andreas schierenbeck, president, building technologies, siemens inc

DRV Aug. 2010

September 2010 Andreas Schierenbeck / UCLA Building Technologies

Solutions for Smart Consumption

Andreas SchierenbeckPresident, Building Technologies

© Siemens AG 2010. All rights reserved.

DRV Aug. 2010


Megatrends The world's toughest questions

It’s getting warmerHighest CO2 concentration in the last 350,000 years

We’re living longerAverage life expectancy increased from ~35 years to ~65 years within one century

There are more people in citiesIn 2050, 9 billion people will live on our planet; many in cities

We’re doing business in more places GDP of Least Developed Countries has tripled within the last 20 years

Climatechange

Demographicchange

Urbanization

Globalization

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What we know about cities

Megatrends pose urgent challenges to cities

Cities cover less than 1% of the earth's surface but are disproportionately responsible for causing climate change

Currently, around 50% of the world’s population live in cities. Until 2030, 60% of the world's population growth will occur in cities

Cities consume ~ 75% of the world's energy and are responsible for up to 75% of GHG emissions and account for 60% of the world's water use

Osaka at night

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Different cities have different challenges

Developed cities Megacities Planned future cities

Moderate transition Dramatic growth Forward looking

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What we know about buildings

Lif

e cy

cle

cost

s 80%20%

50 0-1

Cost

Years 1-2 2-5

Operation / renovation Demo-lition

Design Build Operation cost 60%

Energy cost 40%

40% life cycle cost of a building is consumed in energy

Transport28%

Industry31%

Buildings

41%

(direct emissions from primary energy

usage)

(indirect emissions through power usage)

2211

138

1418

14

Forestry 14Agriculture / wast 18Transport 14

Industry (direct emissions from primary energy usage)

Industry (indirect emissions through power usage)

Buildings

40% of world wide generated energy and 21% of CO2

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Buildings consume the most energy, and generate the most CO2 emission in developed cities

Example: Los Angeles Mix of CO2 emissions (Total 47 Mt 2005)

The distribution of CO2 emission inother developed cities varies (Population size, industrial activities and weather conditions

Industry7 %

Transport26 %

Buildings67 %

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Zero net energy buildings …Holistic approach can also save significant energy

Energy consumption (heating, cooling, ventilation, hot water …)

On-site energy generation (solar, wind, geo-thermal …)

Storage (building hull, water tanks)

Efficiency in the building(demand control, lighting, air-quality)

Zero net energy buildings are coming: CA 2020-2030 / EU 2018

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Energy saving possibilities

1) High energy efficiency (Class A) compared to standard equipment (Reference Class C) EN 15232 – Impact of BACS and TBM on energy performance of buildings

Energy savings are possible, in every building – in every business

HospitalHospital

26%26%

HotelHotel

41%41%

ResidentialResidential

27% 27%

Restaurant Restaurant

41%41%

SchoolSchool

26%26%

OfficeOffice

52%52%

Shopping

Shopping

49%49%

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Overall savings potential is substantial (average pay back < 5 years)

World-wide energy efficiency potential$189 billion

Energy efficiency potential in commercial buildings in U.S.: $120 billion

18

120

51

189

USTotal GER RoW

Public sector43 %

Healthcare22 %

Offices12 %

Industries 7 %

Hotels 4 %

Retail 4 %

Other 9 %

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Smart building: Dell Children’s Medical Center,Austin, Texas

World’s first LEED Platinum healthcare facility

80% of interior daylit

Efficiency measures save enough energy to power about 1,800 homes

APOGEE integration of all major systems

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Smart building: Duke Energy Center, Charlotte, North Carolina

LEED Platinum core and shell

Uses 22% less energy than comparable structure

Daylight harvesting

Groundwater/rainwater harvesting

Sophisticated sensing; daylight occupancy, lighting, etc.

Siemens “Smartest Building in America” contest winner

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Energy Efficiency in buildings is also profitable

Value of efficient buildings

Green Buildings are 0-5% more expensive

• Approx. 500 buildings analyzed in USA with Energy Star or LEED certification

• Compared with 10,000 buildings with similar location and quality standard

Financial benefits

Overall, 6% higher rental rates

16% higher selling price

Source: Eichentholtz, Kok, Quingley: “Doing Well by Doing Good? Green Office Buildings” (2009), University of Maastricht, University of Berkley

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Monitoring buildings from inception to renewal

No BACS

BACS without Energy

Monitoring

BACS with Energy

Monitoring

100%

90%

80%

70%

60%

Time

En

erg

y co

nsu

mp

tion

BACS withadditional

Energyefficiency measures

Energy consumption in buildings Siemens Strategic Energy Management

Monitoring and controlling building energy systems

Expert analysis from building data

Recommendations for optimization strategies

Implementation of efficiency measures

Holistic approach for smart energy consumption, storage and generation

Building Automation + Energy Management = Maximize Efficiency!

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We maximize the efficiency for our own buildings!

Siemens Industry facility, Plymouth, Mich. Mobility Factory, Sacramento

1- MW solar PV, offsets power 50%

Offsets 700 tons Co2 annually

5,200 solar PV panels installed by BT

We also “Walk the Talk”

LEED CI certified 2010

Energy consumption reduced 25 %

Solid waste reduced 25 %

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Energy Management has been in our DNA … for decades

We have modernized more than 8,000 buildings …

Saved more than $2 billion for our customers

And 1 million tons Co2 annually

24/7 Continuous monitoring and reporting Expert data analysis and benchmarking Energy efficiency measures with maximum results

“Newly launchedWeb-optimized energy management platform

now protecting over50,000 buildings worldwide … and growing”

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Fill storage / Load E-car Load thermal elements

(boiler, ice) Turn-off CHP

All consumers normal operation and build reserves within comfort band

Energy storage Use reserves E-car Empty thermal storage

(boiler, ice)

All consumers to minimumlevel in comfort band

Smart Buildings Interact with the grid and earns you money

Building is energyconsumer to power grid

Building Management System

Energy consumer

Energy storage

Combined Heat and Power

Low energy tariffs High energy tariffs

Building may evendeliver energy to grid

GridGrid

The solutions is centered around an intelligent building energy management system that controls consumers, storage and on-site

generation. Goal is to shift loads for energy cost reductions

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Building operators are incentivized to shed loads

Few occasions p.a., usually on hottest days

Primitive technical solutions with manual interaction and notification

Unreliable user behavior leads to need of high over-subscription

Load shedding usually results in comfort loss

Today 6% of US peak load are under contract

Demand Response OfferingsExploding peak prices

USA:5% peak reduction would save the 3bn USD each year:

Price of electricity supply

Supply

Quantity of electricity

QDRQ

P

PDR

Price reduction

Peakdemand reduction

Demand Response allows utilities to significantly reduce costs

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From few events per year to daily interactions

From primitive load shedding to long-term load shifting and co-generation

From incentive based Demand Response Programs to Real-Time Pricing

From manual interaction to fully automated interactions

Financial Benefit for Building Operator will increase dramatically

Changes in Grid InteractionVolatile Renewable Energy

The Next Generation of Demand Response has to deal with volatile renewable energies

Example of Denmark shows that wind-energy already exceeds demand!

(January 2008, selected part of Denmark)

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Shifting energy load is possible

Population projection: 50,000

Energy requirement day-time: 160 MW

Energy requirement night-time : 70 MW

Loads open to shifting: Chillers (District cooling): 50 MW Water pumps: 10 MW Buildings: 15 MW Lighting: < 1 MW

Population 290,000

Energy requirement per day: 180 MWPeak usage: 257 MW

Loads open to shifting: Industrial operation: 20 MW Water pumps: 5 MW Buildings: 20 MW Lighting: < 1 MW Apartments with

electrical heating: 70 MW

Masdar City, Abu Dhabi Karlsruhe, Germany

Shiftable load: 25 – 45% Shiftable load: 33%

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Smart Grid - Smart Consumption - Smart Buildings?

Energy storage Pricing CO2 reduction

Energy efficiency E-car integration

Optimizing

Avoid investments in new power plants

Increase power quality Integrate volatile renewable

energy E-Car charging

Balancing the grid

Consumption follows Generation:There is no Smart Grid without Smart Buildings

Demand Response

Price of electricity supplySupply

Quantity

QDRQ

P

PDR

Price reduction

Peakdemand reduction

Demand

Consumption to grid

Supply

24h0h

Smart Consumption

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>80% of installed base in Germany Energy efficiency is insufficient

History of energy saving policyin Germany

Regulation sets energy efficiency standards

Implementation is even better

But far away from possibilities

• New buildings are energy efficient, but…

• 80% of installed base is far off..

• Survey beyond 400 companies 56% will invest in energy efficiency in the years to come

Regulation vs.Regulation vs.

RealityReality

Drives regulations - change?

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Conclusions

Smart consumption can reduce emissions by ~75%; save billions in avoided energy costs,

capacity additions

No need to invest in new technologies; all the tools and technologies we need are already

here

Financial tools and regulatory / legislative environment set to help movement succeed

Economic / environmental Benefits

We havesolutions now

Motivation

andreas schierenbeck, president, building technologies, siemens inc

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