3FOOD
TIR-CG_Luxembourg-Final-Report_Long-Version TIR-CG_Luxembourg-Final-Report_Long-Version
Third Industrial Revolution Consulting Group Regulatory availability and uptake of full electric vehicles, supporting the creation of a two-way charging infrastructure should be characterized as a no-regret option. International developments regarding hydrogen-infrastructure should be closely monitored and facilitated, as appropriate. It is recommended to reduce further investment in fueling infrastructures for marginal fuels that are not carbon free, such as natural gas. Facilitate the development of standards with regard to network orchestrator platforms and business arrangements (eco-orchestrator). Increasing opportunities are emerging to exploit smart grid technology to optimize the energy use of consumers by automatically shifting local energy production from DER and microgrids, as well as energy consumption from intelligent energy devices like EVs, washing machines, water heating, and heat pumps. However, a broad range of standards are needed to facilitate further development of these opportunities. Luxembourg should support work to facilitate the development of these standards, as well as empower local network operators to pursue appropriate roles in moving this forward. Potential roles for the eco-orchestrator could involve tailoring electricity and gas supply, and demand services, for a customer, distributor, third-party energy provider, or grid operator. Similar network orchestrator business models can be found in other industries including Airbnb.com, WhatsApp, Uber, and Alibaba. Luxembourg-specific examples include Appartager, Carloh, BlaBlaCar, and others. To facilitate similar developments within the energy sector, Luxembourg should begin to explore the creation of a blockchain economic system for tracking energy transactions associated with transactive energy systems. This will also require coordination and integration with the systems of neighboring countries. Finally, an additional opportunity for Luxembourg is to develop advanced technologies for optimizing the water-energy nexus. A range of technologies are advancing to reduce water treatment and distribution consumption within the context of power generation, supply, and end use. These technologies range from more traditional waste heat recovery and process efficiency measures, to more advanced concepts like dry cooling and alternate fluids. In addition, cooling for thermoelectric generation continues to be an important target for water efficiency, as this process withdraws large quantities of water, resulting in wasted and untreated water, and consumes tremendous quantities of primary energy. Require all critical Luxembourg City new or retrofit buildings to meet minimum resilency standards. Luxembourg City should include in its building design and energy 60
Third Industrial Revolution Consulting Group codes, a strategy that also addresses the resiliency of specific buildings that are deemed critical for shelter and continued operations (e.g., hospitals, municipality, water/wastewater, police) during extreme weather or other related events. This can begin with the identification of critical buildings based on functionality, but also supplemented with a resiliency audit, to understand how impervious these buildings are to extreme weather events and other natural or man-made hazards (e.g., cyber attacks). This audit would also seek to identify cost-effective measures to improve resiliency of these buildings, while also reducing their energy consumption and GHG emissions. For new buildings, the TIR recommendation is that Luxembourg evaluate and establish certain design requirements to incorporate a certain level of resiliency. In addition, Luxembourg City can lead by example, by having new or renovated City buildings become more resilient and disclose the resiliency measures of the buildings. Once this program is deemed successful in the city, then consideration can be made to scale it across the country to other metropolitan regions. Public Policy Create a smart governance oversight body and develop/implement appropriate performance assessment tools. Smart governance will be critical to ensure that Luxembourg’s journey through the Third Industrial Revolution proceeds in an efficient and cost-effective manner, thus avoiding wasteful or ineffective spending. Knowing where and when to focus investments and to initiate projects will enable a smoother transition. This proposal provides a strategy for identifying and prioritizing cities and/or regions according to their readiness for TIR investments and demonstration projects. This strategy includes an assessment framework for evaluating the readiness of cities and regions. This framework uses specific sets of criteria as measures of TIR readiness, as well as Readiness Benchmarks, against which cities and regional entities would be periodically evaluated. A Smart Cities Index 61 was recently developed for U.K. cities and provides a valuable model of this type of assessment framework. Create a ‘Future Transport Fuel’ platform with partners from the European transport corridors, and begin building a detailed roadmap for decarbonizing cargo transport in Europe. As Luxembourg’s economy is intrinsically embedded in the European context, it is important that internal transport fuel and infrastructure policies are aligned with surrounding countries. Luxembourg might consider ‘transition fuels,’ such as biofuels 61 See http://www.huawei.com/en/news/2016/5/UKs-leading-smart-cities 61
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Third Industrial Revolution Consulting Group<br />
Regulatory<br />
availability and uptake of full electric vehicles, supporting the creation of a two-way<br />
charging infrastructure should be characterized as a no-regret option. International<br />
developments regarding hydrogen-infrastructure should be closely monitored and<br />
facilitated, as appropriate. It is recommended to reduce further investment in fueling<br />
infrastructures for marginal fuels that are not carbon free, such as natural gas.<br />
<br />
Facilitate the development of standards with regard to network orchestrator<br />
platforms and business arrangements (eco-orchestrator). Increasing opportunities are<br />
emerging to exploit smart grid technology to optimize the energy use of consumers by<br />
automatically shifting local energy production from DER and microgrids, as well as<br />
energy consumption from intelligent energy devices like EVs, washing machines, water<br />
heating, and heat pumps. However, a broad range of standards are needed to facilitate<br />
further development of these opportunities. Luxembourg should support work to<br />
facilitate the development of these standards, as well as empower local network<br />
operators to pursue appropriate roles in moving this forward. Potential roles for the<br />
eco-orchestrator could involve tailoring electricity and gas supply, and demand services,<br />
for a customer, distributor, third-party energy provider, or grid operator.<br />
Similar network orchestrator business models can be found in other industries including<br />
Airbnb.com, WhatsApp, Uber, and Alibaba. Luxembourg-specific examples include<br />
Appartager, Carloh, BlaBlaCar, and others. To facilitate similar developments within the<br />
energy sector, Luxembourg should begin to explore the creation of a blockchain<br />
economic system for tracking energy transactions associated with transactive energy<br />
systems. This will also require coordination and integration with the systems of<br />
neighboring countries.<br />
Finally, an additional opportunity for Luxembourg is to develop advanced technologies<br />
for optimizing the water-energy nexus. A range of technologies are advancing to reduce<br />
water treatment and distribution consumption within the context of power generation,<br />
supply, and end use. These technologies range from more traditional waste heat<br />
recovery and process efficiency measures, to more advanced concepts like dry cooling<br />
and alternate fluids. In addition, cooling for thermoelectric generation continues to be<br />
an important target for water efficiency, as this process withdraws large quantities of<br />
water, resulting in wasted and untreated water, and consumes tremendous quantities<br />
of primary energy.<br />
<br />
Require all critical Luxembourg City new or retrofit buildings to meet minimum<br />
resilency standards. Luxembourg City should include in its building design and energy<br />
60