Making Smart Cities a Reality. Today.

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Making Smart Cities a Reality. Today. With Charbel Aoun SVP, Smart Cities Webinar - March 2013

Schneider Electric at a glance The global specialist in energy management Large company Diversified end markets FY 2012 Sales (billion ) billion of sales in 2012 Utilities & Infrastructure 25% Industrial & machines 22% Data centres 15% Non-residential buildings 29% Residential 9% of sales in new economies Balanced Geographies FY 2012 sales Year-end 2012 employees employees in 100+ countries of sales devoted to R&D North America 25% 28 300 Rest of World 18% Western Europe 30% 22 000 44 200 Asia Pacific 27% 42 600 2

The Facts

Fact #1 Cities need to change Cities today and by 2050 Earth s surface World population World population Global energy consumption Global CO 2 emissions Years to double the urban capacity developed over the past 4000 years Schneider Electric - Smart Cities 4

Fact #2 Cities are ready for change Schneider Electric - Smart Cities 5

Fact #3 Every city is unique From history to culture to size to geography to Schneider Electric - Smart Cities 6

Fact #4 Technology is available to help Smart Water Integration Smart Buildings Smart Energy Smart Services Smart Mobility Schneider Electric - Smart Cities 7

The Questions that Cities ask Answered

Questions. What does smart mean for me? Answers! Efficient > livable > sustainable How long does it take? It s continuous improvement Can I become smart? Every city can become smarter Where do I start? How do I fund it? With whom should I work? Can I measure results? Start with your immediate needs Financing schemes help keep CapEx and OpEx low Involving business and local stakeholders, with city leadership Benefits can be measured Schneider Electric - Smart Cities 9

The meaning of smart Urban efficiency delivers liveability and sustainability through continuous improvement Increasing competitiveness Creating jobs An efficient, liveable, sustainable city Improving attractiveness for residents, citizens and visitors Improving the efficiency of the city s underlying urban infrastructures Becoming a better place to live, work and play Improving public services: schools, safety, transportation Schneider Electric - Smart Cities 10

Each & every city can become smart North America >100 Cities Europe >60 Cities Middle East >10 Cities Asia >40 Cities South America >20 Cities Greenfield cities, growing cities, mature cities, cities hosting global events, cities recovering from disasters... Schneider Electric - Smart Cities 11

Smart is about competitiveness Overloaded infrastructure Congestion Environmental targets Pollution Scarcity of resources Tight budgets Hosting a global event Recovering from natural disaster Regenerating urban districts Managing urban expansion Meeting basic infrastructure needs Cities need to solve these challenges to attract investment, jobs & talent! Schneider Electric - Smart Cities 12

New financing models make Smart affordable PPP - Concessionaire Model Operation of infrastructure systems under agreement with city, creating additional revenue for the city Information & Payment Services Provision of information or payment services to city residents & businesses based on collected data Smart City Business Model Performance Contracting Third-party financing of projects with payback out of guaranteed energy, water, or operational cost savings PPP Design, Build, Operate Transfer City government outsources management of systems or infrastructure to private company to realize cost savings Software-as-a-Service (SaaS) Leveraging the cloud to deliver software remotely to multiple customers, significantly reducing capital expenses Schneider Electric - Smart Cities 13

This demands stakeholders collaboration A Smart City will combine public governance, people ownership and business collaboration Governments Includes National, regional as well as local city officials Private Investors Includes international development banks and private organizations People & Communities Planners & Developers Includes real estate developers, urban planners, & property managers Industry suppliers Includes ICT, energy, transportation & infrastructure vendors & service providers Utilities Includes city and private electric, water, & gas utilities NGO s & associations Includes all local organizations - citizens, businesses & NGOs Schneider Electric - Smart Cities 14

Urban efficiency is real What we have learned from our 200+ projects around the world Smart Buildings are real: Up to 30% energy savings Up to 15% reduction in operating costs Smart Collabora<on Smart Energy is real: Up to 45% outage reduction Up to 15% reduction in operating costs Smart Services are real: Up to 20% reduction in street crime from CCTV Up to 30% reduction in public lighting energy use Smart Public Services Smart Buildings & Homes Smart Integra<on Smart Water Smart Energy Smart Mobility Smart Mobility is real: Up to 20% travel time reduction Up to 15% less cars looking for parking Smart Water is real: Up to 30% energy savings Up to 20% reduction in water losses Schneider Electric - Smart Cities 15

Smart Cities is not a concept it is happening today. HOW

5 steps to smart Vision Solutions Integration Innovation Collaboration Schneider Electric - Smart Cities 17

Vision

Masdar, UAE «to create a commercially viable sustainable city providing the highest quality of life with the lowest environmental footprint. This vision is supported by goals in carbon footprint, energy usage, water usage, waste generation, social impact and economic viability. Schneider Electric - Smart Cities 19

HongKong, China Hong Kong has identified 4 main concerns: Pollution, Housing, Poverty gap and Aging population. It has also listed 2 major development priorities: Waste management and Education Schneider Electric - Smart Cities 20

Barcelona, Spain Barcelona has designed a holistic City Anatomy and launched the City Protocol project, involving collaboration and innovation to become the global reference of a Smart City.. Schneider Electric Smart Cities 21

Solutions

Solutions to cities immediate needs Improving operating systems through hardware + software + process expertise Smart Energy Smart Mobility Smart Water Smart Public Services Smart Buildings & Homes Smart Grid Automation & Flexible Distribution Smart Metering Management & Demand Response Renewables Integration & Micro Grid Real-Time Smart Grid Software Suite Gas Distribution Management EV Charging Infrastructure & Supervision Services Traffic Management Tolling & Congestion Charging Integrated Mobility Public Transit Traveler Information Distribution Management & Leak Detection Power, Control & Security Systems integration Stormwater management and Urban Flooding Public Safety Video Surveillance Emergency management Digital City Services egovernment Education Healthcare Tourism Street Lighting management High-performance Buildings* Energy Efficiency & Security solutions Energy Services Efficient Homes Home Energy management Connection to the Smart Grid Smart Integration Power, Security, Building, IT, & Process Management Systems integrated Architecture Integrated City Management Platform for Mobility Security Systems & Management Energy & Environment Management Information System Weather Intelligence * Hospitals, industrial facilities, datacenters and commercial buildings Schneider Electric - Smart Cities 23

Beijing, China Urban and interurban traffic control system: traffic signals, HD enforcement system, supervision and monitoring system for expressway, CCTV, traffic flow detection, weather detection and guidance system, integration in 10 control centers. Schneider Electric Smart Cities 24.

Abu Dhabi, UAE Energy audit paves way for Building SCADA for 70 buildings, including management of Street Lighting energy use.. Schneider Electric Smart Cities 25

Lyon & Grenoble, France Smart Grid project at regional scale, including smart meter deployment, Low-Voltage and Medium-Voltage grid management, user automation for energy efficiency and peak shedding.. Schneider Electric Smart Cities 26

Houston, Texas SCADA improves efficiency of Water and Electricity distribution systems; Retrofit for energy efficiency of 40 municipal buildings delivers $3 million yearly warranted energy and water savings.. Schneider Electric Smart Cities 27

Sao Paulo, Brazil CCTV optimizes surveillance; SCADA optimizes traffic in tunnel & highway; Two Command & Control Centers manage city areas with real-time adaptive traffic control system in 382 intersections. Schneider Electric Smart Cities 28

Integration

Integration for increased efficiency Integrated City Management platform for Mobility City Government More efficient city management City Residents Services & information Integrated City Management Platform Supervision & Coordination Information Sharing Incident Management Management & Optimization Business Intelligence Decision Support Traffic Management Public Transport Electric Vehicles Events & Emergencies Management Weather & Emissions Security Schneider Electric - Smart Cities 30

Dallas, Texas Integrated Mobility Management platform improves efficiency of multimodal transportation, sharing information between agencies and supporting decision-making in the management of major city corridor. Schneider Electric Smart Cities 31

Rio de Janeiro, Brazil SCADA improves efficiency of Water distribution system, Electricity grid and Gas distribution system through all Metropolitan Area; Traffic Management system optimizes mobility throughout the city; all interfaced with Rio s Intelligent Operations Center (IOC) providing >50% of its data - for a holistic view of city systems. Schneider Electric 32

Innovation

Innovation is 3-fold Technical Business Model Financial Schneider Electric - Smart Cities 34

Paris Issy-les-Moulineaux, France Smart Grid energy management project at district level, including Energy Efficiency solutions for buildings and homes, automation systems, renewable installations and Electric Vehicles charging infrastructure. Schneider Electric Smart Cities 35.

Oskarshamm, Sweden Performance Contracting optimizes energy in 28 buildings, saving 0.3 M, 350 MWh and 80 tons CO 2 through active control of Heating & Ventilation and Building Management System.. Schneider Electric Smart Cities 36

Collaboration

Collaboration to make it all happen No company can deliver a Smart City alone In the Smart City world, the word competition does not exist! Global players Planners & Developers Finance & Investment Governments Local players City People Design & Engineering Technology providers Construction & Implementation Utilities NGO s & associations Operations Schneider Electric - Smart Cities 38

World WBCSD initiative Urban Infrastructure collaborative initiative WBCSD is: a CEO-driven business association with focus on sustainable development and strong moral credibility The Urban Infrastructure Initiative: Brings together 14 companies: Acciona, Aecom, AGC, Cemex, EDF, GDF-Suez, Honda, Nissan, Philips, Siemens, Tepco, TNT, Toyota, United Technologies and Schneider Electric With objective to engage with city officials upstream of any commercial project And demonstrate value of business involvement in early urban planning And value of multi-sector collaboration to address inter-related urban issues Engagements with cities in: Europe: Finland, Netherlands Asia: India, China, Japan Americas: Mexico, USA Africa (underway) Schneider Electric - Smart Cities 39

France AFEP initiative AFEP supports the French Government s ambition for a French Sustainable Urban Environment offering That would be visible for key decision-makers, in France and abroad That would combine economic, environmental & social performance This ambition is : Coordinated by Ministers for Sustainable Development, Foreign Trade, and Housing With involvement from Ministry of Finance And supervision from French Government The AFEP-led initiative: Brings together 10 leading French companies: Alstom, Bouygues, GDF-Suez, Lafarge, Orange, Renault, St Gobain, Veolia, Vinci and of course Schneider Electric AFEP: Association Française des Entreprises Privées Schneider Electric - Smart Cities 40

In conclusion

Smart Cities is not a concept it is about urban efficiency, and it is happening today. We understand what it takes. We make Smart Cities a reality. Schneider Electric - Smart Cities 42

Make the most of your energy Schneider Electric - Smart Cities 43