City Energy Efficiency Report: Transport Sector

Wuhan

August 2015

Wuhan Integrated Transport Development Project Team

Table of Contents

Glossary

Preface

Executive Summary

1.Introduction

2.Background

3.Transport Sector Energy Efficiency Evaluation

4. Potential Energy Cost Savings

5. Energy Efficiency Recommendations

Annex 1: Detailed Recommendations from TRACE

Annex 2: List of City Abbreviations for Cities in the TRACE Database

Glossary

BRTBus Rapid Transit

CNGCompressed Natural Gas

ESMAPEnergy Sector Management Assistance Program

ETCElectronic Toll Collection

GBPBritish Pound

GHGGreenhouse gases

GJGigajoule

GWhGigawatt hour

HDIHuman Development Index

ICTInformation and Communication Technology

ITSIntelligent Transport Systems

KPIKey Performance Indicator

kWhKilowatt hour

LEZLow-Emission Zone

MJMega joule

NMTNon-Motorized Transport (Cycling and Walking)

NMVNon-Motorized Vehicle

RMBRenminbi(Chinese Currency)

SCEStandard Coal Equivalent

SDSingapore Dollar

TRACETool for Rapid Assessment of City Energy

USDUS Dollar

Preface

The Tool for Rapid Assessment of City Energy (TRACE) is a decision-support tool designed to help cities quickly identify underperforming sectors, evaluate improvement and cost-saving potential, and prioritize sectors and actions for energy efficiency intervention. TRACE[1], developed by the Energy Sector Management Assistance Program (ESMAP), offers a range of potential solutions, along with implementation guidance and case studies. This report specifically focuses on citywide energy performance and diagnoses of potential energy savings in the transport sector in Wuhan, China.

This report was prepared the Wuhan Integrated Transport Development Project team of The World Bank’s Transport and Information and Communication Technology (ICT) East Asia and Pacific Unit. The team, led by Arturo Ardila-Gomez (Lead Transport Economist), included Li Qu (Young Professional), Gladys Frame (Consultant), and Yang Chen (Urban Transport Specialist). The financial and technical support by ESMAP is gratefully acknowledged. ESMAP—a global knowledge and technical assistance program administered by the World Bank—assists low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Denmark, Finland, France, Germany, Iceland, Japan, Lithuania, the Netherlands, Norway, Sweden, Switzerland, the United Kingdom, and the World Bank Group.

Executive Summary

As a result of rapid development, cities in China are experiencing ever-increasing levels of energy consumption that is forcing them to consider and plan their development in a sustainable manner. Transport, one of the most energy dependent sectors, accounted for 37 percent of petroleum consumption in China in 2013. This number has increased significantly over the past few years. Energy savings in the transport sector play an important role in sustainable city development in terms of relieving congestion and reducing greenhouse gases (GHG).

Wuhan is a rapidly growing metropolitan area. In 2013, with a population of 10.22 million, it ranked as the sixth-most populous city in China. Amid extensive construction of infrastructure and ongoing development, the city is seeking strategies to achieve optimal energy efficiency. The World Bank team analyzed energy efficiency across the city, including in the transport sector. Key findings include:

•Relatively high citywide primary electricity consumption per capita;

•Relatively high citywide energy consumption per capita;

•The average length of high capacity transit routes per 1,000 people is low;

•High private transport energy consumption; and

•Total transport energy use per capita, public transport energy consumption, and public transport mode split ranks in the middle when compared with peer cities.

According to the diagnostic results, it is estimated that potentially 31 percent can be saved in public transport energy costs and 20.2 percent in private vehicles’ energy costs.

Sector / Estimated Percentage of Energy Consumption Reduction / Energy Cost
(USD) / Potential Energy Cost Savings
(USD)
Public Transportation / 31.0% / 253,006,268 / 78,437,455
Private Vehicles / 20.2% / 989,163,063 / 169,925,734

Based on Wuhan’s specific situation, the TRACE tool provided the following recommendations for energy savings in the transport sector:

•Enforcement of vehicle emissions standards

Enforcement of vehicle emissions standards not only improves local air quality, it also leads to lower fuel consumption. Vehicle emissions standards may be implemented through mandatory regular emissions checks.The higher the vehicle emissions standard, the less fuel the vehicle is likely to consume and the higher the reductions in the emission of fine particles, nitrogen dioxide, ozone, CO2 and other pollutants. Lower emissions result in better air quality and a lower risk of respiratory diseases associated with air pollution.

•Traffic flow optimization

Traffic can be positively managed to ensure the most efficient operation of the transport system.Management techniques and Intelligent Transport Systems (ITS) will seek to minimize distance travelled between origin and destination, minimize the number of vehicle stops, ensure the efficient flow of traffic, and encourage multiple occupancy vehicle travel. The strategy will encourage efficient use of vehicles and minimize journey lengths and vehicle stops thereby reducing fuel use.

•Public transport development

Develop or improve the public transport system and take steps to increase its accessibility and use. Public transport achieves lower emissions per capita than private cars and has the potential to provide an equitable transport network. A reduction in the number of private vehicles in circulation can lower emissions and improve air quality.

•Non-motorized transport modes

Non-motorized transport modes have zero operational fuel consumption and require low capital costs for implementation. In addition to improving the health of users, their use reduces noise pollution and improves air quality. The benefits include improved air quality, lower operating costs for users and providers, and lower infrastructure requirements. However, it should be noted that in Chinese cities, the term “Non-Motorized Vehicle (NMV)” covers electric bicycles (E-bikes) and their numbers have risen substantially since motorcycles were banned in many urban areas. Vehicle registration data for Wuhan in 2012 shows E-bikes at 0.7million and bicycles at 1.17million. In Wuhan in 2008, E-bikes comprised 13% of the trip modal split with bicycles comprising 7%[2].

•Parking restraint measures

Restricting parking can discourage car use and provide an incentive to use more sustainable modes of transport, including public transport. Removing vehicles from circulation reduces fuel use and the effects of congestion.

•Traffic restraint measures

Discouraging potential drivers from using their cars can lead to fewer cars in circulation. This can encourage people to use alternative modes, which in turn will increase their viability (increased public transport patronage, for example). Removing vehicles from circulation reduces fuel use and the need for road space.

•Congestion charging

Congestion charging restrains access by selected vehicle types, usually private cars, into large urban areas during congested times of the day. The aim is usually to discourage work-based commuting trips into a defined urban area. Measures range from complete restriction to discouragement through charging to incentive pricing for low-emission vehicles in low-emission zones. It is a market-based mechanism for influencing driver behavior that looks to capture the “external cost' of vehicle travel during congested periods of the day.

•Travel planning

Informing drivers about alternative modes of transport and sharing resources with other drivers leads to fewer cars being used and more trips on public transport. Removing vehicles from circulation reduces fuel consumption and increases the viability and efficiency of public transport.

•Awareness-raising campaigns

Public education and training campaigns can increase the public's awareness and understanding of the benefits of energy efficiency and help change attitudes. Providing information on easy ways to be more energy efficient can help modify citizen behavior and contribute to overall energysavings. The key benefits are more energy efficient behavior by residents leading to reduced energy consumption within the city. For example, encouraging people to leave their car at home and take transit instead, or promoting walking for short trips. Indirect benefits include reduced pressure on energy infrastructure, reduced carbon emissions, and better air quality.

The above recommendations can build upon the ongoing programs carried out by the city, and some of them can also be combined with the linked Wuhan Integrated Transport Development Project that is financed by World Bank.

Page 1

1.Introduction

Methodology

The team utilized the TRACE tool to evaluate potential energy savings and provide energy efficiency recommendations to the urban transport sector in Wuhan. The TRACE tool was designed to help prioritize energy savings across six sectors—transport, municipal buildings, water and wastewater, street lighting, solid waste, and power and heat. It consists of three principal modules:

1)Energy benchmarking: Compares Key Performance Indicators (KPIs) across peer cities such as percentage modal split for Non-Motorized Transport (NMT) which covers cycling and walking;

2)Sector prioritization: Identifies sectors that offer greatest energy cost savings potential; and

3)Intervention selection: Provides “tried and tested” energy efficiency solutions.

For this study, only the transport sector was investigated using the TRACE tool to facilitate the linked World Bank loan project to identify energy efficiency in Wuhan. During the course of the preparation of the Wuhan Integrated Transport Development Project, the project team visited Wuhan and conducted interviews with officials from a broad range of city agencies to collect energy use information for the city as well as for the transport sector.[3] The data was then fed into the TRACE tool to conduct the current energy use benchmarking with other cities in the TRACE database. The initial energy saving potential was then estimated according to the benchmark results as well as the level of the city’s control over transport sector authorities. Finally, recommendations were provided based on the energy saving evaluation and the city database. The initial energy saving potential, and assets and infrastructure, with detailed information on each of the strategies.

The TRACE tool has been deployed in twenty-seven cities in Africa, Asia, Europe, and Latin America.[4] It helped the cities prepare local energy efficiency measures in a low-cost and fast manner. Specifically, the measures have been implemented in Eastern Europe to reduce GHG emissions and energy related costs as part of the Europe 2020 strategy—the European Union’s jobs and growth strategy, the objective of which is to reduce GHG emissions by 20 percent by 2020.

Limitations of the TRACE tool

While TRACE is a simple and easy tool to evaluate a city’s energy efficiency, there are limitations with respect to the depth of its analysis. It estimates potential energy savings based on benchmarking against other cities in the TRACE database, but the evaluation of city specific energy savings would require more detailed data, which are difficult to obtain, especially in the transport sector. However, TRACE provides the best practices for energy saving recommendations based on the city’s evaluation with cost and implementation requirement information, but it does not provide city specific details on the costs required to undertake the recommended strategies.

2.The Wuhan Case Study

Wuhan, located in central China, is home to 10.22 million residents, covers 8494.41 square kilometers, and had an annual Gross Domestic Product of RMB905.13 billion (USD145.99 billion) in 2013.[5] Although Wuhan is one of China’s fastest-growing cities, it lags behind the coastal cities. The disposable income per capita in Wuhan is RMB20,681 per year[6] compared to RMB32,472 in eastern coastal cities.[7] Thus, the Government of China launched the “Rise of Central China” program to boost economic growth in central China. Wuhan, along with eight smaller cities within a 100km radius (1+8 city cluster),was selected as one of the first pilot demonstrations of regional planning in China. The goal was to achieve a more balanced and sustainable development pattern in these cities.

Improving transport is one of the fundamentals to the development of a central China strategy. Following China’s pattern of rapid motorization, Wuhan, too, is experiencing a rapid growth in the number of motor vehicles. With about 130 vehicles per 1,000 population,[8] the city suffered the negative impact of increasing congestion despite a relatively low vehicle ownership rate compared to other cities such as London (300) and cities in the Netherlands (500)[9]. The quality of the environment is compromised by air pollution from the growing private vehicle fleet and old public transport vehicles

3.Background

Wuhan is one of the largest cities in China. It ranked the sixth-most populous Chinese city in 2013, according to the China Urban Development Statistical Yearbook as presented inTable 1.As with other Chinese cities, Wuhan is experiencing rapid urbanization with an urbanized population rate of 67.6 percent in 2013 that has increased by about 4 percent since 2007.

Table 1: Top Ten Populous Cities in China[10]

Rank / City / Population (million)
1 / Shanghai / 23.80
2 / Chongqing / 20.70
3 / Beijing / 20.69
4 / Guangzhou / 12.86
5 / Shenzhen / 10.55
6 / Wuhan / 9.58
7 / Tianjin / 8.78
8 / Chengdu / 6.26
9 / Dongguan / 6.02
10 / Nanjing / 5.83

Figure 1: Urbanization Rate of Wuhan 2007-2013[11]

As an inland city, Wuhan has a typical continental climate with four distinct seasons. Wuhan is famous for its hot summers. The highest temperature can reach to above 40 degrees Celsius for continuous days in July and August. Thus, it is listed as one of the four “oven” cities in China.The Yangtze and Han Rivers divide Wuhan into three major parts: Hankou, Wuhan, and Hanyang. Due to these major rivers, as well as plenty of freshwater lakes, the weather is humid throughout the year, which makes it feel even hotter in summer and colder in winter.

Rapid development and economic growth have put pressure on land, energy, and environment. Wuhan’s total energy consumption reached 487.2 million tons Standard Coal Equivalent (SCE) in 2013.[12]Although hydroelectric is being developed in the area, the major energy source in Wuhan is still fossil energy, which generates more GHG emissions (see Figure 2.) than clean energy sources.

Figure 2: Energy consumption by source in Wuhan, 2013

In 2013, the total electricity consumption in the city amounted to 43,723 GWh, which almost doubled compared to the amount in 2006 (see Figure 3).

Figure 3: Total electricity consumption of Wuhan 2006-2013[13]

The largest share of electricity consumption goes to secondary industry (57 percent), followed by tertiary industry (23 percent), residential (19 percent), and primary industry (1 percent).[14]Among the total industry electricity consumption, three percent—1,162 GWh—is shared by transportation, storage, postal and telecommunication services.

Figure 4: Electricity consumption by sector in Wuhan, 2013

Citywide energy consumption benchmarking

With primary electricity consumption at 5,318 kWh per capita,[15] Wuhan ranks 3rd among the cities in the TRACE database with a similar continental climate, following Toronto and Beijing, as shown in Figure5.[16]When it comes to primary energy consumption, Wuhan also ranks 3rd among the cities with similar climate with the value of 108 Gigajoules per capita, following Toronto and Belgrade, as presented inFigure 6. Due to the specific weather features and its inland location, Wuhan requires more electricity and energy during the hot season between June and August, as well as the cold season between December and February. Thus, the city’s electricity and energy consumption ranks relatively high compare to other cities in the TRACE database.

Figure 5: Primary electricity consumption per capita (continental climate)

Figure 6: Primary energy consumption per capita (continental climate)

4.Transport Sector Energy Efficiency Evaluation

In Wuhan, the total number of motor vehicles has increased rapidly over the past few years. By end of 2013, this total amounted to 1.53 million. The share of private vehicles reached 1.21 million, which accounted for 79 percent of the total.

In 2012, total petroleum consumption in China reached 4.67 million tons. The transport sector accounted for 37 percent of this consumption.[17]The share of petroleum consumption by the transport sector has been increasing over the past two decades, from 15 percent in 1990 to 37 percent in 2012, as presented inFigure 7, due to rapid motorization nationwide.

Figure 7: Petroleum consumption in total and by transport sector in China

Urban passenger transport in Wuhan is mainly composed of road transport, supported by water transport on the rivers. Public transport modes include bus, metro, taxi, and ferry.

Figure 8: Total number of vehicles and number of private vehicles[18]

The Wuhan Public Transport Company operates a fleet of approximately 7,000 buses on 342 routes with a total route length of 6,314 km. Of these 7,000 buses, 4,500 are powered by diesel, 2,250 are powered by Compressed Natural Gas (CNG), and the other 250 are powered by electricity and new clean energy. All the buses are scrapped after eightyears of use to keep the fleet relatively new. In 2013, there are three metro lines operating in the city with a total length of 96.7km. In 2013, the total number of passengerswho travelled by public transit per day was 5.92 million, of which 5.1 million (86 percent) travelled by buses and 0.8 million (14 percent) by metro.[19],[20]

As one of the pilot cities in the National Transit Metropolis Initiative,Wuhan’s transit system is currently undergoing an unprecedented pace of development. It is expected that six additional metro lines and eight Bus Rapid Transit (BRT) lines will open by year 2020.