23 December 2016
A smart and sustainable Zuidas
The potential of smart energy systems in office buildings at the Zuidas
Supervisor and tutor Astrid Ruiter
Rutger Tiesma
Business administration
10772995
Carmen Kistemaker Spatial planning
10730974
Mees Kuiper
Spatial planning
10784381
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Words : 7400
2
Content
1. Introduction
3
2.Theoretical framework
2.1 Smart systems
2.1.1 Smart infrastructure
2.1.2 From data to information
2.2 Potential values of smart energy innovations
2.2.1 Corporate Social Responsibility
2.2.2 Competitive advantage
2.2.3 Eco-labelling, environmental design and life-cycle analysis
2.3 Implementation of smart systems
2.3.1 Public-private partnerships
2.3.2 Technology valley of death
3. Methodology
3.1 Boundaries of this research
3.2 Justification
3.3 Representation research
3.4 Sub questions
3.5 Sources of knowledge
3.6 Relevance and common ground
3.6.1 Organisation and rearranging sub-systems
3.6.2 Creating a continuum of meaning
4. Results
14
4.1 The possibilities for making the data gathered by the system more
accessible for stakeholders and policy makers
3
4.2 The motivation for businesses to invest in smart energy applications,
and the opportunities and threats for implementation
4.2.1 The opportunities of implementing smart energy applications
4.2.2 The threats: other more profitable options and lack of collaboration
4.3 The external stakeholders’ interests and or objections for implementing smart
energy systems
4.4 The restrictive or stimulating means in the existing legislation and policies in this
(possible) transition?
4.4.1 Stimulating means
4.4.2 Restrictive means
4.4.3 Transition
5. Conclusion
18
6. Discussion
19
7. References
20
8. Appendix
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8.1 Interview with Maarten van Casteren, municipality of Amsterdam
8.2 Interview with employee community society
8.3 Interview with Ron Bakker, CEO PLP Architecture
8.4 Interview with Jaak Vlasveld, CEO GreenIT
5
1. Introduction
The world faces an important and urgent task in achieving a more sustainable way of living.
In recent years cleaner and more efficient technologies have emerged. However, it is
necessary that these energy efficient technologies will be adopted on larger scale. Energy
efficiency in combination with policies serving to tighten the existing energy efficiency
standards, encourage greater adoption of energy-efficient equipment, and help to push
energy-efficient innovations (International Energy Agency, 2015).
Cities play a critical role in the transition towards a more sustainable world, since
they approximately account for 80% of the world’s greenhouse gas emissions (Hoornweg, et
al., 2011). Hence, in The Netherlands is there a role for Amsterdam to facilitate in achieving
the national sustainability targets. The goal of the municipality of Amsterdam is to decrease
the CO2-emission with 45% in 2025 with reference to 2012 (Gemeente Amsterdam, 2013).
One of the measures to reach their targets is to increase the energy efficiency (Gemeente
Amsterdam, 2013). However, it might be challenging to reach those energy efficiency
targets, as they require comprehensive cooperation between a wide variety of stakeholders.
“There is a critical need for integrated comprehensive city planning, focussed on
ex-ante cost-benefit assessment and using energy systems models toward urban sustainable
energy use” (Gouveia
et al.
, 2016, p. 345). This statement clearly represents an
interdisciplinary approach on the subject of sustainable energy use, as it acknowledges the
need for a focus from the perspective of city planning as well as that of cost-benefit
assessment and energy system modelling. The latter, referring to advanced metering systems
that provide data on energy use in order to increase energy efficiency (Gouveia
et al.
, 2016),
is closely related to the subject of artificial intelligence.
Buildings approximately consume 40% of the world’s total energy (Lawrence
et al
,
2016). Large office complexes are examples of buildings with a large combined electrical
demand. In agreement with Lawrence
et al
. (2016), these largely energy consuming
buildings are eligible for smart energy systems, based on data streams. According to Ahmad
et al.
(2016) gathering data on energy or environmental performance of buildings is crucial
6
to enhance energy efficiency and to reduce energy use in buildings. This can give
stakeholders valuable information about how buildings are performing and this information
could be used to increase energy performance (Ahmed
et al.
, 2016). An example of this
principle is the
Philips Connected Office Lighting
System (Philips, 2015). This system makes
it possible for employees in office buildings to personalize their working space using a
smartphone app. It also offers facility managers real-time information collected by sensors
about temperature, lighting intensity, humidity and motion (Philips, 2015). This information
could be used to increase the internal energy efficiency by for example raising the energy
grid prices in times of high demand. This generates an incentive to reduce energy
consumption (Borth & Hendriks, 2016).
This research discusses the potential of smart energy systems to be applicable and
upscalable in office buildings at the Zuidas, to make them more energy efficient. The aim of
this report is to consider the opportunities for smart infrastructure, such as smart grids and
electric chargers, for the Zuidas. Therefore, it is necessary to identify what the status quo is,
and what the future scenario for 2025 is. To answer these questions, several sub-questions
should be considered.
Initially, this research will discuss the possibilities for making the data gathered by
the system more accessible and understandable for stakeholders and policymakers in order
to anticipate and react to the information. Second, it will be questioned what attracts
(businesses) to invest in smart energy applications, and what the opportunities and threats
are for implementation. Third, the other stakeholders’ interests and moral objections will be
studied, together with the restrictive and stimulating means in this transition. Finally,
enough information and insights will be gathered in order to discuss the potential of smart
energy systems at the Zuidas, in terms of the required smart infrastructure and restrictive or
stimulating policies.
Key concepts will be discussed in the next section, which elaborates on the theoretical
framework. The second section discusses the methodology. Since this report contains a case
study, we needed information provided by experts on this subject. Therefore, interviews are
7
used, aside from scientific literature. Finally, the before mentioned research questions are
being answered.
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2. Theoretical Framework
The implementation of smart energy systems in office buildings involves a diverse set of
aspects. First, it requires insights from several disciplines in order to give a comprehensive
summary. Second, many different theories are applicable for more energy efficient buildings.
These theories need to be correctly defined in the way they relate to the research question.
2.1 Smart systems
Smart systems are adaptive systems set to recognize and adapt to their operational contexts
and configuration, as well as their situation (Borth & Hendriks, 2016). In smart buildings,
these systems are often required to cooperate, in a sense that for example a lighting system
that collects data on motion, can share these data to the heating, ventilation or air
conditioning systems (Borth & Hendriks, 2016). By measuring these data regularly, it is
possible to identify and adjust the system by deviation between energy consumption
predicted and the real value. Another function of this information is to make occupants
aware of their energy use at any time, and to encourage them to change their behaviour
(Moreno
et al.
, 2014). More detailed information about the functioning of smart energy
systems and figure 1 is given in the individual literature report
From Data to Information
(Hudig, 2016).
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Figure 1: Smart system applicable in buildings. Starting point in this system are the current climatic conditions, like temperature, humidity and light. IoT interconnected sensors measure these conditions regularly and send them to the DR system. The DR system can only process the data when they are clustered or sorted by algorithms. The DR has several functions: it can instruct the controller to adapt the data based on rules. It can also visualize the data by monitoring a building’s energy profile. This energy profile provides access to data for humans, such as users, businessmen and policy makers. They can give price incentives or create policies on energy efficiency. As shown in various articles mentioned before, recognizing certain patterns in energy consumption, either by machines or by humans, will help improving energy using behaviour and thereby shows the long-term return on investment for business owners. Source: Hudig, 2016.
2.1.1 Smart infrastructure
The before described theory on smart energy systems has a single-building scale, which
includes the generation, transmission and distribution of energy within one (office) building.
From this perspective, a building functions as its own smart grid in balancing local electricity
generation and demand. This is called an off-grid energy system (Akikur
et al
, 2013).
However, it might be necessary to scale up the smart infrastructure in order to increase the
energy efficiency over a complete district, or even a wider area. This can be achieved by
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connecting buildings to the (smart) electricity grid. Different scales could be observed in
figure 2.
A smart grid is a modernized electrical grid using digital data streams and
information to more efficiently produce, transmit and distribute electricity (Lawrence et al,
2016). Smart grids and smart buildings can use the digital data streams to become smarter
and to anticipate to and to act on the energy distribution and consumption (Lawrence et al,
2016). Smart energy systems in office buildings provide such digital data streams. Smart
grids are capable to manage the integration of renewable energy supply, and to manage peak
loads. The buildings’ management can use real-time information of smart meters and the
smart grid to manage peak demand by minimizing demand charges or adjust operations
based on the real-time energy price. (Lawrence et al, 2016).
Figure 2: The interaction of a smart grid and smart buildings in terms of energy and data flow. Two kinds of streams can be distinguished: the power flow, which contains the electricity, and the information flow, which contains the data. Various levels of operation are illustrated in this figure. This study focuses on the scale of
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building’s smart energy systems and the potential to scale up these smart energy systems by using smart grids. In this figure, an information flow between information systems and humans can be observed. Section 2.1.4 focuses on the gap between human interaction and control and information systems. Source: Lawrence et al, 2016.2.1.2 From data to information
In practice it generally is complicated to turn raw data into accessible information for users
(Frankenberg and Ludwigsdorf,
et al.
, 2015). A survey executed by Mohassel
et al.
(2014)
shows that advanced metering infrastructure needs improvement on the areas of
communication, data analysis and control schemes. This might be problematic, because
stakeholders, such as users, businesses and policymakers, need to understand information in
order to adapt their acting based on these data (Ahmad, 2016). However, smart environments
often fail to provide the data in an accessible, user-friendly way (Frankenberg and
Ludwigsdorf
et al.
, 2015).
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2.2 Potential values of smart energy innovations
2.2.1 Corporate Social Responsibility
It is important for companies to establish an evident definition of what they mean by
environmental issues in order to make sufficient policies. These are depending on the
context. Several programs are actively involved in creating benefits for companies.
One term often used is corporate social responsibility (CSR). This strategic
reorientation relates the financial interest together with the other stakeholder’s interest in
the firm. The relationship between CSR and the firm’s strategic interest was created through
the introduction of the five dimensions of strategic CSR, which includes: centrality,
specificity, proactivity, voluntarism and visibility (Burke & Logsdon, 1996). The specificity
and meaning of these dimensions can be derived from table 1. Value creation is the strategic
outcome of all the dimensions, and refers to the measurable stream of economic benefits.
However, a marginal comment on this subject is that in order to legitimately tackle
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environmental issues, businesses might have to shift their focus from maximising interests
and investments to environmental well-being.
Table 1: Examples of strategic benefits from socially responsible behaviour. Source: Burke, L., & Logsdon, J. M. (1996). How corporate social responsibility pays off. Long range planning, 29(4), 495-502.
2.2.2 Competitive advantage
Intangible assets
[1]that are emerge from ‘green’ businesses are valuable and extremely
difficult to imitate by other companies (Menguc & Ozanne, 2005). Especially big
conglomerates that integrate environmentalism, in their overall management and
marketing practices, can benefit from it (Menon & Mennon, 1997). This is something which
is called
competitive advantage
[2]. Miles et al. (1997) assess that environment-friendly
investment can ultimately support the competitive advantage within the complete company.
However, to recall on these intangible assets. The share of spending on such software
compared to spending on physical assets was tiny (Lev, 2006). Companies are inclined to do
this. It can provide the blur between the difference of market value and book value. One
consequence is the difficulty to finance research and development
(R&D)
investments. This
results in underinvestment in the intangible assets (Lev, 2006).
The concept of competitive advantage argues that not only the economic and
technological factors, but also cultural, behavioral and institutional factors should be taken
into consideration (Ndubusi et al., 2009). Therefore, it is important that its employees do not
see a transition towards green entrepreneurship as an annoying cost or an inevitable treat
(Ndubusi et al., 2009).
2.2.3 Eco-labelling, environmental design and life-cycle analysis
Moreover, green technology can be advantageous in reducing costs on the long-term (Porter
& van der Linde, 1995). To implement green technology tools in a framework the Total
1An asset that lacks physical substance, such as patens, franchises, goodwill, copyrights, brand name,
and software (Webster & Jensen, 2006).
2An competitive strategy that aims to establish a profitable and sustainable position against the forces
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Quality Environment Marketing
(TGEM)
can be used (Miles et al., 1997). Miles et al. (1997)
assess that three indicators of a company’s commitment to the environment are of
importance. Those three indicators are eco-labelling, environmental design and life-cycle
analysis. In the case of office buildings the first two indicators are strongly related and of
importance.
Eco-labelling provides a measure of the environmental performance, so for office
buildings in Europe the certificate BREAAM has been introduced (Burnett, 2007). The
performance is emphasised on the quality of management, operation and maintenance
practices (Burnett, 2007). Putting this into perspective, it might be concluded that new smart
energy innovations in existing buildings are of value when they improve the performance of
at least one of these aspects.
Eco-labelling, environmental design and life-cycle analysis are implemented in
McCarthy’s framework of the four P’s (Miles et al., 2007; Yudelson, 1999). The four P’s
indicate product, price, promotion and place. Companies intensively use this marketing mix
to simplify and adjust their present marketing activities for the customer (Blythe, 2009). This
method can also be applied to satisfy the other groups of stakeholders, such as the
government and the investors.
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2.3 Implementation of smart systems
The importance of data resulting from smart energy systems for energy reduction is
mentioned above, but it is also important to know the concepts and theories that have an
influence on the implementation of such smart systems. Within the literature of energy
systems for energy reduction different opinions do occur and lead to the use of various
frameworks. To digress, Nidumolu (2009) states that the more environment-friendly
companies become, the more they expect it will turn out in an increase of costs. Other
research also highlights that these innovations not instantly lead to profitability. However,
they assess that it could lead to profitability on the long-term.
According to Sartori
et al.
(2012) every problem is defined differently. Every project
has a group of actors involved from different disciplinary background and the arrangement
of these actors changes with time and place. Therefore it is important to look at the changing
context when addressing the success of a project. Furthermore, it is important to look at the
operating scale. For example, regulations and policies are differently interpreted and
assessed based on the scale (Annunziata et al., n.d). Both factors described above are
applicable for making buildings more sustainable. This is because there are often different
operating scales, national versus local policies. But also different actors are involved,
investors who want profit, business and the municipality.
2.3.1 Public-Private Partnerships
A key aspect of the changing context is the increasing number of public-private partnerships
(PPP’s) (Ke, et all., 2009). In a PPP governments and businesses bundle their powers and
resources to develop for example buildings. PPP’s are a key tool in the policy-making process
across the world. An advantage of such a PPP is that both stakeholder parties, such as the
government and the private sector, analyse the policy problems and together implement
solutions. Often one actor does not have the full capacities to deal with the interconnected
issues that arise in the policy field (Osborne, 2000).
However, a PPP is not always beneficial for policy making and this process can be
time-consuming and costly. The first reason for this is that it can be difficult in
decision-16
making to come to an overall conclusion or solution, because of the multiple actors being
involved in different disciplines. Another problem is that there is not always the will or the
power to act for a change. This is because certain values are institutionalized and these are
difficult to change (Rittel & Webber, 1973). So there is the possibility of loss of
decision-making control. Therefore, the value of PPP to successful energy efficiency policy outcomes
has to be considered (International Energy Agency, 2010). On the Zuidas, PPP’s are
cooperating in order to increase the sustainability, combining resources and knowledge in
order to come to more suitable conclusions (van Casteren, pers.comm., 2016).
2.3.2 Technology valley of death
The process from draft to implementation of technologies in the market is a long and
difficult process. Bürer and Wüstenhagen (2009) have conducted a research amongst capital
investors from different countries. One of their findings is that these investors prefer a
limited role of the government venture capital funds because of the lack of knowledge of the
government regarding the companies and the chosen technologies to invest in (Bürer and
Wüstenhagen (2009). This is contradicting with the PPP’s where these actors cooperate in
order to achieve a collective goal. The main problem of new innovations, such as smart
technology systems is the so called ‘technology valley of death’ (figure 3). This refers to the
gap between a working prototype and the full implementation in the market. One of the
causes of the difficulty of implementing smart energy systems is the underinvestment in
Research and Development (R&D) (Bürer and Wüstenhagen (2009). As figure 3 shows, an
increase in technology push factors could decrease is valley of death. A few of the push
factors include an increase of investment in R&D of private institutions, investment subsidies
for manufacturing facilities, grants to install new sustainable equipment.
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Figure 3: Technology ‘valley of death’ Source:Bürer and Wüstenhagen, 2009.
The resource based model identifies the specific bundle of resources as the key to
competitive advantage (Barney, 1991). The resources within this model are covered by
tangible and intangible assets. Lin et al. (2012) and Barney (1991) assess that the resource
must conform to the following four criteria. First, the resource must be valuable, which
means it is value creating, outperforming its competitors or reducing its own weaknesses.
Second, the resource must be rare, so it must implicate above average return on its price in
the future. The third principle is has to be inimitable and can be an advantage when other
companies are not able to duplicate the asset. Referring to the last principle, competitive
advantage of a resource will decrease when competitors are able to counter the resource with
a better substitute. So, for companies that want to invest in certain resources all those criteria
need to fulfilled. Otherwise it is unlikely that a company can establish competitive
advantage.
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3. Methodology
3.1 Boundaries of this research
As mentioned in the introduction, the aim of this research is to consider the opportunities for
smart infrastructure, such as smart grids and electric chargers for the Zuidas. To make this
aim less interpretable, this research has set clear boundaries. These boundaries can be
observed in our research question: What is the potential of smart energy systems to be
applicable and upscalable in office buildings at the Zuidas to make them more energy
efficient. An visualisation of the boundaries of this research report question can be observed
in figure 4.
The next section focusses on the meaning for the words ‘applicable’ and ‘upscalable’,
as indicated in the research question. With applicable this research indicates the extent to
which smart energy innovations can be implemented in the non physical way (e.g. through
the physical barriers, the costs and legislations). The term upscalable has an ambiguous
meaning. Upscalability implies scaling up the smart energy systems in space as well as in
time. Respectively, with space this research implies the up scalable opportunities within the
Zuidas. The time frame adopted is from now till 2025, because the municipality tries to
achieve its goals by then, as described in the introduction.
Research question: ’What are the potentials of smart energy
innovations to be applicable and up scalable in office buildings at the Zuidas to make them more energy efficient?
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3.2 Justification
This project investigates the potential of smart energy innovations. Anything beyond the
boundaries called in the previous paragraph, such as privacy issues, are therefore not be
discussed within the scope of this research. This question leads to the description of the
current situation in the field of smart infrastructure in the Zuidas in terms of technology,
regulation, financing (who invested), willingness of businesses, and what the future
scenario’s. The question is thus answered with an elaboration on the current situation as well
as the threats and opportunities for the future. Later in the discussion, some
recommendations for will be discussed.
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3.3 Representation research
The representation of the complete research can be derived from figure 5. The
implementation of smart technologies in a group of different companies might be complex,
due to several reasons. To attain knowledge on all these aspects represented in figure 5, this
research places the vocal point on several sub questions, which can from table 2.
Figure 5: Organisation of concepts, with causal links. The kernel of this research are the smart sensory systems. Artificial intelligence answers the questions of how to turn the data collected by these systems into comprehensible and tangible information for employees, facility managers and policy makers. By further zooming out we reach two new area’s: that of internal policy makers and that of external policy makers. Internal policy makers exist of two groups. The businesses are concerned with the question of how they are going to implement smart systems and how they are motivating those investments. The other group are the internal policy makers, who cope with questions on how to implement intelligent systems. On a broader view, there are external policy makers, such as the municipality of Amsterdam, who create a framework of regulations concerning the smart city infrastructure.
Sub question Discipline
What are the possibilities for making the data gathered by the system more accessible for stakeholders and policy makers in order to anticipate and react to the information?
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What attracts businesses to invest in smart energy applications, and what are theopportunities and threats for implementation?
Business Administration
What are the other stakeholders’ interests or objections? Planning (intern)
What are the restrictive or stimulating means in the existing legislation and policies in this (possible) transition?
Planning (extern)
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3.4 Sources of knowledge
As this research report concerns a case study, it might be necessary to attain a more
complete understanding of the complex selection of choosing the most appropriate smart
energy innovations for office buildings at the Zuidas. The use of solely scientific papers is not
sufficient, since the results are heavily depending on circumstances concerning the specific
case of the Zuidas. Therefore, it requires besides the acquisition of relevant data through
compiling specified documents and literature, also the expertise of several persons within the
research area.
The results depend on the knowledge of stakeholders who are aligned with this case.
The selected persons are connected with both the subjects of energy efficiency on the Zuidas
and the development of smart energy innovations. one or more disciplines in the project
every scope in the research is represented by at least one spokesman. This can be derived
from figure 6. However, all interviews will have a similar structure, because the answers to
open questions indicate the expertise of and relevance for the spokesman. Within the scope
of this project, it is not relevant to apply statistics or coding, as the respondents cannot be
clustered to one specific group. Moreover, applying these methods are not in line with the
scope of this project, as the aim is not to find certain trends. As it is important that the
information from the interviews are verifiable, they are included as attachments (Appendix
8.1 – 8.4).
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3.6 Relevance and common ground
3.6.1. Organisation and rearranging sub-systems
Organisation of disciplines identifies similarity in concepts, redefines them and organises,
arranges or maps the causal links between them. Rearranging sub-systems to bring out
interrelationships gives meaning to this organisation. Artificial intelligence provides the
context and boundary constraints. In other words, it’s restricts the meaning of buildings’
energy efficiency to that of created by intelligent systems. Insights from disciplines such as
business and urban planning are relevant. Those disciplines can apply integrated theories to
give substance to the implementation and scaling up of these smart systems, in order to
increase energy efficiency. This is what is displayed in the model, showed in paragraph 3.3
(research representation) and figure 5.
3.6.2. Creating a continuum of meaning
Although artificial intelligence, business and urban planning contain conflicting
assumptions, in the context of this research all disciplines share a continuum of meaning,
which it to increase energy efficiency. Artificial intelligence assumes this can be done by
developing the right technologies, business assumes energy efficiency can be achieved by
promoting the right strategies and urban planning believes incentives like regulation and
legislation are the proper tools to increase energy efficiency. Concluding, the assumptions
are conflicting, while the meaning of the increase of energy efficiency is a continuum.
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4. Results
4.1 The possibilities for making the data gathered by the system more accessible for
stakeholders and policy makers in order to anticipate and react to the information
As discussed in the theoretical framework (paragraph 2.1.4), there might be a gap between all
data collected by sensors, and the possibility to usefully adapt on these data. However, there
are possibilities for translating data into useful information. ICT-tools support processes to
make data useful, such as making predictions or monitor processes. Besides, data-analysis
could be used to interpret different data-sources and reach new insights. Furthermore, there
is a communicative component: open data is an important tool for interaction between
stakeholders and businesses (Ministry I&M, 2016).
However, there are three major challenges for integrating the energy and climate
policy and the application of data to support those policies. The first challenge is to create
insight in the valuation of data for energy policy makers. Secondly, there are insufficient
opportunities for using data. It is important to contemplate for which insights the data need
to be used. Energy consultants often use numerical data, while an official needs data
visualisation as mean for communication. The third objection is the lack of a data
infrastructure. To overcome this problem, good coördination of policy makers and clear
responsibilities for ICT and other stakeholders are crucial (Ministry I&M, 2016).
4.1.1 Historic data and real-time data
The ICT Roadmap for Energy-Efficient Neighbourhoods (IREEN, 2013) focuses on the aim to
develop a comprehensive strategy for future European-scale innovation and take-up in the
field of ICT for energy efficiency and performance in districts and neighbourhoods.
This
roadmap contains a subdivision in ICT for three perspectives: spatial planning, management
and applications (Vlasveld, pers.comm., 2016). For spatial planning, as well as for real estate
management, mostly historic data are useful. Facility management however aims to
27
coördinate the smart system while it’s working, and therefore profits more from real-time
data (Vlasveld, pers.comm., 2016), (Berix, pers.comm., 2016). Dashboarding real-time data in
a three dimensional map makes it possible to monitor for example the occupancy rate and
depending on the vacancy, reduce energy use in a certain district of a building (Berix,
pers.comm., 2016). Currently, most cities prefer open data driven analysis on the short term,
so over a time span of five years. However, cities have indicated that they are unaware of the
possibilities of using these data (Vlasveld, pers.comm., 2016).
4.1.3 Data applications
Berix from Deerns, the engineering firm that designed the smart infrastrucure in The Edge,
indicates that there is a wide variety of possibilities to stimulate energy efficiency based on
software, as the hardware is already available in smart buildings. Software might be able to
monitor the produced amount of solar power and the energy tariffs, and send incentives
based on the available amount of energy on the net. However, most corporates currently
have a fixed energy tariff. Hence, when the data collecting hardware, such as the smart
energy system, is present in a building, the only challenge is to develop software that can be
connected to the system (Berix, pers.comm., 2016).
According to Vlasveld, people involvement with energy efficiency can be achieved
with the development of four different applications. The first option is to raise awareness of
energy footprint amongst end users, such as the management and employees of an office
building. This can be achieved by monitoring and collecting data from their energy
consuming behaviour and to provide users from accessible visualisation, context driven
guidance and benchmarks with friends and community members (IREEN, 2013, p. 31). The
second option is to make it part of a process of gaming, to challenge users to change their
energy consuming behaviour. For example employees or offices can mutually compete in
computer games simulating life in a building or at The Zuidas. They can gain scores for cost
and energy savings, competing with colleagues or other offices (IREEN, 2013, p. 31). The
third possibility is to visualize progress and connect performances to certain targets
(Vlasveld, pers.comm., 2016). An example of this is targets of a city in CO2 reduction.
28
Amsterdam aims 45% CO2 reduction in 2025 compared with 2012 (Duurzaam Amsterdam,
2015). Data collection makes it possible to inform the municipality about their progress on
CO2-reduction. As for the municipality, it is also possible for companies to monitor their
progress on certain energy efficiency. The fourth option is to use data to trigger action
(Vlasveld, pers.comm., 2016). For example by influencing market systems by price incentives
based on the available amount of energy on the net. Vlasveld states that the potential of
these applications is high. It is undoubtly that these will be applied within the next few years.
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4.2 The motivation for businesses to invest in smart energy applications, and the
opportunities and threats for implementation
4.2.1 The opportunities of implementing smart energy applications
The literature has pointed out that green technology can be advantageous in
reducing costs on the long-term (Porter & van der Linde, 1996). Van Casteren
(pers.comm, 2016) does agree on this point, since he argued that the awareness
among companies on the Zuidas to invest in long-term projects increases
significantly.
To digress, motive is that the implementation of smart energy innovations decreases
the cost of energy. There is no consensus about the degree of the savings in energy
costs through these innovations. The employee of the network society assesses that
this direct motive will not lead to much profit (employee network society,
pers.comm, 2016). However, Ron Bakker argued that, in the case of Deloitte, the
results of these innovations were beyond their initial expectations of a payback period
of 10 years. Ultimately, the costs of the innovations were already paid back in 8 years.
This was mainly due to the higher rates of energy savings of the innovations (Ron
Bakker, pers. comm, 2016). Rico Berix (pers.comm, 2016) does provide one example
for these savings. He mentioned that through this system, implemented in the Edge,
the productivity could increase by 5%, since the system could enhance the real-time
positioning of people and assets. Moreover, parts of the building can be closed
temporarily, because the occupancy rate is low. This also reduces the energy and
cleaning costs with 20% (Rico, Berix, pers.comm). The savings can outweigh the
outweigh the purchase costs of the expensive system (Rico Berix, pers.comm).
As been discussed in the theory smart energy innovations are of value when they
improve the performance of the measures eco-labelling, environmental design and
life-cycles analysis (Burnett, 2007). The environmental design is becoming a greater
issue when constructing new office, instead of existing offices (Van Casteren,
pers.comm, 2016). Nevertheless, the issue of eco-labeling (BREEAM) was the most
important driver of the shift towards sustainable building. It becomes evident that
smart energy innovations can contribute to a high rank BREEAM certificate, in three
interviews they highlighted this. They assesses that through introducing the
30
certificates BREEAM in 2007 the incentives to innovate in sustainability increases
dramatically (van Casteren, pers.comm, 2016; employee network society, pers.comm,
2016). For most firms, located on the Zuidas, it is essential to rent office spaces which
are labelled with the highest BREEAM certificate (BREEAM outstanding; Bakker,
pers. comm, 2016). This CSR incentive to sustainably constructing have been
recognized as insuperable (van Casteren, pers.comm, 2016). Especially in the case of
the Zuidas. Big conglomerates feel the necessity to involve in CSR and therefore,
more or less, oblige the constructors to involve in sustainable constructing. These
companies recognize the returns they earn from these long-term investments as the
most preferable one (Van Casteren, pers.comm, 2016).
The latter, companies feel that they are partly responsible for the planet (Jaak
Vlasveld, pers.comm, 2016). Especially, in the case of the data centres that are
accountable for 8% to 10% of all the energy used in the municipality of Amsterdam.
Not only the companies, but also their clients prefer companies that are actively
working on sustainability (Jaak Vlasveld, pers.comm, 2016).
4.2.2 The threats: other more profitable options and lack of collaboration
However options for companies to involve in non-sustainable short-term projects do
exist. To gain competitive advantage and profit it is for the majority easier to, for
instance boosting the production, investing in marketing and in manpower
(employee network society, pers.comm, 2016). Notably when the knowledge of CSR is
not in-house. For example, the employee of the network society (pers.comm, 2016)
mentioned the law firms on the Zuidas. As can be adopted from the literature this
can be considered as a missed opportunity. Literature have demonstrated that,
especially CSR can enhance the productivity and innovation (adopted from Table 1:
Examples of strategic benefits from socially responsible behaviour; Burke & Logsdon,
1996). Moreover, the current problem, much broader than just on the Zuidas, is that
some companies do feel problems to make the step towards sustainability by their
own. The employee of the network society (pers.comm, 2016) assesses that their
company is attempting to gather CEO’s of companies on the Zuidas to make the step
together. During these meetings the shift from competition towards coalition can
been made. Therefore, goals concerning sustainability can be reached. The last threat
that can occur is the lack of expertise in a specific sector. The pressure is high and the
budgets are insufficient. Therefore the problem can exist that the system does not
31
reflect the wishes of the company within the sector (Rico Berix, pers.comm, 2016).
4.3 The external stakeholders’ interests and or objections for implementing smart energy
systems
The Zuidas is a playing field of different stakeholders with different interests, which creates
friction. Besides the municipality and real estate developers there are often multiple
companies involved. Several buildings on the Zuidas are multi-tenant, for example The Edge
and Vinoly (OVG Real Estate, 2016). In order to create consensus and reach sustainable goals
all these stakeholders need to be united. On the Zuidas different CEO’s of competing
companies have formed a coalition, this was initiated by a network firm, to come to concrete
solutions for saving energy (employee Network Society, pers.comm., 2016).
A few complications arise when working together with different stakeholders. Firstly,
what is often the case with new buildings, real estate owners decide on subjects like smart
grids and smart technology although they are not the users of the buildings and systems.
Often this requires efficient communication between the owners and end users. Secondly,
because contexts change per buildings on the Zuidas it is important to address every case
individually. For example, every building has another architect, this has an impact on the
placement of smart grids (Berix, pers.comm., 2016).
On the Zuidas the municipality is an important stakeholder in the beginning stages of
the project (Berix, pers.comm., 2016). The main reasons for this is that the municipality
constructs rules which have to be respected and the municipality is the landowner and there
is a high demand for companies to acquire this land. Van Casteren (2016), sustainable advisor
for the municipality of Amsterdam, stated that this creates leverage for the municipality.
Because of the high demands for land, the municipality can set sustainability demands over
and above the statutory requirements. On the Zuidas the performance of the buildings is
often measured with BREEAM certificates.
Because of these certificates and the favourable land for companies, more rigid rules
are imposed on the real estate developers, in order to build more sustainable buildings. For a
long time the only goal for investors was financial profit and sustainable or smart energy
32
systems did not fit in the picture. Although still most investors simply go for financial profit,
most amount of people on the least amount of square meters (Berix, pers.comm., 2016), a
change is brought about. Increasingly more investors shift towards long-term business
strategies with the focus on CSR and sustainability (Eccles & Krzus, 2010). As stated above,
buildings have to meet certain criteria in order to be built on the Zuidas. This is the point
where the smart energy systems can play a role. This role however, for now, is minor (van
Casteren, pers.comm., 2016) because these smart systems are more or less still in the
technology valley of death and difficult to be implemented in the market (Bürer and
Wüstenhagen, 2009). This is because these systems are not yet fully developed and solar
panels or heat pumps alone are a more viable and profitable option (Lawrence et al., 2016).
However, these systems can enhance the performance of for example solar panels.
Investments in R&D can further enhance their performance.
On the other hand, there are investors or companies that go above and beyond the
necessary criteria. Because the BREEAM certificates can increase the value of the building,
some investors use these certificates as ‘green competition’ (van Casteren, pers.comm., 2016).
Again, it is all about profit because of these higher values, the investors can demand higher
rent prices. But on the other hand these certificates can create a win-win situation with higher
building values as well as an increasing sustainability (Miller, et al., 2008).
33
4.4 The restrictive or stimulating means in the existing legislation and policies in this
(possible) transition
4.4.1 Stimulating means .
The municipality of Amsterdam has a high interest in becoming more sustainable and the
‘Duurzaamheidsplan Zuid’ is the most concrete plan for the Zuidas regarding sustainability
One of the goals to make the Zuidas more sustainable is making the office buildings more
energy efficient and the monitoring and availability of the energy data is key for this. This
monitoring and availability will have advantages for the companies, since this eventually will
contribute to a positive image and cost-reduction (Zuidas Amsterdam & Gemeente
Amsterdam, 2008).
‘Bovenwettelijke eisen’ are another stimulating element in the current legislation of
the municipality of Amsterdam. These are special requirements and are stricter than the
legal demands. The BREEAM certificate is such a ‘bovenwettelijke eis’ and the municipality
has a certain leverage in applying these, because the Zuidas is a popular location for many
companies. So, this certificate forces companies to invest in sustainable applications and
innovation if they want to locate at the Zuidas (Van Casteren, pers.comm., 2016).
‘Wet Milieubeheer en Energielabel’ proposes certain means regarding energy
efficiency, such as the ‘activiteitenbesluit’, the ‘energielabel’ and the
‘Energie-investeringsaftrek (EIA)’. The first is focused on energy savings, the second on providing the
energy performance of an office buildings and the latter on stimulating investments in
becoming more sustainable (Rijksdienst voor Ondernemend Nederland, n.d.).
The last stimulating mean in the policy area is the emerge of public-private
partnerships regarding smart energy systems, such as ‘Amsterdam Smart City’. It is a
partnership between the local municipality, the residents, business and academic institutions
and it could be helpful for implementing and up-scaling the smart innovations in the Zuidas
office buildings. The aim is to transform Amsterdam in a smart city with the final goal of
reducing CO2 emissions. They set up different projects to reach this goal and focuses on the
energy transition and open connectivity of Amsterdam. They test and learn from these
34
projects with a potential of becoming solutions to a smart city (Angelidou, 2016).
4.4.2 Restrictive means
However, based on reading several policy and legislation documents (above), all stimulate an
increasing energy efficiency in office buildings, but they do not propose how this goal has to
be reached. For example, ‘Duurzaamheidsplan Zuid’ focuses on increasing the energy
efficiency of buildings but it does not propose how this has to be done. It does not explicitly
mention the possibility of smart innovations in increasing energy efficiency (Zuidas
Amsterdam & Gemeente Amsterdam, 2008). Another example is that the smart energy
systems are not reviewed explicitly in a BREEAM certificate, so the use of smart energy
systems is not taken into account when such a certificate is given (or not) (Berix, pers.comm.,
2016). Indirectly there are some stimuli from the government that could be helpful for
companies to invest in smart innovations (mentioned in paragraph above), however the
potential of the smart innovations is not mentioned in these policy tools or legislation
(Energievisie Zuidas, 2010). This is supported by a statement of Maarten van Casteren, since
he mentioned that there are no explicit rules of the municipality in which the application of
smart energy systems in office buildings in order to be more energy efficient are stimulated
(personal communication, 2016). This could imply that currently the decision of which
technologies are used to become more energy efficient, is made by the internal policymakers
of the companies and is not influenced by the municipality.
Another limitation is that according to the law, companies are forbidden to sell
energy to other companies in that area (Vlasveld, pers.comm., 2016). For example, if a
company has invested in rotating solar panels and has an energy overabundance, it cannot
sell this to its neighbour. In an optimal scenario the surplus would be sold, because the
company does not need it and earns money of it. Instead, because of this limitation in the
legislation, the energy surplus is being wasted and the office building is being prevented in
becoming more energy efficient. .
35
Even though there are limitations and ambiguities in the legislation and policies regarding
energy efficiency, the government and researchers have set up programs in order to examine
and change this legislation and policy framework. IRIS (Institutionele en regulatorische
innovatie ten behoeve van lokale, slimme energievoorzieningen) is such a program and is set
up by several stakeholders such as the municipality of Amsterdam, AmsterdamSmartCity
and Alliander. The aim is to provide legal frameworks that give the best opportunities for
local sustainable projects. The end result is a proposal for the structural adjustments of laws
and regulations, which are also based on the local, decentralised energy production
(Topsector Energie, n.d.). Since this research is still running, no statements can be made.
However, the results could be beneficial for a more stimulating legislation and policies
towards smart energy systems.
Land use plans could be a helpful mean regarding a possible transition. In some areas
of London the municipality can put specific sustainability demands and energy use demands
in this plan and these are legally binding. So if the developers of the land or buildings do not
meet these demands, the developers have to pay extra per square metre, so in that way the
municipality can make it attractive to invest in sustainable and energy measures and
becoming more sustainable. This is already happening in London, and could be a helpful
36
5. Conclusion
In order to find out what the potential is for smart energy systems to apply in office
buildings at the Zuidas, and what the opportunities are for smart infrastructure for the whole
Zuidas district and the future, several subthemes are discussed.
Currently, there is a wide variety of technologies available on the market that offer
opportunities to increase energy efficiency by collecting real-time or historic information.
Smart energy systems provide an open infrastructure. Different kind of applications that
transform data into comprehensible information can be applied on the smart energy systems
to provide policy makers and facility management from useful information. F
our options to
usefully profit from the data are creating awareness by providing insight in their energy
consuming behaviour, to make a game application to challenge users to change behaviour,
to visualize progress and finally to trigger action by price incentives.
The main driver for companies to invest in smart energy systems is the BREEAM
certification, which is an example of corporate social responsibility. Another driver is the
reduction in energy costs due to investment in energy efficiency technologies and the third
driver is that companies aim to meet their clients’ preferences. A constraint is that companies
often do not take the risk to invest on their own but prefer forming a coalition to collectively
invest in smart energy systems.
In order to create consensus and reach sustainable goals, stakeholders need to be
united. The municipality of Amsterdam plays a big role in the starting phase of the building
process, as it is landowner. Hereafter, real estate agents, investors and the end users,
companies, are the main actors. Because of this variety some problems can arise. For
example, changing contexts make it difficult to address all needs of every stakeholder.
Although most investors still want short term profit, there are more rigid rules imposed for
real estate developers by the municipality, and therefore an increasing amount of investors
shift towards long-term business strategies with the focus on CSR and sustainability.
However, integrated smart energy systems can often not compete with more viable options
like solar panels and heat pumps.
37
requirements, such as the BREEAM certification, rules from the Wet Milieubeheer en
Energielabel concerning energy savings, providing energy performance of an office building
and stimulating investments in becoming more sustainable. Another stimulating mean is the
founding of the PPP Amsterdam Smart City. Restrictive factors are the lack of adaption of
smart energy systems as opportunity for energy saving in policy tools and legislation, since
they are not mentioned explicitly in the legislation and policies. Besides, it is forbidden to use
energy produced by a building owned by someone else.
At this moment the smart energy infrastructure has just started developing, although
all technologies are available. There are opportunities for scaling up in the future. Therefore,
an extensive smart grid and related smart meters are necessary. This requires willingness of
businesses, owners of the buildings, network owners, energy companies and the municipality
to intensively cooperate. There are already research institutes collaborating to make the
transition possible. Smart infrastructures are developing in Lelystad Airport and Eindhoven,
so it might be possible to make the transition to Amsterdam as well. Developing applications
to show policymakers and managers the opportunities of smart energy systems would be a
driver, together with coöperation between companies.
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6. Discussion
When addressing the main question of this paper, some interesting findings appeared. In
modern cities everything is getting more connected with each other. In accordance with this
paper, it would be interesting to elaborate on the possibilities of extending the smart
infrastructure of the city of Amsterdam. For example, connecting different buildings to one
grid can already save energy. Because of regulations, other buildings are not able to use this
extra energy. It would be interesting to inventory possibilities for energy exchange between
building. Most office buildings are cooled most months of the year while most domestic
buildings need heating. Research on this topic would give this paper a more consistent
content and can give a better view of the possibilities of smart energy systems.
Privacy issues are inherent on the topic of smart energy systems, as there is a risk for
hacked smart meter. The data might contain critical personal as well as business
information. Besides, there is a problem on data storage. Such a large amount of
continuously collected data could best be stored in the cloud. However, cloud computing
enables access to virtual resources in different locations and this as well brings serious
concern regarding the security of data. A solution for this problem is an internal data center,
but this might be quite costly. In a wider research of smart energy systems, privacy issues
and storage issues cannot be left out of the scope of smart energy systems.
Due to the introduction of the BREEAM certificates in 2007 a lot of companies and
investors are getting interested in sustainability applications. An interesting follow-up
question for this paper, would investigate how the BREEAM certificates have influenced the
different applicable stakeholders and how these can be even more influential. Besides, for the
existing buildings almost no policies exist in order to make them more sustainable. For a
complete energy efficient city, also these buildings need a transition.
Overall, this case study for smart energy systems in office buildings at the Zuidas
gives a biased analysis of the topic, since the results heavily depend on the knowledge of only
five experts in the field. This knowledge might be connected to certain interests depending
on their expertise. It could be recommended in a further research to interview more people,
such as electricity companies, real estate companies, the management of office buildings,
39
such as Deloitte, them selves and the employees.
40
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