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CELSIUS (smart district heating and cooling solutions)

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Groups audience: 
Solution Proposal Title: 
CELSIUS – Combined Efficient Large Scale Integrated Urban Systems
Kind of Innovation: 
Integration of technologies
Do you own the IP rights?: 
No
Field of application: 
Energy supply and smart grids
Innovation maturity: 
Pilot project
In which cities has this project already been tested or piloted?: 
Basic description: 
CELSIUS is the largest winning projects in the Smart Cities & Communities 2011 call. The four-year project is coordinated by the City of Gothenburg and presents best practice solutions in the area of smart district heating and cooling by taking a holistic approach to overcome technical, social, political, administrative, legal and economic barriers. The project brings together excellence and expertise from five European cities with complementary energy baseline positions: Cologne, Genoa, London, Gothenburg and Rotterdam. The consortium includes technical expertise form leading energy utilities organization as well as international renowned research and innovation organisations. Through the delivery of 12 new ambitious and innovative demonstration projects in and the additional more than 20 already in operation, the CELSIUS project covers all aspects of urban heating and cooling systems, including technical and deployment innovation and approaches to financing and stakeholder engagement. The current trend of decreasing greenhouse gas emissions and increasing use of renewables is a positive trend but only the beginning if the EU and its member states aim to lead the battle against climate change. The trend for increasing energy efficiency in order to meet the 2020 target is less encouraging and not on the same positive trajectory as the ones pursuing the other two climate change targets. 50% of EU citizens live in cities and over 75% of the energy is consumed within cities. One of the key ways to maximize carbon savings in cities is to maximize the unused energy saving potential by tackling ways to effectively and efficiently recover energy losses. This can be done by identifying primary and secondary energy flows within the city and then boosting energy efficiency through the smart integration of competitive highly efficient heating and cooling systems that not only maximize efficient use of primary energy, initially targeting low carbon and then moving to zero carbon systems, but also enable the utilization of the secondary, or waste, energy that is generated within the city. Already today, smart district heating and cooling systems can be realized supplying nearly 85 % of the heat demand in a city from secondary energy sources. Not using it would mean that energy would simply be lost to the atmosphere. CELSIUS has a clear strategy and a pro-active approach to deployment, which will result in 50 new cities committing to the CELSIUS roadmap by the end of 2016. When fully implemented in these cities, this will lead to at least a 100TWh reduction in the use of primary energy annually. This will reduce the CO2 emissions by approximately 20 m tonnes p.a. CELSIUS aims to be a corner stone in the large scale deployment of smart energy cities that will support the EU’s ambitious 20-20-20 goals and beyond! Please note that CELSIUS is still under negotiation with the Commission and is estimated to start during April, 2013
Technical: 
Several key challenges stand in the way of being able to transform Europe’s cities into the low carbon and resource efficient cities they need to be to prosper in the global economy of the 21st Century. Firstly, there is a lack of thermal grid coverage in many European cities. To reverse this there is a need to develop new innovative and financially competitive thermal grid concepts; state-of- the-art solutions have already been developed in some cities, e.g. in Gothenburg, Sweden, and the learning and experiences of these needs to be shared more widely. Currently new energy efficient thermal grids tend to be limited to small districts since this is the natural way to start the development of district heating in a city. Another challenge is the huge amount of waste or secondary energy produced but not captured and utilized for heating purposes in the EU today. There is actually enough waste heat produced in the EU to heat EU’s entire building stock ("Euroheatcool", Euro Heat & Power) there is just not the heating distribution network available to transport it to where it is needed and can be used. There is a need to demonstrate and develop innovative new technologies capable of increasing the use of waste energy. In addition to this there is also the need to define, develop and test business models that allow a fair price to be agreed, for example with industrial waste heat suppliers, for supplying waste heat to a network. CELSIUS will demonstrate innovation in a range of areas, including new technologies and deployment of existing technologies. The demonstrators cover the following: • Energy efficient and intelligent end-use of energy in buildings and industry • Intelligent planning and system integration using ICT • Intelligent thermal grids to increase the use of waste energy and renewables • Recovery of waste energy and utilization of various temperature ranges in the district heating system • Innovative storage solutions and load control • Energy efficient and sustainable energy supply • Innovative approaches for integrating energy centres to the electricity grid
Financial: 
The total cost for the demonstrators are 69m EUR, of which the cities themselves will provide 55m EUR. The requested EU funding enables these activities laying the foundation for the successful large scale deployment of the CELSIUS City Concept across Europe and beyond 2020. District heating and cooling solutions are generally more capital intensive than conventional energy sources. The main driver of the high cost is the initial investment of network of hot water pipes. The operating expenses are, however, less and there are also, from a perspective of security of supplies, huge gains to be made in utilization the secondary, or waste, energy that already is generated within a city. The CELSIUS project will through a series of related and complementary demonstration projects illustrate the range of opportunities that exist for using district heating and cooling networks to maximize the efficient use of primary and secondary energy sources within a city. It will play a leading role in enabling cities to make a cost effective transition to a low carbon and resource efficient economically competitive city. The European Investment bank (EIB) will be supporting the CELSIUS project in developing the strategy for large scale roll out. It will look at how European Structural Funds and financial instruments, such as JESSICA, could play an important role in enabling deployment at the scale and speed that the CELSIUS project is aiming for. The market rollout strategies will identify what needs to be done to address the barriers and so create a fully functioning market with considerable city demand for its products and services
Suitable city context (including governance, spatial layout, climate, end-user involvement) : 
The real strength of the CELSIUS project is the diverse combination of cities of differing sizes and very different starting positions but all sharing a common goal and passion for mitigating climate and to do this partly through investing in intelligent district heating and cooling networks. The variety of CELSIUS cities shows that a range of different cities can deploy a district heating system. London, for instance, has a particularly service based economy, with very little large-scale industrial activity and therefore very few sources of concentrated large-scale high grade industrial waste heat that can be used to build a large-scale heating system around, as has been done in many European cities. The sources of waste heat in London, and similar cities with service led economies, are consequently more medium to small scale, lower grade waste heat sources, such as electricity sub-stations, underground transit systems or data centres, that are more dispersed across the city.
Energy supplied or savings expected: 
One of the main objectives of CELSIUS is to demonstrate a cost-effective and very energy efficient heating and cooling system for replication and massive role out, while ensuring a healthy urban environment recovering waste energy in energy efficient and smart way and favouring the integration of renewable energy. Potential is a total primary energy reduction of 4.500 TWh/year, and 900 m tCO2 reduction p.a. CELSIUS has a clear strategy and a pro-active approach to deployment, which will result in 50 new cities committing to the CELSIUS roadmap by the end of 2016. When fully implemented in these cities, this will lead to at least a 100TWh reduction in the use of primary energy annually. This will reduce the CO2 emissions by approximately 20 m tonnes p.a. The CELSIUS initiative launched in this project is designed to be institutionally sustainable in the longer term and thus to continue to play a major role European energy policy in the future. The goal of CELSIUS is to commit another 100 cities at the end of 2026, decreasing primary energy use by at least 600TWh annually. This will make a significant impact, by decreasing the use of primary use throughout Europe by 5%.
Financial cost/benefit analysis and return on investment (period): 
The objectives the CELSIUS concept and demonstrators is a return of investment of 10-15 years (except for the large demonstrators). A task within the projects is to develop a strategy for large scale market rollout of the developed and tested CELSIUS offer, including an investment strategy for the large scale roll out of the CELSIUS vision across Europe. The financial information collected on the demonstrators will be essential to developing this investment strategy. The European Investment bank (EIB) will be supporting the CELSIUS project in developing this strategy. It will look at how European Structural Funds and financial instruments, such as JESSICA, could play an important role in enabling deployment at the scale and speed that the CELSIUS project is aiming for. The market rollout strategies will identify what needs to be done to address the barriers and so create a fully functioning market with considerable city demand for its products and services.
Expected impact on GHG emissions : 
CELSIUS supports five ambitious and pioneer cities such as the cities of Goteborg, Cologne, Genoa, London and Rotterdam in achieving their CO2 reduction targets declared within their Action Plans. Accordingly, through their 12 demonstrators and the ones used by CELSIUS already in operation and serving as models for replication by other EU cities, others being deployed within the CELSIUS project, those cities will be able to step forward towards achieving their CO2 emission reduction targets. Each individual demonstrator will hence be a building block in achieving such targets. The overall impact of each city’s demonstrators with respect to reaching each city’s targets as regards overall CO2 emission reduction is provided in the following table. Gothenburg: Baseline overall CO2 emission (Base Year): 0.5 MtCO2 (1973)* Overall CO2 emission reduction target according to cities Action Plans: -80% Overall contribution of city demonstrators to CO2 emission reduction: -1,045 tCO2/year * Please note: This figure illustrates GOT’s fossil CO2 emissions from District Heating Cologne Baseline overall CO2 emission (Base Year): 10 MtCO2 (1990) Overall CO2 emission reduction target according to cities Action Plans:-20% Overall contribution of city demonstrators to CO2 emission reduction: -1,045 tCO2/year London Baseline overall CO2 emission (Base Year):45.1 MtCO2 (1990) Overall CO2 emission reduction target according to cities Action Plans: -38% Overall contribution of city demonstrators to CO2 emission reduction: -4,018 tCO2/year Rotterdam Baseline overall CO2 emission (Base Year): 24 MtCO2 (1990) Overall CO2 emission reduction target according to cities Action Plans: -50% Overall contribution of city demonstrators to CO2 emission reduction: -80,000 tCO2/year Genoa Baseline overall CO2 emission (Base Year): 2.3 MtCO2 (2005) Overall CO2 emission reduction target according to cities Action Plans: -23.7% Overall contribution of city demonstrators to CO2 emission reduction: -810 tCO2/year
Wider potential expected benefits for cities: 
The new CELSIUS solutions will help to stimulate demand in the energy market helping ensure that the EU’s energy industry continues to be at the forefront of the rapidly growing low-carbon sector. The large scale deployment of novel solutions for district heating and cooling supply will stimulate several technologies markets such as those providing the enabling technologies for each individual demonstrator (heat pumps, turbo-expanders, heat exchangers, etc.), which will have positive economic impacts, including on employment and wage income. An environmentally successful and energy efficient – or sustainable – city should ideally combine economic growth with welfare. As regards welfare, the opportunity to introduce novel concepts of district energy networks (heating and cooling, electricity), profiting from the integration with industrial parks aimed at an effective recovery of energy losses, will not only benefit energy providers and utility companies engaged with the sale of energy, but also energy end users such as commercial, industrial, service as well as private energy end users thanks to the reduced energy bills that would positively impact on social welfare. As greener energy efficiency concepts will be introduced within cities, overall energy consumption (including fossil fuel use) and hence CO2 emissions, but also levels of other air pollution contaminants such as nitrogen oxides (NOx), sulphur oxides (SOx), carbon monoxide(CO) and suspended particulate matters will be reduced with positive impacts on the air quality within urban settlements and hence on the quality of life and health of citizens.
Additional requirements on deployment: 
One of the most important challenges that need to be addressed if the EU is to deliver rapid deployment of large-scale district heating systems is the political one. It is fundamental to the agenda that there is strong political commitment and support for the role that these systems have in enabling cities to become more energy and carbon efficient.
If not, please specify: 
IP rights jointly owned by the consortium implementing the project