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You are here: Home / Archives for Ethical Cities

April 3, 2015

Energy Dilemma of Ethical Cities and the Solar City’s Promise

By Job Taminiau, Jeongseok Seo and Joohee Lee

solarcityNo one in large cities would want to have a nuclear or a coal-fired power plant in their residential boundaries. Recognizing environmental and health risks of conventional power plants, it becomes increasingly unthinkable to propose the construction of such power plants near populous areas. Instead, remote locations are sought, often at the expense of local populations, and the produced electricity is then transferred to the areas of demand.

Here ‘ethical’ cities, who are concerned about detrimental impacts of their electricity consumption on supplier communities, are faced with a dilemma: either they have to build some fossil-fueled or nuclear power plants in their cities to supply electricity they need; or they have to live with shifting health or environmental consequences of such power plants to others. Besides, building large power plants in urban centers can be uneconomical as the capital cost will likely be more expensive than remote rural areas largely due to higher property prices and O&M costs will also be greater due to higher transportation costs for fuel sources, such as coal, natural gas or uranium.

Researchers at CEEP have investigated this dilemma and proposed a reorientation of the energy supply focus to include the possibilities and opportunities that are available within city boundaries. This idea has taken shape in the form of the ‘solar city’, putting forth the notion that cities can capitalize on the incoming solar energy that is collected daily but remains unused unless it is ethically and economically captured. While solar electricity is ready-made for this purpose, other energy technology options or energy saving measures can also be considered. In effect, rather than relying on the construction of additional capacity outside the municipal boundaries, the urban fabric is transformed to become a power plant itself, empowering citizens as ‘prosumers’ through a strategic and collective application of the solar city concept. Calculations performed by CEEP researchers have shown that megacities have great potential to address the economic and inequity problems of energy supply through this strategy: for example, a carefully implemented solar city strategy can account for 66% of Seoul’s energy need during daylight hours [1]. And its supply can be affordably provided to all [2].

Now, a recent study investigating the application of the solar city model has identified a viable financing strategy that allows for the gigawatt scale deployment of solar capacity [3]. Using Amsterdam, London, Munich, New York, Seoul, and Tokyo as case studies, the results show that over 300 million square meters of rooftop area could be available for PV installation and that the city-wide deployment of PV on this rooftop real estate would yield substantial energy, economic, and system benefits. The US$ 10 billion financing cost to install PV on approximately 30% of the commercial and public buildings in these cities—the building types primarily studied in the investigation—could, meanwhile, be addressed by approaching the capital markets through bond offerings.

The investigation does show, however, that city-specific policy, market, and finance conditions influence the viability of the strategy. For instance, Seoul’s low commercial retail electricity price set by the national regulator complicates the business case for a solar city strategy and can only be bridged by a more supportive policy framework, continued falling PV system prices, and/or by increasing electricity retail prices. Similarly, the investigation shows how London would need to rely on some level of policy support to allow for a cash flow capable of providing the foundation for the investment. Importantly, however, the study finds that New York City, Tokyo, Amsterdam, and Munich are all able to already implement a solar city strategy without additional policy support which returns its debt in 10 years or less.

These results are promising and can provide an alternative path that cities can take to solve their energy dilemma. Moreover, these six cities have options available to them to further improve the business case for a PV solar city application by modifying policy frameworks or, perhaps, through collaborative bond structuring. In any case, if the PV system price patterns of the past few years continue into the future, payback periods could be under ten years for most cities without any policy support.

Now, ethical cities have an option. One is to stick to the current path, that is, they consume electricity generated from fossil-fueled or nuclear power plants at the expense of supplier communities who must shoulder the risks. Or they can choose a strategy of leadership and start construction of a distributed solar power infrastructure within their own boundaries and contribute to the sustainable energy transition. The Mayor of Seoul, Mr. Park Won-Soon, has offered an interesting name for his city – “One Less Nuclear Power Plant” [4].

Notes
[1] Byrne, J., Taminiau, J., Kurdgelashvili, L., & Kim, K. (2015). A review of the solar city concept and methods to assess rooftop solar electric potential, with an illustrative application to the city of Seoul. Renewable and Sustainable Energy Reviews, 830-844. https://dx.doi.org/10.1016/j.rser.2014.08.023
[2] Byrne, J. and Yoon S-J. 2014. Sustainable Energy for All Citizens of Seoul. Presentation at the Seoul International Energy Conference 2014. https://www.youtube.com/watch?v=HkTUrLbUt7Y
[3] Byrne, J., Taminiau, J., Kim, K., Seo, J., Lee, J. (forthcoming). A solar city strategy applied to six municipalities: integrating market, finance, and policy factors for infrastructure-scale PV development in Amsterdam, London, Munich, New York, Seoul, and Tokyo.
[4] Seoul Metropolitan Government. (2014). One Less Nuclear Power Plant, Phase 2: Seoul Sustainable Energy Action Plan

Photo credit: Forbes

Filed Under: Energy Economics, Renewable Energy Tagged With: Abundant Energy, Ethical Cities, NIMBY, Solar City

February 3, 2015

“One Less Nuclear Power Plant”: Seoul’s Commitment to a Low-carbon and Non-nuclear City

By Joohee Lee

olnnp
OLNPP Initiative is designed to reduce the current level of energy consumption in Seoul by as much as a typical nuclear unit can produce annually.

The recent nuclear accident in Fukushima alarmed many throughout the world. South Korea as one of Japan’s neighbors was immediately shaken by this historical nuclear disaster. However, Korea’s national energy plan to maintain and possibly increase dependence on nuclear energy has not changed much despite worrisome voices from civil society and local communities located near nuclear power plants.

Against this background, Mayor Won-Soon Park of the Seoul Metropolitan Government (SMG) announced in 2012 an innovative and experimental initiative on energy sustainability for the City, titled “One Less Nuclear Power Plant (OLNPP).” Although there are no nuclear power plants in Seoul, the name of the Initiative implies the City’s responsibility to understand and reduce the risks of overreliance on nuclear power disproportionately placed on local residents living near power plants. In this regard, the OLNPP Initiative is designed to reduce the current level of energy consumption in Seoul by as much as a typical nuclear unit can produce annually (approximately 2 million TOE) by 2014. To achieve this goal, the SMG provided a variety of policy measures and channels to enable a broad participation from the citizens. Before the end of the target year, the SMG already surpassed its reduction goal through energy saving (0.91 million TOE), efficiency improvement (0.87 million TOE), and the diversification of energy sources including renewables, fuel cell, and waste heat (0.26 million TOE) [1].

In June 2014, the SMG announced the beginning of the second phase of the OLNPP after its early achievements in the Phase 1 target. In Phase 2, the SMG sets up a more ambitious goal to reach 20% of self-sufficiency in electricity by 2020 (4.2% as of 2013). At the same time, the SMG aims to reduce 4 million TOE of energy consumption and 10 million tons of GHG through additional renewable generation and energy efficiency improvement.

In a paper published in Energy Policy in November 2014, Dr. Taehwa Lee, a CEEP alumni, evaluated the OLNPP policy as a meaningful experiment and effort for energy autonomy and sustainability at a local level. The study analyzed the OLNPP from an analytic framework for urban energy experiments consisting of three dimensions – policy background, governance, and policy content [2]. Among the three dimensions of the proposed framework, the paper highlights the leadership and governance behind the OLNPP able to recognize “burden-shifting” issues existing in the present energy system in Korea as well as incorporate social and moral dimensions into urban energy policies.

Dr. John Byrne, Chairman of the Foundation for Renewable Energy and Environment (FREE), Director of CEEP, and Distinguished Professor of Energy and Climate Policy, serves on the Seoul International Energy Advisory Council which advises the SMG on energy policies and plans including the ONLPP Initiative. Dr. Byrne points out that SMG’s rapid reduction in energy use is a remarkable outcome and that OLNPP Phase 2’s value-centered approach could be an important policy driver for enhancing sustainability and equity in Seoul’s energy system. Recent findings by the FREE Research Group include an estimate of Seoul’s “solar city” potential, noting that about 65.7% of the annual daylight-hours electricity needs of the city can be served by distributed solar power systems on a typical day [3]. Two Korean CEEP alumni, Dr. Sun-Jin Yun and Dr. Jungmin Yu, are also serving on the Policy Implementation Committee of the OLNPP.

Notes:

[1] One Less Nuclear Power Plant, Seoul Metropolitan Government, https://archive.ph/20130627005127/http://energy.seoul.go.kr/
[2] Lee, T., Lee, T., & Lee, Y. (2014). An Experiment for Urban Energy Autonomy in Seoul: The One ‘Less’ Nuclear Power Plant Policy. Energy Policy, 74, 311-318. https://dx.doi.org/10.1016/j.enpol.2014.08.023
[3] Byrne, J., Taminiau, J., Kurdgelashvili, L., & Kim, K. N. (2015). A Review of the Solar City Concept and Methods to Assess Rooftop Solar Electric Potential, with an Illustrative Application to the City of Seoul. Renewable and Sustainable Energy Reviews, 41, 830-844. https://dx.doi.org/10.1016/j.rser.2014.08.023

Photo credit: Seoul Metropolitan Government

Filed Under: Energy Economics, Energy Markets Tagged With: Environmental Justice, Ethical Cities, NIMBY, Nuclear Energy

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