SustainableUrban InfrastructureGuangzhou Edition – Answers for a Future Low-Carbon Metropolis

A research project sponsored by Siemens

Acknowledgements

This report is co-authored by Siemens Management Consulting and Guangzhou Institute of Energy under Chinese Academy of

Sciences. Here, great thanks should go to all those who have contributed valuable insights and time to this program:

Dr. Wu Qinghai Senior Core Expert, Department Manager, Corporate Technology Technology Deployment and Consulting

Mr. Li Wei Chief System Architect, Chief Architect of Ecological City Corporate Technology

Mr. Max Milz Senior Consultant Siemens Management Consulting Munich Headquarters

Mr. Lu Jiawei Consultant Siemens Management Consulting Beijing Office

Mr. Hong Xiaodan Consultant Siemens Management Consulting Beijing Office

Dr. Liao Cuiping Senior Researcher Energy Strategy Research Center

Dr. Wang Peng Research Assistant Energy Strategy Research Center

Mr. Guo Hongxu Doctoral Researcher Energy Strategy Research Center

Preface

Preface

Improving energy efficiency is a top priority for governments of China and countries around the world to reduce financial and environ-

mental costs in energy supply and consumption and embark on sustainability.

Guangzhou is a vanguard in improving energy efficiency and promoting sustainable development among Chinese cities. Under guidance

of the leadership of Guangdong Province and Guangzhou City, Siemens Ltd. China (hereinafter referred to as Siemens) and Guangzhou

Institute of Energy under Chinese Academy of Sciences (Guangzhou Institute of Energy) set up a joint research team that analyzes energy

consumption and supply in main fields in Guangzhou and proposed energy conservation measures for each field.

During implementation of the program, commercial and technical experts from Siemens and Guangzhou Institute of Energy, and experts

and scholars from local research institutions and government agencies, based on their own expertise and know-how, came up with

practical and feasible suggestions for improving energy efficiency in building, mobility, energy supply and industry areas to contribute

to building a sustainable Guangzhou.

Here, many thanks should be extended to:

● Mr. Wu Hong, director of Guangzhou Municipal Development and Reform Commission, for his support and steering for the program;

● Experts and scholars from local research institutions and government agencies for their contribution to this report;

● Members of the research team for their dedicated efforts.

It is believed that findings in this report would duly contribute to Guangzhou’s ongoing sustainability initiatives.

Mr. Nong Keqiang

Senior Vice President & General Manager

of South Region

Siemens Ltd., China

Ms. Zhao Daiqing

Deputy Director

Guangzhou Institute of Energy under

Chinese Academy of Sciences

Table of Contents

Part 1

I. MAJOR FINDINGS 06

II. METHODOLOGIES 10

Part 2

III. EXECUTIVE SUMMARY 12

Part 3

IV. BUILDING 13

Part 4

V. MOBILITY 22

Part 5

VI. ENERGY SUPPLY 28

Contents

Part 6

VII. INDUSTRY 32

Part 7

VIII. PROPOSED DISTRICT-LEVEL ENERGY SAVING MEASURES 34

Part 8

IX. FIVE ACTIONS – POLICY OPTIONS 36

Part 9

X. CONCLUSION 38

APPENDIX 1: 17 ENERGY SAVING MEASURES 39

APPENDIX 2: DATA SOURCE 40

Cities are mainstays in the ongoing sustainability initiatives in China and around the world. A leading mega-city in the center of the Pearl River Delta in China, Guangzhou has realized the importance of rational response to the challenge of urban sustainability and has been striving for optimal solutions for urban development. In this context, this program was initiated and implemented at a right time. Undoubtedly, improving energy efficiency is an important way to realize sustainable urban development. It is believed that reasonable measures for boosting energy efficiency would achieve effective control over energy consumption while accommodating goal of higher quality of life. Initiatives taken for this purpose would not only support sustainable urban development, but also save costs for the government, enterprises and end consumers.

This program was initiated on the basis of consensus between Siemens and Guangdong provincial and Guangzhou municipal leadershipThis program was proposed and initiated by Mr. Wolfgang Dehen, a member of Siemens AG board, at the International Consultative Conference on the Future Economic Development of Guangdong Province in January 2010, and approved by Guangdong provincial and Guangzhou municipal leadership later. A program team composed of experts from Guangzhou Institute of Energy and Siemens set up under guidance of the provincial and municipal leadership executed this program and prepared and submitted the final report to the Guangzhou Municipal Development and Reform Commission. This program was formally confirmed and launched in August 2010 when Ms. Zhao Daiqing, deputy director of Guangzhou Institute of Energy, and Mr. Nong Keqiang,

senior vice president of Siemens China, signed a cooperation memorandum.

The program fully mobilized local and international expert resources from Guangzhou and Siemens Based on Siemens’ world-class sci-tech expertise in urban infrastructure sustainability and Guangzhou Institute of Energy’s experience in energy strategies and knowledge of local conditions in Guangzhou, this program was launched to provide practical and effective sci-tech measures for improvement of energy efficiency, so as to support sustainable development of Guangzhou.

This research deals with energy consumption status and growth, key performance indicator (KPI) benchmarking as well as sci-tech and policy measures Focusing on building and mobility, the two fields seeing energy consumption growing

Major Findings

Going beyond analysis of energy consumption and sci-tech measures, this study comes up with district-level energy saving measures and policy suggestions for the “3 Renovations” program of Guangzhou and presents best practices of such international metropolis as New York, Paris, etc. for reference by the Guangzhou municipal government.

This study delivers five major conclusions on further improvement of energy efficiency in Guangzhou 1. Energy demand in Guangzhou will maintain rapid growth in the next 10 years. 2. Guangzhou has considerable energy saving potential. The international KPI benchmarking shows that Guangzhou’s energy saving potential is about 38 percent in building and about 28 percent in mobility sectors.

the fastest, as well as the fields of industry and energy supply, this study was implemented in two phases. All its findings have got recognition at the expert panel attended by representatives from local research institutions and government agencies. ● Phase I: Analyzing energy consumption status in Guangzhou (the year of 2008 as the base year), forecasting energy consumption in 2020 (only for building and mobility, the two key research fields), international KPI benchmarking (only for building and mobility, the two key research fields), and deriving out energy saving potentials in respective fields. ● Phase II: Assessing 200 energy saving measures before selecting 17 delivering the greatest local applicability and energy saving potential, conducting in-depth analysis of the 17 initiatives, and coming up with practical suggestions on implementation of the measures.

3. The 17 energy saving measures delivering reasonable financial benefit and prominent energy saving effects have become mature. A total of 17 key practical and feasible measures are selected by the program team and local experts from the energy saving measure pool containing 200 measures in building, mobility, industry and energy sectors. 4. Guangzhou is suggested to make use of current major development opportunities to accelerate local deployment of energy saving technologies. For instance, the “3 Renovations” program is a golden opportunity to promote deployment of energy saving technologies. 5. Guangzhou is expected to further strengthen planning, motivation, supervision and education on the basis of existing energy efficiency policies. Guangzhou has been focusing on urban sustainability and has achieved good results

Introduction

therein. What could be further enhanced is development of an all-round action plan for sustainable development, which is suggested to include guidelines for urban planning featuring sustainability, systematic plans of investment in energy saving technologies, economic incentives for enterprises and individuals, a well-targeted system of energy saving indicator control, implementation and supervision, and continuous in-depth public education programs.

Energy demand is rapidly growing, but energy saving potential is huge In order to properly identify energy challenges in Guangzhou, this study analyzes characteristics of energy consumption in Guangzhou and makes a medium to long-term forecast of its future growth as of 2020. Results of energy consumption analysis are converted into KPIs, which are then compared with general and best international indicators based on advanced science and technologies in other international cities. In the benchmarking, the KPIs are aligned to local realities (such as climate and level of development) of Guangzhou. What should be emphasized is that energy consumption calculated in this report is the grand total of various energies at the demand side, including primary energy (such as coal) and secondary energy (such as power). Yet energy consumption calculated in statistical yearbooks is the grand total of various energies at the supply side. Since the process of energy conversion (such as power generation) would cause much loss, energy consumption in each field in this report cannot be directly compared with the total energy consumption in statistics yearbooks.

17 sci-tech measures are developed to realize energy saving potential More than 200 sci-tech measures are assessed by experts from Siemens and Guangzhou Institute of Energy. Assessment criteria are as follows: (i) energy saving potential of the

measures themselves; (ii) applicability of the measures to Guangzhou; and (iii) difficulty in implementation of the measures in Guangzhou (including the implementation time and technical complexity). Assessment results have been reviewed by an independent expert panel attended by representatives from local research institutions and government agencies. 17 technical measures with the greatest energy saving potential and applicability are selected and further analyzed. The 17 measures include 8 in building, 3 in mobility, 3 in industry and 3 in energy supply. In-depth analysis of each measure contains detailed description, estimate of energy saving potential, cost-benefit analysis, case study and practical suggestions.

Improvement measures in building sectorSmooth implementation of the 8 improvement measures in the field of

building is expected to deliver energy savings of 24 percent as compared with forecasted energy consumption growth by 2020.

Improvement measures in mobility sectorSmooth implementation of the 3 improvement measures in mobility sector is expected to deliver energy savings of 19 percent as compared with forecasted growth of energy consumption of passenger transport by 2020. In general, finalized measures in the field of mobility would bring more social and environmental benefits than direct financial benefits. They would promote conversion of people’s mobility pattern from private cars to public transport, so as effectively reduce urban traffic congestion and exhaust emissions, facilitate people’s traveling and contribute to sustainable urban mobility.

Improvement measures in energy supply sector

Major Findings

Smooth implementation of the 3 improvement measures in energy supply field is expected to deliver 16 percent savings of loss in energy supply as compared to 2008 the base year.

Improvement measures in industry sectorSmooth implementation of 3 improvement measures in industry field is expected to deliver 11 percent savings of actual energy consumption as compared to 2008 the base year.

8 energy saving measures based on the needs of renovation of the old urban areas To assist the ongoing “3 Renovations” program and build “green zones” in Guangzhou, 8 district-level energy saving measures are selected by the program team for reference by the municipal government in development of the renovation program.

“Five Actions for Sustainable

Development”: Policy suggestions for Guangzhou In order to better help implementation of the improvement measures, this study also provides a series of practical policy suggestions with “Five Actions for Sustainable Development” as the framework, in which policy contents and implementation effects of international best practices are cited. These suggestions are developed to arouse individuals’ and enterprises’ positive responses to and practical actions for sustainable development through Guangzhou municipal government’s effective policies and mechanisms. The “Five Actions” would urge Guangzhou to: ● Firstly, change the overall urban operation and administration through development and implementation of plans and the Code of Conduct for urban sustainable development, so as to direct residents to sustainable lifestyles;

● Secondly, make active investment in deployment of energy saving technologies in urban infrastructure construction; ● Thirdly, promote the concepts and skills of sustainable development and educate the public on how to take actions for sustainable development; ● Fourthly, establish economic incentives to attract individuals and enterprises to take the initiative to join the cause of sustainable development; ● Fifthly, establish and control objectives of sustainable development KPI management and implement actions for sustainable urban development through combination of policies, regulations and sci-tech means. Best practices of policy options in such international cities/regions as New York, Paris, Graz and Sheffield, etc. are selected as samples and suggestions on policy making for Guangzhou are provided in this study.

Basic methods used in this research are taken from Siemens’ proven experience in urban research worldwide. The past research cases include such world-renowned metropolis as London (UK), Munich (Germany), Yekaterinburg (Russia), Barcelona (Spain), etc. These research methodologies are adapted to characteristics of Chinese cities to improve local applicability by Siemens together with Guangzhou Institute of Energy. On that basis, all the research results have been reviewed and validated by the advisory committee consisting of experts from local research institutions and government agencies to further ensure quality of the research findings. The research program was completed in two phases. Additional suggestions are also contained under the requirement by Development and Reform Commission, thus improving relevance and practical value of this study:

Phase I: Analysis of energy consumption Analysis of energy consumption status is entirely based on data published by the government and research institutions’ findings which have been verified with special calculation model developed by experts from Siemens and Guangzhou Institute of Energy. Phase I consists of three steps: 1) analysis of energy consumption in Guangzhou in 2008, the base year; 2) forecast of energy consumption by 2020 based on the growth rate; and 3) international KPI benchmarking and calculating the energy saving potential. 1) Energy consumption in Guangzhou in 2008: data from the Guangzhou Statistical Yearbook 2009 are used and energy consumptions in the following fields are expressed in tons of standard coal. What should be emphasized is that energy consumption calculated in this report is the grand total of various energies at the demand side, including primary energy (such as coal) and secondary energy (such as power). Yet energy consumption calculated in statistical

yearbooks is the grand total of various energies at the supply side. Since the process of energy conversion (such as power generation) would cause much loss, energy consumption in each field in this report cannot be directly compared with the total energy consumption in statistical yearbooks. Building: Public buildings and residential buildings are analyzed respectively by 4 types of energy consumption factors: air conditioning, lighting, appliances, and hot water & cooking. Mobility: In consideration of data availability and better focused analysis of improvement measures that could be directly applied, this report covers only intra-city passenger transport and road cargo transportation while excluding inter-city passenger transport (such as planes, railway, buses,

etc.) and other cargo transportation means. The former is analyzed by 4 types of mobility factors: private cars, taxies, buses and metros. Motorcycles are not included in view of local industry and mobility development policies. Road cargo transportation is largely based on analysis of truck transport. Industry: Total energy consumption of larger industrial enterprises that deliver top-ten energy consumption is analyzed. Given repeated calculation of raw material consumption, “nuclear fuel, oil and other fuels” and “electric heating and power generation” industries are not included. Energy supply: Locally produced power and power transmitted from other places are respectively analyzed. 2) Forecast of energy consumption by 2020: only for building and mobility (limited to key research fields). The contents include each

Methodologies

Methodologies

type of energy consumption factors (based on building types and mobility patterns) and its specific energy consumption patterns. For instance, air conditioning, lighting, appliances and hot water & cooking in residential and public buildings are covered in the building section, and private cars, buses, taxies, metros in intra-city passenger transport and road cargo transportation are covered in the mobility section. Growth rate forecast is based on the complex model calculation and basic data input (such as growth of gross floor space and increase in private car ownership). Historical data of Guangzhou, international benchmarking data and known predictive values from government agencies (such as data published by the Wall Material Reform Office, the Guangzhou Rail Transit Planning, etc.) are also used in the model. Each figure

of growth has been tested and verified with at least two forecast methods. Forecast assumptions of each forecast model have been recognized by experts from local research institutions and government agencies. 3) Benchmarking of KPIs and forecast of top-down energy saving potential: only for building and mobility (limited to key research fields). KPIs are calculated based on energy consumption data and benchmarked against international cities in Siemens internal database. Data samples from Chinese cities and other comparable cities are also included in the analysis. Local expert engagement and local applicability alignment (for example, consideration of such factors as climate and economic development level for the field of building) ensure comparability of the KPIs used for benchmarking.

By comparison, percentages of relative energy saving potentials in the two fields are calculated based on general and best KPIs respectively. The total energy saving potential is estimated in thousand tons of standard coal through multiplying the percentage of energy saving potential gained at the previous step by the forecasted baseline energy consumption by 2020. Phase II: Prioritization and in-depth analysis of improvement measures While analyzing energy consumption, a special energy saving measure pool for this program is established. The pool contains more than 200 energy saving measures in the four involved fields. Each improvement measure has been evaluated by the program team and local experts in three aspects: (i) typical energy saving percentage; (ii) local applicability (including proportion of current deployment and proportion of future application); and (iii) difficulty of implementation (including time needed and sci-tech complexity). Based on the above evaluation results, 17 improvement measures with the greatest energy saving potential (mostly focusing on building and mobility) are selected. Specific distribution of the measures is as follows: 8 in building field, 3 in mobility, 3 in industry and 3 in energy supply. Detailed case study is conducted for each selected finalized measure. The analysis includes (except for some circumstances in which it is difficult to apply the measures, such as estimate of investment payback in mobility technologies): detailed description of the measures, verification of local applicability, estimation of local energy saving potential (based on forecast of energy consumption at Phase I), cost-benefit analysis (ROI, investment payback period), local/international cases and practical suggestions for local implementation. Results obtained have been re-verified by local experts.

Cities are in the center stage of sustainable development in China and around the world. Today, over 50 percent of the world’s population lives in cities, and the percentage will increase to 60 percent by 2030. Cities consume more than 60 percent of the world’s energy, and the figure will increase to 75 percent by 2030. The unique characteristics of cities – high population density, dynamic changes, especially emergence of new industries – not only bring about challenges but also provide opportunities. The challenge of high population density can be addressed with more efficient large-scale technologies, such as metro or district cooling, while dynamic urban morphology generated with emerging industries means that most of the infrastructure would be replaced – cutting-edge energy-saving technologies can be used in new buildings from the start, eliminating the need for costly renovation of outdated buildings. With the growing shortage of resources and

increasing environmental pressures, Chinese cities need to find a way of sustainable development to address the problem of shortage of energy. As high-tech industries and service industries play a more and more important role in economic development, better quality of life in cities has become an important factor for government and enterprises to attract and retain talented people. City residents need not only economical and safe energy supply but also environmentally friendly clean energy to ensure good air quality. Energy efficiency boost is an important factor in achieving these goals. Improving energy efficiency could improve the living standards of urban residents on the condition that energy supply remains unchanged. As a first-tier city in Pearl River Delta, Guangzhou has been in the forefront of energy conservation, successfully achieving energy-saving goals in the first years of the 11th Five-Year period and delivering a lower

unit GDP energy consumption than other cities. To further identify energy saving potential and apply advanced energy saving technologies, the Guangzhou municipal government invites Guangzhou Institute of Energy and Siemens for cooperation in development of energy-saving measures. Therefore, this report is co-authored by Siemens and Guangzhou Institute of Energy. Siemens is a world-leading provider of infrastructure with a wealth of practical experience in consultation and suggestions on urban sustainable development worldwide, while Guangzhou Institute of Energy, a leading scientific research institution in China, has a wealth of academic knowledge in energy consumption patterns and trends. By combining world’s cutting-edge technologies and in-depth understanding of local conditions, this report is expected to deliver practical and feasible suggestions on energy-saving technologies for sustainable urban development of Guangzhou.

ExecutiveSummary

Executive Summary

Building Based on the three criteria – energy saving potential, local applicability and difficulty in implementation, experts from local research institutions and the program team score the measures and select 8 best building energy saving measures, and analyze each measure from 6 aspects in detail.

Energy saving in building envelope Overview Well designed building envelope is a focus of energy efficiency for both public buildings and residential buildings. Envelope’s thermal performance design, which should be adapted to climates of Guangzhou, largely comes down to heat protection in summer, dehumidification over transitional seasons and natural ventilation. Description and applicability Building envelope refers to the enclosure between internal and external environment of a building, such as walls, doors, windows,

roof, floor, etc. According to direct/indirect contact with the outside air and location in the building, building envelope consists of external envelope and internal envelope. Thermal state in a building can be affected by the outdoor weather condition and the envelope, so building HVAC energy consumption is closely related to the form of building envelope. Thus optimizing form factor of building envelope to improve building thermal performance is an important way of energy conservation in buildings. According to expert assessment, currently in Guangzhou, for energy saving based on optimization of building envelope, proportion of current deployment is about 43 percent, and proportion of ultimate deployment is about 65 percent, thus the room for improvement is 22 percent, with a 4~5 years period to realize the desired proportion of ultimate deployment. Analysis of energy saving potential Optimizing building envelope is largely used to improve its thermal performance. For

Guangzhou, energy saving potential of this improvement measure is calculated mostly through reducing energy consumption of air conditioning and ventilation in residential and public buildings. Analysis of energy saving of buildings in Guangzhou shows that, in terms of 50 percent, the current requirement for energy saving of buildings, existing buildings could contribute 38.6 percent through upgrading of building envelope; in terms of the requirement of 65 percent, new buildings still have a 15 percent room for improvement in their contribution through upgrading of building envelope (in which contribution of optimized window sunshade is approximately 7 percent, improved natural ventilation more than 5 percent, improved outer wall heat transfer coefficient 2 percent, and improved roof heat transfer coefficient 0.2 percent). Calculations based on the forecasted data of gross floor space and energy consumption of residential and public buildings in Guangzhou

Building

Building

in the next 10 years show that, by 2020, improvement of building envelope can reduce emissions of about 720,000 tons of standard coal as compared with the baseline, accounting for 4.44 percent of total energy consumption of buildings in that year. Cost-benefit analysis Given the proportion of current deployment, proportion of ultimate deployment and the implementation period for achieving the proportion of ultimate deployment, calculations based on the forecasted data of gross floor space and energy consumption of residential and public buildings in Guangzhou in the next 10 years show that improvement of building envelope delivers an average payback period of about 6 years and average annual ROI of 21.2 percent. The technologies are assumed at the locally first-class level.

Heat pump technology Overview Heat pump is an energy-saving device that

transforms heat flow from low-grade heat source to high-grade heat source by use of high potential. While consuming part of the energy itself, the device taps energy stored in the environmental media and makes use of it through increasing potential temperature, thus improving effective energy utilization. Heat pump system is largely used to provide domestic hot water and air conditioning in Guangzhou. Currently large heat pump applications in Guangzhou are mostly used to provide hot water for public buildings. Description and applicability Energy consumption of hot water takes up a larger proportion in energy consumption of public buildings in Guangzhou. In 2008, total energy consumption of public buildings in Guangzhou was 2,620,000 tons of standard coal, in which 41 percent was attributable to hot water. Annual growth of public gross floor space in Guangzhou was 7.3 percent. Several heat pump systems all find potential of application in public buildings, thus there’s a big room for application of heat pump

Building automation system

Overview Building automation system (BAS), an indispensable part of intelligent building, is designed to measure, monitor, control and manage mechanical and electrical equipment, energy use, environment, mobility and safety in buildings, so as to provide a safe, reliable, energy-saving, comfortable and pleasant working/living environment. Description and applicability BAS typically includes such subsystems as HAVC, water supply & drainage, power supply & distribution, lighting, elevators, fire protection, security, broadcasts, etc. Featuring a system similar to EIB, BAS enables various subsystems within the buildings to automatically adapt such functions as ventilation, cooling, heating, lighting and shading in alignment with changes in external natural environment (sound, light, heat, cold) and internal environment (people’s activities, internal air quality). BAS, involving not only modern computer technologies, modern

network data communication technologies and modern automatic control technologies but also construction equipment technologies, is a typical representative of multidisciplinary technologies. BAS is mostly applied to public buildings. Given the unobvious trend of large-scale deployment of smart home in residential buildings, calculations here exclude application of BAS in residential buildings.

technology in the future. According to the Guangzhou New Energy and Renewable Energy Plan 2008-2020 and local expert estimates, there are still 30 percent of public buildings in Guangzhou can accommodate heat pump systems. Analysis of energy saving potential Heat pump systems currently used in Guangzhou are largely for hot water supply. Assuming that future promotion of heat pump systems would progressively realize CCHP, substituting heat pump systems for 30 percent of hot water installations in public buildings in 5 years as of 2011 would reduce 2.5 percent of total energy consumption of buildings in Guangzhou, achieving energy savings of 410,000 tons of standard coal by 2020. Cost-benefit analysis The measure of heat pump technology would recover the costs in about 2 years and receive annual ROI of 25 percent. Operating costs of heat pump are significantly lower than that of fuel oil and gas boiler, saving 20

Building

to 40 percent costs in cooling and more than 50 percent in heat supply. Relevant technologies are assumed at the locally first-class level. Case study Dynasty Hotel is a four-star hotel located at Zhaoqing Xinghu Scenic Zone, with a gross floor space of 60,000m2 and 370 rooms. Delivering 150-200t hot water each day, the hotel originally had four fuel oil direct-fired lithium bromide chillers and two 4t/h heavy oil-fired hot water boilers. Its newly installed ground source heat pump systems offer 150-400t 48~52 Celsius degree hot water each day, and 7~9 Celsius degree chilled water for air conditioning in refrigerating seasons. COP of the heat pump unit is great than or equal to 4.2 in heating, and great than or equal to 3.6 in CCHP. With total investment of about RMB1.2 million, the system delivers savings of operating costs of RMB687,000 each year and payback period of less than 2 years.

Temperature/humidity independent control air-conditioning system Overview Air conditioning is designed to provide a comfort and healthy indoor environment for buildings by maintaining proper indoor temperature, humidity, air flow, cleanliness and air quality. Most of current air conditioning systems adopt simultaneous control of temperature and humidity, that is, simultaneously cooling and condensing & dehumidifying the air through air cooler to generate cold and dry air, so as to achieve heat & moisture removal. Since supply air temperature is higher than dew point temperature, large concentrated air conditionings’ achieving dehumidification through condensation would cause great waste of energy and a cascade of problems. The temperature/humidity independent control system, or desiccant air conditioning, can realize adjustment and control of humidity, thus not only avoiding

the loss caused during combined control of heat and moisture in conventional air conditioning system, but also improving indoor air quality and comfort. Description and applicability Temperature/humidity independent control system is composed of four core components: high-temperature water chiller unit (outlet temperature of 18 Celsius degree), make-up air handling unit (preparing dry make-up air), indoor end equipment for sensible heat removal and indoor air supply end equipment for latent heat removal. In humid areas in southern China, for preparation of high-temperature cold source, mechanical refrigeration can also be used to prepare 18 Celsius degree cold water even without ground water or other available natural cold sources. With higher water supply temperature, coefficient of performance of refrigerator could be improved markedly. In humid areas in southern China, moisture

According to expert assessment, currently in Guangzhou, for BAS installed in public buildings, proportion of current deployment is about 40 percent, and proportion of ultimate deployment is about 68 percent, thus the room for improvement is 28 percent, with an about 3-year period to achieve the proportion of ultimate deployment. 4.1.2.3 Analysis of energy saving potential BAS can achieve energy saving largely through monitoring and coordinating control over operating parameters of various building equipment – making them at the preset value, stable value or

best operating status, or optimizing the start/stop control. Actual cases show that intelligent building technologies can reduce energy costs significantly under the prerequisite of ensuring comfort. Integrated building & room automation system can save 10 percent energy consumption in HVAC, lighting, hot water and various types of equipment. Calculations based on future trends of public buildings in Guangzhou show that, by 2020, implementation of BAS would deliver an energy saving potential of 710,000 tons of standard coal as compared with the baseline, accounting

for 4.35 percent of total building energy consumption in that year. 4.1.2.4 Cost-benefit analysis Given the proportion of current deployment, proportion of ultimate deployment and the implementation period for achieving the proportion of ultimate deployment, calculations based on the forecasted data of gross floor space and energy consumption of residential and public buildings in Guangzhou in the next 10 years show that installation of BAS in public buildings delivers an average payback period of about 3 years and average annual ROI of 9.3 percent. The technologies are assumed at the locally first-class level.

content of outdoor make-up air is high, but air volume is only about 20 percent of total indoor air circulation, thus only this part of make-up air needs to be dehumidified separately. Most of indoor sensible heat load can be handled by other high-temperature units, thereby significantly improving the efficiency of the units. According to expert assessment, currently in Guangzhou, for deployment of temperature/humidity independent control in public buildings, proportion of current deployment is about 18 percent, and proportion of ultimate deployment is about 54 percent, thus the room for improvement is 36 percent, with an about 3-year period to achieve the proportion of ultimate deployment. Analysis of energy saving potential

For conventional air conditioning system, when evaporating temperature is 7.2 Celsius degree, energy efficiency ratio of the host machine is approximately 3.7 (regardless of energy consumption of auxiliary machines such as pumps, fans, etc.). If dehumidification is unnecessary, evaporating temperature can be raised to 18 Celsius degree, and energy efficiency ratio can be raised to 5.6. If the small amount of power consumption generated during dehumidification of the make-up air is taken into consideration, integrated energy efficiency ratio of the new system is 4.7 or so, which significantly improves efficiency of the entire air conditioning system and reduces energy consumption of the unit by 20~30 percent. For conventional air conditionings that

Overview Energy consumption of lighting, accounting for 8 to 21 percent of total energy consumption of residential buildings, has been growing at a relatively fast rate – 14 percent for residential buildings, and 10 percent for public buildings. Therefore, lighting energy efficiency plays a very important role. With advantages of being remarkably energy-saving, easy-to-quantify, easy-to-implement and widely used, energy-saving lamp is a very useful energy efficiency measure. Description and applicability Measures of energy-saving lamps include: (i) substituting ceramic metal halide lamps for traditional halogen lamps, which is mostly applied to department stores, delivers an energy saving potential of up to 80 percent; (ii) substituting T5 fluorescent lamps for ordinary and T8 fluorescent lamps, which is mostly applied to offices, delivers an energy saving potential of up to 65 percent; and (iii) substituting compact fluorescent lamps for incandescent lamps, which is mostly applied to residential buildings, delivers an energy saving potential of up to 80 percent. According to expert estimates, energy-saving lamps can replace 40 percent of existing lamps in Guangzhou, delivering a remarkable applicability. Department stores and offices, with higher lighting

energy consumption, are the most suitable building types for application of energy-saving lamps. Analysis of energy saving potential Based on such data as energy saving potential, applicability and lighting energy consumption forecasts, it can be estimated that, by 2020, energy-saving lamps can reduce the use of about 660,000 tons of standard coal, equivalent to 4.0 percent of the total energy consumption in that year, for Guangzhou each year. Cost-benefit analysis Based on such data as capital investment, maintenance costs, energy saving potential, power price, etc., investment payback period and annual ROI of three key types of energy-saving lamps can be estimated as: 0.4 years and 75 percent for substituting ceramic metal halide lamp for traditional halogen lamps; 1.2 years and 22 percent for substituting T5 fluorescent lamps for T8 fluorescent lamps; and 0.4 years and 141 percent for substituting compact fluorescent lamps for incandescent lamps. Return of energy-saving lamps can be seen quite attractive. The technologies are assumed at the locally first-class level.

conduct cooling and dehumidification simultaneously, it’s difficult to meet design requirements of temperature and humidity at the same time. Yet the new temperature/humidity independent control air conditioning system can control these two indicators easily and satisfy the design requirements, thus improving air quality. Therefore, temperature/humidity independent control air conditioning system has a larger advantage over conventional air conditioning system in reducing energy consumption and improving air quality. Calculations based on future trends of public buildings in Guangzhou show that, by 2020, implementation of temperature/humidity independent control system would deliver an energy saving potential of 610,000 tons of standard coal as compared with the

Building

baseline, accounting for 3.73 percent of total energy consumption of buildings in that year. Cost-benefit analysis In general, temperature/humidity independent control air conditioning system can reduce energy consumption of air conditioning with a payback period of about 3 years and average annual ROI of 18.5 percent. As compared with conventional systems, combination of cheaper natural cold source and temperature/humidity independent control system featuring outdoor climate compensation technology could achieve significant economic benefits – less energy consumption (only 20 to 70 percent of that of conventional systems), as well as less building carbon dioxide emissions (30 to 50 percent lower than that of conventional systems). The technologies are assumed at the locally first-class level.

Lighting automation system Overview As mentioned above, energy consumption of lighting plays an important role in energy consumption of buildings and has been growing rapidly. In addition to energy-saving lamps, lighting automation is another possible initiative for energy saving measures in buildings. With deployments in high-end buildings in major cities in China and other countries, this measure delivers high energy saving potential and high applicability to Guangzhou. However, governmental guidance plays an important role in promoting lighting automation at the demand side and making lighting automation an economically feasible energy saving measure by directing industrial development.

Overview A solar water heater is a heater that heats water with solar energy. Various types of solar water heaters deliver average operating costs of 10 to 20 percent of that of electric water heaters, fuel oil water heaters and gas water heaters. Building integration is the main trend of development of solar water heaters in the future. Flat water heaters are regarded more suitable for complex buildings. Description and applicability According to the Guangzhou New Energy and Renewable Energy Plan 2008-2020 and local expert estimates, there are still 35 percent of water heaters in Guangzhou can be replaced with solar water heaters. Analysis of energy saving potential As compared with electric water heaters, fuel oil water heaters and gas water heaters, solar water heaters deliver nearly zero energy consumption in operation. Residential buildings in Guangzhou grow at an annual rate 6.4 percent, and energy consumption of hot water 7.9 percent. By 2020, energy consumption of hot water in residential buildings in Guangzhou would increase 2.5 times without implementation of energy saving measures. Yet such initiative as gradual replacing the 35 percent of electric and gas water heaters with solar water heaters in existing residential buildings, constructing new

residential buildings and promoting solar complex buildings would decrease energy consumption of buildings in Guangzhou by 1.1 percentage points, achieving energy savings of 180,000 tons of standard coal. Cost-benefit analysis Regardless of improvement of technologies of solar water heaters, substituting solar water heaters for gas water heaters would recover the costs in about 3 years and achieve a 21 percent annual ROI. The technologies are assumed at the locally first-class level.

Solar water heaters

Description and applicability Automatic control of lighting includes three aspects. Firstly, basic switch control – automatically switching lighting in relevant areas through schedule and timing of building automation system; secondly, making full use of sunlight – reducing illumination of artificial light sources at the window, etc. under the perquisite of ensuring lighting effects; and thirdly, automatically lighting off in unmanned areas. The latter two belong to advanced lighting automation system. The above control scheme could deliver average energy saving potential of up to 40 percent. According to expert estimates, there are still 30 percent of buildings in Guangzhou can be installed with lighting automation system, indicating a remarkable

Overview Pumps and fans, essential for buildings, are most power-consuming equipment in buildings. Pumps and fans are major energy consumers of a HVAC system. Power consumption of pumps in large and medium-sized central air conditioning system even takes about 30 percent of total power consumption of system. Since pumps and fans are major energy consumers of a HVAC system, realization of energy saving of pumps and fans would significantly reduce energy consumption of buildings. Description and applicability Pumps and fans are mostly used in water supply system and air conditioning system of buildings. For example, pumps can be used for water supply & drainage, coolant, condensate water and circulating water conveying in buildings and fans for ventilation, dust discharge and cooling, air conditioning equipment and household appliances cooling and ventilation in buildings. According to expert assessment, currently in Guangzhou, for pumps and fans, proportion of current deployment is about 40 percent, and proportion of ultimate deployment is about 65 percent, thus the room for improvement is 25 percent, with an about 3-year period to achieve the proportion of ultimate deployment. Analysis of energy saving potential Variable frequency energy saving systems (devices) used in various types of speed control system could achieve 20 to 55 percent energy savings for

single equipment and realize 20 to 50 percent energy savings averagely for pumps and fans. Studies show that high-efficiency energy-saving water pumps can improve the operating efficiency by 20 to 40 percent and save energy by 40 to 70 percent as compared with ordinary air conditioning water pumps. Studies also suggest that many current fan systems in China deliver only 45 to 50 percent operating efficiency while average efficiency of fan systems in other countries achieves 75 percent or so, thus there’s a 25 percent room for improvement of operating efficiency of current fan systems in China. According to the above studies, pumps and fans renovated for energy saving are assumed to deliver energy saving effect of 30 percent averagely. Calculations show that, by 2020, upgraded pumps and fans in buildings deliver energy saving potential of 19 tons of standard coal, accounting for 1.16 percent of total energy consumption of buildings in that year.

Pumps and fans

applicability. Average sunshine duration in Guangzhou is 1,628 hours per year, an average of 4.5 hours per day, accounting for half the normal working hours. Deployment of automated lighting system can take good advantage of sunshine and effectively reduce artificial lighting. Analysis of energy saving potential Based on such data as energy saving potential, applicability and lighting energy consumption forecasts, it can be estimated that, by 2020, lighting automation system can reduce the use of about 330,000 tons of standard coal, equivalent to 2.0 percent of total energy consumption in that year, for Guangzhou each year.

Cost-benefit analysis Based on such data as capital investment, maintenance costs, energy saving potential, power price, etc., Payback period and annual ROI of lighting automation system can be estimated as 4 years and 15 percent respectively. The technologies are assumed at the locally first-class level. Case study The Shanghai Expo Center served as the operation command center, ceremony & conference center, information center and forum & activity center during the 2010 Expo. Lighting automation solutions achieved with Osram intelligent dimming electronic ballasts include 5,326 sets of QTi T/E

2x18-42/220-240 DIM and 2,391 sets of QTi T/E 1x18-57/220-240 DIM, while energy-saving lamp solutions include Osram energy-saving lamps, 30,000 T5 fluorescent lamps, 14,000 compact fluorescent lights, 5,000 light LINEARlight LED and 5,000 energy-saving halogen lamps.Osram lighting solutions for the Expo Center not only created desired atmosphere in pavilions, but also saved energy significantly (lighting automation and energy-saving lamps saved 80 percent energy in the total, in which lighting automation accounted for 33 percent), according to Osram engineers’ measurements and calculations.

Building

To further support the 8 energy saving measures recommended in this report, the engineer team from Siemens Building Division analyzes their energy potentials based on energy consumptions of three typical types of buildings in Guangzhou. Results show that energy saving measures recommended in this report are economically viable in practice, delivering payback period of 3~4 years and energy savings of 11 to 24 percent (which vary with the breadth and depth of implementation of the measures).

Some large department store in Guangzhou This department store was built in 2004, with a gross floor space of 50,000 square meters and annual power consumption of about 15 million kWh – about RMB14 million electric power expenses.

Through analysis of energy consumption of the building, Siemens Building Division’s engineers get investment payback data of respective energy saving measures. The conclusion is that, RMB8 million investments in energy saving renovation of the building can be recovered in about 2.6 years. Where, the first five measures are included in the 8 recommended measures.

Energy-saving lamps

Building control system

High-efficiencywater pumps

Energy-saving membrane stuck to glass curtain wall

Lighting control system

Energy-savingescalators

Elevator energyfeedback technology

Total

Total investment (in thousand RMB)

Energy audit of three typical buildings in Guangzhou

Annual power expense (in thousand RMB)

Payback period (in year)Energy saving rate

Annual power saving (kWh)

Ozone laundrytechnology

Energy-savinglamps

Solar hotwater system

High-efficiencywater pumps

Energy-savingmembrane stuck

to external window

Heat pump hotwater system

Elevator energy feedback technology

Total

This large hotel was built in 2008, with a gross floor space of 10,000 square meters, annual power consumption of about 16 million kWh – electric power expenses of about RMB15 million, and gas consumption of 720,000 million cubic meters – expenditures of about RMB2 million. Through analysis of energy consumption of the building, Siemens Building Division’s engineers get investment payback data of respective energy saving measures. The conclusion is that, RMB7 million investments in energy saving renovation of the building can be recovered in about 3.2 years. Where, the first five measures are included in the 8 recommended measures.

Total investment(in thousand RMB)

Annual power saving (kWh)

Annual power expense(in thousand RMB)

Annual gas consumption saving(in thousand cubic meters)

Annual energy consumption expendi-ture saving (in thousand RMB)

Payback period (in year) Energy saving rate

Building

Building control system

Energy-saving lamps

Lighting control system

High-efficiency water pumps

Heat pump hot water system

Fan coiler energy-saving system

Total

This large office building was built in 1996, with a gross floor space of 23,000 square meters, annual power consumption of about 4 million kWh – electric power expenses of about RMB4 million, and diesel consumption of 24,000 million cubic meters – expenditures of about RMB150,000. Through analysis of energy consumption of the building, Siemens Building Division’s engineers get investment payback data of respective energy saving measures. The conclusion is that, RMB2 million investments in energy saving upgrading of the building can be recovered in about 3.5 years. Where, the first five measures are included in the 8 recommended measures.

Total investment(in thousand RMB)

Annual power saving (kWh)

Annual diesel consumption saving (L)

Annual energy consumptionexpenditure saving(in thousand RMB)

Payback period (in year)Energy saving rate

Tasks of the mobility sector are not only to accommodate the most basic needs of city residents for mobility (including accessibility, convenience and safety), but also to address the growing requirements of comfort and sustainability (including boost of energy efficiency and reduction of exhaust emissions and noise pollution) with improvement of level of economic development. According to the comparison between developing and developed countries, energy consumptions of urban mobility in most developing countries rise rapidly. In addition to driving of economic growth, the main causes also include growth of disorder motorized mobility, low fuel efficiency standards and implementation and limited road resources. Yet cities in developed countries have mostly established transport-oriented urban planning, including protection of the zero-emission mobility pattern (for example:

demand of cyclists and pedestrians are taken into consideration in traffic layout), construction of public transport infrastructure, incentives to boost their utilization, and governments’ vigorous promotion of sustainable mobility. Therefore, Guangzhou municipal government is expected to take the “3 Renovations” program as an opportunity to solve energy saving in the overall response to mobility in Guangzhou, developing a comprehensive mobility plan that can accommodate the needs of multi-level mobility, coordinating traffic demands at all levels and addressing higher level demand of sustainable development. Sustainable mobility development requires coordinating and solving energy saving and traffic congestion and other problems. In this study, various means that could be adopted by the government to achieve sustainable development of mobility are

analyzed in an all-round manner, including: 1) development and allocation of road resources (to be specific, including: building new roads to improve road accessibility and continuity; optimizing allocation of existing ground road resources by vigorously promoting the strategy of “mass transit prioritization”; expanding underground mobility and space); 2) control over traffic demand (to be specific, including: regulating traffic flows, such as congestion charges, traffic control, etc.; reducing unnecessary traffic demand, for example, using modern facilities such as online banking, online platform for government work, etc.; and restricting excessive growth of the number of vehicles); 3) improvement based on monomer vehicles (to be specific, including: promoting economically-sized models; improving vehicle fuel efficiency; substituting clean power vehicles for traditional fuel vehicles); and 4) promotion

Mobility

Mobility

of public support for sustainable development of mobility. On this basis, this study suggests that, deployments of the means of 3) and 4) are largely based on evolution of national and local policies, thus delivering more remarkable technical routes and significance. Besides, in analysis of the means of 1) and 2), it can be seen that, public rail transit, intelligent mobility system and parking management system, the three technical measures featuring a relatively high correlation and significance to energy saving and improvement of traffic congestion, should be vigorously promoted in Guangzhou to better allocate road resources, promote the strategy of “mass transit prioritization” and effectively control traffic demand. Meanwhile, during the research, local cases (such as development of Bus Rapid Transit (BRT) and preparation of the Rail Transit Planning 2011-2040)

have shown the determination of the Guangzhou municipal government to address this issue by vigorously promoting the strategy of “mass transit prioritization”. Improvement measures analyzed in detail and strongly recommended in this report are all powerful means to push forward this fundamental strategy. Besides, analysis of mobility purposes of local residents based on local data also shows that, the three key improvement measures mentioned in this study – public rail transit, intelligent mobility system and parking management system – can effectively promote the transformation of traffic pattern from being private-based into being public-oriented. In selection of the finalized measures, BRT and the popular electric vehicle technology are assessed in this report. After experts’ scoring and review, three mature technical measures most significant to energy saving

in mobility and further sustainable development of mobility in Guangzhou are selected and recommended for local application. They are public rail transit (including metro, light rail and tram), intelligent traffic system and parking management system. Electric vehicles are not included in the finalized measures due to immaturity of this technology and barriers to universal deployment (battery technology, endurance, charging facilities, energy supply, etc.). Therefore it can be foreseen that electric vehicles would deliver a low popularity in Guangzhou and a limited room for energy saving by 2020. Moreover, electric cars are private mobility, thus playing less important role in improving traffic conditions, in particular road traffic conditions, in Guangzhou as compared with the three public transport measures analyzed in this study. Due to constraints of currently available

technical means, energy saving technologies for cargo transportation are not analyzed much in this report. Through discussions with experts, it is suggested that strengthening administration over the logistics industry should be the government’s top priority to improve energy efficiency of road cargo transportation. The government is advised to strengthen supervision over logistics companies in the following main areas: (i) upgrading vehicle technologies; (ii) enforcing weed-out of energy-demanding vehicles; (iii) strengthening the monitoring system for and scheduling of commercial vehicles (deployment of intelligent mobility system and coordination of inter-city management, etc.); and (iv) reasonably laying out logistics distribution centers. Currently, with the state-of-the-art technologies from Siemens, existing rail transits (such as metros, lines connecting to airports and regional trains, etc.) could achieve intra-city check-in services and remote baggage check-in between urban transport hubs (such as airport – airport, airport – railway station). Passengers can access baggage check-in at any check-in station between railway station and airport covered in the system and pick up their baggage at the airport or designated station at their arrival. This eliminates passengers’ inconvenience to carry luggage as transferring between urban transport hubs and replaces unnecessary separate transport with centralized transport, and reduces waiting time at Security Check of luggage at the airport. This report also makes reference study of many international cases and best practices and provides specific measures adapted to the Guangzhou city.

Public rail transit Overview Public rail transit and BRT constitute urban mass rapid transit system. Based on differences in technical means and deployment regions, the system can be

subdivided into modern tram, light rail and metro. Their capacity in unit time and integrated costs of unit mileage take on increasing distribution. Different from BRT, they belong to more energy-efficient electric mobility technologies. Description and applicability Generally underground, metro occupies few road resources but delivers great carrying capacity. It can greatly reduce traffic flow on roads and improve road traffic conditions. Therefore metro has become the primary way of addressing mass mobility in most international cities. The Guangzhou Rail Transit Plan 2011-2040 shows a blueprint of construction of metros in Guangzhou. According to the known program of future metro construction in international cities, metro mileage that would have been completed and put into operation in Guangzhou is expected to be among the world’s top three by 2020. Therefore, doubtlessly metro would become the most important energy-efficient and economical means of mobility securing public transport mobility in Guangzhou in the future. However, metro poses higher requirements of underground conditions and construction technologies and delivers a bigger investment scale and longer construction period. What’s more, expansion of the completed lines is generally difficult. Therefore metro just cannot solve all problems in urban public transport. By contrast, light rail is an effective means connecting main and trunk roads in urban core areas, making up for metro extension and capacity shortage, and linking district-level mobility in new towns (satellite towns, development zones) and central towns, thus it can serve as a reasonable complement and adaptation for the existing metro plan. Modern tram technology has greatly gone beyond the traditional tram. Based on the state-of-the-art technologies, modern tram can achieve 100 percent low floor, which means it does not need a special platform as metro or light rail does, and it poses a lower

requirement of excavation and construction of road track. Free conversion between various energy supply methods (overhead lines, ground third rail and storage batteries) and convenient combination of various transport capacities (2~8 coach grouping) provide flexibility in practical application. Compared to conventional tram, modern tram features improved energy transfer efficiency and braking energy recovery technology, delivering 30 percent or more energy efficiency improvement. Besides, energy consumptions of traction power of light rail and metro is 20 to 30 percent (energy consumption of supportive equipment accounts for 70 percent), while modern tram’s main energy consumption is in the traction power, accounting for more than 60 percent of the total energy consumption. Therefore its investment efficiency (capital cost of unit capacity) and energy efficiency (energy consumption of unit capacity) are much higher than that of light rail and metro. The three rail-based rail transit technologies deliver higher energy efficiency than the traditional rubber tire technology-based BRT and electric buses, since the latter’s ground friction restrains their energy efficiency from overcoming technical bottlenecks. As far as environmental benefits are concerned, 98 percent of modern tram body materials are recyclable, thus reducing final waste discharge. With stepped-up utilization of renewable energy and clean energy in cities, modern tram has become the direction of development of urban public transport. Through future electrical energy conversion and effective connection with urban charging infrastructure, it provides a flexible and energy-efficient public transport paradigm. Although integrated construction costs of rail-based modern tram are twice of that of the traditional rubber tire technology-based BRT, its unit energy consumption is just 1/4 of that of the latter, and its service life is 4 to 5 times that of the latter – up to 30 years (in

Mobility

terms of the vehicle body. Service life of track can be as long as 100 years under normal maintenance). Besides, because of rapid development of automotive battery industry in China, technical breakthroughs and large-scale deployment of modern tram would likely appear in China. At present, in view of implementation of the “3 Renovations” program and planning and construction of the “Central Knowledge City” in Guangzhou, demonstration deployment of modern trams can be considered in new urban areas and qualified renewed old urban areas to highlight achievements in district renovation, connect key districts and provide energy-efficient public transport mobility. The latest Guangzhou Mobility Development Report 2009 released by Guangzhou Transport Planning Research Institute shows rapidly growing of the number of private cars, to-be-improved competitiveness of conventional buses, intensified road traffic supply-demand conflict, further expanded congested areas, metro rails with insufficient capacity, etc. Therefore, reasonable allocation, mutual complement and integrated utilization of the above public rail transport technology options could better fulfill the strategy of “mass transit prioritization” in Guangzhou. Analysis of energy saving potential The focus of the strategy of “mass transit prioritization” is to reduce the scattered and heavy-energy-consumption traffic flows caused by private cars. As reducing energy consumption of mobility, the strategy also plays a remarkable role in relieving road congestion and improving safety of road traffic for pedestrian and bicyclists. Accelerating deployment of mass rapid public rail transport technology can speed up realization of the goal of rail transit taking up 70 percent in all motorized mobility patterns by 2040. In estimation of energy saving potential, absolute value of variation of contribution to

mobility demand resulted from accelerating deployment of the measure is assumed to be 5 percent, that is, 5 percent of demand of private cars becomes accommodated by public rail transit. Thus estimate based on the top-down demand forecasting model shows that, by 2020, energy saving potential of the measure is 260,000 tons of standard coal, equivalent to 9 percent of the forecasted total energy consumption of passenger traffic in Guangzhou in 2020. Cost-benefit analysis According to desktop researches, integrated construction costs per unit mileage of metro is the highest among the three public rail transit technologies – about RMB400-700 million (for metro system with underground metro as the main part), 2-3 times of that of light rail and 10 times of modern tram. Metro also requires for higher costs of planning and supportive construction. Yet its large carrying capacity per unit time and release of road resources delivers remarkable technical benefits. Modern tram delivers the lowest unit construction costs, the most flexible deployment pattern (areas, energy supply, traffic grouping) and the most appropriateness to the medium-sized passenger transport in the new urban areas (that is, demand of one-way capacity is 3,000~15,000 passengers per hour) among the three technologies. As it involves relevant rail transport means’ construction scale, local conditions, specific technology selection and vehicle configuration, analysis of investment payback for this section needs to be further communicated with involved authorities and companies (such as Guangzhou Metro Corporation, etc.), thus it cannot be indicated in this report at this stage. However, experts from the research team in relevant fields are willing to provide further consulting program services and carry out pilot program cooperation provided that the Guangzhou municipal government has an interest in the

above technologies.

Intelligent mobility system Overview Intelligent mobility system plays an important role in monitoring traffic in real time, regulating traffic flows, dredging congestion and providing timely information to facilitate residents to better plan their travels. By function modules, the system can be divided into traffic information service system, traffic management system, public transport scheduling system, cargo transportation management system, vehicle control system, emergency rescue system and electronic toll system. By features, the system can be divided into information collection, processing, analysis and publication modules. By composition of the system, it largely includes central control subsystem and out-field monitoring and feedback subsystem. Description and applicability Intelligent mobility system, a real-time, accurate and efficient comprehensive mobility management system, plays a role in mobility management in an all-round manner through effectively integrating advanced information, communication, sensor, control and computer technologies. Normally operating intelligent mobility system could induce smooth traffic flows (people, vehicles, materials) through precisely commanding and scheduling mobility units and publishing timely and effective traffic information for transport users, so as to maximize the benefits of existing traffic spaces, facilities and resources. Status and potential of deployment of intelligent mobility system in Guangzhou obtained from interviews with experts: ● A certain number of information collection devices such as control sensors and cameras have been installed at main urban roads and major traffic nodes in Guangzhou. ● However, these road monitoring resources are scattered among various administration

subjects (such as traffic control department and traffic police department), with the lack of unified information management and utilization. Meanwhile, channels for publication of information on road conditions, with broadcast as the main channel, are just homogeneous. ● The currently used traffic information system, delivering relatively homogeneous functions, is mostly used in traffic signals, without such advantages as information integration and reuse. In the future, intelligent mobility system can play a role of dredging traffic flows and tapping potential of existing resources in the following aspects: ● Integrate and analyze various traffic information and publish the information in real time to provide better transport guidance for drivers: ● For private car drivers: use modern communication ways such as mobile phone SMS and websites to provide real-time road information and recommend best route/scheme for replacing private cars with public transport ● For public vehicle (such as bus, taxi) drivers: deliver proper vehicle fleet management and effective vehicle scheduling, make use of feedback of drivers of moving vehicles, and respond to emergencies in a timely manner ● Analyze and coordinate alignment between various mobility patterns in order to provide best advices on route choice and real-time guidance ● Develop the most effective solutions for road accidents and congestion based on timely information feedback and analysis, and circulate notice about accidents and congestion in a timely manner, while reporting to traffic police from the nearby for emergency response. Analysis of energy saving potential The focus of the strategy of “mass transit prioritization” is to reduce the scattered and heavy-energy-consumption traffic flows

caused by private cars. As reducing energy consumption of mobility, the strategy also plays a remarkable role in relieving road congestion and improving safety of road traffic for pedestrian and bicyclists. Accelerating deployment of intelligent mobility system technology can not only speed up realization of the goal of rail transit taking up 70 percent in all motorized mobility patterns by 2040, but also contribute to improvement of urban traffic flows. With selective application of implementation modules, intelligent mobility system can also improve cargo transportation efficiency. In estimation of energy saving potential, absolute value of variation of contribution to mobility demand resulted from accelerating deployment of the measure is assumed to be 1 percent, that is, 1 percent of demand of private cars becomes accommodated by public rail transit. Meanwhile, corresponding traffic flow improvement effect is 2 percent, thus a total of 3 percent energy saving potential is achieved. Thus estimate based on the top-down demand forecasting model shows that, by 2020, energy saving potential of the measure is 160,000 tons of standard coal, equivalent to 6 percent of the forecasted total energy consumption of passenger traffic in Guangzhou in 2020. Cost-benefit analysis Intelligent mobility systems with different functions and sizes vary significantly in costs, making it impossible to normalize.Main benefits of intelligent mobility system are reflected in strengthening road traffic safety, improving traffic quality of urban transport, reducing unnecessary traffic flows and enhancing integrated environmental quality and attractiveness of the city, most of which cannot be specifically quantified. This program provides Siemens’ actual investment in intelligent mobility systems that have been implemented in Berlin and local cities as reference by Guangzhou municipal government in decision-making.

Parking management system Overview Parking is a common problem going with rapid growth in the number of private cars in large cities. Parking costs include explicit costs – parking fees paid by users and hidden costs – parking lot (including road and underground parking lots) construction fees paid by all taxpayers, opportunity costs for occupation of road lands and social costs for responding to congestion and energy consumption caused by unnecessary traffic flows resulted from vehicles’ inefficient looking for parking spaces. Among them, hidden costs are often much higher than explicit costs but often ignored by administrators. Effective parking facilities and high-level parking management are important measures to reduce unnecessary road traffic flows and promote transformation of mobility pattern of city residents from private cars into public transport. Planning, construction and layout of parking facilities are not only to solve the “parking problem” in cities, but also to focus on diverting private car flows from the downtown area to the outside. Parking solutions recommended in this report including road parking guidance system and parking lot management system. The former, requiring effective linking with intelligent mobility system, can be classified as one of the subsystems of intelligent mobility system. The latter can be divided into the following major functional modules: integrated parking lot management and monitoring platform, parking payment and OSD system (including ticketless parking system) and intelligent license plate identification system. Description and applicability In the past few years, the issue of parking space management has been attracting higher and higher attention. Dynamic guidance indicator, such as the guidance indicator in North Netherlands, informs

Mobility

drivers of parking lot status and guides them to the nearest spare parking lot. Modern advanced technologies can provide automatic guidance system that helps drivers find the nearest parking space and parking monitoring system that helps drivers directly drive into parking lots without having to park for pay fees. The systems can not only save energy consumption of paper and charge system, but also effectively reduce energy consumption caused by congestion at the parking lot entrance and exit. As stated in the public notice to invite suggestions for the Regulations for Management of Construction of Parking Lots in Guangzhou by Guangzhou Municipal Mobility Commission in 2010, existing parking problems in Guangzhou are largely reflected in the following aspects: some residential areas (at night); public places such as administrative organizations, commercial organizations, hospitals, etc. (in the day); and comprehensive transport hubs. Currently, road congestion in downtown is serious in Guangzhou. Unnecessary traffic flows caused by vehicles parking on lanes or looking for parking spaces exacerbate the congestion. As the downtown area has a high density of building and tension in supply of land, the room for large-scale development of ordinary ground public parking lots is very limited. Construction of public parking lots just depends on governmental investment, subject to a big financing shortfall. According to media news in March 2010, at present, Guangzhou has only 600,000 parking spaces (of which only 20,000 three-dimensional parking spaces) and about 30 parking lots, leaving a shortfall of 500,000 parking spaces in terms of car ownership. Moreover, there are averagely 600 cars getting number plates everyday in Guangzhou, while only 110 parking spaces are increased each day. Presumably, short supply of parking spaces in urban areas

would exist in a long term. As for hardware improvement, according to governmental news in 2007, Guangzhou would allocate special funds RMB1 billion for construction of public parking lots in three years (2007~2010). The objective is to newly establish 50,000 parking spaces in urban areas (the 8 old districts) each year, delivering 150,000 new parking spaces by the end of July 2010. The Some Opinions Relevant to Encouraging Construction of Parking Lots released by General Office of Guangzhou Municipal People’s Government on June 2, 2009 encourages construction of supportive parking lots for metro transfer stations, supportive underground parking lots for qualified public green spaces, supportive public parking lots and mechanical three-dimensional parking lots. Guangzhou Metro Corporation indicated in an open interview that 15,000 new motor vehicle parking lots would be established at entrances/exits of Metro Line 1, 2, 3, 4, 5, 6 and 8 before 2012. Among them 4,000 parking spaces were expected to be completed before the Asian Games. As for charge management mechanism, with the lack of flexible adjustment, the current parking charges in Guangzhou could not reflect hidden costs behind the parking problems: (i) parking lot construction fees paid by all taxpayers; (ii) opportunity costs for occupation of road lands; and (iii) social costs for responding to congestion and energy consumption caused by unnecessary traffic flows resulted from vehicles’ inefficient looking for parking spaces. Analysis of energy saving potential The focus of the strategy of “mass transit prioritization” is to reduce the scattered and heavy-energy-consumption traffic flows caused by private cars. As reducing energy consumption of mobility, the strategy also plays a remarkable role in relieving road congestion and improving safety of road traffic for pedestrian and bicyclists.

Accelerating deployment of parking management system technology can not only speed up fulfillment of the goal of rail transit taking up 70 percent in all motorized mobility patterns by 2040, but also contribute to improvement of urban traffic flows. In estimation of energy saving potential, absolute value of variation of contribution to mobility demand resulted from accelerating deployment of the initiative (parking management) is assumed to be 0.5 percent, that is, 0.5 percent of demand of private cars becomes accommodated by public rail transit. Meanwhile, corresponding traffic flow improvement effect is 1.5 percent, thus a total of 2 percent energy saving potential is achieved. Thus estimate based on the top-down demand forecasting model shows that, by 2020, energy saving potential of the measure is 110,000 tons of standard coal, equivalent to 4 percent of the forecasted total energy consumption of passenger traffic in Guangzhou in 2020. Cost-benefit analysis Parking management systems with different functions and sizes vary significantly in costs, making it impossible to normalize. The measure delivers great environmental, commercial and social benefits. Environmental benefits lie in the advanced ticketless parking system that could save paper and wood as compared with the paper ticket system; commercial benefits include operating cost savings thanks to simplified operation procedures and increased parking revenue due to improved utilization of parking spaces; and social benefits include realization of driving into parking lots without parking, support of value-added services and enhanced public safety, most of which are difficult to be quantified. This program provides investment estimate based on projects that had been implemented by Siemens as reference by the Guangzhou municipal government.

Guangzhou has no condition for utilization of the most common renewable energy sources such as wind and solar energy in large scale. Utilization of wind energy is constrained by typhoons. Solar light and heat are affected by the lack of large tracts of open space for layout of collectors. Local buildings mostly use photovoltaic power. A possible way of using biomass energy in Guangzhou is garbage power. In addition, through review by local experts and scoring by the program team, three main energy-saving measures in the field of energy supply are selected: 1) upgrading/renovation of existing thermal power plants (including combination of nitrogen oxide pollution control in China’s 12th Five-Year Plan); 2) Gas-Steam Combined Cycle Power Plant (CCPP); and 3) upgrading/renovation of distribution network (including construction of smart grid pilots).

Upgrading/renovation of existing thermal power plants

Overview China’s power generation has been dominated by thermal power plants that consume much energy. Just coal-fired power plants consume 50 percent of total coal consumption in China. Thus it is very important to reduce losses, coal consumption and power generation costs in production processes at thermal power plants. In particular, close attention should be paid to low-efficiency units and high coal-consuming boilers at some of the old power plants. Description and applicability Main production processes at thermal power plants broadly consist of: fuel receipt and feeding, water treatment, pulverized coal preparation, boiler combustion and steam production and consumption, and steam turbine power generation, power transmission, etc. Effective technical and managerial means would achieve reasonable control over energy consumption during various processes and eliminate avoidable waste of energy during the production processes, so as to eventually realize efficiency

boost and energy conservation. Technical and managerial means for efficiency boost and energy conservation at thermal power plants include: improving steam turbine efficiency, enhancing boiler combustion efficiency, reducing power consumption, introducing VVVF, adding catalytic combustion agents, using regenerative burners, reusing condensed water, conducting energy saving renovation of steam piping system, optimizing wiring options and reducing grid loss rate. Guangzhou has more than ten major power companies in 2008. According to expert analysis, thermal power plants that have not entered retirement period can still be renovated to improve power generation efficiency. Analysis of energy saving potential According to expert seminars, some of the existing thermal power plants in Guangzhou have been or are being renovated, but some thermal power plants still need to be upgraded. It can be assumed that potential proportion of to-be-upgraded thermal power

Energy Supply

plants is about 40 percent. Proportions of enhancement of energy efficiency are different due to different technologies and means in renovation of existing thermal power plants in Guangzhou. For instance, probably 1 to 2 percent of enhancement of energy efficiency could be achieved in renovation of steam turbine through flow path renovation, gland sealing and gland sealing system renovation, low pressure rotor extended shaft renovation, oil shield renovation, turbine oil pollution prevention, unit vibration improvement, control system optimization, etc. Energy conversion efficiency can be assumed to be increased by 5 percent averagely after comprehensive renovation of boiler and application of VVVF and catalytic combustion agents, etc. Calculations show that upgrading/renovation of existing thermal power plants in Guangzhou would deliver 5.44 percent potential of energy efficiency boost as compared with the baseline. Cost-benefit analysis

Upgrading/renovation of thermal power plants for energy conservation and energy efficiency enhancement would be a systematic program. It is not to conserve energy simply by the meaning, but to save energy in a holistic manner, involving a range of supporting technologies, measures and policies. Given its complexity, relevance and feasibility, this report chooses only some typical scenarios for analysis of investment payback of some single technical improvement. Scenario: Renovation of brush steam seal of a typical 300MW steam turbine Description: This cost-benefit analysis is based on installation of a set of typical advanced steam seal parts, including concession steam seal part, concession brush seal, brush blade tip seal and advanced steam admission seal. Calculations show that renovation of brush steam seal of the steam turbine deliver a payback period of 1 year and ROI of 92 percent. CCPP Overview

CCPP, a mature clean commercial power generation equipment featuring high efficiency and low consumption, fast start and flexible modulation, has been attracting higher and higher attention and achieving development around the world. Description and applicability CCPP combines gas turbine cycle (Brayton cycle) with higher average endothermic temperature with steam turbine cycle (Rankine cycle) with lower average exothermic temperature and enables gas turbine’s waste heat to be heating source of steam turbine cycle, so as to achieve complement and improve heat utilization of the whole combined cycle – delivering a power generation efficiency of up to 45 to 58 percent. CCPP, boasting many advantages through integrating cleanness of gas and high efficiency of combined cycle, is regarded as one of the world’s most popular and practical power generation technologies. According to the overall trend of development in the future, proportion of CCPP in the world’s

Energy Supply

power systems would rapidly increase. For example, gas turbines and their CCPPs accounted for 45 percent in the newly installed 100 million kilowatts power generation equipment in U.S. in 1990s. CCPP currently used at power companies in Guangzhou delivers an installed capacity of 780,000 kilowatts and annual generating capacity of 2,492 terawatt hours. According to expert analysis, Guangzhou would increase proportion of CCPP in the future, yet the specific proportion needs to be determined based on Guangzhou’s overall energy planning in view of such problems as natural gas sources. Analysis of energy saving potential As a world’s leading technology, CCPP delivers an energy utilization efficiency of 45~58 percent normally, even up to 60 percent. In general, since its thermal power conversion efficiency is 15 percent higher than that of steam single cycle based power generation technology (at the same grade and with the same scale) with conventional boiler combustion, CCPP represents the direction of development of thermal power generation technologies. Here energy utilization efficiency is assumed to be 52 percent. Currently, CCPP contributes 10 percent to power generation in Guangzhou. Yet future increase of proportion of CCPP is determined by Guangzhou’s overall energy planning. It can be assumed that proportion of CCPP would be increased by 10 percent and contribute 20 percent to power generation in Guangzhou. Calculations show that a 10 percent increase of proportion of CCPP would achieve potential of energy efficiency enhancement of 8.16 percent as compared with the baseline.

Upgrading/renovation of distribution network (including construction of smart grid) Overview Smart grid, a revolution in the whole process of power industry, is of great

significance for protection of future energy security in Guangzhou. As combined with the “3 Renovations” program and construction of future new urban areas (for example, the Guangzhou Central Knowledge City), upgrading/renovation of regional distribution network is of most practical significance. Since transformer loss takes up more than 60 percent in grid loss, loss of all China’s transformers account for 4 percent or more in China’s total generating capacity. Therefore, reduction of energy consumption of transformers has become an important common concern of power consumers and enterprises. This report shows a sample of overall energy saving potential of renovation of distribution network through renovation of energy-saving transformers. Description and applicability Description Smart grid, built upon integrated, high-speed two-way communication network, achieves reliable, safe, economical, efficient and environmentally friendly grid through adopting advanced sensing and measurement technology, automatic digital equipment technology, grid components, control methods and decision-making support system technology. It is generally characterized by self-healing, rapid response to user demand, resistance against attacks, providing power quality satisfying needs of users in 21st century, allowing access of different forms of power generation and starting optimal and efficient operation of the power market and assets. Comprehensive smart grid system, a revolution in the whole process of the power industry, is designed to achieve IT-based, automatic, hierarchical and interacting management of the whole process including power generation, transmission, distribution, consumption, sales, grid grading and scheduling, integrated services, etc. It would reconstruct the information loop of grid, build new ways of user feedback, and promote the overall transformation of grid into energy-saving infrastructure. Renovation of LV & MV distribution power

network, an important part of renovation of smart grid system, largely includes renovation of substations, sub-section posts, feeder lines and transformers. Applicability Over nearly 30 years of rapid growth, Guangzhou urban grid has become China’s third largest urban grid. In 2008, in Guangzhou, capacity-load ratio of 220kV grid was 1.6, and capacity-load ratio of 110kV grid was 1.9. Obviously, the capacity-load ratios were lower, indicating that development of grid lagged behind load development and demand for electricity. One of the ways to address the problem is to choose 63MVA large capacity for newly constructed 110kV main transformers (with the exception of some special plots). In alignment with the principle of moderate oversupply in grid construction, three main transformers are considered for this batch of substation construction. From the perspective of energy saving, areas with large load of power consumption like Guangzhou need more substations, more outgoing intervals and more line corridors. The Strategic Plan for Creating an Internationally Advanced Power Supply Bureau by Guangzhou Power Supply Bureau identifies its strategic positioning of providing safe, reliable, high-quality and economical internationally advanced power supply for rapid development of Guangzhou, sets the strategic objective of growing into an internationally advanced power supply bureau by the end of 2011 through five-year unremitting efforts and pursuit of excellence, and defines the goal of achieving advanced international standards in the five aspects: safety in production, power supply reliability, grid supply capacity, quality service and costs of power supply. Distribution network is the basic support to realize these objectives. ● However, currently, there is shortage of land in the center area in Guangzhou city. Residents’ misunderstanding of construction of power facilities has resulted in serious lagged construction of substations. Burden

Energy Supply

rate of main transformers of various substations is expected to remain high during 2009~2011, which would restrict capability of the distribution network. It can be expected that transformer capacity increase would remain an important transitional means to ease the pressure of power supply for a long period of time in the future. ● Performance of switch cabinet directly affects safe operation of grid under high load. Gas filled cabinet delivers better safety and overall life cycle costs than air cabinet. ● Renovation of feeder lines should focus on simplifying the structure, optimizing the layout, achieving loop operation and conducting specific design for main users. ● Since transformer loss takes up more than 60 percent in grid loss, loss of all China’s transformers account for 4 percent or more in China’s total generating capacity. Therefore, reduction of energy consumption of transformers has become an important common concern of power consumers and enterprises. ● Transformer capacity choice, a comprehensive technical task, is related to such factors as load type and characteristics,

load rate, demand factor, power factor, no-load/load loss, power price, infrastructure investment, service life, depreciation, maintenance costs, etc. ● Total Cost of Ownership (TCO) issued by National Electrical Manufacturers Association (NEMA) is generally adopted as considering cost-performance ratio of transformers, thus primarily analyzing equipment costs, no-load/load loss and relevant costs. Analysis of energy saving potential Since transformer loss takes up more than 60 percent in grid loss, loss of all China’s transformers account for 4 percent or more in China’s total generating capacity. Therefore, reduction of energy consumption of transformers has become an important common concern of power consumers and enterprises. Energy saving potential of the measure is calculated on the assumption that deployment of energy-saving transformers can reduce transformer loss caused by existing energy-demanding transformers in loss of transmission and distribution network by 50 percent. Calculations show that energy

saving potential of implementing high-efficiency transformer technologies is about 9 tons of standard coal as compared with the baseline in 2008, equivalent to 3 percent improvement of efficiency of coal-power conversion.

Cost-benefit analysis Through total life cycle cost analysis, it can be seen that, in transformer’s total life cycle utilization costs, first acquisition cost takes only 20 percent or so, while about 70 percent of the costs lies in load loss and no-load loss caused by efficiency difference of the transformer, which is closely related to energy efficiency of the transformer. Case study in which energy-efficient power transmission transformer featuring Siemens technologies is compared with ordinary transformer shows that energy-efficient transformer featuring supporting distribution automatic auxiliary equipment delivers a total working life three years more than that of ordinary transformer and a Investment payback period of 9 years (8~10 years averagely).

Hydropower In consideration of such factors as distribution of resources, conditions for development and utilization, economic development, power market demand, etc., Guangzhou is suggested to develop 30,000-kilowatt-and-above hydropower resources in such areas as Zengcheng, Conghua, etc. The main task of developing small hydropower stations is to strengthen maintenance, management, upgrading and renovation of small hydropower stations to further tap their development potentials. Wind power Guangzhou is advised to develop demonstration-based wind power, focusing on wind power manufacturing, developing and constructing wind farms and promoting wind power technical progress and industrial development, so as to expand capacity of manufacturing of wind turbines and supporting equipment and enhance the wind power industry.

New energy and renewable energy – from the Guangzhou New Energy and Renewable Energy Development Plan 2008-2020

Biomass energy In view of status of biomass energy utilization technologies and needs of economic and social development, Guangzhou is expected to focus on development of biomass (waste) power generation, biogas, sewage, sludge, biomass solid forming fuels, biomass liquid fuels, etc.

Industrial VSD system Overview Industrial variable speed drive (VSD) system can be used for mechanically controlled fans, pumps, compressors and motors often at a low load rate. The main function of VSD system is to make electric drive equipment operate at an adjustable rotating speed in accurate alignment with the load requirements, thus ensuring that electric energy used by the equipment is proportional to corresponding load, so as to effectively save energy. Description and applicability Local V/F controlled and voltage space vector controlled drives, which have been largely applied in industry in Guangzhou, are mostly used in loads requiring lower speed governing accuracy and dynamic performance. Meanwhile, advanced international vector controlled drives have also been widely used. Guangzhou Municipal Economic and Trade Commission has been working with involved departments on development, promotion and deployment of drive technologies, providing major support in terms of technology development and technical renovation and organizing exchanges on technologies of energy saving of production equipment at

enterprises. Analysis of energy saving potential Substituting VSD for constant-speed drive system enabled Guangzhou’s total industrial energy consumption in 2008 to decrease by approximately 325,000 tons of standard coal (-3 percent). Cost-benefit analysis Adjustment of flow based on demand would deliver a maximum energy saving of 70 percent and an investment payback period of less than 2 years. Siemens SinaSave® software can accurately calculate plants’ energy saving potential and investment payback period.

Industrial high-efficiency motor Overview Industrial motor, an equipment providing power, can converse electricity into mechanical power. Motors can not only help save energy for industrial users, but also greatly improve reliability of operation and reduce maintenance costs. Industrial motors of each specification provide two (high and low) tranches of efficiency indicators. Motor with an efficiency lower than the indicator is known as Eff3 motor, between the low and high indicators as Eff2 motor, and higher than

the indicator as Eff1 Motor. Generally, Eff3 motor is referred to as low efficiency motor, Eff2 motor as improved efficiency motor and Eff1 motor as high efficiency motor. Description and applicability Over the past decade, the Chinese government is committed to promotion of high-efficiency motor technologies, with motors introduced by all walks of life for speed governing to some extent. Currently, a large number of EFF1 and EFF2 motors and a moderate amount of EFF3 motors have been applied in industry in Guangzhou. Comparison between distribution of industrial sectors and sectors suitable for high-efficiency motors shows that extensive use of major energy saving equipment like high-efficiency motors is feasible in Guangzhou. Analysis of energy saving potential Large-scale substituting high-efficiency motors for ordinary motors enabled Guangzhou’s total industrial energy consumption in 2008 to decrease by approximately 70,000 tons of standard coal (-1 percent). Cost-benefit analysis If the total sum of rated power of motors at a plant is X kW, equivalent work time of the

Industry

motors is 8,000 hours per year, efficiency of high-efficiency motors is 97 percent, efficiency of to-be-replaced ordinary motors is 94 percent and 85 percent respectively, and power price is P, the simple pervasive formula is as follows: X (KWh) x 8,000hx (97 percent – 94 percent) x P = annual total electricity cost savings Or X (KWh) x 8,000hx (97 percent – 85 percent) x P = annual total electricity cost savings

Waste heat recovery and cogeneration Overview Waste heat energy means energy not being used in energy utilization equipment in certain economic and technical conditions. It can also be identified as redundant or waste energy. It has seven categories, that is, waste heat of high-temperature exhaust gas, cooling medium, waste steam & water, high-temperature & slag, chemical reaction, combustible waste gas & water and high-pressure fluid. Applicability Waste heat recovery technology can be used in various industries. Deployment rate of this technology in China’s large and medium-sized enterprises is over 85 percent, which requires

a total investment of about RMB20~30 million and delivers total energy savings of 444,100 tons of standard coal per year (estimation based on medium capacity). As China has been promoting waste heat recovery technology in industries, Guangzhou has a great energy saving potential in the above mentioned major energy-consuming industries. For instance, in non-ferrous industry, smelting high-temperature flue gas waste heat loss takes up a large proportion. Installation rate of non-ferrous system waste heat boiler is low. Enterprises with supporting waste heat power plants are even less. Level of waste heat utilization is low. According to surveys, total waste heat resources of all sectors account for 17~67 percent of their total fuel consumption, and recyclable waste heat resources take up about 60 percent of the total waste heat resources. Energy saving potential and cost-benefit analysis Total energy consumption of larger enterprises in the top ten energy-demanding industries in Guangzhou in 2008 was 12.3 million tons of standard coal. Total waste heat resources of all sectors took up roughly 40 percent of total fuel consumption, and recyclable waste heat

resources accounted for approximately 60 percent of total waste heat resources. Recyclable waste heat resources in larger enterprises took up 20 percent in the total recyclable waste heat resources. The number of larger enterprises in the top ten industries was 4,683, among which 1,154 had waste heat resources. Investment in single waste heat recovery equipment is RMB3 million averagely. Based on the number of larger enterprises that would use the technology, total investment could be calculated as RMB3.462 billion. Waste heat recovery could save energy of 810,000 tons of standard coal, equivalent to energy saving benefits of RMB567 million based on unit value. Corresponding investment payback period is 6 years. Suggestions ● Projects of smelting flue gas heat recovery and cogeneration are advised to be simultaneously set up and implemented. ● CHP can be taken into consideration in use of waste heat to improve efficiency of utilization of waste heat. ● Larger enterprises can be encouraged to work on cogeneration in alignment with their own industry and process characteristics.

Industry

Overview of “3 Renovations” Currently, Guangzhou municipal government is making efforts to promote renewal of old towns, old villages and old plants to mend its pace in building Guangzhou into a modern livable city and one of China’s central cities. Land included in the “3 Renovations” is expected to be up to 370 square kilometers. With progress of the “3 Renovations”, new functional areas – business, office, tourism, culture, etc. – will certainly emerge in Guangzhou, which would bring new vitality to Guangzhou while also increasing the needs for energy. The Guangzhou municipal government is suggested to consider not only the above mentioned energy saving measures in building, mobility, industry and energy supply but also district-level energy saving measures to build old urban areas into sustainable “green zones” as planning and constructing the to-be-renewed areas.

Overview of District-Level Energy Saving Measures Through follow-up study of worldwide advanced technologies and cases, experts of

the program team selects 8 district-level energy saving measures the most likely to be implemented in Guangzhou, as is shown in the following figure:

Description of District-Level Energy Saving Measures Urban regional planning simulation technology Deployment of simulation technology in urban regional planning satisfies the requirement of scientific planning of

sustainable cities to a great extent. Simulation technology includes three types: Earth wind and wind field simulation, regional sunshine environment simulation and regional noise environment simulation. Building energy monitoring system Building energy monitoring system realizes monitoring over energy consumption of buildings within the region by detecting energy consumption of such equipment as air conditioning, lighting, water supply, etc. with Modbus multi-functional instrumentation and

Proposed District-Level Energy Saving Measures

5

Green zones

Urban regional planning simulation technology

Buildings

Building energy monitoring system

Parking management system

Tram

District cooling

High-efficiency regional lighting

Regional energy management center

12

3

4

7

86

Mobility

Planning

Energy

High-efficiency regional distribution network

transmitting information to the control center via Ethernet or Modbus TCP. It also achieves coordination of and centralized control over energy consumption and energy supply through connection with regional energy management center via OPC. District cooling District cooling has such advantages as low energy consumption, small footprint, cold source that is easy to be optimized, controlled and maintained, ease of using natural cold source and cold accumulation technology, ease of reducing pollution emissions, etc. According to expert seminars, in view of some past less successful cases, the Guangzhou municipal government is expected to be careful in large-scale promotion of this technology, in particular, to conduct in-depth analysis and calculations in alignment with field conditions and environment in program design. High-efficiency regional lighting Replacing traditional high pressure sodium lamps with ceramic metal halide lamps and LED could save energy of up to 40~80 percent. However, because the latter are more expensive, the government may consider the mode of energy performance

contracting to achieve “win-win” between the government, manufacturers and financial companies with the power of industry and market. High-efficiency regional distribution network Guangzhou Power Supply Bureau has set the 2008~2011 target: The bureau would deliver a reliability rate of power supply of 99.97 percent or more by 2011. The bureau has also drawn up main measures to strengthen comprehensive power cut scheme management and capacity management. Technical improvements in the four fields could help the bureau achieve the goals: renovating substations and switching stations, transformers and feeder lines and comprehensively promoting construction of automatic distribution network. Regional energy management center Looking to the future, this report proposes to establish a comprehensive energy management center in the pilot urban areas to help new urban areas become intelligent energy-saving models after the “3 Renovations”. The short-term goal may be to achieve whole-course monitoring from distributed energy generation to energy

utilization. The long-term goal may be to realize monitoring and control over micro grid, especially the energy use side, and provide centralized demand side management services for grid companies during peak demand period. Parking management system Comprehensive parking guidance and management system, alignment between parking plots and public transport interchange system, parking space detection system, vehicle image comparison, identification system and road parking plot charge facilities, etc. could effectively help traffic management department and parking lot owners to strengthen management, ease traffic flows and reduce energy consumption. Tram As compared with BRT system, light rail and metro, modern tram features higher energy efficiency ratio of passenger transport within the range of passenger capacity (3,000-15,000 passengers per hour) and less investment. Modern tram is recommended for demonstration utilization in the to-be-renewed urban areas to facilitate residents’ faster mobility and highlight the unique charm of the renewed urban areas.

Background Implementation of technical improvements needs support of appropriate policies. Even in most cases, reasonable policies are far more effective than technologies. That’s why this Five Actions for Sustainable Development of Guangzhou is developed based on advanced experience of international cities and organizations. Covering policy options in various aspects in government’s promotion of sustainable development of Guangzhou, this manual is designed to provide basis for decision making and examples for reference by the Guangzhou municipal government in formulation of relevant policies. Focus of the manual is to arouse individuals’ and enterprises’ positive response to and practical action for sustainable development through effective policies and mechanisms developed by the Guangzhou municipal government. Policy measures introduced here can either be immediately applied within the city or firstly piloted in a certain urban area before being popularized across the city.

Definition of the Five Actions The Five Actions for Sustainable Development refer to: (i) improve the overall operation and administration of the city through establishing and issuing plans and Code of Conduct for sustainable urban development, so as to direct residents to sustainable lifestyles; (ii) actively invest in and apply energy saving technologies in construction of urban infrastructure; (iii) promote the concept of sustainable development and relevant skills through educating the public on how to take actions for sustainable development; (iv) establish economic incentives to attract individuals and enterprises to take the initiative to join the cause of sustainable development; and (v) set up and control objectives of sustainable development KPI management to fulfill actions for sustainable urban development through combination of policies, regulations and technologies.

Description of the Five Actions Each action is elaborated in special sections.

Each elaboration consists of two parts: (1) basic principle of the action; and (2) specific proposals on policy options.

Case study Each proposal on policy options is based on successful experience of international cities and organizations, thus explained with detailed case study accordingly. The explanations include original status and data of the case samples and targeted suggestions for Guangzhou to draw the experience. To be specific, they include: description of contents of the policies that have been implemented, results of implementation of the policies (energy and cost savings, etc.), suggestions for their application in Guangzhou and profile of the cities (home country, population, area, population density, income, etc.). In this study, a total of 10 representative policy measures are selected to promote sustainable development. They involve 9 different international cities and

Five Sustainable Actions – Policy Options

organizations, as well as a Collection of Regional Energy-Saving Technical Measures for “Guangzhou Green Blocks” specially prepared for district-level renewal under the requirement of the “3 Renovations” program in Guangzhou. International cities and international organizations as samples and their specific policies include: Salt Lake City, U.S., Sustainable Community Norms developed on the basis of the Urban Land Use Norms Graz, Austria, Green Streetlamp Program to promote LED energy-saving lamps by application of energy performance contracting New York, U.S., Green Big Building Program to enforce energy saving improvement for large governmental and public buildings San Francisco, U.S., Car Sharing Program co-launched with other cities under coordination and management of non-profit organizations Paris, France, Bicycle Sharing Program combined with online booking, in which the municipal government invests 20,000 bicycles at 1,500 automatic parking lots Department of Energy, U.S., “energy saver” website, a comprehensive platform for release of energy

saving information EU, European Energy Cup, a competition of energy saving among office buildings California, U.S., Appliance Cash Reward Program, for promotion of new energy-saving appliances through updating and weeding out old appliances Sheffield, Britain, Program for Free Parking of Energy-Efficient Cars for promotion of new energy vehicles

X. Conclusion

X. Conclusion

Energy efficiency improvement is not only an effective measure to address challenges of sustainable development in Guangzhou, but also the top priority in achieving the goal of building Guangzhou into the “Preeminent City” of Guangdong Province and one of the “Central Cities” of China. Promotion of energy saving measures can bring Guangzhou economic, environmental and social benefits. Guangzhou Institute of Energy and Siemens hope to help the Guangzhou municipal government stay ahead in sustainable development with suggestions in this report.

For further information on this program and complete report, please contact: ● Mr. Wu Hong, Guangzhou Municipal Development and Reform Commission ● Mr. Nong Keqiang, Siemens (keqiang.nong@siemens.com) ● Ms. Zhao Daiqing, Guangzhou Institute of Energy (zhaodq@ms.giec.ac.cn)

Appendix 1: 17 Energy Saving Measures

Technical measure Energy savings in 2020 Energy saving ratio in 2020

Total investment as of 2020 for reference

Ratio of investment to energy saving

Annual average ROI Payback period

Building envelope

BAS

Energy-saving lamps

Temperature/humidity independent control technology

Lighting automation system

High-efficiency pumps and fans

Solar water heaters

Improvement measures in building field

Public rail transport

Intelligent mobility system

Parking management system

Improvement measures in mobility field

Heat pumps

Technical measure Cases and assumptionsEnergy savings in 2020 Energy saving ratio in 2020

Total investment as of 2020 for reference

Ratio of investment to energy saving

A complete set of medium-sized parking lot management system needs investment of about RMB10 million. Estimation is conducted under the assumption that averagely 2 sets of the system are established for each district in the existing 12 districts in Guangzhou

Upgrading/renovation of existing thermal power plants

CCPP

Upgrading/renovation of distribution network (including potential applications of smart grid)

Industrial VSD system

Waste heat recovery and heat exchange technology

Building energy monitoring system

Regional planning simulation technology

Centralized regional cooling

High-efficiency regional distribution network

Energy-efficient regional lighting

Regional energy management center

Parking solutions

Modern tram

High-efficiency motor

Source lists

Appendix 2: Data Source

Appendix 2: Data Source

Mobility

Mobility

Energy

Appendix 2: Data Source

Energy

Industry

District-level energy saving measures for the “3 Renovations”: analyzed data come mainly from utilization

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