast and with low energy efficiency standards, compared with the existing ones today and represent almost 25% of the total number of multi-family buildings in Sweden [6]. Moreover, these buildings are between 45-55 years old and while they have received upgrades over time, most of them still fall far below today’s energy efficiency construction standards [7]. The challenge, however, is that in every city, including both in municipality owned and private enterprises, investments in renovations should provide the best profitability. It is therefore, critical to determine the best way to use these investments, so that it also provides the highest impact on energy efficiency. When performing building upgrades, particularly those that involve renovating large areas of a city, it should consider all the aspects around the area in order to determine the best ECMs to implement. Since there is no general consensus about what is the best strategy to carry out when undertaking these renovation works, different methods are used. An extensive literature review was carried out in Prombo et al. [8], who performed a critical review of different energy-efficiency strategies and summarized the assessment methods applied in building retrofits, the authors concluded that a lot of the studied methods lack a proper life cycle approach. Additionally, B. Tan et al (2015), carried out a comprehensive analysis of different ECMs and developed a mixed integer programming algorithm to select the best combination to maximize the financial savings and minimize environment [9]. Similarly Mata et al, developed a bottom-up methodology to assess energy efficiency and carbon dioxide (CO2) mitigation strategies in the existing building stock and successfully validated their method in 1400 buildings in Sweden [10]. The work presented in Campos et al. [11] takes a slightly different approach, where the building’s consumption is modelled to estimate de energy performance after adopting the best combination of different ECMs, that are obtained from an analytic hierarchy process. According to Campos et al (2010), between 15-30% overall energy savings were obtained by using this method as compared to others [11]. Most of these methodologies aim at selecting the best renovation strategy that would improve the energy performance of each building as a single entity or as the entire building stock. However, other issues have to be taken into account, for instance, the impact

of these renovations on the energy supply system [7], [12], the indoor thermal and air quality [13], and the social issues between tenants and landlords [14],among others. Furthermore, while the use of district heating networks (DH) adds more complexity to the energy supply network, it provides with a large potential for using renewable sources (e.g. biomass, waste, etc.) for heating. However, the increased adoption of ECMs and the construction of low-energy buildings affects the cost-effectiveness of traditional DH-systems [15]. Additionally, the existing building code in Sweden, allows for installing solar PV panels and heat pumps when performing renovations. These modifications, when adopted at a large scale, can positively benefit renewable energy usage in the energy mix, especially, when installed together [16]. The benefits can be extended even further when energy storage is included to maximize the self consumption of solar electricity [17] while also minimizing the use of DH, especially in low-energy buildings. Mass adoption of solar PV systems together with other distributed generation (DG) units (e.g. micro CHP) also provide with a good technical and economical alternative, under the right circumstances, to increase the use of renewable energy sources in local distribution grids and help reduce distribution losses by providing energy closer to the consumption loads, while also increasing demand response and provide with additional load balancing support [18]. Nevertheless, large DG penetration requires the adoption of smart power flow management in order to maximize efficiency and renewable energy use, without compromising network reliability and production costs. This will also play a critical role with the upcoming penetration of electric vehicles (EVs) in the network, that could increase the nightly peak power consumption in densely populated residential areas and therefore, have a high impact on urban power distribution systems [19]. The purpose of this paper is to present different ECMs and evaluate their impact not only on the buildings themselves, but also on the energy supply network and the overall energy system as a whole in Sweden. Other alternatives, such as distributed generation (DG) and energy storage are looked into as well, in order to provide a critical view on conventional methods for selecting ECMs in renovation processes, so that policy makers and city planners should have a broader perspective, to make better decisions when selecting technologies for performing the renovation of areas of a city, not just in Sweden but also in other European mid-sized cities. The paper is organized as follows: in section 2, the theoretical background for different technologies and ECMs is presented, as well as the methodology used to evaluate them. Section 3 outlines the results of

Beyond the Building – Understanding Building Renovations in Relation to Urban Energy Systems Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 31-39 Planning for Resource Efficient Cities

five case studies where several of the ECMs and technologies presented in section 2 have been analyzed and it summarizes their impact on buildings and on the energy supply system. Finally, section 4 summarizes the most relevant results and presents the conclusions. 2.

THEORY AND METHODS

In this section, we make a brief description of different ECMs adopted in building renovation projects, as well as different technologies for improving energy efficiency and maximize renewable energy penetration. Additionally, we analyse five cases in which some of the ECMs have been implemented. In the first case study, the heat demand profiles and electricity-toheat factors of different ECMs simulated in two existing multi-family residential buildings in the Lagersberg district in Eskilstuna, Sweden, are evaluated from a system perspective approach, in order to determine the impact on efficiency and greenhouse gas emissions on the district heating system (DHS). In the second study, a building located in Västerås, Sweden, is modelled and simulated with a PV system, a ground sourced heat pump (GSHP) and two types of storage, electric and thermal, in order to determine which system provides the best PV selfconsumption and better economic benefits. The third case study evaluates a renovation process carried out in Allingsås, Sweden, where 16 buildings were renovated by adding 45-50 cm of insulation and replacing existing windows with argonfilled two-glass windows with a silver layer. The forth study evaluates the energy impact on a group of buildings of the “million programme” in Eskilstuna, Sweden, where energy advisors visited the households to explain in detail the different renovation techniques and technologies installed in the apartments, and how to use them in order to increase the efficiency of water and energy consumption. Finally, the fifth case study, evaluates the impact on the electricity consumption from mass adoption of GSHP in the region of Sollentuna in Sweden. These cases were selected based on the data available for the projects, technologies used, ECMs impact on the energy-supply network and the population in the cities where the projects were carried out, so that they could be compared with other midsized cities in Europe (with less than 500,000 inhabitants) [20]. 2.1.

Envelope insulation

Improving the building’s envelope insulation includes multiple measures that reduce the building’s heat loss factor for transmission, such as additional insulation of external walls and attic, improved glazing

and reduced thermal bridges. These kinds of measures are desirable from the supply point of view as the building becomes less dependent of the outdoor temperature, thus having a more even heat load (which requires less capacity on the supply side). The choice of glazing the windows also affects the amount of solar radiation reaching through, subsequently reaching balance for both heating and cooling. 2.2. Heat systems

and

energy

recovery

ventilation

Modern heat recovery ventilation (HRV) employs counter-flow heat exchangers that recover sensible heat from the outbound airflow. While energy recovery ventilation (ERV) systems also recover latent heat, most of the common systems use a rotary enthalpy wheel. HRV systems require a frost protection mechanism to prevent ice formation in the heat exchanger, thus losing in efficiency at lower outdoor temperatures, while ERV systems are able to work with much lower exhaust air temperatures without freezing. A heat pump can also be used to recover energy in the outbound airflow, to provide more flexible energy recovery with the trade-off of increased electricity consumption. 2.3. High-efficient lighting One of the most cost-effective ways to reduce energy consumption and CO2 emissions is to adopt existing efficient lighting technologies where savings of up to 50% can be obtained [21], [22]. Although there are several lighting technologies available for residential use, in terms of energy efficiency and future improvements, Lightemitting diode (LED) technology offers the greatest potential. In the last six years, the cost of LED lighting has dropped by 90 percent [23] and efficiencies of over 300 lm/W have already been achieved [24]. In comparison, the average efficiency of conventional fluorescent technologies, largely used in existing residential buildings, is of 80-100 lm/W, but more importantly, its lifespan oscillates between one-third and one-fifth of that of LEDs [25]. Furthermore, in a detailed Life-cycle assessment (LCA)comparison between LED lighting technology and conventional fluorescent lamps carried out by Principi and Fioretti (2014) it was found that LED lighting can reduce the environmental impact between 31-50% [26]. Additionally, the use of LED provides a 41 to 50% reduction in mercury emissions. While replacing conventional lighting fixtures with LEDs is a strongly recommended practice, natural lighting should also be used whenever possible, not just to reduce the energy requirements for artificial lighting, but also because natural daylight creates a more visually

stimulating and productive environment for building occupants. In Sweden, over a whole year, lighting is the largest user of domestic electricity in houses connected to the district heating network, with a contribution share of 26%, and the second largest in multi-dwelling apartments with a contribution share of 16% [27]. Improvements in this area can lead to significant energy consumption reduction, so, when performing large-area renovations, if possible, existing exterior street lighting should be replaced with LED technology. Street lighting commonly uses high-intensity discharge lamps, in particular high-pressure sodium (HPS) lamps, that offer higher operation costs, shorter lifetime, inferior colour rendering index (CRI) and offer less possibilities for smart operation control (e.g. brightness adjustment). 2.4. Building automation Building automation and control systems (BACS) use the principles of linear control theory to monitor and control the equipment that interact with the multiple subsystems involved in building operations. Some of these subsystems include HVAC, lighting, access control and lifts systems. BACS ensure safe and efficient building operations while reducing operation costs, improve building management and provide increases security for people and equipment [28]. Modern BACSs include a strong ICT integration and more recently, wireless sensors networks provide real-time mobile remote access, instant notifications, and online data access where realtime electricity price and weather forecast can be used for scheduling HVAC control in order to reduce operation costs [29]. One of the main challenges to successfully adopt BACS is the installation and communication standards among different vendors. A new European Standard, the EN15232 – “Energy performance of Buildings – Impact of Buildings Automation, Control and Building Management” was developed to tackle this issue. This standard specifies methods to assess the impact of (BACS) and Technical Building Management (TBM) functions on the energy performance of buildings and a method to define the minimum requirements of these functions [30]. 2.5. Solar photovoltaics Solar photovoltaic (PV) is a technology where light is converted directly into electricity and is considered an energy efficiency measure in Sweden. PV-systems are mainly used to reduce the need for purchased electricity in buildings and due to the Swedish electricity cost structure this is also wise from a profitability standpoint.

However, the reduction in purchased electricity usually only makes a small impact on the energy used for heat and domestic hot water. In Sweden, PV-systems are mainly used to reduce the electricity consumption of the building services (fans etc.) since by law, these systems cannot be used directly to lower the tenants’ household electricity demand. If storage systems are not used, all the excess power from the PV-systems has to be fed and sold back to the grid. 2.6. Heat pumps As PV-systems, heat pumps are also considered an ECM in Sweden. Heat pumps can be divided into different sub-categories depending on the low-grade heat source it uses. The most common subcategories are Air/air-, Air/water- and Water/waterheat pumps. Heat pumps transfer heat form a low temperature source to another with higher temperature. This is can be done by heating and compressing a refrigerant that has a low temperature boiling point. The heat from the refrigerant is then released to the heat sink, via a heat exchanger, when the refrigerant is condensed. Heat pumps are very efficient, and in Sweden, the common seasonal coefficient of performance (SCOP) for water/water heat pumps is of about 3. This means that for every kWh of electricity used by the heat pump, it supplies 3 kWh of heat energy. Additionally, the thermodynamic cycle can be inverted and use the same machine for cooling, which is not just useful for providing with the cooling requirements over summer, but if a GSHP is used, the heat directed to the ground provides a better heating performance over winter, thus serving as seasonal thermal storage. The major drawback of installing heat pumps is the high initial capital cost, especially if GSHPs are used, when the installation of deep boreholes is required. 2.7. Micro CHP CHP microturbines are small energy generators that range from 15 to 300 kWe and are based on the operation principle from open cycle gas turbines [31]. Microturbines in general offer different features, for instance: high-speed operation, high reliability, low maintenance and low NOx emissions [32]. Electric conversion efficiency is of around 30% for most systems, however, microturbines are usually coupled with a heat exchanger to use the exhaust energy for combined heat and power (CHP) applications. Conversion efficiencies above 80% are common using this scheme [33].

Additionally, while the most common fuel used for microturbines is natural gas, they accept most commercial fuels, both gaseous and liquid. Finally, the included power electronics onboard coupled with the electric generator, allows for off-grid and grid-tied operations. For all this, microturbines are the one of the most promising technology for distributed generation applications, especially when both power and heat are required. When a microturbine is connected to the main distribution grid, it can operate in thermal-priority mode or in electric priority mode. In the first one, electricity production is adjusted to control the heat output using measured water inlet, outlet or external temperature control signal. In the second mode, the electricity output is either controlled by the connected load, a fixed operation point or at a custom power production scheme. On the contrary, when a microturbine is operating in off-grid mode, it can only operate in electric-priority mode with load-following operation to supply with the required electric power and the heat output varies accordingly. 2.8. Energy storage Energy storage is one of the most important technologies to help increase the installation of distributed energy resources, especially those relying on renewable energy sources. Energy storage can be placed between the generation and the load, helping balance the discrepancies that exist between energy availability (e.g. sun power) and consumption, by storing energy when is highly available and supplying to the load when the energy production has stopped (e.g. overnight). Energy storage systems are usually described as thermal or electrical. The first one uses the sensible or latent heat of different material to provide with heating or cooling when required. The second one is more complex; the connection interface is electrical and it usually comprises a wide range of technologies, including kinetic storage (e.g. flywheels), electrochemical systems (e.g. flow-batteries) and potential energy (e.g. pump-up hydro) [34]. There is a large range of different technologies used for energy storage, for instance: Lithium-ion batteries, flywheels, flow batteries, superconducting material energy storage, compressed air, pump-up hydroelectric, hot and cold water storage, phase changing materials (PCM), among others. Unfortunately there is no one-size-fits-all technology and it greatly depends on the application; for instance, the environmental conditions (e.g. operating temperature, indoor or outdoor, etc), storage capacity (months, days, hours, minutes, seconds, milliseconds), instant power, cycling capability and last but not least, cost per kWh.

2.9. Appliance control &consumer behaviour When implementing building renovation and ECMs, the end-users’ engagement plays a very important role. The incorrect use of the implemented energy saving strategies might have a very low impact if they are used in an incorrect way. For most consumers energy is “invisible” and it is difficult for people to connect specific activities to energy consumption [35]. For instance, due to lack of information regarding efficiency, some consumers tend to ventilate their homes by opening the windows with low outdoor temperatures, instead of simply using the thermostats installed with their heating systems. Several studies have proven the efficacy of providing people with information and feedback regarding their consumption, achieving energy reductions of up to 20% in some cases [36], [37]. These savings are however, dependent on factors such as the consumers’ interest, the type of information and also the devices and the frequency used to provide it, among others. The lack of involvement of the consumers in the development process or the information provided in combination with other services based on the consumers’ characteristics and interests (options for energy storage; appliances control; security and remote monitoring) are also contributing to customers’ lack of interest in demand flexibility, as mentioned by Heiskanen and Matschoss (2011) [38]. Additionally, Swedish consumers are typically used to high indoor comfort, with overall little focus on environmental impact of energy consumption, explained by abundant and cheap renewable sources that suppress the consumers “guilt” when consuming high amounts of energy [39]. On the other hand, the implementation of large-scale ECM is typically followed by an increase in the monthly rent (which includes hot water and heating consumption) that end-users pay to landlords or the companies in charge of the buildings. This could potentially create conflicts between the two parties since landlords claim that end-users would be the main beneficiaries of the ECM, but the end-users see the investment only as an extra economic burden [14]. Furthermore, it is important to include the “rebound effect” in ECM implementations and energy saving estimations [40]: the increase in energy efficiency might be reduced if there is an overconsumption from the users’ side when they consider that they are paying too much for it. 3. RESULTS AND DISCUSSION 3.1. First case-study: ECMs impact on DH networks and primary energy usage In this study, Lundström and F. Wallin (2016) studied the heat demand profiles and electricity-to-heat

factors of different ECMs were simulated in two existing multi-family residential buildings in the Lagersberg district in Eskilstuna, Sweden [12]. The impact of these ECMs was evaluated from a system perspective approach, in order to determine the impact on efficiency and greenhouse gas emissions on the district heating system (DHS). In this study, seven ECMs were analysed: improving the building envelope, installing a heat recovery ventilation system, reduce household electricity, reduce domestic hot water, use exhaust air heat pumps, improve operational optimization and use thermal solar. Results obtained from the seven simulated ECMs, showed that if biomass fuels are not considered as residual (e.g. waste) and a primary energy (PE) factor of 1.1. is used, then, all the studied ECMs increase PE efficiency. However, if residual biomass fuels are used, as it is expected in most future DHS, reducing the electricity consumption and improving the buildings envelopes are the only ECMs favourable for improving the primary efficiency and reducing GHG in the DHS. 3.2. Second case-study: energy storage for maximizing self-consumption of PV systems This study was carried out by Thyghesen and Karlsson (2014) where a building located in the city of Västerås in central Sweden, was modelled and simulated. The building model included a 5.19 kWp PV system and a ground sourced heat pump (GSHP). Two type of storage systems were added and tested: the first one was a lead-acid based battery storage with 48 kWh capacity with a maximum depth-of-discharge (DoD) of 50%. The second was a hot water storage tank with an inner volume of 185 lts. This work concluded that the electric storage provided the highest level of PV self-consumption but also offered the highest levelized cost of electricity. The hot water tank offered a levelized cost of electricity that was less than half of the one obtained in the first case and a self-consumption level close to the one obtained using the electric storage system [41]. The reason for the latter was mainly the high capital cost for the electric storage system and its short lifespan. Moreover, the self-consumption of PV electricity per battery capacity starts declining after 10kWh, suggesting that when adding this type of storage, careful sizing has to be taken into consideration in order to minimize the system’s cost. 3.3. Third case-study: Renovation to passivestandard This case evaluates the renovation carried out in Allingsås, Sweden, where 16 buildings were renovated by adding 45-50 cm of insulation and

replacing the existing windows with argon-filled twoglass windows with a silver layer. Additionally, new heat recovery ventilation systems with a rated efficiency of 88% were installed. The full renovation cost per apartment was of approximately 120,000€ out of which 40000 €/apartment corresponded to improvements in the building envelope [42]. Additional ECMs included the installation of solar collectors for production of hot tap water, new heat exchangers on the buildings’ district heating connection point and the use of ceramic plates as outer surface coating. All these measures brought the buildings to near-zero passive building standards, with an average investment of 133-570 €/m2 and expected savings of 62 - 85%. 3.4. Fourth case-study: The perspective on ECMs adoption

consumer

The involvement of the consumer throughout the entire duration of the renovation activities was taken into account in the “million program” areas (characterized by high unemployment, consumer with people with foreign background, usually not speaking Swedish) in Eskilstuna, Sweden. The approach used in those areas, included overall sustainability issues targeting improvements in waste recycling, use of organic products for cooking, workshops where experts in different topics were invited to present and discuss with the consumers questions regarding the different topics (e.g. energy bills). Additional practices focused on finding ways to increase employment rates and possibility for development through increased understanding of different cultures and background with special focus on the children. Energy advisors working for the municipality visited the households to explain in detail the different renovation techniques and technologies installed in the apartments, and how to use them in order to increase the efficiency of water and energy consumption. The changes in electricity consumption in some of the apartments in the area, reached savings of up to 33%, reaching a total average saving of 1745 kWh/month for the 3-year period, as shown by Vassileva et al (2015) [43]. 3.5. Fifth case-study: GSHP impact on electricity distribution networks In this study carried out by Campillo et al (2012), 322 households located in Sollentuna, near Stockholm, were studied in order to evaluate the impact on the electricity consumption from installing GSHPs. Additionally, theimpact on electricity costs, taking into

account the pricing scheme used in Sollentuna was also studied. A comparative energy analysis was performed for four years: two years before and two years after the installation of the GSHPs [44]. This result concluded that GSHPs combined with dynamic pricing contracts achieved electricity consumption reductions up to 58% in detached houses where direct electric heating was used before. GSHP make it as the best option for these types of households; however, it is important to consider that high-peak electricity price conditions usually happen during cold winters, when GSHP offer their lowest efficiency and are required the most. For this, the adoption of smart thermostats and automated HVAC control is recommended. In multi-dwelling buildings located in areas with access to DHS, these systems are expected to maintain their predominant position for heating purposes. 4.

CONCLUSION

Implementing energy conservation measures (ECM) in the residential sector is one of the most effective alternatives to reach Europe’s 20% energy consumption reduction goal. The main challenge, however, is to determine what are the best ECM strategies to provide not just with the best energy consumption reduction, but also with the best environmental impact and economic benefits for the system as a whole and not just in the buildings where the ECMs are implemented. This paper presented a theoretical background of different ECMs that can be implemented when performing building renovations and reported five case studies where ECMs were evaluated from a different perspective to the conventional one, which usually considers the impact on the buildings themselves. From the results of the case studies, it is important to consider the characteristics of the existing energy networks that supply the buildings before undertaking large renovations. It can help city planners decide in which areas, the different ECMs would have a higher system impact on energy efficiency and greenhouse gases reduction. Additionally, it is important to consider additional measures, besides conventional building envelope improvements, such as building automation, distributed generation (e.g. solar thermal, PV, micro CHP etc.), efficient outdoor lighting and energy storage. From the consumers’ perspective, it is important to involve the end-users in the renovation strategies and technologies that will be implemented in their homes. Providing the consumers with information combining overall sustainability issues in order to increase their awareness and engagement while obtaining long-lasting effects can improve even further the estimated efficiency results.

ACKNOWLEDGEMENTS

The research was conducted in the frame of the project PLEEC (Planning for Energy Efficient Cities), GA no. 314704, www.pleecproject.eu, funded by the European Commission’s 7thFramework Programme. REFERENCES [1] European Commission (2015), Energy Efficiency in Buildings 2015. Available online at: http://ec.europa.eu/energy/en/topics/energyefficiency/buildings. [Accessed: 11-Nov-2015]. [2] Enerdata (2015), Energy Efficiency Indicators and Data. ODYSSEE-MURE. Available online at: http://www.indicators.odyssee-mure.eu/onlineindicators.html. [3] Regeringskansliet (2005), Swedish Environmental Targets (Svenska Miljömål). Available online at: http://www.regeringen.se/rattsdokument /proposition/2005/05/prop.-200405150-/ [4] Regeringskansliet (2009), An integrated climate and energy policy - Energy (En sammanhållen klimat- och energipolitik - Energi). Regeringskansliet. Available online at: http://www.regeringen.se/ rattsdokument/proposition/2009/03/prop.200809163 [5] Hall T., Vidén, S. (2005), The Million Homes Programme: a review of the great Swedish planning project, Planning Perspectives, vol. 20, no. 3, pp. 301– 328.http://dx.doi.org/10.1080/02665430500130233 [6] Liu, L., Rohdin, P., Moshfegh, B. (2015), Evaluating indoor environment of a retrofitted multifamily building with improved energy performance in Sweden, Energy and Buildings, vol. 102, pp. 32–44. http://dx.doi.org/10.1016/j.enbuild.2015.05.021 [7] Åberg M., Henning, D. (2001), Optimisation of a Swedish district heating system with reduced heat demand due to energy efficiency measures in residential buildings, Energy Policy, vol. 39, no. 12, pp. 7839–7852. http://dx.doi.org/10.1016/j.enpol. 2011.09.031 [8] Pombo, O., Rivela, B., Neila, J. (2015), The challenge of sustainable building renovation: assessment of current criteria and future outlook, Journal of Cleaner Production http://dx.doi.org /10.1016/j.jclepro.2015.06.137. [9] B. Tan, Y. Yavuz, E. N. Otay, Çamlıbel, E. (2015), Optimal selection of energy efficiency measures for energy sustainability of existing buildings, Computers & Operations Research. http://dx.doi.org /10.1016/j.cor.2015.01.013 [10] Mata, É., Kalagasidis, A. S., Johnsson, F. (2010), Retrofitting Measures for Energy Savings in the Swedish Residential Building Stock. Assessing Methodology, Thermal Performance of the Exterior Envelopes of Whole Buildings XI International Conference.

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[23] McMahon, J. (2015), The Bulb over Energy Sec. Ernest Moniz’s Head Is LED: 10 Billion for the World, Forbes,http://www.forbes.com/sites/jeffmcmahon/201 5/12/06/energy-sec-ernest-moniz-10-billion-leds-forthe-world/#6b91e6df6585. Accessed: 30-Nov-2015. [24] Cree News (2014), Cree First to Break 300 Lumens-Per-Watt Barrier, DURHAM, NC, http://www.cree.com/News-and-Events/CreeNews/Press-Releases/2014/March/300LPW-LEDbarrier, Accessed: 03-Mar-2014. [25] Thumann, A., Younger, W. J. (2008), Handbook of energy audits, 7th ed. Fairmont Press, Inc. [26] Principi, P., Fioretti, R. (2014), A comparative life cycle assessment of luminaires for general lighting for the office – compact fluorescent (CFL) vs Light Emitting Diode (LED) – a case study, Journal of Cleaner Production, vol. 83, pp. 96– 107,http://dx.doi.org/10.1016/j.jclepro.2014.07.031 [27] Zimmermann, J. P. (2009), End-use metering campaign in 400 households In Sweden Assessment of the Potential Electricity Savings, http://www.enertech. fr/pdf/54/consommations%20usages%20electrodomes tiques%20en%20Suede_2009.pdf. Accessed: 30-Nov2015. [28] Wang, S. (2009), Intelligent buildings and building automation. New York: Spon Press - Taylor & Francis, London and New York. [29] Campillo, J., Dahlquist, E., Späth, R. (2015), Smart Homes as Integrated Living Environments, Handbook of Clean Energy Systems, Wiley. pp. 1–13, http://dx.doi.org/10.1002/9781118991978.hces148. [30] Siemens (2012), Building automation – impact on energy efficiency - Application per EN 15232:2012 eu.bac product certification, http://www.sbt.rs/doc/ Building-automation---impact-on-energyefficiency_A6V10258635_hq-en.pdf. Accessed: 30Nov-2015. [31] do Nascimento, M. A. R., de Oliveira Rodrigues, L., dos Santos, E. C., Gomes, E. E. B., Dias, F. L. G., Velásques, E. I. G., Carrillo, R. A. M. (2013), Micro Gas Turbine Engine: A Review, in Progress in Gas Turbine Performance, 2013, pp. 107– 142. http://dx.doi.org/10.5772/2797. [32] R. D. Corporation (2001), Assessment of Distributed Generation Technology Applications, http://www.distributed-generation.com/Library/ Maine.pdf. Accessed: 30-Nov-2015. [33] Jan de Wit, M. N. (2012), Mini and Micro Generation. Danish Gas Technology Centre. http:// www.dgc.eu/sites/default/files/filarkiv/documents/C11 02_mini_micro_cogen.pdf. Accessed: 30-Nov-2015. [34] Roskilly, A. P., Taylor, P. C., Yan, J. (2015), Energy storage systems for a low carbon future – in need of an integrated approach, Applied Energy, vol. 137, pp. 463–466, http://dx.doi.org/10.1016/j.apene rgy.2014.11.025

[35] Hargreaves, T., Nye, M., Burgess, J. (2010), Making energy visible: A qualitative field study of how householders interact with feedback from smart energy monitors, Energy Policy, vol. 38, no. 10, pp. 6111–6119, http://dx.doi.org/10.1016/j.enpol. 2010.05. 068. [36] Vassileva, I., Odlare, M., Wallin, F., Dahlquist, E. (2012), The impact of consumers’ feedback preferences on domestic electricity consumption, Applied Energy, vol. 93, pp. 575–582, http://dx.doi.org/10.1016/j.apenergy.2011.12.067. [37] Darby, S. (2006), The Effectiveness of Feedback on Energy Consumption a Review for Defra of the Literature on Metering , Billing and Direct Displays, Environmental Change Institute University of Oxford, vol. 22, no. April, pp. 1–21, http://dx.doi.org/ 10.4236/ojee.2013.21002. [38] Heiskanen, E., Matschoss K. (2011), Exploring emerging customer needs for smart grid applications, IEEE PES Innovative Smart Grid Technologies Conference Europe, pp. 1–7, http://dx.doi.org/10.1109/ ISGTEurope.2011.6162655. [39] Throne‐Holst, H., Strandbakken, P., Stø, E. (2008), Identification of households’ barriers to energy saving solutions, Management of Environmental Quality: An International Journal, vol. 19, no. 1, pp. 54– 66. http://dx.doi.org/10.1108/14777830810840363

[40] Galvin, R. (2015), ‘Constant’ rebound effects in domestic heating: Developing a cross-sectional method, Ecological Economics, vol. 110, pp. 28–35, http://dx.doi.org/10.1016/j.ecolecon.2014.12.016 [41] Thygesen, R., Karlsson, B. (2014), Simulation and analysis of a solar assisted heat pump system with two different storage types for high levels of PV electricity self-consumption, Solar Energy, vol. 103, pp. 19–27, http://dx.doi.org/10.1016/j.solener.2014.02.013 [42] Jernelius, S., Karin, B. (2014), Economy at renovations including energy improvements. Ekonomi vid ombyggnader med energisatsningar. Slutrapport, Sweden.http://www.gardstensbostader.se/Global/Gård stensbostäder/Broschyrer/JUS_Slutrapport_tillagg_20 120214.pdf. Accessed: 20-Nov-2015 [43] Vassileva, I., Thygesen, R., Campillo, J., Schwede, S. (2015), From Goals to Action: The Efforts for Increasing Energy Efficiency and Integration of Renewable Sources in Eskilstuna, Sweden, Resources, vol. 4, no. 3, pp. 548–565, http://dx.doi.org/10.3390/resources4030548. [44] Campillo, J., Wallin, F., Vassileva, I., Dahlquist, E. (2012), Electricity demand impact from increased use of ground sourced heat pumps, in 2012 3rd IEEE PES Innovative Smart Grid Technologies Europe (ISGT Europe), 2012, pp. 1–7. http://dx.doi.org/10.1109/ISGTEurope.2012.6465876

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Policy Frameworks for Energy Transition in England: Challenges in a Former Industrial City Roberto ROCCO1 1

Delft University of Technology, Faculty of Architecture and the Built Environment, Department of Urbanism, Delft, THE NETHERLANDS E-mail: r.c.rocco@tudelft.nl

K e y w o r d s: energy transition, former industrial regions, fuel poverty, governance

ABSTRACT

This paper addresses the make-up and the limitations of a multi-level governance approach in tackling issues of fuel poverty and energy transition connected to poverty in England. Although the English planning framework offers unparalleled opportunities for innovative governance arrangements, and although much has been done in this area by national and local authorities, there are important limitations to how English cities are tackling fuel poverty and energy transition in a context of energy transition coupled with deprivation. The case analysed is an archetypical formerly industrial city dealing with socio-economic and spatial regeneration issues and transferable lessons can be learned. The questions addressed in this paper are: How does a former industrial city in Northwestern Europe deal with energy transition in the face of relatively high levels of deprivation? What is the governance of energy transition in the case and how does it help deprived citizens achieve energy security, if at all? This paper relies on extensive fieldwork research, interviews with several stakeholders and policy analysis carried out for the 7th Framework PLEEC Project (Planning for Energy Efficient Cities). Preliminary conclusions point at the failing of governance arrangements to include vulnerable actors and the inadequacy of solutions found for deprived or vulnerable households in the renting sector.

1. INTRODUCTION Energy transition is of particular significance to former industrial areas in Northern Europe and North America, as these places have developed their economies based on the intensive use of fossil fuels and have experienced early urbanization unconcerned with energy conservation. This is visible in the current built environment of many cities across the region, with dwellings that are not insulated and rely on old fashioned heating systems and wasteful transport systems. To make matters more complex, former industrial areas usually have a hard time attracting investment and experience high levels of unemployment and deprivation. In short, former industrial areas need to deal with their physical and social heritage and with large housing stocks built

before energy efficiency became a serious concern. This, combined with relatively high indices of deprivation, has led to an alarming deficit in the rights of vulnerable households to healthy and energy efficient housing. Stoke-on-Trent, a middle-sized cluster of formerly independent cities in the English Midlands, faces serious challenges concerning environmental, economic and social sustainability. As a former industrial hub affected by sharp industrial decline, Stoke-on-Trent faces challenges concerning its environment, its economic base and its capacity to generate inclusive prosperity. The poor state of part of the housing stock in Stoke, combined with high indices of deprivation, contributes to create serious issues of fuel poverty in the city. This paper introduces governance as a descriptive framework for energy efficiency and

Roberto ROCCO Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 41-52 Planning for Resource Efficient Cities

addresses the make-up and the limitations of a multilevel governance approach in tackling issues of fuel poverty and energy transition. It does so by a thorough description of the policy frameworks in which decisions are taken, unveiling the roles and expectations of different actors in relation to energy policies. Although the English planning framework offers unparalleled opportunities for innovative governance arrangements, and although Stoke-onTrent has done much in this area, there are important limitations to how policy is tackling fuel poverty and energy transition in a context of deprivation and reduced state intervention. Stoke-on-Trent is an archetypical formerly industrial city dealing with socioeconomic and spatial regeneration issues and transferable lessons can be learned. Although there are clear opportunities for the elaboration and implementation of measures that are realistic and acceptable by a range of stakeholders when implementing energy policies, there are also clear challenges concerning accountability and the representativeness of vulnerable groups. The questions addressed in this paper are: (1) How does a former industrial city in North-western Europe deal with energy transition in the face of relatively high levels of deprivation and reduced state intervention? (2) What is the governance of energy transition in the case and how does it help deliver fair and sustainable energy efficient measures? This paper relies on extensive research carried out for the EU research project PLEEC [1]. The methodology included semi-structured in-depth interviews with eight key stakeholders in June 2014. These included the head of the social housing association, two NGOs, the head of the local energy provider, and several representatives of the executive and legislative branches of the local council. It also included site visits, and two workshops organised by PLEEC partner cities. It was complemented by in-depth policy analysis and desk research. In the second section of this paper, we describe the case study and the ensuing energy challenges arising from its particular history. In the third section, a very short theoretical overview of energy governance is provided. The fourth section introduces the national policy frameworks in which actions for energy efficiency are taking place. In the following section, we discuss the local reaction to that national framework and how the problem of energy efficiency is being tackled at the local level. The ensuing section deepens the analysis of the local challenges concerning energy efficiency and the effect of the national frameworks and local policies. The ensuing sub-sections detail the issues concerning the housing sector in Stoke-on-Trent, the crucial sector in which the issues being discussed have a major impact, followed by general conclusions.

2. THE CONTEXT: A DEPRIVED FORMER INDUSTRIAL AREA STRUGGLES TO PUSH FORWARD It is commonly accepted that the Industrial Revolution in the UK started in Birmingham and the Black Country area of the West Midlands, where Stokeon-Trent is located. The Industrial Revolution has left a deep imprint in the landscape, the people and the urbanisation patterns of the area [2] and Stoke-onTrent is representative of the challenges issued from this heritage.

Fig. 1. Map of Stoke-on-Trent showing the six different towns composing the council. Adapted from Tourist Information Centre. http://www.visitstoke.co.uk/

Stoke-on-Trent is the largest city in Staffordshire County, one of the six counties forming the West Midlands. Stoke-on-Trent is set up in a linear conurbation stretching 19 km, with an area of 93 km2 and has a population of 271.000 in the city proper (2014). Together with Newcastle-under-Lyme and Kidsgrove, Stoke-on-Trent forms the Stoke-on-Trent Built-up Area. Despite its economic struggles, about 9,000 firms were based in the city in 2014 [3]. According to the British employment programme, the manufacturing sector in Stoke-onTrent is the eighth largest in the UK and continues to be the main source of employment in the city, accounting for around 28% of all jobs in the area â&#x20AC;&#x201C; almost double the national average [4]. The City of Stoke-on-Trent is the biggest single employer in the area with over 14,000 employees. The wider public sector employs more than 32,000 people.

Policy Frameworks for Energy Transition in England: Challenges in a former industrial city Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 41-52 Planning for Resource Efficient Cities

The conurbation is polycentric, having been formed by a federation of six separate towns and numerous villages in the early 20th century. The settlement from which the federated town took its name was Stoke-upon-Trent, where the administration and mainline railway station were located. After the union, the town of Hanley emerged as the primary commercial centre in the city. The four other towns that compose Stoke-on-Trent are Burslem, Tunstall, Longton and Fenton. This conurbation is unique. Its historical development was based on mining, ceramics industry and other manufacturing industries and was largely conditioned by the existence of coal, steel and clay in the area. This unique combination of natural resources allowed North Staffordshire to develop into the main centre of ceramics production in the UK in the 18th and 19th centuries and become an international name in ceramics production, with world-renowned establishments like Thomas Wolfe Works, Elektra Porcelain, Bell and the celebrated Wedgwood and countless others. Once, more than 70,000 people worked in the ceramics industry in North Staffs. Today, only about 7,000 people work in the industry in the area [3]. A close network of towns grew up around this industry, each with its own town hall, Victorian park, main church and other unique urban features. A railway line known as ‘The Loop’ used to interconnect the six towns. It was deactivated in 1964, because of reduced use, as the main hubs of employment in the region had moved elsewhere [5]. Very localized industries and services led to a situation where people lived and worked very closely together, so mobility tended to be within short distances and on foot. This has determined the character of the area as a close-knitted polycentric area where inhabitants generally identify more with their own town rather than with the federation of cities as a whole. “While people describe Stoke-on-Trent as a Federation of Six Towns, I prefer to describe it as a federation of 85 villages”, says a senior civil servant, as citizens seem to be very much attached to their own local communities. Urban growth and housing clearances between the two great wars pushed urban development further away. As the city expanded in the 20th century, development happened in the peripheries of the original towns, along regional main roads leading to Birmingham and Manchester for instance, quite separate from jobs in the service sector, which are to be found in the historical cores. Post-war development happened in the form of big housing estates (e.g. Bentilee and Meir), which paradoxically were not built for mass car ownership, originally relying on buses. Many of the more qualified jobs attract people who prefer living as far as Birmingham and face longer commuting times to get to Stoke.

Fig. 2. Bentilee is a housing estate in Stoke-on-Trent, situated between Hanley and Longton. Built in the 1950s, Bentilee was at that time one of the largest estates in Europe, with approximately 4.500 properties (source: Google Earth).

Fig. 3. Victorian terraced houses made of red bricks are a common feature in Stoke (source: "Stoke-on-Trent terrace housing" by Steven Birks. Licensed under CC BY-SA 2.0 via Commons - https://commons.wikimedia.org/)

Because of the structure of the mining and pottery industry in the region, and the meagre salaries paid by the ceramics industry, there were not a lot of middle class households and the social make-up of the six towns was mainly composed by poorly paid industrial workers who often faced work instability. They were mostly lodged in single-walled Victorian terraced houses. This has left a legacy of poor housing stock, “unfit for the 21st century”, which is difficult and expensive to bring to modern standards of energy efficiency [6]. Industrial decline started in the second half of the 20th century and was caused by the exhaustion of resources and loss of competitiveness of the local industry and has led to sharp economic decline. This has resulted in the appearance of areas of deprivation. Stoke-on-Trent is the 3rd most deprived local authority in the West Midlands (out of 30) and the 9th most deprived Unitary / Metropolitan authority area in England (out of 92). The city has almost one-third of its population residing in areas classified in the 10% most

Roberto ROCCO Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 41-52 Planning for Resource Efficient Cities

deprived in England, and one-in-six of its inhabitants living in areas in the worst 5% in terms of levels of Deprivation [7]. Inner neighbourhoods have become vulnerable to decline characterised by rapidly falling property values, population reduction and dereliction, which pushed middle class families to look for housing elsewhere. As a result, historic town centres lost their traditional role and their rich diversity. Densely builtup areas of Victorian terraced housing have become fragmented through redevelopment leading to the widespread loss of historical character [6]. Traditional Victorian terraced houses in private hands compose much of the housing stock in Stoke-on-Trent. Much of it has not been upgraded, leading to huge problems of energy efficiency and fuel poverty in the city. The region has acute problems related to its capacity to innovate and increase economic competitiveness. Below average levels of enterprise and declining business start-up levels combine with lower than average proportions of highly skilled residents. Local employers identify gaps in terms of both higherlevel skills and basic employability skills [8]. There are high concentrations of unemployment leading to the appearance of several areas of multiple deprivations in the area. In short: “North Staffordshire needs to define a new ‘purpose’ for itself in the changing economy and to increase the proportion of higher skilled, higher value jobs in the area” [9]. 3. GOVERNANCE FRAMEWORKS The effective integration of the three essential dimensions of sustainability, i.e. social, economic and environmental [10], into successful and fair planning processes requires a thorough understanding of the existing relationships between actors in specific arenas of decision-making and implementation. “The theory and practice of public administration is increasingly concerned with placing the citizen at the centre of policymakers’ considerations, not just as target, but also as agent. The aim is to develop policies and design services that respond to individuals’ needs and are relevant to their circumstances” [11]. To understand how these ideas operate in governance arrangements, we must acknowledge the normative and the descriptive dimensions of the concept. In the normative dimension of governance, the sectors of society (e.g. civil society, public sector and private sector) ought to be in ‘positive tension’ with each other. They simultaneously apply and suffer pressure from other sectors [12]. In doing so, they keep each other in check, providing mechanisms to guide each other’s actions and promote accountability. The underlying argument is that, ideally, actors across the governance spectrum are compelled to check each other and feel accountable to one another. The problem with the normative model is that it assumes the

presence of actors in decision-making networks and some sort of power balance. In practice, not all concerned actors are present or have a voice in decision-making networks and there are those whose views or wishes are not taken into account or are suppressed by others. But the point of the model is the dynamic relationship between different sectors, rather than the outcomes of this relationship. This normative dimension of the concept of governance contrasts with a descriptive or explicative dimension, in which these relationships must be described in relation to real practices. From this point of view, ‘governance’ is rather a way to describe relationships in place in decision-making arenas. In the explicative dimension, one must find out what are real relationships between actors and how they influence decision-making and implementation and, by contrasting the explicative dimension with the normative one, one may draw conclusions about the effectiveness and fairness of existing governance arrangements. Describing governance “in place” is necessary if planners and other agents of urban development wish to effectively steer the actions of a large number of actors towards desired outcomes and provide some measure of fairness in urban development. Governance systems manifest themselves in arrangements between formal and informal institutions. By formal institutions, we mean institutions that are formally regulated and recognised as legitimate and accountable by a large spectrum of actors in planning and implementation processes. The rule of law is a formal institution in itself [13], but it is also a meta institution that regulates all other formal institutions. The rule of law provides the framework for the public sector, the private sector, and the civil society to exist in certain forms and in certain relationships with each other. However, the recognition has grown that formal institutions are only part of what constitutes the architecture of social and political relationships. A large part of this architecture is made up of informal institutions, resulting from cultures, ingrained beliefs, norms and values [14]. These help us explain certain characteristics of legal systems, but also behaviours like patronage, nepotism, corruption and ingrained practices and traditions that are not acknowledged in legal systems. The understanding of this complex architecture of socio-political relationships implies the recognition that policy makers cannot always ‘enforce things by decree’, but must act in the context of governance networks where policy making implementation are in the hands of a large group of actors. In this context, policy makers’ main task is to ‘shape the attention’, help define priorities and courses of action, and influence the action of a multitude of actors located at different administrative levels and in

different networks of decision-making [15]. Moreover, as pointed out, actors are not necessarily embedded in institutional structures, but may be located in any formal and informal institutions. Governance based policy-making entails a multilevel dimension and a networked dimension. Multilevel governance ‘involves a large number of decision-making arenas, differentiated both along sectorial, administrative and territorial lines and interlinked in a non-hierarchical way’ [16]. In networked governance, policy making and implementation are ‘shared’ by politicians, experts, dedicated agencies, semi private and private companies, the public, non-governmental organizations (NGOs), and others that operate through a complex network of relationships that create policy and inform decisionmaking across levels, territories and mandates [15]. In summary, effective policy-making must take into account networks of actors distributed throughout different levels. This presupposes a policy-making style that seeks to promote cooperation among government levels and between public and private actors and the civil society, where there must be sustained coordination and coherence among a wide variety of actors with different purposes and objectives from all sectors of society [15]. Following this analytical framework, this paper describes the architecture of energy efficiency policymaking in the UK and tries to unveil the imbalances and gaps this architecture presents in addressing the challenges proper to former industrialised areas where social vulnerability is widespread. 4. THE ENERGY CHALLENGE AND HOW IT IS BEING MET: NATIONAL AND LOCAL POLICY FRAMEWORKS In this section, we describe the main policy frameworks in which decision-making for energy efficiency takes place. Here, the multi-level character of energy governance is highlighted. The UK has legally binding CO2 emissions reductions targets of 34% by 2020 and 80% by 2050. The main framework is the National Renewable Energy Action Plan (NREAP) [17], [18]. The 2009 Renewable Energy Directive sets a reduction target of 15% of the UK’s energy consumption from renewable sources by 2020. The plan sets out priorities to be pursued, which can be summarised as follows: a). Reduction of reliance on fossil fuels in order to ensure energy security, in face of the depletion of domestic reserves and growth in global energy demand. b). Growth of reliance on renewable energy sources should create opportunities for investment in new industries and new technologies.

c). There should be strong government action to help develop businesses in this area, in order to “put the UK at the forefront of new renewable technologies and skills”. d). The development of renewable energy sources, alongside nuclear power and the development of carbon capture and storage should enable the UK to “play its full part in international efforts to reduce the production of harmful greenhouse gases” [18]. ‘The Carbon Plan’ adopted in 2011 by the UK states that “if the country is to cut its greenhouse gas emissions by 80% by 2050, energy efficiency will have to increase across all sectors to the extent that energy use per capita is between a fifth and a half lower than it is today” [2]. The UK’s target for energy consumption reduction in 2020 was set at 18% reduction in final energy consumption, relative to the 2007 ‘business-asusual’ projection established by the EU. The ‘Mandate for Change’, the core planning policy for Stoke-on-Trent, illustrates the commitment of the Stoke-on-Trent City Council to contributing to carbon reduction targets, making fuel security one of its top priorities [19]. The Council is a registered participant in the central government’s Carbon Reduction Commitment Energy Efficiency Scheme (CRC EES). “The scheme is designed to improve energy efficiency and cut emissions in large public and private sector organisations. The CRC affects large public and private sector organisations across the UK, together responsible for around 10% of the UK’s greenhouse gas emissions. Participants include supermarkets, water companies, banks, local authorities and all central government departments” [20]. As a result, the city has completed a Carbon Management Plan, which establishes a CO2 emissions reduction target for facilities and services run by the city of 30% by 2015. These goals do not include overall reduction of CO2 emissions. The UK National Energy Efficiency Plan is a response to the EU Energy Efficiency Directive, which entered into force on December 2012. “This directive establishes a common framework of measures for the promotion of energy efficiency within the Union in order to ensure the achievement of the Union’s 2020 20% headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date” [21]. There is a myriad of actions and programmes enacted by the UK’s Central Government to improve energy efficiency [22]. Some programmes are further explained in the subsequent section and the impacts are discussed along the text. It is notable, however, that programmes targeted at business and industry, households and the public sector exist. From the programmes targeted at households, the ‘Green Deal’ is considered the most comprehensive. The Green Deal provides targeted information about

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potential energy efficiency to households through a twostage independent assessment. The first stage is based on the existing Energy Performance Certificate (EPC), which is mandatory on sale of a property. The second stage involves production of a more tailored report, based on actual occupancy information to identify the most cost effective measures. The Green Deal can support households to install energy efficiency measures, including: insulation (loft, cavity or solid wall); draught proofing; improved heating controls; double glazing; and renewable energy technologies (e.g. solar panels). The Green Deal is analysed in detail further. The programme is designed to help people make energy efficiency improvements to buildings by allowing them to pay the costs through their energy bills rather than upfront. The Green Deal has replaced other successful policies after the rise of the current conservative coalition to national government in 2010. It is seen by many as an attempt to finance energy efficiency policies, and to cut on government obligations towards citizens. Most important, the Green Deal is criticised for not catering for the needs of vulnerable and deprived households most in need of protection against fuel poverty. Alternatively, it is also seen as an innovative tool to promote energy efficiency through a novel approach in financing energy efficiency measures. For Iain Podmore, member of the Housing Enabling Team of the Council Housing Services, the Green Deal is a positive development that will enable households to finance much needed improvements. However, Podmore admits that the Green Deal is a “complicated tool, not easy to access”. For Podmore, it is best not to see the Green Deal as a product, but as a regulatory framework that enables households to carry out home improvements that are costly. For Podmore, the high costs of home improvements leading to energy efficiency are one of the main barriers for improvements in the housing stock of Stoke. “People want to be energy efficient, but often they can’t afford it”. As stated before, Stoke-on-Trent has 25,000 homes with single brick walls, which are difficult and costly to treat. Several interviewed stakeholders coincide that without extra grants, disadvantaged households would not be able to pay for single wall insulation, even with the help of Green Deal. Another complication pointed out by Podmore is that the Green Deal is quite expensive to access. A number of assessments must be completed before a household can apply for the programme and these assessments are costly. Once an assessment is completed and the necessary measures are listed, an installer will be appointed to provide the household with a detailed quote. If the quote is accepted, a finance plan will be agreed upon. Interested households are put off by the idea of paying so much for an assessment because

having the assessment completed does not mean measures can be paid for and implemented. The Green Deal operates effectively as a loan, but the loan is attached to the property, rather than to the individual contracting it. The interest rates can be anywhere between 7 and 9% of the amount lent. Interest rates can increase over the term of the Green Deal Plan, which means that presently it is cheaper to access alternative loans. Moreover, there is a large number of organizations involved in the process. They each provide different parts of the process, so it is difficult for customers to find a single organization that offers the service from start, when you first make contact, all the way through to the end product, which is to have the measures installed. Between 2007 and 2012, Stoke-on-Trent put together a community interest company that would manage retrofit programmes. Much work was done in easy to treat properties (loft insulation, cavity wall insulation, heating systems installation). The funding available then covered the full cost of works. The programme was quite successful, with over 11,000 measures installed into 9,000 homes. Now, most properties left to insulate are ‘hard to treat’ properties. They are much more expensive to insulate and they take much longer to complete. Podmore summarizes: “Governments are looking for ways to pass on costs to consumers, because obviously we are trying to reduce our obligations on energy suppliers, and we are trying to reduce our obligations on the grants that are offered. But unfortunately Green Deal, which is the only solution at the moment, is encountering a number of market failures that haven’t been addressed just yet”. For Podmore, “you’ve got that catch 22 situation, where the people who need energy efficiency measures the most are the least able to afford them”. 5. MUNICIPAL PLANNING FRAMEWORK IN RELATION TO SUSTAINABILITY AND ENERGY In this section, we continue to describe the multi-level governance architecture of energy efficiency policy in the UK, while describing how it interacts with the networked governance approach that is adopted at the local level. For Fudge et al. [23, p. 2], “local authorities have become more active players across a range of sustainability initiatives in the UK”. Despite drawbacks concerning the removal of performance targets by central government, the focus of policy making in the UK still lies on the leading role of local authorities in energy conservation, generation and efficiency. In 2009, the Department of Energy & Climate Change (DEEC) issued the Low Carbon Transition Plan, which encouraged ‘place based’ initiatives for energy efficiency, led by coalitions of stakeholders in ‘networked governance’ [23]. In 2011, a new Memorandum of Understanding between the

Department of Energy & Climate Change and the Local Government Group was signed, indicating the continuation of devolution policies in energy efficiency matters. According to the 2012 Local Action Plan for Energy Efficiency and Sustainability, the council’s Environmental and Sustainability Policy sets the following specific goals and ambitions: “(1) Renewable Energy and Waste to Energy: the ambition to make the city self-sufficient in energy, from waste streams, such as biogas production from refuse; (2) Sustainable Transport: to ensure an integrated low carbon transport infrastructure is developed for the city; (3) Local/Regional Climate Impact and Sustainable Management: the council has developed a Climate Change Adaptation Risk Register, and has commitments to manage land and assets owned by the council in a sustainable way; (4) Energy Efficiency Measures: to ensure that the council acts to reduce its energy consumption, and its CO2 emissions, and to report on this progress annually in a Carbon Footprint report. Finally, (5) To continue to invest in the domestic housing stock to minimise the number of homes in fuel poverty” [3]. Stoke-on-Trent follows a Local Development Framework (LDF) enacted in 2013. LDFs are spatial planning strategies introduced in England and Wales by the Planning and Compulsory Purchase Act 2004, which abolished Local Plans and Structure Plans, and replaced them with LDFs. The Local Development Framework is composed by several elements, including the Core Spatial Strategy and Saved Local Plan Policies. It follows guiding planning principles that are stated in the National Planning Policy Framework [20], which replaced Planning Policy Statements (PPS) and Planning Policy Guidance Notes (PPG) in England. The current Stoke-on-Trent Core Spatial Strategy was adopted in 2009 [24]. The Core Spatial Strategy is the primary statutory planning document in the city and sets out a broad framework for the future development of Newcastle-under-Lyme and Stoke-onTrent, and supports the delivery of regeneration priorities in the city. The Core Spatial Strategy “seeks to deliver targeted regeneration to meet projected development needs in accordance with sustainability principles and to maximise development within the Inner Urban Core of the City. Tailored Area Spatial Strategies are set out for the city centre; inner urban core and the rest of the city” [25]. The strategy sets out the overall vision for the future regeneration of the North Staffordshire area stated as: “The Borough of Newcastle-under-Lyme and the City of Stoke-on-Trent will be a prosperous, vibrant, environmentally responsible and successful area of choice for businesses, visitors and residents in the period up to 2026” [26, p.31]. The main objectives of this strategy are to retain existing population, raise income levels, strengthen housing markets, improve the health and

well-being of the population and enhance the reputation of the area [26]. The supplementary document to the LDF is called ‘Sustainability and Climate Change’ and delivers measurable improvements to the sustainability of the built environment throughout the planning application process. This document aims to ensure that the sustainability of development proposals is a key consideration in the planning process and creates requirements for applicants seeking planning permission to consider the longer-term impacts of climate change. This document was adopted in February 2014 and is seen by the council as a big step towards energy efficiency and overall sustainability of new developments [25]. This particular strategic aim related to sustainability and climate change is underpinned by Policy CSP3 - Sustainability and Climate Change, which states: “Development which positively addresses the impacts of climate change and delivers a sustainable approach will be encouraged”. In 2013, the city cabinet agreed to proceed with the preparation of a new Joint Local Plan in partnership with the borough of Newcastle-underLyme. The strategies listed above underpin the overarching programme called ‘Mandate for Change’, the ambitious programme that aims to stimulate new investment in the city; protect existing jobs and create new ones and alleviate poverty [19]. Regeneration strategies connected to the upgrading of the existing housing stock in Stoke-on-Trent are one of the main policy focuses of the Mandate for Change, which sets forward several regeneration aspirations connected to structural spatial and economic reform and change. 6. THE LOCAL CHALLENGES: ENERGY EFFICIENCY IN THE HOUSING SECTOR AND FUEL POVERTY In this section, we describe what several actors identified as the main challenge for local energy efficiency policy-making, namely the state of the housing stock and the rise of fuel poverty. Data from the Department of Energy and Climate Change Fuel Poverty Statistics 2010 show that Stoke-on-Trent’s fuel poverty in privately rented houses has increased from 31% in 2004 to 46% in 2009. Several stakeholders mention the poor state of the privately owned housing stock and fuel poverty as one of the main challenges for the local government. Approximately 19% of English households live in fuel poverty [27]. But what is fuel poverty exactly? According to the British charity Warm Zones [28], fuel poverty is the “inability of a household to afford sufficient warmth for health and comfort. A fuel-poor household is one that needs to spend more than 10% of household income on fuel for heating, hot water, cooking, lighting and electrical appliances. The

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amount spent on heating must be enough to achieve a satisfactory level of warmth. This is generally accepted to be 21°C in the living room and 18°C in other rooms”. However, the current UK conservative coalition has challenged this definition. The current definition of fuel poverty adopted by the UK central government states that fuel poverty is driven by three key factors: energy efficiency of the home; energy costs and household income [27]. Critics point out that the change in definition has slashed the number of households considered to be in fuel poverty without significantly changing the state of the housing stock [29]. Since 2001, the UK government has had a legal duty to set out policies to reduce fuel poverty. According to Energy UK, which appoints itself “the voice of the energy industry” in the UK, a “variety of schemes and measures have been introduced, but the number of households assessed to be in fuel poverty has not fallen in line with the targets”, but offers no explanation as to why [30]. Debbie Hope is Strategic Manager for Housing Growth at Stoke-on-Trent City Council. For Hope, “the back story for the whole of Stoke is the level of poverty and the number of people who live in fuel poverty”. These people are mostly concentrated in the privaterental housing sector, rather than in housing that is managed by housing associations, which according to Hope are easier to intervene in. For Hope, policies have focused on reducing fuel bills and making people more energy efficient from a fuel use point of view, rather than pursuing the wider green agenda in terms of energy production and infrastructure. Policies have concentrated on working with individuals and improving homes, especially when council-owned housing stock is concerned, while the council has been relatively powerless in relation to privately owned property. This trend is in line with national trends. “(…) at a national level, fuel poverty in the social rented sector decreased by more than in the private rented and owner occupied sectors, and so areas with a high proportion of social housing are likely to see bigger decreases in fuel poverty levels” [27]. ‘Beat the Cold’ is a charity concerned with reducing the incidence of fuel poverty and cold-related illness in Staffordshire. Beat the Cold informs, advises and makes referrals for households through telephone advice, events, talks and displays. The charity targets disadvantaged households that need to spend more than 10% of their income on fuel, helping them to apply for measures and grants to improve energy efficiency and giving advice on using fuel, paying for fuel and services from other agencies. Martin Chadwick is the Chief Officer since the formation of the charity in 1999. For Chadwick, Stoke-on-Trent City Council is rather efficient at accessing public funds and implementing programmes. But according to him, there is massive

withdrawal of resources at national and local level that is also reflected in programmes that help disadvantaged households keep warm. For Chadwick, there have been positive developments in terms of bringing housing units to acceptable standards of energy efficiency and comfort lately. The city, even in the face of strained resources, has tried hard to attract external funding and has successfully implemented programmes. However, says Chadwick, “the scale of the problem defeats them”. The predominance of 19th century terraced housing in Stoke-on-Trent makes it very hard for the council to effectively tackle the problem of fuel poverty. But Chadwick points out, as do many others, that tackling fuel poverty means primarily tackling low incomes and the state of properties, besides addressing behavioural changes. Like several other stakeholders, Chadwick considers the Green Deal “almost impossible to fit in the needs of most deprived households”. The way the programme is conceived makes it much less attractive for low-income households in privately rented homes, since they are unwilling to contract long-term debts that have an impact on their monthly income. They will not invest in a property from which they will almost certainly move at some point. Fragile households (the elderly, the very poor, the illiterate) are much less inclined to seek the Green Deal, because it is a difficult programme to understand and their housing arrangements might be uncertain or short-termed. Despite the fact that Beat the Cold tries to inform people about the Green Deal, Chadwick is sceptic about the programme and says more time is needed to evaluate its results. 6.1. Local energy efficiency policies in the housing sector Data from the Department of Energy and Climate Change Fuel Poverty Statistics 2010 show that Stoke-on-Trent’s performance on domestic CO2 emissions is 2.2 tonnes per capita and estimated 25% of all households in the city lived in fuel poverty (national rate at 19%) [20]. Stoke-on-Trent City Council collects energy performance data related to the Standard Assessment Procedure (SAP), which is a methodology to assess energy performance of buildings. SAP is the methodology used by the Government to assess and compare the energy and environmental performance of dwellings to underpin energy and environmental policy initiatives [31]. SAPs are used in the Energy Performance Certificates (EPC) [32], which are needed whenever a property is built, sold or rented. It contains information about a property’s energy use and typical energy costs and recommendations about how to reduce energy use. An EPC gives a property an energy efficiency rating from A (most efficient) to G (least efficient) and it is valid for 10 years. As mentioned,

energy efficiency performance in the social housing stock of Stoke-on-Trent is deemed adequate. However, the vast majority of privately owned terraced houses represent the real challenge. The Private Sector Stock Condition Survey [33] finds that fuel poverty increased in the private sector from 31% in 2004 to 46% in 2009. 75% of elderly people living in this type of housing are in fuel poverty, because of low incomes and very poor standards of accommodation. Moreover, Stoke-on-Trent has an estimated 25,000 properties with solid walls (i.e. single brick with no option for cavity wall insulation) [34]. In these cases, solid wall insulation (SWI) must be carried out. However, SWI is expensive and may interfere in the aesthetics of a property. Past measures taken by the Council to improve energy efficiency of residential accommodation included the Warm Front Scheme and other complementary programmes (Carbon Efficiency Reduction Target and the Community Energy Savings Programme). These programmes aimed to improve home energy performance through heating repairs and replacements, loft and cavity wall insulation, solid wall insulation, new heating systems, and draught proofing. But the Warm Front scheme was prematurely terminated by the central government in 2013. According to the UK Fuel Poverty Monitor 2013 [35], the Warm Front programme in England was terminated too soon, although funds of approximately £30 million were distributed across 61 successful bids involving 169 local authorities to fund additional fuel poverty programmes. Stakeholders in Stoke-on-Trent lament the end of a seemingly promising programme that was based on local government action and planning. “Following termination of the Warm Front scheme in January 2013, England is the only UK nation without a Government-funded energy efficiency programme for low-income households (…) The Westminster Government is failing in its duties under the Warm Homes and Energy Conservation Act of 2000. The Government has previously conceded that reducing Warm Front funding to zero would put it in breach of its legal obligations but has done just that” [35]. Although it may be argued that decisionmaking and much of the accountability for energy security rests on the shoulders of the local authority, initiatives like the Staffordshire Strategic Partnership and the Staffordshire Local Enterprise Partnership (LEP) show that a networked governance style is in place in the case study and decision-making emerges from multiple interactions between stakeholders, rather than from the planning office alone. However, there are clear challenges concerning accountability and representativeness of vulnerable groups. Questions arise concerning the rights of vulnerable households to energy security, in the light of their lack of representation in forums of discussion and their apparent weak voice when it comes to the formulation

of demands. Housing is the sector in which governance is most deficient, because privately owned houses for rent are difficult to regulate within the current British liberalised market context. Most of the social housing stock of the city is in relative good state, thanks to interventions from the housing associations that manage them. However, the large amount of rental Victorian 19th century terraced housing stock that is privately owned is in very poor condition and energy performance is very low. The rights of deprived households to energy security seem to be flimsy at best, since the local authority does not have effective tools to intervene in privately owned housing that is rented to lower-income households. Terraced houses built before WWII are particularly abundant in Stoke. This housing typology is very inefficient in terms of energy conservation and needs to be urgently reformed. The council seems sensitive to the needs of lower-income households living in such homes, but the way national funding is organised makes it difficult for the council to propose alternative tools to deliver energy efficiency to those households. 6.2. Housing energy efficiency measures in Stoke-on-Trent The difficulties in delivering energy efficiency measures to privately owned homes for rental does not mean inaction. Stoke-on-Trent has developed and published the ‘Green Homes and Affordable Warmth Strategy 2012-2015’, which describes the city’s domestic energy efficiency ambitions and priorities [36]. These include requirements for all new housing retrofit programmes to aim for a minimum 42% CO2 reduction (on 1990 levels) by 2016 (equal to Energy Performance Certificate rating C). The municipality believes that improving the energy performance of private sector housing is a priority [37]. The council also operates area-based schemes to deliver energy saving measures into the housing stock through the Green Deal and ECO (Energy Company Obligation) schemes. Measures include identifying communities that may benefit from Affordable Warmth and Carbon Saving Communities Obligation funding under the ECO scheme. They also include setting up a local Green Deal and ECO Broker service that will secure highest rates of ECO funding available to help residents fund energy efficiency improvements to their property. It also sets out to develop and implement a Framework Agreement for Installers to install energy saving measures that are identified by the Green Deal and ECO Brokerage. Moreover, the council won funding from the Department of Energy and Climate Change (ECC) to deliver 220 energy saving measures to households at most risk of fuel poverty. This programme will also offer free Green Deal Plans for up to 60 households in Stokeon-Trent.

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Stoke-on-Trent City Council has often worked with pilot projects where a relatively small number of housing units were improved in innovative ways. The council has also joined private partners in order to deliver energy efficiency improvements, as was the case with 60 units where E.ON (the electricity company) sponsored the implementation of photovoltaic panels through the ECO programme. In another pilot, a Victorian single-wall terraced house was retrofitted with the latest technology. This made the internal space of the house shrank considerably, which was regarded as undesirable by the users. Another pilot project consisted of three houses that were retrofitted differently, with different technologies in each one. The tenants of these houses had black box recorders, so the patterns of use and the effectiveness of the technology could be retrieved and compared. 6.3. Housing ownership and technical expertise as barriers for implementation For Debbie Hope, the council simply doesn’t have the “sticks to beat private landlords with”. In other words, there are no tools to make private landlords abide to better standards of energy efficiency. The council has a scheme called the Landlord Accreditation Scheme. The aim of this scheme is to “improve the physical and management standards in the private rented sector. This will be achieved by providing encouragement, support and incentives to members” [38]. Landlords can subscribe to it voluntary and get technical information and free training. Landlords can then advertise their adherence to the programme as an advantage for renters. The council can only interfere when living conditions put the health and the wellbeing of tenants in jeopardy. This has also to do with capacity within the local authority. As the number of unhealthy housing units is quite high, the environment and health agencies do not have the resources to tackle cases that are not desperate. For Hope, incentive and coercive policies do have an effect on private landlords, but they need to be consistent. Despite efforts from the council and the Housing Standards team, policies and stakeholders seem to be insufficiently connected: council, university, housing associations, citizens are still looking for a coordinating platform that would be able to gather stakeholders and give more coherence to the many efforts towards improving energy efficiency in the city. Some believe that this role could be fulfilled by CoRE, the Centre of Refurbishment Excellence recently opened in the city. CoRE is an independent, not for profit national centre of excellence for green retrofit skills in the built environment opened in 2013 whose mission is to support professionals working for a low

carbon, resource efficient UK through the refurbishment of homes and buildings [39]. Several stakeholders in the public sector and civil society recognize that technical expertise is essential to formulate and carry out upgrading policies, and recognize that CoRE would be an important partner for policy-making. 7. CONCLUDING REMARKS Stoke-on-Trent’s identity is related to its rich industrial heritage and the level of urban development it reached very early in the 18th century, followed by a prolonged period of decline, with low levels of economic investment after World War 2. This is reflected in the built environment, as much of the privately owned housing stock has not been brought up to date in terms of energy efficiency. Low levels of economic investment are also reflected in issues of human capital development. The structure of production of the ceramics industry resulted in excessive concentration of wealth, with low salaries being paid to industrial workers in the region. As families had to struggle and could not prosper and increase their life chances, the resulting high levels of deprivation today mean that the city needs to tackle high levels of fuel poverty. The transition towards a service economy seems to be the great challenge for Stoke-on-Trent in the 21st century. Energy efficiency is therefore an absolute priority for Stoke, both in economic and social terms. The local government is keen on finding innovative ways to tackle those problems, but needs to abide to a complex planning framework, where funds are made available by central government through a bidding system, in which Stoke-on-Trent must compete for funds with other unitary authorities in England. But funds have become scarcer in the last few years, with budget cuts in all areas. Nevertheless, the local government has achieved some important goals in the last few years, winning a bid that will allow the council to build England’s first district heating network system. This is important, both politically and strategically, because it allows the council to advance a “green agenda”, in which energy conservation is seen as an opportunity for innovation and economic growth. This means that new technologies, new forms of urbanisation and new forms of public-private partnerships can be tried, hopefully pushing the economy of the city forward. New technologies are extensively being tried in the numerous pilot-projects the council has put forward and in the innovative CoRE (Centre of Refurbishment Excellence) located in Stoke. New forms of urbanisation are, for example, new requirements for the construction of “green neighbourhoods” (with the challenges this represents in terms of attracting real estate investment

in a depressed area) and the upcoming district heating system. The UK needs to deal with its industrial heritage and with a large housing stock built before energy efficiency became a serious concern. This, combined with high indices of deprivation, has led to an alarming deficit in the rights of vulnerable households to healthy energy efficient housing. New forms of governance arrangements in relation to energy are being tried through LEPs (Local Enterprise Partnerships) and ECO (Energy Company Obligations), both frameworks from central government that are being used in Stoke, but they fail to include the voices of deprived households. Governance arrangements present clear advantages for the elaboration and implementation of measures that are realistic and acceptable by a range of stakeholders, but questions arise concerning the rights of vulnerable households to energy security, in the light of their lack of representation in forums of discussion. The rights of deprived households to energy security seem to be flimsy at best, since the local authority does not have effective tools to intervene in privately owned housing stock that is rented out to lower-income households. 8. ACKNOWLEDGEMENTS The research was conducted in the frame of the project PLEEC (Planning for energy efficient cities), GA no. 314704, www.pleecproject.eu, funded by the European Commission’s 7th Framework Programme. I would like to highlight the special contribution of the following individuals: Edward Sidley, former Senior Planning Officer at the Regeneration, Planning & Development at Stoke-on-Trent City Council. Sebastien Daneels, Economic Development Officer at Stoke-onTrent City Council Matthew Oxby, Senior Transport Policy Officer at Stoke-on-Trent City Council. I would like to thank the large number of people who were interviewed for this project, but most specially Barbara Andrew and her lovely team from The Potteries Heritage Society. REFERENCES [1] Kullman, M., Campillo, J., Dahlquist, E., Fertner, C., Giffinger, R., Große, J., Groth, N.B., Haindlmaier, G., Kunnasvirta, A., Strohmayer, F. & Haselberger, J. (2016), Note: The PLEEC project – Planning for Energy efficient Cities. Journal of Settlements and Spatial Planning, vol 5, pp. 89-92. [2] UK Government (2011), The Carbon Plan: Delivering our low carbon future. London, Department of Energy and Climate Change. [3] Stoke-on-Trent City Council (2012), Local Action Plan: Towards the Sustainable City. Our vision to improve energy efficiency and redude our carbon

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http://ec.europa.eu/energy/renewables/action_plan_e n.htm. [18] UK Government (2009), National Renewable Energy Action Plan for the United Kingdom. London. [19] Stoke-on-Trent City Council (2014), Mandate for Change. Retrieved July 10, 2014, from http://www.stoke.gov.uk /ccm/content/council-anddemocracy/knowledge-management/mandate-forchange.en [20] UK Government (2012), National Planning Framework. London, Department for Communities and Local Government. [21] European Commission (2012), Energy Efficiency Directive. Retrieved 01 September, 2014, from http://ec.europa.eu/energy/efficiency/eed/eed_ en.htm [22] UK Government (2012), Reducing demand for energy from industry, businesses and the public secto. Retrieved 25 Sept, 2014, from https://www.gov.uk/ government/policies/reducing-demand-for-energyfrom-industry-businesses-and-the-public-sector2/ supporting-pages/crc-energy-efficiency-scheme [23] Fudge, S., et al. (2012), Locating the agency and influence of local authorities in UK energy goverance. Guilford, Centre for Environmental Strategy, University of Surrey: 1-19. [24] Stoke-on-Trent City Council (2009), Newcastle-under-Lyme and Stoke-on-Trent Core Spatial Strategy 2006-2026 Adopted. Stoke-on-Trent, Stoke-on-Trent City Council, Plannig Policy Team, Directorate of Regeneration. [25] Stoke-on-Trent City Council (2014), The Planning Framework in Stoke-in-Trent. Retrieved July 10, 2014, from http://www.stoke.gov.uk/ccm/ navigation/planning/planning-policy/ [26] Stoke-on-Trent City Council (2012), Stoke-onTrent Local Transport Plan (LPT): Supporting Economic Growth. Stoke-on-Trent, Stoke-on-Trent City Council. [27] UK Government (2012), Annual Report on Fuel Poverty Statistics 2012. London, Department of Energy and Cliatme Change.

[28] Warm Zones (2014), What Is Fuel Poverty?. Retrieved May 10, 2015, from http://www.warmzones. co.uk [29] Read, S. (2014), Government accused of setting 'meaningless targets' on fuel poverty. The Independent. UK, The Independent: UK Politics. [30] Energy UK (2014), Fuel Poverty." Retrieved 12 September, 2014, from http://www.energy-uk.org.uk/ policy/fuel-poverty.html [31] UK Government (2013), Climate change and energy â&#x20AC;&#x201C; guidance: Standard Assessment Procedure. Retrieved May 12, 2015. [32] UK Government (2014), Buying or Selling your Home: Energy Performance Certificates. Retrieved 12 October, 2015, from https://www.gov.uk/buy-sell-yourhome/energy-performance-certificates [33] Stoke-on-Trent City Council (2009), Private Sector Stock Condition Survey 2008. Edinburgh, David Adamson & Partners Ltd. [34] Stoke-on-Trent City Council (2013), Stoke-ontrent Home Energy Conservation Act 2013 Report. I. Podmore. Stoke-on-Trent, Housing Enabling team, Stoke-on-Trent City Council. [35] National Energy Action (2013), UK Fuel Povery Monitor 2013. Newcastle upon Tyne, National Energy Action. [36] Stoke-on-Trent City Council (2011), Green Homes and Affordable Warmth Strategy 2012-2015. C. J. Jones. Stoke-on-Trent, Housing, Neighbourhoods & Community Safety, Stoke-on-Trent City Council. [37] Stoke-on-Trent City Council (2014), Carbon Managemengt Plan Update. Director of City Renewal, Stoke-on-Trent. [38] Stoke-on-Trent City Council and Newcastle Under Lyme (2015), Landlord Accreditation Scheme. Retrieved October 10, 2015, from http://www.landlordaccreditation.co.uk/content/index .asp [39] CoRE (2015), Centre for Refurbishment Excellence. Retrieved November 10, 2015, from https://www.core-skills.com/about/about-us/

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Planning for Energy Efficiency in a Historic City. The Case of Santiago de Compostela, Spain Ana María FERNÁNDEZ-MALDONADO1, Patricia LIÑARES MÉNDEZ2, Esteban VIEITES MONTES3 1

Delft University of Technology, Faculty of Architecture and the Built Environment, Department of Urbanism, Delft, THE NETHERLANDS 2 University of Vigo, Department of Natural Resources 3 University of Santiago de

and Environment, Vigo, SPAIN

Compostela, Technological Research Institute, Santiago de Compostela, SPAIN

E-mail:a.m.fernandezmaldonado@tudelft.nl, plinhares@uvigo.es , esteban.vieites@gmail.com

K e y w o r d s: energy efficiency of historic buildings, regeneration of historic centres, urban energy planning, building adaptation to energy efficiency, Santiago de Compostela

ABSTRACT Santiago de Compostelais well-known for its historic core of exceptional quality, as a World Heritage Site. Due to its mild climate, its large amount of green areas, andits compact urban pattern with mixed functions, it has a low level of residential energy consumption, but not in its historic core, in which monumental buildings of different age combine with dwellings in a pedestrianised urban environment. The European 20-20-20 targets present big challenges for historic areas such as Santiago. The present study assesses Santiago’s strengths and weaknesses in terms of urban planning and energy efficiency, and explores what local planning can do for the adaptation of the historic centre to energy-efficiency considerations. The findings show that local plans have paid attention to environmental issues differently in the past decades, according to each period’s priorities. Only recently, local planning has addressedenergy efficiency issue, mainly in the case of public infrastructure. They also suggest a limited capacity of the local authorities to pursue energy efficiency goals at a residential level, and serious lack of knowledge about the actual energy situation. A proactive role of the local government towards energy efficiency requires the commitment of all stakeholders. The presence of institutions specialized in urban regeneration, such as the ‘Consorcio’, gathering the most important local stakeholders, suggests positive outcomes if long-term coordination is achieved.

1. INTRODUCTION Santiago de Compostela is the capital city of the Autonomous Community of Galicia, well-known as the end destination of the Way of Saint James, a popular European pilgrimage. In terms of energyefficiency, Santiago enjoys several qualities of a low residential energy consumer. It is blessed with a mild climate and abundant green areas, while its local urban planning has stimulated an urban pattern which has maintained the compactness and mixed functions of the

traditional Spanish urbanism. There is, however, an important aspect that needs to be tackled by the city to be on the right track towards energy efficiency: the adaptation of the historic centre’s buildings to bioclimatic considerations in the context of strict levels of protection of the built environment. Due to Santiago’s exceptional historic core, local planning regulations have changed priorities during different periods, but have always shared the objective of conserving, regenerating and maintaining the spatial quality of its built environment.

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

The Plan Especial de Protección e Rehabilitación da Cidade Histórica (PE-1), successfully addressed the regeneration process, stating/setting strict levels of protection and minimum conditions for liveability, thus becoming a model process for similar Special Plans in Spain. The review of PE-1is expected to include aspects of environmental, social and economic sustainability, which were not considered in the original plan, promoting energy-efficiency for the (new) buildings. The objective of the present study is to assess Santiago’s present situation in terms of urban planning and energy efficiency, by identifying their strengths and weaknesses, and exploring possible avenues for local planning to promote and orient the adaptation of the historic centre to the energy-efficiency considerations required to confront climate change. The paper begins with a theoretical part, referred to aspects of energy efficiency in the case of historic buildings. The empirical part addresses three different aspects of Santiago: the evolution of its urban environment, the successive urban planning regulations and the energy context. The conclusions summarize the findings and discussion, recommending measures to improve the energy efficiency situation of the city of Santiago.

2. THEORY AND METHODOLOGY 2.1. Energy–efficiency and historic buildings It is estimated that 80% reductions of CO2 will be necessary to tackle climate change at a meaningful level in the long term. The EU implemented the socalled ‘20-20-20’ strategy, whose targets for 2020 are: 20% reduction in GHG emissions (from 1990 levels); 20% increase the production of renewable energy; and 20% improvement of energy efficiency. “In the context of historic sites, these targets present very significant challenges, due to the considerable restrictions on what is and is not permitted on buildings and in their surroundings for such sites – these restrictions too often sit at odds with climate change and other targets” [1, p. 3]. The strategy includes several directives and related measures (see Table 1). However, they do not clearly mention the historic buildings. Art. 4 of the Energy Performance of Buildings Directive (EPBD) states that member states may decide not to apply the energy requirements in the case of “buildings and monuments officially protected… where compliance with the requirements would unacceptably alter their character or appearance” [2, p. 26].

Table 1. Main measures of the EU directives for tackling climate change (adapted from [3]).

EPBD (Energy Performance of Buildings Directive) Application of minimum requirements on the energy performance of new buildings and large existing buildings subject to major renovation

RED (Renewable Energy Directive)

EED (Energy Efficiency Directive)

To set up sector-specific targets for renewable heating and cooling.

To establish a long-term strategy for investment in renovation of the stock of residential and commercial buildings, both public and private.

Energy performance certification of buildings

Adopt support policies for RES-H at least for new buildings and existing buildings subject to a major renovation.

Member states must ensure a refurbishment rate of 3% per year of the total floor area of all heated and/or cooled buildings (> 500 m2) owned and occupied by their central governments

Regular inspection of boilers and airconditioning systems in buildings; assessment of heating installation if boilers are older than 15 years

Defines technology specific restrictions for heat pumps and bio-liquids.

Establish energy efficiency obligation schemes (White Certificate Schemes) for energy savings of 1.5% per year

All new buildings must be nZEB (nearly zero-energy building) in Dec. 2020 and all new public buildings in 2018.

Public buildings subject to major renovation must fulfil an exemplary role in the context of the use of RES-H.

Member states must promote the availability of independent high quality energy audits to all final customers.

The European Commission funds several programmes and projects for energy efficiency purposes in historic urban environments. An example of this is EFFESUS (Energy Efficiency in Historic Centres), whose purpose is to investigate the energy efficiency of the European historic urban areas, developing innovative technologies and systems (Santiago is a case

study in EFFESUS). On the other hand, UNESCO has launched the RENFORUS Initiative (Renewable Energy Futures for UNESCO Sites) in 2012, to document the empirical evidence of the sustainable energy projects of UNESCO sites, committed to energy efficiency and renewable energy sources. Several European countries have developed national guidelines and

Planning for Energy Efficiency in a Historic City. The Case of Santiago de Compostela, Spain Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

recommendations for the renovation of heritage buildings for purposes of energy efficiency, although this topic has not yet received great attention in Spain [4]. The UK has been at the forefront of national recommendations, stating that achieving a proper balance between energy efficiency and conservation, a proper understanding of the technical aspects is required, on the one hand, and constructive aspects, on the other. “… regard should be given to ensuring that the building is well understood, to avoid damage; minimizing disturbance to existing fabric; reversing the changes easily without damaging the existing fabric (especially changes to services); and appreciating that some buildings or parts of buildings are of such quality, importance or completeness that they should not be altered at all save in the most exceptional circumstances” [5, p. 24]. In the impossibility to make all historic buildings nZEB (nearly zero-energy building), retrofitting interventions should then try to achieve the lowest possible energy demand without compromising the building’s physical characteristics, while ensuring the financial feasibility of the process [6]. In Italy, recent legislation (Legislative Decree n◦63/13) (2013) prescribes energy efficiency requirements for historic buildings, which were previously outside the scope of the energy saving legislation. Consequently, they have to draw up a certificate of energy performance (EPC), and go through inspections of the operation and maintenance of technical installations [7]. Based on this legislation, the university of Ferrara has used GIS to map the buildings’ EPC in the city and its historic centre, resulting in an “energy map”, useful to compare energy performance of different districts and not exclusively of single buildings [8]. Prestigious European centres for research on this topic are the Historic Scotland and the Architettura>Energia Centre of the University of Ferrara [4]. Scotland’s environmental objectives are very ambitious: 42% CO2 reduction for 2020 and 80% for 2050. To reach these goals, Historic Scotland has devised an Action Plan for 2012-2017 [9], whose strategy of energy reduction focuses on improving knowledge and skills in the construction sector. The main actions are: - research into energy efficiency of traditional buildings, using pilot schemes in a range of building types; - research with external partners in thermal comfort, air quality, embodied carbon and energy modelling; - dissemination of these results to stakeholders including professionals, community groups and homeowners; - coordination with the education and industry sectors to improve knowledge and skills in the construction sector training.

The Architettura>Energia Centre deals with energy and environmental upgrading of (new and) existing buildings, and has expertise in designing guidelines to increase the energy efficiency and environmental quality of the existing (historic) buildings. The centre also provides financial assessments for investments in energy efficiency, such as calculation of the amortization for energy saving measures, and calculation of the current value of energy efficiency investments [10]. Several studies propose methodologies for energy retrofitting of historic buildings. Vieveen (2013) has proposed a six-step methodology including: an inventory of heritage qualities; inventory of the technical conditions; explanation of current energy consumption; understanding the current user complaints; inventory of future user demands; and exploration of the potential energy interventions [11]. Filippi (2015) considers: improvement of energy performances of the building envelope; updating components of the air conditioning and lighting systems; management of natural ventilation; passive cooling; monitoring of the indoor environmental quality and energy efficiency by building automation systems; updating existing energy systems, exploitation of renewable energy sources; use of eco-compatible, recycled or recyclable materials [12]. De Santoli (2015) proposes guidelines with differentiated parts for the two professions interacting in the retrofitting interventions: the designer (for the constructive and use aspects), and the technicians (for the energy measures) [7]. Most of these studies focus on the building’s technical and constructive aspects. However, sustainable interventions require to take into account three aspects linked to the sustainability pillars: heritage preservation (societal aspects); energy use (environmental aspects); and affordability (economic aspects). Few studies focus on aspects linked to the implementation and affordability of the works. Research shows that supportive financing schemes are crucial for the implementation of energy efficiency works in heritage buildings, thus legislation including such schemes can have a major impact. Herrera and Bennadji (2013) do include affordability issues in their proposed methodology for retrofitting interventions in historic buildings in Scotland [6], with nine criteria (see Table 2). Table 2. Criteria to assess sustainability level of the retrofit interventions [5].

Environmental assessment

Societal assessment

Economic assessment

Energy use

Indoor quality

Affordability

Emissions Material resources

Thermal comfort Heritage preservation

Maintenance Costeffectiveness

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

Two relevant South-European experiences can be found in the Italian municipality of Genoa and the Spanish municipality of Tres Cantos. In Genoa, a “Sustainable Energy Action Plan” (SEAP) was successfully completed in 2010, following a three-phase programme (preparation, implementation, and monitoring) involving public institutions, private stakeholders and ordinary citizens, as a result of the municipality affiliation with the Covenant of Mayors (CoM). The Action Plan used the results of the “Baseline Emission Inventory” (BEI), which quantifies the energy consumption of a territory in a selected reference year [13]. The main goal was the achievement of 20% GHG reduction by 2020 in two main sectors: “Buildings, equipment/facilities, and industry” and “Transport”. The first one, accounting for 77% of the global consumption in 2005, is divided into municipal buildings (consuming 386,956 MWh in 2005), tertiary buildings (2,143,868 MWh), residential buildings (3,653,783 MWh), and municipal public lighting (37,800 MWh). Several causes explain the low energy efficiency in Genoa’s buildings, such as: age (about 95% of buildings in Genoa were built before 1971); limited use of insulating materials for outer walls, and often over-sized and inefficient one-family heating facilities. The SEAP became a key urban energy policy document, identifying major areas for improvement, in both public and private sectors. In the case of Tres Cantos, a "satellite city" 22 km north of Madrid, a “bioclimatic ordinance” was issued and successfully applied to tackle the environmental situation [14]. The ordinance describes: (1) the object and scope of the ordinance; (2) urban design issues: the design of roads and parking, of open spaces and green areas; (3) construction issues (for new or rehabilitated buildings): incorporating active and passive techniques; and (4) monitoring, control and discipline aspects of the ordinance implementation. The ordinance followed a three-step methodology, which included the following: a). Recognition of the environmental conditions, such as relief, landscape, drainage or surface water, vegetation, etc. b). Identification of factors affecting climate and microclimate, especially wind and sun, to formulate the main strategies to achieve the objectives pursued. c). Inclusion of strategies in the urban plan, integrating them in general urban systems (road network, facilities, green areas and open spaces) and drafting the necessary ordinances. 2.2. Methodology Due to the important heritage aspects of the built environment of Santiago de Compostela, to address the relationship between planning and energy

efficiency, this study has reviewed the literature on issues related to planning and energy efficiency of historic buildings, with a special emphasis on successful experiences in Europe. On the other hand, based on analyses of academic journal papers, local policy documents and plans, data sources at different levels, and interviews with relevant stakeholders done within the EU-FP7 project PLEEC (see [23] for details), the study presents a brief description of the historic evolution of the built environment of Santiago city, and explains the current situation and efforts of the local planning to tackle climate change aspects in the historic core of Santiago. A special attention is given to the ‘Special Plan of Protection of the Historic City’ (PE-1), its interventions and related programmes, due to the significance it has had to indirectly contribute to the favourable features of Santiago in terms of energy efficiency. To understand the energy conditions in Santiago, our initial idea was to analyse data about energy consumption at municipal level, city level and district level. But several efforts to get detailed and updated figures on energy consumption from different sources remained unsuccessful, which gave us a first idea of the (limited) relevance of energy issues at local level. We worked with data of energy consumption in Galicia and the A Coruña province, but also made own calculations about energy consumption in the historic centre with the updated records (2008) of the Special Plan. Based on these analyses, we finally suggested measures to be taken into account to improve the energy efficiency conditions in Santiago. 3. RESULTS AND DISCUSSION 3.1. Historic Compostela

evolution

Santiago

In the ninth century, Santiago de Compostela became an important European city, as the destination of the Way of Saint James, which gave the city its name. However, the popularity of the Way was almost extinct outside Spain in the 14th century due to the effects of the plague, and later to the rise of Protestantism. During centuries, Santiago has remained a relatively unimportant European city, growing at a slow pace. In 1775, the first urban regulations were launched under the hygienist considerations of the time, the Ordenanzas de policía (Police Ordinances) [15], providing very specific norms for the local built environment. At the beginning of the twentieth century Santiago recorded an increase in the number of population, which led to a densification of its built environment. In 1908, its urban fabric almost coincided with what is today its historic core (see Figure 1). Demographic changes leading to urban growth occurred in Santiago considerably later than in other

Spanish and Galician cities. This urban expansion delay produced the intensification of the use of the space in the historic core. Due to its significant religious and cultural role, Santiago focused on the renovation and adaptation of the built environment of the historic core, to support its condition of historic and monumental town. The interventions involved the increase of building height, building galleries in the upper levels. In 1930, more than one third of the buildings had three floors and less than one sixth had only one floor [17], [18].

Santiago’s historic centre was designated an UNESCO World Heritage Site. Not long after, the Xacobeo regional strategy was launched with the purpose to recover, diversify and internationalize the historic centre and the Way of Saint James [21]. Part of the strategy was the creation of El Consorcio (the Consortium) in 1992, a coordination body with members of the Spanish government, Galicia’s regional government and Santiago’s municipal government, the Catholic Church and the University, whose main objectives were to preserve and revitalize Santiago’s cultural heritage and the development of cultural tourism related to the pilgrimage route. The whole strategy succeeded in improving the urban quality of the historic centre, developing tourism in the city and improving quality of life in the whole city [22]. The historic centre covers an area of108 ha, with a buffer zone of 217 ha and has a remarkable state of conservation of civil and religious monuments. Middle Ages, Renaissance, and 17th and 18th century buildings are integrated into a high-quality urban fabric.

Fig. 1. Map of Santiago in 1908 [16].

The remarkable densification process and its consequences on the sustainability of the historic buildings were analysed by Liñares (2012). Figure 2 shows the evolution of a typical section of an urban block in the inner-city, from two-storey single family buildings with a large backyard during medieval times, to severalstorey buildings during modern ages, and again to building structures with increased height and depth occupied by several families, with very little open space in-between. The latter process has severely damaged the bioclimatic qualities of the involved buildings and surrounding urban space, producing a negative impact on the energy efficiency of the urban fabric of the historic centre and the extensions that followed its development, as, for instance, El Ensanche [19]. At the end of the 20th century, two events improved Santiago’s fortune. With the 1978 constitution and the establishment of Autonomous Communities in Spain, Santiago was appointed as the capital of Galicia and the seat of its government, attracting many new jobs and residents. In 1985,

Fig. 2. Increase of building height and depth in historic houses in Santiago along past centuries [19].

In 1989, the city formulated a new General Plan of Urban Development (PXOM), which considered the depopulation of the historic centre as one of its most significant problems [23]. The plan promoted a compact urban growth, a continuous urban fabric, and a strict regulation for new developments. It was complemented by the Plan Especial de protección e rehabilitación da cidade histórica (Special Plan of protection and retrofitting of the historic city) (PE-1) (see section 3.3). They had as common objectives: (1) to promote the residential use of the historic centre; (2) to improve the pedestrian infrastructure, meeting places, and links between different parts of the city, eliminating vehicular traffic; and (3) to create green corridors in the historical city linking parks with rural landscape [22]. They have strongly contributed to the maintenance of Santiago’s compact urban fabric resisting the sprawling trends of

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

the construction boom that affected most Spanish cities from the 1990s until 2007 [23]. This compact urban fabric and its green urban structure are both favourable features for low energy consumption.

historic centres. Table 3 shows the most relevant Specials Plans of Spanish heritage cities, including Santiago’s PE-1, which has been frequently cited for its innovative and comprehensive character.

3.2. Successive planning regulations in Santiago

Table 3. Main features on buildings and historic landscapes of Special Plans in historic cities of Spain [24].

and

conservation

The first regulations, the Ordenanzas de Policía were approved in 1780 [15] seeking for the citizens’ health and comfort, but for especially sanitary conditions (see Figure 3).

Santiago de Compostela

Oviedo

Barcelona Bilbao

Included the historic city’s business premises in the heritage catalogue.

Madrid, Valencia

Carried out first initiatives taking into account the energy efficiency aspects.

Segovia Fig. 3. Front pages of Ordenanzas de policía [15].

They regulated building height, size and alignment, fire safety, waste management and water drainage. The façade’s openings, position and size were standardized, in order to achieve certain homogeneity. Overhangs were demolished, ruined houses and arcades were removed, streets were paved and subterranean plumbing was installed. Local government’s officials inspected the works and new constructions and architect Miguel Ferro Caveiro was appointed for the supervision of the works. The ordinances also addressed economic aspects: in case owners could not afford the intervention, public bodies would fund the works; if public funds were not available, private investors could assume the costs; and, in both cases, the investment would be later recuperated by renting the property. During the 20th century, the conservation of historic buildings in (European) cities was tackled in different ways, according the priorities of the city authorities, since each city presents its own particularities. Gradually, the concept of rehabilitation – “the minimum necessary intervention to improve, adapt and make liveable and able to host any function” [24] – was widely recognized and adopted during the 1980s. This new concept replaced the first type of interventions, mainly based on the demolition of the building’s interior to be rebuilt again, but keeping the façades in order to preserve the original appearance. Many cities start developing new plans according to this new concept, which resulted in specific regulations. Many Spanish cities elaborated Special Plans for their

Focused on basic health and sanitary conditions (running water, electric systems…) and conservation of the urban environment (aesthetic and archaeological aspects). Preserved orchards in the middle of the city would be cultivated and maintained by owners. Initially, façades were preserved and interiors rebuilt. Only public buildings were subjected to massive rehabilitation. Elimination of irrecoverable elements to create more open areas. Everything else is rehabilitated.

Toledo, Pamplona, Logroño Gijon, Caceres, Teruel

Sevilla, Malaga, Granada

The successful “Plan Verde de Segovia” (Segovia Green Plan) recovered the riverside area around the city, reforesting 68 ha. Followed Segovia’s example, promoting the riverside as leisure areas. Included relevant landscapes beside their historic cities, such as hills, old promenades and traditional areas, reforesting and gardening to transform them into leisure areas. Included special measures to maintain the refreshing features that the interior gardens of the Andalusian cities provide inside the city.

3.3. Special plan for the protection of Santiago (PE-1) PE-1 was developed within the frame of the Ley del Patrimonio Histórico Español (1985), with the purpose to defend the local heritage against mere economic-driven developments [25]. PE-1 has been considered as a exemplary Special Plan, which included the classification of buildings according its heritage level; the strict regulation of (exterior and interior) interventions in buildings; and the careful documentation of heritage buildings. PE-1 distinguishes five areas in the historic centre according to heritage relevance, linking them to a particular set of allowed interventions. It also establishes four levels of building protection through a catalogue of the patrimony according to their historic or environmental values, while the non-catalogued buildings are under a generic protection. PE-1 also prepared ‘building spreadsheets’ with individual specifications (see Figure 4), which include the building’s description, level of protection, area of intervention, main elements under protection

and particular interventions. The fieldwork was carried out in 1988 and processed between 1992 and 1993,

although the approval of the plan was delayed until 1997.

Fig. 4. Building records in the Plan Especial [25].

PE-1 focuses on the conservation and restoration of the buildingsâ&#x20AC;&#x2122; visible elements, such as facades, walls, roofs or gardens that are visible from the street, describing different types of general interventions (conservation, restoration, rehabilitation, restructuration and extension) and particular interventions (facades and external elements, ground floor facades and external elements, partial interventions in dwellings and retail, and consolidation). An important priority was to reach standard sanitary conditions in indoor spaces, because many buildings still lacked sanitary services. Article 30 states that buildings should have at least well-functioning electric, water supply and sanitation systems, as well as adequate sanitary conditions inside the building and free spaces. Owners must carry out works to assure aesthetic, security and sanitary aspects, but if the works would exceed 50% of the buildingâ&#x20AC;&#x2122;s current value, the municipality would assume the extra-costs.

PE-1 has promoted the conservation of Santiagoâ&#x20AC;&#x2122;s historic urban environment, but it did not directly consider sustainability or energy efficiency aspects. Indirectly, however, it has greatly contributed to keep Santiago as a compact city, favouring energy efficiency. Regarding building volume, which determines the dwellings potential for day lighting, solar radiation and natural ventilation, PE-1stated that the constructions located in the inner core must respect the conservation of their volume and occupation rate, so both the main and back facades must be unalterable. Constructions behind the internal line established in the plans are not allowed and the rest of the plot must be maintained as free space. Current plot layout must be respected, and additions and subdivisions are forbidden. Further, location and dimensions of street facades, plot surfaces, occupation of surfaces, building heights and roofs are unalterable, unless differently specified. Some alterations of building depth are allowed under certain circumstances.

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

3.3.1. Interventions under PE-1 and related programmes Interesting examples of retrofitting interventions have been carried out in important historic buildings by private institutions or households. The retrofitting activities have been supported by the national and regional government measures. The Consorcio has had an important role through the programme Recuperación Urbana that began in 1992. The agenda ‘Ter é manter’ supports owner’s initiative in improving the building envelope and common services. The financial support addressed to the improvement of the windows has contributed to raise the thermal resistance and the air tightness of the dwellings and to improve the aesthetics of the facades. Between 2006 and 2009, 170 dwellings received financial aids for windows improvement, (see Table 4). The Edificios Tutelados (PET) programme promotes the renovation of empty buildings, financing the works with the rent of the property during 12 years, after which it is returned to the owners. The success of PE-1 and related programmes have been evident. While in 1989, only 50.83% of all

buildings in the city centre were in good condition, in 2008 the percentage went up to 83.35% (Figure 5, left). Regarding homes, in 1989 only a share of 62.3% was in good condition, which increased to 83.7% in 2008 (Figure 5, right). Table 4. Interventions carried out under the program of window retrofitting, 2006 - 2009 [26].

2006

2008

2009

Cancellations

Refusals

Major interventions

Total

Technical reports

PE-1’s implementation had such an important role in improving the urban quality of the historic centre, that the European Commission and the European Council of Town Planners awarded the Special Plan the 1997-98 European Town Planning Prize in the category of Local Planning and a Best Practice Award from UN-Habitat in 2002 [22].

Fig. 5. Improvements of historic buildings (left) and homes (right) in the historic centre of Santiago, 1989-2008 [26].

To improve knowledge about the historic city the Consorcio created the Observatory of the Historic City, which uses an online GIS application, the Heritage Information System. This contains abundant archaeological, architectural and urbanistic information of the historic city buildings, as well as related plans and historic maps. The ‘building spreadsheets’ have been revised and extended for the review of PE-1, compiling more recent information regarding the residential and non-residential units and creating a digital database. 3.3.2. Revision of the special plan In September 2013, the council of Santiago initiated a process to contract the revision of PE-1,

which was adjudicated in November 2014 to the firm Thuban Estudio, S.L. The revision should include a Management Plan, a list of urban regeneration projects, and the preparation of ordinances and guidelines for the urbanisation and re-urbanisation of the historic core [27]. A main difference from the previous plan is the point of departure, which will change from a mere urban regeneration into a sustainable development perspective. PE-1 was addressed to improve the basic sanitary conditions, refurbishment and retrofitting the old buildings with minimum services (electricity, running water etc.), to make them more liveable preserving its heritage characteristics. The revision should go beyond those objectives, to tackle the conditions of the historic city from a holistic point of

view, focusing on sustainability according to its three main pillars: social, economic and environmental aspects [28]. The new PE-1 will be elaborated according to the current technologies required by the local regulations and city needs, focusing in the following: - integrating different tools of analysis to get a diagnosis of the territory considering sustainability aspects; - proposing ways to design a spatial model to orient spatial development towards sustainability, taking into account the rational use of the natural resources, improving resiliency and the welfare of present and future generations; - elaborating the “Plan de Ordenamiento Territorial Sustentable para la Ciudad Histórica de Santiago de Compostela” (Sustainable Territorial Ordering Plan for the Historic City of Santiago de Compostela). This plan will be systematically monitored by means of indicators, to allow for constant feedback. The plan will include specific targets, prioritizing and fostering the residential function of the historic city. To recover the historic city for its permanent residents will require innovative renovation techniques, for which the flexibility of the new PE-1 will play a key role for the refurbishment of buildings. The refurbishment of heritage and non-catalogued buildings must reach a morphological integration, without neglecting the archaeological aspects. In such way, the revision should approach the refurbishment and retrofitting interventions giving special attention to the heritage, accessibility, technology and environmental aspects, not merely to build technically-fit dwellings but to use it as an integration resource [28]. Similarly, the revision will promote a more socially compact, cohesive and efficient city, by recovering local economy strategies, diversifying functions and users. Such “forced” relationship between different uses and sectors will develop the city’s organizational complexity, to increase socialization and liveability levels. Specific issues as mobility are also considered in the revision. Although the historic city is mostly car free, the accessibility and connectivity with the rest of the city must be ensured. Frequent communication through public transport, the continuous activity of charge and discharge to supply the commercial business as well as spaces, where parking is allowed will be under new specific regulations. PE-1 will keep the preservation of the traditional orchards in the middle of the historic city, and other green areas in the outskirts, under obligation to be cultivated. The municipality grants the land rights to people who want to cultivate a little/small orchard. In such way, Santiago’s historic district maintains 50% of surface of green areas [29], a singular feature that contributes to its sustainability.

3.4. Energy context in Santiago de Compostela 3.4.1. Energy planning Santiago is a case study of three European projects: EFFESUS (Energy Efficiency in Historic Centres), FASUDIR (Friendly and Affordable Sustainable Urban Districts Retrofitting) and PLEEC (Planning for Energy Efficiency Cities). It is also present in several European initiatives for climate change and energy efficiency such as the 2020 Plan, the Spanish Network of Cities for Climate (Red Española de Ciudades por el Clima) and the Covenant of Mayors (CoM). Santiago’s signatory status on the CoM, however, is currently on hold because it did not fulfil the obligation to submit its Sustainable Energy Action Plan (SEAP).Furthermore, a simple analysis of the local policies shows that local planning has not had any consideration on energy consumption or the promotion energy efficiency. The 2008 General Plan is very weak in terms of environmental sustainability, and it does not mention concepts of climate change, renewable energy or energy efficiency. In 2012, the Council began a process to contract the preparation of a Master Plan for Energy Efficiency and Sustainability, whose draft dates from February 2015. This draft plan has also been submitted by the city as one of the deliverables of the PLEEC project, an Energy Efficiency Local Action Plan, which was not supposed to be contracted in advance tothe project, but to be the fruit of the many workshops and activities of the PLEEC project. The mentioned draft is quite disappointing, because from the four energy-consuming sectors: residential, business/ industry, municipal and transport, the plan only addresses the last two. Asked about this particularity, the local governments’ officials mentioned the little normative power that the Spanish planning system offers to local authorities to influence energy efficiency for these sectors, claiming that they have no more power than issuing recommendations to residents and firms [23]. The lack of local knowledge about the whole energy situation is further complicated by the lack of statistics about energy at local level. The several attempts to get detailed and updated figures on Santiago's energy supply and consumption at municipal and/or district level from Santiago city council or the incumbent energy provider were unsuccessful. To get an approximate idea of the energy context we first describe it at regional level: Galicia shows a high level of energy consumption (the total final energy consumption period increased by 38.2% in the 1997-2009); a high degree of energy dependency; and high levels of GHG emissions. Galicia transforms 9% of the primary energy of Spain, and imports 86% of the primary energy resources used. The level of selfsufficiency in Galicia was of 39.5%, decreasing to 23.6%

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

if oil products are considered [30]. Oil products constituted more than half of the total final energy consumption in Galicia, in 2009 (see Table 5). Table 5. Sources of final energy consumption in Galicia, in 2009 [31].

Type of energy

Consumption (Ktep)

(%) of consumption

Oil products

3431

53.60

Electricity

1768

27.60

Renewable energy

724

11.30

Natural gas

475

7.40

Most of the energy consumption in Galicia comes from the industrial sector. In 2009, it was 47.4% of its total final energy consumption, whereas the residential and public services together only consumed 19.5%. The same indicators for Spain were of 33.3% and 28% [31]. Table 6 provides some important energyrelated indicators that may help drawing a sketch of the energy conditions of Santiago, collected for the examination of 25 sustainable Spanish cities commanded by Siemens [32], but none of this figures was collected at municipal or city level. Santiago appeared as second best of the 25 examined cities in terms of residential energy consumption, according to figures at provincial level.

Table 6. Energy-related indicators of Santiago de Compostela [32].

Indicator Per capita CO2 emissions CO2 intensity Per capita energy consumption Energy consumption per GDP unit Renewable energy consumption

Value

Year

Level

11.50 Mt

2007

Data at regional level

365.5 Mt

2007

Data at regional level

24.71 GJ

2011

Data at provincial level

0.78 GJ

2011

Data at provincial level

High

2010

Data at regional level

3.4.2. Energy consumption in the historic centre The updated records (2008) of the Special Plan provide data on the type and uses of energy in the historic centre. They have recorded 10,071 units within the historic city, in which the residential use was predominant (77%) over commercial (10%), storage (5%), hotels (5%) and offices (3%) uses (see Figure 6, left). The sources of energy were mainly electricity (45%) and butane gas (27%), whilst the rest of 28% was shared between propane gas, natural gas, oil and wood, as it can be seen in figure 3 (See Figure 6, right).

Fig. 6. Main uses (left) and types of energy supply (right) in the historic centre of Santiago in 2008 [25].

Figure 7 gives an idea of the number of residential units and their different energy sources in four main energy consuming activities: (room) heating, hot water heating, cooking and cooling. Electricity is by far the most used energy source in all of them. Butane gas follows in heating and hot water. Oil and wood, and natural gas are second and third for cooking. Despite the mildness of the local climate, the spreadsheets recorded 179 residential units making use of electric cooling appliances in the historic centre.

Fig. 7. Types and uses of energy at residential level in the historic centre of Santiago [25].

5. CONCLUSIONS The previous sections have described the urban regeneration, urban planning and energy efficiency features of the city of Santiago de Compostela, as well as the continuous efforts of the city council and all stakeholders to maintain the spatial quality of the urban environment of its historic centre. An important consequence of these planning efforts to regenerate and maintain a lively and attractive historic core has been the consolidation of an urban pattern with the compactness and mixed functions of traditional Spanish urbanism and the preservation of green areas in and around the historic centre. The combination of such urban pattern and green areas with Santiago’s mild climate has led to a small ecological footprint and allow residential energy consumption (which unluckily could not be verified by statistical information). This way, yet without specifically mentioning energy efficiency or environmental sustainability in policy documents, the local urban policies have indirectly contributed to them. Despite the low residential energy consumption at provincial level, our own analysis of the energy situation of the historic buildings in the centre of Santiago has been useful to show that they have a low level of energy efficiency. On the other hand, the publicly financed interventions that have been carried out on the buildings’ envelopes through PE-1 related programmes, mainly focused on conservation and retrofitting, have progressed slowly in relation to needed improvements in energy consumption. The adaptation of the historic centre buildings to bioclimatic considerations is, therefore, the next important task to undertake by the city of Santiago de Compostela, and this constitutes no smaller task than the urban regeneration challenge, successfully tackled in the past decades by the city under the frame of PE-1. Analyses of local policy documents show that if previously sustainability concerns were completely absent in their texts, they seem to have become more important in the city plans. Such concerns are expressed in the revision of the Plan Especial PE-1 as general sustainability intentions, but not yet as specific measures to be implemented in terms of energy efficiency. Another evident issue of our study of energy planning in Santiago is the little awareness of the local society about the climate change challenges, as well as the limited commitment of the local government to sustainable energy issues, something put forward by the city’s conduct in the CoM and PLEEC project. These issues are complicated by the lack of precise knowledge about the local energy situation. Our successive efforts dedicated to obtain detailed information about the energy situation and consumption have been unsuccessful. None of the municipal or regional entities

consulted were able to offer figures about energy consumption at municipal and district level. This study has also shown that the local government is only giving attention to energy efficiency demands in case of its own buildings and municipal services and the transport sector, without considering residential and industrial sectors. To be able to face the climate change challenge, the local government needs to take a more proactive role, promoting environmental sustainability and energy efficiency for the whole city and not only of the sectors it can directly control. Part of this should be efforts to find the ways to use the planning system as tool instead as a constraint. According to the Spanish planning system, local governments may use Zoning Regulatory Ordinances as tools to regulate different issues in residential and industrial areas. As in the case of Tres Cantos, in Madrid, bioclimatic or environmental ordinances may be prepared to determine qualities of the built environment to adapt the city to energy efficiency requirements. The elaboration of tailor-made bio-climatic ordinances for the natural, climatic and built environment conditions of Santiago’s historic centre would be an important step forward in the desired direction. The most important problem in terms of energy planning is the insufficient knowledge about the existing energy situation, a great constraint to local action and to the necessary local discussion about the relevant measures to apply. The local government should begin with commanding a precise diagnosis of the whole energy situation at local level as essential step to prepare an action plan to respond to that situation. The “Sustainable Energy Action Plan” of Genoa and its methodology can serve as a useful reference for this. As Genoa, Santiago may use the many resources of Covenant of Mayors (CoM) to commit to local sustainable energy. Such proactive role for local energy planning evidently requires the commitment of the city of Santiago to energy efficiency goals, something that cannot be achieved without the contribution of all stakeholders. Thanks to the exceptional character of its historic core, Santiago counts with a great advantage in terms of stakeholders. Its historic centre has been object of successive successful regeneration interventions in different moments in the past, resulting in the evident improvement of its spatial quality, both in its constructive and sanitary conditions, becoming a model regeneration for other Spanish cities. One of Santiago’s major assets is the presence of the Consorcio, gathering the most important stakeholders, who work together for the common goals of preserving and maintaining the historic centre of Santiago. Thanks to the activities developed during the last decades, Santiago seems in a good position to undertake the adaptation of its historic centre to the new bioclimatic

Ana María FERNÁNDEZ-MALDONADO, Patricia LIÑARES MÉNDEZ, Esteban VIEITES MONTES Journal of SettlementsandSpatialPlanning, Special Issue, no. 5 (2016) 53-65 Planning for Resource Efficient Cities

considerations. For the environmental demands related to energy use, as well as the societal demands related to indoor comfort and the conservation of the historic heritage, the Consorcio fulfils an important role in developing pilot projects and developing local knowledge and training for the retrofitting of Santiago’s historic buildings. Regarding the supportive financing schemes considered crucial for works in heritage buildings, the Consorcio also has an accumulated experience on funding and subsidising them, although due to the Spanish economic crisis, additional funds and subsidies will be probably more difficult to get than before. The review of the Special Plan for the Historic City of Santiago will constitute an excellent opportunity for the city council to develop such a proactive role towards a sustainable type of urban regeneration, with a special orientation to energy efficiency considerations in the case of residential buildings. Everything considered, Santiago has more advantages than constraints to adapt itself, one more time, to the sustainability requirements of the 21st century. REFERENCES [1] Hartman, V. et al. (2013), Energy Efficiency and Energy Management in Cultural Heritage. Zagreb: UNESCO-UNDP. Retrieved from http://bib.irb.hr/ prikazi-rad?lang=en&rad=705241 [2]Mazzarella, L. (2015), Energy retrofit of historic and existing buildings. The legislative and regulatory point of view, In: Energy and Buildings, 95, pp. 23–31. [3] The Economist Intelligence Unit (2013), Investing in energy efficiency in Europe’s buildings: a view from construction and real estate sectors.London, New York, Geneva. [4] González, J. L. et al. (2013), Eficiencia energética y valores patrimoniales: conflictos y soluciones, In: Mora, S., Rueda, A., Cruz, P.A. [editors] Actas del congreso internacional sobre documentación, restauración y reutilización del patrimonio arquitectónico, pp. 449-455. [5] English Heritage (2010), Energy efficiency and historic buildings. Application of part L of the Building Regulations to historic and traditionally constructed buildings. www.english-heritage.org.uk [6] Herrera, D., Bennadji, A. (2013), Energy efficiency improvements in historic buildings. Developing an assessment methodology for the Scottish built heritage, In: Mora, S., Rueda, A., Cruz, P.A. [editors] Actas del congreso internacional sobre documentación, restauración y reutilización del patrimonio arquitectónico, pp. 497-504. [7] de Santoli, L. (2015), Guidelines on energy efficiency of cultural heritage, In:Energy and Buildings, 86, pp. 534–540.

[8] Fabbri, K., Zuppiroli, M., Ambrogio, K. (2012), Heritage buildings and energy performance: Mapping with GIS tools.In: Energy and Buildings, 48, pp. 137–145. [9] Historic Scotland (2012), A Climate Change Action Plan for Historic Scotland 2012-2017, Edinburgh. www.historic-scotland.gov.uk [10] Centro Architettura>Energia (2015), Mainly expertise areas and offered services http://www. unife.it/centri/centro/architetturaenergia-en/activities [11] Vieveen, M. (2013), Adaptive energy efficiency in historic buildings, In: Energieke Restauratie (pp. 108– 116). Groningen: Hanzehoogeschool Groningen. [12] Filippi, M. (2015), Remarks on the green retrofitting of historic buildings in Italy, In: Energy and Buildings, 95, 15–22. [13] Schenone, C., Delponte, I., Pittaluga, I. (2015), The preparation of the Sustainable Energy Action Plan as a city-level tool for sustainability: The case of Genoa, In: Journal of Renewable and Sustainable Energy, 7, Issue 3. 033126 [14] Higueras, E. (2009), La ordenanza bioclimática de Tres Cantos, Madrid. Últimos avances en planificación ambiental y sostenible, In: Revista de Urbanismo, 20 (2009) [15] Ciudad de Santiago (1799), Ordenanzas de policía de la Ciudad de Santiago. Santiago de Compostela: Imprenta D. Ignacio Aguayo. [16] Sicart, A. et al. (1990), Cartografía Básica de Santiago de Compostela. Santiago de Compostela: Consello da cultura galega. [17] Portela, E. (ed.) (2003), Historia de la ciudad de Santiago de Compostela, Santiago de Compostela: Universidade de Santiago de Compostela. [18] Beramendi, J. G. (2003), De la dictadura a la democracia (1936-2000), In: Portela, E. [editor] Historia de la ciudad de Santiago de Compostela, Santiago de Compostela: Universidade de Santiago de Compostela. pp. 559–630. [19] Liñares, P. (2012), Sustainable refurbishment of historic housing in Santiago de Compostela. PhD dissertation defended at the Universidad Politécnica de Madrid. [20] Estévez, X. (2001), Santiago de Compostela, conservación y transformación, In: Arbor, 170(671672), pp. 473–488. [21] Precedo, A., Revilla, A., Míguez, A. (2007), El turismo cultural como factor estratégico de desarrollo: el Camino de Santiago, In: Estudios geográficos 68, pp. 205–234. [22] UN-Habitat (2009), Protection and Rehabilitation of the Historical World Heritage, Santiago, Spain. Best practices data base. http://www.bestpractices.at/database/ (July 2014) [23] Fernandez Maldonado, A.M. (2015), Urban energy planning in Santiago-de-Compostela EU-FP7 project PLEEC, Deliverable 4.2 (4).

[24] Tomé Fernández, S. (2007), Los centros históricos de las ciudades españolas, In: Ería, Revista Cuadrimestral de Geografía, 72, pp. 75-88. [25] Concello de Santiago (1989), Plan especial de protección y rehabilitación de la ciudad histórica, Santiago de Compostela, 2 vols. http://www.santiagodecompostela.org/facendo_cidade /apartado.php?txt=fc_historica&ap=4&lg=cas [26] Consorcio de Santiago (2009), Actualización da información física da cidade histórica de Santiago de Compostela. Unidades parcelarias e edificatorias. [27] Concello de Santiago (2013), Pregos administrativo e técnico revisión Plan Especial PE1.Available at: http://www.santiagodecompostela.org /e_santiago/contratacion.php?id=1194&lg=cas (12-012015). [28] Concello de Santiago (2013), Propuesta de pliego de prescripciones técnicas para la redacción de la revisión del plan especial de protección y rehabilitación de la ciudad histórica de Santiago de Compostela (PE-1). URL:http://www.santiagodecompostela.org/facendo_c idade/apartado.php?txt=fc_historica&ap=4&lg=cas

[29] Martí, C. (1995), Santiago de Compostela: la ciudad histórica como presente, Ediciones Serbal, Consorcio de Santiago de Compostela. [30] Uría, P. (2012), Proyectos de eficiencia energética en la Administración Pública de Galicia, In: Blanco, F., Giz, J. M. [editors] Segundo congreso interuniversitario de mantenimiento sostenible y eficiencia energética – Santiago de Compostela, febrero de 2012, Universidade de Santiago de Compostela Publicacións. [31] Freire, E. (2012), Escenarios enerxéticos e optimización enerxética, In: Mantenimiento sostenible y eficiencia energética (pp. 45–59). Santiago de Compostela: Servizo de Publicacións e Intercambio Científico. [32] Análisis e Investigación (2012), 25 ciudades españolas sostenibles. Madrid: Siemens AG. Retrieved from http://www.ciudadesdelfuturo.es/las-25-ciudades espanolas-mas-sostenibles.php

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Industrial Energy Use and Interventions in Urban Form: Heavy Manufacturing versus New Service and Creative Industries Arie ROMEIN1 1 Delft University of Technology, Faculty of Architecture and the Built Environment, Department of Urbanism, Delft, THE NETHERLANDS E-mail: A.Romein@tudelft.nl

K e y w o r d s: energy efficiency, new industries, industrial symbiosis, planning policy, urban design

ABSTRACT

Now that it becomes obvious that disregarding the seriousness of climate change and the exhaustibility of fossil fuels would have severe and unpredictable impacts, improvement of the efficiency of urban energy consumption is of utmost importance. Hence, a rather diverse spectrum of policies to encourage this improvement has been put into practice. This paper focuses on the interrelations between interventions in urban form and improvements in energy efficiency of industries. These interventions, particularly spatial planning and urban design, are rare compared to other types of policies, in spite of their potentialities. This observation is illustrated by the case studies of two medium-size cities. Moreover, insofar as spatial planning aims to improve industrial energy efficiency, its implementation is limited to traditional and large-scale heavy industries at peripheral urban locations. Regarding new service and creative industries that tend to cluster in central city locations, both empirical evidence and policy practices are still missing.

1. INTRODUCTION Households, transport and industry are the three largest energy consumers in European cities. For the EU as a whole, industry is the third largest user after the residential and transportation sectors: in 2012 their proportional shares of consumption were respectively 32, 27 and 25 percent [1]. From a historic perspective, energy use by the industrial sector has fluctuated probably more than the use by the other two major consumers. The ‘classic’ Fordist large-scale and mass-production manufacturing industry was a large energy user approximately until 1970. At that time, a process of de-industrialisation started to accelerate across the western world, which went together with the decrease in industrial energy use. The following stage of post-industrial urban

development was characterised by a rapid growth of advanced producer services based on ICTs, employing a new middle class. Since the late 1990s, a process of urban reindustrialisation can be observed [2]. Rather than a return of the Fordist manufacturing economy, a substantially broader diversity of new types of industry has developed in cities. Scott (2012) distinguishes three main categories of leading industries in the current ‘cognitive-cultural economy’: advanced business and financial services, technology-intensive industrial ensembles, and cultural and creative industries [3]. Nevertheless, it is highly likely that a trend sometimes labelled reindustrialisation is being accompanied by increasing industrial energy use. In 2010, the EU decreed the EU 2020 longterm development strategy with the objective to transform Europe into a competitive, social and green

Arie ROMEIN Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 67-76 Planning for Resource Efficient Cities

market economy. Part of the strategy is the 20/20/20 objectives to decrease the emission of greenhouse gases by 20%, to generate 20% of total energy production in a sustainable way, and to increase energy efficiency by 20%, all taking 2020 levels compared to 1990. On a city level, three dimensions that impact on industrial energy consumption can be distinguished: implementation of (new) technologies, changes in behaviour, and urban form or spatial structure [4], [5], [6]. This paper focuses on the last of these dimensions, in particular on how policy makers can intervene in urban form by spatial planning and design to reduce energy use. Its objective is twofold: (1) to investigate the relations between urban form and industrial energy use and efficiency, and (2) to explore if and how urban spatial planning and design can play a role in the reduction of that use, i.e. by means of interventions in various features of the built urban environment, including location, density and compactness, mix and clustering of urban land-uses. The second question is examined by a brief review of literature on energy efficiency policies and by two cases of medium-sized cities in the EU, carried out in the EUFP7 project PLEEC [42] (see section 5 for details on methods). 2. GENERAL TRENDS ENERGY USE IN THE EU

INDUSTRIAL

The project ODYSSEE MURE explores trends in industrial energy use between 2000 and 2012 in the EU-member states plus Norway [7]. Ten heavy industries were included in the project, consisting of very large-scale firms that process raw materials or produce semi-finished and capital goods: chemicals, paper, steel, machinery, food, non-metallic, nonferrous, transport vehicles, textile and wood. Between 2000 and 2010, the final energy use by these industries decreased by 12% as a share of total national consumption in these 29 countries together. In absolute figures, this implies a net saving of 38 Mtoe (Million tonnes of oil equivalent). Primarily accountable for this overall trend are structural changes in production, for instance a shift from bulk consumer chemicals towards less energy-intensive light chemicals (like cosmetics and pharmaceuticals) and cyclical impacts of the economic downturn at the end of the past decade. In 2012, the minimum and maximum values of industrial energy use as a proportion of national total were 10% in Cyprus and 47% in Finland. Industry in Finland’s neighbouring Nordic country Sweden is also a major energy user (37%). This reflects the importance of the energy intensive forest industry, especially paper and pulp, and steel production in both countries [8], [9]. Due to the decrease of proportional energy use by the ten basic industries, but particularly chemicals and metals, the overall energy efficiency in the 29 countries improved rather rapidly, by about 1.5%/year between

2000 and 2012. Since 2009 however, efficiency improvements slowed down due to the economic downturn, which resulted in industrial plants operating at less than full capacity. Statistical data on energy use by the office- and workshop-based new types of cognitive-cultural industries are not available for several reasons. In the case of cultural and creative industries, the groups that are named in the various working definitions of these industries - there is still no generally accepted definition and classification - are barely distinguished separately in energy statistics. Furthermore, these new industries have received a lot of attention by academics, urban planners and policy makers over the past twenty years. These have focused on many issues, such as economic performance, innovativeness, geographical clustering, unequal labour conditions, but still have a blind spot for their energy use. Nevertheless, the reindustrialisation of urban economies is obviously accompanied with increasing energy use, mainly electricity. Many of these new industries are ICT-based in their working processes: upper-tier occupations in the cognitive-cultural economy labelled by Scott (2012) are highly ‘digitized’ [3]. The title of a publication by Mills (2013) - ‘The Cloud Begins With Coal’ -, illustrates that ICT is a major energy user [10]. Each activity in the realm of the internet costs energy, and new industries contribute significantly to the rapid growth of the global amount of these activities. As Mills comments, “the world’s ICT-ecosystem uses an amount of electricity annually equal to all the electric generation of Japan and Germany combined” [10, p. 4], and “if the Cloud were a country, it would have the fifth largest electricity demand”: after the US, China, Russia and Japan but before all the EU countries [10, p. 15]. In conclusion therefore, recent trends of energy use by the ten heavy basic industries in the EU move towards the objective of EU 2020, due to both structural and cyclical processes. Against this trend, however, the recent growth of new types of industries in cities is being accompanied by increasing energy use. However, for a detailed picture of the contribution of the industrial sector as a whole to the EU 2020 objectives, data is still missing. 3. RELATION BETWEEN URBAN FORM, URBAN PLANNING AND INDUSTRIAL ENERGY EFFICIENCY In a study on the impacts of urban density on energy consumption of the service sector, Morikawa (2012) comments: “Many studies suggest that energy consumption and CO2 emissions are lower in denser cities. However, previous studies have been confined to the gasoline consumption of vehicles or the energy usage of households. Studies on the commercial sector, including retail and service industries, are scarce” [11,

Industrial Energy Use and Interventions in Urban Form: Heavy Manufacturing versus New Service and Creative Industries Journal Settlements and Spatial Planning, Special Issue, no. 5 (2016) 67-76 Planning for Resource Efficient Cities

p. 1619]. This scarcity also holds for studies of the relationships between industrial energy use and the urban form, with density as one of its features. Nevertheless, it can be reasoned that this relationship is a function of type of industry, scale of industrial establishment and location of industrial firms, both visà-vis one another and within the urban fabric as a whole. The location of industries in central as opposed to peripheral areas of the city is accompanied with obvious differences in types and scales of industrial establishments. The usually very large-scale establishments of basic heavy industries are, in general, no longer found in inner city areas. Instead, these are the areas of the city where the most part of the offices and workshops of the post-industrial economy and the recent process of reindustrialisation tend to cluster. Whereas technology-intensive industrial ensembles are situated at inner city fringes or in greenfield areas, in knowledge locations like campuses and science parks, the shiny offices of advanced producer services and workshops of cultural and creative industries tend to cluster first and foremost in the cores of cities, in particular larger ones, although in different districts [3], [12], [13].

fabric of inner-cities, i.e. at short mutual distances. Furthermore, the specific urban form of the area limits their use of motorised transport, and hence of fuel, for interactions within their social and business-related networks. Using cars is even time- and cost-inefficient because of the short distances and parking problems to visit each other in workspaces, or meet each other at the inner city’s ‘third places’ - cafes, clubs, parks – which acts as anchors of the community of creatives. Moreover, the ‘creatives’ in these industries consider cycling cooler than driving – if the distance is too long to walk. Short distances between buildings (working spaces) is a dimension of the compactness of the urban form of the areas where cultural and creative industries tend to cluster. Two other dimensions of compactness – street lane widths and building height - also matter with regard to energy efficiency (Fig. 1).

3.1. Central locations The explanations why cultural and creative production, consumption and spectacle cluster, and particularly why they do so in centrally located locations, are various and interact with one another. Among them, it is worth mentioning: the typical small or micro-size enterprises with high level of specialization and crucial social networks; the high density and diversity of people engaged in production and consumption; the presence of ancillary services and urban amenities; and last but not least a preference for old, often obsolete industrial buildings for their activities [13], [37], [38], [41]. Both their typically small size, the significance they attach to face-to-face contact, and their financial inability to rent an office or workshop for themselves makes many of these firms colocate in multi-tenant buildings. This co-location allows for sharing of heating, cooling, lighting and energy uses like refrigeration, hence leading to less energy use per capita than working in separate buildings because the volume in cubic meters per capita that has to be heated or cooled is smaller. For the comparable situation of multi-family dwellings, Ewing & Rong (2008) observe that “an otherwise identical household consumes 54% less heating energy and 26% less cooling energy” than in single-family dwellings [1, p. 16]. Much more, the multi-tenant buildings where cultural and creative industries tend to cluster are usually located within the dense and fine-grained urban

Fig. 1. Urban form and energy use in buildings ([1, p. 10] adapted from [36]).

Their impacts are not universal however, but depend on the climate in the area. Besides, some impacts cause rebound effects. In hot and dry climates, narrow streets and high buildings increase the level of shading of buildings across the street from each other, hence diminishing urban heat island effects and demand for cooling. This may offset, however, the benefit of natural ventilation by wind that increases with the width of the street. In cold climates on the other hand, increasing solar access to buildings by means of wide streets and low buildings is essential, especially in winter, to decrease energy use for heating. But this may be offset by more exposure to cold winds in wider streets [1].

Arie ROMEIN Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 67-76 Planning for Resource Efficient Cities

Furthermore, the orientation of buildings towards the cardinal directions also influences the demand for energy, in terms of solar access and ventilation. Randolph and Masters (2008) observe that demand for heating diminishes by some 20% in case the houses are oriented to the south – with an east-west roof peak - compared to orientation to the west or the east [1]. Urban form features related to building orientation are in the lay-out of both individual plots and street networks, i.e. themes of urban design. Finally, covering the open space between buildings with trees influences the need for heating and cooling due to their effects on modifying wind flow for ventilation, blocking of cold winds and shading of buildings. In addition to their situation and density, specific features of trees, e.g. height, crown shape and deciduousness, also matter [1]. 3.2. Peripheral locations As mentioned, large-scale heavy basic industries are mostly found at the edge or outside the built-up areas of cities. The reasons why these are located in such peripheral parts of urban areas are mostly environmental and economic, ranging from nuisance and environmental regulations to lower land costs and better accessibility by car and lorry in comparison with inner city locations. The interrelated concepts of industrial ecology [9], industrial symbiosis [14], [15], [16] and eco-industrial park [17] explain why these industries are located in symbiotic clusters based on spatial proximity. Leaving aside the distinctions between these three concepts, their shared essence is to improve the efficiency of use of both energy and materials based on ‘roundput’ between firms. Thus, symbiotic firms form networks of suppliers and consumers that mutually exchange waste materials and waste (residual) energy, often by-products of production processes. A clear example is the graph of energy and material flows in the Kymi eco-industrial park of forestry industry, Finland, elaborated by Sokka et al (2011). The centre of the park’s ‘symbiosis boundary’ consists of a pulp and paper plant. This plant includes a water purification plant and a wastewater treatment plant of its own, and is further surrounded by three chemical plants (chlorine dioxide, calcium carbonate and hydrogen peroxide), a wastewater treatment sewage plant, a power plant and a local energy plant [15]. The graph distinguishes a total of twenty-three flows of energy sources (heat, steam, and electricity) and materials (different types of waste, water, wastewater and outputs of the chemical plants) between the plants, but in a vast majority to and from the pulp and paper plant. Besides, three types of waste flows are dumped in landfills. The benefits of these exchanges are both environmental and economic. Environmentally, they

achieve reductions of consumption of ‘virgin’ raw materials and fuel, of waste production, and of greenhouse gas emissions. Instead of dumping waste materials and greenhouse gases into the environment, these are recycled within the networked system. Various authors present quantitative estimations of the efficiency gains of industrial symbiosis up to about 50% of virgin fuel use and emissions by comparing these with the hypothetical reality of non-existent symbiotic relationships [9], [15], [18]. Economically, spatial proximity in these systems saves expenses for road transport and for the construction of networks of pipes and cables, and limits energy loss over distance. Further, on a company level, gains include reduced costs for waste management, for investment in own energy supply installations, for environmental taxation and last but not least for purchase of material and energy - supplies of waste may be charged for but these are usually cheaper than virgin materials from elsewhere. In addition to exchanges within the symbiotic system, these are often connected to external actors, such as local towns, by upstream and downstream effects. Upstream for instance, savings can be achieved on transport of virgin fuel from elsewhere and by incinerating these towns’ municipal and household waste. Downstream, typical combined heat and power (CHP) plants based on exchange of different types of energy and material can supply towns’ district heating (DH) systems and provide power to electricity grids. Korhonen (2001) estimates a fuel efficiency of CHP plants as high as 85 to 90% [9]. On the other hand, since heat can only be transferred over relatively short distances – Korhonen mentions a maximum distance of 10 to 20 km – industrial symbiosis that includes this type of downstream effect works best at the geographical scale of a city and its immediate hinterland or, at the most, of a dense urban region [9]. It can be concluded that the relationships between urban form and industrial energy use differ between the two types of location and highly different types and scales of industries discussed above. In general terms, urban form has an impact on industrial energy use by new industry clusters in central locations, whereas the reverse impact is more common in peripheral locations. The clustered symbiotic systems of heavy industry plants are large in size and typically established in non-urban open land, hence impacting on urban form rather than the other way around. 4. URBAN FORM AND URBAN PLANNING IN INDUSTRIAL ENERGY-EFFICIENCY POLICIES Various authors comment that industrial energy use and efficiency policies serve environmental and economic objectives [11], [14], [19], [20], [21], [22]. Facing climate change with apprehension, these policies

first and foremost aim to reduce the emission of greenhouse and pollutant gases that are primarily held responsible for climate change. Scientific evidence now makes it obvious that ignoring the causes and seriousness of climate change and continuing business as usual would have severe, and partly still unpredictable effects on natural systems and human ways of life. Secondly, improved energy efficiency also aims to contribute to energy security and lowering of costs for both energy imports and industrial production. Given growing scarcity and higher prices of fossil fuels, it becomes urgent to include the utilization of renewable energies, defined by Faller (2014) as “energy generated out of resources that are not (necessarily) depleted, as long as the replacement rate is not exceeded by usage [23, p. 890]. A third objective cleaner air due to reduced emissions - is both environmental and economic in nature as it contributes to the quality of life as an amenity of the city, attracting highly skilled creatives and business professionals, and investors in their wake [24]. In a broader sense, these objectives all fit in the “growing appetite for principles of fairness, human solidarity and ecological sustainability” that are at the root of a new kind of economy [25, p. 7541]. To achieve such objectives, a diversity of planning and policy measures and instruments have been outlined and implemented, some national and others on regional, urban or community scales. Thollander et al. (2007) categorize these into three types: economic, administrative and informative policy instruments [26]. The economic type includes financial and fiscal instruments like pricing, taxation, duties and subsidies. The aims of this type are to discourage the use of polluting and non-renewable fossil fuels and promote a shift to bio energy and renewable energies. In addition, these economic instruments can aim to accelerate the introduction of new, energy-saving technologies. In particular, SMEs may require some financial support to introduce such technologies because they entail large investments and long payback periods. The second type, administrative instruments, includes rules, regulations and acts, for instance on emissions. Progressive taxation as part of these instruments makes them economic, as well. Finally, informative policy instruments are meant to enhance information and knowledge about opportunities to reduce energy consumption. Energy audits for instance, identify such opportunities. Audits are primarily organised for SMEs which have limited resources to employ full-time experts in these fields [27]. In this respect, it needs to be commented that most instruments serve a general societal interest but that company managers ultimately decide on efficiency measures, unless it concerns compulsory or inevitable instruments. In addition, some instruments may cause

feedbacks that affect the effectiveness of others. For instance, the use of waste material from the forest industry for power plants in industrial symbiosis systems saves on costs but might increase CO2 emissions. The three types of policy instruments target technology and behaviour driven efficiency potentials [4]. In contrast, urban spatial planning and design do not play an evident role in policies to improve cities’ energy efficiency. Two possible hypotheses can be drawn from this observation: urban form does not really matter, or actual policies leave a valuable policy issue to improve industrial energy efficiency unutilized. It can be argued that the first hypothesis does not hold. Section 3 makes obvious that there are opportunities for urban planning and in particular for urban design to increase the energy efficiency of new industry clusters. These opportunities are, nevertheless, limited for two reasons. First, urban design can only intervene in the location and orientation of buildings and buildings’ immediate surroundings, not in the energy-consuming production processes of these new industries. Secondly, the people working in these industries, in particular in cultural and creative branches, tend to cluster in specific parts of inner cities, especially because of their preference for existing old buildings with their typical design and atmosphere of manufacturing industries, and for existing urban environments due to their historic nature, place qualities and amenities [37], [39], [40], [41]. Hence, directed interventions by means of urban design or spatial planning have to be very wellconsidered to avoid backfiring on the attractiveness of buildings and inner city environments for these industries. On the other hand, the development of clustered symbiotic systems of large-scale heavy industries that spring up in non-urban, former open land is usually based on top-down urban, regional or even national policies, with urban planning to take the lead with regard to their specific location features. 5. TWO CASE STUDY CITIES The former section suggests that the second hypothesis - actual policies leave urban form unutilized as a valuable policy issue to improve cities’ industrial energy efficiency - can be accepted. To present some more evidence for that conclusion, the hypothesis will be ‘tested’ by the case studies of two medium-sized cities in very different regional contexts: Stoke-on-Trent (249,000 people in 2015) in the west Midlands, UK, and Jyväskylä (136,000) in central Finland. Both have a history as major manufacturing centres, but Jyväskylä has been more successful in the imperative transformation towards a ‘post-post industrial’ economy, i.e. the development of new industries.

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5.1. Methodology The case-studies of Stoke-on-Trent and Jyväskylä are two out of a total of six that were addressed in the EU FP7 project PLEEC [4], [42]. The other four are of Santiago de Compostela (Spain), Eskilstuna (Sweden), Turku (Finland) and Tartu (Estonia). These case-studies are not exclusively about industrial energy use, but also about energy use by buildings, most in particular residential buildings, and transport, about urban and energy planning, and to a lesser extent also about energy production. Stoke-on-Trent and Jyväskylä are selected to be presented in this paper first and foremost for a practical reason, i.e. that I came to know these two cities best throughout the project. Further, these two cities are relatively well comparable because they were both major manufacturing centres in the past and now face the necessity to transform towards a ‘post-post industrial’ economy, i.e. the development of new industries. The realization of the six case-studies was equally divided between researchers of the Delft University of Technology (DUT) and the University of Copenhagen (UCPH), and was elaborated in a similar way according to a model that consisted of three tiers. First, a template on content was discussed between the researchers at the backdrop of the first data collected about the cities. Second, study visits to the cities were prepared with respect to key issues, beginning with discussions at a joint PLEEC meeting between researchers and stakeholders of the cities in March 2014. Third, the study visits were carried out by these researchers. The visits included in particular interviews, meetings and workshops with local hosting stakeholders and series of interviews with public policy makers, urban and regional, and representatives of private companies and civil society organisations. Finally, local stakeholders reviewed the draft versions of the case study reports written by the researchers Processing of their comments resulted in the final case study reports of Stoke-on-Trent [28] and Jyväskylä [33] 5.2. Stoke on Trent (UK) Stoke-on-Trent in the county of Staffordshire, West Midlands, is located in the heartland of the first Industrial Revolution that dates back to the 18th century. Based on the presence of a unique combination of raw materials, such as coal, iron ore and clay, an industrial history of mining and ceramics developed far into the 20th century. Known as The Potteries, the Stoke-on-Trent area became the cradle of various internationally famous ceramics brands. Due to the gradual exhaustion of raw materials and increasing competition, mainly from the Far East, the ceramics industry declined towards the end of the 20th century

[28], [29]. The size of the industrial workforce has decreased from about 70,000 in the heydays to onetenth of this number today. But due to recent modernization of ceramics, including an educational branch to develop and implement new technologies and design, it has recovered as a significant industrial sector in the area – along with engineering. Nevertheless, despite a certain remaining significance of traditional manufacturing industries, transformation towards a post-industrial service economy is considered a major challenge for economic development in Stoke-on-Trent. This transformation faces some structural problems however. The main one is an overall low level of human capital inherited from the production structure of The Potteries, characterised by low skill levels, low industrial wages, and limited investments in human resource improvements. Valorisation of human capital by means of training and education is indeed regarded as a challenge. Attracting high quality human capital from elsewhere proves difficult due to the lack of diversity of high quality urban amenities in a dense city centre atmosphere. Instead, a typical feature of the city’s urban form is its historically evolved polycentric structure composed of six towns with high levels of localism. It lacks a single focal point for investment in high-level services for a sizeable urban market area. There is an urban planning programme to transform the town centre of one of the six towns, Hanley, into the first level service centre for the conurbation as whole, but the status of the programme is as yet unclear. Although incomparable with the heydays of The Potteries in ‘Smoke-on-Trent’, its current manufacturing industry is still a large-scale consumer of energy. This provides a strong argument for efficient use of energy sources, preferably low carbon. However, it also produces, in spite of limited clustering, excess heat in a quantity that made it possible for Stoke-onTrent to become the first UK city to start a DH system. The innovativeness of the city in this respect (within the UK) is also indicated by the founding of a think tank for energy efficient heating systems and by the decision to invest in expansion of the DH network fuelled by local geothermal energy. However, relatively low land values and the lack of an attractive city centre for residential developments, accompanied by the polycentric configuration, do not help incentivise the densities that make investing in DH beneficial for private investors. There is scope, then, for interventions in the polycentric urban conurbation of Stoke-on-Trent by spatial planning to improve industrial energy efficiency. These should focus on modifying the favoured mixeduse development policies that hamper the development of large-size areas of industrial zoning, and on the large investments and long-term effective political and societal commitments required to develop Hanley into its single first level service centre. But even if these immense objectives can be realised, the resulting

‘engineered’ city centre misses much of the vernacular qualities of place that define popular residential and new industry business locations. The main statutory planning document for the future development of Stoke-on-Trent, the Core Spatial Strategy, and its ‘vehicle’ in the making, the Local Plan, aim to encourage economic, social and environmental sustainability. Energy efficiency is a top priority: a comprehensive policy framework based on several multi-actor governance arrangements, both publicpublic and public-private, on local and regional scales has initiated quite a few large-scale schemes. These schemes’ objectives are primarily economic and social rather than environmental and focus on energy use and efficiency in behaviours and buildings for companies, organisations and households. In line with the above mentioned typology of Thollander et al. (2007) these schemes are based on economic, administrative and informative instruments rather than on spatial planning policy [26]. A rare exception is related to transport planning, namely the extension of the cycling infrastructure. With regard to industrial symbiosis, the Strategic Economic Plan of the Stoke-on-Trent and Staffordshire Local Enterprise Partnership – a partnership formed in 2011 to bring businesses and local authorities together to drive economic growth and create jobs [30] - seek to maximise clusters of manufacturing and engineering. Overall, however, commitment to use urban planning to improve industrial energy efficiency is not a big issue in Stokeon-Trent. 5.3. Jyväskylä (Finland) The local economy of Jyväskylä has gone through a process of structural transformation during the past three decades. It has witnessed a decrease of its traditional manufacturing industry (including the largescale sectors of metal industry, forest industry, paper manufacturing and paper machinery production) and has evolved more and more towards a service economy. The main component of this restructuring is the development of an ICT cluster that was initiated already in the 1960s [31]. Linnamaa (2002) analyses how this cluster has evolved over the decades from some first seeds without any conscious strategic planning towards its current key-role in the explicit long-term policy to transform the city towards a growth centre of high-tech industries [31]. Hence, rather than a ‘stand-alone’ production cluster, it “can be considered a leader of the [economic, author’s addition] development of the Jyväskylä urban region in recent years” [31, p. 8] through linkages with various other industrial branches. This evolution of the ICT cluster over 50 years has been accompanied by gradual but concerted and

dedicated development in knowledge institutions such as University of Jyväskylä and JAMK University of Applied Sciences (former Jyväskylä Polytechnic), and particularly in the foundation of new Faculties. Analogously, an institutional framework of intensifying co-operation between a diversity of triple helix partners in knowledge institutions, public policy and private business has been developed. In addition, a Nokia R&D Centre in the city was an important stimulus between its founding in 1998 and closing ten years later. In spite of the general trend of decline, several traditional manufacturing industries, including the sizeable forest industry, have modernised and recovered economically. It is highly likely that this has been accompanied with a decrease in industrial energy use since the new knowledge-based industries that replace traditional manufacturing are typically less energy intensive. Moreover, energy efficiency technologies have been introduced in the production processes of the remaining traditional industries. These industries are located outside the built-up area of Jyväskylä, but companies within the city benefit from their presence by supplying services, technologies and equipment. A major example is Valmet: since its start as a manufacturer of paper industry machinery in the 1950s in a former artillery works in Jyväskylä, it has developed into a multinational company that develops and supplies technologies, automation and services to pulp, paper and energy industries [32]. A system of industrial symbiosis based on the forest industry’s by-products, along with a significant amount of wood fuel procured from forests, are major suppliers of non-fossil fuel for CHP and DH networks that have been developed since the 1980s. The fuel mix of these networks shows an increasing share of renewable sources (also biogas next to wood fuels) and a decreasing share of peat, coal and oil. The aim is to increase the share of renewable fuels up to 70% in 2020. It is Finland’s current strategy to expand the area of managed forests in order to produce wood fuels but also to increase the country’s net carbon sink capacity. For, the use of wood fuels is not carbon neutral. Both local governments and the Finnish national government have already been committed to the compact city concept as a leitmotiv for land use (and transport) planning for some 25 years. Energy efficiency goals, including development of commercially profitable CHP and DH networks, are explicitly incorporated into Jyväskylä’s planning policy to control its rather compact building stock, in particular in its inner city. In addition, it is now an explicit policy objective to invest in a viable pedestrian and cycling network, again particularly for the city centre, to curb car-use. In spite of the compact city policy, suburban sprawl takes place as an unintended consequence of the

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attraction of skilled professionals for hi-tech industry with car-oriented, suburban residential demands. The 2012 Master Plan aims to concentrate part of the volume of suburbanisation in new, concentrated residential developments where options of mobility and services are, or can be easily made, available at reasonable distances. Nevertheless, the present Structure Plan aims “to maintain compactness as far as possible and to rationalise and concentrate land-use and transport within the existing pattern of centres, prioritising the main centre” [33, p. 16]. This priority points at monocentricity next to compactness as a spatial planning objective. Although it is not a primary objective of the policy to maintain a compact and monocentric city, it fits well with the city’s economic development policy to grow high-tech and service industries. Such a planning approach can create the dense, diversified and cycle friendly central city environment that appears favoured as a residential and business start-up location by students and graduates in urban population. There is no reason to suppose that the preferences of students and graduates in Jyväskylä are an exception. Spatial planning has also enabled the development of innovative science park-like clusters of education and knowledge institutions and high-tech sector ICT firms. There are opportunities for exchange of waste energy and material in these clusters, although limited. Overall, urban spatial planning and design has impacted upon improvement of industrial energy efficiency in Jyväskylä. However, these impacts are mostly indirect or unintentional: energy efficiency objectives are also found in policies other than those of spatial planning, and are often combined with or subordinated to economic objectives, social considerations (e.g. high-quality housing in concentrated new residential developments) and image building (‘Jyväskylä as centre of knowledge and knowledge-based industries’). 6. CONCLUSION In a world-wide overview of energy efficiency and conservation policies, Tanaka (2011) takes as a basic assumption that “[i]ndustry’s large energy use and vast potential for energy savings make it an attractive target for improving energy security and climate mitigation through increased energy efficiency” [21]. Indeed, although industrial energy consumption decreased during the process of deindustrialisation in the 1960s and 1970s in Western economies, it has increased again since the end of the 1990s with the emergence of new hi-tech, cultural and creative industries, and advanced producer and financial services.

This paper hypothesises that urban spatial planning and design policies can play a significant role in improving energy efficiency of industrial activities in both traditional and new industries. Overall however, despite industry is one of the three largest urban energy consumers, energy efficiency policies in practice appear to focus considerably and more explicitly on the other two main consumers in cities - the residential and, in particular, the transport sector. Moreover, relatively little importance is given in practice to spatial planning and design of urban form as policy fields to improve industrial energy efficiency. In the two presented case-studies, this observation is most obvious in Stoke-on-Trent but also holds to some extent in case of Jyväskylä. The available studies of energy consumption and efficiency of industry deal almost exclusively with traditional manufacturing industries. In contrast, an internet search for literature on the energy use of new cultural industries has yielded only one journal paper, about greenhouse gas emissions by the music industry in the UK [34]. It is suggested by several authors that a transformation towards an urban economy with growing service and creative industries is accompanied by a reduction of energy use [11,35]. However, evidence that supports this suggestion is still almost nonexistent. REFERENCES [1] Meijers, E. (2015), Urban planning and energy use in buildings, In Meijers, E., A. Romein, D. Stead, N. B. Groth, C. Fertner and J. Große (2015), Thematic report on urban energy planning: Buildings, industry, transport and energy generation. EU-FP7 project PLEEC, Deliverable 4.3. Retrieved from http://www. pleecproject.eu/ [2] Hutton, Th. A. (2010), The new economy of the inner city: restructuring, regeneration and dislocation in the 21st century metropolis, Routledge (Routledge Studies in Economic Geography). London & New York. [3] Scott, A. J. (2012), A world in emergence. Cities and regions in the 21st century, Edward Elgar Publishers Cheltenham (UK) & Northampton (MA). [4] Meijers, E. et al. (2015), Thematic report on urban energy planning: Buildings, industry, transport and energy generation. EU-FP7 project PLEEC, Deliverable 4.3. Retrieved from http://www. pleecproject.eu/ [5] Taibi, E., Gielenand, D., Bazilian, M. (2011), The potential for renewable energy in industrial applications. Renewable and Sustainable Energy Reviews, vol. 16, pp. 735-744. [6] Stoeglehner, G., Niemetz, N., Ketti, K-H. (2011), Spatial dimensions of sustainable energy systems: new visions for integrated spatial and energy

planning, Energy, Sustainability and Society, issue 1-2. Retrieved from http//www.energsustainsoc.com/1/1/2 [7] ODYSSEE MURE (2012 and 2014), Energy efficiency trends in industry in the EU, Retrieved from http://www.odyssee-mure.eu/publications/efficiencyby-sector/industry/ [8] Nyström, I., Cornland, D. W. (2002), Analysing industrial energy use: a case study of the Swedish forest industry, International Journal of Energy Research, vol. 26, pp. 431-453. [9] Korhonen, J. (2001), Regional industrial ecology: examples from regional economic systems of forest industry and energy supply in Finland, Journal of Environmental Management, vol. 63, pp. 367-375. [10] Mills, M. P. (2013), The cloud begins with coal. Big data, big networks, big infrastructure and big power. An overview of the electricity used by the global digital ecosystem. Retrieved form http://www.techpundit.com [11] Morikawa, M. (2012), Population density and efficiency in energy consumption; an empirical analysis of service establishments, Energy Economics, vol. 34, pp. 1617-1622. [12] Hutton, Th. A. (2004), The new economy of the inner city, Cities, pp. 89-108. [13] Hutton, Th. A. (2016), Cities and the cultural economy. Routledge, London & New York. [14] Jacobsen, N. B. (2006), Industrial Symbiosis in Kalundboirg, Denmark. A quantitative assessment of economic and environmental aspects, Journal of Industrial Ecology, vol. 10, issue 1-2, pp. 239-255. [15] Sokka, L., Pakarinen, S., Melanen, M. (2011), Industrial symbiosis contributing to more sustainable energy use – an example from the forest industry in Kymenlaakso, Finland, Journal of Cleaner Production, vol. 19, pp. 285-293. [16] Chertow, M. R., Rachel Lombardy, D. (2005), Quantifying economic and environmental benefits of co-located firms, Environmental Science & Technology, vol. 39, issue 17, pp. 6535-6541. [17] Côté, R. P., Cohen-Rosenthal, E. (1998), Designing eco-industrial parks: a synthesis of some experiences, Journal of Cleaner Production, vol. 6, pp. 181-188. [18] Eckelman, M. J., Chertow, M. R. (2013), Life cycle energy and environmental benefits of a US industrial symbiosis, International Journal of Life Cycle Assessment, vol. 18, pp. 1524-1532. [19] Ozturk, H. K. (2005), Energy usage and costs in textile industry: a case study for Turkey, Energy, vol. 30, pp. 2424-2446. [20] Thambiran, T., Diab, R. D. (2011), Air quality and climate change co-benefits for the industrial sector in Durban, South Africa, Energy Policy, vol. 39, pp. 6658-6666.

[21] Tanaka, K. (2011), Review of policies and measures for energy efficiency in industry sector, Energy Policy, vol. 39, pp. 6532-6550. [22] Saygin, D. et al. (2013), Linking historic development and future scenarios of industrial energy use in the Netherlands between 1993 and 2040, Energy Efficiency, vol. 6, pp. 341-368. [23] Faller, F. (2014), Regional Strategies for renewable energies: development processes in Greater Manchester, European Planning Studies, vol.22, issue (5), pp. 889-908. [24] Florida, R. (2002), The rise of the creative class and how it's transforming work, leisure, community and everyday life, Basic Books, New York. [25] Mulugetta, Y., Jackson, T., van der Horst, D. (2010), Carbon Reduction at Community Scale. Energy Policy, vol. 38, pp. 7541-7545. [26] Thollander, P., Danestig, M., Rohdin, P. (2007), Energy policies for increased industrial energy efficiency: evaluation of a local energy programme for manufacturing SMEs. Energy Policy, vol. 35, pp. 57745783. [27] Trianni, A. et al. (2013), Empirical investigation of energy efficiency barriers in Italian manufacturing SMEs. Energy, vol. 49, pp. 444-458 [28] Rocco, R. (2015), Urban energy planning in Stoke-on-Trent. EU-FP7 project PLEEC, Deliverable 4.2 (5). Retrieved from http://www.pleecproject.eu [29] Sekers, D. (2013), The Potteries, Shire Publications, Oxford. [30] http://www.stokestaffslep.org.uk/ [31] Linnamaa, R. (2002), Development process of the ICT cluster in the Jyväskylä urban region. Retrieved from http://www.jyvaskyla.fi/hallinto/ kirjoituksia_kaupunkipolitiikasta/ 2002/0114 [32] http://www.valmet.com/ [33] Read, S., Hietaranta, J. (2015), Urban energy planning in Jyväskylä. EU-FP7 project PLEEC, Deliverable 4.2 (6). Retrieved from http://www.pleecproject.eu. [34] Bottrill, C., Liverman, D., Boykoff, M. (2010), Carbon soundings: greenhouse gas emissions of the UK music industry. iopscience.iop.org, Environmental Research Letters 1-8. [35] Ji, X., Chen, Z., Li, J. (2014), Embodied energy consumption and carbon emissions evaluation for urban industrial structure optimization, Earth Science, vol. 8, pp. 32-43. [36] Ko, Y. (2013), Urban form and residential energy use: a review of design principles and research findings. Journal of Planning Literature, vol. 24, pp. 327-351. [37] Smit, A. J. (2012), Spatial quality of cultural production structures. Groningen, University of Groningen. PhD Thesis. [38] Martins, J. (2015), The extended workplace in a creative cluster: exploring space(s) of digital work in

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Silicon Roundabout. Journal of Urban Design, vol. 20, pp. 125-145. [39] Drake, G. (2003), ‘This place gives me space’: place and creativity in the creative industries. Geoforum, vol. 34, pp. 511-524. [40] Clare, K. (2012), The essential role of place within the creative industries: boundaries, networks and play. Cities. [41] McCarthy, J. P. (2006), The application of policy for cultural clustering: current practices in Scotland. European Planning Studies, vol. 14, pp. 397-408.

[42] Kullman, M., Campillo, J., Dahlquist, E., Fertner, C., Giffinger, R., Große, J., Groth, N.B., Haindlmaier, G., Kunnasvirta, A., Strohmayer, F. & Haselberger, J. (2016), Note: The PLEEC project – Planning for Energy efficient Cities, Journal of Settlements and Spatial Planning, Special Issue no. 5, pp. 89-92.

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

The Inefficiencies of Energy Efficiency: Reviewing the Strategic Role of Energy Efficiency and its Effectiveness in Alleviating Climate Change Stephen READ1, Erik LINDHULT2, Azadeh MASHAYEKHI1 1

Delft University of Technology, Faculty of Architecture and the Built Environment, Department of Urbanism, Delft, THE NETHERLANDS 2 Mälardalen University, School of Business, Society and Engineering, Västerås, SWEDEN E-mail: s.a.read@tudelft.nl, erik.lindhult@mdh.se, a.mashayekhi@tudelft.nl

K e y w o r d s: energy efficiency, energy demand, energy sustainability, sustainable energy policy, energy systems, infrastructures

ABSTRACT

Our present economy is high-energy and demand-intensive, demand met through the use of high energy yield fossil fuels. Energy efficiency and renewable energy sources are proposed as the solution and named the ‘twin pillars’ of sustainable energy policy. Increasing energy efficiencies are expected to reduce energy demand and fossil fuel use and allow renewables to close the ‘replacement gap’. However, the simple fact is that fossil fuel use is still rising to meet increasing global demand and even when demand is stabilised, the substantial energy efficiencies achieved are not delivering the expected reductions in energy demand. The net effect is that efficiencies are gained and renewable energy use is increasing, even though the replacement of fossils is not an immediately plausible possibility. This points to the under-theorised problems in the ‘efficiency and replacement’ formula. We argue the need to pay closer attention to the ‘systemicity’ of the problem and to the technical and practical systems involved in energy demand. There are a number of detailed reasons why the ‘efficiency and replacement’ equation has become problematic (‘globality’, energy yield, ‘rebound’ and ‘momentum’ effects) and we include a short review of these and relate them to our ‘systemicity’ argument. We argue there is a need for better thinking, but also for a new primary instrument to drastically reduce energy demand and fossil fuel use. Attention should be urgently shifted from gains in energy efficiency to substantial year-over-year reductions in demand.

1. INTRODUCTION Energy is a ubiquitous factor in contemporary life. Like clean water, it appears cheap and plentiful and for many people living in prosperous western societies it is simply there at hand and available on demand. Indeed, it has been engineered into modern life in a way that encourages making it part of the background (assumptions) rather than the foreground (consciousness) level in everyday life. We take it for granted in the same way we do not question the floor we walk on. At the same time, our current rates of fossil fuel use to meet energy demand are unsustainable. We

need to eliminate carbon emissions in a timely way to keep the global temperature rise within the 2°C limit we have set (or even 1.5°C as stated in the Paris agreement of UNFCCC in December 2015), thus making energy demand reduction a priority. National and supranational bodies around the world have climate change alleviation as a major priority. EU energy policy aims to radically reduce fossil fuel use. This aim is represented in the immediate future by the EU 20-20-20 targets: a 20% reduction in carbon dioxide emissions and 20% of energy from renewables by 2020. The primary strategy in relation to these targets is to achieve energy efficiency. Research

Stephen READ, Erik LINDHULT, Azadeh MASHAYEKHI Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 77-87 Planning for Resource Efficient Cities

and implementation funds are being spent on meeting these targets through establishing energy efficiency policy and practices at national and local levels and implementing them in an effective way. Europe and other developed regions have seen energy demand stabilised since the 1970s. The stabilisation in demand does not however reflect the substantial efficiencies gained. The problem is compounded by the fact that we have such limited time to achieve energy demand and carbon emission reductions. It is further compounded by the global dimension of energy and climate questions – globally carbon emissions continue rising steeply – and by other factors we describe here as the ‘paradoxes’ of energy efficiency. In spite of the effort and forty years of Earth Summit conferences, the path towards sustainable development remains unclear and the aim of sustainability may be receding rather than being brought closer. We aim here to review the difficulties and paradoxes of energy efficiency as an instrument to contain and reduce demand. We find that the link between energy efficiency and demand is an unreliable basis for a strategy for radical demand reduction. We will begin by outlining some of the systemic aspects of energy demand and efficiency and outlining major system changes in a brief historical overview before turning to some of the more detailed limitations and paradoxes of energy efficiency. These include framing issues – this is a global issue and we need to take a global perspective on energy in general – as well as technical issues of energy yields and energy returns on investment (EROIs) of fossil fuels and their replacements. They also include economic ‘rebound’ effects, as greater efficiency equates with greater productivity and ‘sociotechnical momentum’ effects as we are forced to consider the material and social aspects of change. We conclude that there is no stable or direct relationship between energy efficiencies and energy demand and that energy efficiency is not any silver bullet for tackling climate change. We need to consider better the systemic aspects of the problem and the problem may need to be approached more directly, as a simple imperative of reducing demand. It may require new instruments, beyond energy efficiency, and certainly beyond the market, and such instruments must be found and implemented. 2. QUESTIONS ABOUT ENERGY EFFICIENCY According to U.S. Energy Secretary Steven Chu “energy efficiency isn't just low hanging fruit; it's fruit lying on the ground” [1]. The assumption is that energy efficiencies are the first and obvious way to reduce demand and allow renewable energy to eventually fill demand. Energy efficiency is promoted as the first and

sometimes, with replacement with renewables, the only thing we should be doing to address climate change. It is also argued that increasing energy efficiency stimulates economic growth, though the low energy yields of replacements suggests rather more expensive and less productive energy. Today we are facing the urgent imperative to reduce our dependence on energy sourced from cheap fossil fuel and replace fossil fuels with sustainable energy sources. At the same time, however, fossil fuels are still responsible for well over 80% of demand and fossil fuel use continues rising and is projected to further rise at least until 2040 [2], by which time we are likely to be over the 2° C climate change ‘limit’ [3]. Renewable energies are also rising but at a much slower rate. The problem, as illustrated in figure 1, is to get these two rising curves to meet, and to do it soon enough to avoid a 2° C global temperature rise.

Fig. 1. Energy demand from 1850 to 2009. Source: Data from Nakicenovic, 2009 1.

The energy efficiency + replacement of fossil fuels = sustainability strategy [4] is widely accepted and increasingly acted upon. Energy efficiencies have been achieved sometimes at spectacular rates, but the hope for reduction in the demand for fossil fuels is not materialising at rates we would expect. In addition, while there is significant public concern and direct action regarding the promotion and implementation of renewable alternatives, this is not at the scale required to curtail fossil fuel use and the release of more carbon emissions into our atmosphere2. The link between energy use and economic growth is often cited as a reason that further demand reduction is not an option 1

Nakicenovic, Nebojsa (2009). Supportive policies for developing countries: a paradigm shift. Background paper prepared for World Economic and Social Survey 2009. 2 Some countries like Iceland and Sweden are close to the carbon-free target but these countries are blessed with exceptional natural potentials (geothermal and hydroelectric), whilst Sweden makes up the difference with the nuclear one.

The Inefficiencies of Energy Efficiency: Reviewing the Strategic Role of Energy Efficiency and its Effectiveness in Alleviating Climate Change Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 77-87 Planning for Resource Efficient Cities

[5] and may explain the tendency of governments to prioritise the economy over the environment. What efficiencies have not done up till now is turn the graph of energy demand downwards. In order to understand what the efficacy of energy efficiency is we first need to understand the reasons for these sometimes paradoxical situations. The graph suggests also that the plausibility of the achieving the aim within a relevant time frame can be questioned. The aggregate of Intended Nationally Determined Contributions (INDCs) by 146 countries collated by the UNFCC will not keep global temperatures within the 2° C limit in their current form. They conclude that carbon emissions will continue to grow, though they also see hopeful signs for progress [3]. But the fact is that today well over 80% of energy worldwide is derived from oil, natural gas, and coal [2]. This means that the biggest practical problem remains the shear capacity that has to be filled by alternatives [6]. Vaclav Smil (2003) also emphasises the magnitude of the task: “the shift to nonfossil energies is an order of magnitude larger task than was the transition from phytomass to fossil fuel, and its qualitative peculiarities will also make it more, rather than less, demanding” [7]. 3. TOWARDS A SYSTEMIC GRASP OF ENERGY EFFICIENCY Part of the problem lies in the way energy efficiency and demand are grasped, that is, understood and defined, as well as acted upon in pursuing and stimulating improvements. Energy efficiency in a social context is linked to our technologies and practices, and our dependency on energy resources related to socially valued results. A common way of understanding energy efficiency is: if the same results are produced with less input of energy resources, the practice is more energy efficient. Practices are performed with the help of certain tools and technologies (cars for transportation, light bulbs for lightning or isolation material in houses) and energy efficiency is often measured by the energy efficiency of these technologies. In everyday terms, it means getting the most out of the units of energy you buy, so that energy (and money) is saved. Increasing energy efficiency is then presumed to save energy, reduce overall energy use as well as pollution, emission and other non-wanted effects in its production and consumption. This instrumental, ahistorical and narrow technological view has been questioned [8], [9]. Starting with such a view, energy efficiency may be misconceived and ineffective in energy policy for transition to a sustainable society. Whether we understand the energy system as a simple tool (i.e. light bulbs) or a complex eco-inclusive assemblage (whole

systems producing light) can have significant consequences for policy and for the direction of transition and innovation. A systemic understanding and approach to energy is required. Assessment of potentials and improvements requires that we look at the performance of specific energy systems in context [10] and in relation to systemic factors. A change that improves energy efficiency in the method we use in certain practices may have complex effects in a broader context. What happens to the practices that are made more energy efficient? What happens to other practices? What happens to the community context of the practices? How does the context respond back on the efficiency enhanced practices? How do practices dynamically interact when some practice is made more energy efficient? Practices are also performed, managed and steered by different actors and groups, thus initiation, change and results of energy efficiency measures depend on their particular interests, values and motivation, and their perspectives used in analysing energy efficiency. Economists may understand the problem in terms of inefficient market processes implying the need for a ‘freer’ market backed by enabling institutions and norms. Technical people will tend to look at technical efficiency, while innovators may look at innovation efficiencies in the effort to transition to a more eco-smart organisation [11]. It should be clear that efficiency is seen here as a factor which leads directly to a reduction in energy demand. To begin looking at the systemic aspects of this complex array of problems we need to consider how boundaries are drawn, and how they include and exclude factors, not least nature, people and the sociotechnical systems constraining and affecting efficiency of the use of energy. A real challenge is, for example, the comparative inefficiency of the emerging more sustainable energy practices, such as electric vehicles or solar panels, in their infrastructural and practice context and in comparison to existing, already streamlined and institutionalised practices. The first may be less efficient at converting energy sources to energy, whilst the relative ‘inefficiencies’ of the second may only appear at the outer boundary conditions, at the level of global climate change and emissions. We need to be careful, as well, where the problem boundaries are drawn at political and social levels. Climate change respects no political borders and global social inequality, which is one of the reasons for modernisation and development along with the associated consumption of fossil fuels in developing lands. Secondly, we should consider how we understand the complex economic effects of energy efficiency and saving (see section 5c). Saving energy

Stephen READ, Erik LINDHULT, Azadeh MASHAYEKHI Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 77-87 Planning for Resource Efficient Cities

cannot simply be assumed to directly translate into reduction of energy demand. It also implies a greater productivity of energy that may expand the possible uses of energy and lead to the exactly opposite result. In section 3, we argue that there is evidence of energy being the systemic driver in the economy-energy couple. Historically, new energies have been precursors to new economies as hunter-gather economies have been overtaken by agricultural, industrial and global economies. It is clear nevertheless that this relationship between energy and economy is not a simple one and that economy seems to ‘decouple’ from the relationship as sometimes spectacular energy efficiencies are achieved. The relationship however has to be seen in the context of a ‘regime’, which means that energy and economy interpenetrate in complex patterns of material and practice that have been constructed historically and on the ground. Thirdly, we should consider the ‘regime’ nature of the problem – the complex overlapping and integrated nature of whole regimes of energy production, distribution and consumption in their historically constituted forms. From a tool and technological perspective it is often implicitly assumed that it is possible to pick and choose from a Smörgåsbord of existing best available practices in operation worldwide. This instrumental view on energy efficiency implies a naive view of the systemics of energy production and use, which include technical as well as practice dimensions. Change involves therefore not just the introduction of new energies but also the addition and integration of new technical arrangements into social contexts and for social purpose. Fourthly, we need to understand impediments and costs of change and innovation. Change requires new practices and new technical arrangements, all of which require energy as well as money to build. We tend to overlook the massive construction programme involved in every energy transition in order to integrate social, economic and cultural with material and technological aspects. The last energy transition (discussed in section 3) involved the adaptation of global technological systems (automation, computerisation, communications and logistics) but also new national and urban systems that have transformed cities and regions. The motorcar and new housing patterns and standards have dominated here and have been the object of huge development programmes, first, after Second World War, in the West and more lately in the global East. Figure 1 shows at least partly the energy costs involved. Lastly, innovation systemics are linked to all these factors. Innovation requires creativity and experimentation. It involves ideas and research, feeding into and incorporating business relevant knowledge of energy solutions, venture capital, entrepreneurs and workable business models. Innovative and sustainable

development will be a collaborative achievement of a broad range of actors across sectors [12], [13], [14]. Research indicates that, in order to be successful, sustainability transition in communities will require engagement and collaboration between public, private and civic actors and groups, guided by common, long term visions and goals where policy development itself may take the shape of a contested process of social innovation [15], [16]. This expands the dynamics but also creates constraints for realising energy efficient solutions. Furthermore, the ‘momentums’ (section 5d) of socio-material infrastructures (e.g. technologies of energy production or transport systems) are difficult to change. In an EU project on Planning for Energy Efficient Cities a small experiment was made with an electrified, pedalled tribike, modern rickshaw. The technology is quite simple and well tried out in Asian context, so why should not it also work in western, industrialized countries? From a purely technical point of view, such a modern rickshaw is energy efficient and could potentially satisfy a significant share of the needs for short-range transportation. But it would require not only incentivised consumers but a radical reshaping of suburban housing patterns and cultural-material lifestyles. Tribikes go against the grain of the sociotechnical momentum, while Tesla electric cars seem more in line but imply significantly higher energy consumption. Simply put, it probably requires another society as infrastructure for realising certain efficiency potentials [11]. One of the socially ‘valued results’ we seek from energy efficiency is sustainability but this can be seen to be ‘extra-systemic’, secondary to the direct intention embedded in the techniques and practice. Sustainability is an ‘externality’ in relation to the more systemic results which are the immediate effects or benefits we derive from those practices (a meal or a hot shower or transport to work for example). Systems are already intentional, focused on the direct results of practice, and give results which seem pre-behavioural, even pre-conscious. We can extend Heidegger’s analysis of a skilled practitioner here to explain. The carpenter uses his hammer to hammer the nails. A secondary effect of this may be the noise and he may use a more advanced hammer to reduce noise. But the activity of the carpenter is carpentry not noise reduction, his attention and purpose is on the nail and the timber and not on the hammer or its noise. His intention remains to hammer the nails and only secondarily to make less noise. The person driving home from work has an intention to get home and only secondarily to save the planet. In fact, the business of life is all technologically mediated and she has to take care of these things before she may even have the leisure to devote to thinking of the planet. It is in this way of being integrated with

activity and intention that technology and infrastructure become taken for granted and even invisible. Heidegger (1977) also questioned the dominant technical orientation to nature as one of ordering and calculating nature, whose energy and its efficiency’ expresses. Technology has become Ge-stell (a framing), revealing Nature as Bestand (a resource), ready to hand, to be demanded and exploited. ”The revealing that rules in modern technology is a challenging, which puts to nature the unreasonable demand that it supply energy that can be extracted and stored as such” [17]. The character of more ‘reasonable’ technology is still disputed, whether as alternative, eco or peoplefocused technology [18], [19], or as refinement of modernist approaches to technology to be the basis of ecomodernisation paths. Most probably it will be a combination of alternative and mainstream technology as well as social innovation emerging from a “war of innovation” [20] and contested processes of policy innovation [21] and political struggles. It has core implications for how energy efficiency models and measures are to be designed. 4. THE HISTORY OF ENERGY DEMAND AND EFFICIENCIES The systemic aspects of energy demand and efficiency are seen most clearly from a historical perspective. Far from being a new strategy to respond to today’s crisis of energy demand, energy efficiency gains are a systemic aspect of the historical record of energy production and use. Smil (2010) uses the example of combustion for heating, which started at about 5% efficiency for an open wood fire and has moved to above 95% for modern conversion of natural gas to heat [22]. Efficiencies have been gained rapidly and continuously over the industrial era. It is clear that both technologies and efficiencies are advancing in this process, that gains in efficiency are part of the total process and that these have been no cause for the reduction of energy demand – in fact it seems the opposite is true. Solar energy, converted to biomass by way of photosynthesis, drove hunter-gather (uncontrolled solar energy use) and then agricultural (controlled solar energy use) socio-ecological regimes. Biomass accounted for 95% of society’s demand of primary energy and a land-based, decentralised energy system underpinned socio-economic development. A critical transition occurred with fossil fuels, which powered the industrial revolution by breaking the link between energy and land [23]. Figure 1 illustrates the history of the rise of energy demand from the middle of the 19th century.

Coal passed biomass as the leading source of energy globally just before the beginning of the 20th century. Around mid 20th century oil came into prominence and grew in importance [24]. The most significant change is the radical acceleration of the growth of demand after the 1940s. Demand here is simply defined in gross EJ. The reasons for this are significant. The Second World War was itself a significant consumer of energy. In addition, Britain and the USA built their reconstruction programmes on the logistical capacities they had developed during the war. Other countries were enabled or obliged under the Marshall Plan to restore their production capacities as quickly as possible and begin reconstruction. The change was characterised by massive urban and social development, accompanied, in spite of a relative decline of energy consumption in the industrial sector, by a rapid increase in energy consumption. Besides construction, a growth in household and transportation sectors accounted for this [23]. Cities expanded on a huge scale, but also motorcars, central heating, washing machines and refrigerators became affordable and were consumed by all classes in the West. The spread of the consumer society in Europe led by 1970 to a doubling of energy consumption per-capita as well as of waste and emissions [24]. Since then, development in terms of urban construction, industrialisation and the growth of the consumption sector have continued, in Asia in particular, pushing the energy demand curve steadily higher. We can define different regimes (in the forms of what McNeill (2000) called ‘technological clusters’) [25] and within these clusters high innovation and efficiency gains tended to be concentrated at the beginnings of clusters and relative gains harder to achieve as time went on. But, getting new energy systems on line is formidably difficult due to the social and infrastructural organisational realignments required and the costs and time this takes. Coal and then oil defined two rather different ‘technological clusters’ with different characteristics of resource distribution, transportation and potentials for exploitation. Coal-based technologies were replaced by oil-based technologies, particularly in transportation, but also in the communications technologies and industries that complemented them [24]. Older clusters transformed. Coal did not disappear but retained importance, particularly for the generation of electricity whereas biomass use has more than doubled and accounts today for the bulk of nonfossil fuel energy sources. Clustering of technologies and the drop-off of innovation and efficiency potentials as time goes on appear to be quite straightforward systemic effects. We will explain how energy efficiency relates to energy

Stephen READ, Erik LINDHULT, Azadeh MASHAYEKHI Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 77-87 Planning for Resource Efficient Cities

productivity in section 5.3 and this productivity factor (and the profits implied) could partly explain the appearance of new clusters over time. This triggers questions about the particular systemics of renewable energy sources (low energy yield) given the tendency of energy yields to increase historically. New renewable alternatives remain marginal today, and practically transition is focussed on simple replacement of fossilsourced with renewable energy rather than proposing ? a full technological cluster or regime change. Is there to be a new cluster of ‘green’ technologies and associated practice changes? We question whether the same sorts of rapid advances in innovation and economic effects of resource exploitation will be forthcoming with energy sources of much reduced energy yield and energy return on investment. We will return to these points later. But the most important tendency remains the rapid and sustained increase of global energy demand overwhelmingly sustained by fossil fuels. Not only has the increase in demand been sustained by fossil fuels but fossil fuels have consistently increased their share of the total. 5. PARADOXES OF ENERGY EFFICIENCY It is necessary to clarify the efficacy of energy efficiency mainly because there may be an excess of faith and an overreliance on energy efficiency as a policy measure intended to mitigate climate change. We will set out in the remainder of this paper a more detailed review of some of the limitations and paradoxes of energy efficiency. Firstly, there is a problem of the framing of energy efficiency and demand reduction policies. We are told we would be able to reduce energy demand by 73% through efficiency savings alone [26]. But sustainability and climate change are secondary effects of some very basic social and economic things humans do and these basic things are deeply embedded in multiscale and interacting sociotechnical systems (technical and practice). They are also global issues and our perspective on the problem needs to be global. Secondly, replacing fossil fuels may paradoxically itself entail high outlays of energy. Fossil fuels may themselves play a substantial role in producing energy from renewables and getting the energy to point of use. Thirdly, ‘rebound’ refers to another paradox of energy efficiency and replacement – the increase in energy use as a consequence of the more efficient use of energy. Fourthly, there is a coherence factor – a ‘sociotechnical momentum’ to the systems involved and these will have to go through an extremely challenging (and expensive in energy and money terms) reconstructive process for the effective change to happen.

5.1. The global dimension Due to our increasing influence on the planet it is proposed that we live not only in a new epoch called the Anthropocene [27], but also in an Anthroposphere, a humanly-made world [28]. Our relationship with nature has changed, and some argue the only way ‘back’ to nature is through our technology [29]. For them technology is not a force for ‘alienation’, but it neither is simply the hardware of our human world, technology is a highly integrated set of spaces we have created for ourselves in order to live at a global scale in global cities and societies and a global economy. The meaning of technology today is to act and participate (directly and indirectly) in the world at regional and planetary scales. It is difficult to see how we can stop this process now [30] or deny it to those who still do not participate fully in its benefits [31]. The predicament is compounded by the fact that our global economic system is founded on a model of growth so that to maintain it, it has to grow. It is compounded further, and is given an ethical dimension, by the fact that the development of those parts of the world catching up to Western levels of prosperity demands growth rates that can exceed 10%. The linkage of energy consumption with growth is not fixed but is persistent and energy consumption at these levels threatens the biosphere. Mathis Wackernagel (1996) and his colleagues have shown that if we all were to achieve the standard of living enjoyed by the ‘developed world’ today, we would need four Earths to sustain our resource consumption [32]. The distributional aspects are also clear at the global level: while the per capita availability of productive land has decreased from 5 to 1.7 hectares since 1900, the per capita footprint in ‘developed’ countries is now 4 to 6 hectares [32]. The limits relating to growth are as clear: seen globally, over the past 30 years, carbon intensity per dollar of economic activity has fallen by a third. At the same time, however, carbon emissions increased by 40% as the economy scaled up. Scaling up has always overtaken increasing efficiencies over our industrial period. If it continues to do so we would have to continue producing efficiencies to levels which are not credible [33]. Another point is that economic theory is unable to accommodate geography or to recognise the geographical displacement of ecological effects [34]. Industrial era globalisation spatialises exploitation by way of a flow of resources to the industrial north. The Western developed nations in the post-industrial era have exported the industrial use of fossil fuels to the developing world. Whereas policy and aims are typically framed at national and supranational levels, it is clear that the questions cannot ultimately be contained at these levels. We need to account for bringing the rest of the world up to a standard of living that could be called

equitable, and this, even at optimum efficiency, would entail increases of energy use that would more than cancel efficiency gains. 5.2. Energy yields and returns on investment There are technical aspects to efficiency and replacement which are crucial. ‘Energy yields’ (Joules per unit mass of energy source) and energy return on investment (EROI) (how much energy is left over at point of use after correcting for the energy required to generate the energy at point of extraction and transport it to point of use) [35] are important parts of the calculation because even if the energy yield starts high, there is a loss of EROI from the point of extraction to the point of use. The energy yields of fossil fuels per kilogram or volume are higher than those of biomass and it is this factor that has opened up transportation in particular in the industrial era and released us from our bondage to the land. For any energy regime to be viable it must obtain substantially more energy than it needs to invest to obtain that energy [36]. There will be a minimum EROI below which it takes more energy to make energy than we get out and some ‘alternatives’ end up being energy consumers! Most biofuels for example must be ‘subsidised’ by fossil fuels to be useful. Thus any energy system is constrained by a ‘law of minimum EROI’. Smil (2008) points out that “recent costs of many renewable techniques have been actually increasing … because [they] depend on large inputs of more costly fossil energies” [37]. In addition, current models of national and global economies are set up so they depend on the high energy yields and EROI of fossil fuels. Infrastructure and transportation are dependent on the energy yields and densities of oil and support the mobility flows of the global industrial system. The mobility of production materials, components and consumer goods is behind the consumables that eventually end up in our shops. The products hide not just their energy processes but also global distributional and ethical aspects their processes of production are complicit in. When the energy yields and energy returns on investment of alternatives and renewables are lower than those of fossil fuels, producing the energy and getting it to the point of use may not represent a net energy gain. Fossil fuels are then likely to play a role in producing energy from renewables and getting the energy to the point of use so that the replacement factor in the energy efficiency strategy equation is cancelled and renewables end up producing carbon emissions. The classic example is food, which of course was a primary energy source but today requires substantial energy input – about 15% of total energy [22] – to produce and deliver. Again, to put some perspective on

the problem, a future primary energy source needs to be renewable of course and without negative environmental or geopolitical effects. But it needs to also be capable of generating a substantial proportion of all energy used as well as having a net energy yield of 10:1 or more [6]. Anything less and we would be left in the paradoxical situation of needing fossil fuels just to generate the energy! 5.3. Rebound It appears that increases in energy efficiency do not translate directly into reductions in energy demand. What history tells us is that efficiency gains are a regular systemic aspect of technological innovation, that there have been spectacular advances in energy efficiency over the industrial era but that none of them have led to declines of total energy consumption [22]. Others have suggested that there is an economic dimension to this in that energy efficiency increases the productivity of energy which may lead to increases in energy consumption consequent on economic growth. The Jevons’ Paradox, named after the English economist William Stanley Jevons, refers to how the demand for and rate of consumption of a resource rises with technologically driven increases in the efficiency with which that resource is used. He observed in 1865, that technological advances that increased the efficiency of coal use led to more coal being used in more industries [38]. In other words, energy efficiency can be equated with energy productivity. Lower energy costs mean more energy can be used relative to other production inputs, and more goods can be produced cheaper and for more profit. Then more uses can be found for the cheaper goods and these goods may stimulate new ways of consuming energy. These ‘rebound effects’ mostly manifest as increases in the production of energy and raw materials, and more consumer goods – in the economic profit and growth therefore that may be extracted from production efficiencies. Energy efficiency may therefore increase economic productivity and growth but may not be a way to reduce energy consumption and carbon emissions. Energy rebound effects are indirect and difficult to see if one looks only at direct energy end use at the household or business level. Two-thirds of energy is in fact consumed indirectly, not in the use of but in the production of goods and services. So, while we may save money on energy not used due to efficiencies that money tends to be spent on more goods and services that require big energy inputs to produce. This in turn means more consumption and pushes economic growth but continues polluting. At household level, energy consumption has been more or less static in the developed parts of the

Stephen READ, Erik LINDHULT, Azadeh MASHAYEKHI Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 77-87 Planning for Resource Efficient Cities

world since the early 1970s. In that period household appliances have become more than 50% more efficient. However, the size of houses has grown, meaning more heating and cooling load, but also there are many more appliances, some of which consume energy even when not in use [39]. New efficient technologies may be important for improving quality of life and economic welfare, especially in less developed regions, but they may not be the answer to climate change [40]. In a study of the effects on energy consumption due to new more efficient solid-state lighting technologies [41] the authors conclude that the cost of lighting over the last three centuries as a proportion of GDP has been surprisingly constant and that this will probably not change. While it is assumed that more efficient light bulbs will reduce energy consumption and carbon emissions, there also exist new potentials for growth in the consumption of light from more efficient and lower cost lighting technologies. New uses can be found for light and new areas of the world could become better lit. The result may be increased qualities of life and productivities in those places, so that what it may not mean is a reduction gross energy demand or in carbon emissions. “The consequence is not a simple 'engineering' decrease in energy consumption with consumption of light fixed, but rather an increase in human productivity and quality of life due to an increase in consumption of light” [41]. Discounting rebound effects can lead to profound miscalculations of the effects of energy efficiency. Cullen et al (2011) see us reducing energy demand by 73% through efficiency savings alone [22]. The ‘450 scenario‘ of the International Energy Agency sees improved energy efficiency being responsible for 71% of emission reductions to 2020, and 48% to 2035 [42]. Estimates like these are derived from calculations of the efficiency opportunities available in different sectors which are then added up to give us total demand and emissions reductions. This fails to account for indirect consequences of efficiencies. Such calculations underpin the climate strategies of McKinsey and Co, the IEA, and the IPCC for whom the economic implications are surely not lost. 5.4. Socio-technical momentum Thomas Hughes, the historian of technology proposed the idea of technological or sociotechnical momentum. For Hughes as well technology is a set of highly integrated spaces – he called these integrated spaces large technical systems (LTS). Momentum is a property of LTS that suggests its mass, its complexity in terms of numbers of components, its dynamic properties in terms of movement or growth, its sociality and integration with social organisation, and its purposefulness or goal-directedness [43].

We have previously argued [44] along these lines that technology “is an ongoing and unfinished process through which people, society” and things “weave … the meaningful conditions of everyday life” [45]. Technology is also though, in its origins, about what we make and this points to mankind’s nature as fabricators of its own world. Technology – the components of the LTS – are organised in integrated and coherent socio-technical ensembles so that technology’s essence is its integration as socio-technical and material-cultural infrastructures. These are immersive environments in which interdependencies of ends and means are established as practice. As with Hughes’ LTS, technology here exists not apart from but as an integrative factor of society. It creates an immersive environment in which we know and do things in ways technology makes possible and natural. We interpret this as meaning that we live in material-technical cultures in which technology is adjusted to and aligned with us and enables us – though not all of us equally, of course. Hughes’ LTS have taken a more environmental slant in this construction – environment intended to mean our personal and community environments, but also the public environments of cities, airports, shopping centres and so on. But all environments also mould the organisms that inhabit them. People are enabled in their environments; there is also purpose and goal-direction embedded in these alignments. On the one hand, we use environment to act and on the other hand working within them means that certain modes of action – the ones the environment already affords – are preferred. These modes of action thus become self-evident aspects of a ‘material-technical culture’. The active impulse is not simply mental and human but is mediated through material and technology. But this impulse is also built into the sociotechnical system as an environmental tendency. Some have argued “we need to stop imagining that we will solve global warming through behaviour changes” [29]. It is clear this environment has evolved to be the way it is through energy regimes and that at each transition massive new construction took place to fit the environment to purpose. The environment we inhabit was built on the assumption of cheap and plentiful energy and the modes of actions it affords are in general high-energy actions. It may not be going too far to say that the purpose and goal the contemporary global city is directed to is consumption – and in particular the consumption of energy. This would suggest that the difficulty involved in the adaption of our cities today to different forms of travel and other behaviour is equivalent to shifting the momentum of an extremely large and very purposely moving body. The present energy regime supports a complex of productive, consumptive and other

practices, and these practices are entangled with and dependent on the material technical apparatus of our environments – and energy in its present form is a necessary means to those practices. “Our patterns of thought, behaviour, production, and consumption are adapted to our current circumstances—that is, to the current climate (and global biogeochemistry), to the twentieth century’s abundance of cheap energy and cheap fresh water, to rapid population growth, and to yet more rapid economic growth [and] these preferences and patterns are not easily adaptable should our circumstances change” [25]. 6. CONCLUSION Energy efficiency will not be efficient and certainly not effective until also the character and structure of circularity of flows, the dynamics of use and demand, as well as socio-material ecosystem performances are included in the equation and relation. Moezzi (2000) is asking for design of definitions of energy efficiency “that better reflect energy consumption or carbon emissions” [46]. Winner (1982)argues that the focus on technical efficiency is an ideology in itself with moral force in a growth oriented world is assumed to be good both for business and society [47]. But as Rudin succinctly express it “It’s not the lamp, it’s the switch…” [52]. A systems approach can explicate values and assumptions in operation and in evolutionary scenarios. We will not elaborate on specific definitions here. Such definitions need to be based not only on appropriate models, models which reflect core features and valued outcomes of a sustainable society and the developments towards such society. Which guiding values and politics will define outcomes and performances? Energy is an enigma, not clearly seen in our understanding of the world and not clearly marked or calibrated in our ways of doing things. But huntergatherers and early agriculturalists probably had no clearer view than we have of energy and the way it flowed through their systems. They articulated understanding in metaphor and myth; today we romanticise nature and its abundance and fetishise technology and industrial and economic growth. It is not farfetched to imagine that energy is the hidden source of, and ultimate limit to these mythical cornucopias of nature and technology [34]. Some have suggested that societies, economies and cultures are products of surplus energy in particular energy regimes. The structure of that demand itself, its substantive role in economy as we know it, and the role fossil fuels play in it, needs to be understood if we are to understand the practical difficulties of change. We learn here we cannot equate energy efficiency with energy demand and that change

“necessarily involves swimming against a strong tide….” This does not mean that energy demand cannot be reduced, but does imply that it may be more challenging than many analyses, policy documents and political statements suggest” [42]. Some have stated the hard fact – a solution is a cap on energy demand and emissions at a level of about one fifth of what it is today [49]. A glance at our graph will show the logic of such a call. Such cap will have severe consequences for not just economies but also for equity (the poor will pay more for it than the rich) and for the logistical aspects of our global supply chains which are already under pressure due to falling profit margins [50], [51]. The dilemma is pressing, the need for action is urgent, but the space for action very limited. What is certain is that we have to find an alternative primary strategy to tackle climate change. REFERENCES [1] US Department of Energy (2009), “Obama Administration Launches New Energy Efficiency Efforts” June 29, 2009, Available at: http://energy.gov/articles/obama-administrationlaunches-new-energy-efficiency-efforts (accessed January 22nd, 2016). [2] IEA (2014), World Energy Outlook 2014. Available at: http://www.worldenergyoutlook.org/weo2014 [3] McGrath, M. (2015), Climate plans must go further to prevent dangerous warming, BBC 2015. Available at: http://www.bbc.com/news/scienceenvironment-34668957 [4] Prindle, B. et al. (2007), The twin pillars of sustainable energy synergies between energy efficiency and renewable technology and policy, Washington, D.C.: American Council for an EnergyEfficient Economy. [5] Smil, V. (2004) “World History and Energy” in: Encyclopaedia of Energy, Volume 6. Elsevier. [6] Heinberg, R. (2009), Searching for a Miracle: Net Energy Limits & the Fate of Industrial Society. The International Forum on Globalization/Post Carbon Institute. [7] Smil, V. (2003), Energy at the Crossroads: Global Perspectives and Uncertainties. MIT Press Cambridge . [8] Herring, H. (2000), Is energy efficiency environmental friendly? Energy & Environment, Vol. 11, No. 3, pp. 313-325. [9] Herring, H., Robin Roy, R. (2007), Technological innovation, energy efficient design and the rebound effect. Technovation 27, pp 194–203. [10] Lindhult, E., Midgley, G. (2014), Systemic Innovation. Theoretical Considerations. 58th ISSS Conference, Washington DC, USA, July 27-Aug. 1, 2014. [11] Lindhult, E., Campillo, J., Dahlqvist, E., Read, S. (2015), Innovation capabilities and

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[30] Gray, J. (2009), False dawn: the delusions of global capitalism, London: Granta. [31] Shellenberger, M., and T. Nordhaus (2015), "The Long Death of Environmentalism." The Breakthrough Institute. The Breakthrough Institute, 25 Feb. 2011. Web. 16 Oct. 2015. [32] Wackernagel, M., Rees, W. E. (1996), Our Ecological Footprint: Reducing Human Impact on the Earth. (Gabriola Island, BC: New Society Publishers). [33] Jackson, T. (2009), Prosperity without Growth, Economics For A Finite Planet, Routledge. [34] Hornborg, A. (2001), The power of the machine: global inequalities of economy, technology, and environment, Altamira Press. [35] Hall, C. A. S., Powers, R., Schoenberg, W. (2008), Peak Oil, EROI, Investments and the Economy in an Uncertain Future. In Renewable Energy Systems: Environmental and Energetic Issues. Pimentel, D., Ed. (London: Elsevier) pp. 113-136. [36] Farrell, A. E., Plevin, R.J., Turner, B. T., Jones, A. D., O'Hare, M., Kammen, D. M. (2006), Ethanol Can Contribute to Energy and Environmental Goals. Science 311 pp. 506-508. [37] Smil, V. (2008), Global Catastrophes and Trends: The Next Fifty Years, MIT Press. [38] Jevons, W. S. (1865), The Coal Question: An Enquiry Concerning the Progress of the Nation, and Probable Exhaustion of our Coal Mines. London: Macmillan. [39] Fahrenthold, D. A. (2010), “Are American homes more energy efficient? Not exactly”. Washington Post September 30, 2010 http://www.washingtonpost. com/wp-dyn/content/article/2010/09/29/AR 2010092906585.html (accessed 22nd January 2016) [40] Saunders, H. (2010), “Why Energy Efficiency May Not Decrease Energy Consumption”, September 28, 2010 http://thebreakthrough.org/archive/ why_energy_efficiency_does_not (accessed 22nd January 2016) [41] J Y Tsao et al. (2010), Solid-state lighting: an energy-economics perspective. Journal of Physics D: Applied Physics, 43(35). [42] Sorrell, S. (2015), Reducing energy demand: A review of issues, challenges and approaches. RSER Renewable and Sustainable Energy Reviews, 47, pp.74– 82. [43] Hughes T. P. (1987), “The evolution of large technological systems” in: Bijker, W.E., Hughes, T.P. & Pinch, T.J., 1987. The Social construction of technological systems new directions in the sociology and history of technology. [44] Read, S., Lindhult E. (2015), Technology and transition: ‘progressive evolution of regimes and the consequences for energy regime change. CUE2015, Nov 15-17, 2015, Fuzhou, China.

[45] Dobres, M. A. (2000), Technology and Social Agency: Outlining a Practice Framework for Archaeology, Wiley. [46] Moezzi, M. (2000), Decoupling energy efficiency from energy consumption. Energy & Environment, Vol. 11, No. 5, pp 521-537. [47] Winner, L. (1982), Energy Regimes and the Ideology of Efficiency. In G.H. Daniels & M Rose, eds, Transport and Energy: Historical Perspectives on Contemporary Policy, pp 261â&#x20AC;&#x201C;277. London: Sage. [48] Skolimowski, H. (1981), Eco-Philosophy. Designing New Tactics for Living. Boston: Marion Boyars. [49] Monbiot, G. (2006), Heat: How to stop the planet burning, Penguin.

[50] Tverberg, G. (2015), The Long-Term Tie Between Energy Supply, Population, and the Economy, Available online at: http://ourfiniteworld.com /2012/08/29/the-longterm-tie-between-energy-supply-population-and-theeconomy/ [51] Richter, W. (2015), Container Carriers Wage Price War to Form Global Shipping Oligopoly. Available online at: http://wolfstreet.com/2015/06/17/shanghai-chinacontainerized-freight-index-collapses-top-carriersmaersk-price-war-to-form-global-shipping-oligopoly/ [52] Rudin, A. (1999), How Improved Efficiency Harms the Environment. Available online at: http://home.earthlink.net/~andrewrudin/article.html

Centre for Research on Settlements and Urbanism

Journal of Settlements and Spatial Planning J o u r n a l h o m e p a g e: http://jssp.reviste.ubbcluj.ro

Note: The PLEEC Project – Planning for Energy Efficient Cities Mikael KULLMAN1, Javier CAMPILLO2, Erik DAHLQUIST2, Christian FERTNER4, Rudolf GIFFINGER3, Juliane GROSSE4, Niels Boje GROTH4, Gudrun HAINDLMAIER3, Annika KUNNASVIRTA5, Florian STROHMAYER3, Julia HASELBERGER6 Eskilstuna Strängnäs Energy & Environment, Stockholm, SWEDEN Mälardalen University, School of Business, Society and Engineering,Västerås, SWEDEN 3 Vienna University of Technology, Faculty of Architecture and Spatial Planning, Department of Spatial Planning, Vienna, AUSTRIA 4 University of Copenhagen, Faculty of Science, Department of Geosciences and Natural Resource Management, Copenhagen, DENMARK 5 Turku University of Applied Sciences, Faculty of Technology, Environment and Business, Turku, FINLAND 6 Hamburg University of Applied Sciences, Faculty of Life Science, Hamburg, GERMANY E-mail: mikael.kullman@eem.se, javier.campillo@mdh.se, erik.dahlquist@mdh.se, chfe@ign.ku.dk, rudolf.giffinger@tuwien.ac.at, jg@ign.ku.dk, nbg@ign.ku.dk, ghaindlm@intern.tuwien.ac.at, annika.kunnasvirta@turkuamk.fi, florian.strohmayer@tuwien.ac.at, julia.haselberger@haw-hamburg.de Corresponding author: mikael.kullman@eem.se 1

K e y w o r d s: zero carbon cities, local energy, energy self-sufficiency, urban planning, sustainable development

ABSTRACT Globally, more than 50% of all people are living in cities today. Enhancing sustainability and efficiency of urban energy systems is thus of high priority for global sustainable development. The European research project PLEEC (Planning for Energy Efficient Cities) focuses on technological, innovative, behavioural and structural capacities of European medium-sized cities in their transition towards Energy Smart Cities. The variation of strengths and weaknesses of cities’ capabilities as well as practices and tools for enhancing energy efficient performance of urban energy systems were at the centre of the project. This short note summarises its main findings.

1. THE PLEEC PROJECT The PLEEC project is a three-year project funded by the 7th Framework Programme of the European Commission - led by Eskilstuna Energy & Environment, the public energy company of the city of Eskilstuna in Sweden. The project started in April 2013 and ends in March 2016. The general aim of the project is to make European cities more energy efficient. Therefore PLEEC uses an integrative approach to achieve the sustainable, energy-efficient, smart city. By connecting scientific excellence and innovative enterprises in the energy

sector with ambitious and well-organized cities, the project aims to reduce energy use in Europe in the near future, contributing to the EU's 20-20-20 targets. The main project outcomes are Energy Efficiency Action Plans for each of the six PLEEC partner cities (see below), aiming to improve their energy efficiency in a strategic and holistic way. In order to further make this knowledge available to other European cities, the project team has developed a general model on energy efficiency and sustainable urban planning - accessible through an online model website. The core objectives of the PLEEC project are:

Mikael KULLMAN, Javier CAMPILLO, Erik DAHLQUIST, Christian FERTNER, Rudolf GIFFINGER, Juliane GROSSE; Niels Boje GROTH, Gudrun HAINDLMAIER, Annika KUNNASVIRTA, Florian STROHMAYER, Julia HASELBERGER Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 89-92 Planning for Resource Efficient Cities

- to assess the energy-saving solutions and potentials for a comprehensive city planning; - to demonstrate how integrative planning is more efficient than separate measures; - to develop a synergized model for energy efficiency planning considering city key aspects; - to create Action Plans to be presented to decision-makers in the cities; - to identify the future research agenda on the issue of energy-smart cities. To achieve these objectives, the project methods included gathering information from the six partner cities through the analysis of energy relevant indicators, stakeholder engagement and an intense dialogue and collaboration with the city partners. The consortium consists of 18 partners from 13 different European countries representing six mediumsized cities (Eskilstuna/Sweden, Tartu/Estonia, Turku/Finland, Jyväskylä/Finland, Santiago de Compostela/Spain and Stoke-on-Trent/UK), nine universities (Mälardalen University, Turku University of Applied Sciences, Hamburg University of Applied Sciences, Vienna University of Technology, University of Copenhagen, Delft University of Technology, University of Rousse, Santiago de Compostela University and University of Ljubljana) and three industry partners (LMS Imagine (now part of Siemens), Smart Technologies Association SMARTTA, Eskilstuna Energy & Environment (now Eskilstuna Strängnäs Energy & Environment).

Fig. 1. PLEEC partner network.

2. PLACE-BASED APPROACH AND ORGANIZATIONAL LEARNING PROCESSES The PLEEC project follows a place-based approach to enforce endogenous urban development by considering local conditions [1]. By supporting a

forward-looking and evidence-based strategic planning approach, cities have identified their strengths and opportunities. Five key fields of urban development have been identified in which energy efficiency is supposed to become important: (1) Green buildings and settlement structure, (2) Mobility and Transport, (3) Technical infrastructure, (4) Production and Consumption and (5) Energy Supply [1]. The multidimensional description of the most relevant assets and deficits of cities through factors and indicators, respectively the identification of comparable and typical profiles, helps selecting other cities for learning and transferring relevant strategies. City profiles provided impulses for further discussion and research; in particular, the identified deficits and assets have been discussed and assessed by local stakeholders. 3. CAPABLE AND ENERGY SYSTEMS

SUSTAINABLE

URBAN

Technological capability is the capability to achieve outcomes based on technical equipment, methods, competencies and systems, while innovation capabilities refer to abilities and practices to improve performance capacities and capabilities continuously, technological as well as organizational and social. The outcome in this case is efficiency in producing and using basic energy related services in a city (heating/cooling, transportation, recycling and waste management, light, power etc.) which achieve core outcomes of a sustainable city energy system; low cost and resource use of different services rendered including both per unit service and total use in service production (thus also including decreasing service use necessary), low fossil use and the use of other nonrenewable resources, low climate gas emission and other material leakages and pollutants. The outcomes should also be performed in an integrated way, based on a capability for synergistic production and use which additionally enhance efficiency. Energy efficiency should be seen in relation to the transition to a fully sustainable city energy system, where different measures for improvements in capabilities and performances are steps in such a sustainability transition. Technological capabilities need to be coordinated with behavioural and structural abilities in energy efficiency improvements as these are embedded in improved practices, e.g. building and using houses in a sustainable way, in which technological, behavioural and structural factors are integrated as different dimensions. Energy efficiency is also significantly affected by different city conditions of a structural character. A dispersed city structure tends to require more transportation and it is less favorable in efficiency terms

Note: The PLEEC project – Planning for Energy Efficient Cities Journal of Settlements and Spatial Planning, Special Issue, no. 5 (2016) 89-92 Planning for Resource Efficient Cities

for public transportation. It also tends to lead to more distributed heating solutions rather than based on common infrastructural solutions like district heating, which can increase efficiency based on economies of scale. 4. STRUCTURAL ASPECTS OF URBAN ENERGY CONSUMPTION There are many measures in spatial planning to improve energy efficiency in cities, as a review done in the PLEEC project summarizes – ranging from climate-optimized urban design, mixed and compact urban development to planning measures supporting small-scale energy production [2]. However, these measures must not be seen in isolation, and potential counteracting trends have to be considered. For example, efficiency gains through improved heating in housing can be outpaced by the increase of floor area per capita [3], and while, for example in Denmark, the average kms driven per car are decreasing in urban areas, the number of cars is increasing at the same time. These are partially rebound effects [4] where the efficiency gains by improving one system are out-balanced by the use of these (energy in our case) in another system. Urban structure is framing energy use and a city’s possibilities for the implementation of measures. This includes the legal system, cultural differences or behavioural preferences. The physical and functional structure of a city, and the region it is located in, influences transport and commuting patterns. Also the coverage of the municipal territory is crucial, giving cities very different possibilities (and limitations) to influence aspects of urban structure. A major question is therefore the scope of a municipal energy action plan [5]. The most efficient actions can be achieved within the municipal cooperation (e.g. targeted towards the municipal heating system). However, if we aim at long term sustainable development, we have to work with citizens’ direct and indirect energy consumption. Cities like Jyväskylä or Turku aim at this broader perspective with their ‘one planet living’ approach. 5. BEHAVIOUR CHANGE AS A DRIVER FOR ENERGY SAVING Energy smart cities start with behaviour change of both individuals and organisations. Urban systems, however, are complex and human behaviour even more. Behaviour is very much context-driven and subject to a multitude of situational and structural drivers. Understanding how people make choices on their energy consumption – whether consciously or unconsciously – is therefore essential for designing energy saving policies in cities, as well. More often than

not, however, these efforts at city level have not been planned strategically but are rather sporadic, scattered and often lacking in long term effectiveness. There is a growing body of evidence on the potential of behavioural interventions on promoting energy efficiency. Naturally, both technological interventions and urban infrastructure play a crucial role in facilitating – or hindering – energy saving measures of the behavioural kind. However, there is evidence that technological interventions alone have rather low impact without any accompanying plan to promote behaviour change [6]. This does work the other way too – no matter how well planned and realised a behavioural campaign is, it might not achieve its goals if the energy infrastructure does not permit changing one’s behavioural patterns. In an ideal situation in any city, behaviour, structures and technology complement each other. PLEEC set out to find Best Available Practices to promote behaviour change in the context of energy efficiency in European cities. As all cities possess their own unique combination of technological solutions and planning practices to promote energy efficiency, the behavioural drivers also vary. However, coherence and consistency in the design and use of policy instruments is crucial. Moreover, the power of social influence should not be underestimated – we do care about what our neighbours or colleagues think and do. Providing people with proper information is essential: messages need to be framed right, their context and timing carefully considered – they need to be meaningful, engaging, encouraging and personalized. Building upon the positive instead of preaching, making energy saving a habit and paying attention to possible rebound effects will set the process in motion. Also acknowledging various barriers to energy saving may help overcome them with different measures, such as incentives or improved information [7]. 6. LEARNING AND INTEGRATING During the project, several mutual learning procedures have been integrated into the PLEEC methodology to promote sustainable planning for energy efficiency, such as: cities – cities (study visits, local dialogue forums, opponent groups), researchers – cities (workshops, skype meetings) as well as experts – cities (city groups). However, the (challenging) integration of technology, structures and behaviour seems to be crucial for a sustainable transition into a more energy efficient smart city. 7. ACKNOWLEDGEMENTS The PLEEC project (www.pleecproject.eu) was supported by the European Commission’s 7th Framework Programme, GA no. 314704.

REFERENCES [1] Giffinger, R., Hemis, H., Weninger, K., Haindlmaier, G. (2014), Methodology for monitoring EU-FP7 project PLEEC, Deliverable 2.4. [2] Meijers, E. J., Romein, A., Stead, D., Groth, N.B., Fertner, C., Große, J. (2015), Thematic report on urban energy planning: Buildings, industry, transport and energy generation EU-FP7 project PLEEC, Deliverable 4.3. [3] EEA (2010), The European Environment - State and Outlook 2010. Synthesis Report European Environment Agency. Available online at: http://www.eea.europa.eu/soer/synthesis/synthesis [4] Fertner, C., Große, J. (2016), Compact and resource efficient cities? Synergies and trade-offs in European cities, European Spatial Research and Policy, 23(1).

[5] Fertner, C., Groth, N. B., Große, J., Meijers, E. J., Romein, A., Fernandez Maldonado, A. M., Rocco, R., Read, S. (2015), Summary report on urban energy planning: Potentials and barriers in six European medium-sized cities EU-FP7 project PLEEC, Deliverable 4.4. [6] EEA (2013), Achieving energy efficiency through behavior change: what does it take? Technical report 5/2013. European Environment Agency. Available online at: http://www.eea.europa.eu/publications/ achieving-energy-efficiency-through-behaviour [7] Kunnasvirta, A., Kiviluoto, K., Mieskonen, T., Vitliemov, P. (2015), Planning behaviour-driven energy efficiency interventions in a city context EUFP7 project PLEEC, Deliverable 5.5.