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3) Smart cities - intelligent energy and transport management systems

Sector/Subsector: Energy Union / Energy efficiency in buildings; Knowledge and the
Digital Economy / ICT Infrastructure; Resources and Environment / Resilience to
Climate Change.
Description: The underlying idea behind the concept of smart cities is the usage of ICT
technologies to address urban problems. The concept embraces also better use of
resources and generates positive impact on the environment. By creating new demands
it promotes economic growth. It addresses objectives of Europe 2020.
The main areas of development are technologies and solutions allowing for improved
energy and transport management. However the concept of smart city ultimately
envisioned by the EU is even broader and encompasses upgraded water supply and
waste disposal facilities, and more efficient ways to light and heat buildings. And it also
covers a more interactive and responsive city administration, safer public spaces and
meeting the needs of an ageing population.
Development of infrastructure necessary for implementation of the smart city concept -
including transmission networks, district heating, environment friendly municipal
transportation, intelligent data processing systems - is one of the key policy priorities in
Poland.
Financing needs: Projects’ costs range from €110 mn to €5 bn.

Involved parties: Public institutions (Ministry of Economy, Ministry of Treasury,
Ministry of Administration and Digitization, Ministry of the Environment, National Fund
for Environmental Protection and Water Management, Voivodship Funds for
Environmental Protection and Water Management) and private sector (e.g. PSE S.A.,
ENERGA S.A., ENEA S.A., PGE S.A., TAURON Polska Energia S.A.).
Main project barriers:
- Very high project costs (Polish grid is significantly less developed than Western
European grids and additionally there are large differences between grid
development and depreciation between various Polish regions),
- Financing constraints (there is currently lack of funding (public and private) for
most of the projects),
- Administrative burdens (e.g. in getting permissions for new grid lines),
- Numerous stake holders to be involved during the investment process.
Socio-economic benefits: The employment of digital technologies and intelligent
management systems will effectively translate into better public services, better
mobility solutions and less congestion, better use of resources and more reliable energy
distribution, improved energy efficiency as well as lower air pollution and cleaner
environment. Moreover, the projects will fuel the development of ICT sector.
Additionally, a relative reduction in energy demand resulting from the introduction of
smart grid means more economical consumption of resources, less emissions and less
pressure on the natural environment. It is also a chance to improve the position of the
electricity end-customers and sustain the economic growth.

European Value Added: Through accelerated investments in the ICT, energy and urban
infrastructure, the projects related to smart cities will improve the quality of life of
citizens and make cities more sustainable. Additionally, the development of the smart
grid (which will be a key enabler for the development of smart cities) will help to



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