Australia: Land of plenty (opportunities for smart infrastructure)

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AUSTRALIA: LAND OF PLENTY (OF OPPORTUNITIES FOR SMART INFRASTRUCTURE)FLAVIO ROMANO

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CONTENTS

1. Setting the Context: Australia’s Strategic Challenges

2. The Role for Smart Infrastructure

3. The Path Forward

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THE CHALLENGES

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CHALLENGE ─ POPULATION GROWTH

Projected Population 2007-2056 Capital Cities and Australia

Capital cities = 67.0%

Capital cities = 63.6%

Capital cities growby 10.4 million

Source: ABS Catalogue No. 3222.0, Released 4 Sept 2008 – Medium level projections

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CHALLENGE ─ POPULATION GROWTH

2007 2026 20560

5

10

15

20

25

Medium Growth

PerthBrisbaneMelbourneSydney

Pop

ulat

ion

(mill

ions

)

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CHALLENGE – ECONOMIC CHANGE

1900–01 1950–51 2000–010%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

3 3 410

310

8

8

5

31

25

48

12

22

1220 30

410

3 6

Australia’s GDP by Industry Sector, 1900–2001 (%)

MiningAgricultureManufacturingServices (incl. technology)ConstructionPropertyGovernment

Source: ABS Year Book Australia 2005

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OTHER CHALLENGES

Australian modelling of demand growth for economic infrastructure shows:

Freight demand is set to double by 2035

The cost of urban congestion to increase from $9.4 billion in 2005 to

$20.4 billion by 2020

Electricity shortages on the East Coast by 2014-15 without further investments

Urban water demand to increase 42% by 2026 and 76% by 2056

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$250bnLow estimate

$300bnHigh estimate

$30bnper year, every year

2010

2015

2020

THE AUSTRALIAN INFRASTRUCTURE TASK

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Source: Infrastructure Australia

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CHALLENGE – FISCAL CONSTRAINTS

CeBit Australia 2012| Flavio Romano| 22 May| Source: Intergenerational Report 2010, Chart 3.2

Projected Fiscal Gap

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DEMAND/SUPPLY

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THE ROLE FOR SMART INFRASTRUCTURE

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STATE OF PLAY

Transport Intelligent Transport Systems Level 3

EnergySmart energy meters

Water & IrrigationSmart irrigation sensors

CommunicationsThe National Broadband Network provides the key enabling technology for supporting smart infrastructure that can help achieve efficiencies across all sectors

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INTELLIGENT TRANSPORT SYSTEMS

Monash-CityLink-Westgate (M1) Motorway (managed road)75 km road corridor = busiest road in Victoria (160,000 vehicles per day)$1.4 billion investment + 7% in smart infrastructureElectronic information + coordinated ramp signals = real time travel informationCongestion and incident managementVariable speed limits

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INTELLIGENT TRANSPORT SYSTEMS

In 2009, NSW introduced time of day tolling = $4 up from $3 at peak times and $2.50 at other times

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INTELLIGENT TRANSPORT SYSTEMS

The National Managed Motorways Strategy:

High Occupancy Vehicle (HOV) priority (1.2 average)Full lane control e.g. tidal contra flowsRamp meteringFreight only networks for added safety and economic valueSpreading peak demand – telepresencing/staggered work hour strategy

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INTELLIGENT TRANSPORT SYSTEMS

Singapore’s Electronic Road Pricing (ERP) system varies road prices based on traffic patterns to maintain an optimal speed range (85 th percentile).

Washington DC Capital Beltway HOT Lanes:Addition of 22.4 km of HOT/bus lanes to the I-495 with dynamic tolling due 2013One estimate: 11 billion litres of fuel spent in congestion in the US annually

United States’ Public Law 106-346 (2000) and the Telework Enhancement Act (2007)

Federal agencies required to develop employee telepresencing strategies.Reducing peak demand on urban transport infrastructure by 5%Australian report: -320,000t CO2 if 10% employees telework ½ time

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SMART ENERGY METERS

Australia is a very energy-intensive economy Debate has focused on the supply-side of generation but is slowly moving

towards demand-side measures:

Consumption choicesConsumption efficiency

Shortages predicted on the East Coast from 2014. Network efficiency

In NSW, 8% (6400 GWh) annually is lost in transmission

Capital city smart meter programmesMandatory in new dwellings in many catchmentsVictoria rolling out to all premises by 2013Moratorium on mandatory smart meter use in VIC and NSW

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SMART ENERGY METERS

Boulder, ColoradoSmart energy meters that enable full control:

Choice of energy source (coal, hydro, nuclear, etc)Consumer’s tolerance for interruptions to supply

which appliances must not be interrupted?Pricing regime based on sensitivity to fluctuations in price Emissions intensityManagement of appliances

programmed meters that can deliver just-in-time hot water obviating the need to waste energy keeping large quantities of water heated

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WATER & IRRIGATION

Big issue for Australia = arid continent.Water restrictions are widespread and stringent.Household sector smart water meters allow consumers greater, real time understanding of their water consumption but not common.Irrigation sector is adopting smart sensors to identify areas of most need.Potential synergies between energy and water smart meters largely unexplored.

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THE PATH FORWARD

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CHALLENGES TO OVERCOME

More collaboration both within and between infrastructure sectors More collaboration with international partners/leaders More accurate understanding of the cost/benefit dimension of proposed

smart infrastructure technologies Is a specific proposal worth doing? How will we know it was worth doing?

More engagement from the community Need to address privacy concerns Need for a national framework Need for common standards for smart technologies

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KEY MESSAGE

Plenty of opportunity in Australia for smart infrastructure solutions that increase the efficiency of new and existing infrastructure assets, thereby delaying costly new builds and generating positive environmental externalities.

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Thank you.