APC 2013 Annual Report Download - page 19

OVERVIEW OF THE GROUP'S STRATEGY, MARKETS AND BUSINESSES
SCHNEIDER ELECTRIC STRATEGY AND MARKET OPPORTUNITIES
Millions of men, women and children will see their living A smarter grid combines smarter supply (the efficient integration
standards rise: while today 1.3billion people lack access to of renewable energy sources, flexible distribution), smarter
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energy (20% of the world’s population), this number will fall to demand (energy-efficient sites and homes, connected to the
990million in2030, or 12% of global population. grid), and demand response to balance the two.
These dramatic shifts will change our world. In economic terms, Schneider Electric is active in five key domains of the smart grid:
it means that new economies are the drivers of global growth flexible distribution, renewable energy integration, efficient
–and this trend should continue for years to come. buildings, electric vehicle charging infrastructure and
demand-response. Recent acquisitions have considerably
In addition to the growing industrialization of these countries, strengthened our play –from Areva’s Distribution business to
there is movement of reindustrialization in some mature Energy Pool and Vizelia in2010 and Summit Energy and Telvent
economies such as the United-States. The drop in energy price in2011.
and the decrease in labor prices have resulted in chemical and
petrochemical industries coming back to the US.
Active Energy Efficiency
The growing trend of industrialization in emerging markets
promises business growth and expansion opportunities for Energy Efficiency, producing higher energy service for the same
Schneider Electric. For long term sustainable development in amount of primary energy input is an essential part of the
these emerging markets, Schneider Electric will have to focus on solution to the global energy challenge.
combining its global value chain with local partnerships to
contribute toward the economic development through job In its World Energy Outlook, the International Energy Agency
creation and poverty reduction. For industrial competitiveness, (IEA) estimates that the various energy efficiency policies that are
Schneider Electric will have to invest in enhancing its production being introduced in many countries across the world could
capacity, physical & technological infrastructure to meet the account for about 70% of the reduction in projected global
growing demands for standardized and cost efficient products energy demand in2035, and 68% of the cumulative global
and services. savings in CO2 emissions. This compares with a 46% increase in
global energy demand by2035 if nothing changes.
Schneider Electric’s strategy of spreading its presence between
regions and increasing presence in emerging countries, a Boosting Energy Efficiency on the 3major energy-consuming
presence that has grown from approximately 20% in 2000 to sectors (industry, buildings and homes) could help a country
43% in 2013, has enabled Schneider Electric to seize the reduce its overall energy use by 15% to 25% –in effect
opportunities in these new markets and will continue to do so in providing a very attractive business case in both mature and new
years to come. Schneider Electric currently holds significant economies. Energy Efficiency also offers an excellent payback:
presence in new economies in Asia, Africa, Middle East, Latin according to the IEA, every euro invested, in particular in
America, Eastern Europe and Russia (now the 5thmarket in buildings, would yield 1.6euro in energy savings.
Schneider Electric) – the decision to split its Executive Committee Alongside traditional “passive” energy efficiency technologies
into three management hubs, a pioneer management decision, such as building insulation and energy-efficient equipment,
allows Schneider Electric to be close to its customers in all “active” energy efficiency means measuring the energy
markets – remaining local while being global. consumption of a site and optimizing its performance and usage
Digitization & the smart grid
through the use of power and automation technologies. One
simple example is to automatically adjust lighting and heating to
room occupancy – adapting to external conditions while ensuring
In the past 20 years, Internet has connected 2.5billion people users’ comfort. Active Active Energy Efficiency is the critical and
together. In the coming 8 years, this number will double. fast way to achieve energy savings.
Concurrently the Internet will connect 40billion machines to This helps to continuously optimize energy performance
those 5billion connected people. The ensuing access to throughout the building’s lifecycle – providing overall efficiency.
real-time information will grant all stakeholders the opportunity to Active energy efficiency can save up to 30% of a building’s
implement active energy efficiency. The advantages of energy energy needs, significantly improving a company’s carbon
efficiency are numerous and impact the entire energy chain from footprint while deliveringsavings on its charges, with limited
people to power plant to ensure a complete optimization of the upfront investment. Building automation is also a key enabler of
supply chain. the Smart Grid, facilitating Demand side management by
connecting buildings smartly to the grid.
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2013 REGISTRATION DOCUMENT SCHNEIDER ELECTRIC