Unlocking investment and financing for green innovation & energy efficiency · 2016-12-21 · In 2015 in OECD/IEA countries, efficiency avoided the consumption of:. Source: IEA Energy

Unlocking investment and financing for green innovation &

energy efficiency

Confidential Property of Schneider Electric |

Philippine de T’Serclaes, Sep l 2016

Dr. Philippine de T’Serclaes

November 3rd, 2016, OECD Workshop on Financing Green Infrastructure

New Energy World

Page 2Confidential Property of Schneider Electric |

Philippine de T’Serclaes, Oct 2016

New Energy World: more Electric, Decarbonized,

Decentralized and Digitized



If the 11 oz coffee on your desk

equals one gigabyte

A ZETTABYTEWould have the same volume as

THE GREAT WALL OF CHINA

By 2020 we’ll have created a total 73.5 zettabytes of data

Source : Cisco Visual Networking Index 2015/ Exponential Organizations

=That’s 73 followed by 21 zeros

Our Challenge in the next 40 years

WE HAVE TO BECOME

3 TIMES MORE

EFFICIENT

3x

Note: Forecast for 2015 compared to 2009 levels

2C02 EMISSIONS

NEED TO BE

HALVED

x1.5ENERGY

CONSUMPTION

Innovation is key



" Almost every way we make

electricity today, except for the

emerging renewables and

nuclear, puts out CO2. And so,

what we're going to have to do at

a global scale, is create a new

system. And so, we need energy

miracles."

Bill Gates

Co-Chairman of the Bill & Melinda Gates Foundation



800

1200

400

M€

600

1000

200

0

1400

2000 2015

~5%of sales devoted to R&D

20,000Patents active orin application worldwide

20,000+R&D & Solution Engineers• 10,000+ Solution Engineers• ~5,000 Software Engineers

--- R&D Spend over 15 Years ---

We have accelerated 3X investment to Innovation in

the past 10 years

But urgency is ENERGY EFFICIENCY





Among the 5 key actions to achieve a global emissions peak by

2030, implementing the potential of existing EE contributes to half

of overall emission savings



In 2015 in OECD/IEA countries, efficiency avoided the consumption of:

.

Source: IEA Energy Efficiency Market Report 2016

Efficiency gains in the IEA’s member countries in 2015 were

large enough to power Japan for one year.

Annual energy savings in 2015, IEA countries

UnrealizedPotential

RealizedPotential

58%

42%

Industry

79%

21%

Infrastructure

82%

18%

Buildings

Source : World Energy Outlook 2012, OECD / IEA, Internal analysis

Yet we still have massive untapped potential

Solutions are available now….



ServesSchneiderElectric

SOFTWARE &

ANALYTICS

ENERGY

AUTOMATION

world energyconsumption

>30%

~2%

>30%

Building & Residential

Data Centers & Networks

Industry

Infrastructure

70%

Source: World Energy Outlook 2012,OECD / IEA, Internal analysis

Massive Untapped

Efficiency Potential

>82%Buildings

~58%Industry

~79%Infrastructure

Markets

Customer Challenge• No internal expertise to implement solution

• Reduce general costs by enabling peak sharing

• Analyze data for actionable results

• Ensure solution complements existing systems

The Solution• Advanced Distribution Management System

(ADMS)

Customer Benefits • Significant cost and energy savings

• Complete visibility on distribution system

• Optimize voltage profile and enable peak sharing

• Established system able to predict impact of

power outage, generation & voltage variation

The Results: Life is On with...

Energy savings close to 5% equal to

145GWh of energy saved annually

Italy’s No. 1 power company,

Europe’s 2nd largest in installed

generation capacity serving over

61 million customers &

95000 MW of net installed

capacity


“The fact that we were able to

integrate Schneider Electric ADMS

with our existing systems (in

particular the SCADA system) has

proven to be one of the best

features yet”.

Christian Noce,

DMS Integration Manager,

Enel

Enel, ItalyEnhancing Advanced Distribution Management System (ADMS)

“Sustainability is about more than

a great BREEAM rating. It is also

about a building’s overall comfort

and efficiency for its occupants”.

Coen van Oostrom,

Founder and CEO of OVG Real Estate,

(owner/developer of the Edge)

This 40,000 m2 multi-tenant

office building in Amsterdam

consumes <0.3 kWh/m2/yr


The Edge (Deloitte) The world’s most sustainable office building

Customer Challenge• Maximize energy efficiency and sustainability

• Ensure the comfort, health and productivity of

occupants

The Solution• StruxureWare Building Operation software

• Power Monitoring Expert

• Electrical distribution and field devices

Customer Benefits • Single IP backbone for all building ecosystems

• Occupants control room comfort via smartphone

• Building data available via simple dashboards

The Results: Life is On with...Highest score ever awarded by the Building

Research Establishment (BRE) 98.36 percent

…but obstacles remain





$1 trillion annual investment in the energy sector is needed to achieve the

three Sustainable Energy for All objectives, EE > X4 relative to current levels

Data source: : Climate Policy Initiative (CPI), Global Landscape of Climate Finance 2015, Global Tracking Framework 2015

(World Bank)/ SE4All Finance Committee Report 2015, Estimates are derived from various sources: SE4All Finance

Committee Report (2014), Energy for All Scenario WEO (IEA 2012), 450 scenario, WEO (IEA 2014), Remap 2030 (IRENA

2014).

Current Investment Energy Access Renewable Energy Energy Efficiency Required AnnualInvestment to 2030

X3 Investment gap:

US$ 654~862 Bn

X4

X2

X5

US$ 391 Bn

US$ 1051~1259 Bn

+45

Investment required to achieve the three SE4All objectives

(Bn of US$)

+184~392

+430

Whether or not we manage to tap into that potential will depend on

whether or not we resolve / bridge the financing gap

1

1. Increase in investment compared to current levels to bridge in investment gap


Philippine de T’Serclaes, Oct 2016Data source: Climate Policy Initiative (CPI), Global Landscape of Climate Finance 2015



Ecosystem of stakeholders to act and advance the implementation of EE

technologies and green technologies

Private actors

gov

International

Institutions

•Commercial banks

•Institutional investors (pension

funds, insurance companies,

investment funds etc)

•Project developers

•Corporate actors

•Households

•UNFCCC

•Bilateral agencies

•Multilateral Development

Finance (MDBs)

•International Climate Funds

•Carbon finance

•State gov,municipalities

•Gov cooperation agencies

•Domestic development finance

institutions:

•Green Investment Banks (GIBs)

"Solving climate change will

require perhaps the largest

public-private partnership the

world has ever attempted."

John Kerry

United States Secretary of State

April, 2016



“I have never before been so excited, (..)

the need for cooperation between

governments and non-public actors has

never been as great as it is now.”

― Klaus Schwab,

Founder and Executive Chairman, World Economic

Forum

January, 2016



Annex



THANK YOU.



Documents

Unlocking investment and financing for green innovation & energy efficiency · 2016-12-21 · In 2015 in OECD/IEA countries, efficiency avoided the consumption of:. Source: IEA Energy