Comments Off on Decompression: Policy and regulatory options to manage the gas grid in a decarbonising UK
For countries with significant proportions of gas in their heating mixes that are looking to decarbonise and reduce exposure to gas imports, there is a major question around how to deal with existing gas distribution infrastructure in an equitable way which supports consumers. Yet this question has received only limited policy focus.
This briefing considers this problem for the United Kingdom, a country which has a well-developed gas distribution network with high coverage (85% of homes) which is both privatized, fully unbundled and split into regions — and which is looking to remove direct fossil fuel use in heating by 2050 at the latest.
The UK energy regulator, Ofgem, is imminently due to embark on a price control process to regulate the gas networks from 2026 onwards and the UK government is also expected to make a decision on the potential of a role for hydrogen in heating in 2026. We hope this briefing can support policy makers and regulators working on these processes.
If decarbonisation of heating by 2050 is successful, there is a high likelihood of stranded UK gas network assets. There will also be some costs associated with the physical disconnection of buildings and decommissioning of the gas grid. Ultimately, consumers bear the responsibility for and risks of these issues. The briefing proposes three options for the British government to manage better these issues on behalf of consumers:
Business-as-usual wind-down with accelerated depreciation and the potential for a decommissioning fund.
Evolutionary regulation to encourage gas networks into clean heating.
Nationalisation with planned wind-down.
In addition to the above, we would encourage greater consideration of the issues of decommissioning, continued capital investment and the role for local area energy planning in gas network decision making. While regulation, governance and ownership vary between countries, many of the technical and regulatory challenges in countries with major gas distribution infrastructure will be similar to the UK.
Comments Off on Building for the future: How can cities prepare for transportation electrification?
For cities, the fast growth of electric vehicles (EVs) is a challenge and an opportunity. In the process of becoming cleaner and smarter, cities face a two-fold challenge: First, they are promoting a shift towards more sustainable modes of transport and electrifying the vehicles that cannot be avoided or shifted. Second, they must also ensure local electricity grids can serve the needs of electrified transport. Meeting these challenges requires thorough planning to decarbonise both the energy and transport systems concurrently while minimising costs and maximising benefits for society overall. To complicate matters, high energy prices have increased the need to manage additional demand well and reduce costs by integrating EVs smartly into local power grids.
With this in mind, cities network Eurocities and energy transition experts Regulatory Assistance Project (RAP) reviewed promising practices from early movers and frontrunners in local planning for rolling out e-mobility and drew lessons that can be tailored to regional circumstances and challenges. Some examples are based on innovative initiatives from partners of the EU-funded research project USER-CHI. Building on three key lessons, we discuss policy opportunities for cities to take up a stronger role in defining the electromobility ecosystem and to receive support in urban e-mobility planning, both on the national and European levels.
Three key lessons for cities when planning for e-mobility
Lesson 1: Think big and smart!
Planning for electrified transport requires close collaboration between planners involved in the energy, power system, infrastructure and transportation sectors. Holistic planning for electrified transport requires cities to identify the charging and infrastructure types that will best serve sustainable transport goals. Dublin, Ireland, for instance, analysed the demand for charging electric cars, vans, taxis and two-wheelers, and explored use cases such as residential, en-route and destination charging. The analysis was based on an extensive geospatial mapping process, examining charging needs and use cases by area in the greater Dublin region. The needs were assessed in line with the authorities’ overall aim to reduce car use in the city centre. In addition, the city adapted its internal procedures to put plans into practice.
Holistic planning for electrified transport requires cities to identify charging and infrastructure types that best serve sustainable transport goals.
Thinking big and smart also means developing a planning approach based on quantitative and qualitative assessment of future demands. The German city of Berlin’s authorities conducted an extensive study ‘Elektromobilität Berlin 2025+’ that identified charging infrastructure needs based on projections from inbound and outbound traffic patterns and parking needs for different user groups such as inhabitants, visitors and commuters. The planners were then able to identify the projected charging point needs by 2040 for each scenario, including the different use cases. Working from the existing political and planning regulatory framework, they could also determine the most effective process for rolling out this charging infrastructure.
Findings suggest that in almost all use cases, the number of charging points required can be significantly reduced by increasing their individual use rate. Based on this finding, the planners developed a dual approach developing normal and fast charging hubs to serve all uses. Installing fast charging hubs on publicly accessible but privately owned grounds, such as petrol stations and shopping centres, helped to avoid adding more car parks and to reduce the need for infrastructure on public grounds, typically on streets.
Lesson 2: Plan for both EVs and the power grid at the same time
With the ambitious goal of fully electrifying transport by 2030, Stockholm, Sweden, has been developing and testing planning tools to optimally integrate EVs into the grid. A public dynamic map for planning public charging points, called the BABLE Platform, allows third parties such as service providers and installers to choose their locations of interest, providing planning security for investors and citizens. To help create a market for related EV charging services, the city has chosen a tender model: It awards five-year operation contracts to service providers based on pre-defined criteria. To better capture inhabitants’ charging needs and plan for them, the city also created residents’ councils. These councils, which focus on EV charging for residents of multi-family buildings, facilitated 1,000 applications for charging units. Finally, Stockholm’s planners have sought to make EV charging smart.
It’s critical that planners in all cities have access to planning tools for building EV charging infrastructure.
A modelling study of the potential local network confirmed that time-of-use tariffs with cheaper overnight rates, for example, effectively encourage users to charge at times that are cheaper for them and beneficial for the grid. It also recommends a charging station booking system to foster efficient utilisation and offers data to help avoid overinvestment in infrastructure. An ongoing pilot is exploring how the speed of public charging can be adjusted to allow users to take advantage of the savings from smart charging.
It is critical that planners in all cities have access to planning tools for building EV charging infrastructure. As part of the USER-CHI project, VMZ is developing an open access planning tool called CLICK for siting new electric vehicle supply equipment. CLICK is an easy-to-use online tool that uses a question-and-answer format to facilitate top-down location planning of charging infrastructure in cities. The tool matches users’ needs, charging preferences and habits with existing charging technologies and types. To generate these insights, the tool takes into account detailed data — including inhabitants, number of cars and existing share of electric vehicles — along with existing grid capacity and the areas and technologies to be covered. Based on these inputs, it provides planners with recommendations for the number of charging points and proposed locations, charging technologies and connectors, and indicates the required power grid capacity. This tool will soon be tested in Barcelona, Spain; Berlin, Germany; Budapest, Hungary; Rome, Italy; and Turku, Finland.
Lesson 3: Collaborate and optimise
Successful planning for e-mobility requires collaboration at all levels. In an effort to work directly with citizens and encourage them to switch to e-mobility, Italy’s capital Rome invited inhabitants to indicate their preferred location for charging points within predefined zones. To date, more than 1,150 users have already used the platform and over half are considering switching to an EV. From the municipality’s perspective, the portal is a key tool for identifying the optimal location for on-street charging points.
Successful planning for e-mobility requires collaboration at all levels.
Cooperation between the different levels of local governance also accelerates charging infrastructure deployment by allocating responsibilities to different actors. With the objective of phasing out fossil-fuelled vehicles by 2030, the Netherlands established the National Charging Infrastructure Agenda to overcome the challenge of installing a sufficient number of charging points to meet the country’s ambitions. The goal is to ensure that infrastructure is not a barrier to the electrification of transport by engaging with local and regional authorities, network operators, national ministries and independent technical experts. Public and private stakeholders collaborate to determine goals, actions and agreements for deploying infrastructure. This leads to improved coordination in building out infrastructure while ensuring broad multi-stakeholder buy-in.
Conclusions and recommendations
Visionary thinking, joint planning and broad collaboration are three key strategies for municipalities to meet the electrification challenge. As the numbers of EVs in cities increase, small and medium-sized cities in particular can learn from best practices across Europe and enhance planning for e-mobility rollout. The lessons learned by many cities confirm that the uptake of electric vehicles will require sufficient charging infrastructure and, equally important, convenient and equitable access. While successful regulatory incentives such as zero-emission zones encourage the uptake and use of electric vehicles and the phase-out of polluting diesel vehicles, stronger policy support is needed to help cities plan and manage smooth and efficient electrification of transport. On both the European and national level policy opportunities are opening:
On the European level, the new Alternative Fuels Infrastructure Regulation can ensure local authorities are able to fully participate in determining the governance, rollout strategies and specifications of charging infrastructure. Existing guidelines for local authorities, such as the ones developed by the EU Commission’s Sustainable Transport Forum, are an important source of information, but need to be made more easily accessible to local authorities.
National frameworks can be developed with the aim of encouraging cities to better integrate electrification strategies in their Sustainable Urban Mobility Plans, in harmony with other local plans, such as Sustainable Energy and Climate Action Plans. The French Mobility Orientation Law is a good example of empowerment of local authorities in this field, by allowing for the possibility that local powers set up EV charging plans.
Planning zero-emission mobility in cities is a task that many local authorities are increasingly finding part of their remit. It is therefore important to help them develop effective local strategies, new skills and expertise for their cities. The benefits offered by the transition towards more sustainable urban mobility will guarantee that both policymakers and citizens contribute to making this transition a success.
A version of this article originally appeared in Green Mobility.
Comments Off on Public Access and Participation Plans: A Starter Kit for State Agencies
State government agencies are becoming aware that there is more that they can do to reach communities that may be underserved by agency programs — communities of color, indigenous communities, and low-and moderate-income communities. This policy brief describes steps that agencies can take to engage these communities more meaningfully as partners and stakeholders in government decision-making.
This “starter kit” looks at the typical aspects of government agency contact with the public and provides suggestions for how agencies can take simple steps to improve their engagement. Specifically, it discusses ways to improve public meetings, how to make agency websites more accessible, elements of staff training, and the importance of ongoing improvement. Two appendices look at mission statements and equity statements. In each section, a summary and notes on the topic are followed by model language an agency’s public access and participation plan might include, along with useful resources.
Comments Off on Electricity market reform, beyond the gas crisis
In the past, power market reform happened to increase efficiency, to reduce greenhouse gas emissions, or to improve reliability and security of supply. Today in Europe, the desire to further change the market stems from the ongoing energy crisis. As the European Union introduces a new round of electricity market reforms, RAP explores where new market regulation would usefully tackle the root causes of the ongoing energy crisis, meet consumer needs and help Europe move away from fossil fuels.
The current energy crisis is a gas crisis. It is a nightmarish scenario stemming from the Russian invasion of Ukraine and the resulting supply disruption of cheap pipeline gas, converging with decommissioning of nuclear capacity and low hydro output. Hedging strategies by energy suppliers and consumers fell short and unprecedented wholesale market prices for fossil gas made consumer gas and electricity bills explode.
Strategies must therefore improve hedging in the market if Europe is to mitigate the energy crisis – and prepare for the next. To this end, RAP recommends replacing the role of fossil gas with renewables, demand-side flexibility and energy efficiency. More precisely, this requires:
Recognising and promoting demand-side resources as a vital system resource.
Building out more solar and wind, and doing so better and faster.
Protecting basic consumer needs better than in the past.
For policymakers weighing whether to implement these actions, the authors explain the various considerations.
Comments Off on Standards for EV smart charging: A guide for local authorities
The electrification of road transport is happening – and it is already having a profound impact on the energy system and our cities. As more and more people drive electric, smart charging can ease the integration of the newcomers into the grid.
Smart charging enables charging to automatically happen at times when electricity costs are lowest – without compromising the needs of vehicle owners. As a result, smart charging creates a powerful opportunity to use more renewable energy and better utilise existing grids, accelerating the energy transition while reducing costs for all.
Cities are essential actors in making smart charging happen at a large scale. Every time they publish a public procurement procedure and every time they issue permits for EV infrastructure, it is in their hands to make smart charging work better — now and in the years to come.
But how can local authorities deploy a future-proof, robust smart charging network, with technology rapidly evolving?
Important standards supporting smart charging – such as vehicle-to-grid (V2G) – are not yet available for charging stations built today. To avoid becoming obsolete before the end of its expected lifetime, infrastructure must be ready for future upgrades.
Authors Luka De Bruyckere of ECOS and Jaap Burger from RAP offer a guide for local authorities to help ensure that cities can take these standardisation developments into account when procuring charging infrastructure.
Comments Off on Smart cities, you’ve got a friend in electric cars: How to unleash the potential of smart charging through public procurement
The electrification of road transport is happening – and it is already having a profound impact on the energy system and our cities. As more and more people drive electric, smart charging can ease the integration of the newcomers into the grid.
Smart charging enables charging to automatically happen at times when electricity costs are lowest – without compromising the needs of vehicle owners. As a result, smart charging creates a powerful opportunity to use more renewable energy and better utilise existing grids, accelerating the energy transition while reducing costs for all.
Cities are essential actors in making smart charging happen at a large scale. Every time they publish a public procurement procedure and every time they issue permits for EV infrastructure, it is in their hands to make smart charging work better — now and in the years to come.
But how can local authorities deploy a future-proof, robust smart charging network, with technology rapidly evolving?
Important standards supporting smart charging – such as vehicle-to-grid (V2G) – are not yet available for charging stations built today. To avoid becoming obsolete before the end of its expected lifetime, infrastructure must be ready for future upgrades.
In a webinar held on 15 December 2022, Luka De Bruyckere from ECOS and Jaap Burger of RAP presented their new guide explaining how to build future-proof infrastructure, and equip cities to make the right choices when procuring new charging infrastructure.
Guest speaker Hugo Niesing from the city of Amsterdam shared his experience in advancing smart charging in a city that leads the transition to e-mobility.
Moderated by Ivo Cabral, Press & Communications Manager, Environmental Coalition on Standards at ECOS.
Comments Off on Taking the burn out of heating for low-income households
The future of heat in buildings is not fossil fuelled. The urgency of the climate crisis, Europe’s 2030 climate targets, the current war in Ukraine and the resulting skyrocketing energy prices all mean we need to massively accelerate efforts to move away from burning fossil fuels in our homes. This is no small task as fossil fuels currently account for over 75% of heat supply, and the residential sector is Europe’s single biggest fossil gas user, responsible for 40% of gas consumption.
The recent energy price volatility and the cripplingly high gas prices make the economics of switching from fossil fuel heating to heating with a heat pump better in 2022 than before the crisis. Those households that can afford it may well be considering the switch.
For lower-income households, however, the high prices make all forms of heating – and most other household expenses – less affordable. For these people, the switch to clean heating is further away than ever. But the risks of remaining locked into expensive fossil fuel use are more acute due to high and volatile prices, rising costs of redundant infrastructure and, potentially, exorbitant costs for hydrogen.
RAP analysis establishes the upfront investment and running costs to switch to heating with a heat pump, before and after the price crisis. Based on this assessment, Louise Sunderland and Duncan Gibb set out strategies to make the switch to clean heating affordable and safe for lower-income households. Targeted subsidies for upfront investment in clean heating technologies are essential, alongside reforms to electricity pricing to help ensure bills are affordable. The study also explores a range of other strategies to secure affordable clean heat such as bringing together combinations of building-level technologies, services and the benefits of cheap renewable electricity generation. We present five recommendations for:
Prioritising lower-income households in heat decarbonisation strategies.
Ensuring an ‘energy efficiency first’ approach to reduce heating needs.
Providing targeted subsidies for clean technologies.
Rebalancing burdens away from electricity bills and directing social support to electricity bills.
Focussing Europe’s innovation attention on the needs of lower-income households.
Comments Off on Modernizing Gas Utility Planning: New Approaches for New Challenges
Significant new uncertainties and options for the gas industry are creating new challenges for regulators who are responsible for ensuring that utility investments are in the public interest.
Many of the unknowns relate to the potential for customers to switch from gas to electricity for heating and other uses and the potential for utilities to replace fossil methane with alternative gases. Gas customers could face higher costs if their numbers decline in favor of electrification or if investments in alternative gases far exceed current resource costs.
Yet current typical tools and processes for regulating gas distribution utilities do not give regulators complete information on which to make decisions about long-term utility investments in this context.
Commissions across the country are recognizing the need to review and update their planning approaches. This paper surveys current efforts to modernize gas utility planning and draws lessons for those considering similar work. At the heart of the paper are five principles for redesigning planning to restore confidence that utility investments will be in the public interest:
Build equity into planning so decisions are made with equitable service and distribution of costs and benefits in mind.
Consider an expanded range of investment and resource options.
Establish integrated gas planning by combining integrated resource planning practices with gas distribution system planning.
Use combined energy planning to take the broadest possible view of emissions reduction opportunities.
Foster collaboration with state agencies that have expertise in emissions reduction.
