Telefónica`s integrated approach to energy efficiency and climate change



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Telefónica`s integrated approach to energy efficiency and climate change El Cairo, November 2 nd, 2010 Sympsium on ICT`s, Environment and Climate Change Daniela Torres Espinosa Telefónica S.A. Climate Change Office 0

Contents 01 Energy Efficiency and climate change strategy of Telefónica 02 ICT solutions for energy efficiency & climate change 03 Future challenges 1

Energy Efficiency and Climate Change Strategy of Telefónica 2

Telefónica overview and energy consumption Mexico y Centro America 255 GWh Total Accesses (as of Mar 10) 172.3 Mill. 620 Andean Region Brazil 1206 UK & Ireland 348 Central Europe 653 Region Sur Spain 522 Notes: - Central America includes Guatemala, Panama, El Salvador and Nicaragua - Total accesses figure includes Narrowband Internet accesses of Terra Brazil and Terra Colombia, and Broadband Internet accesses of Terra Brazil, Telefónica de Argentina, Terra Guatemala and Terra Mexico 1241 Total Accesses (as of Mar 10) 101.0 Mill. 3

Energy efficiency and climate change strategy To position Telefónica as an ICT company leader in the field of climate change abatement, spreading the energy efficiency culture in the group To find new Income opportunities by the development of new products and services for energy efficiency. To increase energy efficiency measures to reduce energy consumptions 4

Climate change strategy Governance Model Follow up Committee TECHNICAL GENERAL SECRETARIAT FOR PRESIDENCY & TRANSFORMATION DIRECTION Permanent Members *** Infrastructure and Information Systems Manager Purchasing and Shared Services Manager HR Manager Communications Manager Sales Manager Telefónica Spain, LATAM and Europe Project Office** WT* OPERATIONS ENGINEERING & SYSTEMS WT* EMPLOYEES HUMAN RESOURCES WT* SUPPLIERS PURCHASING DEPT. WT* PRODUCTS AND SERVCES WT* SOCIETY RC, REP. & SUSTAINABILITY 5

Operations and Green IT Operations Operaciones Procurement Proveedores Employees Empleados Positioning Clientes Customers To reduce 30 % of electricity consumption in operations per access by 2015 Energy Efficiency in networks and datacenters Renewable Energy in networks Chile Ireland 4.85 TWh in 2010 Around 1630 renewable energy sites in fixed and mobile networks. 6

Examples from OBs in each of the regions we are present prove it is possible Smart Metering & Management Power Saving Features More Efficient Infrastructure Selective Switch-Off Temperature Optimisation Free-Cooling Green Self-Generation ES / BR Central Europe UK&IE Andean Southern Mx&CA Flexible Procurement Model 7

Procurement Operations Operaciones Procurement Proveedores Employees Empleados Positioning Clientes Customers To introduce energy efficiency criteria to purchases of equipment, raw materials and services. Energy information recall from network, IT and climate equipment. Regional Purchases of efficient equipment in networks Información Energética de Producto / Energy information of the product Línea de Producto / Type of Product Group LP2 Código de Producto / Product Code Tipo de Operación / Type of Operation Fija, Móvil o Edificios Breve descripción del equipo / brief description of the paire Acondicionado (Air conditioning), Equipos de Climatización (Climate equipment) País / Country Consumo de Energía / Energy Consumption Fabricante (Manufacturer) Modelo (Model) Año de fabricación (Manufacturing year) Tiempo de vida util del equipo en años (Equipment lifetime in years) Eficiencia Energética en Equipos de Enfriamiento/ Energy Efficiency in Cooling Systems Consumo Energético Tìpico (Typical Energy Consumption) Capacidad Frigorífica / Cooling capacity EER (1) Eficiencia Energética en Equipos de Calefacción / Energy Efficiency in Heating Systems DATO / INFORMATION DATO / INFORMATION kwh/year BTU/h or W Btu/h DATO / INFORMATION COP (2) Capacidad de Calefacción / Heating capacity Más Eficiente / More efficient Menos Eficiente / Less efficient Clasificación / Clasification W/W Btu/h or W COP 3,60 < COP >3,40 >3,20 >2,80 >2,60 >2,40 2,40? COP 8

Employees Operations Operaciones Procurement Proveedores Employees Empleados Positioning Clientes Customers To achieve an electricity reduction objective of 10% by 2015 in Telefónica Offices. Energy efficiency campaigns for employees Teleworking in Telefónica Foster Virtual meetings 9

Positioning Operations Operaciones Procurement Proveedores Employees Empleados Positioning Clientes Customers Organizaciones Sector Inversores Organizaciones y Organismos Internacionales Analistas de la Industria 10

Telefónica recognizes the need for methodology development ITU T Methodologies General Umbrella, Environmental impact of ICT goods, networks and services Environmental impact of ICT in organisations Environmental impact of ICT projects Environmental impact of ICT in countries 11

Customers Operations Operaciones Procurement Proveedores Employees Empleados Positioning Clientes Customers SMART GRIDS Smart metering for renewable energy Smart Metering in electricity networks Mobile M2M solutions Early Warning Systems MOBILE SERVICES VIRTUAL SERVICES Virtual Meetings Virtual Hosting & Cloud Computing Teleworking Climate Change Education High performance working centers ICT SOLUTIONS CLIMATE CHANGE Public Spaces Digital Home Domotics Office Buildings Inmotics Road pricing and control Geo Localization and Fleet Management Electric vehicles TRANSPORT & LOGISTICS SMART BUILDINGS 12

ICT solutions for energy efficiency & climate change 13

Telco services are essential today and they will be more so in the future Customer demand drivers Everybody and everything connected Social networking User Generated Content Huge increase of digital content Hundreds of thousands of applications e-world: e-health, e-learning, e-finance services, e-travel M2M : smart metering, e-car, e-logistics, vending Increasingly powerful devices Energy efficiency Evolution from devices to ecosystems (Devices + Operating Systems + User Interfaces + Applications) 14

ICTs recognized as Technology Innovators for Green VIRTUALIZACIÓN CLOUD COMPUTING THIN PROVISIONING UNIFIED COMMS Emerging Technologies LED STREET AND AREA LIGHTING HYDROGEN ECONOMY SILICON ANODE BATTERIES SOLAR POWER MOBILE DEVICES CLOUD COMPUTING COLLABORATION There is still a lot of room for Technological Innovation around resources efficiency, Telefónica is leading this trend 15

Telefónica examples Smart Buildings: Inmotics Service for Energy Efficiency: Reduction of 20 to 30% of electricity consumption per year. Customer Example. C&A in Spain Smart Grids & Smart Metering: Pilot projects with EU Beytwach project. Smart customers Smart Transport: Pilot projects with companies and foster the electric vehicle penetration in EU markets. i.e Electric Vehicles Virtual Services: Foster virtual meeting: webconference, videoconference and telepresence. Virutal hosting services Mobile Services: Green devices and ecoapplications. Example: Strategic Alliance with Manufacturers E-Route Movistar 16

Climate change monitoring & early warning systems To create the capacity to generate warnings based on weather forecasting. Climate conditions monitoring in real time Signal reception of Telefónica Movistar Ecuador EARLY WARNING INAMHI INFORMS: Heavy rain is expected in the northern and south part of the coast for the next three hours. TAKE PRECAUTION SMS reception and dissemination SMS sending to community leaders Establishment of a database of users, Movistar customers in areas exposed to risk 17

Future Challenges 18

ICTs for climate change mitigation and adaptation 2008 Identification of ICTs potential to reduce emissions in other sectors 2009 Communication of benefits and identification of existent services 2010 2011 Initial methodology development to asses benefits. 2012 Apps Green 2011 Desarrollo de nuevos P&S 2012 Climate Change information Electric Vehicles 2013 Smart Grids 2014 Smart Cities Smart Connected Cities & users 19