How are energy companies adapting to the changing rules in the energy sector? Jaroslav Zlabek Country President Schneider Electric Polska Sopot November, 2011
the energy challenges today 2
The solution is a combination of cleaner generation, greater efficiency and a smarter grid Over 50% of CO 2 emission abatement will be from end use efficiency World energy-related CO 2 emissions abatement Source: World Energy Outlook 2010, OECD / IEA 4
and saving energy is the greenest form of generating energy Coal 100 units 35 units 33 units 1 unit of energy saved at point of use 3 units of primary energy not consumed The best energy is that which is not consumed, Nathalie Kozciusko-Morizet French Minister for Environment, Housing, and Sustainable Development 5
Cents/KWh** Years Key factors pushing change Technology, policy, economics and people Green crisis money and regulations Green portion of stimulus: $440 billion, 60% on energy efficiency Challenges in energy availability 3x20 EU commitment & China s 12th 5yr plan Energy management standards everywhere Tax incentive 10.5 10.0 Energy price Years of payback Years paybacks* 4,5 Quick pay back Energy price will increase Decrease in technology costs 9.5 9.0 8.5 8.0 7.5 7.0 6.5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 4,0 3,5 3,0 2,5 Image and Public awareness More events on energy 1 billion participants in Earth hour Energy incidents creating fundamental questions *Based on an actual commercial building: Project Cost $1M, Electricity saving 3500MWh, Project cost and energy savings fixed. **Source: DOE -DOE/EIA-0226 (2010/02) US Average Retail Cost of Electricity 1995-2009 6
We are operating in a changing world at the heart of the Smart Grid Communication and software at all levels Smart Grid Centralised Generation 4 Utility network Consumers Transmission Distribution 3 Consumers Active Residential Consumers Active Industry Buildings 3 Data Centres Electric Vehicles & Energy Storage Infrastructure 1 1 2 1 Renewable Energy Plants Distributed Generation Active Energy Efficiency: Energy visibility & Means to act Distributed Generation 7
From a one-way energy-only grid to two-way energy + data Smart Grid Smarter Demand Smarter Supply Demand Response the Smart Grid Transmission Distribution Flexible Distribution Residential Efficient homes Demand Response Industry Buildings Smart Generation Data Centres Efficient Enterprises Infrastructure 8
Bringing together many players, traditional & new, needing strong collaboration Technology providers: traditional players (EE solution and utility providers), communications/networking/data management suppliers, IT enterprise integrators, niche players Energy producer Transmission Distribution Network Operator Distribution Residential Transmission System Operator Energy Supplier Industry Active end-users Energy traders & aggregators Buildings Data Centres Energy producer Energy producer Infrastructure Governments & Regulators 9
adapting in a changing environment 10
Delivering Energy Management answers to customers challenges across the network Full network visibility & control Reduced datacenter lifecycle cost Automated & efficient living environment Safe, optimized renewable integration 30% less energy per unit produced <100kwh/m²/yr in commercial buildings Making energy Safe, Reliable, Efficient, Productive and Green with 30-70% savings everywhere 11
Project example: Høje-Taastrup Energy renovation of 150 municipal buildings Largest building energy saving project in Denmark Creating a better climate and environment upgrading the ventilation, heating, lighting and insulation systems for the 150 buildings Benefiting the employees and citizens who use the schools, institutions and libraries Guaranteed level of saving Operating costs reduced by 14% CO 2 emissions reduced by 14% - 16% Schneider Electric worked with a financial institution & the Government paid for the project with the energy saved No negative impact on government budgets 12
Collaborating and experimenting for an intelligent, smart future IDEA Inventer la Distribution Electrique de l'avenir. A partnership to look at how electrical distribution will develop and grow in the future INTEGRIS Intelligent Grid Sensor project aims at defining an innovative ICT system enabling the implementation of new Smart Grid functions in Distribution GREENLYS Test Smart Grid solutions & services on a regional scale (Rhône Alpes) to test new business models 13
We are a responsible company supporting sustainable growth Building a sustainable and responsible business UN Global Compact signatory G20 business summit leader Driving environmental action Green Premium products Latest standards applied Providing access to energy Engaged people SE Foundation delegates volunteering in 70 countries Measured commitment. BipBop programme Target 12/2011: 8/10 Ensuring people & communities development Health & Safety as a priority Becoming recognised Schneider Electric Foundation 14
Recommendations to the participants of the Energy Forum Encouraging substantial use of renewable and low-carbon energy workgroup Pursue Market-Based Carbon Pricing Phase out fossil fuel subsidies Set a price for carbon emissions Consensus through Regular Meetings of Energy-Related Ministers Develop aspirational targets for the deployment of renewable and low-carbon technologies Establish roadmaps and action plans for the development and deployment of renewable and low-carbon technologies Address regulatory barriers to the widespread deployment such as international standards, tariff and trade barriers, protection of intellectual property rights Strengthen International Public-Private Partnerships (PPP) Develop appropriate energy sources for developing countries & underserved populations Ensure that public funding is made available and complements private sector investment in an efficient manner Improvement and expansion of carbon crediting mechanisms 15
Walking the talk: Schneider Electric s headquarters The world s first ISO 50001 certified building 4 Final energy consumption vs. previous sites in the area 80 kwh/m²/yr Final energy consumption ROI in 5 to 7 years A smart building Equipped with Schneider Electric solutions Electric Vehicle charging station with PV solar panel roof, net zero and connected to the building Certified ISO14001 HQE Exploitation NF EN16001 ISO 50001 16
Objectives From 01/2009 to 12/2011 objectives Giving access to energy to those who need it the most B BOP P I Business 500 entrepreneurs at the base of the pyramid set up their activities in the energy management sector supported by our sustainable investment fund. Q4 2010: 209 Innovation 1M households from the base of the pyramid equipped with adequate energy offers/solutions Q4 2010: 891,058 People 10,000 young people from the base of the pyramid trained in energy skills Q4 2010: 4,742 17
How do you become a green enterprise? in the public and private sectors Make your facilities and environment efficient Measure energy consumption Fix targets for Efficiency improvement Use energy saving products & systems Use automation to make your facilities smart Connect your smart facilities to the smart grid Integrate renewable energies Innovate for tomorrow Push technical and engineering innovation Build an eco-system of complementary players Experiment, learn and scale up at a national, local and site level Support the growth of skills and knowledge in Energy Efficiency 18
Make the most of your energy