d.3.5 report on best practice implementation of bankable ... 3.5 esea... · iee project contract...

IEE project Contract N°: IEE/12/856/SI2.644759

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D.3.5 – Report on best practice implementation of bankable energy actions

Best practice title 1 Promotion of EVs and charging infrastructure in the

Region of East Sweden 2 Waste heat utilization in Boxholm 3 Coordination of goods in Norrköping

Submission date: 28/02/2017


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D3.5 Report on best practice implementation of bankable energy actions.

CONTENTS

1 Best practice 1 Promotion of EVs and charging infrastructure in the Region of East Sweden ....... 3

1.1 General ................................................................................................................................... 3

1.2 Context for the action ............................................................................................................ 3

1.3 Project description ................................................................................................................. 3

1.4 Results and outputs ............................................................................................................... 4

1.5 Funding plan ........................................................................................................................... 5

1.6 Project implementation indicators ........................................................................................ 5

1.7 Photos .................................................................................................................................... 5

2 Best practice 2 Waste heat utilization in Boxholm ......................................................................... 7

2.1 General ................................................................................................................................... 7

2.2 Context for the action ............................................................................................................ 7

2.3 Project description ................................................................................................................. 7

2.4 Results and outputs ............................................................................................................... 8

2.5 Funding plan ........................................................................................................................... 8

2.6 Project implementation indicators ........................................................................................ 8

2.7 Photos .................................................................................................................................... 9

3 Best practice 3 Coordination of goods in Norrköping ................................................................... 10

3.1 General ................................................................................................................................. 10

3.2 Context for the action .......................................................................................................... 10

3.3 Project description ............................................................................................................... 10

3.4 Results and outputs ............................................................................................................. 11

3.5 Funding plan ......................................................................................................................... 12

3.6 Project implementation indicators ...................................................................................... 12

3.7 Photos .................................................................................................................................. 12


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1 Best practice 1 Promotion of EVs and charging infrastructure in the

Region of East Sweden

1.1 General The objective of the project is to increase the number of electric cars in the municipalities of the

region of East Sweden and to improve the infrastructure for charging stations

To achieve greater knowledge and more positive attitudes to EVs and their charging has been

essential for reaching the objective. Municipalities intentions to buy or lease electric cars and to

establishment charging stations has been raised by organizing roadshows, test periods, seminars and

events and also by encouraging applications for financing from national funding’s. The involvement

of a large number of actors, including the energy sector, charging and electric vehicle technology has

also been crucial.

1.2 Context for the action Electric vehicles contribute to a large extent to reduction of CO2 emissions in the transport sector and

elimination of climate change. The current low price of oil and the current policy of not allowing

economic promotion of renewable fuels in relation to the oil, lock the market to remain in the fossil

track because it is the least complicated and most profitable way. Although, based on the current low

electricity prices in Sweden and lower service- and repair costs on electric vehicles than for fossil

cars, an electric car can over time be more cost effective to own than a fossil car but there has to be

more incitement to jumpstart the electric car market. Customers choose petrol and diesel cars as

long as they are a cheaper alternative. Higher CO2 tax on fossil fuels and subsidies for electric cars is a

must as well as long-term policy framework so that the market knows what it should relate to.

The municipality's role as a pioneer in the development is important. Most municipalities want

to act as good examples and promote themselves by choosing environmentally friendly cars.

EVs and their charging infrastructure is therefor an important area where municipalities can be a

good example, and thus also contributing to clean air, quiet traffic, lowering of CO2 emissions and

also by creating a secondary market for e-vehicles.

1.3 Project description Since autumn 2014 a local EV-group has had monthly half day meetings with different themes for

raising the knowledge, to raise awareness, remove prejudices and to create networking and business

opportunities for local companies. The initial goal was to involve 6 municipalities and that each

municipality should install two charging stations and change two fossil cars to EVs. The goal has been

reached and far exceeded and the way to achieve this has to a large extent been able by creating

conditions for achieving greater knowledge and more positive attitude towards EVs and their

charging. In the time of writing 10 (out of 13) municipalities has been involved in the project along

with the Region of East Sweden, residential property owners, the church diocese in the region and

local stakeholders for charging equipment and electrical cars.


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A big event “E Road East1” was arranged in June 2015 and during 2015 and 2016 a road show and

test periods for EVs was arranged in municipalities. The idea of giving many people the opportunity

to test EVs in their daily activities has been a very successful tool to influence more people to be

positive and to be willing to switch from fossil cars to EVs.

BEAST has also participated in a collaboration with the entire East Central Sweden for developing a

strategy for charging infrastructure. Strategic positions and potential stakeholders for establishing

charging spots have been identified. In East Sweden, the focus has been on involving apartment

building owners and large employers to improve commuting possibilities with EVs. It is important

that the large target group who live in apartments in urban areas can have the possibility to own or

lease and charge an EV. Several workshops have been held by BEAST for this purpose and most of the

apartment building owners who participated have established or are planning to establish charging

stations for residents.

1.4 Results and outputs

An interest in electric cars and their charging has awakened strongly thanks to BEAST activities and an

accelerated development for the construction of charging stations and replacement of fossil cars to

electric vehicles in municipal car fleets can be seen. There is a desire and willingness to increase the

number of electric cars in most of the region's municipalities. Several municipalities have built and plans

to build charging stations.

Of the total of 13 municipalities in East Sweden 6 municipalities now have 22 electric cars in use and 3

municipalities are planning to buy their first or more electric cars for use within the municipal businesses

in the nearby future. 21 charging stations have been established by five municipalities and the Region and

approximately 140 more are planned to be established for internal and public use within 2017-2018

It is clear that without the efforts made by BEAST, the development of electric vehicles and charging

infrastructure would not have come as far as it has now within the region. Based on a positive

response from the relatively large group who tested EV´s in municipal business (about 150 persons)

and the extent of various businesses they where tested in there is a good potential that there will be

more electric cars in municipal use in a nearby future.

The expansion of the charging infrastructure is likely to go very quickly thanks to that the level of

knowledge and awareness of charging technology and available business solutions has been

significantly enhanced. The successful timing with the opportunity to apply for support through

national funding has also strongly contributed to the development.

The cooperation with the surrounding regions for the development of a charging infrastructure for

the whole region of East Central Sweden is also of great importance since a functioning infrastructure

for EVs of course have to extend beyond the region's borders.

The methods used in BEAST that are based on identifying barriers and find ways to overcome them

have had great impact and yielded results in this project. Success factors for the results obtained can

be summarized as follows:

• Long term continuity in the work

1 http:// http://eroadeast.se/index.html


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• A stable working group with clear roles and responsibilities

• Creating of platforms for knowledge sharing and for stakeholders to make contact

• Activities which reaches all layers of a municipality enables faster and more unanimous decision making.

1.5 Funding plan The project goal was that 6 municipalities and the Region makes investments for changing 2 of their

fossil cars to EVs and that they all install 2 charging stations each. Funding for the installation of

charging stations is available since autumn 2015 through a national program.

Investment cost for charging stations is estimated to 14 stations x 5000€ (50.000kr per charging spot) = 70.000€. Cost for EVs are estimated to (Nissan Leaf, NV200 and Renault Zoe and Kango ~25 000€/car) -> 25000x14= 350 000€

1.6 Project implementation indicators Expected energy savings (kWh):

Expected RES energy produced (kWh):

Expected CO2 reduction (tons CO2):

22 EVs have replaced fossil cars and are in municipal use Each car drives approximately 25000km/year -> 25000x22 cars = 550 000 km

Emission E-vehicles calculated on Swedish electricity mix (=4g CO2ekv/km)-> 550 000km x4g CO2ekv/km = 2 200 000 g CO2ekv =2200kg CO2ekv Emission bensin cars (=170g CO2ekv/km) -> 550 000x170 = 93 500kg CO2 ekv

Saving: 93500-2200= 91,3tCO2ekv per year

New jobs created:

1.7 Photos


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Photo 1 The Governors opening of E-Road-East Photo 2 Test driving of EVs on E-Road-East

Photo 3 The event E-Road-East attracted about 110 visitors and exhibitors

Photo 4 Opening of charging station during road show in Ödeshög municipality

Photo 5 Test driving of EVs in Norrköping municipality Photo 6 Road show in Söderköping municipality

Photo 7 Workshop in Best practice on implementation

of charging stations for EVs Picture 8 Group work to identify the best business

solutions for apartment building owners to establish charging stations

Picture 9 Two new EVs in municipal service in Ödeshög municipality.

Picture 10 Charging station in Åtvidaberg municipality


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2 Best practice 2 Waste heat utilization in Boxholm

2.1 General

Boxholm Municipality has about 5 000 inhabitants and is located in the south of the region of East

Sweden. Boxholm municipality have for a long time wanted to utilize the waste heat from the steel mill

Ovako, who is located in the center of the municipality. The question has periodically been forgotten in

the municipal politicians' agenda and has not been prioritized for real discussions or action.

Since the start of BEAST the municipality has decided that they want to be part in establishing an

energy storage system which will supply heat and hot water in a residential area and thus be able to

supply these municipal buildings with cheaper energy. The have suggested to start up with a pilot

project where low temperature waste heat is used in a storage system with the size of about 4.5

GWh.

2.2 Context for the action Ovako has both high-grade and low-grade waste heat and need to be disposed of both. The long-

term requirements and terms of condition from Ovako´s part is that there must be a plan in the

municipality for both high and low grade waste heat.

Boxholm Municipality is too small for using all the energy. The low-grade energy of Ovako´s waste

heat is estimated to 20GWh and the total energy need of Boxholm is 11GWh.

The energy company EON owns the district-heating system in Boxholm which covers about 80

percent of the community. EON is currently purchasing energy from the sawmill, Rörvik timber who

supplies the district heating from a biomass plant situated in its premises. EON has stated that they

are not interested in participating in the project with an energy storage, but they are however

interested in the high-grade waste heat from Ovako.

The proposed project for a storage system i Boxholm could serve as a reference plant to influence

other regions to follow as a good example. Boxholm municipality are also interested in further

development in making use of high temperature waste energy, which might be for generating

electricity.

2.3 Project description The municipality wants to establish an energy storage system which will supply heat and hot water in

a residential area and they have suggested to start up with a pilot project for a heat storage where

low temperature waste heat is used. The size of the storage is about 4.5GWh.

The project is expected to provide reduced energy costs by utilizing a resource that would otherwise

just go to waste. At present, the project is only calculated on the utilization of low-temperature

water but plans are to ultimately also utilize high-temperature water from Ovako. The energy cost is

estimated to be halved compared with the current cost of district heating from biomass.


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The Boxholm Project is unique in the way that the energy is planned to be stored by a new technique

for minimizing energy losses. In this way the project offers the opportunity to concretely show waste

heat combined with energy efficiency improvements.

2.4 Results and outputs BEAST has functioned as a catalyst in awaking the municipal engagement in the waste heat utilization

in Boxholm. By identifying the general barriers and solutions for the project in a business plan

including a SWOT analysis and by organizing a series of meetings with involved stakeholders and give

them the opportunity to discuss the possibilities and barriers that exist, the issue is now highly

prioritized in the municipality.

Without interference from BEAST the commitment from Boxholm municipality towards the issue of

recovery of waste heat would probably still be non-existent. By gathering all the stakeholders,

highlighting opportunities and discuss the obstacles the project is now high priority in the

municipality. Knowledge and awareness of similar projects and the business solutions they applied

has been very valuable information to learn from.

In January 2015 BEAST performed a jam session with politicians and decision makers from Boxholm

municipality, representatives of Ovako, the University and the County Council. Other companies with

experience in utilization of waste heat was also invited to share their experiences. The red hot topic

for the jam session was “Possible solutions for the recovery of all the waste heat from Ovako”. A

variety of business solutions where shared of which Boxholm could benefit greatly from.

The jam session resulted in that the municipal council in Boxholm took the decision to go ahead with

the investment in a technology-enhanced way to store residual energy from the steel company

Ovako. Support in applying for funding to implement the action has been provided by BEAST along

the project. Boxholm plans to implement this project together with a company who is willing to take

a large part of the investment, and discussions about how such a business solution would look like is

ongoing right now.

The meeting form “jam session” proved to be a powerful method to reach a decision. Comments

regarding major strengths and the most useful part of the session, included, “Very good to get

information on other solutions”, “A better system overview and understanding on the driving forces

that exist in the project”, “Good to create a common understanding of the problems”, Strengths and

weaknesses were clearly visualized”. “It is clear that a decision in one or other direction must be

made now”.

2.5 Funding plan An estimate of the investment cost for energy storage is set to 25-28 million SEK (~2,5-2,8 million €).

The project will be profitable for the municipality since they will get access to nearly half as

expensive energy from the captured waste heat. Depending on many factors such as e.g. ownership,

it is currently difficult to have exact figures.

2.6 Project implementation indicators Expected energy savings (kWh): 4,5GWh


Expected CO2 reduction (tons CO2):


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New jobs created:

2.7 Photos

Photo 7 A general description of the energy storage system consisting of a layer of

boreholes, where extracted energy can be recharged. The storage technology provides the

ability to control the waste heat flows with different exergies (energy qualities) to different

zones of the storage. Heat or cold can be delivered at same time.

Photo 8 Jam session with politicians, decision makers from Boxholm municipality, representatives of Ovako, the

University and the County Council.

Photo 9 Jam Session with Boxholm and Ovako

on “Possible solutions for the recovery of all the

waste heat from Ovako”.

Photo 10 The Jam Session resulted in a decision in the municipal council of Boxholm to go ahead with the investment in an energy storage for waste energy.


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3 Best practice 3 Coordination of goods in Norrköping

3.1 General

Norrköping is the second largest municipality in the region of East Sweden with a population of 135 000

habitants.

The purpose of the project coordination of goods in Norrköping municipality is to create a logistically

efficient and environmentally friendly distribution system of goods out to the municipal units. This is

achieved by optimizing and reducing the number of deliveries, by establishing a distribution center

and a system for e-commerce and also a transition to renewable fuels.

BEASTs involvement in the project has been about identifying other similar national projects to draw

lessons from. BEAST has also worked on involving other municipalities in the region to review their

municipal transport in order to optimize and reduce them. Another activity involved to increase the

proportion of local suppliers in the municipality's procurement of food and to create conditions for a

simplified procurement procedure.

An estimation of today´s CO2 emission from municipal transports in Norrköping has also been calculated

by BEAST.

3.2 Context for the action Today, the transport sector stands for about a quarter of Sweden's final energy use and over 40% of

the total carbon dioxide emissions. Carbon dioxide emissions from transport have been given much

attention in recent years but the focus has mainly been on passenger transport and freight transport

has received less attention. This despite the fact that road freight transport has grown at a

considerably faster pace than personal transports.

Norrköping makes an annual amount of purchases that are transported to different local units. All

transportation causes air pollution emissions and noise which in turn gives rise to both

environmental and health impact. In a system without coordination there is no logistical planning of

the transports and the municipality has no overview of the supply pattern.

With the system for coordination of goods, the municipality gets a good overview and more

possibilities to influence their transports. By optimizing the transports, the number of deliveries for

each unit will be reduced and the total number of driven kilometers decreases and consequently also

the emissions of air pollutants. In addition, a coordination of goods gives more benefits such as

increased competition, improved road safety and a precise delivery to the different units. The

municipality can thus reduce their environmental and health impacts significantly and improve the

quality of the delivered goods.

3.3 Project description The project involves setting up a distribution center and to procure an operator for the center. A

computerized route optimization system is set up in parallel as a tool to reduce the number of trips

and the total number of driven kilometers. An e-commerce system is also introduced in order to have

control of all contracted and ordered goods.


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One of the project goals is also to increase the share of local suppliers in the procurement of food

and to facilitate the tendering process.

The project aims to reduce the number of food deliveries by 50% by 2018 and to increase the share

of local producers by 25% by 2018.

There are a variety of different arrangement of business solutions for running the distribution

centers. Some municipalities procure the services of running the distribution center and the

optimization of transports and others prefer to operate on its own. Several municipalities have had

problems with appeals regarding procurement when trying to get more local small and medium-sized

enterprises in the tender procedure. The pros and cons of ownership form have to be carefully

considered.

3.4 Results and outputs

The project in Norrköping is at a stage to procure a contractor for the distribution center and reviewing

various tenders in order to make a decision during 2017.

BEAST part of the project has involved to identify the general barriers and solutions for the project in a

business plan including a SWOT analysis. BEAST have contributed to strengthen and improve the project

by identifying other similar national projects and to draw lessons from them by learning from the pros

and cons in the use of different business models.

BEAST has also worked on involving other municipalities in the region to review their municipal transports

in order to optimize and reduce them. A big event “E-road- East” for promoting electrical vehicles was

organized by BEAST in spring 2015. During the event a large range of alternative smaller distribution EVs

was demonstrated and could be tested. A roadshow in municipalities with the aim to promote EVs was

carried out during 2015 and 2016. The program involved showing solutions with smaller electrical cargo

vehicles and good examples for their use. In collaboration with local companies BEAST also organized for

municipalities to borrow electrical cargo bikes. Two municipalities took the opportunity and tested

electrical cargo bikes for use in municipal services with very positive result.

The method to organize activities such as road shows and test periods which reaches officials on

multilevel positions of a municipality from municipal politicians, managers and employees in various

activities is a very effective way to enable more efficient decision making in a municipality. If

politicians are not positive to an idea, or if officials and managers do not understand the benefits of

more efficient transport methods but perhaps most important of all, if the employees who will use

the vehicles in their daily work would not be positive to the new solutions, the process would

probably take much longer. BEAST activities in the project have led to that a majority of the

municipalities and its local authorities have a better understanding of the possible solutions for more

efficient transportation of goods. One of the two municipalities who tested cargo bikes now have 3

electrical cargo bikes of their own in municipal use. Several municipalities are interested in starting

up projects, similar to the project in Norrköping, and the largest municipality Linköping is already in

good progress.

Another BEAST activity involved to increase the proportion of local suppliers in the municipality's

procurement of food. A variety of interest groups were identified and a program for a series of workshops

were launched in order to create opportunities for the municipality and various local producers to meet


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and discuss each other's requirements. Efforts to create conditions for a simplified procurement

procedure was also performed. Unfortunately, a repeat change of project leader in Norrköping

municipality resulted in a lack of continuity and clarity in the involvement of BEAST activities in the project

and as a result these activities and efforts had to be canceled due to the organizational circumstances in

the municipality.

An estimation of today´s CO2 emission from municipal transports in Norrköping has also been calculated

by BEAST. There are no statistics for how many km the municipal food transports runs since the transport

cost is normally included in the prize of the delivered goods. By the calculations performed by BEAST the

project can have an idea of how much CO2 reduction that can be generated when the project is fully

implemented.

3.5 Funding plan The municipality has allocated one million SEK annually in 2015 and 2016 for project management

and project work. There is also allocated 250 000 SEK for the purchase of an optimization tool.

The reduced number of deliveries from today's 33,400 deliveries to 16,700 deliveries per year will

save costs for the municipality. Optimized driving routes will lead to a further reduction in the

number of kilometers.

It is difficult to give exact figures for savings that this optimization will yield since it is currently

unknown how long distances the transports represent. An estimation of the CO2 emissions of today´s

transport and energy consumption have therefor been made.

We do know that today there are 33 400 food deliveries within the municipality per year. Each

transport is estimated to be about 100km. The trucks fuel consumption is 5 liter diesel per 10km.

• 33400 deliveries x 100km = 3 340 000 km per year

• 0,5 litre x 3 340 000km = 1 670 000 litre of diesel used per year

• Saving of CO2 ekv when changing from diesel to RME is 2973 ton CO2 ekv

• When reducing the transport to 16700 per year there will be an additional saving per year of approximately 1486 tCO2 ekv.

• Expected energy savings will be - from 1670000 lit diesel x 9,808kWh/l = 16379360kWh/year - to 835000 lit RME x 9,174kWh/l = 7660290kWh/year - => 8719MWh savings per year

3.6 Project implementation indicators Expected energy savings (kWh): 8719MWh per year


Expected CO2 reduction (tons CO2): 2973+1486t CO2 per year

New jobs created:

3.7 Photos


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Photo 11 Electrical cargo bike demonstrated on the

event E-Road-East

Photo 12 Smaller cargo EVs demonstrated on the

event E-Road-East.

Photo 13 Electrical cargo bike tested in municipal

services.

Photo 14 Another model of electrical cargo bike which was tested in municipal use

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