A pilot program from IT giants IBM and Cisco will soon be introduced in Amsterdam that will utilise smart grid technology to conserve energy.  It is part of a transformation process aimed at making the whole city eco-friendly from the way trash is collected to giving residents access to financing that will allow them to invest in energy-saving equipment.

The various projects, all begun or set to begin within a few months, demonstrate how cities can get on the fast track for smart grid development.  Amsterdam’s projects come during a time when governments and large businesses around the world have put aside billions of dollars in order to make their society more environmentally friendly.

Elsewhere, decades may pass by before benefits are realized but Amsterdam has set 2012 as the date when this first round of projects will be completed.  The city is attracting attention from lawmakers and decision-makers worldwide for its ambitious plans to reduce the size of its carbon footprint.

The investments are expected to top $1 billion within the three year period.  The money will come from the city, utility companies, and other private firms. Local power grid operator Alliander alone is making an investment worth $383 million in smart grid technologies that will utilise sensors and improved monitoring capabilities to conserve energy.  Also included is $255 million to be provided by housing cooperatives for home energy efficiency programs and another $383 million that will go towards other technologies that enhance energy efficiency.

“In the next year and a half we expect to be the leading smart city in Europe,” said Ger Baron of Amsterdam Innovation Motor, the public-private collaboration charged with overseeing the project.  “We’re in the right place at the right time.”

Reducing carbon emissions in cities could have a major impact on global warming worldwide.  For three years now more people live in urban centres than in rural areas.  Cities are responsible for producing nearly two-thirds of the world’s carbon emissions when energy usage along with car exhaust is figured in, according to consulting firm Accenture.

“Until now, there’s been an under-emphasis on what cities can do to cut emissions,” said Mark Spelman, head of strategy at Accenture.  Accenture has teamed up with utility companies on four continents to determine the best way to reduce the carbon footprint of cities.  

Accenture’s first project, in partnership with Xcel Energy, was launched in Boulder, Colorado.  By the summer 60,000 homes will be connected to a smart grid.  Results have already shown that some residents of the city have reduced their energy usage by up to 50 percent because of smart meters installed in their homes that let them monitor and manage their energy consumption.

Plans have already been made to take the smart city concept further in Amsterdam.  Alliander will spend €100 million every year through 2016 so the entire Dutch province, including Amsterdam, can be upgraded.  Smart meters will be installed in homes that share energy usage information with consumers and utilities.  According to Paulus Agterberg, director of strategy and innovation at Alliander, nearly all of Amsterdam should be on the smart grid by 2011.

Dutch policymakers are coming up with new legislation that will maximise the benefits of smart grid technology.  A dozen projects have been slated involving consumers and commercial customers.  Depending upon the success of each pilot they could be ramped up within the next three years.

The smart meter pilot program from IBM and Cisco will involve 500 homes.  Display panels will be installed in homes that allow homeowners to readily monitor their energy consumption.  Third parties will be allowed to develop enhanced services that could allow for appliances to be controlled from the display unit or installation of plug-in electric vehicles.  According to Amsterdam Innovation Motor, about a third of the city, or 200,000 homes, will be using the system within two years.

IBM
One New Orchard Road
Armonk, NY 10504
http://www.ibm.com

Cisco Systems, Inc.
170 West Tasman Dr.
San Jose, CA 95134
http://www.cisco.com

Alliander NV
Utrechtseweg 68
6812 AH Arnhem
http://www.alliander.com

Accenture
Canon's Court 22 Victoria Street
Hamilton, HM 12
Bermuda
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