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THE U.S.

HIGH-TECH INDUSTRY
AND
ELECTRICITY DEMAND

AeA (American Electronics Association)


Electronic Industries Alliance (EIA)
Information Technology Industry Council (ITI)
High-Tech Energy
Working Group

OUR OBJECTIVES

Clarify the role of high tech in U.S. electricity demand picture


Highlight potential of our products as part of energy solution
Understand Administration perspective, scope of pending report
Explore next steps

High-Tech Energy
Working Group

OVERVIEW

U.S. high-tech industry drives job creation and economic growth

Electricity used in high-tech manufacturing

High-tech companies committed to energy conservation

Electricity used by high-tech products

The Internet potential

Backup data

High-Tech Energy
Working Group

THE U.S. HIGH-TECH INDUSTRY DRIVES JOB CREATION


AND ECONOMIC GROWTH

High-tech employment -- comprising producers of technology


products and services -- totaled 5.3 million in 2000 (4.8% of the total
U.S. private sector workforce). Source: AeA Cyberstates 2001

High tech contributed 50 percent of the acceleration in U.S.


productivity growth in the second half of the 1990s. Source: DOC, Digital
Economy 2000

Falling prices of high-tech goods and services have reduced overall


U.S. inflation by an average of 0.5 percentage points a year (from
1994 to 1998). Source: DOC, Digital Economy 2000
High Tech = information technology manufacturing, software and computer-related
services, and communication services

High-Tech Energy
Working Group

THE U.S. HIGH-TECH INDUSTRY DRIVES JOB CREATION


AND ECONOMIC GROWTH -- EFFICIENTLY

High-tech employment represents 10.6 percent of the U.S.


manufacturing workforce in 2000. Source: AeA Cyberstates 2001

High tech accounted for only 4.7 percent of all electricity purchased
by U.S. manufacturing industries in 1999. Source: AeA; Annual Survey of
Manufacturers.

High tech helps create a highly efficient economy: Information


technology improves communications between suppliers and
customers, facilitating U.S. manufacturers efforts to sell products
and reduce inventory. Source: DOC, Digital Economy 2000

High-Tech Energy
Working Group

ELECTRICITY USAGE IN MAJOR


MANUFACTURING SECTORS, 1999
180000000

156,945,358

kWh (in 1,000s)

160000000
140000000

Total manufacturing = 829,000,000 kWh

130,266,759

120000000
100000000
80000000
60000000

70,693,203
61,345,118

53,287,763
52,853,541
44,590,590

40000000

38,995,501
28,518,819

20000000

26,683,846
23,333,569
8,719,262

6,337,820
5,141,594

Sector
High-Tech Energy
Working Group

Source: AeA; Annual Survey of Manufacturers

HIGH-TECH COMPANIES COMMITTED


TO REDUCING ENERGY DEMAND FURTHER

Intel has set a 2001 corporate objective to reduce its energy


consumption by 10 percent this year.
Agilent Technologies is budgeting $20 million for projects aimed
at significantly reducing its energy consumption with the expectation
that these efforts will reduce energy consumption by 15 percent.
Hewlett Packards energy conservation efforts have helped it cut
five kilowatt-hours off its energy usage at its Cupertino campus
every year since 1991, despite having increased the size of the
facility by 300,000 square feet. Source: Silicon Valley Manufacturing Group

High-Tech Energy
Working Group

HIGH-TECH COMPANIES COMMITTED


TO REDUCING ENERGY DEMAND FURTHER (cont.)

Over the last 10 years, IBM has conserved an estimated 8.2


billion kilowatt hours of electricity and, as a result, avoided
approximately 5.66 million tons of carbon dioxide emissions,
while saving about $518 million in expenses.

Sun Microsystems commitment to energy conservation has


resulted in a 37% reduction in energy use at one facility and use
of more energy efficient photocopiers saved 220,000kw
nationwide during 1999. Source: Silicon Valley Manufacturing Group

High-Tech Energy
Working Group

QUICK REFERENCE CONVERSION TABLE


800

750

700
600

W atts

500
400
300
200

200

150

100

50

30

0
Laptop
(standby)

PC in energy
saving mode

Average PC +
monitor

40-watt bulb, 5
hrs/day

One
horsepower

Equipment Type

1 megawatt can power 1,000 homes


3.62 trillion kilowatt hours powered the U.S. in 1998
High-Tech Energy
Working Group

Source: Lawrence Berkeley National Labs; NOVA, PBSonline

ELECTRICITY USED BY HIGH-TECH PRODUCTS


High-tech products are NOT major component of national electricity
demand
Lawrence Berkeley National Labs (LBNL) has analyzed high-tech
energy demand and concluded:
Office and network equipment comprise only 2 percent of U.S.
electricity
Including telecommunications equipment and energy to produce
office equipment, demand share rises to only 3 percent
Analysis based on bottom up effort using best measured data

Source: Lawrence Berkeley National Lab (LBNL)

High-Tech Energy
Working Group

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POPULAR MYTHS
Media attention for previous analysis by Greening Earth Society
(GES) (Western Fuels Association) reached a different
conclusion:
Internet-related share of national electricity demand was 8
percent in 1998
Total electricity demand by all computers and office
equipment was 13 percent in 1998
Growth to 50 percent within 20 years
GES analysis was based on inaccurate data and assumptions
(see back up slide)

High-Tech Energy
Working Group

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MYTH

FACT

1. The Internet was responsible for 8


percent of all electricity use in 1998

1. This statistic is exaggerated by a


factor of 8

2. The entire digital economy


(including office, telecommunications, and
network equipment) accounted for 13 percent
(98)

2. It is actually about 3 percent.

3. Each Cisco router uses 1,000 watts


4. PC plus monitor uses 1,000 watts

3. Actual use is about 100 watts of power

Source: Mark Mills, The Internet Begins With Coal

4. PC plus monitor in use = 100-120


watts of electricity and dips to 20-25
watts or less in energy-saving mode

Source: Lawrence Berkeley National Labs (LBNL)

High-Tech Energy
Working Group

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Percent of Electricity Use Per Household

AVERAGE ELECTRICITY USAGE PER HOUSEHOLD


14
12
10
8
6
4
2
0

Appliance
High-Tech Energy
Working Group

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Source: EIA, A Look at Residential Energy Consumption, 1997

NEW PRODUCT GENERATIONS ARE INCREASINGLY


MORE EFFICIENT
1992
120

120

1993

100

70

1995

80
60
30

15

10

10

15

1999

HP LaserJet
X/X-1

HP LaserJet
A/A-1

2000
Copier (30
copies/min)

Monitor (any
size)

10
Computer (200
w atts)

16

15
30

20

1997

30

30

Multifunctional
Device

40

55

40

Printer, Fax, or
Combo

Watts

2001

Equipment Type
High-Tech Energy
Working Group

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Source: EPA Energy Star; Hewlett-Packard Company

THE INTERNET POTENTIAL

The Internet enables energy efficiency gains of two basic types:


Structural gains:
achieved when growth shifts to sectors of the economy that are
not particularly energy-intensive such as the high-tech industry
and away from sectors such as chemical manufacturing, pulp or
paper manufacturing, and construction, which are energyintensive
Efficiency gains:
achieved when businesses change their activities reducing
energy use relative to their output of goods and services
Source: Center for Energy & Climate Solutions

High-Tech Energy
Working Group

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THE INTERNET POTENTIAL -- STRUCTURAL GAINS


Structural gains could include:
Reduction of, or elimination of the need for, office space. By 2007, B2C
and B2B e-commerce together could avoid the need for 1.5 billion square
feet of retail space and up to 1 billion square feet of warehouse space.
Energy savings just from the operations and maintenance of these "unbuildings" could total 53 billion kilowatt hours per year, about 13 percent
of total electricity growth projected under business-as-usual scenarios.

Source: Center for Energy & Climate Solutions

High-Tech Energy
Working Group

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THE INTERNET POTENTIAL -- EFFICIENCY GAINS

Efficiency gains could include:


The use of the Internet to purchase goods. Internet shopping uses
less energy to get a package to a house: Shipping 10 pounds of
packages by overnight air - the most energy-intensive delivery uses 40 percent less fuel than driving roundtrip to the mall.
Shipping by truck saves 90 percent.

Source: Center for Energy & Climate Solutions

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Working Group

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MACRO TRENDS VALIDATE


ENERGY EFFICIENCY ROLE OF INTERNET
Rise of Internet has coincided with a decrease rather than an
increase in energy intensiveness of economy
Comparing pre-Internet era (1992-6) to Internet era (1996-2000):
GDP growth rate increased by nearly 50 percent, while
Electricity demand growth rates actually declined
If Internet was a significant energy hog, you would expect to see
accelerated electricity demand growth rates, not the decline the
data actually show

Source: Center for Energy & Climate Solutions

High-Tech Energy
Working Group

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GDP vs. OTHER GROWTH RATES


ANNUAL GROWTH RATES
1992-1996

1996-2000

5.0%
4.5%
4.0%
3.5%
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
Electricity

High-Tech Energy
Working Group

Energy

CO2

GDP

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Source: U.S. Department of Energy, Energy Information Administration

THE FOLLOWING PAGES


CONTAIN BACKUP DATA

High-Tech Energy
Working Group

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TECHNOLOGY SUCCESS STORIES

Intel has developed the "Instantly Available PC" (IAPC) power


management chip technology that enables PCs to meet the new
Energy Star standard of 15 watts sleep-state power consumption.
PCs with IAPC consume 63% less energy per year than nonpower managed PCs, driving an energy savings of over $10
billion in the US alone over the next 10 years.
This energy savings also reduces the pollution associated with
generating electricity, equivalent to taking nearly 22 million
cars off the road.

High-Tech Energy
Working Group

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TECHNOLOGY SUCCESS STORIES (cont.)

AMD flash memory semiconductors, found in a variety of


appliances, equipment and vehicles, consume very low
amounts of power, e.g. 0.002 0.036 watts, and these devices
consume so little current in standby (0.0000002 amperes) that
most test equipment cannot measure it.
AMDs microprocessor families support the Energy Star
computer specification of 15 W watts sleep-state power
consumption. AMD has also developed PowerNow!, a
combination of software and hardware, which allows set top
boxes to reduce power consumption up to 74%.

High-Tech Energy
Working Group

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TECHNOLOGY SUCCESS STORIES (cont.)

All of Sun Microsystems desktop products are Energy Star


compliant. Suns Sun Ray 1 appliance requires less than 20 watts
while the traditional unit requires as much as 100 watts. Source: Electronics
Industry Alliance, International Cooperative for Environmental Leadership, World
Resources Institute, Taking a Byte Out of Carbon

Canon has developed a new "on demand" fixer technology for


photocopiers that reduces energy consumption to 1/4th of the
conventional level, while dramatically reducing warm-up times.
Ricohs Aficio1035 copier, launched in 2001, use one-ninth of the
power of the Ricoh DS5330, launched in 1994 (34Wh/h/ 297Wh/h =
1/9 ).

High-Tech Energy
Working Group

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TECHNOLOGY SUCCESS STORIES (cont.)

IBM's revamped eServer z900 provides significant energy cost


and space advantages over traditional server arrangements.
Kodaks Digital Video Camera, the DVC323, allows customers
to shoot still pictures or motion video even to have a live
teleconference using home or office computers, which
substitutes energy intensive travel with remote interaction.
From 1994 to 1997, the computing speed of IBMs AS/400
Model 9406 computer has increased six times while its power
consumption in 1997 is only one-fifth of that in 1994.

High-Tech Energy
Working Group

Source: Electronics Industry Alliance, International


Cooperative for Environmental Leadership, World
Resources Institute, Taking a Byte Out of Carbon

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TECHNOLOGY SUCCESS STORIES (cont.)

Panasonics technologies include electronic toll collection


systems that automatically bill drivers for road tolls via an
exchange of signals between car-mounted and toll-station
equipment, thereby improving fuel efficiency. Source: Electronics
Industry Alliance, International Cooperative for Environmental Leadership, World Resources
Institute, Taking a Byte Out of Carbon

With approximately one third of the stock of copiers now Energy


Star compliant, it is estimated the current savings of the Energy
Star copier program to be 570 GWh/year. Source: Lawrence Berkeley
National Labs, "It's Midnight...Is Your Copier On? Energy Star Copier Performance

High-Tech Energy
Working Group

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EXAMPLES OF ERRORS IN GREENING EARTH


SOCIETY (GES) STUDY
Units

GES

Actual
Power used by phone
company central offices

kW

Actual

Ratio

500

estimate

estimate

GES/

55 9.1

Power used by mainframe computers + cooling

kW

250

19.2

Active power used by a typical PC + monitor

1000

150 6.7

Typical routers on the Internet W

1000

Typical routers on LANS and WANS

1000

50

Electricity used to manufacture a PC

kWh

1500

3005.0

13.0

30 3.3
20.0

Source: Lawrence Berkeley National Labs (LBNL)

Source: Lawrence Berkeley National Lab (LBNL)

High-Tech Energy
Working Group

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LOWEST STATE ELECTRICTY USAGE PER PERSON,


1998 RANKED

Rank State Electricity Usage Per person (MWh)


47New Hampshire 7.8
48Hawaii
7.8
49New York 7.2
50Rhode Island
7.0

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High-Tech Energy
Working Group

California

6.9

Source: AeA; Energy Information Administration,


State Electricity Profiles, 2000

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