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Energy Policy 71 (2014) 4–12

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Energy Policy
journal homepage: www.elsevier.com/locate/enpol

Energy management in seaports: A new role for port authorities


Michele Acciaro a,n, Hilda Ghiara b,1, Maria Inés Cusano b,2
a
The Kühne Logistics University, Großer Grasbrook 17, Hamburg, Germany
b
University of Genoa, Via Vivaldi 5, Genoa, Italy

H I G H L I G H T S

 Port authorities are required to engage in energy management in order to diversify and respond to environmental pressure.
 Energy management in ports has not been investigated sufficiently and offers opportunities for cost savings.
 Port authorities can promote energy management by coordinating power generation, energy use and the uptake of renewables.
 Two case studies (Genoa and Hamburg) illustrate the importance and pervasiveness of energy management in ports.

art ic l e i nf o a b s t r a c t

Article history: Ports are characterised by the geographical concentration of high–energy demand and supply activities,
Received 26 December 2013 because of their proximity to power generation facilities and metropolitan regions, and their functions as
Received in revised form central hubs in the transport of raw materials. In the last decades the need to better understand and monitor
16 March 2014
energy-related activities taking place near or within the port has become more apparent as a consequence of
Accepted 8 April 2014
the growing relevance of energy trades, public environmental awareness and a bigger industry focus on
Available online 14 May 2014
energy efficiency. The uptake in the port sector of innovative technologies, such as onshore power supply, or
Keywords: alternative fuels, such as LNG, and the increasing development of renewable energy installations in port
Energy management areas, also calls for more attention to energy matters within port management.
Port strategy
So far, however, few port authorities have actively pursued energy management strategies. The necessity
Green ports
for port authorities to actively manage their energy flows stems from their efforts to plan, coordinate and
facilitate the development of economic activities within the port, and as a consequence of the heavier weight
that sustainability is given within the port management strategies.
Through the analysis of the experiences of two European ports, Hamburg and Genoa, that have
already attempted to coordinate and rationalise their energy needs, this paper will argue that for the ports of
the future active energy management can offer substantial efficiency gains, can contribute to the
development of new alternative revenue sources and in the end, improve the competitive position of
the port.
& 2014 Elsevier Ltd. All rights reserved.

1. Introduction 2012; Yap and Lam 2013; European Sea Port Organisation [Espo],
2012). This is part of the stronger focus of many ports on
Energy efficiency is becoming more interesting for ports and improving their green image and developing environmental stra-
terminals as they realise that substantial energy savings can be tegies (Lam and Notteboom, 2014) to better manage negative
obtained through rationalisation of operation, adoption of new externalities (Benacchio et al., 2001) and stakeholder relations
technologies and use of renewable energy sources (Wiegmans and (Dooms and Verbeke, 2006; 2007), in the pursuit of a competitive
Geerlings, 2010; Acciaro, 2013; Denktas-Sakar and Karatas-Cetin, advantage (Adams et al., 2009; Verhoeven, 2010), as part of
the improvement of their strategic management processes
(Haezendonck, 2001; Ghiara and Cepolina, 2013), or as a response
n
Corresponding author. Tel.: þ 49 40 328707 281. to the pressure of the shipping industry (Organisation of Economic
E-mail addresses: Michele.Acciaro@the-klu.org (M. Acciaro),
Co-Operation and Development [OECD] (2011)).
ghiara@economia.unige.it (H. Ghiara), cusano@economia.unige.it (M.I. Cusano).
1
Tel.: þ39 010 209 5231. The topic of energy efficiency is not new (Bunse et al., 2011),
2
Tel.: þ39 010 209 5256. but in the case of ports, notwithstanding the increasing number of

http://dx.doi.org/10.1016/j.enpol.2014.04.013
0301-4215/& 2014 Elsevier Ltd. All rights reserved.
M. Acciaro et al. / Energy Policy 71 (2014) 4–12 5

projects related to energy savings and developments in renew-  Energy required for port related and port induced activities,
ables, no port specific research has addressed such a theme. such as refineries, railway operations, steel and metal works,
Although in the manufacturing sector (Thollander and Ottosson, and tourism.3
2008, 2010), small and medium enterprises (SMEs) (Froese and
Toeter, 2013), universities (Cebon, 1992) and in shipping (Acciaro
et al., 2013; Johnson et al., 2012), among other sectors, energy Renewable energy plays an important role within ports, as they
efficiency literature is emerging, research in this area is far are often located in areas that are particularly suitable for power
from conclusive. There is a need for further case studies generation from wind (e.g. Rotterdam, Kitakyushu in Japan), waves
(Johnson, 2013; Sivill et al., 2012), and the port sector can offer (e.g. Port Kembla in Australia or Mutriku in the Basque Country),
interesting examples. tide differentials (under study for example in Dover, UK, and the
The present paper means to contribute to current energy Port of Digby, Nova Scotia), and in some cases geothermal energy
management discourses by providing two case studies on what (see the Hamburg case). Furthermore, often ports have available
particularly proactive port authorities have been developing in wide flat surfaces, such as storage areas and warehouses, that can
terms of energy management. Considering the exploratory nature be used for the installation of solar panels (e.g. the Tokyo Ohi
of the paper, which in essence aims to propose the application of Terminal or in the Port of San Diego administration buildings),
the concept of energy management in the port sector, the use of although such infrastructure might not always be suitable for large
case studies is particularly appropriate (Yin, 2009). Case studies scale solar energy exploitation. The development of the renewable
have been used extensively in port economics and management. energy sector has also an impact on ports through project cargo for
Although what energy management in seaports entails depends offshore renewable energy installations and support services for
on the specificities of each individual port, the case studies provide wind farms.
two different approaches to the possible actions that port autho- Ports are also likely to become important players in carbon
rities can undertake in order to improve their energy efficiency. In capture and storage (CCS) and they already play an important role
doing so, the paper illustrates the new trends that require port in material recycling and waste disposal. These developments can
authorities to actively manage their energy hub function and benefit the port in terms of cargo volumes transported, and waste
explain how new sources of revenue can be potentially generated can be converted into thermal energy or used to generate biogas and
when port authorities actively promote energy management. electricity. Those trades can be important for those ports where
The paper is structured in the following way. In addition to the energy trades constitute a large portion of throughput that might be
introduction, Section 2 describes how the centrality of the port in declining as the world energy demands move away from fossil fuels.
energy trades has emerged, and highlights how more case studies The development of biofuels also represents an opportunity for
are needed to better investigate this aspect of port activity. Ports many ports, not only in terms of handling of raw materials, but
have for a long time taken up the role of energy hubs, and such a also in production, storage and distribution. Whether in the future
role is becoming more crucial. Section 3 presents the case studies biofuels will acquire a more conspicuous importance among
on the port of Genoa and Hamburg. Section 4 advances the maritime fuels is difficult to say, but ports might then also benefit
concept of the port authority as an energy management promoter from such development in terms of bunkering service. This is
on the basis of the concepts discussed in the introduction and in already happening for alternative fuels such as liquefied natural
the case studies. This function entails an increased focus on energy gas (LNG) and liquefied petroleum gas (LPG), with ports develop-
flow rationalisation within the port as well as a proactive approach ing new LNG bunkering infrastructure. This appears to be a natural
to energy conservation. Section 5 summarises the major findings development for those ports already active in LNG trades, although
of the paper, and indicates policy recommendations and areas for bunkering operations also pose challenges, mostly related to LNG
further investigation. distribution, infrastructure and the location of bunkering facilities
(Harperscheidt, 2011; Acciaro and Gritsenko, 2014).
The use of LNG offers advantages in terms of reduced noxious
2. Materials and methods gas emissions, as it entirely eliminates SOx and PM emissions, and
substantially eliminates NOx (although CO2 is only partially
For the purposes of this paper we can define an energy hub as a reduced). It also allows the port to benefit from substantially
geographical concentration of high-energy demand and supply lower gas prices, although the price of LNG is today far from stable
activities, where energy intense industries, power generation, and very difficult to predict. With the enforcement of more
distribution and related activities and projects are located. The stringent emission regulations in the North Sea, the Baltic Sea
port interaction with respect to energy can be summarised in two and the US coast, LNG could become an important shipping fuel in
main areas: the next decade, requiring ports in northern Europe and the US to
develop adequate facilities (Acciaro and Gritsenko, 2014).
 Power generation (energy supply) LNG in fact appears particularly attractive in the ferry and
 Energy consumption (energy demand) passenger segments, which typically require vessels to berth in the
proximity of urban centres, while there has been a tendency to
Power generation refers to those activities that take place in the move LNG liquefaction and regasification plants away from popu-
port and that entail the conversion of energy into electricity. lated areas. This is just an example of the constraints imposed on
Energy use refers to the use of electricity for port and port related the exploitation of new energy sources and the city. While on the
activities, such as cargo handling and also industrial processes,
logistics and administrative activities. Energy use can be classified 3
An important component of energy use relates to the handling of energy
into commodities, primarily energy products such as oil and oil distillates, natural gas,
coal, and also carbon that derive from power plants that burn fossil fuels, or
 Energy required for direct port activities, such as terminals, chemical products such as hydrogen, ammonia, or methanol that can be used as
locks and bridges, administration buildings, buoys, and fuels or to store energy in chemical forms to accommodate peaks in the production
of renewables. The ability of the port to carry out particularly efficiently the loading
lighting. and unloading of raw materials influenced the port energy profile primarily as it
 Energy required for powering ships (fuel consumed and elec- favoured the localisation of energy-intense manufacturing in the proximity of
tricity provided to ships). ports.
6 M. Acciaro et al. / Energy Policy 71 (2014) 4–12

one hand the city is typically one of the main beneficiaries of port The GPA has carried out an examination of the port’s vast areas
activities, on the other hand the proximity of the port creates with the main goal of examining where it would be possible to
undesirable effects. intervene in order to reduce the energetic waste and install
Most critical in this respect is the necessity for ports to reduce systems for the production of energy from renewable sources.
emissions from operations and shipping, which has contributed to The technical committee has developed a two-layer strategy to
the development of alternative fuels as mentioned above. carry out this evaluation; one layer focuses on the urban level,
In addition to imposing specific constraints on the types of fuels while the other on individual buildings (see Table 2).
and operations allowed in ports, various port authorities have The ultimate goal of the PEEP, intended as the first instrument
developed on-shore power supply (OPS) solutions also referred to in Italy to promote the use of renewable sources and boost energy
as shore-side electricity. OPS allows for vessels to be powered efficiency in port areas, is to bring down 20,000 t of CO2 a year in
entirely through grid electricity while in port. Among the various the port of Genoa with an overall investment of 60 million euros.
port authorities that have invested in OPS or are evaluating such This strategy will allow to
projects are Los Angeles/Long Beach, Gothenburg, Antwerp, Van-
couver, Lübeck, Kotka, and Seattle among others (see the World  Save almost 10,000 t of CO2 annually with the introduction of
Port Climate Initiative for more details). 12 plug positions of cold ironing in the naval reparations area,
The development of OPS poses on the port the challenge of the ferry terminal and a container terminal (Voltri Terminal
ensuring power availability, typically from the national grid. OPS Europa) with an investment of 13 million euros.
can represent a large portion of the total energy use of the entire  Save 6000 t thanks to the wind system with an investment of
port complex, in some cases several times higher than the total 20.1 million euros.
energy use of terminals. The development of OPS would therefore  Save 3600 t as a consequence of the installation of 29 photo-
require port authorities to have a clear picture of the energy use voltaic structures with an overall investment of 24.4 million
profile of the port and its related activities. euros.
The following section explains how port authorities deal with  Save 100 t thanks to the installation of three solar power
energy management through two case studies. The case studies stations in port buildings with an investment of 400,000 euros.
emphasise the role of the port as an energy hub and discuss the
environmental dimension of energy management. The two case According to the work plan, and based on an estimation of CO2
studies have been selected on the basis of their similarity in reduction for the year 2011, this integrated strategy would allow to
providing best practices on energy management and the particu- one save around 197,000 t of CO2 by 2020.
larly proactive role of the port authorities. Hamburg, in addition to
being one of the major European ports, has been particularly 3.1.2. Energy supply
proactive in terms of energy efficiency and the promotion of The port area presents characteristics that make it suitable for
energy management. Furthermore the case study is very interest- the realisation of goethermal heat plants, i.e. energy production
ing for the close relation between the city and the port, a systems through a heat pump fed with seawater. An example of
relationship that has allowed the port to implement innovative this type of installation is already operational and supplies the
policies in terms of energy efficiency. ferry terminal. Even if the potential of this kind of energy as a
Genoa has been chosen as it represents the Mediterranean, a renewable source is substantial, both its environmental impacts
region that is very different from the Northern area in terms of and technical requirements need to be thoroughly assessed. The
maturity of environmental policies. The Genoese case study is port of Genoa is currently evaluating a more extensive use of
interesting because it shows how the creation of an ad hoc tool as geothermal heat plants.
the Port Energy Environmental Plan (PEEP) can work as a guide- Five different projects dealing with photovoltaic and solar
line for comprehensive policies in a situation of high institutional technology have already been carried out by private concession-
complexity. The innovative value of the PEEP exemplifies the aries in the port of Genoa. Even if the port authority owns the
awareness of the port authority on energy matters. spaces within the port premises, these areas are given in conces-
The case studies are structured in four main subsections in sion to private terminal operators and therefore the private
order to ensure comparability. operators are those who, at the current state, can develop
initiatives that have to be aligned with the strategies of the PEEP
1. Introduction that works as a coordinator and governor of all the energy related
2. Energy supply initiatives. The simplest option in terms of action should have been
3. Energy demand for the GPA to carry out these initiatives unilaterally and indepen-
4. Port authority approach to energy management and dently; however, considering the limitations imposed by the
main issues Italian 84/94 law4 on port authorities’ ability to engage directly
in business operations, the GPA can only act as a coordinator.
Private firms are then entrusted with the operational and com-
mercial developments in view of their better capacity to manage
3. Results the planning and financial aspects of the introduction of renew-
able energy sources.
3.1. The port authority of Genoa as an energy promoter The main result that has been achieved by the creation of the
PEEP has been that of creating awareness among the terminal
3.1.1. Introduction operators and providing them with guidelines that were lacking in
The Port Authority of Genoa (GPA) has developed a Port Energy the field of energy saving and sustainable energetic development.
Environmental Plan (PEEP) for its port with the scope of stimulat-
ing and developing the activities linked to the production of
4
energy from renewable sources and of limiting energy use in its The 84/94 law establishes the legislative framework for Italian ports. In article
6 the law establishes that the port authority’s main duties are the orientation,
own territory. The logic behind this plan is grounded in the belief planning, control, coordination and promotion of port operations and other
that what happens within the port premises has an impact on the commercial and industrial activities carried out within the port premises. The
hosting city. PA’s tasks do not allow the port to carry out commercial activities by itself.
M. Acciaro et al. / Energy Policy 71 (2014) 4–12 7

Even if most of the projects deal with photovoltaic and solar 3.1.3. Energy demand
technology, currently one wind-power project is being assessed. In the port of Genoa, each terminal operator is responsible for
The procedure to adopt such technology is quite long and costly, as monitoring and reporting a terminal’s total energy consumption
it requires a full year of monitoring of the wind conditions on the rates, without providing specific disaggregated data on the share
selected site. The port is also proceeding toward the electrification the different activities have on that total (Table 1).
of part of its quay and a transformation cabin is currently under The port is also in the process of expanding its capacity with
construction in the industrial area of the port. The project has been two major infrastructure developments. An estimation has been
partially financed by the national government (more than 50%), made of the energy consumption of these two new areas for an
regional government (30% approximately) and port authority overall total of 7,500,000 kW h a year (Derna and Bettolo quays).
(around 20%) for an overall investment of 12 million Euros. A feasibility study is currently being undertaken in the San
Benigno area (an area that is very close to the port) to develop a
district heating policy for residential and office skyscrapers. This
project, that involved the University, the National Research Coun-
Table 1
cil, the regional energy agency (ARE), Muvita and different private
Energy consumption for container terminals in Genoa.
Source: compiled by the authors on Port of Genoa data. actors such as the administrations of the different buildings, would
allow the port to become an energy reservoir for the city.
Terminal Consumption/year in kW h If this plan is adopted, the GPA would operate as the facilitator
for the buildings using the sea-water as an energy source and
VTE (50% reefer) 19,000,000
SECH 4,500,000
would be able to promote energy management outside the port
Messina 5,000,000 premises.
Fruit Terminal 4,600,000 The Municipality of Genoa has been long working within the
Stazione marittima 6,300,000 EU-funded scheme of the Smart City projects. One of the four axes
Oil terminal 2,500,000
of the project as a whole deals with the energetic efficiency boost
Dry bulk terminal 5,000,000
Other 49,900,000 in the port with the use of renewable sources. The PEEP lies within
this broader strategy at the city level. Even if the EU funds for the

Table 2
Comparison of the two case studies.
Source: Authors, based on the Port Energy Environmental Plan and the Energy Cooperation Port of Hamburg.

Case study characteristics Genoa Hamburg

Port as energy hub Yes Yes


Ability of the port authority to act as energy Yes Yes
management promoter
Ability of the port authority to use energy No No
management as a source of revenue
Port strategy related to energy management 1. Goals at an urban level 1. Renewable energies
a. Reduce energy requirements a. Expansion of wind farm sites
b. Develop appropriate environmental b. Assessment of solar power generation potential and site
technologies and use of renewables identification for solar power
c. Abatement of pollutants c. Assessment of biomass energy developments
d. Environmental protection
e. Mitigation of impacts of 2. Lowering energy consumption and emissions by increasing energy
surrounding areas efficiency and providing intelligent infrastructures.
a. At companies
2. Goals at a building level b. Cross-company use of waste heat
a. Reduction of energy requirements c. Demand side management through the development of a
for buildings virtual power plant
b. Improvement of building d. Renewable energy storage systems
performance e. Hydrogen produced from renewable energies
c. Use of renewables in buildings f. Funding and support programme to refurbish commercial
buildings

3. Promoting innovative and eco-friendly mobility to reduce


emissions effectively.
a. Alternative power for berthing vessels
b. Alternative ship propulsion systems
c. Alternative power for heavy duty traffic
d. E-vehicles for port operations
e. E-mobility for commuters

Port–city relation Very close Very close


Policy issues Energy management is hindered by the complex Energy management is facilitated by city-state institutional
institutional framework framework
Salient issues 1. Proactive approach towards energy 1 Close relationship city–port
management 2 Institutional cooperation among city-state and HPA
2. Interaction between the different 3 Strong participation in renewable energy
institutional levels
3. Cultural aspects and change of mentality
8 M. Acciaro et al. / Energy Policy 71 (2014) 4–12

whole project are not enough to achieve the main goals (6 million only recently have these guidelines been coherently incorporated
euros for the whole project the pillars of which are buildings, in the Italian legislation creating a context in which the Regions
mobility, energy and the reduction of emissions within the port by and local governments could develop renewable energy strategies.
40%), the “marriage” between the PEEP and the Smart City project As a result of these policy changes, the GPA has established plans
has put together at the same table 60 companies active in the port. to develop photovoltaic installations. In December 2012 the
While on the one hand the GPA would be willing to carry out National government issued a new Decree that modified the
an energy diagnosis for the companies operating in the port to context in which the local bodies operate shifting the focus of
evaluate together the possibilities of energy reconversion, they attention (and possible central incentives) from renewable strate-
face a severe lack of resources and personnel to make this possible. gies to increasing the energy efficiency of public buildings. The
On the other hand, and thanks to the EU project APICE that has GPA then had to reformulate the port energy strategy (following
seen Genoa as one of its partners and case studies, the emissions the flow of centrally driven incentives) towards initiatives aimed
generated by the port cities have been monitored. This APICE at improving the energy efficiency.
project (Genoa, Marseille, Thessaloniki, Barcelona and Venice), The above-mentioned process highlights the extreme complex-
financed by the European programme for territorial Cooperation ity the Italian port authorities have to cope with in order to carry
MED 2007/2013, intends to develop a knowledge-based approach out energy policies in the port area. In this sense, it can be stated
for air pollution mitigation and sustainable development of port that the GPA has attempted to define a medium/long term local
activities, through spatial planning policies at the local level that energy policy in the absence of a stable and definitive national
includes the territory around the ports. The project has provided legislation.
emission inventories for gaseous (mainly carbon monoxide (CO), A positive aspect regarding the interaction between different
nitrogen oxides (NOX), sulphur dioxide (SO2), ammonia (NH3) and institutional levels linked to the particular case of the PEEP
non-methane volatile organic compounds (NMVOCs)) and parti- experience is that it has created awareness on the need for this
culate matter (PM10 and PM2.5) emissions from all anthropogenic kind of approach and it could be exported to the other two ports in
emissions sources (transport, industry, energy, central heating, the Liguria region, namely La Spezia and Savona.
etc.). The interesting aspect of this work is that the simulation Due to a lack of awareness, preparation and education in
tools developed in the project could be applied to different energy matters, most of the local actors have assumed that their
scenarios (for example quay electrification). In the case of Genoa, simple option, considering the topography of their terminals, was
the measurements that have been carried out highlight higher to place solar panels or photovoltaic equipment on their roofs and
peaks of air pollution during the summer season when there are a no further steps were taken towards a thorough efficiency perfor-
much higher number of ferries calling at the port. mance assessment.
For this project, the mitigation measure suggested for Genoa The main problem encountered by the promoter (GPA) of the
was OPS for two different areas of the port, namely the VTE cargo initiative was that of having to deal with uninformed companies,
terminal, located at the western edge of the harbour area, and the where there is no such thing as an energy management coordi-
Ferry Terminal, located very closely to the city centre. The nator. As a consequence, the PEEP has attempted to work on the
contribution of VTE and Ferry Terminal emissions to the total demand side creating awareness of the existing possibilities to
harbour emissions is around 10%, while the abatement of the increase energy efficiency.
harbour emissions in the area close to the electrified quays is very
high (up to 80%). Another interesting aspect that came out as a 3.2. The port of Hamburg: towards a sustainable energy future
consequence of the work carried out by the GPA with its PEEP is
that of seeing the port as an industrial district in terms of value 3.2.1. Introduction
creation. In such a way, once energy efficiency policies have been Sustainability plays an important role in the port of Hamburg
implemented in the port, it should be easier to transfer them to as the proximity of the port areas to the city and the sensitivity of
other industrial districts in the city. the Elbe river ecosystem require particular attention to sustain-
ability issues in the development of the port. In particular,
sediment and water quality, climate protection, emissions to air,
3.1.4. Port authority's approach to energy management and main and energy efficiency are the main environmental issues the port
issues has to deal with (Bauriedl and Wissen, 2002; Grossmann, 2008;
Can the GPA promote energy management and engage in the Merk and Hesse, 2012). Flood prevention has also played an
generation and sale of power within and outside the port pre- important role in the relations between the city and the port
mises? Currently, and while the National legislation of port basin (Von Storch et al., 2008).
activities remains unchanged, this is impossible. The perception Hamburg Port Authority (HPA) is the organisation mandated by
is that, if private operators do not act proactively to exploit the Free and Hanseatic City of Hamburg to manage the port. The
renewable energy sources, the GPA could directly engage in the city of Hamburg is the sole shareholder of the HPA and as such it
development and exploitation of renewable energy sources in ensures that environmental goals are an integral part of HPA
those areas of the port under its responsibility (in any case this strategy (Merk and Hesse, 2012). Since 2011 the HPA has been a
would only allow one to produce energy for internal use in light of member of the Hamburg Eco-partnership (Umwelt Partnerschaft
the outstanding amount of energy consumption). Hamburg), a cooperation among the Chamber of Commerce, the
Another aspect that comes out as being highly problematic is Chamber of Crafts and Trades, the Industry Association and the
the interaction between the different institutional levels (Eur- City of Hamburg, aimed at improving the ecologic balance within
opean, National, and regional/local) involved in the legislation the city of Hamburg, and in general strengthen the correlation
making process in the energy sector in Italy. In this specific case, between protecting the environment and business success.
there has been a regional/local attempt to regulate the energetic Furthermore the HPA has initiated together with the State Minis-
sector by providing incentives for the use of renewable sources tries of Economic Affairs, Transport and Innovation, and the State
following the provisions of specific EU directives, as there was a Ministry of Urban Development and Environment an energy
normative void in the national legislation. cooperation project (“smartPORT Energy”), aimed at developing
For a long time there has been a clear EU framework regarding sustainable energy solutions and improving the energy profile of
the development and incentives linked to renewable energy. But the port.
M. Acciaro et al. / Energy Policy 71 (2014) 4–12 9

An interesting development in the port–city relationship in and the environmental impacts of the plant are currently again
Hamburg is the HafenCity project. This redevelopment of the old being questioned.
port's warehouses and industrial areas stretches over 157 ha and is Another large project is located in the area of Wedel and
the largest urban redevelopment plan currently underway in involves the transformation of an existing coal power plant. The
Europe. The HafenCity project increases the importance of redu- new plant, that is also developed by Vattenfall and that will enter
cing external environmental impacts from the port, as luxury into operation in 2016/2017, will burn natural gas and will operate
homes and urban areas come closer to the waterfront (Merk and by making use of combined heat and power (Vattenfall, 2010,
Hesse, 2012). 2012). The simultaneous production of heat and power through
the coupling of gas and steam turbines (CCGT) is 88% more
efficient than the existing infrastructure, and at completion will
3.2.2. Energy supply generate 400 MW h in heating.
The port of Hamburg and the city of Hamburg have The location will also be used as an energy storage facility,
been investing in renewable energy since the early 1990s, where heat can be accumulated to store power obtained from
when Hamburg pioneered the development of wind energy. wind farms in case of optimal wind conditions. This is one of the
Although these efforts do not aim to place the port authority in major challenges for the use of renewable energy sources, as the
the middle of the energy trade, the HPA is involved directly in power generated is not always met by demand (Vattenfall, 2012).
promoting and exploiting the potential of renewables. These Vattenfall has agreed to invest in the next five years about EUR
synergies are made possible by the prioritisation of renewables 1.5 billion, of which 550 million will be used for the development
within the City of Hamburg and the alignment of the port and expansion of the district heating system.
authority's strategy with such an approach. The city has its own The area of Hamburg also benefits from other renewable forms
energy company, Hamburg Energie, which is active in the exploi- of power generation, from biomass and burning municipal solid
tation of renewables within the city-state and also operates in waste as in the Borsigstrasse plant (that generates on average
electric mobility. 160 GW h per year), the VERA plant (85 GW h) and the Rugenber-
This strategy has been rather successful with the city having ger Damm (75 GW h).
almost tripled the use of renewable energy in the last decade.
Wind has remained the core of the renewable strategy for the city
of Hamburg, with 52.75 MW capacity installed and 58 turbines in 3.2.3. Energy demand
2012 (Deutsche Windguard, 2013). The port area has half of the The Port of Hamburg, with its large industrial complex, is an
share of such wind production, with wind turbines located in important energy user within the municipal state. The largest
Waltershof, Moorburg, and Wilhelmsburg and two large Enercon terminal operator in Hamburg, HHLA, has an approximate energy
E-126 turbines located in the proximity on the Altenwerder demand of 120 MW h per year. This is relatively small in compar-
terminal with a capacity of 6000 kW each. The city is also involved ison with the energy demand of a steel mill operated by Arcelor
in the development of offshore wind parks, for which large Mittal, in the range of one GW h, or a rolling mill operated by
turbines are being tested on the coast in Cuxhaven and Brünsbut- Norsk Hydro, that requires 2 GW h. Europe's largest copper pro-
tel (Free and Hanseatic City of Hamburg and Hamburg Port ducer, Aurubis, is also located in the port, and has a yearly energy
Authority, 2012). requirement of 660 MW h (Pietsch, 2013).
The HPA has an important role in the promotion of renewable In terms of efficiency of port operation the port of Hamburg
energies in the port and a support scheme has been set up to has been active on multiple fronts, from favouring a more
promote the development of solar energy facilities in the terminals energy efficient modal split to the implementation of OPS and
and on warehouse rooftops. Two installations are already the active involvement of terminal operators. As already men-
operational and a third one is being planned. The installation at tioned, a large part of hinterland traffic moves in Hamburg by rail.
the logistics centre near the Container Terminal Altenwerder (CTA) The HPA has developed a tariff system aimed at providing
accounts for power generation of approximately 500,000 kW h per incentives for the use of cleaner diesel locomotives or particle
year. Within the port of Hamburg solar thermal energy has also filters and lower noise brakes (Hurtienne, 2010). These tariffs are
been used. Hot water in the HPA offices is produced thanks to a associated with the incentives provided for environmentally
solar thermal installation on the roof that allows for 56,000 kW h friendly ships (Hamburg Port Authority, 2012). The HPA also
savings every year (European Commission, 2010). focuses on low emissions by operating all harbour vessels on
The harbour is also the location of the largest European port rail low sulphur fuels and providing OPS for inland vessels, mooring
infrastructure and a pilot project is being tested on 880 switches vessels and ferries.
that are warmed up using geothermal energy. The installation is The largest terminal operator in the port, Hamburger Hafen
self-regulating, and the heat transport starts as soon as the und Logistik AG (HHLA), that operates trains and trucks and is also
ambient temperature drops below a critical threshold and is active in logistics and real estate management, is an important
interrupted as soon as it exceeds it. The operation of the facilities player in Hamburg. HHLA, which is 70% state owned, has been
does not produce any emissions and does not require electricity pioneering energy efficiency measures within the port. In addition
(Hamburg Port Authority, 2012; Hurtienne, 2010). to the solar installations mentioned above, the company has an
Near Hamburg thermal power plants are also in operation, extensive sustainability programme. Among the most innovative
currently in Wedel and Tiefstack, and a new plant is planned in solutions is the development of the hub shuttle system that
Moorburg, that have been the subject of large controversies and an improves operational efficiency of train handling by over 10%
international court ruling. The Moorburg Power plant, operated by (Pietsch, 2013).
Vattenfall, would generate electricity (1640 MW) and heat Furthermore one of the main terminals, CTA, has been elec-
(650 MW). The technologies employed are state of the art in terms trified, with a pilot project that develops electrification for its
of fuel utilisation, and the plant will require the handling of automated guided vehicles (AGVs). The terminal makes use of
approximately four million tons of coal, ash and gypsum in the certified green energy and the electrification of the AGVs will have
port (Vattenfall, 2010). The plant would also ensure minimal substantial benefits not only in terms of emission reduction but
interference with the Elbe river, but the operation of the plant also as the vehicles are silent and allowed for substantial costs
that would require 64,000 l of water yearly for the cooling system savings (Hurtienne, 2010). The company is evaluating the
10 M. Acciaro et al. / Energy Policy 71 (2014) 4–12

possibility of using battery packs to store excess electricity The port energy management is then fully embedded in the
produced through wind (Pietsch, 2013). city energy management and complements it. It is then probably
HHLA also manages the terminal Tollerot, which operates a the city of Hamburg that is in a better position to capitalise on the
fleet of electric cars and uses heat generated by burning biogas energy hub position of the port, as it is already partially doing with
produced in the neighbouring sewage handling plant in its controlled company Hamburg Energie.
Köhlbrandhö ft. This accounts for a reduction of 1000 t of CO2 per
year (Pietsch, 2013). The company aims to reduce its carbon
emissions by 30% by 2030 compared with the 2008 levels, and 4. Discussion
by 2012 had already achieved a reduction of 24%, although future
reductions appear more difficult (Pietsch, 2013). From the overview and the case studies presented in the
The other largest terminal operator in Hamburg, Eurogate, has previous sections Hamburg and Genoa already act beyond the
also developed a comprehensive sustainability strategy on its role of energy hubs although clear differences can be identified in
sites, not only in Hamburg but also in Bremerhaven and Wilhelm- the approach and success in intervening in energy matters.
shaven. This strategy includes among other things the develop- Hamburg seems more advanced in the implementation of a
ment of photovoltaic installations on roofs and flat areas, the renewable strategy in close cooperation with the city-state gov-
construction of wind turbines on terminal sites, a 25% emission ernment. Genoa has been among the first port authorities in the
reduction (on 2008 levels) by 2020 and the operation of two Mediterranean basin to articulate a comprehensive energy effi-
woodchip plants for the production of CO2-neutral heat in term- ciency and environmental strategy for the port, encompassing also
inals (Eurokai, 2013). its relations with the city. The implementation of such a strategy
Energy efficiency within the port takes various forms and the is, however, somewhat hindered by the institutional framework in
HPA has been active in promoting energy efficiency awareness which the port operates.
among its employees. HPA employees could bring forward their It should be observed that the role of the two ports along the
suggestions for climate protection measures in a competition. energy chain is more as facilitators than as active promoters of
Most ideas have been implemented and include, for example, energy efficiency. Ports, in their traditional role in the energy
the recovery of energy used for the operation of elevators in the chains, are defined as simple transit points, where energy pro-
Elbtunnel (Hamburg Port Authority, 2012). The HPA has also cesses are passively managed. The port authority, in this case, does
been testing electric vehicles as part of a federal government not engage in trading, generation or purchase of power beyond its
initiative. The CEO of the port, Jens Meier, also advances the direct needs. In the case studies analysed, instead, the port
hypothesis of turning Hamburg in a hub for the transhipment, authorities are under pressure to take a more proactive approach
manufacturing and conversion of electric vehicles (Hamburg Port towards the promotion of energy efficiency.
Authority, 2012). The increasing role of sustainability, in fact, urges port autho-
rities to monitor and coordinate the energy utilisation and power
generation processes internal to the port. This tendency results in
3.2.4. Port authority's approach to energy management and main ports adopting environmental key performance indicators (EKPI)
issues and increasingly making their carbon footprint available (see for
While the port does not appear to consider the development of another good example the Port of Gothenburg). The PEEP of the
energy management as a potential source of additional revenue, port of Genoa and by the energy cooperation “smartPORT Energy”
the commitment of the HPA to energy efficiency is well docu- of the port of Hamburg show that port authorities are starting to
mented. This is probably the result of the importance of environ- develop active plans aimed at reducing or optimising their energy
mental accountability in the Hamburg context, as well as the processes. These plans by necessity include not only port operators
strategic choice of the HPA to characterise the port of Hamburg as and port users, but also energy grid managers and local commu-
a green player. nity managers. The development of renewable activities within
The close relationship among the city, the HPA, and many of the the port, as seen in Hamburg and less prominently in Genoa,
companies present in the port allows for coordination in the implies that the energy networks within the port will increase in
implementation of environmental actions. Although the port is complexity, and port authorities need to become more conscious
not a spatial unity, the HPA has successfully implemented a system players in the port energy system and should be capable of
of incentives and information exchange to foster environmental addressing the environmental concerns, energy efficiency and
practices. sustainability proactively.
The port development plan 2025 (Free and Hanseatic City of On the basis of the experiences of Genoa and Hamburg, a
Hamburg and Hamburg Port Authority, 2012) dedicates one suitable definition of the port authority as a promoter of energy
chapter to the relationship between the city and the port, and management refers then to its role in planning, regulating and
emphasises the importance of ensuring integration between the monitoring energy use within the port. In this function the port
city and the harbour sustainability strategies. The particular authority aims to improve energy efficiency by evaluating energy
characteristics of Hamburg as a city-state also favour the adoption use and implementing new policies and changes where necessary.
of green strategies and the capitalisation on such strategies at a The port authority promotes energy management by coordinating
city level. This is further demonstrated by the selection of Ham- all aspects of energy management, from energy efficiency and
burg as the European green capital in 2011. The port sustainability reduction of the carbon footprint of the port to waste management
strategy is interwoven with the city sustainability strategy and and sustainable development by
with the ecological protection plans that the city-state is pursuing.
A particularly important position is occupied in the sustain-  Encouraging the use of renewable/sustainable energy resources
ability strategy of the city and the port by the river Elbe and in within an organisation or community,
particular the Tidal Elbe project that aims to preserve and enhance  Deriving solutions for carbon management,
the river as an ecological and economic resource. The development  Raising the profile of energy conservation.
of innovative concepts for energy conservation is also coordinated
between the city and the ports, and so are the initiatives to make The two case studies allow for some considerations related to
the port an important touristic attraction for the city. the governance structure of the two ports. While both ports can be
M. Acciaro et al. / Energy Policy 71 (2014) 4–12 11

broadly classified as landlord ports, the differences in the imple- energy dumping points so that energy peaks can be smoothed. The
mentation of the two port governance models have an impact on applicability of such concepts is currently under study in the
the ability of the port authority to promote energy management. e-harbours project (Schäfers, 2012) and the Green EFFORTS project
The Hamburg model allows for greater flexibility and closer (Froese and Toeter, 2013).
coordination between the port and the city, while the Genoa These four functions are not independent. In fact planning and
model results in a more centrally driven approach. In both cases infrastructure decisions have an impact on the equipment and use
great autonomy is left to terminal operators, with the port patterns for terminals and transport infrastructure. The electrifica-
authority providing only soft incentives for energy efficiency. tion of terminal equipment for example can be valuably interfaced
Notwithstanding the actual developments in the two studied to allow the port to dump excessive loads in supply peaks that can
port authorities, the port management literature lacks models that be stored in the equipment batteries. In a more traditional power
can capture the specific characteristics of energy management supply through the main grid, batteries from the terminal equip-
within the port. In the energy management literature concepts ment could be powered at night when energy costs are lower
such as demand-side management (Gellings and Chamberlin, (Schäfers, 2012).
1987) or integrated resource planning (Kreith, 1993) are well Following the argument of Jaccard et al. (1997) PEM decision
established, but have never been applied to ports. The concept of processes can be represented in a hierarchy where infrastructure
community energy management (CEM), or community energy and land use patterns influence the major production processes,
planning (Jaccard et al., 1997) offers some useful insight in the transportation choices and modes, which in turn impact the
way such concepts could be applied to ports. According to Jaccard choices of equipment, vehicles and ship technologies used within
et al. (1997), CEM defines energy strategies that can be imple- the port. These hierarchies are dependent on the choices made at a
mented at various geographical levels and includes planning and higher geographical level (city, region, and country) and are also
management processes. The CEM concept can be extended in the impacted temporally by the choices performed in the past. This
port context to a port energy management (PEM) centred on aspect is particularly interesting in ports that traditionally have
moved along a development path (Wiegmans and Louw, 2011).
 Land use planning,
 Equipment, operations and transportation management,
 Terminal design and operation, 5. Conclusions and policy implications
 Energy supply and delivery.
The paper has investigated the applicability of the concept of
Land use planning refers to the function of port authorities in energy management to the port sector by reviewing two case
planning investment, terminal concessions and allocation of sites studies: the port of Genoa and the port of Hamburg. These two
for redevelopment or green field projects. This function increas- ports have been selected for different reasons. The port of Genoa is
ingly takes into consideration congestion, ship accessibility and one of the few ports to have elaborated a coherent and systematic
the development of transport infrastructure to and within the analysis of its energy profile in relation to its environmental plan
port. The two case studies offer multiple examples of how port in the PEEP. The port of Hamburg is one of the leading ports in
authorities include environmental constraints and energy effi- terms of energy efficiency, and together with the city of Hamburg,
ciency requirements in the planning and development of new has been one of the leaders in promoting the use of renewable
port areas. Modal split guarantees are another example of how the energy sources.
port authority can include energy efficiency considerations in the Neither port considers energy management as a potential
concession phase of a port terminal. source of future revenue. From both case studies it emerges that
The equipment, operations and transportation management energy management in ports is mostly limited to promoting
function refers to the use of energy efficient equipment not only energy efficiency measures and stimulating energy conservation.
for port ancillary services, such as tugging and mooring vessels Ports are increasingly under pressure to reduce their environ-
(see the test within the HPA to convert tugboats to LNG), but also mental footprint and to diversify. While in the case of Hamburg,
influencing the energy efficiency profile of ships visiting the port, energy management appears part of the strategic positioning of
or trucking and railroad operators. Typical examples of actions in the port, in the case of Genoa, this is more in response to societal
such an area are regulation and incentives aimed at the reduction pressure and regulation.
of fuel consumption for ships, as well as the reduction of emissions Both port energy management plans are strongly linked to the
from trucks as in the case of HHLA vehicles (but see also for city strategies. In the case of Hamburg it appears that the city is
example the clean truck programme of the Port of Los Angeles/ the driving force behind a large number of energy efficiency
Long Beach). practices. In the case of Genoa, it seems that it is the port authority
Terminal design and operation consists of the role of the port that takes the role of energy efficiency promoter. The contexts are
authority in fostering the adoption of energy efficient equipment of course very different as Hamburg is a city-state while Genoa has
and processes in terminals as well as energy efficient building and a limited role in shaping the Italian national energy policy.
construction methods. A typical example of such a function is the This paper highlighted the importance of looking at the port
incentives that port authorities can provide for the electrification from the perspective of its energy management strategy advocat-
of container terminals or the development of solar panels on ing a more active role for port authorities. This is the result of the
buildings and warehouses (Froese and Toeter, 2013). increasing importance of energy efficiency in port operations and
Port authorities can influence the energy supply and delivery along the supply chain, and the changing role of port authorities.
by supporting systems that favour energy conservation within the Every port is confronted in different ways with the erosion of its
port and stimulate the development of renewables. In particular competitive position, and the energy management dimension
concepts such as smart grids and virtual power plants could be might help identifying possible strategic improvements. The port
successfully applied in ports and are currently under study in of Rotterdam for example will be confronted with the erosion of its
Hamburg, among other cities. Smart grids are able to overcome the role as a European oil hub, and, as a matter of fact, is already
problems associated with the irregular power supply derived from actively investigating alternative trades (e.g. biofuels). Further case
many renewable energy sources, such as wind or waves. A virtual studies would benefit from the understanding of the importance
power plant consists of joining power generation facilities and of energy management.
12 M. Acciaro et al. / Energy Policy 71 (2014) 4–12

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