Convergence of Green and Intelligent Buildings

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1 Convergence of Green and Intelligent Buildings Philippe Delorme Executive Vice President, Schneider Electric Indian Green Building Congress October 20, New Delhi, India

2 Energy Efficiency and the Energy challenge 2

3 The Energy challenge is the cornerstone of our business strategy The facts The need Energy demand by 2050 Electricity by 2030 Source: IEA 2007 vs CO 2 emissions to avoid dramatic climate changes by 2050 vs level we want to help address this challenge 3

4 The Energy challenge in India - Energy demand Total Floor Space (Billion m 2 ) Includes Commercial and Residential 5 41 X 7 X Vehicle Fleet (Millions) Includes 2 and 3 wheelers, Passenger Vehicles, Buses and Trucks Total Power Demand (Terawatt hours) Includes both Utilities and Captive 3870 X 5 X 7 Cement Demand (Million tonnes) Source: McKinsey analysis 4

5 The Energy challenge in India - Carbon emissions World 29,381 China USA Russian federation India Japan Latin America Africa Germany France UAE 6,550; 22% 5,595; 19% 1,593; 5.4% 1,427; 4.9% 1,151; 3.9% 1,068; 3.6% 889; 3% 804; 2.7% 368; 1.3% 147; 0.5% India could become the SECOND largest emitter of GHG emissions in the world at a per capita emission of 5 tonnes of CO2 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Source: CO2 Emissions from Fuel Combustion IEA (2010) Million Tonnes of CO2 5

6 Energy efficiency is 50% of the answer World energy-related CO 2 emissions abatement Source: World Energy Outlook, OECD / IEA 6

7 Energy efficiency is a no-brainer: the best Watt is the negawatt! Energy Efficiency is the cheapest, fastest, cleanest and most effective way for governments, companies & citizens to address their Energy issues. Energy Efficiency saves energy, money and Carbon emissions, with a quick payback, across all industries and installations. 7

8 Energy Efficiency is an even bigger No-Brainer in India Power plant efficiency: 33% T&D loss: 27% Coal 100 units 33 units 24 units 1 unit saved at end user 4.2 units saved at the power plant T & D Losses also include electricity losses unaccounted for Source: Central Electricity Authority (2009) 8

9 Our unique approach to Energy Efficiency 9

10 Schneider Electric: the global specialist in energy management Balanced geographies FY 2010 sales Year-end 2010 employees billion sales in 2010 % of sales in new economies North America 24% 26,000 Rest of World 18% Western Europe 34% 41,700 Asia Pacific 24% 31,900 19,200 people in 100+ countries of sales devoted to R&D Diversified end markets FY 2010 sales 1 Utilities & Infrastructure 20% Industrial & machines 24% Data centres 17% Non-residential buildings 30% Residential 9% 90% of group sales as world #1 or 2 player 1 Proforma with Areva D integrated on 12-month basis 10

11 Schneider Electric in India Assets 15,000 People Innovation 1,000 R&D Staff Footprint 31 Factories + Collaboration 2,000 Channel partners 25,000 Point of sales External growth 6 Acquisitions in past 24 months 11

12 Our approach to Energy Efficiency is simple and actionable It combines: An efficient and proven recipe, competitive, available, easy-to-implement solutions integrated at building or enterprise-level supported by a network of expertise. 12

13 Our recipe: Energy Efficiency is like a diet You can only manage what you know. The only way to know is to measure. 1. Audit & Measure Passive Energy Efficiency Active Energy Efficiency Fix the basics Optimise through automation & regulation Monitor, maintain, improve 2. Switch to energy efficient materials and equipment. 3. Only use what you need, when you need it. 4. Use monitoring and maintenance services to continuously improve performance and control your savings 13

14 Integrated architectures drive efficiency EcoStruxure provides 24/7 control & supervision It helps to manage process continuity on one site optimise efficiency across multiple sites create Sustainability reports at enterprise level Up to 30% savings on Capex and Opex 14

15 Network of expertise Sharing knowledge: Energy University (external) Alliances and Partners: BEE and Bureau of Indian Standard Reaching out: Academia Building Skills Energy Management Course and Electrician Training Programs 15

16 Making buildings intelligent = energy-efficient + green 16

17 Building Sector in India a fast-growing sector 60-70% of buildings in 2030 yet to be built an energy-guzzling sector Electricity growth at 13% per year in the commercial sector over last five years Large proliferation of DG-powered or DG-backup a partially regulated, multi-labelled sector Many certification programs to choose from but gap between registrations (1280 buildings) and certifications (200 buildings!) a diverse sector public and private buildings offices, hospitals, hotels and shopping malls all have different needs and a largely non-energy efficient sector. Except for pockets of excellence (e.g. green buildings) Typical new construction have poor Energy Performance Index (kwh/m2/year) 17

18 Key attributes of a Performance Indicator Easy-tounderstand KWh/m2/yr Measureable Visible is what we need to look at 18

19 Needed: a Smart Building Vision Future Focus on green buildings: renewable energy, micro grids, electric vehicles and eco-districts (smart buildings) Today Focus on operational performance over time (efficient buildings) Past Focus on environmental impact of construction (green design) 19 Time

20 with a roadmap to achieve it Building certification/labeling schemes LEED, GRIHA Policies to promote energy efficiency in existing buildings ESCO and Star Labelling Help develop energy management capability ISO

21 and a Web-based Benchmarking Tool ( 21

22 Key Stakeholders and Impact of Performance Indicator Government Policy and Regulation (Design Standards and Building Labeling) Technology and Service Providers (Benchmarking, Audits, Retrofits) Influence Customer Behavior Building Designers (Design Brief Based on Performance, Energy Simulation) Academia / Educators (Curriculum to Reflect New Design Standards / Requirements) 22

23 We Walk the Talk: Schneider Electric s headquarters 4 Final energy consumption vs. previous sites in the area 80 kwh/m²/ an Final energy consumption ROI in 5 to 7 years A smart building Equiped with Schneider Electric solutions Electric Vehicles charging station with PV solar panel roof, connected to the building vs to the grid Certified ISO14001 HQE Exploitation NF EN16001 ISO 50001: first certified building in the world! 23

24 From smart buildings to the smart grid and to smart cities 24

25 Smart buildings will help make the Smart Grid happen Flexible Distribution Demand Response Residential Industry Buildings Efficient homes Electric Vehicles Smart Generation Data Centres Efficient buildings Infrastructure Smarter Demand Smarter Supply Demand Response the Smart Grid 25

26 Smart buildings play a key role in tomorrow s Smart Cities City Challenges SmartCity Solutions Smart Cities 5 domains of expertise Integrated for performance In a collaborative model Smart Grid Managing the growing demand in electricity while improving customer service Smart Mobility Facilitating resident mobility through better information & interoperability Smart Water Managing water hazards and growing water demand Smart Public Services Efficiently managing public safety, healthcare, and govt. administration Smart Buildings & Homes Optimizing resource consumption & comfort for buildings & homes 26

27 In conclusion Energy Efficiency is must and a no brainer Solutions do exist today in buildings and Industry It is time to act, Now and Together 27

28 Make the most of your energy 28