By Joseph Wong
In more recent years, the concept of smart cities has garnered significant attention as the next evolution in urban development. Generally speaking, smart cities are deemed to be more energy-efficient and environmentally friendly due to the advanced technology utilised in their construction and upkeep. Such developments are often pitched by developers and government agencies as the next wave of urbanisation, promising an era of sustainable living and heightened convenience, especially in this period of shifting toward carbon-free living. However, beneath the glossy facade of high-tech infrastructure and green promises lies a more complex reality. The transition to smart cities while offering potential benefits, also presents several challenges that can undermine the very goals they aim to achieve.
Smart cities are designed to improve energy efficiency and encourage more cities to begin their transformation. They are equipped with a multitude of sensors, devices and networks that collect and analyse data to optimise urban living. This technology can manage everything from traffic flow and waste management to energy consumption and water distribution. However, the reality is that the implementation of these technologies inherently increases energy demand. The continuous operation of data centres, communication networks, and various connected devices requires a substantial amount of power.
One of the primary arguments in favour of smart cities is their potential to reduce overall energy consumption and carbon emissions. However, if the energy needed to power these systems is not sourced from renewable energy, the environmental benefits are significantly diminished. The infrastructure supporting smart cities, such as data centres, can be energy-intensive, and if powered by fossil fuels, they can contribute to an increase in greenhouse gas emissions. As a result, the claim that smart cities are more environmentally friendly becomes questionable unless there is a concurrent and substantial investment in renewable energy sources.
Need for integrated energy management
Kuala Lumpur has climbed 16 spots to become the world’s 73rd smartest city out of 142, according to the 2024 Smart City Index (SCI) but for a city to be considered smart, it must meet its inhabitants' daily needs in the most efficient and sustainable way. This requires the coordinated management of resources—material, environmental and human—by urban authorities, both public and private. Currently, however, many urban services are managed by multiple suppliers, leading to a lack of integration. In the case of energy provision, various Energy Management Systems (EMS) handle services such as urban heating and lighting. These systems often operate independently, missing opportunities for increased efficiency and cost savings.
The fragmented nature of these systems can lead to inefficiencies and redundancies. For instance, without integrated management, excess energy generated in one part of the city cannot be easily redirected to another area experiencing a deficit. Additionally, the lack of a unified EMS can result in suboptimal decision-making, where the prioritisation of resources may not align with the city's overall sustainability goals. An integrated approach, where all energy systems communicate and work together, is crucial for maximising the efficiency and environmental benefits of smart cities.
Not so green after all
Despite the promise of greener urban environments, smart cities are not inherently sustainable. The production and deployment of smart technologies themselves have environmental costs. The manufacturing of sensors, IoT devices, and other components often involves the extraction and processing of rare materials, which can have significant ecological impacts. Moreover, these devices have limited lifespans and contribute to electronic waste, a growing concern as cities become increasingly digitised.
Another critical issue is the rebound effect. As smart technologies make it easier and cheaper to access resources, overall consumption may actually increase. For example, more efficient lighting systems may reduce energy use per light bulb but if the cost savings lead to an increase in the number of lights installed, the net energy consumption could rise. This paradox highlights a fundamental challenge in the quest for sustainability: technological advancements must be accompanied by behavioural and policy changes to truly achieve environmental benefits.
Cities must design and adopt strategies to resist the test of a future plagued with growing uncertainties, according to Smart City Observatory president Bruno Lanvin. He also said trust and good governance are growing in importance, and the significance of artificial intelligence (AI) in city design and management is set to increase.
“Counter-intuitive as it may sound, AI can help cities to become more human-centric,” he said in a statement published on the IMD Business School website.
Matching energy demands
To ensure that smart cities live up to their green promises, it is imperative to match their energy demand with renewable energy sources. This means not only investing in solar, wind and other renewables but also developing robust energy storage and distribution systems. Energy storage solutions, such as batteries, are essential for managing the intermittent nature of renewable energy. They ensure that excess energy generated during peak production times can be stored and used when renewable sources are less available, such as during the night or on cloudy days.
Furthermore, the integration of smart grids is vital. Smart grids use digital technology to monitor and manage electricity flows, allowing for the efficient distribution of energy from multiple sources, including renewables. They can also facilitate demand response strategies, where energy consumption is adjusted in real time based on supply conditions. For instance, during periods of low renewable energy production, smart grids can reduce the power supply to non-essential services or shift energy-intensive processes to times when more renewable energy is available.
The successful implementation of these technologies requires significant investment and collaboration between the public and private sectors. Governments must create supportive policies and incentives for renewable energy adoption, while private companies need to innovate and bring cost-effective solutions to the market. Moreover, public awareness and engagement are crucial. Citizens must be informed about the benefits and limitations of smart technologies and encouraged to participate in energy-saving practices.
While the vision of smart cities offers a compelling picture of a sustainable, technologically advanced urban future, it is essential to critically examine the flip side. The increased energy demand, the need for integrated management systems, and the potential environmental costs all present significant challenges that must be addressed. To truly harness the potential of smart cities, it is crucial to ensure that their energy needs are met with renewable sources and that technological advancements are paired with sound policies and public engagement.
Ultimately, the success of smart cities will depend not only on the sophistication of their technologies but also on the effectiveness of their governance and the commitment of their citizens to sustainable living. Only by addressing these challenges can smart cities fulfil their promise of a greener, more efficient urban future.
TNB’s journey towards renewable energy
Tenaga Nasional Bhd’s (TNB) journey towards renewal energy is not an easy one from having to invest a significant capital expenditure to support Malaysia's energy transition and rising electricity demand.
Nevertheless. TNB president and chief executive officer Datuk Megat Jalaluddin Megat Hassan announced the company's commitment to key projects under the National Energy Transition Roadmap (NETR), including large-scale solar (LSS) parks, hybrid hydro floating solar (HHFS) arrays, and hydrogen and ammonia co-firing projects. These initiatives aim to add over 3,000 megawatts (MW) of renewable energy capacity by 2040, with 2,500MW from HHFS and 500MW from LSS parks.
The company plans to install 230MW HHFS arrays at Temenggor and Chenderoh hydro plants by 2025 and is exploring a 100MW solar project in Perak. In 2023, TNB's revenue grew by 4.3% to RM53.07 billion, driven by a 3.8% increase in electricity demand in Peninsular Malaysia and Sabah.
The company plans to install HHFS arrays with a capacity of up to 230MW at the Temenggor and Chenderoh hydro plants by 2025. Additionally, TNB is exploring a 100MW ground-mounted solar project in Perak. Megat reaffirmed TNB's commitment to driving growth and achieving net-zero targets through its comprehensive energy-transition plan, focusing on clean energy, transition networks, and dynamic solutions.
In 2023, TNB's revenue grew by 4.3% to RM53.07 billion, driven by a 3.8% increase in electricity demand in Peninsular Malaysia and Sabah.
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