COP29: Smart cities help maintain balance in the power system

Research shows that energy consumption in buildings can be reduced by half within this timeframe, freeing up significant resources for other sectors. Realizing this vision requires close collaboration between industry, academia, and the public sector, while also fostering local solutions and active engagement from citizens.

SINTEF is participating at COP as an independent observer, committed to advancing sustainable climate and energy solutions. To support this goal, we are providing advice to climate negotiators on 15 key areas with the potential to significantly reduce emissions.

• SINTEF’s  advice for COP29: Technology for a Faster Global Climate Transition

Recommendations for smart cities

• Facilitate local energy communities for efficient energy sharing, in line with the EU’s Renewable Energy Directive[i] and electricity market design directives[ii].
• Consider developing a certification market for climate-smart buildings.
• Reduce electricity demand through energy efficiency and the use of district heating.
• Introduce price signals that end users can easily react to, and that produce the desired social effect.
• Facilitate coordinated flexibility solutions at both an area and city level.
• Increase collaboration between businesses, academia and the public sector in order to exploit the potential of both digitisation and environmentally friendly urban development.
• Emphasise community involvement, citizen engagement, and inclusive use of technology that improves quality of life for everyone.

Problem

Currently, cities account for a large portion of global greenhouse gas emissions due to high energy use and inefficient resource management. Climate-neutral and smart cities must balance their greenhouse gas emissions with measures that reduce, capture or compensate for these emissions, to ensure that net greenhouse gas emissions are zero. The EU aims to reduce its greenhouse gas emissions by 55% by 2030, and achieve climate neutrality by 2050[iii].

As homes and commercial buildings account for a large portion of annual electricity consumption, using a greater proportion of electricity produced from renewable sources will contribute to reducing emissions[iv]. As such, the share of renewable energy in the European mix must increase considerably if Europe is to achieve its goals of net zero by 2050. Renewable energy depends on a lot of factors, such as the weather, and difficult to regulate. Therefore, end use of electricity needs to become more flexible in order to maintain balance in the power system. Smart technology must be better utilised to collect and analyse data in real time, enabling better energy management.

There is a lack of knowledge on how to realise zero-emission areas, and the associated benefits[v]. The market is fragmented, and suppliers of goods and services do not have the necessary expertise to offer, realise and operate good overall solutions. The costs are therefore higher than necessary due to the pricing risk; investing in climate-neutral and zero-emission solutions requires capital.

Regulations, systems and structures are based on the current situation, and do not promote innovation or new practices[vi]. There is also a lack of new business models and services that reflect future requirements and opportunities in relation to zero-emission areas.

Solutions

Research has shown that it is possible to halve energy use in buildings by 2050[vii]. This will release large amounts of electrical energy (40 TWh), which can be used to supply the growing need for emission-free electricity in transportation and industrial sectors. In addition, research shows that the climate footprint of material use can be halved compared to current solutions[viii].

Climate-neutral and smart cities are an interdisciplinary field. Solutions exist at several levels, and must involve all stakeholders: decisionmakers, industry, the public sector and, not least, the general public. Realising the potential for halving buildings’ climate footprint and energy use requires an increase in expertise, as well as significant measures and instruments from both public and private actors. These measures must be implemented quickly in order to have an effect before 2030/50.

Although climate-neutral and zero-emission solutions require capital at the start, it has been documented that they can still be profitable from a life-cycle perspective[ix]. New technologies and solutions have the potential to reduce costs as they are further developed and become the norm. Reduced energy consumption and increased self-production also provide savings and possible income.

Energy flexibility must be better utilised than it is today through smart management and optimisation. Flexibility can be utilised in individual buildings and on a wider scale. These resources can be linked to the thermal energy system (district or local heating) or the electricity grid.

Model projects can show innovative solutions, and have a significant effect on learning and skills development, as well as influencing prices and promoting innovation[x]. Climate-neutral and smart solutions in buildings, neighbourhoods and cities will also be able to create new jobs.

Main COP29 recommendation: International research communities and industrial partners are developing technologies to reduce emissions and advance the energy transition, and we strongly recommend establishing a global North-South R&D program with open, competitive calls to ensure a fair, accelerated path to a sustainable economy.

References

[i] European Commission. (n.d.). Renewable Energy Directive. Visited August 8, 2024, from https://energy.ec.europa.eu/topics/renewable-energy/renewable-energy-directive-targets-and-rules/renewable-energy-directive_en

[ii] European Commission. (n.d.). Electricity market design. Retrieved August 8, 2024, from https://energy.ec.europa.eu/topics/markets-and-consumers/electricity-market-design_en

[iii] Energidepartementet (2024) Energifakta Norge – Energibruk i bygg. https://energifaktanorge.no/et-baerekraftig-og-sikkert-energisystem/baerekraftige-bygg/ (Visited 13.4.24)

[iv] Backe et al. (2023). Exploring the link between the EU emissions trading system and net-zero emission neighbourhoods. Energy and Buildings.

[v] Uspenskaia, D., Specht, K., Kondziella, H., & Bruckner, T. (2021). Challenges and Barriers for Net‐Zero/Positive Energy Buildings and Districts—Empirical Evidence from the Smart City Project SPARCS. Buildings, 11(2), 78.

[vi] Glicker, J., Toth, Z., Volt, J., Jeffries, B., Fabbri, M., Barrett, M., & Gaitani, N. (2022). Positive energy neighbourhoods drivers of transformational change. Report from the EU projects oPENlab and syn.ikia.

[vii] Sandberg, N. H.; Dokka, T. H.; Lien, A. B. G.; Sartori, I.; Skeie, K.; Manrique Delgado, B.; Lassen, N. Energisparepotensialet i bygg fram mot 2030 og 2050 – Hva koster det å halvere energibruken I bygningsmassen? ZEN Rapport No. 50; 2023. SINTEF og NTNU, Trondheim.

[viii] Wiik, M. K., Fuglseth, M., Resch, E., Lausselet, C., Andresen, I., Brattebø, H., & Hahn, U. (2020). Klimagasskrav til materialbruk i bygninger – Utvikling av grunnlag for å sette absolutte krav til klimagassutslipp fra materialbruk i norske bygninger. ZEN Rapport No. 24; 2023. SINTEF og NTNU, Trondheim.

[ix] Lien, A. B. G., Vågbø, P. C. B., Wigenstad, T., Jenssen, B., & Backe, S. (2024). Merkostnader ved ZEN. En case studie av Nidarvollutbyggingen i Trondheim. ZEN Rapport No. 59. SINTEF og NTNU, Trondheim.

[x] Almås, A.-J., Hauge, Å. L., & Klinski, M. (2015). Markedseffekter av forbildeprogrammer. SINTEF report SBF20150247, Oslo/Trondheim.