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What is a smart city? The Estonian vision for new models of smart city

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Arguably, smart cities represent the meeting point between three of the main themes we will discuss the most shortly – digital transformation, environmental issues, and economic performance. As urbanisation increases, living standards and sustainability progressively change from simple discussion areas to calls for action. After raising awareness, we must investigate all possible solutions impacting a changing world.

From social matters to climate emergencies, research into developing adaptive models of smart cities can provide a vision for the future. For a future spanning beyond the next five or seven years, conceptualising long-term plans to make urban agglomerations more inclusive, efficient, and attentive towards environmental issues. We saw how Tallinn had already made a move towards the development of its smart city model. Further projects in Tartu and the ambitious Finest Twins plan for the Tallinn-Helsinki area make Estonia one of Europe’s urban and social laboratories most committed to change.

Cross-border sustainability between Tallinn and Helsinki

It is not a mystery that Estonia and Finland share ties that go well beyond geography, history, and culture. Now, Tallinn and Helsinki are building a model of smart and sustainable twin cities to establish a paradigm for development at a European level.

The European Commission has established the Smart Cities Marketplace as a centralised hub for urban initiatives, supporting projects like the Finest Twins.

The project is already more than just an idea. Awarded a 32 million euros grant co-funded by the European Union and the Government of Estonia, Finest Twins will create a Centre of Excellence (CoE) for Smart and Sustainable Cities to deepen research and development into new models of municipal smart governance. The project was initiated by Ralf-Martin Soe, a Research Fellow at the Department of Innovation Governance of TalTech. Aalto University (Finland), Forum Virium Helsinki, and the Estonian Ministry of Economic Affairs and Communications are partners.

Tallinn and Helsinki are commonly called “Talsinki”, not by chance. Finest Twins aims to create user-driven, “cross-border-by-default” smart city solutions to improve mobility, energy efficiency, and the built environment. Digital governance and urban analytics offer countless opportunities. Finest Twins relies on ICT to close gaps in regional cohesion and economic development through digitalisation, spill-over effects, and social entrepreneurship.

“Estonia has a very strong international reputation in the field of digital governance. With this project, we would like to add another layer to the story through smart city development”, says the initiator of the project, Ralf-Martin Soe.

Finest Twins will run until 2026, merging Finnish expertise and research resources with Estonia’s knowledge of implementing high-tech solutions. Cross-border smart city governance is possible. In this way, Tallinn and Helsinki are pursuing the unique chance of setting a virtuous example for the rest of Europe.

Energy efficiency in Tartu – from Soviet blocks of flats to smart city grids

Meanwhile, the city of Tartu is taking a major step towards increased energy efficiency. With the European project  SmartEnCity, municipal agencies are contributing to renovating old Soviet blocks of flats (Khrushchyovka). The target is to decrease their current high levels of energy consumption. The buildings will connect to the almost 100% renewable-powered city district heating system. Smart home solutions will monitor the indoor climate and consumption.

Smart City Tartu’s development is driven by the needs of its citizens rather than adopting technologies for appearance. The city’s initiatives address significant issues such as the high energy consumption and costs associated with old Soviet buildings in the centre of Tartu.

Citizen involvement is central to improving living standards in Tartu. The city was one of the first to adopt participatory budgeting, ensuring that residents have a say in important decisions. This participatory approach helps prioritise the community’s needs, particularly in efforts to achieve cost efficiency and energy sustainability through building renovations.

Despite Estonia’s advanced digital public services, there is still work to be done at the municipal level. The goal is to make local services as efficient and predictive as state services, reflecting the vision of a smarter, citizen-focused urban environment.

 

What is a smart city?

A smart city utilises advanced information and communication technologies (ICT) to enhance urban living, improve city services, and foster sustainable development. By integrating smart technologies such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics, smart cities aim to optimise the efficiency of urban operations, improve the quality of life for residents, and promote economic growth. Smart city technologies facilitate real-time data collection and analysis, enabling city leaders to make informed decisions that efficiently address the urban population’s needs. Additionally, the collection, transparency, and security of smart city data are crucial for ensuring that data is available to citizens while addressing privacy concerns and maintaining robust data connectivity.

Importance of smart cities in the modern world

The importance of smart cities in the modern world cannot be overstated. As urban populations continue to grow, the pressure on existing infrastructure and city services increases. Smart cities offer innovative solutions to manage this growth sustainably. Key benefits include:

  • Improved efficiency and operational management: Smart city infrastructure, such as smart traffic management and smart energy grids, enhances the efficiency of city operations. For example, real-time space management and smart sensors in cities help to monitor and optimise traffic and transportation systems, reducing congestion and improving air quality.
  • Enhanced quality of life: Smart city applications improve the quality of life by providing better healthcare, education, and public services. E-services in Estonia, like e-Residency and digital healthcare platforms, offer residents convenient access to essential services.
  • Economic benefits and growth: Smart city projects drive economic growth by attracting businesses and fostering innovation. Estonia’s Test City in Ülemiste provides a unique testing environment for new technologies, supporting economic development and technological innovation.
  • Sustainable urban development: Smart cities promote sustainable practices by integrating renewable energy sources, smart waste management systems, and energy-efficient buildings. Tartu’s initiatives in energy consumption reduction and the use of local solar plants exemplify sustainable urban development efforts.

Key components of a smart city

Smart cities integrate various advanced technologies and innovative strategies to improve urban living. The principles and components of a smart city initiative, including the importance of People, Processes, and Technology (PPT) in their success, are crucial.

Technology and infrastructure
IoT (Internet of Things)

The IoT is a cornerstone of smart city technology. It involves a smart city network of connected devices that collect and exchange data to monitor and manage urban infrastructure and services. In Tallinn, IoT devices are used for various purposes, such as urban air monitoring and traffic flow measurement. These smart sensors are attached to street lighting posts, collecting environmental and traffic data to reduce congestion and noise, thereby improving the urban environment.

High-speed internet and connectivity

High-speed internet is vital for the seamless operation of smart city services. Estonia has invested heavily in high-speed internet infrastructure, ensuring robust city connectivity. This connectivity supports the functioning of IoT devices, smart applications, and e-services, enabling efficient data transmission and real-time communication.

Smart governance
Digital services and e-government

Smart governance in Estonia is characterised by the extensive use of digital services and e-government platforms. Estonia offers many fully digital e-services, including applications for childbirth allowances, business licenses, and public transport information. Integrating these services with the X-Road data exchange layer ensures secure and efficient data sharing between municipal and state databases, streamlining administrative processes and enhancing service delivery.

Citizen participation platforms

Citizen engagement is a key aspect of smart governance. Platforms that facilitate citizen participation in decision-making processes are integral to the functioning of a smart city. Tartu, for example, uses participatory budgeting, allowing residents to have a say in allocating municipal funds. This approach ensures that the community’s needs and preferences are considered in urban planning and development.

Sustainable environment
Renewable energy integration

Estonia’s smart cities emphasise the integration of renewable energy sources. Tartu has implemented a project to retrofit old Soviet-era buildings, transforming them into energy-efficient structures connected to a nearly 100% renewable district heating system. Additionally, using local solar plants and biogas in public transportation contributes to the city’s sustainability goals.

Smart waste management systems

Smart waste management systems in Estonia utilise technology to optimise waste collection and processing. Estonia is planning to be the first country in the world to have a fully digital, real-time monitoring system for waste management, which will also help assess people’s garbage sorting behaviour. The new system will help reduce people’s fears that their carefully sorted garbage is not being taken to the right place.

Efficient transportation
Public transport optimisation

Optimising public transport is a crucial element of smart city planning. In Tallinn, the public transport system is enhanced by real-time information apps that provide up-to-date schedules and live tracking of buses, trams, and trolleys. This ensures efficient and reliable public transport, reducing wait times and improving user experience.

Autonomous vehicles and smart traffic management

Autonomous vehicles and smart traffic management systems are being tested and implemented in Estonian cities. Tallinn and Tartu have introduced self-driving minibuses as part of their public transport system, aiming to improve mobility and reduce traffic congestion. Smart traffic management systems use data from IoT sensors to optimise traffic flow and reduce bottlenecks.

Enhanced quality of life
Healthcare innovations

Estonia’s Smart city initiatives include healthcare innovations, such as telemedicine and digital health monitoring systems. These technologies give residents easier access to healthcare services, improving overall public health. For instance, Estonia’s e-health system allows for the secure sharing of medical records, facilitating better patient care.

Education and e-learning platforms

Education is also a focus of smart city initiatives. Estonia has developed e-learning platforms that provide students access to educational resources online. These platforms support flexible learning environments and enhance educational outcomes by making learning materials readily available to students and teachers.

Estonia’s approach to smart cities, emphasising technology, sustainability, and citizen engagement, is a model for other cities aiming to become smarter and more efficient. Integrating these key components helps create a more livable, sustainable, and connected urban environment.

Challenges and considerations

While smart cities offer numerous benefits, they also present several challenges and considerations that must be addressed to ensure successful implementation and sustainability. These challenges include privacy and security concerns, high implementation costs, technological barriers, and the digital divide.

Privacy and security concerns
Data privacy

One of the primary concerns in smart city initiatives is the privacy of data collected from various sources. Smart cities rely heavily on data from sensors, cameras, and other IoT devices to function efficiently. However, this data often includes sensitive personal information that, if mishandled, can lead to privacy violations.

Ensuring that data collection and storage practices comply with privacy regulations is crucial. For example, data security is a significant consideration in Estonia, given the extensive use of digital services and e-governance platforms.

Cybersecurity threats

Smart cities are attractive targets for cyberattacks due to their reliance on interconnected systems and vast amounts of data. Cybersecurity threats can disrupt city services, leading to significant financial and operational consequences.

Ensuring robust cybersecurity measures are in place to protect smart city infrastructure is essential. Estonia has been proactive in this regard, implementing strong cybersecurity frameworks to safeguard its digital systems and infrastructure.

High implementation costs
Initial investment

The development and deployment of smart city technologies require substantial initial investment. This includes the cost of installing IoT devices, upgrading infrastructure, and developing new digital platforms. The financial burden can be a significant barrier for many cities, particularly those with limited budgets. While smart city projects’ long-term benefits and cost savings are substantial, securing the necessary funding upfront can be challenging.

Maintenance and upgrades

Maintaining and upgrading smart city technologies also incurs ongoing costs. As technology evolves, cities must continually invest in updates and improvements to keep their systems efficient and secure. This requires a sustained financial commitment and can strain municipal budgets. Estonia’s continuous investment in its digital infrastructure highlights the need for long-term financial planning in smart city projects.

Technological barriers and digital divide
Infrastructure limitations

Not all cities have the existing infrastructure needed to support smart technologies. Upgrading legacy systems and integrating new technologies can be complex and time-consuming. In some cases, the existing urban infrastructure may not be compatible with modern smart city solutions, necessitating extensive overhauls. Estonia’s experience shows the importance of a phased approach to infrastructure development, allowing gradual integration of smart technologies.

Digital divide

The digital divide refers to the gap between individuals and communities with access to modern information and communication technologies and those without. This divide can lead to unequal access to services and benefits in smart cities. Ensuring all residents can participate in and benefit from smart city initiatives is a significant challenge. Addressing this issue involves providing affordable internet access, digital literacy programs, and inclusive technology policies. Estonia has made significant and successful strides in digital inclusion, but bridging the digital divide remains a priority.

Technological literacy

The successful implementation of smart city technologies requires access to technology and the skills to use it effectively. Enhancing technological literacy among city officials, service providers, and residents is crucial. Training programs and educational initiatives can help build the necessary skills to utilise smart technologies effectively, ensuring everyone can benefit from smart city developments.

Lastly, while smart cities offer transformative potential, addressing challenges related to privacy and security, high implementation costs, and technological barriers is essential for their successful and sustainable development. Estonia’s proactive approach in these areas provides valuable lessons for other cities aiming to become smarter and more efficient.

 

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