Digitally Driven Smart Cities

Moving Forward to
Smarter Communities

Report of the Meeting of the Advisory group ICT Infrastructure for

energy-ecient buildings and neighbourhoods for carbon-neutral cities
16th September 2011
Digital Agenda
for Europe

Interested in Information and Communication Technologies for Smart Cities?

Please visit the dedicated area of our website at http://ec.europa.eu/ictforsg

European Commission
Directorate-General Communications Networks, Content & Technology
Smart Cities and Sustainability
B-1049 Brussels
Patricia.Arsene@ec.europa.eu
CNECT-ICTFORSG@ec.europa.eu

Digitally Driven Smart Cities

Moving Forward to
Smarter Communities

Report of the Meeting of the Advisory group ICT Infrastructure for

energy-ecient buildings and neighbourhoods for carbon-neutral cities
16th September 2011

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Table of

content

Foreword by the European Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Smart Cities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
A strategic commitment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
NCA: a lighthouse experimental eld
for the ICT-empowered sustainable city of tomorrow. . . . . . . . . . . . . . . . . . 11
Nuremberg is ready to go for a smarter future! . . . . . . . . . . . . . . . . . . . . . . 12

Preface. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Executive Summary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
The validity of the scope and denition of Smart Cities . . . . . . . . . . . . . 17
How to dene the area of intervention
in order to maximise the European dimension . . . . . . . . . . . . . . . . . . . . . 19
What to include in a Smart Cities programme . . . . . . . . . . . . . . . . . . . . . 21
1. Technical requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
2. Political requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3. Business requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
4. Reections on project requirements, focus and characteristics . . . . . . . . . 24

Conclusions and recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Annex 1: List of workshop participants . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Annex 2: Research topics suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
Annex 3: Relevant initiatives. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Annex 4: Denitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Foreword

by the European Commission

Cities are home to three quarters of the EU
population, gathering also the majority of
businesses, and most public infrastructures;
this turns them into innovation hubs for Europes
economy, but also makes them responsible for
most of our energy consumption and carbon
emissions. It is these two features combined
that demonstrate the signicance that cities can
play in achieving the EUs 20/20/20 energy and
climate change targets.

As systems are using a huge quantity of data

we need to consider putting in place reliable
schemes for data collection and we do need
to agree on metrics for making possible the
comparison of systems performance. The
ICT industry has already made significant
progress by developing together with the
standards developing organizations a common
measurement framework for capturing its
carbon emissions and energy intensity1.

Digital technologies have a signicant role to

play in making cities truly smart and sustainable.
ICT should enable the exploitation of potential
synergies among the various building blocks
that will contribute to achieving a carbon neutral
urban environment, such as energy management
in buildings, electric mobility (electric vehicles, as
well as the related infrastructure and services),
etc.

The next step is now to establish a framework

for assessing the energy efficiency related
improvements and reductions in CO2 emissions
that could be enabled by implementing smart ICT
solutions. There is certainly scope to apply the
resulting information and data in a city context.

Much has been achieved at buildings and

neighbourhoods levels in terms of system
development, but still important challenges
are in front of us for progressively scaling up
such systems at the level of cities. As systems
need to be integrated to ensure their coherent
operation in response to users requirements,
interoperability is a first and fundamental
requirement to be considered.
A sustainable implementation of such systems
needs sustainable infrastructures as well as
a sustainable and coordinated infrastructure
management strategy. When renovating existing
urban networks, synergies are to be found for
making them increasingly interoperable and
accessible. Once again, interoperability appears
as a fundamental requirement.

http://www.ict-footprint.com

Both policy makers and businesses could benet

from being given reliable data and information
and citizens could base their decisions on such
data, becoming thus more engaged in saving
energy and lowering their activities carbon
footprint. Engaging citizens is a significant
challenge in the process of smartening our
cities, as deploying technology without having
convinced our citizens to make use of it would
not bring the so much expected benets.
The many and varied pilot projects deployed
throughout Europe with the aim to measure the
e ectiveness of smart meters in reducing energy
bills proved that technology is an important
enabler, but not an exclusive one. The results of
such pilots clearly demonstrated that the role of
the consumer is crucial. Therefore, e orts must
be made to raise their awareness and to involve
them through education and interaction.

There are also many initiatives on cities taking

o . Through the Green Digital Charter, European
cities have set out a way for reducing the carbon
footprint of their ICT and roll-out ICT solutions
which could lead to increase energy eciency in
areas such as buildings, transport and energy.
The Charter commits its so far 28 signatory
cities to deploy ve large-scale ICT pilots per
city within 5 years from the signature and reduce
their direct ICT carbon footprint by 30 per cent
per city by 2020.

The Commission is planning to consolidate these

various initiatives in a forthcoming European
Innovation Partnership.
I would like to take this opportunity to thank the
members of the Advisory Group as well as the
rapporteur and contributors to this publication
whose active work and involvement have make
this publication a reality and I wish you an
interesting and enjoyable read.
Join us in this amazing journey to making our
cities smarter!
Zoran Stani
Deputy Director-General Communications
Networks, Content & Technology,
European Commission

Keynote messages
Smart Cities
Councillor Paul Tilsley
Deputy Leader Birmingham City Council
I am pleased to o er my support to this report
by the European Commissions Advisory Group.
Europe has set itself immensely challenging
targets on climate change, renewable energy
and energy eciency.
We have to embrace the future. And it is
a future which is increasingly one of scarcity
in materials, of food, and of energy. And it is in
cities where the impact will be most felt. Cities
are already where over 50% of the worlds
population lives and this is expected to increase
to over 60% in the next 10 to 15 years.
It is therefore a huge challenge for city leaders to
manage their cities and make them resilient. We
need Smart Cities to be beacons of progress,
innovation and development.
Birmingham has set a bold and ambitious carbon
reduction target of a 60% cut in the citys total
carbon emissions by 2026 that is now only
15 years away! And our target of cutting the
citys carbon emissions by 60% by 2026 is
ahead of the target set by the UK government
in the Climate Change Act.

Birmingham Declaration which I piloted through

the full City Council. This has committed us to
key actions to be achieved by 2015 on building
retrots, on creating new sustainable transition
communities and for the Council to only buy
electric vehicles for most of its purposes.
We currently spend over 1.8 billion annually
on gas and electricity in our city almost all of
which leaves our economy, as we only have one
electricity generating plant in the city at our
Energy from waste facility.
But cutting this energy bill for example by 60%
would add 1,000 million to our economic output
and take many households out of fuel poverty.
Smart Cities embrace a more integrated approach
to city sustainability. Creating green jobs, supporting
local supply chains through innovative programmes
are all essential and necessary elements of this
smart approach.
I therefore welcome the ndings in this report.
Councillor Paul Tilsley,
Deputy Leader
Birmingham City Council

Through our commitment to the Covenant

of Mayors we have put in place the 2015

City of Birmingham,
Source: EUROCITIES

10

A strategic commitment
Francisco de la Torre Prados
Mayor of Malaga
Malaga is committed to the application of
information and communication technologies
(ICT) to promote energy savings and eciency
as part of its strategic plan, which is underpinned
by culture and tourism, whose indicators already
excel. In a rapidly changing society, cities have to
respond to new challenges quickly. The current
challenge is to transform our cities into Smart
Cities.
Recently, IDC Consultants completed the study
Smart Cities, towards a smart economy, which
names Malaga as the smartest city in Spain.
Malaga appears in the rst place ranking for
scoring high in energy eciency, environmental
protection and intelligent services, as well as
for being a pioneer in the development of an
eco-ecient city through the SmartCity Malaga
project. Our city is rmly dedicated to belong to
the already existing group of European Smart
Cities such as Luxembourg, Aarhus, Turku,
Eindhoven, Linz, Montpellier, Ghent and others
throughout the European Union.
A citys smartness, despite being a very broad
concept, is being evaluated primarily by the
degree of eciency to which they address the
challenge of drastically reducing CO2 emissions,
a challenge that all cities will have to undertake
before the middle of this century. Without ICT
and intelligence, it would not be possible at all.
In urban areas, new systems and methodologies
will need to be developed and implemented for
mobility, building, urban planning, rehabilitation
of existing buildings and urban spaces, and for
energy grid management.

City of Malaga,
Source: EUROCITIES

Smart cities will have to be planned considering

parameters that have not been taken into
account up to date, and the various planning
instruments will have to be well coordinated
and consistent with the objective of reducing
emissions.
Smart cities will be those which their current
actions, now described as mere pilot projects,
become in short the standard for urban planning
and design.
In Malaga we are proud of these projects,
especially Smartcity Malaga, which is working
on a new urban energy management model that
incorporates the end user as an active part of
the electric system, by providing systems for
renewable energy generation, for energy storage,
for monitoring from generation to the end user
and for control of electro mobility incidents in
the distribution grids.
Finally, financial support from the national
governments and the European Union will be
essential to make Smart Cities a global reality.
The transformation of conventional cities will
not be possible given their current financial
resources. Even in a crisis scenario, actions
conducted this way, will not only be a benet
for citizens but also a new and important source
of economic growth.
Francisco de la Torre Prados,
Mayor of Malaga

11

NCA: a lighthouse experimental eld for

the ICT-empowered sustainable city of tomorrow
Christian Estrosi
Mayor of Nice
As an international and sustainable metropolitan
area, the inter-communal structure Nice
Cte dAzur (NCA) is comprised of the city of
Nice and 26 other towns and cities covering
a 350 km2 both urban and rural territory with
its 520 000 inhabitants. A key ambition and
goal of NCA is to explore di erent aspects of
sustainable development that are at the heart
of this community issues and projects, including
public transport, water production, waste and
sewage management, economic development,
innovation, energy, green areas, urban planning,
environment and public lighting.
As a typical example, NCA has developed an
urban monitoring project for the comprehensive
measure and optimization of a complete range
of services for real-time assessment of the sustainable citys performance using technical or
environmental sensors to measure air and water
quality, noise levels, lighting and waste management, trac optimization and many others
factors. NCA is also actively involved on another
prototyping and testing projects, using a joint
design methodology, of an innovative technological solution to encourage environmentally
friendly behaviors in families. Both projects are
fundamentally based on the use of information
technology which is in full coherence with
NCA being one of the very initial signatories of
the Green Digital Charter, an initiative launched
by EUROCITIES networks in 2009.
Besides, a ground breaking project driving the
eco-metropolitan area on the French Riviera for
decades to come is hosted by NCA: the Ecovalley
located in the Var Rivers plain, an operation of
national importance covering almost 10 000 ha.
This project aims at creating thousands of jobs
in innovative business sectors, and at setting
the standard for incorporating environmental
considerations in economic social and urban

development project. Designed as a laboratory of

sustainable development, devising and applying
the most advanced technologies in landscaping,
urban planning, construction, energy management
and integration of ICT, it will be a capital driver for
large-scale qualitative and quantitative change.
The EcoValley project has earned NCA its place
among thirteen French communities declared as
EcoCities. The NCA EcoCity project is based on
four strategic principles:
Choose a sustainable form of development;
Encourage future mobility;
Move towards energy self-suciency (solar
heating and air conditioning, ocean thermal
energy, development of wood fuel, smart
grids, best buildings, ...);
Represent the smart cities of the future.
NCA intends to develop, in partnership with the
French Riviera Chamber of Commerce and Industry
and the main actors of the industrial sector, a chart
of functional architecture for smart grids, based
on eight experiment projects currently undertaken
within the EcoCity of the French Riviera, making
todays buildings smart-grid compatible while
standards are still being identied.
All those e orts are relying on a deep integration
of ICT, so as to gather and analyse huger and
huger amount of data and information, and
to support and enhance decision-making at
a complex district / city scales and especially
contributing to decarbonate the balance energy
/ greenhouse gases in our cities. In such a context,
NCA fully acknowledge and support the need for
future research and development of ICT tools,
systems and infrastructures for energy-ecient
buildings and neighbourhoods that will form our
carbon-neutral cities of tomorrow.
Christian Estrosi,
Mayor of Nice

City of Nice,
Source: EUROCITIES

12

Nuremberg is ready to go for a smarter future!

Dr. Ulrich Maly
Mayor of Nuremberg
The City of Nrnberg has been active since more
than decade in developing and implementing
a roadmap for a carbon-neutral city. The vision
is the smart, sustainable city which is well
performing by using energy-efficient smart
technologies in all areas of city-life and building
on the smart combination of endowments and
activities of self-decisive, independent and
aware citizens. At the moment we are focussing
on the following aspects:

City of Nuremberg,
Municipal Energy
Management.,
Source: Nuremberg City

Improvements of energy eciency in the

building sector: renovation and energetic
improvements in the existing building
stock; implementation of strict standards
in new buildings; new design features for
commercial and industrial buildings
Implementation of smart technologies:
smart-metering, development of smart grids
in a step-wise process, virtual power plant,
new tari models for private consumers as
well as for industry and commerce, applied
research on integrated systems, regulation of
household appliances, user friendly concepts
Green IT: reducing energy consumption in
data centers of the public and parastatal
sector; promotion of a Green IT campaign
in order to reduce energy consumption in
commercial data centers in the city and
in the region on a voluntary basis and the
development of concepts improve eciencies
through application of modern control
technologies

Integration of e-mobility in the urban transport

concept: combined systems: individual/public
transport, use of light transport facilities
like pedalecs and e-motorbikes, role of
battery systems in storing surplus energy,
new city cars for individual and commercial
use/car-sharing systems, investment in lowemission technologies
Rural-urban cooperation in promoting
renewable energies: a future sustainable
energy supply must be based on a mix of
energies. In the city area photovoltaic and
solar-thermal units as well as geothermal
resources may contribute to this mix, but
hydropower, wind energy and biomass will
mostly be supplied in the rural environs.
A balanced system must be based on
agreements between the regional partners.

This program is to be materialized on regional

level. The European Metropolitan Region of
Nrnberg formed a committee for climate
protection and sustainable development in our
region. This committee is at present working
on a regional agenda defining targets and
measurements to convert the regional energy
supply system and to set a common target
for mitigation of and adaptation to climate
change resulting in a smart development
scenario.
We are ready to go!
Dr. Ulrich Maly
Mayor of Nuremberg

13

Preface
This report is the result of the second meeting
of the Advisory Group on ICT Infrastructure for
energy-ecient buildings and neighbourhoods
for carbon-neutral cities. It builds on the
foundation established in the rst meeting
held one year ago, on September 10th 2010,
and documented in a report, published on the
European Commission web site2.
That first meeting concluded that energy
ecient neighbourhoods should be developed
as a strategic concept for Europe, with selected

The Advisory Group meeting held on September

16th 2011agreed that the conclusions of the rst
meeting are still valid and that developments
over last 12 months are proving the timely
relevance of this approach. This second meeting

cities acting as pilots, providing information,

motivation, and reassurance to encourage other
European cities to adopt the concept and serving
as test-beds, enabling the concept to develop
and adapt by rapid development stimulated
by international research, exchange of knowhow and technology transfer. The report of
the respective meeting also included strategic
recommendations on topics to address and
suggested activities to be undertaken in the
short term (2011-2013).

discussed the issues in more depth and in this

context of rapid development, aiming to provide
more specic conclusions and recommendations
for future Smart Cities and Communities
initiatives in the period 2014-2020.

http://ec.europa.eu/information_society/activities/sustainable_growth/docs/elsa/elsa_2010/report_elsa2010.pdf

14

15

Executive

Summary

The remit of the 2011 Advisory Group meeting

has been to provide advice on strategic objectives
and priorities for smart cities initiatives in the
next Framework Programme (Horizon 2020),
to identify the key issues to be dealt with and
anticipate the relevant areas for research and
technological development.

focus on each realm of activity (suggested as

energy, eServices and ICT) whilst promoting
interoperability and compatibility of
communications between them and aiming for
progressive integration.

At the European level, progress manifests itself

in the Smart Cities and Communities topic within
the current Energy Work Programme call for
proposals3, the plans for an ICT joint call in 2012
and the expectation of a large scale initiative in
2014 as part of Horizon 2020.

It is clear that ICT should be the connection to

enable exploitation of potential synergies among
the various smart realms of activity that will all
contribute to achieving carbon-neutrality in cities.
These realms include energy in buildings, electric
mobility, eHealth, eCare, and eGovernance.
European added value will come from achieving
open standards and EU wide compatibility of
systems enabling cross-border competitiveness,
rapid progress and thus a competitive advantage
in the global marketplace.
In the short term, the Advisory Group
recommended that Smart Cities initiatives

FP7-ENERGY-SMARTCITIES-2012

The meeting concluded that:

Smart Cities and Communities initiatives

(hereafter abbreviated to Smart Cities)
should focus on implementation of existing,
advanced state of the art products and
services,
research is needed on communicationsrelated aspects to facilitate integration and
interoperability issues, on utility networks
and cyber security issues, on overcoming
financial barriers, on developing suitable
frameworks for public-private risk sharing
enterprises and on societal aspects regarding
behavioural change,
exibility is required in terms of denition of
city and community,
public private partnerships are a vital success
factor in smart initiatives
existing technology platforms, trade
organisations and networks of towns and
cities should be involved in the programme
and in projects.

16

17

The validity of the scope

and definition
of SmartCities
There is general agreement that the primary
objective of Smart Cities is the achievement of
the 2020 energy objectives4, towards carbon
neutral cities and neighbourhoods, and towards
European competitiveness. Beyond that, opinions
vary from those advocating a very tight focus
on energy related aspects (smart grids, smart
meters, and intelligent buildings) to those
advocating a much broader focus, including
a wide range of community and citizen based
services, where ICT has a role in replacing
physical resources with digital resources and
thus contributing to a more carbon neutral
society.
There was solid agreement amongst the
members of the Advisory Group present at the
meeting that the energy ecient neighbourhood
concept is denitely valid and should be kept
as the focus at this rst stage of development
of Smart Cities. The implication here is that
the focus should initially be kept tight in order
to facilitate rapid development of coherent
standards for interoperability. These standards
should contemplate future systems and the
widest range of applications that can be
envisaged now.

The challenge is to offer a wide variety of

services focussed directly on citizens and
through business and governance, the goal
is to develop thriving industries founded on
technological innovation.
It was suggested by the Advisory Group
members representing municipal authorities
that the energy efficient neighbourhood
concept can serve to integrate many current
concerns such as energy eciency in buildings,
decentralised generation and other complex
activities being labelled as smart. The potential
to improve the quality of service and eciency
of resource use through smart eHealth5 and
care services (for example for elderly people)
and citizen participation through eGovernance
is also recognised. Electric mobility is seen as
one component in a complex chain of mobility
actions involving management of emissions,
time, space, etc. o ering opportunities to recover
space and time for higher value uses.
It is clear that projects already being implemented
prior to 2011 are already demonstrating the
technological feasibility of smart solutions and
that future projects can therefore be expected to
be more ambitious, aiming to o er increasingly
integrated solutions.

Energy and climate change objectives for 2020 adopted by the European Council in 2007: to reduce greenhouse gas
emissions by 20%, to increase the share of renewable energy to 20% and to make a 20% improvement in energy eciency.
Subsequently incorporated into the Europe 2020 Strategy for smart, sustainable and inclusive growth and into the initiative
Resource ecient Europe. http://ec.europa.eu/energy/strategies/2010/2020_en.htm

eHealth etc. where e is a prex indicating processes supported by electronic processes and communication

18

19

How to define
the area of intervention
in order to maximise
the European

dimension

As a preface to discussion on this subject,

it was noted that certain denitions require
clarication. The CSTB (Centre Scientique
et Technique du Btiment) representative
from France proposed the denitions they are
using as a working model: Neighbourhood
to be a group of buildings, District to be
neighbourhoods plus public spaces, roads,
etc.), and City to be a network of districts.
In terms of project development, those actively
involved in on-going demonstration projects
or in preparing Smart Cities project proposals
suggested that it was wise to build project
consortia with similar cities and with a limited
number of dimensions within the project
(focussing on a theme rather than trying to be
innovative and smart in many areas at once).
A specic suggestion in terms of maximising the
European dimension was to consider operating
at 3 levels: (1) core cities demonstrating
technology, (2) surrounding regions involved in
the project and targeted for direct replication or
exploitation of results and (3) satellites in similar
or neighbouring member states (e.g. Czech
Republic cities linked to German projects and
visa versa) in order to maximise the European
dimension.
The private sector perspective was that the
clearest business case for pioneer market
opportunities stays in large or densely populated

cities. Conversely, where population density

is lower, rates of return on infrastructure
investments are lower making it harder to
develop a viable business case for developing
smart function capability. This was a clear
contrast with the more territorial perspective of
national representatives. Those ones highlighted
the fact that countries and regions with dispersed
populations have specic research interests in
developing smart initiatives in order to improve
service provision in less densely populated areas
in order to improve energy grid stability and load
management in the context of more distributed
generation.
In conclusion, in terms of defining the area
of action, Cities and Communities is a good
inclusive title allowing all communities to be
included in the initiative. However, within this,
a clear terminology is needed to enable debate
about levels of action (community, district,
neighbourhood, etc.) to progress. In terms of
the scale of the area of action, there is a good
case for considering various degrees of activity
around a core pilot action so as to maximise the
European dimension. Finally, in terms of building
public and private partnerships, business and
public interests will coincide in large or densely
populated cities. Smaller urban areas and less
densely populated areas may need specific
initiatives to be defined where the business
opportunities are not so clear.

20

21

What to include

in a Smart Cities
programme
The remit here was to provide advice on how to
organise the programme for achieving maximum
EU level benet in terms of requirements, scope
and ambition. There was consensus that the
prime requirement for smartness in cities
and communities is interoperability: the ability
for things to communicate e ectively, and for
systems to be integrated in such a way that
they operate coherently in response to the
users requirements. Improved interoperability
must therefore be a core element of all future
initiatives. European added value will come from
projects that contribute to the development of
common, widely implemented, de facto open
standards facilitating interoperability, and
contributing to market development across
Europe. The following paragraphs expand on
these themes.

1. Technical requirements
FP7 funded projects addressing smart buildings
and energy eciency have been built around the
assumptions that an appropriate, ICT enabled,
information infrastructure will exist to help
with the management of the energy usage in
buildings and public spaces. This infrastructure
has primarily focused on (the expected future)
availability of smart meters, and various smart
grid technologies that will, potentially, allow
neighbourhoods to share energy services, both
for consumption and local generation. The
projects also make fundamental assumptions
that the home automation/smart home ICT
solutions exist, and that they are robust enough
to be deployed in all dimensions: reliability,
verifiability of applications, interoperability,
trust and security. However, the outcome of FP7
funded work in this area appears to strongly
suggest that, alongside trials and development
projects, some of the challenges are more
6

fundamental and require a strong research

action to enable the expected innovation and
subsequent commercial exploitation of the
results.
Interoperability of communication system
components and distributed systems has
typically been addressed through standardisation
routes. Standards have served reasonably
well in vertical high-volume markets with
relatively well-specied service applications (e.g.
cellular technologies, Wi-Fi, or DLNA for home
entertainment systems), but they appear to have
been only partially successful in the horizontal
multi-service application markets (e.g. smart
home technologies, home automation).
Open interoperability solutions for in-home
systems are needed to enable true innovation
of the energy eciency services, and more, in
homes and buildings. Initial work on this has
been started by CENELEC6. Its initial point is that
no single specication, standard or technology
is going to win an interoperability race in the
home and building electronic systems space.
Therefore, the way forward is the development
of an interoperability ecosystem for the smart
buildings. Participation in this ecosystem is
encouraged through peer-to-peer testing; in
such a way standardisation is only needed to test
against requirements and not for each system
component.

2. Political requirements
At the political level the pre-requisite for
becoming a smart city is to identify, monitor
and control the relevant ows (whether energy,
people, service provision, etc.) and set realistic
targets for improvement. Managing them in
an integrated manner (e.g. not only electrical

CENELEC the European Committee for Electrotechnical Standardization. Interoperability framework requirements
specication for service to the home (IFRS) (CWA 50560:2010) http://www.cenelec.eu/dyn/www/f?p=104:110:445484274
2787079::::FSP_PROJECT,FSP_LANG_ID:22584,25

22

energy but also gas and heat) is the challenge

and is where ICT is expected to provide smart
solutions. The process to follow starts with the
development of a quantied energy plan of the
area (district, city, etc.) leading to developing
more open energy access initiatives such as
smart grid pilots and district heating schemes
and culminates with smart strategies being built
into strategic land use planning.
The process requires the creation of suitable
political structures and building a consensus
that allows a stable framework to be developed
with a suitably long-term perspective. There
is consensus that these structures should
include public private partnerships and be
supported by multidisciplinary thematic project
groups working in collaboration with a wider
sustainability forum.
To summarise, first the requirements to be
met must be dened, agreed politically leading
to institutional commitment to developing
solutions to meet the requirements. Secondly,
participatory structures involving public, private
and community based organisations must be
designed, constituted and consolidated. Only
with these pillars in place, can a realistic plan
for making the city smarter be developed.
Relevant political support structures already exist
that o er synergies with Smart Cities objectives.
For example, the European Commission
led Covenant of Mayors initiative7 requires
signatories to develop local energy action plans.
Most signatories are now challenged to achieve
the objectives in their plans. This challenge is
driving smart initiatives as they are perceived as
relatively cost e ective due to the high degree of
integration and optimisation of various factors
that can be achieved.
There are two conclusions to be made here.
Firstly, as relevant networks and initiatives for
pro-active cities exist, a city or neighbourhood
that wants to get EU support to be smart should
already be on the road, in the right direction, with
a clear idea of where they want to go and good
indications of how to get there. Secondly, the
lead cities in Europe are already demonstrating
the validity of the Smart City concept as their
strategic plans and quantied targets all include
improvements in the operational efficiency
of systems through the application of ICT as
a means of achieving their goals.
Finally, European added value from the political
point of view will come from sharing experiences
in areas such as developing strategic plans, joint

See Annex 3: Relevant initiatives

procurement of technologies, economies of scale,

and other activities linking neighbourhoods,
markets, and cities and driving interoperability
of technical solutions.

3. Business requirements
The background for business is the changing
marketplace influenced by climate change
related policy and consequently ruled by carbon
management criteria.
In the urban context, companies with vested
interests, particularly utility companies with
embedded investments in distribution networks,
aim to be market leaders in order to maintain
their share of business, to expand their activities
and to gain a competitive edge. This explains the
motivation of these companies to participate in
Smart Cities initiatives. Their research objectives
involve establishing the optimal technical mix of
solutions and devising nancing mechanisms and
viable business models that enable commercial
exploitation in these solutions.

The construction sector

The role of the construction sector is to support
cities in the transition to carbon neutrality,
understand cities energy use and requirements,
and provide a portfolio of solutions with as
much added value as possible. This portfolio
includes highly energy-ecient solutions and
the integration of ICT in new buildings and
refurbishment projects. However, it is important
to recognise that there are various economic,
cultural and technical constraints that must be
addressed in order to favour the selection of the
best solutions for developing smart, carbonneutral, cities.
Although research will continue to o er new
and better solutions, the companies involved in
Smart City initiatives already have considerable
technical and technological capability. The
challenge is organisational: there are many
stakeholders, clients and actors in a smart city.
This makes it a complex market to target. Given
the fact that the European and global trend is
for population to be increasingly concentrated
in urban areas, there is no doubt that political,
social and business interests coincide with
a focus on the transition towards carbon-neutral
cities.
In summary, cities need to be more ecient
and liveable to be sustainable and that means
being smarter. In the short term (until 2020),
this means rapid and extensive implementation

23

of solutions adapted to restricted budgets,

integrated to cover all needs and exploiting the
best technology currently available.

The Energy sector

One of the peculiarities of utility businesses is
that the specications of the product they are
to deliver are dened and regulated by law as
is the reliability of service that can be expected
(~100% in most cases). New market needs,
such as more sustainable energy, low carbon
energy and energy eciency, require knowledge
and expertise in long term solutions in order to
continue to respond to customer demands that,
over time, become regulatory requirements,
whilst also fullling shareholders expectations.
Conceptually, large urban clients for
energy companies are: municipalities, local
manufacturing, universities and other public
buildings. Small businesses and the domestic
sector represent di erent challenges as they are
small clients in terms of individual consumption
although collectively they represent the largest
and least controllable part of the client base and
distribution system. The product base consists
of energy supply (conventional generation
and renewable energy sources in the case of
electricity, gas and heating supplies) and of
energy services.
Practically, a smart grid is the nexus of
all initiatives in the electricity sector, with
interoperability a requirement for bilateral
communication allowing consumers to become
prosumers and contribute their intelligence to
the smartness of the system and the local/
regional marketplace. The ICT sector is included
in this vision as their technology is needed as
an integral part of this smart grid.
In terms of communication, to start to
become smart, energy companies need real
time information concerning the operational
aspects of their distribution grid. This requires
ubiquitous, bilateral communication. The ideal
to be pursued is full interoperability of systems
and components. ICT must provide more
ubiquitous connections, enabling more complete
information availability.
In terms of energy generation technology
and management systems, many suitable
substitutes and solutions exist to improve
energy management (in terms of efficiency

improvements and reductions of emissions

and costs. These include renewable energy
sources, CHP/DHC, smart meters, e-mobility,
biomass, energy eciency solutions, etc. The key
requirement is nancing. Focussing on nancing
highlights attention is needed such as de-risking
investments by providing a stable framework for
collaboration between stakeholders in the urban
environment so that investment in equipment
with a long expected lifetime (such as meters
and street lights) can be nanced on a ordable
terms.

The ICT Sector

In terms of ICT applied to the built environment,
the denition of scope agreed at the previous
meeting is still valid as demonstrated by trends
in the reorganisation of the sector. By way of
example, Siemens has recently restructured its
organisation and has created a new sector called
Infrastructure and cities to develop integral
solutions related to Smart Cities.
The key to meeting the 2020 energy objectives
is implementation, starting with manageable,
large scale demonstration as part of a strategic
programme to scale up Smart Cities in order
to develop a European market, foster European
technology applications and support adoption
of technical standards originating in the EU. The
ability to bring together the diverse stakeholders
and organisations with obvious synergies in the
urban environment will be a key factor in the
success of the programme. These include, for
example, relevant trade organisations such as
eu.bac8, the German DIN DKE9 and emerging
networks such as the Covenant of Mayors.
In terms of contributing to standards, there is
a relevant example to be emulated: the success
of the GSM standard, developed in the EU and
now used by about 80% of the global mobile
market. Conversely, lessons should be learnt
from the building sector where the American
LEED10 energy certication scheme is globally
recognised as a standard to the detriment of the
opportunities for a unied EU approach to energy
certication o ered by the EPBD11. This is a clear
example of where Smart Cities initiatives could
deliver European added value by contributing
to the adoption of standards that serve to drive
down costs for investors and manufacturers
thus giving competitive advantages in terms of
market position and penetration.

European Building Automation and Controls Association (eu.bac) http://www.eubac.org/

The DKE is the German organization responsible for the elaboration of standards and safety specications covering the
areas of electrical engineering, electronics and information technology. http://www.dke.de

10

Leadership in Energy and Environmental Design (LEED)

11

Energy Performance in Buildings Directive (EPBD)

24

From the telecoms sector in Italy, the perception

is that the entrance barriers are high and that
the capacity of local authorities to invest in
infrastructure projects is likely to be severely
compromised in the short term by current
economic conditions.

The list of stakeholders includes equipment

manufacturers, telecoms sector, energy sector
and the various departments with relevant
competence (planning, infrastructure investment,
maintenance, lighting, visual impact, promotion,
environment, etc.).

The ambition of the Smart Cities concept requires

a considerable e ort in team building in order to
bring together many diverse actors in both the
public and private sectors, oen with competing
competence or business interests.

European added value will come from sharing

pioneering experiences and best practice so that
the coordination and collaboration required to
achieve such progress ceases to be extraordinary
and becomes standard practice with models that
can be copied and adopted in any municipality,
city and region.

A real need is identied for a systems approach

to overcome traditional segmentation of urban
elements and develop strong teams to break
down barriers and gain momentum for change.
A portfolio approach is proposed to enable
exibility and creativity in developing solutions
that may be adapted to the unique circumstances
of each neighbourhood, community and city.
The role of the telecoms industry in the smart
city is to continue developing broader bandwidth,
to ensure ubiquitous service provision and
to contribute service enabling platforms and
supporting modular peer-to-peer management
approaches.
Given these barriers and limitations, part of the
Smart Cities approach must be to nd synergies
when renovating existing urban infrastructure,
overcoming the traditional segmentation of
utilities in order to provide integrated smart
services through the distribution networks
owned by the utility companies and public
authorities. Management for energy-eciency
should be integrated across all kinds of energy
distribution networks so that these networks
become increasingly interoperable from the user
perspective and accessible from the company
perspective.
One example from Italian towns is the
opportunity presented by the need for street
lighting renovation. Replacement not only o ers
considerable energy saving and cost reduction
potential, but the street lamps can also be
integrated in the data transmission network,
offering Wi-Fi access, and the possibility to
add sensors that could provide information on
everything from trac ows to environmental
quality factors, and business opportunities for
digital signage, advertising and publicity. This
example illustrates not only the potential for
synergies but also the need for coordination
of all stakeholders to achieve smart solutions.

4. Reections on project
requirements, focus
and characteristics
It is considered important to achieve a balance
between demand pull and technology push. In
this context the role of public private partnerships
(PPPs) is viewed as very important, facilitating
the growth of demand for smart services and
accelerating the penetration of the available
technology. Evidence was provided to support
both private and public leadership of such
partnerships depending on the circumstances.
In the timeframe of the next framework
programme, it was suggested that 3 focus areas
could be promoted: Energy, eServices and ICT,
all with a view towards progressive integration
of the three areas aiming to achieve ubiquitous
communication, seamless connection and
interoperability.
Research into the success factors of existing PPPs
and demonstration projects was presented as
a means to dening the requirements and scope
of such projects. It was observed that opportune
location, in terms of both time and space, for
example coincidence with international events
and with significant infrastructure or urban
regeneration projects, were key success factors.
Projects with these factors have a considerable
advantage in terms of achieving a critical mass
of political momentum and achieving impacts
beyond the project itself. As for project specic
variables it was observed that certain energy
related themes were recurrent in successful
projects suggesting that a non-exclusive, list of
key technologies or systems to be considered
for inclusion could be useful in a programme of
work description.

25

Regarding the ambition of present and future

projects, the Advisory Group suggested that
a lack of integration is the factor limiting the
impact of present projects and that a more
integrated approach is therefore needed. It was
also suggested that successfully dening the
ambition of a project involves achieving a balance
between innovation and implementation,
between and research and development.
A key message from the Advisory Group was
that there are many suitable technological
solutions that are mature and commercially
viable for large scale implementation subject
to overcoming barriers related to nance and
communications infrastructures. Therefore the
technological focus should be on implementation
of existing, advanced state of the art products
and services with research focussing mainly
on communications aspects to facilitate

systems integration (see conclusions and

recommendations for a detailed list of suggested
topics), on overcoming nancial barriers and
developing suitable frameworks for publicprivate risk sharing enterprises, and on societal
aspects regarding behavioural change.
The goals will move over time. The scale for smart
management systems have already moved from
buildings to neighbourhoods and, within the
lifetime of Horizon 2020, it can be expected to
move neighbourhoods to districts, and cities.
This scaling up will require achievement of
technical objectives in terms of interoperability
and a transition from current pilot experiments/
research projects towards a more holistic
vision encompassing the organisation of urban
patterns, management and costs, renovation and
evolution.

26

27

Conclusions
and recommendations
As mentioned in the preface to this document,
the conclusions of the previous meeting are still
valid and the September 16th 2011 meeting
sought to review progress and build on them,
o er more detailed insight and give specic
recommendations for initiatives in the period
2014-2020.

Collaboration with existing networks of towns

and cities to exploit existing knowledge and to
build on work already done is seen as essential.
These networks were also recommended as
suitable channels for promoting Smart Cities
rather than the suggestion of promoting
Champion Smart Cities.

The scope for Smart Cities should remain wide, in

order to foster creativity and innovation and yet,
in order to maintain a clear direction and focus,
should be guided by the principle that Smart City
initiatives should contribute to the achievement
of the EU 2020 energy objectives, towards
carbon neutral cities and neighbourhoods, and
towards European competitiveness.

It was suggested that 3 focus areas, Energy,

eServices and ICT, could be promoted the next
framework programme. The aim should be to
progressively integrate these areas, in order to
achieve ubiquitous communication, seamless
connection and interoperability.

Given Europes geographical diversity, it is clear

that exibility is required in terms of denition
of city and community.
A key message from the Advisory Group was
that the implementation of existing, advanced
state of the art products and services should
be the top priority for the programme. Research
should focus on communications aspects to
facilitate integration and interoperability, on
overcoming financial barriers, on developing
suitable frameworks for public-private risk
sharing enterprises and on societal aspects
regarding behavioural change (see annexes
for details). Work on standards is also seen
as necessary, in collaboration with trade and
statutory organisations, and in building on
progress already made.

The starting point for potential projects should

be cities in Europe already demonstrating
the validity of the Smart City concept and
participating in relevant networks and initiatives
for pro-active cities. Their strategic plans and
quantied targets should include improvements
in operational eciency of systems through the
application of ICT as a means of achieving their
goals. Therefore a city or neighbourhood that
requests EU support should already be on the
road, in the right direction, with a clear idea of
where they want to go and a good plan of how
to get there.
In terms of political and organisation structures,
it is recognised that achieving results requires
creating suitable political structures and building
a consensus that allows a stable framework to be
developed with a suitably long-term perspective.
Public private partnerships have a clear role
to play and the structures developed should
maximise public participation (for example
through thematic project groups working in
collaboration with a wider sustainability forum).

28

Cities need to be more efficient, to improve

in terms of quality of life indicators, to be
more sustainable and to do so with limited
resources. That means being smarter. In the
short term (until 2020), this involves rapid
and extensive implementation of solutions
adapted to restricted budgets, integrated to
cover all needs and exploiting the best available
technology. In terms of infrastructure, part of
the approach must be to nd synergies when
renovating existing urban networks: overcoming
the traditional segmentation of utilities in order
to provide integrated smart services through
the distribution networks owned by the utility
companies and public authorities. These networks
should become increasingly interoperable and
accessible.
For energy companies, real time information
of the operational aspects of their distribution
grid is needed. This requires ubiquitous, bilateral
communication and increasingly interoperable
systems and components with data handling
and transmission capabilities. The ICT sector
needs to provide more ubiquitous connections
and greater capacity, enabling more complete,
integrated, information availability. Privacy and
data security must be considered carefully in
order to gain broad acceptance of and trust in
the ICT systems.

Energy generation technology and management

systems have suitable existing substitutes and
solutions to deliver the required improvements.
What are needed are suitable financing
mechanisms: innovative ways of de-risking
investments and providing a stable long term
framework must be developed. Also required
are ways of sharing risk between partners in
the urban environment so that investments
with a long expected lifetime can be nanced
on a ordable terms.
Work still needs to be done to achieve full
implementation of the EPBD and EED in the EU
member states. There is a need for a European
label for energy efficiency certification in
buildings in order to reduce costs and improve
EU competitiveness.
Buildings built before 1978 account for 80% of
energy used today and buildings already built
will account for 80% of the buildings stock in
2030 (based on an annual renovation rate of
1.5-2%) so focusing existing buildings is the key
to achieving targets.
Substantial savings of up to 30% can be
achieved with relatively short paybacks by the
improvement of operation, controls and energy
generation appliances. Therefore an ICT based
approach is valid in all buildings, and in particular
commercial/industrial buildings where buildings
management systems are increasingly being
installed as part of refurbishment work.

29

Annex 1:
List of workshop

participants

National Strategies

Elena Villalba, Ministry of Science and

Innovation, Spain
Kim Davis, Research Council of Norway

Andrea Costa, Vice President Vertical

Marketing & Smart Service of the Business
Unit Public Sector, Telecom Italia, Italy
Friedrich Georg Schwarzlnder, Industry
Business Development, SAP Deutschland AG
& Co. KG, Germany

Cities Strategies
Also

Peter Pluschke, Deputy Mayor for

Environment, City of Nrnberg, Germany
Alexander (Sandy) Taylor, Head of Climate
Change and Sustainability, Birmingham City
Council, United Kingdom

Invitees who could not attend but who

provided position papers

Academia

Joe McGeehan, Director, Centre for

Communications Research, University of
Bristol, United Kingdom

The Construction Sector

Ger Maas, Director for Strategy Royal BAM

Group, Netherlands
Alain Zarli, Head of Division Information
Technologies and Knowledge Dissemination
Department, CSTB, France

The ICT Sector

Martin Schaer, Vice President, Senior

Advisor to the Management Board, , Building
Technologies Division, Siemens Switzerland

Kenneth Asp, the Swedish National Energy

Agency, Sweden
Andreas Goerdeler, Head of Division
Development of Convergent ICT, German
Federal Ministry of Economics and
Technology, Germany
Miguel Angel Snchez Forni, Director de
Sistemas de Control y Telecomunicaciones
Iberdrola, Spain
Maher Chebbo, Vice President Head of
Utilities Industry for EMEA, SAP France

European Commission Ocials

The Energy Sector

Anders Johnson, Head of Program Sustainable
Cities, Vattenfall AB, Sweden
Alain Glatigny, Innovation, Solution & Smart
Grid Manager, Energy Business, Schneider
Electric, France
Jesus Garca Martin, Business Manager,
Iberdrola, Spain

Jan Franke, Eurocities, Belgium

Colette Maloney DG INFSO, Head of Unit

ICT for Sustainable Growth
Merce Griera-i-Fisa DG INFSO, ICT for
Sustainable Growth
Bernard Barani DG INFSO, Assistant to
Megan Richards Director Converged
Networks & Services
Georg Houben DG ENER
Patricia Arsene DG INFSO, ICT for
Sustainable Growth Meeting Organiser
and contact person

Rapporteur for the Advisory Group

Mike Barker, Building Energy and Environment

Group, CIMNE (UPC), Spain

30

31

Annex 2:
Research topics
suggestions
ICT

Energy

Correlation of information to business

processes (from data to knowledge)
Denition of system-border BACS/ EMS and
ICT
Dynamic discovery of information and
sources (CPS/SoS)
Federated architectures depending on CPS
and large-scale SoS
Guarantee Quality of Service (QoS), timely
delivery and processing of key events
High-volume data management,
ICT approach in existing commercial/
industrial buildings
Information/Content centric networking
and deep advanced information modelling
(internet of services)
M2M (Machine-to-Machine or the Internet
of Things)
Optimisation of connectivity and information
transfer
Sensor networks (including the use of mesh
networking, cloud computing and relaying)
System integration (i.e., how to build a smart
city from component systems)
Systems of systems
Tap into existing infrastructure (e.g. mobile
phones, body to body networks, etc.)
Temporal and spatial uncertainty
management
The impact of ICT on the security of energy
supply

Battery storage systems and micro energy

management systems
Eciency and loss issues related to long
distance energy transmission
Impact of all energy-storage possibilities
(thermal and power) to EMS and ICT
Monitoring of energy flows and related
Energy-Management System tasks EMS / ICT
Operational optimisation of multiple factors
(e.g. processes, services, localised/distributed
global/centralised optimisation?) exploiting
predictive energy-demand models for
buildings, neighbourhoods, districts and cities
and integrating of data from other sources
such as LCA, GIS, BEMS and urban planning
tools
Ecient integration of electric vehicles in the
urban infrastructure (interaction with energy
grids, mobility providers, trac management
etc.)

E-services / other

Business models context based solutions

(no one size ts all)
Criteria for success of smart initiatives
(learning from completed projects)
Examination of skills and behavior changes
needed to facilitate change
Interdisciplinary actions linking ICT with
socio-techno-economic systems thinking
i.e., how to sell smart ideas, which ideas will
have the largest social impact, etc.
Privacy/Security/Trust
Self-sustainability (self-* features e.g. selfmanagement, etc.)

32

33

Annex 3:

Relevant initiatives
Covenant of Mayors

JPI Urban Europe

The mainstream European movement involving

local and regional authorities, voluntarily
committing to increasing energy efficiency
and use of renewable energy sources on their
territories. By their commitment, Covenant
signatories aim to meet and exceed the European
Union 20% CO2 reduction objective by 2020.
http://www.eumayors.eu

Urban Europe is a research and innovation

initiative of EU Member and Associated States
to the EU Framework Programme and aspires
to rethink and manage the increasing urban
orientation and concentration in Europe in order
to create and exploit synergy in an urbanised
Europe, from an economic, social, environmental
and transport-related perspective, leading to
a strengthened global position of Europe.
http://www.jpi-urbaneurope.eu/

Green Digital Charter

The Green Digital Charter commits cities to work
together to deliver on the EU climate objectives
using digital technologies that increase energy
eciency, facilitate emissions reductions and
forestall climate change. So far 24 cities have
signed up to the Green Digital Charter and many
others are interested committing to:
Work with Green Digital Charter signatories
on ICT & Energy Eciency;
Deploy ve large-scale ICT pilots per city
addressing the above areas within 5 years;
Decrease ICTs direct carbon footprint per city
by 30% within 10 years.
http://www.greendigitalcharter.eu/
http://ec.europa.eu/information_society/activities/
sustainable_growth/green_digital_charter/
index_en.htmEuropean Urban Knowledge Network
The European Urban Knowledge Network (EUKN)
shares knowledge and experience on tackling
urban issues. The key objective is to enhance
the exchange of knowledge and expertise on
urban development throughout Europe, bridging
urban policy, research and practice.
http://www.eukn.org/

Networking intelligent Cities for Energy

Eciency (NiCE).
In the context of the Green Digital Charter,
a relevant project dened as an accompanying
measure recently started (1/9/2011): Networking intelligent Cities for Energy Eciency (NiCE).
NiCE will be used to promote and support the
implementation of Charter commitments, developing a common implementation framework,
reporting tools and information resources for
classifying, measuring, reporting and supporting actions.
NiCE also intends to build links with the Covenant
of Mayors activities.
See Also DG Energy Smart Cities and Communities
initiative:
http://ec.europa.eu/energy/technology/initiatives/
smart_cities_en.htm

34

35

Annex 4:

Definitions
Smart City

Interoperability

1) A city can be defined as smart when

investments in human and social capital
and traditional (transport) and modern (ICT)
communication infrastructure fuel sustainable
economic development and a high quality
of life, with a wise management of natural
resources, through participatory governance.
(http://en.wikipedia.org/wiki/Smart_city)

The ability of two or more (digital) systems or

components to exchange information and to
use the information that has been exchanged
(Institute of Electrical and Electronics Engineers.
IEEE Standard Computer Dictionary: A Compilation
of IEEE Standard Computer Glossaries. New York,
NY: 1990.(iikahr). http://en.wikipedia.org/wiki/
Interoperability#cite_note-0

2) The utilisation of networked infrastructure

to improve economic and political eciency
and enable social, cultural and urban
development (Hollands, R. G (2008). Will
the real smart city please stand up? City 12
(3): 303320.) http://en.wikipedia.org/wiki/
Smart_city#cite_ref-Hollands2008_10-0

36

37

European Commission
Digitally Driven Smart Cities Moving Forward to Smarter Communities
Luxembourg: Publications Office of the European Union
2012 35 pp. 21 x 29.7 cm
ISBN ----
doi . /


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KK-31-11-383-EN-C

For further information

European Commission
Directorate-General Communications Networks, Content & Technology
Smart Cities and Sustainability
B-1049 Brussels
ec.europa.eu/ictforsg
CNECT-ICTFORSG@ec.europa.eu
ISBN 978-92-79-21796-8

doi:10.2759/78932