1. Tackling energy challenges through Energy Efficiency Solutions
July 2008

2. Committed to the energy dilemma… we are "Energy Optimists"x2
We provide solutions
for energy efficiency
energy audits
energy efficiency
enabling products
energy management solutions
… for residential, commercial and industrial buildings
… for industrial processes
The increase in energy consumption by 2050 ÷2
In front of the challenge , we have (on demand usage management and consequent C02 reduction by consumption optimisation) durable solutions provided they are fully implemented ( regulation is a key in massive implementation )
Reaching the targets ( less 20% in 2020) = compulsory implementation of the full range of our proposals on usage optimisation , it is time to implement active EE on top of the historical implementation of passive EE ( even if passive EE has to go on )
Implementation on existing built in environment is key to reach 2020 targets and the beauty of our proposals is that they can be implemented easily and with low investment on existing
The CO2 emissions reduction to avoid dramatic climate changes by 2050

3. The energy dilemma

4. The energy and CO2 emission challenge
World consumption up 45% since 1980, 70% higher by 2030
CO2 up 33% since industrial revolution, rising faster than ever
Resource competition & political instability keep prices high
Emerging markets
> 75% of new demand
Coal use continues to grow in emerging markets
If this trends are going as historically , we are speeding in front af the wall !
We are in 2005 at 380 ppm CO2 concentration coming from 280 one hundred year ago and we are speeding exponentially at + 30 to 50 ppm extra CO2 per 10 years!
We have to know that limiting global warming to 2°C extra average temp ( with 50% chance on 100 ) means stabilizing CO2 at 450 ppm during the next decades … it’s more than time to react !
These trends are here to last unless we act !

5. We can not stop world population or energy demand growth…
But we can change the way we use energy and reduce GHG emissions

6. Buildings and Industry are the 1st GHG emission contributors…
Industrial process reactions & fugitive emissions
Land use Change (deforestation) and agriculture
≈ 44% GHG contribution comes from buildings & Industry
3x larger than GHG contribution from transportation
In industry &buildings:
70% of electricity is generated via coal or hydrocarbons
90% of heat and process activities burn hydrocarbons 7%
Transportation
14%
35%
44%
Energy usage = 44% of GHG emissions = 53% of CO2 emissions
Half of this = Electricity usage with almost 4% growth per year due to so many advantage in usage
Thermal Energy by direct fuel combustion is used mainly in heating ( domestic , building and industrial use ) and can be optimised by automation & control through electrical powered systems
Transportation is often on top of agenda ( due to traffic congestions , pollution issues and visibility of measures such as glittering tramways) but overall contribution to GHG emissions (4 times less than Energy usage) and investments actual levels in font of emissions stakes can be questioned !!!
 Schneider Electric focus on the most contributive source of Green House Gas emission : energy usage !
Thanks to our solutions we impact ont only electricity consumption but also other energy thanks to automation/regulations
≈ 44% GHG come from non-transportation energy use =
Commercial & residential buildings > 15%
Industry & associated processes > 27%
Electricity T&D losses ≈ 2%
GHG from Building & Industry
Energy Use
Data extracted from WRI: navigating the numbers 2005

7. …and also the first energy consumers !
Energy use split
Main energy consumption is for heating, cooling, motors, lighting, electronics and appliances
31% Industry
& Infrastructure
>2%
Data centres & networks
18%
Buildings
21%
Residential
28%
Transportation
I would say Schneider Electric has solutions to cope with 73% of the issue !
Schneider Electric made a strong strategic move by acquisitions bringing capacity to master thermal energy usage in buildings ( Building automation & control systems) as well as in applications such as Critical Power and Cooling solutions in Data Centers
Schneider Electric probably means more Schneider Energy than Schneider Electric
Sources:
EERE Building Energy Databook 2006
EERE Manufacturing Systems Footprint ,
Source:
EERE Building Energy Data book 2006
EERE Manufacturing Systems Footprint ,

8. And remember: a small save at home is a big save at the power plant !
Coal
100 units
35 units
33 units
Generation efficiency and clean fuel technology are key but end use avoidance brings big benefits
Saving 1 unit of electricity at the end user is more effective than building a power plant that is twice as efficient as today’s plants
Saving one unit on demand side = saving 3 units of primary energy ( the oil or the coal necessary to supply that energy unit ) due to overall efficiency of electrical chain
!!! ATTENTION!!! BECAREFULL !!!
That does not mean we should not use Nuclear electricity for heating !
That does not mean Solar heating or windmill elec heating hot water is worst than gaz heating hot water !
When considering the efficiency of the whole chain from petrol extraction to low efficiency of combustion vehicle motors , it’s not worthy to develop electical vehicles !
We have to mention that any saved Kwh in demand = 3 times saving in primary energy ( pus delaying generation investment ) but we have to be careful not to say that electricity is a bloody non efficient energy ware
Some notes on generation and transmission losses :
Converting kWh of electricity to Btu is not a trivial issue, because the amount of input energy needed to create a kWh of electricity is far greater than the amount of useful energy in the kWh at its point of use.
Site (point-of-use) electricity, at the universal value of 3,412 Btu/kWh. This value is useful to engineers, energy managers, and others trying to evaluate energy efficiency
Primary electricity, at a value that reflects the content of the energy inputs used to produce the electricity. This rate is most useful to policymakers and analysts who are considering global resources and environmental issues.
For convenience and consistency, a factor is traditionally used to convert point-of-use electricity use to primary electricity - 10,447 Btu/kWh for 1985, 10,324 Btu/kWh for 1988, 10,352 Btu/kWh for 1991and 10,280 Btu/kWh for 1994 in US
The true conversion values for the range of electricity estimates are unknown
For some type of utility energy inputs--hydroelectric, wood/waste, wind, and solar (thermal or photovoltaic), there is no generally accepted conversion rate.
The fossil-fueled, nuclear, and geothermal generation processes have known but different conversion rates, so the overall conversion rate for these energy sources is a function of their mix.
1 unit saved at home
3 units saved at the power plant

9. 30% global energy saving !
1 year of electricity from 20,000 coal-fired power plants
12 Gigatons CO2e/year

10. Take the Energy challenge
Meet energy demand of a growing global population
Ensure stable and secure energy access for all nations
Bring electricity to the 1.6 billion people without access
Stabilize climate impact from energy emissions
Establish sensible legislation allowing business to grow in an effective and socially responsible manner
Energy Challenge > Ensuring energy availability while preserving the environment

11. Energy challenges & opportunities are everywhere
Supply Side
More Efficient and Cleaner Supply
Demand Side
More Efficient Use Conservation & Management
There are opportunities everywhere : supply side, demand side and in the interaction of the two.
On the supply side - the objectives are more efficient generation, cleaner generation, and more efficient distribution.
Moving generation closer to the user (distributed generation) eliminates losses making production more efficient. This includes may green alternative such as solar, wind, and CHP.
Clean fuel technologies and carbon sequestration or necessary but the investments are long term
On the demand side - the objectives are more efficient use and conservation
There are opportunities to save energy in every segment of end use.
The technology to do this is available today and it is economically feasible
In the middle you have programs that automatically meter and monitor to shed and manage loads based on utility needs and customer costs.
The key to implementation here is the understanding and analysis of information.

12. Energy challenges & opportunities are everywhere
Supply Side
More Efficient and Cleaner Supply
Demand Side
More Efficient Use Conservation & Management
Cleaner supplies will take time to implement
Current technologies allow us to target 30% savings
There are opportunities everywhere : supply side, demand side and in the interaction of the two.
On the supply side - the objectives are more efficient generation, cleaner generation, and more efficient distribution.
Moving generation closer to the user (distributed generation) eliminates losses making production more efficient. This includes may green alternative such as solar, wind, and CHP.
Clean fuel technologies and carbon sequestration or necessary but the investments are long term
On the demand side - the objectives are more efficient use and conservation
There are opportunities to save energy in every segment of end use.
The technology to do this is available today and it is economically feasible
In the middle you have programs that automatically meter and monitor to shed and manage loads based on utility needs and customer costs.
The key to implementation here is the understanding and analysis of information.

13. Energy challenges & opportunities are everywhere
Supply Side
More Efficient and Cleaner Supply
Demand Side
More Efficient Use Conservation & Management
Demand Supply Management +
Metering & Analysis
Cleaner supplies will take time to implement
Current technologies allow us to target 30% savings
There are opportunities everywhere : supply side, demand side and in the interaction of the two.
On the supply side - the objectives are more efficient generation, cleaner generation, and more efficient distribution.
Moving generation closer to the user (distributed generation) eliminates losses making production more efficient. This includes may green alternative such as solar, wind, and CHP.
Clean fuel technologies and carbon sequestration or necessary but the investments are long term
On the demand side - the objectives are more efficient use and conservation
There are opportunities to save energy in every segment of end use.
The technology to do this is available today and it is economically feasible
In the middle you have programs that automatically meter and monitor to shed and manage loads based on utility needs and customer costs.
The key to implementation here is the understanding and analysis of information.
We must develop technologies and business models to increase renewable energies penetration
Mid term approach
We must focus on Energy Efficiency to solve our energy dilemma
Short term action

14. Because action is required now, Energy Efficiency is a Must
Cheaper
Each kWh saved avoids about 3x the generation production
Demand response programs cost about half of typical electricity costs
Quicker
Technology is available today with short term results
Cleaner
“Negawatt” produces no environmental footprint
Enhanced Security
EE is homegrown, it reduces dependence on imports

15. 30% Savings are available today…
Up to 40% of the potential savings for a motor system are realized by the Drive & Automation
Up to 30% of the potential for savings in a building lighting system can be realized via the lighting control system

16. 30% savings are available today…
… thanks to a combination of
100%
Up to 8% per year is lost without monitoring and maintenance program
Up to 12% per year is lost without regulation and control systems
70%
Efficient devices and installation (10 to 15%)
Up to 40% of the potential savings for a motor system are realized by the Drive & Automation
Up to 30% of the potential for savings in a building lighting system can be realized via the lighting control system
Efficient devices and efficient installation (10 to 15 %)
Low consumption devices, insulated building…
Optimized usage of installation and devices (5 to 15%)
Turn off devices when not needed, regulate motors or heating at the optimized level…
Permanent monitoring and improvement program (2 to 8%)
Rigorous maintenance program, measure and react in case of deviation
Optimized usage via automation (5 to 15%)
Energy Consumption
Monitoring & Maintenance
(2 to 8 %)
Time

17. … but savings can be lost quickly…
Unplanned, unmanaged shutdowns of equipment and processes
Lack of automation and regulation (motors, heating)
No continuity of behaviours
100%
Up to 8% per year is lost without monitoring and maintenance program
Up to 12% per year is lost without regulation and control systems
70%
Efficient devices and installation
Optimized usage via automation
Energy Consumption
Monitoring & Maintenance
Time

18. 1 Measure 2 Fix the basics 3 Automate 4 Monitor and Improve
Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps
1 Measure
2 Fix the basics
3 Automate
4 Monitor and Improve

19. Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps
1 Measure
Energy meters
Power quality meters
2 Fix the basics
3 Automate
4 Monitor and Improve

20. Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps
1 Measure
2 Fix the basics
Low consumption devices
Insulation material
Power quality
Power reliability
3 Automate
4 Monitor and Improve

21. Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps
1 Measure
2 Fix the basics
3 Automate
Building Management Systems
Lighting Control Systems
Motor control systems
Home control systems
Variable speed drive
4 Monitor and Improve

22. Sustaining Energy savings is easy, just follow the 4 Energy Efficiency steps
1 Measure
2 Fix the basics
3 Automate
4 Monitor and Improve
Energy management software
Remote monitoring systems

23. Lifecycle solutions for Energy Efficiency
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients

24. Lifecycle solutions for Energy Efficiency
Energy Audit
& Measure
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients

25. Lifecycle solutions for Energy Efficiency
Energy Audit
& Measure
Passive Energy Efficiency
Fix the basics
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients
Low consumption devices, insulation material, power factor correction

26. Lifecycle solutions for Energy Efficiency
Energy Audit
& Measure
Passive Energy Efficiency
Fix the basics
Optimise through automation & regulation
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients
Low consumption devices, insulation material, power factor correction
HVAC control, lighting control, variable speed drives…

27. Lifecycle solutions for Energy Efficiency
Energy Audit
& Measure
Passive Energy Efficiency
Active Energy Efficiency
Fix the basics
Optimise through automation & regulation
Monitor, maintain, improve
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients
Low consumption devices, insulation material, power factor correction
HVAC control, lighting control, variable speed drives…
Meters installation, monitoring services, EE analysis software

28. What we can do for you?

29. Schneider Electric is involved in 72% of end user energy consumption
Schneider Electric is involved in 72% of end user energy consumption We can help you make savings!
I would say Schneider Electric has solutions to cope with 73% of the issue !
Schneider Electric made a strong strategic move by acquisitions bringing capacity to master thermal energy usage in buildings ( Building automation & control systems) as well as in applications such as Critical Power and Cooling solutions in Data Centers
Schneider Electric probably means more Schneider Energy than Schneider Electric
Sources:
EERE Building Energy Databook 2006
EERE Manufacturing Systems Footprint ,

30. Industry & infrastructure Data centres & networks
Where are the savings ?
Industry & infrastructure
Average facility can reduce consumption by 10 to 20%
Data centres & networks
Power & cooling can reduce power
consumption by 20 to 30%
Buildings
Renovation can yield up to 30% of energy savings
Residential
EE products may save 10% to 40% in electricity
30% energy saving is achievable with today technologies and 30% energy saving is what we need to do if we want to reach Kyoto objectives
25% savings would save 7% of the world’s electricity
Motors, account for over 60% of electricity usage
Power & cooling systems is 50% of electricity usage
Saving energy improves DC infrastructure efficiency
Consume 20% of total energy
3 key areas: HVAC, lighting & integrated building solutions
20% to 25 % of consumed energy (EU & US)
Lighting & appliances over 40%

31. Energy saving ROI improves as energy prices rise
2000
2001
2002
2003
2004
2005
2006
2,0
2,5
3,0
3,5
4,0
4,5
5,0
0,065
0,075
0,085
0, 095
0,105
0,06
0,07
0,08
0,09
0,1
0,11
Energy price
Years paybacks*
Cents/KWh
Years
Based on an actual commercial building.
Project Cost $1M,
Electricity saving 3500MWh
Project cost and energy savings fixed.
Payback time has decreased 30% over 5 years due to increase in energy prices
Example based on a US commercial building project
DOE -US Average Retail Cost of Electricity 1993 thru 2007

32. We contribute through our solutions !
Energy Audits
Consulting services
Building Management Solutions
Power management solutions
Motor control solutions
Lighting control solutions
Home control solutions
Monitoring services
Energy Efficiency needs a structured and persistent approach
Diagnosis ( very much on top of some agendas ) is not enough , what costs is getting the results , only companies having the means to be active in the whole process steps can be with there clients up to the real savings and results
Energy Efficeincy is an issue where a risk sharing and a win win relation shall be established to reach the goal ( as in performance contracting or Energy Edge )
As targets are fixed over long timeframe ( less 20% in 2020 , less 50% in 2050 ) for clients EE programs are not one shot and permanent improvement over the time is key , so frame services contracts should be the way to deal with key clients

33. Solutions for residential & small buildings
Enabling products
Dimmers, timers, movement & presence detectors, specific switches, light sensitive switches
Programmable time switch for HVAC & Motors
Variable speed drive for motors
Management systems
Shutter control systems
Lighting Control systems
Home control systems
Added value services
Remote control
Multimedia control
Alarm handling

34. Solutions for medium & large buildings
Enabling products
Dimmers, timers, movement & presence detectors, switches
Thermostat, floor heating control
Variable speed drives for HVAC, pumps, motors
Power compensation and filtering products
Management systems
Building management systems
Power monitoring and analysis
Added value services
Site audits
Data Collection and Analysis
Financial Analysis & ROI Validation,
Planning of Improvement plan
Remote monitoring and optimization

35. Solutions for industry and infrastructure
Enabling products
Variable speed drives for motors
PLC for production throughput optimization and machine "mute" mode management
Power compensation and filtering products
Management systems
Power monitoring and analysis
Process supervisory systems
Added value services
Site audits
Data Collection and Analysis
Financial Analysis & ROI Validation,
Planning of Improvement plan
Remote monitoring and optimization

36. Solutions for data centers & networks
Enabling products
Ultra-high efficiency UPS, HV AC power distribution
Scalable, Modular Power and Cooling Systems
Close-coupled cooling, Thermal Containment
Electrical distribution and industrial control products
Management systems
Capacity & Change Management software
InfraStruXure Central DC Management software
Building & Room surveillance & Security
Added value services
Plan - Assessment and site audits
Build - Project Management, Installation, Testing, Integration
Operate - Cleaning, Inspection, Corrective maintenance

37. More than 50 EE standard solutions and 300 EE enabling products are available
Our EE labels help you
make the right choice:

38. Customer references
US National Carwash company : 33% energy savings thanks to motion, drives and electrical distribution solution
Amiens, France, reduces its lighting bill by 30% thanks to Lubio™ optimised lighting solution
Delhi, India cut its power consumption by 40% thanks to equivalent systems
Eco-building Technopolis : 30% energy savings thanks to T.A.C Vista® through continuous monitoring of water treatment, HVAC, lifts and key functions of the building

39. Schneider Electric: your energy specialist for significant and sustainable savings
Your energy manager… improving business via metering, monitoring, control solutions and cost optimization services
Your energy expert… improving business via consultative services, technical and behavioral energy action plans and implementation services
Your green partner improving business via environmentally friendly and energy reducing products

40. Make the most of your energy