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1 DESCRIPTION OF THE GROUP, AND ITS STRATEGY, MARKETS AND BUSINESSES<br />

R&D STRATEGY<br />

The project will form a showcase of technology from 2015 with the<br />

development of two platforms in Lyon and Grenoble.<br />

This experiment will involve nearly 1,000 residential customers and<br />

40 tertiary sites in urban areas.<br />

MILLENER: the MILLENER research project (One Thousand Energy<br />

Management Installations on the Islands) aims to help reduce user<br />

energy consumption and to integrate the intermittent renewable<br />

energies more effectively into the distribution networks so as to<br />

guarantee the real-time balance between electricity demand and<br />

production.<br />

It takes account of the particularities of a non-interconnected isolated<br />

network, like that of the islands, and the need to make users aware<br />

of how to manage their consumption. These experiments will also<br />

include installation of photovoltaic panels, energy storage systems<br />

and management of electrical equipment. The experiments will take<br />

place in Corsica, Guadeloupe and Reunion.<br />

Co-innovation around electrical vehicle<br />

Ease of charging will be one of the key factors in public acceptance<br />

of electric vehicles and is therefore an important line of research for<br />

<strong>Schneider</strong> <strong>Electric</strong> and its partners.<br />

A close partnership was established with Renault regarding<br />

induction charging, dispensing with the need for cable connection.<br />

The theoretical studies and the fi rst prototypes showed that the<br />

system performance achieved over 90%, meaning a system rollout<br />

can be planned and the project has entered the development<br />

phase.<br />

Contribution to standards<br />

Effective energy management uses a measure and control that is<br />

always more precise, resulting in effective and less expensive means<br />

of communication. This is why <strong>Schneider</strong> <strong>Electric</strong> is one of the<br />

most active members of the ZigBee consortium and is particularly<br />

involved in the proposal for a protocol called Green Power, a radio<br />

communication with extremely low energy consumption which can<br />

be used in self-powered devices (e.g. by solar power).<br />

2011 saw the acceptance of the Green Power standard by the<br />

ZigBee consortium, opening the way to applying it industry-wide.<br />

Energy effi ciency in buildings is regulated by a European Commission<br />

framework directive: the Energy Performance of Buildings Directive<br />

3.4 Human capital<br />

The main force behind <strong>Schneider</strong> <strong>Electric</strong> R&D is its global network<br />

of 11 ,000 employees who are directly involved in research and<br />

development or technical engineering activities in 26 countries and<br />

over more than 70 sites.<br />

In order to profi t fully from this collective expertise, an ambitious<br />

programme was launched to support the networks of expertise<br />

in key domains formally identifi ed according to the Company’s<br />

strategy. For each of these domains, a formal strategy is defi ned<br />

an implemented by a dedicated network of experts, both internal<br />

and external:<br />

• identifi cation of trends and signs of weakness in the domain;<br />

• participation in structured research projects and partnerships;<br />

28 2011 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC<br />

(EPBD), rewritten in 2010, defi nes the requirements for technical<br />

systems, their on-site inspection and in particular for the active<br />

control systems such as the automation, control and monitoring<br />

systems. Within the context of this directive, a European<br />

standardisation committee proposed a standard regarding the<br />

impact of these systems on building performance: EN 15232. This<br />

standard proposes classifying systems into performance classes in<br />

the same way as for electrical domestic appliances but with only<br />

four levels A, B, C and D – class A having the highest performance<br />

(26% - 52% reduction in energy consumption according to building<br />

type), while class D identifi es the lack of automation and/or ineffi cient<br />

systems and requires improvement.<br />

In the same spirit, the European association eu.bac (European<br />

Building Automation Controls Association), with presidency held<br />

by <strong>Schneider</strong> <strong>Electric</strong>, in 2009 launched a programme to promote<br />

standard EN 15232 consisting of the implementation of periodic<br />

inspections on the systems site to check certifi cation as well as to<br />

monitor performance over time: EEBACS, for energy effi ciency of<br />

automation systems. <strong>Schneider</strong> <strong>Electric</strong> is the leader of this initiative.<br />

Supporting Sustainable Development<br />

In line with <strong>Schneider</strong> <strong>Electric</strong>’s commitment to sustainable<br />

development within the framework of the BipBop programme,<br />

the Company has worked for two years on a project involving a<br />

concentrated solar power plant adapted for communities that are<br />

not connected to the electrical grid. Compared to photovoltaics,<br />

the concentrated solar power process has many advantages in this<br />

type of application:<br />

• energy storage capacity, in the form of heat, that is economic,<br />

safe and environmentally friendly compared to batteries that can<br />

be stolen and need to be recycled at the end of their working life;<br />

• use of residual heat for associated activities, such as crop drying<br />

or water purifi cation;<br />

• simple maintenance and ability to build the heaviest and bulkiest<br />

components locally.<br />

The project, which brings together <strong>Schneider</strong> <strong>Electric</strong> and fi ve smaller<br />

companies, has obtained fi nancing from ADEME (Environment<br />

and Energy Management Agency) to start on the prototype and<br />

to confi rm the business model. The project has also received<br />

money from the MEDEF (Movement for French Companies) for<br />

collaboration between startups (STIRAL) and large companies.<br />

• structuring of critical domain expertise;<br />

• and implementation in the Group’s R&D programmes.<br />

A supplementary network of R&D centres<br />

In addition to ensuring <strong>Schneider</strong> <strong>Electric</strong>’s presence in the main<br />

areas of expertise and innovation, the role of R&D centres is to<br />

develop the critical expertise given above for the whole of the<br />

Group. It is an additional area of collaboration between members<br />

of the Innovation and Technology Board to organise R&D in the<br />

centres of excellence located within the Group’s fi ve R&D hubs.

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