DRV Aug.

2010

Solutions for Smart Consumption

Andreas Schierenbeck
President, Building Technologies

© Siemens AG 2010. All rights reserved.
Page 1 September 2010 Andreas Schierenbeck / UCLA Building Technologies

1% 5%

Megatrends The world's toughest questions

DRV Aug. 2010

Demographic change

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

Globalization

We’re doing business in more places

GDP of Least Developed Countries has tripled within the last 20 years

Urbanization

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

Climate change

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

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

What we know about cities
Megatrends pose urgent challenges to cities
Osaka at night

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
Page 3 September 2010 Andreas Schierenbeck / UCLA Building Technologies

DRV Aug. 2010

Different cities have different challenges
Developed cities Megacities Planned future cities

Moderate transition
Page 4 September 2010

Dramatic growth
Andreas Schierenbeck / UCLA

Forward looking
Building Technologies

DRV Aug. 2010

What we know about buildings
Industry (direct emissions from primary energy usage) Industry (indirect emissions through power usage) 22 11 Buildings 8 (direct emissions from primary energy usage) 13 (indirect emissions through power usage)

Transport 28%

Industry 31%

Forestry 14 Agriculture / wast 18 Transport 14 14 18 14

Buildings 41%

40% of world wide generated energy and 21% of CO2
Life cycle costs
Cost

20% Build Operation / renovation

80%
Operation cost 60% Energy cost 40%

Design

Demolition
0-1

Years 1-2

2-5

50

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40% life cycle cost of a building is consumed in energy
September 2010 Andreas Schierenbeck / UCLA Building Technologies

Buildings consume the most energy, and generate the most CO2 emission in developed cities
Example: Los Angeles

DRV Aug. 2010

Mix of CO2 emissions (Total 47 Mt 2005)
Industry 7% Transport 26 % Buildings 67 %

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

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

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

DRV Aug. 2010

 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
Page 7 September 2010 Andreas Schierenbeck / UCLA Building Technologies

DRV Aug. 2010

Energy saving possibilities

Hospital

Hotel

Residential

Restaurant

School

Office

Shopping

26%

41%

27%

41%

26%

52%

49%

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

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 Page 8 September 2010 Andreas Schierenbeck / UCLA Building Technologies

Overall savings potential is substantial (average pay back < 5 years)
World-wide energy efficiency potential $189 billion

DRV Aug. 2010

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

189 120

Industries 7 % Hotels 4 % Retail 4 % Other 9 % Offices

12 % 18 51
Total US GER RoW

Healthcare 22 %

Public sector 43 %

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

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

DRV Aug. 2010

 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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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

Smart building: Duke Energy Center, Charlotte, North Carolina

DRV Aug. 2010

 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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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

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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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

Monitoring buildings from inception to renewal
Energy consumption in buildings
100% No BACS

Siemens Strategic Energy Management

Energy consumption

90%

BACS without Energy Monitoring BACS with Energy Monitoring

80%

 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

70% BACS with additional Energy efficiency measures

60%

Time

Building Automation + Energy Management = Maximize Efficiency!

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

We maximize the efficiency for our own buildings!

Siemens Industry facility, Plymouth, Mich.

Mobility Factory, Sacramento

 LEED CI certified 2010  Energy consumption reduced 25 %  Solid waste reduced 25 %

  

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”

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

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

“Newly launched Web-optimized energy management platform now protecting over 50,000 buildings worldwide … and growing”

 24/7 Continuous monitoring and reporting  Expert data analysis and benchmarking  Energy efficiency measures with maximum results
Page 15 September 2010 Andreas Schierenbeck / UCLA Building Technologies

Smart Buildings Interact with the grid and earns you money
Low energy tariffs
 Fill storage / Load E-car  Load thermal elements (boiler, ice)  Turn-off CHP All consumers normal operation and build reserves within comfort band Building is energy consumer to power grid
Building Management System

DRV Aug. 2010

High energy tariffs
 Energy storage  Use reserves E-car  Empty thermal storage (boiler, ice) All consumers to minimum level in comfort band

Energy consumer

Energy storage

Building may even deliver energy to grid

Combined Heat and Power

Grid

Grid

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
Page 16 September 2010 Andreas Schierenbeck / UCLA Building Technologies

Demand Response allows utilities to significantly reduce costs
Exploding peak prices
Price of electricity supply Supply

DRV Aug. 2010

Demand Response Offerings
 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

P Price reduction Peak demand reduction QDR Q Quantity of electricity

PDR

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

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

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

DRV Aug. 2010

Volatile Renewable Energy

Changes in Grid Interaction
 From few events per year to daily interactions  From primitive load shedding to long-term load shifting and cogeneration  From incentive based Demand Response Programs to RealTime Pricing  From manual interaction to fully automated interactions Financial Benefit for Building Operator will increase dramatically

Example of Denmark shows that windenergy already exceeds demand!
(January 2008, selected part of Denmark)

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

Shifting energy load is possible
Karlsruhe, Germany Masdar City, Abu Dhabi

Population 290,000 Energy requirement per day: Peak usage: Loads open to shifting:  Industrial operation:  Water pumps:  Buildings:  Lighting:  Apartments with electrical heating: 180 MW 257 MW 20 MW 5 MW 20 MW < 1 MW 70 MW

Population projection: 50,000 Energy requirement day-time: Energy requirement night-time : Loads open to shifting:  Chillers (District cooling):  Water pumps:  Buildings:  Lighting: 160 MW 70 MW 50 MW 10 MW 15 MW < 1 MW

Shiftable load: 25 – 45%
Page 19 September 2010 Andreas Schierenbeck / UCLA

Shiftable load: 33%
Building Technologies

DRV Aug. 2010

Smart Grid - Smart Consumption - Smart Buildings?
Optimizing
 Energy storage  Pricing  CO2 reduction  Energy efficiency  E-car integration

Demand Response
Price of electricity supply Supply

P PDR

Price reduction

QDR Q

Peak demand Quantity reduction

Balancing the grid
 Avoid investments in new power plants  Increase power quality  Integrate volatile renewable energy  E-Car charging

Smart Consumption
Demand

Supply

Consumption to grid

0h

24h

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Consumption follows Generation: There is no Smart Grid without Smart Buildings
September 2010 Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

Drives regulations - change?
History of energy saving policy in Germany

Regulation vs.
 Regulation sets energy efficiency standards  Implementation is even better  But far away from possibilities

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

Reality
• 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

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

Conclusions

Economic / environmental Benefits

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

We have solutions now

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

Motivation

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

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September 2010

Andreas Schierenbeck / UCLA

Building Technologies

DRV Aug. 2010

Solutions for Smart Consumption

No excuses!

© Siemens AG 2010. All rights reserved.
Page 23 September 2010 Andreas Schierenbeck / UCLA Building Technologies

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