Solutions for the Crossroads - Schneider Electric

Solutions for the Crossroads:“Energy Optimizationfrom Plant to Plug…”Aaron Davis, Chief Marketing OfficerPhilippe Delorme, EVP Strategy & Innovation

Solutions of the pastare simply not sufficient for the futureThe world’s energy system is at a crossroads. Current global trends inenergy supply and consumption are patently unsustainable –environmentally, socially, economically. But that can – and must – be altered;there’s still time to change the road we’re on. It is not an exaggeration to claimthat the future of human prosperity depends on how successfullywe tackle the two central energy challenges facing us today: securing thesupply of reliable and affordable energy; and effecting a rapid transformation toa low –carbon, efficient and environmentally benign system of energy supply.What is needed is nothing short of an energy revolution.Source: World Energy Outlook2

Pervasive changesfrom population, standard of living, and technology● Humans created 161 Exabyte of data in 2006, approximately three milliontimes the information in all the books ever written. Projected to be 988 in2010.● In 2005, the average IT network user consumed 3Mb bandwidth per month. In2008, this became 3Mb per day● Microsoft and Google announce new datacenter plans based on location ofcheapest electricity● $12 trillion will be spent for energy in the next 20 years, equaling the spendingof the past 100 years● Between 2002 & 2007 the cost of electricity was multiplied by 3● « Last year human beings produced more transistors than ricegrains…and at lower cost… » - IBM* source: IDC, EMC3

Physical sales ofvirtual goodstopped more than$300M in 200720 milligramsCO 2 persecondThe Internet willproduce 20% ofthe world’sGHG in 10years…4

Welcome to the “inelastic” Digital Worldcreating the requirement for an energy revolution…●Impacting the way we use all types of power●Impacting the way we design and interact with our buildings andhomes●Impacting the way we design and use our production andmanufacturing centers, which in turn drives massive demographicchanges●Impacting our datacenters and personal technology habitsand the Machine to Machine Internet has barely begun!Rates of change are exponential on the problem side… whilesolutions to date have been component and linear…5

The future demands new solutionsand the largest companies must leadInformationTechnologyTraditionalEnergy & AutomationSolutions must take the best of both worlds….The “I” and the “E”6

And we must own this new market spacewhilst maintaining strength in traditional businessesIntelligentEnergyWinning companies will be focused on Intelligent Energy…7

Intelligent Energy:Enabling the architectural integrationof data, power, security, cooling andautomation in the Digital World8

Generation supply mattersbut demand behavior matters most, first!●Over 67% of CO 2 emissions reduction will come from power generationWorld energy-related CO 2emissionsSource: World Energy Outlook 2009, OECD / IEA9

Generation supply mattersbut demand behavior matters most, first!●Over 50% of CO 2 reduction will come from energy efficiencyWorld energy-related CO 2emissions abatementSource: World Energy Outlook 2009, OECD / IEA10

We have 10 years…to fix 4 critical problemsThe quickest wins: 50% of C0 2cutmust come from behaviourGeneration:> 10 years to fixTransmission:> 10 years to fixBuildings and Process:1- 5 years to fixPoint of Use:1-5 years to fixProblems:CO2 EmissionsTransmission EfficiencyCapacity ConstraintsStranded CapacityCapacity ConstraintsStranded CapacityService Entrance CapacityEfficiencyand IntegrationFocusing on point of use architecture provides fastest impact and freesupstream capacity through Power Plant to Plug OptimizationSource: Hot, Flat and Crowded: Tom Friedman11

Behaviour and good system architecture…can they really make a difference?17,096 TWh*Total annual electric power use on earth41%approximately goes to industrial & commercialbuildings or about 6,960 TWh20%**estimation of the % of the 41% wasted due toinefficiency of the traditional building infrastructure,(compared to what is possible for the same cost.)1,392 TWhPotential savings now!France electricityconsumption(536 TWh)*CIA World Factbook 2008**ACEEE Study, 200512

Unintegrated Components13

Yes, a very big difference!26 TWh *The world’s current Photo Voltaic power generation capacitycontinuous equivalent outputEfficient building design are therefore 53+ times greater(purely a behaviour and education issue)Efficient data center design, the savings available in are7 times greater… over 60x!*World PV Industry Report Summary March 16, 200914

The energy equation:a system under tension and conflictGreenProductiveSafeEfficientReliableEnvironmental impactPeople safetyAsset integrityEnergy availabilityEnergy qualityOffer qualityEnergy efficiencyReduced OpexReduced CapexDeployment speedAbility to integrateAbility to scaleCarbon freeEasy installationEasy connection15

From primordial ooze to the modern ageThe evolution of management systems for facilities1Emerging ability to answerbasic questions2Getting better – “separatebut equal”3Moving toward “solutionexcellence”“Facilitymanagement”quasi-systemIntegratedMANAGEMENTsystemThe five management“domains” take shapeThe reign of “domainexcellence”Domain excellence +collaboration evolvestowards “solutionexcellence”16

:the right ecosystem to supportthe convergence of 5 key domainsPowerManagementProcess& MachineManagementSecurityManagementWhite SpaceManagementBuildingManagementpromise :● Guaranteed compatibility / synergy /capability between the 5 domains ofexpertise● Energy monitoring everywhere, withup to 30% EE● Enabled by the right connectingtechnologies :● IP as a common highway● Web services as a common language(SOA architectures)Making energy Safe, reliable, efficient, productive and green17

A complete system approachDomainServicesProductsControlSupervisionEnterpriseCloudPOWERPower QualityEnergy savingsIPMCCLocal MV controlLocal LV controlRenewables energy conversionPower & Energy monitoringPower SCADAEnergy& CO2portalEEMPROCESS &MACHINESContinuous processDiscrete processGeneral machine controlPackagingMaterial HandlingHoistingPump & fan controlProcess Control SCADAMESWHITESPACEPDUs (rack, traditional)UPSCooling (in raw, perimeter)SurveillanceEnvironmental monitoringWhite space monitoringInventory mgt & workflowCapacity simulation & modellingBUILDINGCONTROLLightingHeatingVentilationAir conditioningZone controlLifts & escalatorsBuilding ControlSECURITYAccess controlVideo surveillanceEmergency lightingAlarmsVideo surveillanceAccess controlTHIRD PARTIES18

Solution offer overviewSupervisionEnergy data accessat low costEnterprise portalEnergyManagementServicesPOWERPROCESS& MACHINESWHITESPACESupervisionBUILDINGCONTROLSECURITYSupervision19

What we plan to bring to the marketGeneric BuildingsHospitalsData-centersSeamless inter-connection and integration of Power,Build Control, Security & White space mgt SystemsUniversal Energy monitoring ModuleOne Schneider-Electric Customer portalEasy integration of Security (access/video) inProcess managementSimple integration between Power & ProcessMMM WWW O&GEnhance Non-Permanent Monitoring & ControlCapabilities20

So let’s take a look…21

Water Treatment & Distribution22

Active energy management architectures…from Power Plant to PlugPossibleSavingsElectricitySaved●Industry & Infrastructure 15% 678 TWh●Data Center & Network 30% 410 TWh●Building 20% 1,392 TWh●Residential 15% 552 TWh3,033 TWh annuallySource: US DOE-EIA (Energy Outlook 2007), Green Grid for Data Centers, CIA WorldbookIndustry Buildings are included in building and not in industry. SE estimations of possible savings based upon23best practice design and behaviour changes

Make the most ofyour energySchneider Electric - Division - Name – Date24