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Solutions for the Crossroads:
“Energy Optimization
from Plant to Plug…”

Aaron Davis, Chief Marketing Officer
Philippe Delorme, EVP Strategy & Innovation
Solutions of the past
are simply not sufficient for the future


         The world’s energy system is at a crossroads. Current global trends in

energy supply and consumption are patently         unsustainable –
environmentally, socially, economically. But that can – and must – be altered;
there’s still time to change the road we’re on. It is not an exaggeration to claim

that the future   of human prosperity depends on how successfully
we tackle the two central energy challenges facing us today: securing the
supply of reliable and affordable energy; and effecting a rapid transformation to
a low –carbon, efficient and environmentally benign system of energy supply.

What is needed is nothing short of an energy       revolution.

                                                      Source: World Energy Outlook
                                                                                     2
Pervasive changes
from population, standard of living, and technology

● Humans created 161 Exabyte of data in 2006, approximately three million
  times the information in all the books ever written. Projected to be 988 in
  2010.
● In 2005, the average IT network user consumed 3Mb bandwidth per month. In
  2008, this became 3Mb per day
● Microsoft and Google announce new datacenter plans based on location of
  cheapest electricity
● $12 trillion will be spent for energy in the next 20 years, equaling the spending
  of the past 100 years
● Between 2002 & 2007 the cost of electricity was multiplied by 3
● « Last year human beings produced more transistors than rice
  grains…and at lower cost… » - IBM

                                                                         * source: IDC, EMC

                                                                                              3
Physical sales of
                virtual goods
                topped more than
                $300M in 2007




20 milligrams
                        The Internet will
CO2 per                 produce 20% of
second                  the world’s
                        GHG in 10
                        years…
                                       4
Welcome to the “inelastic” Digital World
creating the requirement for an energy revolution…


● Impacting the way we use all types of power
● Impacting the way we design and interact with our buildings and
 homes
● Impacting the way we design and use our production and
  manufacturing centers, which in turn drives massive demographic
  changes
● Impacting our datacenters and personal technology habits

 and the Machine to Machine Internet has barely begun!


Rates of change are exponential on the problem side… while
solutions to date have been component and linear…
                                                                    5
The future demands new solutions
and the largest companies must lead
        Information                        Traditional
        Technology                    Energy & Automation




     Solutions must take the best of both worlds….
                 The “I” and the “E”                        6
And we must own this new market space
whilst maintaining strength in traditional businesses
                              Intelligent
                                Energy




      Winning companies will be focused on Intelligent Energy…
                                                                 7
Intelligent Energy:
Enabling the architectural integration
of data, power, security, cooling and
automation in the Digital World




                                         8
Generation supply matters
but demand behavior matters most, first!

● Over 67% of CO2 emissions reduction will come from power generation
 World energy-related CO2 emissions




                                       Source: World Energy Outlook 2009, OECD / IEA9
Generation supply matters
but demand behavior matters most, first!

● Over 50% of CO2 reduction will come from energy efficiency
 World energy-related CO2 emissions abatement




                                                Source: World Energy Outlook 2009, OECD / IEA10
We have 10 years…                                        The quickest wins: 50% of C02 cut
                                                         must come from behaviour
to fix 4 critical problems

Generation:               Transmission:          Buildings and Process:       Point of Use:
> 10 years to fix         > 10 years to fix      1- 5 years to fix            1-5 years to fix




Problems:
CO2 Emissions             Stranded Capacity      Stranded Capacity             Efficiency
Transmission Efficiency   Capacity Constraints   Service Entrance Capacity     and Integration
Capacity Constraints


  Focusing on point of use architecture provides fastest impact and frees
        upstream capacity through Power Plant to Plug Optimization

                                                                                                              11
                                                                Source: Hot, Flat and Crowded: Tom Friedman
Behaviour and good system architecture
…can they really make a difference?

17,096 TWh*
Total annual electric power use on earth
41%
approximately goes to industrial & commercial
buildings or about 6,960 TWh
20%**
estimation of the % of the 41% wasted due to
inefficiency of the traditional building infrastructure,
(compared to what is possible for the same cost.)


1,392 TWh                                                  France electricity
                                                           consumption
                                                           (536 TWh)
Potential savings now!
                        *CIA World Factbook 2008
                        **ACEEE Study, 2005                                     12
Unintegrated Components




                          13
Yes, a very big difference!

26 TWh *
The world’s current Photo Voltaic power generation capacity
continuous equivalent output


Efficient building design are therefore 53+   times greater
(purely a behaviour and education issue)


Efficient data center design, the savings available in are
7 times greater… over 60x!



                            *World PV Industry Report Summary March 16, 2009
                                                                           14
The energy equation:
a system under tension and conflict

                                            Environmental impact
                                            People safety
                                            Asset integrity




                      Safe
                                            Energy availability
                                            Energy quality
                                            Offer quality
      Gre                               e
          en                        iabl
                                Rel         Energy efficiency
                                            Reduced Opex
                                            Reduced Capex
                  e
               tiv

                             Ef



                                            Deployment speed
             uc




                                            Ability to integrate
                               fic
           od




                                            Ability to scale
                                  ie
         Pr




                                  nt




                                            Carbon free
                                            Easy installation
                                            Easy connection




                                                                   15
From primordial ooze to the modern age
The evolution of management systems for facilities
    Emerging ability to answer       Getting better – “separate         Moving toward “solution
1   basic questions              2   but equal”                   3     excellence”

                                                   “Facility
                                                   management”                      Integrated
                                                   quasi-system                     MANAGEMENT
                                                                                    system




                                                                      Domain excellence +
The five management              The reign of “domain                 collaboration evolves
“domains” take shape                  excellence”                      towards “solution
                                                                           excellence”
                                                                                                  16
:the right ecosystem to support
the convergence of 5 key domains
                                                       promise :
                                     ● Guaranteed compatibility / synergy /
   Power           White Space         capability between the 5 domains of
   Management      Management          expertise
                                     ● Energy monitoring everywhere, with
                                       up to 30% EE
 Process               Building
 & Machine         Management        ● Enabled by the right connecting
 Management                            technologies :
                                        ● IP as a common highway
            Security
                                        ● Web services as a common language
          Management
                                          (SOA architectures)




Making energy Safe, reliable, efficient, productive and green
                                                                              17
A complete system approach

  Domain      Services   Products           Control                Supervision                       Enterprise   Cloud
                                    Power Quality                                                      Energy
                                    Energy savings                                                     & CO2
                                                                   Power & Energy monitoring            portal
                                    IPMCC
  POWER                             Local MV control
                                    Local LV control               Power SCADA
                                                                                                        EEM
                                    Renewables energy conversion

                                    Continuous process
                                    Discrete process
                                    General machine control
  PROCESS &                         Packaging                      Process Control SCADA                 MES
  MACHINES                          Material Handling
                                    Hoisting
                                    Pump & fan control

                                    PDUs (rack, traditional)       White space monitoring
                                    UPS
  WHITE                             Cooling (in raw, perimeter)    Inventory mgt & workflow
  SPACE                             Surveillance
                                    Environmental monitoring       Capacity simulation & modelling

                                    Lighting
                                    Heating
  BUILDING                          Ventilation
                                    Air conditioning               Building Control
  CONTROL                           Zone control
                                    Lifts & escalators

                                    Access control                 Video surveillance
                                    Video surveillance
  SECURITY                          Emergency lighting
                                                                   Access control
                                    Alarms
  THIRD PARTIES
                                                                                                                          18
Solution offer overview

                     Supervision


                                                                                     Energy
                                                                                   Management
Energy data access                               Enterprise portal
                                                                                    Services
    at low cost

        POWER



       PROCESS
       & MACHINES



        WHITE
        SPACE
                                   Supervision


        BUILDING
        CONTROL



        SECURITY
                                                                     Supervision




                                                                                            19
What we plan to bring to the market

                                  Seamless inter-connection and integration of Power,
                                  Build Control, Security & White space mgt Systems
Generic Buildings Data-centers
Hospitals




                                  Universal Energy monitoring Module

                                  One Schneider-Electric Customer portal




                                  Easy integration of Security (access/video) in
                                  Process management

                                  Simple integration between Power & Process
   MMM WWW O&G                    Enhance Non-Permanent Monitoring & Control
                                  Capabilities

                                                                                        20
So let’s take a look…


                        21
Water Treatment & Distribution




                                 22
Active energy management architectures
…from Power Plant to Plug
                                          Possible                                   Electricity
                                          Savings                                      Saved


● Industry & Infrastructure                  15%                                      678 TWh

● Data Center & Network                      30%                                      410 TWh

● Building                                   20%                                  1,392 TWh

● Residential                                15%                                      552 TWh

                                                                               3,033 TWh                           annually
                       Source: US DOE-EIA (Energy Outlook 2007), Green Grid for Data Centers, CIA Worldbook
                       Industry Buildings are included in building and not in industry. SE estimations of possible savings based upon23
                       best practice design and behaviour changes
Make the most of
your energy™




Schneider Electric - Division - Name – Date   24

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EcoStruxure

  • 1. Solutions for the Crossroads: “Energy Optimization from Plant to Plug…” Aaron Davis, Chief Marketing Officer Philippe Delorme, EVP Strategy & Innovation
  • 2. Solutions of the past are simply not sufficient for the future The world’s energy system is at a crossroads. Current global trends in energy supply and consumption are patently unsustainable – environmentally, socially, economically. But that can – and must – be altered; there’s still time to change the road we’re on. It is not an exaggeration to claim that the future of human prosperity depends on how successfully we tackle the two central energy challenges facing us today: securing the supply of reliable and affordable energy; and effecting a rapid transformation to a low –carbon, efficient and environmentally benign system of energy supply. What is needed is nothing short of an energy revolution. Source: World Energy Outlook 2
  • 3. Pervasive changes from population, standard of living, and technology ● Humans created 161 Exabyte of data in 2006, approximately three million times the information in all the books ever written. Projected to be 988 in 2010. ● In 2005, the average IT network user consumed 3Mb bandwidth per month. In 2008, this became 3Mb per day ● Microsoft and Google announce new datacenter plans based on location of cheapest electricity ● $12 trillion will be spent for energy in the next 20 years, equaling the spending of the past 100 years ● Between 2002 & 2007 the cost of electricity was multiplied by 3 ● « Last year human beings produced more transistors than rice grains…and at lower cost… » - IBM * source: IDC, EMC 3
  • 4. Physical sales of virtual goods topped more than $300M in 2007 20 milligrams The Internet will CO2 per produce 20% of second the world’s GHG in 10 years… 4
  • 5. Welcome to the “inelastic” Digital World creating the requirement for an energy revolution… ● Impacting the way we use all types of power ● Impacting the way we design and interact with our buildings and homes ● Impacting the way we design and use our production and manufacturing centers, which in turn drives massive demographic changes ● Impacting our datacenters and personal technology habits and the Machine to Machine Internet has barely begun! Rates of change are exponential on the problem side… while solutions to date have been component and linear… 5
  • 6. The future demands new solutions and the largest companies must lead Information Traditional Technology Energy & Automation Solutions must take the best of both worlds…. The “I” and the “E” 6
  • 7. And we must own this new market space whilst maintaining strength in traditional businesses Intelligent Energy Winning companies will be focused on Intelligent Energy… 7
  • 8. Intelligent Energy: Enabling the architectural integration of data, power, security, cooling and automation in the Digital World 8
  • 9. Generation supply matters but demand behavior matters most, first! ● Over 67% of CO2 emissions reduction will come from power generation World energy-related CO2 emissions Source: World Energy Outlook 2009, OECD / IEA9
  • 10. Generation supply matters but demand behavior matters most, first! ● Over 50% of CO2 reduction will come from energy efficiency World energy-related CO2 emissions abatement Source: World Energy Outlook 2009, OECD / IEA10
  • 11. We have 10 years… The quickest wins: 50% of C02 cut must come from behaviour to fix 4 critical problems Generation: Transmission: Buildings and Process: Point of Use: > 10 years to fix > 10 years to fix 1- 5 years to fix 1-5 years to fix Problems: CO2 Emissions Stranded Capacity Stranded Capacity Efficiency Transmission Efficiency Capacity Constraints Service Entrance Capacity and Integration Capacity Constraints Focusing on point of use architecture provides fastest impact and frees upstream capacity through Power Plant to Plug Optimization 11 Source: Hot, Flat and Crowded: Tom Friedman
  • 12. Behaviour and good system architecture …can they really make a difference? 17,096 TWh* Total annual electric power use on earth 41% approximately goes to industrial & commercial buildings or about 6,960 TWh 20%** estimation of the % of the 41% wasted due to inefficiency of the traditional building infrastructure, (compared to what is possible for the same cost.) 1,392 TWh France electricity consumption (536 TWh) Potential savings now! *CIA World Factbook 2008 **ACEEE Study, 2005 12
  • 14. Yes, a very big difference! 26 TWh * The world’s current Photo Voltaic power generation capacity continuous equivalent output Efficient building design are therefore 53+ times greater (purely a behaviour and education issue) Efficient data center design, the savings available in are 7 times greater… over 60x! *World PV Industry Report Summary March 16, 2009 14
  • 15. The energy equation: a system under tension and conflict Environmental impact People safety Asset integrity Safe Energy availability Energy quality Offer quality Gre e en iabl Rel Energy efficiency Reduced Opex Reduced Capex e tiv Ef Deployment speed uc Ability to integrate fic od Ability to scale ie Pr nt Carbon free Easy installation Easy connection 15
  • 16. From primordial ooze to the modern age The evolution of management systems for facilities Emerging ability to answer Getting better – “separate Moving toward “solution 1 basic questions 2 but equal” 3 excellence” “Facility management” Integrated quasi-system MANAGEMENT system Domain excellence + The five management The reign of “domain collaboration evolves “domains” take shape excellence” towards “solution excellence” 16
  • 17. :the right ecosystem to support the convergence of 5 key domains promise : ● Guaranteed compatibility / synergy / Power White Space capability between the 5 domains of Management Management expertise ● Energy monitoring everywhere, with up to 30% EE Process Building & Machine Management ● Enabled by the right connecting Management technologies : ● IP as a common highway Security ● Web services as a common language Management (SOA architectures) Making energy Safe, reliable, efficient, productive and green 17
  • 18. A complete system approach Domain Services Products Control Supervision Enterprise Cloud Power Quality Energy Energy savings & CO2 Power & Energy monitoring portal IPMCC POWER Local MV control Local LV control Power SCADA EEM Renewables energy conversion Continuous process Discrete process General machine control PROCESS & Packaging Process Control SCADA MES MACHINES Material Handling Hoisting Pump & fan control PDUs (rack, traditional) White space monitoring UPS WHITE Cooling (in raw, perimeter) Inventory mgt & workflow SPACE Surveillance Environmental monitoring Capacity simulation & modelling Lighting Heating BUILDING Ventilation Air conditioning Building Control CONTROL Zone control Lifts & escalators Access control Video surveillance Video surveillance SECURITY Emergency lighting Access control Alarms THIRD PARTIES 18
  • 19. Solution offer overview Supervision Energy Management Energy data access Enterprise portal Services at low cost POWER PROCESS & MACHINES WHITE SPACE Supervision BUILDING CONTROL SECURITY Supervision 19
  • 20. What we plan to bring to the market Seamless inter-connection and integration of Power, Build Control, Security & White space mgt Systems Generic Buildings Data-centers Hospitals Universal Energy monitoring Module One Schneider-Electric Customer portal Easy integration of Security (access/video) in Process management Simple integration between Power & Process MMM WWW O&G Enhance Non-Permanent Monitoring & Control Capabilities 20
  • 21. So let’s take a look… 21
  • 22. Water Treatment & Distribution 22
  • 23. Active energy management architectures …from Power Plant to Plug Possible Electricity Savings Saved ● Industry & Infrastructure 15% 678 TWh ● Data Center & Network 30% 410 TWh ● Building 20% 1,392 TWh ● Residential 15% 552 TWh 3,033 TWh annually Source: US DOE-EIA (Energy Outlook 2007), Green Grid for Data Centers, CIA Worldbook Industry Buildings are included in building and not in industry. SE estimations of possible savings based upon23 best practice design and behaviour changes
  • 24. Make the most of your energy™ Schneider Electric - Division - Name – Date 24