Emerging cities get smart

With Africa the fastest urbanising continent in the world, cities are developing at a cracking pace, creating the challenge to balance infrastructure growth with sustainability goals.

According to the World Energy Council (WEC), people moving to cities will account for almost all global population growth over the next 20 years, and UN-Habitat says by 2030, half of Africa's population will be living in cities.

This brings with it significant environmental impacts; a recent study by US and Austrian researchers shows urbanisation could increase emissions by up to 25% in some developing nations. However, it also provides opportunities to implement buildings and networks that can continue delivering efficiency benefits for many years to come.

Steve Nicholls, Accenture SA's sustainability lead, says given the scale of cities, intelligent urban planning can make significant improvements in energy and transport infrastructure: “From small interventions like improving waste collection logistics - improving fuel consumptions and service delivery - to large-scale smart grid installations reducing carbon emissions.”

The World Wildlife Foundation notes that cities are the source of close to 80% of CO2 emissions, in its Reinventing the city report. Consequently, the decisions surrounding urban development and management in the next 30 years will largely determine whether cities become a force for environmental destruction or renewal.

Claas Kuehnemann, IBM managing partner for sub-Saharan Africa, notes that the growing energy demands, traffic flows, and road congestion are major sources of greenhouse gas (GHG) emissions.

“In order to build sustainable growth, governments need to move towards a lower-carbon economy through the implementation of smart solutions. Smart energy meters and grids, smart traffic management, as well as the construction of energy-efficient buildings can definitely help in realising the objective of a zero-carbon society and growing economy,” explains Kuehnemann.

Nicholls points out that a smart city is not only about ensuring low-carbon emissions, but about more efficient service delivery. “An intelligent city leverages private and public partners to improve healthcare, security, education and water infrastructure, among others. It is about applying creative solutions and technology advances from a variety of partners.

“In this regard there are therefore huge opportunities within sub-Saharan Africa - the goals of sustainable development and intelligent cities are often synonymous.”

However, these same developing cities often have fewer resources available to support such measures. At city level, says the WEC, local authorities can reduce GHG emissions in areas under their direct control, such as waste and water services, natural resources management, and energy used in public buildings and transport.

Marvin Benjamin, Siemens SA account manager for cities, says clean energy generation methods can help reduce CO2 emissions. “In buildings, efficient energy consumption, and using smart technologies can reduce electricity costs.”

The WWF report adds that major investments (in the trillions of dollars) are needed to move towards a low-carbon emission scenario, and a key part of these will be in technological advances to support urban infrastructure.

“With 45% of Africa's population already urbanised, we see that people demand safe and secure movement in, out and around cities,” says Benjamin. This is accompanied by the need for a sustainable energy supply.

“Ageing infrastructure does present a challenge to city managers and planners. By addressing such challenges, one observes opportunities emerging, especially within the areas of energy generation and distribution, transportation and water.”

Kuehnemann says opportunities in sub-Saharan countries depend on the situations and stage of development of each city and its surrounding environment. He notes that information platforms to help manage traffic flows are considered a high priority in certain African cities, as well as the improvement of overall communication infrastructure.

“Great opportunities also relate to the implementation of energy and water grids which would help in tracking the current very high levels of distribution losses as well as households' consumption.”

In September, human settlements minister Tokyo Sexwale emphasised the potential of green building innovations to help tackle the 2.2 million housing backlog in the country.

Sexwale called on the construction industry to consider using alternative building technologies to fast-track the delivery of human settlements.

"Given rapid urbanisation and the rate of population growth, with the diminishing availability of land in relation to the growing number of people, means we have to apply new technology to build better homes,” he said in a statement.

Sexwale added his department was also looking for new ideas around internal electrification, solar panels, improved sanitation and durable roofing.

With both homes and offices being major consumption areas, Frost & Sullivan reports builders are increasingly seeking to design and implement green practices in buildings.

In a study assessing the South African market for green buildings, the firm says there's a rapid increase in the awareness of more sustainable building practices, with many drivers for growth.

However, the local market still faces several teething problems," says Frost & Sullivan programme manager David Winter. "These include a common misconception of the costs involved in green design and construction, as well as an overload of green information."

But these challenges are not likely to remain for long, as consumers' environmental interest increases, the firm notes. Additionally, companies and homeowners are demanding green initiatives in the design, construction and operation of buildings.

While green urbanisation brings many opportunities, it's doesn't come free of difficulties. “Naturally, operating on a city scale is a huge challenge,” says Nicholls. “It requires careful project management, expert diplomacy and a broad knowledge of available and often constantly changing technology options.”

He notes that the primary challenge, however, is funding models. “Although most intelligent city programmes result in significant cost savings with comparably short pay-back periods, many municipalities or metros struggle to provide the up-front capital.”

Benjamin agrees that while many cities have planned their infrastructure programmes, a key constraint is financing. This includes considering the size of an investment and the expected return over a period of time.

“Smart grids, energy-efficient buildings and improving access to renewable energy are critical, especially in SA.”

Steve Nicholls, sustainability lead, Accenture SA

Fortunately, says Nicholls, there are solutions, with many technology providers and intelligent city planners moving towards cost/profit sharing models. “A specific challenge in sub-Saharan Africa is related to governance and procurement models,” he adds.

Kuehnemann agrees, noting the roll-out of smarter systems is often dependent on strong political support, to ensure continuity and enable full project realisation.

“Regarding the costs, several African countries benefit from external aid which could be effectively used in support of these actions,” notes Kuehnemann. “Moreover, for all implemented solutions, there is a major return on investment which offsets the investment made.”

Nicholls notes that environmental and population challenges will continue to increase, as more people seek urban or city accommodation, putting increasing strain on infrastructure. “It is essential that public and private partners work together to solve mutual challenges.

“A recent study by Accenture and the UN Global Compact ('A new era of sustainability') - the largest study of views by CEOs on sustainability yet conducted - confirms that technology solutions are critical and partnerships are fundamental in ensuring sustainability and growth.”

The WWF notes that ICT can play an important enabling role in avoiding high-emission infrastructure. “There is a unique historic opportunity to utilise the ICT developments of the past 15 years to reduce energy use and emissions,” it says.

“Some technologies are fundamental to our future,” notes Nicholls. “Smart grids, energy-efficient buildings and improving access to renewable energy are critical, especially in SA.”

As an example, Nicholls points to a recent Accenture and Vodafone report which estimates 13 wireless technologies, in applications across smart grid, smart logistics, smart cities and smart manufacturing, could reduce Europe's energy costs by EUR43 million and carbon emissions by 113 Mt CO2e (metric ton CO2 equivalent) in 2020.

“In SA, many of these intelligent solutions are fundamental to integrating renewable energies into the distribution grid,” he adds.

Nicholls believes the outlook is positive, as both public and private sectors acknowledge the need to work together, with partnerships on the rise. “South African cities are communicating and organising themselves through groups like the South African Cities Network and Accelerate Cape Town.”

Kuehnemann notes that to cope with the continuing challenges of rising populations and emissions, a dual approach is needed in future.

“By 2050, city dwellers are expected to make up 70% of earth's total population - or 6.4 billion people. As a consequence of this urbanisation trend and its impact on the environment, cities are facing major challenges.

“A long-term vision, accompanied by short-term actions, is necessary to successfully turn those challenges into opportunities, build growth, and thus become globally attractive places.”