Martin Zuiderwijk Customer Innovation
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1 1 Martin Zuiderwijk Customer Innovation Operational Deployment Asia Pacific Building a New Electric World Customer Innovation Perimeter Majors Cross Borders National Champions Specialists Local Generalists Panelbuilder Offices Retail Industrial Hospital Data Centers Hotels* Building Customers Markets Innovation Solutions Mega Contractors Specialists Local Contractors Electricians Majors Specialists Midsize Generalists Diffuse Generalists Contractor Designer Water Large Sites* Power Transmission* Distribution Supply Infrastructure Energy Leaders Second League Emerging Diffuse Utilities Identify, develop & deploy Innovation Slide 2
2 Customer Innovation - Missions Bring the Customer Voice into Power & Schneider Electric Bring Competition & Market Intelligence to Power Drive an Innovative Strategy in Power Develop & Deploy Innovative Solutions in Countries Deploy Customer & Market approach in Countries Slide 3 Customer Innovation Cycle & Work-flow Produce Solutions and Products Building Panelbuilder Listen... Customer s voice Competitors intelligence Innovate Innovative Customer Solutions Strategy & Acquisition Infrastructure Energy Designer Contractor Utility...that the Customer will want and need Country development...listen Customer s voice «Listening to the Customers voice allows to innovate and find Solutions or Products that will be important for our Customers and generate new Business» Slide 4
3 5 - Global Development and Schneider Electric's Commitment Building a New Electric World A world leader in Power & Control Electrical Distribution # 1 worldwide Automation & Control # 2 worldwide Make power safe, available and reliable Control and monitor machines and installations, protect people Energy management Ensure uninterrupted and high quality power, optimise energy consumption Slide 6
4 Close to you with strong local operations Sales and employees by geographical region Schneider Electric in figures 13.7 billion revenue in 190 countries 105,000 employees* Local presence in 106 countries more than 200 factories 6,500 R&D people in 25 countries Source: 31/12/2006 *workforce including permanent and temporary employees North America 27% Rest of the world 8% Europe 47% Asia-Pacific 18% % of revenue in emerging countries Slide 7 Contributing to our customers performance Make electricity increasingly safe and easy to use Integrate more intelligence and communication capabilities Guarantee product compatibility Make installation easier Optimise installation upgrade Serve market needs more effectively Local presence -> share & understand customer needs Dedicated organisations to develop core competencies End-to-end solutions by type of application (elevators, packaging, textiles, etc.) Customer support throughout installations life cycles Offer worldwide availability Compliant with international and local standards (IEC - NEMA - UL - ANSI - BS - CCC - JS) Slide 8
5 A unique offer in four markets Energy & infrastructures availability, safety, operating costs 16% of sales Industry productivity, flexibility, safety, traceability 32% of sales Buildings comfort, communication safety, operating costs 37% of sales Residential safety, comfort, communication 15% of sales electrical networks, water treatment, airports, tunnels, telecom, data centres food & beverage, automobile, electronic, packaging, pharmaceuticals offices, stores, factories, hotels, hospitals, museums, schools, universities single-family homes, apartment buildings Slide 9 A unique offer in the management of power and control core and historical activities Power Low & Medium Voltage Control Industrial Automation and Control Building Automation new activities Installation systems & Home control Energy management critical power and cooling services / energy efficiency Services integrated, communicating and smart products, equipment and systems Slide 10
6 Expanding into new businesses A targeted acquisitions strategy Energy management MGE UPS Systems (in 2004) Power Measurement Inc. (in 2005) APC (in 2007) Installation systems & control Clipsal, leader in Asia-Pacific (in 2003) Juno Lighting, leader in the US (in 2005) Merten in Germany,OVA in Italy, AEM in Spain (in 2006) Building automation TAC (in 2003) Abacus Engineered Systems (in 2004) ABS EMEA (in 2005) and IBS (in 2006) in the US Industrial automation Kavlico Corporation in the US (in 2003) Elau AG in Germany (in 2005) BEI Technologies Inc. (in 2005) Citect (in 2006) Slide 12 Energy Efficiency Mission Schneider Electric is committed to improving its customers business competitiveness through improved energy management and energy savings A wide range of energy efficiency solutions, services and products for the building, infrastructure, industry and residential markets People and expertise to recommend and support the best solutions to meet our customers growing focus on energy usage An Energy Efficiency Company Program has been established by executive management to rapidly build and deploy a clear differentiating position in the Energy Efficiency market, meeting customers growing focus on energy usage Slide 13
7 Energy Efficiency, a rising concern Generation capacities and grids Deregulation Deregulation of both production and supply of gas and electricity (while transmission and distribution remain regulated) implies to build new business models significantly different from traditional ones Huge investment ($16 trillion worldwide) is needed involving an increase in price of both gas and electricity Energy Efficiency Demand is booming Because of the lack of electricity generation capacity, peak prices are becoming very high and volatile Policy and environment Kyoto protocol implementation involves new constraints to be integrated in today s utility business models Natural resources (oil & gas) are declining In the consumption regions such as Europe and North America, energy sourcing is becoming crucial and focuses major attention of key energy players Slide 14 Energy Efficiency : a business opportunity Buildings : the biggest consumer hence a priority Consume over 40% of total energy 3 key areas : HVAC, lighting and integrated building solutions Renovation can yield up to 30% of energy savings Industry : a key target, especially around motors Energy represents 25% to 50% of production costs Motors account for 60 % of the electricity usage Average facility can reduce its energy consumption by 10 to 20% Residential : fragmented but high potential! 20% to 25 % of the consumed energy (EU & US) Using energy efficient products may save 10 to 40% of electricity Slide 15
8 Lifecycle Building Costs Slide 16 Energy Use Retail Buildings 37% Lighting 30% Space Heating 10% Space Cooling 6% Water Heating 17% Other Healthcare Buildings 28% Water Heating 23% Space Heating 16% Lighting 6% Office Equipment 27% Other Slide 17
9 Focus on Three Strategies for Comprehensive Energy Management Reduce Consumption of Energy Reduce consumption of all types energy in all aspects of an operation Optimize Energy Cost Reduce the acquisition cost of energy utilized by an operation Comprehensive Energy Strategy Reduce Consumption Improve Reliability & Availability Sustain gains though reliable and efficient equipment operation Minimize risk of outage through design and strategy Optimize Utility Costs Improve Reliability & Availability Slide 19 Building Management System HVAC and lighting contribute to 80% of energy used in buildings. Building Automation and Control Systems are the tools to drive energy consumption down dramatically. Implementation, from design to commissioning, should be carried out in a effective way to achieve optimum results. Energy optimisation and savings features include: Scheduled-based heating, ventilation, cooling and lighting control. Occupancy-based environmental controls. Monitor energy consumption through customisable reports. View trends and real-time information. Leverage information from power meters, variable speed drives and lighting controls, to HVAC systems. Remote access to the system from anywhere at anytime. On-going service and support. Slide 20
10 Harmonic Filtering Eliminate power quality problems: limit voltage fluctuation, improve operating conditions and efficiency, reduce the electrical energy invoice and allow optimisation of the network. The harmonic level of a specific system can be controlled Certain equipment such as drives, inverters, UPS, filters and discharge lamps generate harmonics. The harmonics strain the network. Voltage distortion overload cables, cause failures of relays and circuit breakers and disturb many types of equipment such as computers, telephones etc. Slide 21 Critical Power How can a customer manage energy more efficiently? Being energy efficient means efficiently managing potential power quality issues and power outages. Securing power can increase power efficiency depending on the company's sensitivity to electricity. In most cases, this must be taken into account along the entire installation life cycle. From design of the installation to implementation with appropriate equipment, and then to operations and services. Slide 22
11 Power Measurement You can save money, improve efficiency, and track nonquality with the following: Demand and Power Factor Control - Avoid penalties with automated load shedding, scheduling, peak shaving or capacitor bank control. Understand Consumption Monitor energy usage patterns and detect abnormal consumption. Drive Energy Usage Accountability - Allocate energy volume and costs by cost centres, product, usage, shift, etc. Leverage Existing Assets - Integrate existing infrastructure through energy pulsing and totalisation to scale your energy management system. Maintain Equipment Efficiency - Base your maintenance schedule on actual operating history. Slide 23 Lighting Control System Clipsal C-Bus Lighting control Dimming systems to provide the optimum level of lighting Occupancy sensing to switch off unnecessary light loads Light-level sensing with automatic dimming and shutter control Central monitoring and control Time scheduling control of light loads Slide 24
12 Building HVAC 70 to 80% of HVAC applications are fan applications. Compared to conventional installations, (motor starter and flow regulation by outlet valve), AC drives allow you to save up to 50% on energy consumption. On top of that, the energy saving law of the Altivar 21 allows you to optimise the motor control according to the load (air density). This results in a few additional percentage of energy savings. Using ECO8 software you can easily estimate energy savings according to your pump or fan applications and duty cycle. At 80% of nominal flow, the energy consumption is 95% of nominal power with conventional installations instead of 50% with AC drives. Slide 25 If you do what you ve always done, you ll get the same result Slide 28
13 Owner-occupied Building Slide 29 Tenant-Occupied Building Slide 30
14 Best Practices - Fundamental Slide 31 Best Practices - Advanced Slide 32
15 Best Practices - Advanced Slide 33 Best Practices - Advanced Slide 34
16 To close: Focus on Three Strategies for Comprehensive Energy Management Reduce Consumption of Energy Reduce consumption of all types energy in all aspects of an operation Comprehensive Energy Strategy Reduce Consumption Optimize Energy Cost Reduce the acquisition cost of energy utilized by an operation Improve Reliability & Availability Sustain gains though reliable and efficient equipment operation Minimize risk of outage through design and strategy Optimize Utility Costs Improve Reliability & Availability Slide 35 Building a New Electric World
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