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challenges in delivering smart solutions to
energy efficient cities
12th March 2014
British Council SMART Cities Conference
Damien Kerkhof – Director Malaysia

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SMART City Definition
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 City planning and Sustainable
Urban Development should always
encompass 4 interrelated themes
• Governance and Growth
• Environment and Natural
Resources
• Urban Development and
Infrastructure
• Society and Community
 Design and Planning needs to be
integrated
The City
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SMART City
What is a SMART City?
 A SMART City is a Living City.
• Sustainable Urban Development + Urban Intelligence
+
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SMART City
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SMART City
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SMART City
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SMART City Challenges
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SMART City features
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What are the key elements that make a SMART City ?
…. and importantly how can they be funded.

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SMART City features
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Cutting edge transport infrastructure ?

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SMART City features
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Cutting edge transport infrastructure ?
…. most investors would find a return on infrastructure expenditure more attractive
than cutting edge design.

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SMART City features
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The High Line
New York
Adopting designs that have worked elsewhere ?

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SMART City features
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Olympic Park
London
Adopting designs that have worked elsewhere ?

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Sustainability aspirations
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What level of sustainability aspiration is right for your SMART City / Development ?
SMART City
Development

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Sustainability aspirations
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What level of sustainability aspiration is right for your SMART City / Development ?
?

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What can the market afford ?
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Regional and Comparative Rental Rates.
 Malaysia office rental rates circa 6-10
RM/sf/month
 Singapore – 2 to 3 times.
 Hong Kong – 6 to 7 times.
 West End London – up to 10 times.

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Funded solutions
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Wembley City
London

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Malaysia Specific Issues
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SMART Key Challenges
A large body of policy already exists in Malaysia impacting SMART City Design
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SMART City Implementation
Key Challenges in Malaysia
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District Cooling – Capex Savings
Capex Savings #1
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Reduced installed cooling capacity through mixed use load diversity –
diversity depends on how tight peak load has been calculated
Peak loads vary between 20 – 50m2/RT – with Typical diversity of 70-90% of peak

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District Cooling – Capex Savings
Capex Savings #2
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Reduced installed cooling capacity through diurnal load shift

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District Cooling – Capex Savings
Capex Savings #3
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District Cooling – Capex Savings
Factors impacting Payback
Curve
 Management of Connection
Agreements
 Improvements in building
NFA (through removal of
plant, risers etc)
 Market suitability of tariff's
and charges
 Development risk
 Savings in overarching
power usage
 Project phasing
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Power
Drivers for private power supply and
distribution
 Security of supply and control over
resilience
 Substantial land savings through
control of easements and primary
infrastructure
 Easier control and management of
public realm infrastructure
 Difference between bulk supply and
retail electricity tariff’s
 Control of delivery with a minimum loss
of land capacity
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Factors impacting payback curve
 Energy pricing (impacts on cogen and
other on-site production options)
 Difference between bulk supply and
retail electricity tariff’s

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Applications in the
Malaysian Market
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SMART City Planning
What are the key factors to consider in the planning of SMART City infrastructure
 Wider Strategy
• Linking SMART City aspirations with regional goals and objectives
 Business Model
• Understanding the ROI
• Understanding how private finance can lessen the infrastructure cashflow burden and potentially
develop income streams
 Citizen and Market engagement
 Technology
• Understand market maturity, appetite and undertake a benchmarking analysis
• Test to ensure that SMART technologies provide some form of return
 Infrastructure
• Integrated future proofed infrastructure i.e. flexible,
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SMART City Planning: VISION – INTELLIGENCE - ENGAGEMENT
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challenges in delivering smart solutions to
energy efficient cities
12th March 2014
British Council SMART Cities Conference
Damien Kerkhof – Director Malaysia

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www.burohappold.com
© Buro Happold 2013