Tackling energy challenges through Energy Efficiency Solutions July 2008 Committed to the energy dilemma… we are "Energy Optimists" 2 ÷2 x The increase in energy consumption by 2050 The CO2 emissions reduction to avoid dramatic climate changes by 2050 Schneider Electric - Energy Efficiency - 07/2008 We provide solutions for energy efficiency energy audits energy efficiency enabling products energy management solutions … for residential, commercial and industrial buildings … for industrial processes 2 The energy dilemma Schneider Electric - Energy Efficiency - 07/2008 3 The energy and CO2 emission challenge World consumption up 45% since 1980, 70% higher by 2030 Resource competition & political instability keep prices high ●Coal use continues to grow in emerging markets These trends are here to last unless we Schneider Electric - Energy Efficiency - 07/2008 act ! 4 We can not stop world population or energy demand growth… But we can change the way we use energy and reduce GHG emissions Schneider Electric - Energy Efficiency - 07/2008 5 Buildings and Industry are the 1st GHG emission contributors… ● ≈ 44% GHG contribution comes from buildings & Industry ● 3x larger than GHG contribution from transportation ● In industry &buildings: Land use Change (deforestation) and agriculture Industrial process reactions & fugitive emissions 7% 14% 35% Transportation 44% ● 70% of electricity is generated via coal or hydrocarbons ● 90% of heat and process activities burn hydrocarbons GHG from Building & Industry Energy Use Data extracted from WRI: navigating the numbers 2005 Schneider Electric - Energy Efficiency - 07/2008 6 …and also the first energy consumers ! ●Energy use split 31% >2% Industry Data centres & & Infrastructure networks 18% Buildings 21% 28% Residential Transportation Main energy consumption is for heating, cooling, motors, lighting, electronics and appliances Source: EERE Building Energy Data book 2006 EERE Manufacturing Systems Footprint , http://www1.eere.energy.gov/industry/energy_systems/pdfs/mfg_footprint.pdf Schneider Electric - Energy Efficiency - 07/2008 7 And remember: a small save at home is a big save at the power plant ! Coal 100 units 1 unit saved at home Schneider Electric - Energy Efficiency - 07/2008 35 units 33 units 3 units saved at the power plant 8 30% global energy saving ! 1 year of electricity from 20,000 coal-fired power plants 12 Gigatons CO2e/year Schneider Electric - Energy Efficiency - 07/2008 9 Take the Energy challenge ● Meet energy demand of a growing global population ● Ensure stable and secure energy access for all nations ● Bring electricity to the 1.6 billion people without access ● Stabilize climate impact from energy emissions ● Establish sensible legislation allowing business to grow in an effective and socially responsible manner Schneider Electric - Energy Efficiency - 07/2008 10 Energy challenges & opportunities are everywhere Supply Side Demand Side More Efficient and Cleaner Supply More Efficient Use Conservation & Management Schneider Electric - Energy Efficiency - 07/2008 11 Energy challenges & opportunities are everywhere Supply Side Demand Side More Efficient and Cleaner Supply More Efficient Use Conservation & Management Cleaner supplies will take time to implement Current technologies allow us to target 30% savings Schneider Electric - Energy Efficiency - 07/2008 12 Energy challenges & opportunities are everywhere Supply Side More Efficient and Cleaner Supply Demand Supply Management + Metering & Analysis Demand Side More Efficient Use Conservation & Management Cleaner supplies will take time to implement Current technologies allow us to target 30% savings We must develop technologies and business models to increase renewable energies penetration We must focus on Energy Efficiency to solve our energy dilemma Mid term approach Short term action Schneider Electric - Energy Efficiency - 07/2008 13 Because action is required now, Energy Efficiency is a Must ● Cheaper ● Each kWh saved avoids about 3x the generation production ● Demand response programs cost about half of typical electricity costs ● Quicker ● Technology is available today with short term results ● Cleaner ● “Negawatt” produces no environmental footprint ● Enhanced Security ● EE is homegrown, it reduces dependence on imports Schneider Electric - Energy Efficiency - 07/2008 14 30% Savings are available today… Schneider Electric - Energy Efficiency - 07/2008 15 30% savings are available today… … thanks to a combination of • Up to 8% per year is lost without monitoring and maintenance program • Up to 12% per year is lost without regulation and control systems Optimized usage via automation (5 to 15%) Energy Consumption 70% Efficient devices and installation (10 to 15%) 100% Monitoring & Maintenance (2 to 8 %) Time Schneider Electric - Energy Efficiency - 07/2008 16 … but savings can be lost quickly… ● Unplanned, unmanaged shutdowns of equipment and processes ● Lack of automation and regulation (motors, heating) ● No continuity of behaviours Schneider Electric Optimized usage via automation Energy Consumption 70% Efficient devices and installation 100% - Energy Efficiency - 07/2008 Up to 8% per year is lost without monitoring and maintenance program Up to 12% per year is lost without regulation and control systems Monitoring & Maintenance Time 17 Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps 1 Measure 2 Fix the basics 3 Automate 4 Monitor and Improve Schneider Electric - Energy Efficiency - 07/2008 02/2008 18 Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps 1 Measure ● Energy meters ● Power quality meters 2 Fix the basics 3 Automate 4 Monitor and Improve Schneider Electric - Energy Efficiency - 07/2008 02/2008 19 Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps 1 Measure 2 Fix the basics 3 Automate ● Low consumption devices ● Insulation material ● Power quality ● Power reliability 4 Monitor and Improve Schneider Electric - Energy Efficiency - 07/2008 02/2008 20 Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps 1 Measure 2 Fix the basics 3 Automate 4 Monitor and Improve Schneider Electric - Energy Efficiency - 07/2008 02/2008 ● Building Management Systems ● Lighting Control Systems ● Motor control systems ● Home control systems ● Variable speed drive 21 Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps 1 Measure 2 Fix the basics 3 Automate 4 Monitor and Improve Schneider Electric - Energy Efficiency - 07/2008 02/2008 ● Energy management software ● Remote monitoring systems 22 Lifecycle solutions for Energy Efficiency Schneider Electric - Energy Efficiency - 07/2008 23 Lifecycle solutions for Energy Efficiency Energy Audit & Measure Schneider Electric - Energy Efficiency - 07/2008 24 Lifecycle solutions for Energy Efficiency Energy Audit & Measure Passive Energy Efficiency Fix the basics Low consumption devices, insulation material, power factor correction Schneider Electric - Energy Efficiency - 07/2008 25 Lifecycle solutions for Energy Efficiency Energy Audit & Measure Passive Energy Efficiency Fix the basics Low consumption devices, insulation material, power factor correction Schneider Electric - Energy Efficiency - 07/2008 Optimise through automation & regulation HVAC control, lighting control, variable speed drives… 26 Lifecycle solutions for Energy Efficiency Energy Audit & Measure Passive Energy Efficiency Fix the basics Low consumption devices, insulation material, power factor correction Schneider Electric - Energy Efficiency - 07/2008 Active Energy Efficiency Optimise through automation & regulation HVAC control, lighting control, variable speed drives… Monitor, maintain, improve Meters installation, monitoring services, EE analysis software 27 What we can do for you? Schneider Electric - Energy Efficiency - 07/2008 28 Schneider Electric is involved in 72% of end user energy consumption We can help you make savings! Schneider Electric - Energy Efficiency - 07/2008 29 Where are the savings ? Industry & infrastructure Data centres & networks Buildings Residential Power & cooling can reduce power consumption by 20 to 30% Renovation can yield up to 30% of energy savings EE products may save 10% to 40% in electricity 25% savings would save 7% of the world’s electricity Power & cooling systems is 50% of electricity usage Consume 20% of total energy 20% to 25 % of consumed energy (EU & US) Motors, account for over 60% of electricity usage Saving energy improves DC infrastructure efficiency 3 key areas: HVAC, lighting & integrated building solutions Lighting & appliances over 40% Average facility can reduce consumption by 10 to 20% Schneider Electric - Energy Efficiency - 07/2008 30 Energy saving ROI improves as energy prices rise Energy price Years paybacks* 0,11 5,0 0,105 4,5 Cents/KWh 0,1 0, 095 4,0 0,09 0,085 3,5 Years Based on an actual commercial building. ●Project Cost $1M, ●Electricity saving 3500MWh ●Project cost and energy savings fixed. 0,08 3,0 0,075 0,07 2,5 0,065 0,06 2,0 2000 2001 2002 2003 Payback time has decreased 30% due to increase in energy prices Schneider Electric - Energy Efficiency - 07/2008 2004 2005 2006 over 5 years •Example based on a US commercial building project •DOE -US Average Retail Cost of Electricity 1993 thru 2007 31 We contribute through our solutions ! • Energy Audits • Consulting services Schneider Electric - Energy Efficiency - 07/2008 • Building Management Solutions • Power management solutions • Motor control solutions • Lighting control solutions • Home control solutions • Monitoring services 32 Solutions for residential & small buildings ● Enabling products ● Dimmers, timers, movement & presence detectors, specific switches, light sensitive switches ● Programmable time switch for HVAC & Motors ● Variable speed drive for motors ● Management systems ● Shutter control systems ● Lighting Control systems ● Home control systems ● Added value services ● Remote control ● Multimedia control ● Alarm handling Schneider Electric - Energy Efficiency - 07/2008 33 Solutions for medium & large buildings ● Enabling products ● Dimmers, timers, movement & presence detectors, switches ● Thermostat, floor heating control ● Variable speed drives for HVAC, pumps, motors ● Power compensation and filtering products ● Management systems ● Building management systems ● Power monitoring and analysis ● Added value services ● Site audits ● Data Collection and Analysis ● Financial Analysis & ROI Validation, ● Planning of Improvement plan ● Remote monitoring and optimization Schneider Electric - Energy Efficiency - 07/2008 34 Solutions for industry and infrastructure ● Enabling products ● Variable speed drives for motors ● PLC for production throughput optimization and machine "mute" mode management ● Power compensation and filtering products ● Management systems ● Power monitoring and analysis ● Process supervisory systems ● Added value services ● Site audits ● Data Collection and Analysis ● Financial Analysis & ROI Validation, ● Planning of Improvement plan ● Remote monitoring and optimization Schneider Electric - Energy Efficiency - 07/2008 35 Solutions for data centers & networks ● Enabling products ● Ultra-high efficiency UPS, HV AC power distribution ● Scalable, Modular Power and Cooling Systems ● Close-coupled cooling, Thermal Containment ● Electrical distribution and industrial control products ● Management systems ● Capacity & Change Management software ● InfraStruXure Central DC Management software ● Building & Room surveillance & Security ● Added value services ● Plan - Assessment and site audits ● Build - Project Management, Installation, Testing, Integration ● Operate - Cleaning, Inspection, Corrective maintenance Schneider Electric - Energy Efficiency - 07/2008 36 More than 50 EE standard solutions and 300 EE enabling products are available Our EE labels help you make the right choice: Schneider Electric - Energy Efficiency - 07/2008 37 Customer references ● US National Carwash company : 33% energy savings thanks to motion, drives and electrical distribution solution ● Amiens, France, reduces its lighting bill by 30% thanks to Lubio™ optimised lighting solution ● Delhi, India cut its power thanks to equivalent systems consumption by 40% ● Eco-building Technopolis : 30% energy savings thanks to T.A.C Vista® through continuous monitoring of water treatment, HVAC, lifts and key functions of the building Schneider Electric - Energy Efficiency - 07/2008 38 Schneider Electric: your energy specialist for significant and sustainable savings energy manager ● Your … improving business via metering, monitoring, control solutions and cost optimization services energy expert ● Your … improving business via consultative services, technical and behavioral energy action plans and implementation services green partner ● Your improving business via environmentally friendly and energy reducing products Schneider Electric - Energy Efficiency - 07/2008 39 Make the most of your energy Schneider Electric - Energy Efficiency - 07/2008 40