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Alaska Municipal League: Annual Local Government Conference Nov. 15th

Content of the presentation

1. Who am I2. Little bit of Finland3. Innovation? What is it?4. What are Smart Villages5. Why ÄlykyläTM Smart Village –concept is created6. How to tackle the challenges7. Benefits to municipalities and inhabitants8. Future..

Something about me..BSc of Forest economics, forester

12 years in Regional development at Lapland, Finland

7 years in the board of Lapland Centre of economicdevelopment, transport and the environment

5 Communications officer at Finnish state forest enterpriseMetsähallitus

CEO and founder of ASV Arctic Smart Village Ltd.

Finland”Land of Forests”

Population 5,5 million

Boreal forests cover 75 % of the land area• Forest biomass 2,5 billion m3

• Annual growth of the forests 107 million m3

• Usage 72,4 million m3

Roads 454 000 km (forest roads 120 000 km)Railroads 6 000 km34 harbors24 airports

What is Innovation?”Why to do something new”

Innovation is new idea, device or method (Wikipedia)

Drivers of Innovation:- Changes. World is changing around.- Need for change- Trends and megatrends- Values are changing- Technological development

Will to challenge present state!

What are Smart Villages?”Variety of solutions”

Smart Village has different meanings in differentlocations and in people’s minds

Old Villages turned to ”Smart” and new smartvillages

Needs and goals diverse

Most of the Smart Villages are based on technologyand/or energy production

Amravati, IndiaInternet

Rajahar, NepalElectricity

Malaysiapoverty relief

High-tech education,training and recreational facilities

Integratedsustainable farmingsystem

Regen Villages, Netherlands

off grid, renewable energy, watermanagement, waste management, IoT, food production

ASV Arctic Smart Village Ltd.”New Way to Think Smartness”

Why?”Well known is safe?”

Population development in Lapland

ÄLYKYLÄTM (Smart Village)”Think everything!”

Volter 40 Indoor

- Woodship- Heating power 100+20 kW- Electric power 40 KW

- Scalable

Example of energy production”Heat & Power together”

People are happier in rural areas• Sitra 2011, National Institute for Health and

Welfare 2013, Finnish Broadcasting company 2018, McGillin yliopisto & Vancouver School of Economics 2018

80 percent of the finns enhances vitality of rural areas

Silence, clean air, nature, safety and communality

Technological development allows to work anywhere

Operational environment”Dream of living in rural area”

Increasing municipal tax revenue; • Sodankylä avg. Tax revenue 7183,94 €/year/person• (municipal tax/worker in Sodankylä)• Source: www.sodankyla.fi

Municipal tax revenue increasement by workers• 20 person = 143.678,80 €• 30 person = 215.518,20 €• 50 person = 359.197,00 €• 500 person = 3.591.970,00 €

+ Other revenues+ Indirect jobs = more tax revenue

Economical benefits to municipality”Money, money, money..”

Image• Climate & environmental friendly municipality• Progressive, inhabitant friendly municipality• Resource Smartness

More inhabitants, services, jobs and purchasing power

More satisfied inhabitants

Savings in social expenses

Increaced self-sufficiency in energy and more renewal energy

Other benefits to the municipality”More is more”

Investment• 1 share/household• Returned when moving away

• Savings• Building ground (10-50.000 €)• Connections (water and electricity (15-20.000 €)• Annual energy savings (1.100 €/v (from 1.900 € to 800 €))• Annual savings from services (Internet 480 €, alarm system

562 €)• Shared economy (tools, vehicles etc. ?? €)

• Business profits to inhabitants• Lower living costs• Surplus as money or other benefits

• Communality and the quality of living

Benefits to inhabitants”Personal benefits”

The need of safe places to live is increasing: Population growth, climate change

Climate change: need for carbon free living (in Finland 40 % of CO2 emissions from living, target 2040 carbonneutral country)

Increased self-sufficiency = Safety

Significance of the food production is increasing

Future”Turning challenges to opportunities”

Climate & environmental wise thinking is becoming mainstream

Changes in Service production. (Legislation changes in socialservices)

Dispersing energy sector

The meaning of the resilience is increasing

The attraction of the Arctic is growing!

Future”Looking forward..”

Change is inevitableIn which raft would you like to be?

Steer and control Go with the current

Thank you!

Juri Laurila, CEO+358 (0)40 514 [email protected]