Energy Master Planning on neighbourhood level: learnings on stakeholders and constraints from the Norwegian case of Ydalir

Abstract

While energy planning on the building level is characterized by a limited number of stakeholders and a clear ambition setting, this situation changes when expanding to a neighbourhood level. Depending on the context of the neighbourhood, energy planning is challenged to align several stakeholders and define common ambitions and measures suitable to optimize the outcome of energy planning. In Norway, energy planning on neighbourhood level is a relatively new approach. We apply the Energy Master Planning (EMP) concept developed during the IEA EBC Annex 73 to describe the planning process within the Norwegian case study of Ydalir, which ambition is to become zero-emission. Through a qualitative research approach, we identify stakeholders involved, their role and impact, and indicate constraints on EMP implementation so far. We show how the concept of EMP must be further developed, to reply to evidence-based constraints in implementing and reaching for high ambitions in cutting down energy use and emission. This paper relates to the UN development goal 11 of Smart Cities and Communities.

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Energy Master Planning on neighbourhood level: learnings on
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1
Energy Master Planning on neighbourhood level: learnings on
stakeholders and constraints from the Norwegian case of Ydalir
Daniela Baer, SINTEF Community, Norway*,
Matthias Haase, SINTEF Community, Norway
*Daniela.Baer@sintef.no
Abstract. While energy planning on the building level is characterized by a limited number of
stakeholders and a clear ambition setting, this situation changes when expanding to a
neighbourhood level. Depending on the context of the neighbourhood, energy planning is
challenged to align several stakeholders and define common ambitions and measures suitable to
optimize the outcome of energy planning. In Norway, energy planning on neighbourhood level
is a relatively new approach. We apply the Energy Master Planning (EMP) concept developed
during the IEA EBC Annex 73 to describe the planning process within the Norwegian case study
of Ydalir, which ambition is to become zero-emission. Through a qualitative research approach,
we identify stakeholders involved, their role and impact, and indicate constraints on EMP
implementation so far. We show how the concept of EMP must be further developed, to reply to
evidence-based constraints in implementing and reaching for high ambitions in cutting down
energy use and emission. This paper relates to the UN development goal 11 of Smart Cities and
Communities.
1. Introduction
Reaching for the climate gas reduction goals of the Paris Agreement, stakeholders on all geographical
and organizational levels from nations, regions, cities and communities are challenged. At the national
level, the Energy Efficiency Directive has triggered numerous positive developments in the European
Union member states by setting targets to incentivise and enable investment in energy efficiency
programmes across all sectors. However, member states have yet to fully implement the directive, and
additional support in building capacity and know-how is needed. A multitude of incentives and
regulations are introduced on a national and regional level to foster the clean energy transition. The city
and especially the neighbourhood level - are pointed out as one of the main important areas for change.
This is due to the fact that cities consume ca. 80 % of the total energy and are accountable for ca. 75 %
of global GHG emissions [1].
Urban planning aims to improve coherence in public action by transcending spatial sectoral
boundaries [2]. Therefore, energy planning issues and experts has begun to enter typical urban planning
areas since the 1990s, thereby challenge urban planners to integrate this new aspect into a holistic form
of urban planning. Energy planning in general is defined as the process of finding solutions to the best
mix of energy demand and supply in a given area [3]. Challenges in urban energy planning lies in its
multi scales aspect (temporal and geographical), but also in the necessity to take into account the
quantitative (economic, technical) but also qualitative environmental impact [4].
At an urban level, sustainable goals for energy and climate are written down in different political
documents, all aiming for to fulfill the UN's sustainability goals by 2050. In Norway, municipalities and
cities are obliged to develop local climate and energy plans to define their goals and ambitions through

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by the national government [5]. Additionally, municipal implementation plans define the realization of
these goals through diverse measures, mainly focusing on sectoral approaches as mobility or the building
sector.
While municipal goals are set on regional and urban scales through climate and energy plans, goals
for buildings and blocks of buildings are set by their individual owner. Setting energy and emission
goals at the intermediate level between city and buildings is a new approach in Norway, and actually
mainly developed through the research centre for Zero Emission Neighbourhoods in Smart Cities
(ZEN), which is a frontrunner in developing this new research perspective in Norway. A Zero emission
neighbourhood aims at reducing its direct and indirect green house gas emissions towards zero over its
lifespan. At the time writing, a neighbourhood is defined within the ZEN centre as a group of
interconnected buildings with associated infrastructure, located within a confined geographical area [6].
From a governance perspective, the neighbourhood level offers the appropriate arena for collaboration
between different sectors and stakeholders in order to enable a holistic and inter-sectoral approach to
energy planning as an integrative part of sustainable urban development [7].
1.1. Energy Master Planning (EMP) on neighbourhood level
The concept of energy master planning provides a roadmap for planning, designing, implementing
and monitoring for an efficient, practical, cost effective and robust energy infrastructure system. EMP
can be applied on different geographical levels as well as carried out in a hierarchic “top down” or in a
“bottom up” process [7].
There are three main steps of EMP; (1) Setting of goals for energy performance, (2) Tactical mid-
term planning phase consisting of the assessment of possible energy solutions, scenario analysis, the
development of a comprehensive plan based on the analysis results and implementation, and (3) The
operational phase, incorporating the measurement of goal achievement and verification [8; 12].
Figure 1. Different stages in Energy Master Planning (EMP)
1.2. Constraints of applying EMP and the role of stakeholders
However, when applying EMP on the neighbourhood level, it is crucial to understand the various
constraints, formed by the stakeholders involved, in order to identify fields of action to improve
processes for successful EMP implementation from planning to operation of the neighbourhood. EMP
has to follow a holistic approach, incorporating thematic areas such as emission, sustainability and
resilience, and must be applied inter-sectoral combining sectors as the built environment, mobility and
citizen life. Through integrative energy design within EMP, multiple benefits can be realized.
The existence of a multi-stakeholder ecosystem with different stakeholders and their individual
visions and interests, does form a wicked problem constellation for zero-emission development, and
thereby challenges the deployment of higher energy ambitions [8]. Stakeholders thereby play a crucial
role for EMP at neighbourhood level, especially as it is stated that it is not inadequate technological
Goal setting Assessment Developing
options
Making a
comprehensive
plan
Implementation Measurement
and verification
Strategic
long-term
planning
phase
Tactical mid-term planning and implementation phase
Operational
phase

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solutions that are the main barrier for reaching energy goals, but lack of collaboration and commitment
from the stakeholders involved, inefficient organizational processes, and an unsupportive framework
for implementation [9,10, 11]. As there are several studies on identifying technical constraints [12], the
studies on governance constraints are limited and challenged by the specific local context of each
neighbourhood.
However, when looking into neighbourhood energy master planning, it is important to understand
the motivation and the stakeholders, and the various constraints which frame the possibilities to
implement a successful energy planning from the involved stakeholders' point of view. In order to be
able to apply principles of a holistic approach to community energy planning and to provide the
necessary methods and instruments to master planners, decision makers and stakeholders; it is essential
to identify and frame the stakeholders and the constraints related to them that bound the options towards
an optimized energy master planning solution.
2. Objectives and methodology
We describe how energy master planning is implemented on neighbourhood level and ask how the
stakeholders and local context challenge the EMP process.
The case study is conducted in the neighbourhood of Ydalir in Norway, which have been committed
to energy and emission ambitious plans. Ydalir is a pilot project within the ZEN centre as well. As
energy planning of the neighbourhood has emerged in the last years in Norway, the case description will
focus on an early phase of neighbourhood development.
This paper is based on document analysis, observation through participation in different workshops
and meetings, as well as qualitative interviews with nine different local stakeholders (land development
agency, municipality, landowners, housing developers and energy company) within the case of Ydalir,
city of Elverum, Norway. We have chosen a qualitative research approach to take into consideration the
new research field in Norway and the specific local context.
3. Results and discussion
3.1. Case description Ydalir, Elverum
The neighbourhood of Ydalir is a new development on a former sandpit, located in the mid-size town
Elverum in the county Hedmark in Norway. It has a size of approx. 430 000 m2, and it is located 1.5 km
from the town center. The estimated timeframe for completion is 2030, and 800 to 1 000 residential
units are planned (approx. 100 000 m2). The residential units are planned as a combination of detached
houses and apartment buildings, and will be built around a school and a kindergarten, which were
completed and opened in autumn 2019.
The main stakeholder is the project owner Elverum land development agency [Elverum
tomteselskap] (ETS), a semi-public organization that aims to enable population growth in Elverum by
developing land for housing and business at a reasonable price. At the beginning of the development in
2015, 80% of the land in Ydalir was owned by the land development agency. Since then, two plots are
already sold to local housing developers. Two private landowners count for the remaining 20% of the
area. Other stakeholders involved are Elverum municipality, seven local private developers which have
signed intention agreements with the municipality, consultant agencies, and the local transportation
agency, the local energy utility company, that will deliver district heating and grid connection, and the
local waste management company.
3.2. EMP steps applied in Ydalir
So far, three phases of EMP have been implemented within the Ydalir case; goalsetting, assessment
and development options and implementation. While two buildings are already completed and in use,
the development of a comprehensive plan is under development. Table 1 lists and describes shortly the
EMP phases implemented and their incorporated measures in a timeline from 2016 until today.

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Table 1. EMP phases in Ydalir and the measures implemented
Phase of EMP
Measure of development
Timeline
Goalsetting
Masterplan development for Ydalir in a cooperative process
including urban design, energy, material use, mobility, blue-
green infrastructure and waste management
2016-2017
Implementation
Technical infrastructure implementation on neighbourhood
level (e.g. way, sewage and district heating system)
2017- 2019
Construction of first buildings in Ydalir: a school and kinder-
garden, opened 08.2019
2018-2019
Assessment and
Development
Options
Analysis of potential energy system performance and
scenarios for development
2019
2 LCA analysis of emissions on neighbourhood scale
2019
Within the goalsetting phase, a masterplan for Ydalir was developed in a collaborative process
facilitated by the project owner. The plan incorporates a wide range of stakeholders, as local housing
developers, consultants, mobility and energy companies, Elverum municipality and researchers of the
ZEN center. Five workshops over a period of six months were dedicated to different aspects of the
project development. These included topics such as aims and vision, energy, building and infrastructure,
user and quality aspects, and transportation. The project owner, ETS, invited deliberately a bit wide to
the five workshops, in order to integrate as many stakeholders as possible in the masterplan development
and create knowledge and commitment for further development. The result of this process is the
masterplan, which shall ensure the realization of basic qualities within the areas of urban design, energy
and material use, blue green infrastructures and waste management, while also being flexible enough to
"open up the possibility to land owners and developers to provide individual solutions based on their
expertise, creativity and ambition" [13].
The ambition for Ydalir is to become a ZEN, the amount of emissions through materials and energy
used within the construction and operation phase of the neighbourhood shall be offset by locally
produced energy [13].
With regard to energy, these general measures are identified within the masterplan to gain for the
ambition:
- Buildings built after passive house standard or even better, and a high use of wood or other
materials with low greenhouse gas emissions as building material,
- District heating based on bioenergy for residential buildings,
- Local electricity generation based on solar cells and bioenergy-based power/heat production.
Within the Assessment and Development Options phase, researchers from the ZEN centre conducted
three studies in 2018 and 2019 to analyse future energy and emission performances.
Lund et al. (2019) applied a Lifecycle Assessment analysis (LCA) model for neighbourhood
development based on a modular structure, integrating buildings, mobility, infrastructure, networks and
on-site energy. The study reveals that regardless of which scenario considered, the Ydalir project does
not achieve the ambitious goal of becoming a zero-emission neighbourhood, taking the existing planning
status as basis for consideration [14].
A second LCA study by Yttersian et al. (2019), applying 'Område-LCA' as a tool, shows how
significant the share of emissions from transportation are, contributing to more than 60 % of the total
GHG emissions in Ydalir [15]. The identified impact of transportation on energy demand and emission
has to be lowered through measures for cutting down transportation demand. One planned measure
incorporated in the masterplan, is the reduction of parking lots on individual detached housing plots and
establishing a joint parking space at a central area. However, the housing developers experienced a lack
of interest from potential buyers due to limited individual parking space. Due to the influence of housing
developers and landowners, the masterplan of Ydalir was reviewed and the parking regulations were
watered down.
The study of Lien et al. (2019) shows that the existing planning of Ydalir will help to perform much
better in terms of reducing emissions than building according to existing building regulations. Taking

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into consideration buildings, infrastructure, energy demand and local energy production, the study also
points out that the establishment of a local energy plant within the system boarders of Ydalir, can help
achieving the zero-emission goal [16]. The local energy company is planning to establish a new
Combined Heat Power Plant (CHP), but outside the neighbourhood of Ydalir. Applying the definition
of the ZEN centre for a zero-emission neighbourhood, which demands the renewable energy production
within the system boarder of the neighbourhood, Ydalir will not achieve the zero-emission goal. Taking
into consideration the listed studies and experienced objections to the masterplan, the realization of the
initial ambitious goals of the masterplan seems doubtable.
The construction of the first two buildings in Ydalir, a kindergarten and a school, is part of the
implementation phase. Opened in August 2019, the school of 6.000 m2 hosts 150 students and offers
room for up to 350 students. Elverum municipality and the contractor won the national price for public
procurement, as the project development process enabled good public-private collaboration from the
beginning. Goals and plans for development where firstly created after a kick-off to ensure that all
stakeholders started from the same point, also enabling energy issues to be incorporated from the
beginning.
On the other hand, the technical and transport infrastructure for the whole neighbourhood was
established parallel to the masterplan development. The ambitious concept of the neighbourhood is
challenged as the infrastructure is built after prevailing concepts and standards, and thereby the
opportunity to implement ideas for urban design developed under the masterplan as shared space are not
implemented. This lowers the potential to exploit the full capacity of energy and emission reduction
through urban design.
A comprehensive plan for future development, building on the latest conducted studies and analysis
(s.a.), is not yet developed. The masterplan for Ydalir is the starting point for that plan, but needs
specification and must be adopted to gain for the primarily ZEN ambition.
3.3. Stakeholders involved and constraints in EMP implementation
The description of the EMP phases applied in Ydalir, indicates already the role and impact stakeholders
play in project development in general, and especially when it comes to the fulfilment of energy and
emission goals. Table 2 lists the main stakeholders involved in the early phase of development in Ydalir.
Each stakeholder and group of stakeholders is described shortly, and the constraints resulting from their
role, stake and position within the project is listed.
Table 2. Main stakeholders involved in EMP and their particular constraints
Stake-
holders
Description
Constraints
Land
develop-
ment
Agency
ETS
- Project owner
- Leading planning and
development process,
especially masterplan
development and
implementation
- Building infrastructure
- Communication and
marketing
- The land development agency in Elverum is the project owner, and
normally their responsibility ends when selling the plots. The further
management of the process has not yet been designated.
- Missing tools to force
developer to follow masterplan goals and
ambitions, which are more ambitious than prevailing regulations (e.g.
Planning and Building Act).
- Setting of appropriate system boundaries: The CHP unit is planned to
be installed in the district heating plant a few kilometres away from
the area, due to practical and economic reasons.
- Interest and need to develop and sell plots in Ydalir within a limited
timeframe due to re-financing investments in (social) infrastructure.
- Ability to facilitate a planning process for an energy system based on
several energy sources (solar, ground heat, district heating based on
biofuels) which are provided by different stakeholders (local energy
company and developers), where sources are c
ombined in an
appropriate way without being too complicated.

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Elverum
munici-
pality
- Formal planning
institution
- Owning and operation of
Ydalir school and
kindergarten
- Contribution to
infrastructure financing
- The size of the Ydalir project covers the estimated demand for
housing in Elverum for the coming 10-
15 years. The recent
designation of another building zone in the eastern part of the city
could jeopardize the implementation of the project within the
contemplated timeframe.
- Limited timeframe to develop school and kindergarten due to political
assignment and demand for both functions within the municipality.
Privat
land-
owners
- Two private landowners,
counting for 20% of area
- One landowner is also
developer and planning
to develop the land self
- Diverse interests between existing landowners, with one being
positive and the other critical to masterplan implementation.
- Critical landowner's resistance problematic to realize holistic energy
and urban design planning.
Housing
develop-
ers
- Building houses in
Ydalir
- Diverse interests in ZEN
goals, individual
interests and visions
- Different visions regarding the goals of development and the
implementation of the masterplan, e.g. parking space restriction in
Ydalir.
- Lack of knowledge to adapt new energy
technologies in an
appropriate way
in the design of the building and the technological
installation itself.
- Lack of knowledge to conduct LCA of planned buildings.
Local
Energy
company
- Providing energy
solutions as district
heating
- Advising developers in
implementing energy
solutions in buildings
- Uncertainty of planning for a local energy system with regard to
housing developer's lack of commitment to ZEN.
ZEN
research
centre
- Providing knowledge to
local stakeholders
through i.e. scenario
analysis of energy
- Defining ZEN concept
and system boarders
- Lack of indicators and guidance to identify appropriate areas for ZEN
development.
- ZEN definition under development during the lifetime of the centre,
e.g. the system boarder restrictions are still discussed, but at the same
used as guidance principles within the pilot projects.
3.4. Main barriers to energy-ambitious neighbourhood development related to stakeholders involved
There are several general factors particularly influencing the Ydalir development with regard to attaining
high ambitions in cutting down energy and emissions. These factors do influence the stakeholders
involved, but on the other hand, they could also be influenced by the stakeholders themselves.
Commitment to the project: The analysis has shown that commitment to the project depends on the
individual stakeholders' visions and agendas. The collaborative development process of the masterplan
was pointed out by the interviewees as an important step for knowledge and trust development besides
the establishment of a common understanding and vision, thereby strengthening the commitment to the
ambitious project goal. ETS got the co-funding for the masterplan development through Enova, the
Norwegian environmental funding agency. Housing developers are indicated as crucial in this phase of
development, as they have to commit to the general vision of Ydalir by developing an energy system
and buildings with climate ambitions that go beyond existing regulations. The masterplan of Ydalir in
its first version contained no parking lots for buildings, but the establishment of a car park. These
ambitions were already lowered and parking spaces allowed, as housing developers feared lack of
interest from buyers. The fear of higher development costs due to higher buildings standards is also
expressed by housing developers, and could influence future commitment.
The timeline is always a factor influencing project development, but especially important as planning
of the energy system and the management of the system, including reducing load on the system, is
depending on the realisation of a minimum quantity of buildings and infrastructure within a limited
timeframe. In this phase of development, windows of opportunities are open with regard to developing
a holistic system. It is much more difficult to realise economies of scale for energy solutions if they are
added step-wise to the neighbourhood system. The time of realisation of community services as the car

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park is crucial for housing developers with regard to developing their own plots. Future buyers may not
be interested to buy houses without own parking lots as long as the planned shared car park at a central
position within Ydalir (s.a.) is not in place.
We have identified a lack of knowledge with regard to different thematic areas. On the one hand,
interviewed stakeholders express that they do not have the knowledge needed to construct following
higher ambitions than the prevailing building regulation TEK 17. On the other hand, there is a lack of
knowledge about how to fulfil the ZEN ambition in the best manner within a collaborative holistic
approach, especially with regard to the management of the process. The project owner, ETS, is managing
the process of development in Ydalir in this early phase, but is normally no longer involved when
infrastructure is established and the plots are sold. The long-term management of the development,
including the implementation and operation phase, is not yet decided.
Last but not least, there is a lack of knowledge how to define the appropriate size and area for a ZEN
development, as well as the design and location of amenities. At the early stage of neighbourhood
development, tools are missing to evaluate primary plans for design of the neighbourhood that builds on
LCA analysis of all sources for emissions as e.g. building materials, energy system, mobility. In the best
case, these tools are used in a collaborative process including all stakeholders to define optimal
development solutions and before fundamental decisions for further development are set.
Uncertainty is a factor in general for project development, but when it comes to ZEN developments,
the uncertainty is particularly high. Ydalir has a stagnating population development, the risk of parallel
designation of building land, and the focus on families and young agers as target group for development
in Ydalir bears an uncertainty with regard to future demand for housing.
4. Conclusion
In our study on the neighbourhood of Ydalir, we have identified the involved stakeholders as well as
stakeholders constraints with regard to EMP and its implementation. The type of stakeholders involved,
how they communicate and how they are involved in the process, plays a crucial role. The main barriers
identified have a strong impact on EMP, and are mainly influenced by the involved stakeholders
themselves. The Ydalir case has shown that a collaborative masterplan development can help to
strengthen the commitment to the project and lowering uncertainty at an early phase of development.
The realisation of this collaborative process was enabled through the initiative, and thereby commitment,
of ETS. The external funding was crucial here, as financial resources for broad stakeholder engagement
are often limited.
For the concept of EMP applied on the neighbourhood level with multiple stakeholders involved, we
learned through the Ydalir case that there is a need to incorporate aspects of stakeholder management
and engagement, process management and tools for the identification of the appropriate neighbourhood
design. As there are today no tools or indicators available as well as a lacking interest from academic
side to identify appropriate neighbourhood sizes, we recommend elaborating and identifying appropriate
neighbourhoods within a multi-stakeholder approach by screening the whole city and/or region. In this
selection process, factors as e.g. constraints with regard to available energy sources, possible
stakeholders involved and their interests, location within the greater urban and regional infrastructure
system has to be considered. We recommend a SWOT-analysis to assess development opportunities
with regard to strengths, weaknesses, opportunities, and threats for neighbourhood development in
general and specifically on realizing ambitious energy and emission goals.
As ZEN development is ambitious and demands a high level of commitment from the stakeholders,
it is recommendable to identify feasible neighbourhoods to be successful forerunner projects. New
approaches with regard to technical solutions as well as process management and stakeholder
collaboration can be tested here, and gained knowledge and experience can be transferred to following
neighbourhoods developments. Successful first ZEN developments are necessary to strengthen
commitment and to tell the good stories. EMP needs not only to incorporate tools for neighbourhood
selection, but as well the consideration of stakeholders that needs to be involved from an early stage
with regard to their knowledge and experience.

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Finally, we raised the question of leadership and process management for applying EMP at
neighbourhood level. Our study showed that for Ydalir, a long-term management structure of the
neighbourhood is not yet decided. The concept of EMP will be further strengthened by identifying good
leadership and governance models for process management through all phases of development,
including the operation phase of a neighbourhood.
Acknowledgements
The authors gratefully acknowledge the support from the Research Council of Norway and its
partners through the Research Centre on Zero Emission Neighbourhoods in Smart Cities (FME ZEN).
Additionally, we acknowledge the support of Enova through the IEA EBC Annex 73 participation.
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