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Future cities resilient energy workshop
Date:            11th September 2012

Location:        Manchester

Attendees:

Eddie Townsend                 ICT KTN

Mike Perry                     MBE KTN

Adam Green                     National Grid

Vincent Thornley               Siemens

Sacha Meckler                  WIPRO

David Healey                   WIPRO

Luis Ochoa                     University of Manchester

Pierluigi Mancarella           University of Manchester

Dave Carter                    Manchester City Council

John Parsons                   BEAMA

Steve Connor                   Creative Camera

Jessica Symons                 Clicks and Links

Jacqueline Homan               Birmingham City Council

Steven lesser                  Arup

Martine Tammis                 Manchester City Council
Key policy drivers with focus on growth

The Catapult will at the outset need to establish a framework for Energy in a Future Cities
environment and establish a new framework that takes account of the following drivers. The energy
needs of a city will be complex and there is a requirement to define a number of scenarios in
establishing the framework for business models and R&D.

   •   Sustainability – economics (short term vs long term)
   •   Demand
   •   Policy at a city and national level
   •   Electrification of transport
   •   Flexibility
   •   New business models in the energy sector
   •   Affordability
   •   Customer behavior response
   •   Growth in global infrastructure

The framework will result in a multi level road map addressing industry and communities.

With Future Internet style systems driving behavioral change there is an opportunity to use an
Internet of things pilot to provide real time data feeds to enable modeling of behavioral change.
Consumers need to be more engaged and responsible with energy.

Changes in manufacturing techniques such as 3D printing technology enabling home manufacture
will have a significant impact on behavior and energy needs. The Catapult should embark on
foresight ting and relate these ideas to practical application.

Water systems are a major user of energy and need to be considered in any resilient energy
scenario.

There is also the tendency to view cities as isolated entities but of course they fit into a national
framework and rather that view the solutions from an independence perspective there should be an
emphasis on collaboration at a national or even an EU level.


Definition of “Resilient Energy”

The problem with any term like Resilient Energy is that it means different things to different people
in different contexts and the Catapult should agree a definition upon which any activity can be
based. Any definition should consider different forms of energy, electricity, gas, heat and kinetic
energy, etc., It is not sufficient to say that it should be fault tolerant, it should also address
affordability as well as technology. There is also the challenge of providing high levels of resilience
whilst at the same time meeting aggressive national, EU and international low carbon policy
objectives and targets. Any energy system should therefore take a long view around the drivers
from climate change. If carbon emissions are to be considered in any model then they should also
include the emissions resulting from the supply chain of goods coming into the city.

Evidence from other cities in the UK and internationally have shown that there is more than one
solution for a city or community. A single solution is too narrow and rather we need a road map that
can cater for different scenarios. Putting intelligence in the network and taking into account the
needs of existing building stock are major factors.
Who owns the challenge
The future is less clearly defined as we move to these new energy structures and ownership will be
more diverse and vary with the different levels, from national government to city level to industry
and citizens. This diversity will mean that responsibly will lie at a local level with the emergence of
Community Energy Systems. There will no longer be a single point of ownership with different sets
of owners for different scenarios. With reference to the road map in “Definition of Resilient Energy”,
different aspects of ownership at different levels of the challenge. Budget owners at the different
levels, suppliers, citizens and business, along with city planners will all play a part in the ownership
and management of this complex emerging energy system.

Whatever the ownership structure is at present it will become more complex in the future due to
diversification and devolution of energy sources. Governments set rules and local ownership needs
to ensure the coordination and joint ownership of the “Future Cities Agenda”, taking into account
the regulatory impact.

New Intellectual Property will be generated and the Catapult has an important role to play in taking
the lead on how these IP issues are to be managed by providing working models. The Catapult
can also coordinate the cross sector test beds and act as a driver for early adoption. By taking on
this role solutions can be developed to respond to UK requirements and then be adapted for
export.

 Catapult to act in a coordinator role



What partners need to be included

It is essential that cities are involved from the outset in the establishment of priorities. City groups
similar to those led by the Manchester Digital Development Agency are key Catapult partners. In
fact the Catapult has the opportunity to become part of a worldwide partnership of cities developing
solutions and creating market entry points for UK innovation and solutions.

New supply chain dynamics can be created by enabling cities to see energy production as a profit
making endeavor, rather than a supply issue and waste as a resource rather than a disposal issue.
There are exemplars of new style supply chain implementation such as Linkoping in Sweden that
the Catapult can learn from. How supply chain partners are required to develop these new
business models. Cities are best placed to lead the development of new supply chains.

The central government contribution is through OfGem, but there is a role for the Catapult in acting
as a facilitator, bringing together the stakeholder community, developing UK and international
standards and acting as a hub for the SME community. Catapult can develop a tool box of
integrating solutions and standards that will allow SMEs to operate

Catapults working together can be instrumental in system integration, energy generation and
developing a joined up strategy for services such as transport and health.

 Catapult to bring system and market understanding to the table, commercial
 and legal understanding.
Programme steps and time scale

First 12 months
Scenario mapping

Programme steps are to include scenario mapping, the development and production of components
leading to solutions. All of which will be supported by business models that will enable additional
investment to flow into the catapult and city.

Developing top down scenarios and priorities that can be integrated into solutions will take between 9 and
12 months, during which time the Catapult will engage with communities and identify the “touch points”
between energy systems and other services and how commercial models may be developed.

The development of scenarios will be a continuing role of the Catapult beyond this initial stage
given that we are dealing with an ever changing context.

EU Collaboration

One third of the Catapult funding will come from publically funded development programmes and a
priority in the first 12 months will be to secure this funding through the development of an EU
funded project aimed at connecting cities across Europe.

For UK technology to be used worldwide, cities in the UK see the catapult as a resource.
Integration of other cities systems with energy

Training and Education

The Catapult will in itself be a centre of excellence, but it will also develop links with Universities
and through these establish training programmes to build a UK skill base in the corporate and SME
community. It is important to the success of the Catapult that it is a leader in the areas of energy
sector regulation, knowledge and energy business models, with a cross sector understanding of
energy markets

The skills will encompass technology, system integration marketing and commercialization.
Catapult to act as an intelligent broker and for cities to act as an intermediary expert.


2 to 4 year programme

Feasibility studies will contribute substantially to the laying down of test beds and demonstrators
which have to be complete by March 2014. Convergence and coordination of programmes to
achieve sensible time scales will be important. Also there will be major challenges around scaling
the test beds and transferring the models into a full scale real time city environment

5 to 10 years
UK models and IP exported word wide and the creation of a Future Cities industrial sector.
Improved understanding of market application of Future City Energy systems and the practicalities
of full scale integration in a range of contexts and environments.

 Catapult role: Advocacy and leadership to achieve outcomes of Future City
 Energy Systems
UK Products and Solutions
Even with the level of funding at around £30M the Catapult will need to pursue activities that will
leverage investment of several orders of magnitude greater to establish Future Cities across the
UK providing internet style services. Therefore the most important aspect will be to encourage
inward investment to the UK to support development and manufacturing of resilient energy
systems.

This will be achieved by establishing the Catapult as the centre of excellence, provision of
consultancy services. SMEs who innovative ideas will be able to use the Catapult facilities to test
their concepts, receive technical, market and investment advice and thereby reduce the risk to
potential private investors.

Network components to international standards, finance packages encouraging investment and
developing commercial models.

 Catapult role: Developing the commercial model, systems design
 consultancy.



Success factors

Achieve the goal of two thirds funding from non Technology strategy Board sources, one third from
private industry and one third from other public funding sources, e.g. EU Commission FP7.

Market uptake by achieving replication of city energy projects

Increased activity of SMEs in the supply chain and engagement with large companies.

Objective measurements of knowledge transfer resulting in a UK based centre of excellence,
resulting more SME involvement in the sector with significant commercial benefit

Successful submission of UK Patents and IP

Measureable progress towards more efficient cities with the replication of integrated solutions.

It is not possible to describe the perfect delivery mechanism or process and there has to be an
acceptance of the risk of market failure. However the identification and quantification of risk will aid
the ability of SMEs and cities to gain the required inward investment.


Delivery
The Catapult will in effect be a living laboratory to enable innovation to be tested against realistic
models and standards criteria.

However there are still some significant questions around this section. What is the funding to
support and what are the risks.

Catapult to establish financial business model.

Test bed SME proposals to reduce risk

Need funding framework to support SME development.
Context
The drive towards a Future City concept with new models for energy supply is not isolate to the UK but is a
worldwide objective. The Catapult will have to be constantly aware of the latest state of the art and in fact
be a market leader if the UK is going to gain commercial advantage.

Other programmes

        Smart Grid

        Low Carbon Network Fund

Other opportunities

        Fraunhofer model of branding and selling concept overseas

        Shaping strategy

        System integration

Dependent on scheduling the correct demonstrator

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Manchester future cities energy workshop

  • 1. Future cities resilient energy workshop Date: 11th September 2012 Location: Manchester Attendees: Eddie Townsend ICT KTN Mike Perry MBE KTN Adam Green National Grid Vincent Thornley Siemens Sacha Meckler WIPRO David Healey WIPRO Luis Ochoa University of Manchester Pierluigi Mancarella University of Manchester Dave Carter Manchester City Council John Parsons BEAMA Steve Connor Creative Camera Jessica Symons Clicks and Links Jacqueline Homan Birmingham City Council Steven lesser Arup Martine Tammis Manchester City Council
  • 2. Key policy drivers with focus on growth The Catapult will at the outset need to establish a framework for Energy in a Future Cities environment and establish a new framework that takes account of the following drivers. The energy needs of a city will be complex and there is a requirement to define a number of scenarios in establishing the framework for business models and R&D. • Sustainability – economics (short term vs long term) • Demand • Policy at a city and national level • Electrification of transport • Flexibility • New business models in the energy sector • Affordability • Customer behavior response • Growth in global infrastructure The framework will result in a multi level road map addressing industry and communities. With Future Internet style systems driving behavioral change there is an opportunity to use an Internet of things pilot to provide real time data feeds to enable modeling of behavioral change. Consumers need to be more engaged and responsible with energy. Changes in manufacturing techniques such as 3D printing technology enabling home manufacture will have a significant impact on behavior and energy needs. The Catapult should embark on foresight ting and relate these ideas to practical application. Water systems are a major user of energy and need to be considered in any resilient energy scenario. There is also the tendency to view cities as isolated entities but of course they fit into a national framework and rather that view the solutions from an independence perspective there should be an emphasis on collaboration at a national or even an EU level. Definition of “Resilient Energy” The problem with any term like Resilient Energy is that it means different things to different people in different contexts and the Catapult should agree a definition upon which any activity can be based. Any definition should consider different forms of energy, electricity, gas, heat and kinetic energy, etc., It is not sufficient to say that it should be fault tolerant, it should also address affordability as well as technology. There is also the challenge of providing high levels of resilience whilst at the same time meeting aggressive national, EU and international low carbon policy objectives and targets. Any energy system should therefore take a long view around the drivers from climate change. If carbon emissions are to be considered in any model then they should also include the emissions resulting from the supply chain of goods coming into the city. Evidence from other cities in the UK and internationally have shown that there is more than one solution for a city or community. A single solution is too narrow and rather we need a road map that can cater for different scenarios. Putting intelligence in the network and taking into account the needs of existing building stock are major factors.
  • 3. Who owns the challenge The future is less clearly defined as we move to these new energy structures and ownership will be more diverse and vary with the different levels, from national government to city level to industry and citizens. This diversity will mean that responsibly will lie at a local level with the emergence of Community Energy Systems. There will no longer be a single point of ownership with different sets of owners for different scenarios. With reference to the road map in “Definition of Resilient Energy”, different aspects of ownership at different levels of the challenge. Budget owners at the different levels, suppliers, citizens and business, along with city planners will all play a part in the ownership and management of this complex emerging energy system. Whatever the ownership structure is at present it will become more complex in the future due to diversification and devolution of energy sources. Governments set rules and local ownership needs to ensure the coordination and joint ownership of the “Future Cities Agenda”, taking into account the regulatory impact. New Intellectual Property will be generated and the Catapult has an important role to play in taking the lead on how these IP issues are to be managed by providing working models. The Catapult can also coordinate the cross sector test beds and act as a driver for early adoption. By taking on this role solutions can be developed to respond to UK requirements and then be adapted for export. Catapult to act in a coordinator role What partners need to be included It is essential that cities are involved from the outset in the establishment of priorities. City groups similar to those led by the Manchester Digital Development Agency are key Catapult partners. In fact the Catapult has the opportunity to become part of a worldwide partnership of cities developing solutions and creating market entry points for UK innovation and solutions. New supply chain dynamics can be created by enabling cities to see energy production as a profit making endeavor, rather than a supply issue and waste as a resource rather than a disposal issue. There are exemplars of new style supply chain implementation such as Linkoping in Sweden that the Catapult can learn from. How supply chain partners are required to develop these new business models. Cities are best placed to lead the development of new supply chains. The central government contribution is through OfGem, but there is a role for the Catapult in acting as a facilitator, bringing together the stakeholder community, developing UK and international standards and acting as a hub for the SME community. Catapult can develop a tool box of integrating solutions and standards that will allow SMEs to operate Catapults working together can be instrumental in system integration, energy generation and developing a joined up strategy for services such as transport and health. Catapult to bring system and market understanding to the table, commercial and legal understanding.
  • 4. Programme steps and time scale First 12 months Scenario mapping Programme steps are to include scenario mapping, the development and production of components leading to solutions. All of which will be supported by business models that will enable additional investment to flow into the catapult and city. Developing top down scenarios and priorities that can be integrated into solutions will take between 9 and 12 months, during which time the Catapult will engage with communities and identify the “touch points” between energy systems and other services and how commercial models may be developed. The development of scenarios will be a continuing role of the Catapult beyond this initial stage given that we are dealing with an ever changing context. EU Collaboration One third of the Catapult funding will come from publically funded development programmes and a priority in the first 12 months will be to secure this funding through the development of an EU funded project aimed at connecting cities across Europe. For UK technology to be used worldwide, cities in the UK see the catapult as a resource. Integration of other cities systems with energy Training and Education The Catapult will in itself be a centre of excellence, but it will also develop links with Universities and through these establish training programmes to build a UK skill base in the corporate and SME community. It is important to the success of the Catapult that it is a leader in the areas of energy sector regulation, knowledge and energy business models, with a cross sector understanding of energy markets The skills will encompass technology, system integration marketing and commercialization. Catapult to act as an intelligent broker and for cities to act as an intermediary expert. 2 to 4 year programme Feasibility studies will contribute substantially to the laying down of test beds and demonstrators which have to be complete by March 2014. Convergence and coordination of programmes to achieve sensible time scales will be important. Also there will be major challenges around scaling the test beds and transferring the models into a full scale real time city environment 5 to 10 years UK models and IP exported word wide and the creation of a Future Cities industrial sector. Improved understanding of market application of Future City Energy systems and the practicalities of full scale integration in a range of contexts and environments. Catapult role: Advocacy and leadership to achieve outcomes of Future City Energy Systems
  • 5. UK Products and Solutions Even with the level of funding at around £30M the Catapult will need to pursue activities that will leverage investment of several orders of magnitude greater to establish Future Cities across the UK providing internet style services. Therefore the most important aspect will be to encourage inward investment to the UK to support development and manufacturing of resilient energy systems. This will be achieved by establishing the Catapult as the centre of excellence, provision of consultancy services. SMEs who innovative ideas will be able to use the Catapult facilities to test their concepts, receive technical, market and investment advice and thereby reduce the risk to potential private investors. Network components to international standards, finance packages encouraging investment and developing commercial models. Catapult role: Developing the commercial model, systems design consultancy. Success factors Achieve the goal of two thirds funding from non Technology strategy Board sources, one third from private industry and one third from other public funding sources, e.g. EU Commission FP7. Market uptake by achieving replication of city energy projects Increased activity of SMEs in the supply chain and engagement with large companies. Objective measurements of knowledge transfer resulting in a UK based centre of excellence, resulting more SME involvement in the sector with significant commercial benefit Successful submission of UK Patents and IP Measureable progress towards more efficient cities with the replication of integrated solutions. It is not possible to describe the perfect delivery mechanism or process and there has to be an acceptance of the risk of market failure. However the identification and quantification of risk will aid the ability of SMEs and cities to gain the required inward investment. Delivery The Catapult will in effect be a living laboratory to enable innovation to be tested against realistic models and standards criteria. However there are still some significant questions around this section. What is the funding to support and what are the risks. Catapult to establish financial business model. Test bed SME proposals to reduce risk Need funding framework to support SME development.
  • 6. Context The drive towards a Future City concept with new models for energy supply is not isolate to the UK but is a worldwide objective. The Catapult will have to be constantly aware of the latest state of the art and in fact be a market leader if the UK is going to gain commercial advantage. Other programmes Smart Grid Low Carbon Network Fund Other opportunities Fraunhofer model of branding and selling concept overseas Shaping strategy System integration Dependent on scheduling the correct demonstrator