IntroductionsJoel MakowerExecutive Editor, GreenBiz Group www.greenbiz.com/verge12
Thanks to our sponsors PATROCINADOR PREMIER PARCEIRO PREMIER PATROCINADOR PARCEIROS DE DIVULGAÇÃO CEBDS www.greenbiz.com/verge12
Needed: Radical efﬁciencies in building & transportation energy Buildings & transportation 75% of electricity is used by buildings consume the majority of the world’s energy. 70% of petroleum is used by vehicles www.greenbiz.com/verge12
Energy systems are becoming increasingly complex Buildings, energy & transportation are becoming inextricably Centralized Distribution linked. Diversiﬁed Distribution www.greenbiz.com/verge12
IT and ubiquitous connectivity change the game rs Smart Grid Senso /RFID Internet of Things Big Data “VERGE is right at the center of where sustainability location/Mobi cial Internet eo le So needs to go.” G Cheap Computational Power Tim O’Reilly Founder & CEO O’Reilly Media www.greenbiz.com/verge12
New products, services and business models for consumers The lines are blurring between hardware, software, products, and services www.greenbiz.com/verge12
Vast opportunities for radical resource efﬁciency • Lower operating costs and new efﬁciencies • Vast new operational efﬁciencies for throughout the supply chain companies, campuses and cities www.greenbiz.com/verge12
GreenBiz created VERGE to deﬁne and accelerate these opportunities FOCUS STANDARDIZE LEGITIMIZE ENERGIZE the community around a a framework for evaluating products and services for market development alongsidecommon deﬁnition and set of new developments in the vendors as well as speciﬁers and tech innovation. issues. space. decision-makers www.greenbiz.com/verge12
Nurturing the emerging ecosystem Supply Demand Har met d war es er s e man , Softw ca mpu al age are , itu tion con & Se trol rvic inst s e mon s: citie itor utilities/industrial electro mobility CONVERGING ENERGY, INFORMATION, BUILDINGS & TRANSPORTATION corporate campuses n ge eneratio military stora te g com o n-si mer cial reta buil il y le e nerg dings wab rene Philadelphia San Francisco Policy Finance Research NGOs www.greenbiz.com/verge12
Big Data Operations& Cities 2.0Jose Carlos DuarteChief Technology Ofﬁcer, IBM www.greenbiz.com/verge12
Smarter PlanetINSTRUMENTED + INTERCONNECTED + INTELLIGENT Jose Carlos Duarte Chief Technology Officer, IBM
These Challenges are most obvious in CitiesIn 2007, for the first time in history, the majority of the world’s populationlived in cities – 3.3 billion. By 2050, city dwellers are expected to make up70 percent of the Earth’s total population – 6.4 billion. Brasil: 81% already live in cities – source: ibge 2010 Jose Carlos Duarte Chief Technology Officer, IBM
A Smarter City is one that increases prosperity by… Using information to make insightful decisions Predicting problems to resolve them proactively Coordinating its resources to operate effectively Jose Carlos Duarte Chief Technology Officer, IBM
Smarter cities leverage their collective intelligenceHow is this done…Gather data about city systems.Apply analytics & optimization. Delivering insight in “near realtime”.Integrating insight to reduce costs, cut emissions, reduce waste,improve public safety.Provide continuously updated views of possible “future states” tosupport decision making Jose Carlos Duarte Chief Technology Officer, IBM
IBM and the City of Rio collaborated to deliver a successful Operations Center in record time Jose Carlos Duarte Chief Technology Officer, IBM
Research focus on ﬁne-Grained Weather and Flood Modeling and Rio de Janeiro Incident Management:Prediction, IBM Research Brazil high resolution area topography 90x90km at 1km resolution Rio de Janeiro City Total precipitation forecast 48 hours ahead Flooding prediction Flooding points7 Jose Carlos Duarte Chief Technology Officer, IBM
Rio De JaneiroIntelligent Opera1ons Center"This Center positioned Rio among the WW Smarter Cities, and that was my dreamwhen I became Mayor; now it is a reality."- Eduardo Paes, Mayor, City of Rio de Janeiro as quoted by O Globo"We (from IOC) are very impressed about the Center. We can see Rio de Janeiro is verywell advanced in terms of preparation for the Olympic Games. This Center is the mostmodern that we have seen."- Jacques Rogget, President, International Olympics Committee as quoted by OGlobo 8 Jose Carlos Duarte Chief Technology Officer, IBM
Innovative Waste toEnergy TechnologyAdriana MachadoCEO, General Electric www.greenbiz.com/verge12
GE todayGE Energy 30% / $43.7 B Healthcare 12% / $18.1 B GE Capital 30% / $45.7 B Oil & Gas Aviation 12% / $18.9 B Home & Business Solutions 6% / $8.5 B Energy Management Transportation 3% / $4.9 B Power & Water~$147B Revenue in 2011 … $5B R&D 300,000 employees +100 countries 2 GE Title or job number 10/14/12 Adriana Machado CEO, GE
GE in Brazil Power Conversion GE Healthcare GE HC XPRO GE Industrial GE Transportation Betim, MG Contagem, MG Belo Horizonte, MG Contagem, MG Contagem, MG Switchgears & Control gears X-ray & Mammography X-ray Electrical Components Locomotives & OHVs Services 6,500 m2 area 14,000 m2 area Brazil Technology Center GE Celma Wellstream 92 years in the country Rio de Janeiro, RJ Petropolis, RJ Niterói, RJ… Offshore, risers & flowlines, 14 Industrial Facilities & (in construction) Aviation well svcs Service Shops Aero shop GE Oil & Gas Dresser Wayne 1Technology Center +7.1k employees Petrópolis, RJ Macaé, RJ Bonsucesso, RJ P&W E&P services O&G GE Oil&Gas GE Water GEVISA Dresser Masoneilan Sorocaba, SP Campinas, SP Jandira, SP Reverse Osmosis & Chemicals Motor & Generators São José dos Campos, SP Subsea equipment 1,620 m2 area 56,000 m2 area O&G
Ecomagination is about innovative solutions that optimize resources, delivergreat economics and make the world work better. Innovation Solutions Collaboration Portfolio of 140+ Products & Services Optimize Drive operating resources performance Adriana Machado CEO, GE
ecomagination Progress 2011 : for 2015Our Progress in 2011 Goals • Double R&D to $10B from 2010-2015 • Expand our focus beyond clean energy • Grow 2x GE’s growth • Reduce GE’s energy intensity by 50% • Reduce water consumption by 25% • Inspire a competitive energy future Adriana Machado CEO, GE
Landﬁll Gas…an opportunity for Clean Energy Adriana Machado CEO, GE
Clean Energy Power Generation from Biogas with Jenbacher gas engines Belo Horizonte, Brasil Power generation with landfill gas Asja Brazil Reduction of CO2 emission 4Mton in 10 years and generating 450,000 CERs per year. Technology: Jenbacher engines of 1.4MW Electricity generation of 5.5 MW (+5000 residences) Design and operation of the Consortium Horizonte Asja Commissioning in 2011 Adriana Machado CEO, GE
CORE Linda MurasawaBUSINESS Sustainability Superintendent, Santander Our Approach: SANTANDER IN Sustainability 3+1 BRAZIL 19.3 million CURRENT ACCOUNTS Results for Business and For All Social and Financial Inclusion 3,775 BRANCHES and Education MINI-BRANCHES Social and Environmental 54,602 Business Management. EMPLOYEES
CORE Linda MurasawaBUSINESS Sustainability Superintendent, Santander SANTADER BANCARIZATION MICROCREDIT We startedThe Largest Private the first branch in one of the largestMicrocredit Bank in Brazil poor communities in Rio de JaneiroMore than 800,000 people COMPLEXO DO ALEMÃO attended since 2002 Branch and Microcredit :Operating in more than 600 offering the whole financing communities product portfolioBRL 1,2 billion total granted* Employees were recruited from * December 2011 inside the community.
CORE Linda MurasawaBUSINESS Sustainability Superintendent, SantanderClean DevelopmentMechanismPortfolio of 2 million tones of CO2 equivalent through Certiﬁcates of Emission Reduction (CER) and Emission Reduction Units (ERU)*19 new projects: landfill waste, energy recovery from methane captured from coal mines and wind power in China, Thailand and Brazil.
CORE Linda Murasawa BUSINESS Sustainability Superintendent, Santander FINANCING FOR SUSTAINABILITY IFC: for renewable energy, energy efficiency and cleaner production projects. Specific products for accessibility,2011: disbursement of a further energy efficiency and wasteBRL 1,3 billion* management.on projects of sustainability Carbon Tradingfor Global Clients* Corresponds to the total financing of sustainability in Wholesale in 2011
CORE Linda MurasawaBUSINESS Sustainability Superintendent, Santander Mantiq Asset & Capital Investments StructuringInvestment focused on Over US$ 1.2 billion assetsrenewable energy, energy under management *efficiency and carbon credit Independent private equity investment fund manager Line for purchase and monetization of carbon credits: € 50 MM Investment in 10 wind farms Investment portfolio counts with ten assets in the renewable energy, sewage and Monetization of ERPAs (contracts to purchase environmental services sectors. carbon credits). * June 2012
CORE Linda MurasawaBUSINESS Sustainability Superintendent, Santander Investments oriented by social and environmental criteriaEthical Fund ESG criteria in private bonds Influence over the resource allocation in primaryStock market fund composed by companies debentures emissionswith high standard social and environmentalindicators and corporate governance. – Goal is to award most responsible companies – Premise is there is a risk reduction for observing 534,46% ESG issues Ethical 347,80% Fund* Methodology adopted is the same used for equity IBVSP * analysis – Fixed income ESG analysis is applied to all funds cially The First So that can buy debentures, and is not exclusive for Responsible Investment Fund SRI mandates. erica* From november 2001 to december 2011 in Latin Am
COREBUSINESS SantanderPrivate Equity for Entrepreneur ProgramSustainability Lack of “capital” and “expertise” in managing IPO of Renova Energia S/A, BRL 58.6 Businesses are among the main citted causes for the closures Businesses million. Offer to the entrepreneur ﬁnancial products and Acquisition of part of Greenvana, the services, associated technical guidance and largest internet company for management by specialized institutions. consumption of sustainable products in Brazil. Phase1 Phase2 Focused on companies of renewable Communication Consulting Credit Capacitation energy (wind, co-generation and solar, for example).
Integrating RenewableEnergySergio PaccaAssociate Professor, University of São Paulo www.greenbiz.com/verge12
Sergio Pacca Associate Professor, University of São PauloEnergy ﬂows based on 1 metric ton of sugarcane" Source: Pacca & Moreira 2011"
Sergio Pacca Associate Professor, University of São PauloAlternative! Diesel! Gasoline " Fuel! Engine! Engine! Source: Adapted from Toyota 2004"
Sergio Pacca Associate Professor, University of São PauloCars powered based on 1 ha of sugarcane – US annual mileage " For 2008" - 56 Mha to power all globe cars today" - 36 Mha to power all globe trucks and buses" - 92 Mha to power all globe road vehicles" For 2030, assuming 2 times bigger ﬂeet but 33% more efﬁcient" - 123 Mha to power all globe road vehicles in use by 2030" Comparatively:" - Present wheat planted area of 250 Mha" - Land availability of 600 Mha by 2050 (IIASA-FAO, 2002)" Source: Pacca & Moreira 2011"
Sergio Pacca Associate Professor, University of São PauloBiomass with carbon capture and storage " Koornneef 2011, IEAGHG, 2011"
Sergio Pacca Associate Professor, University of São Paulo Hydro and wind, complimentary sources " 2007" 2008" 2009" 2010" 2011" 400!Windpower average MW! 300! 200! 100! 0! Jan " Feb Mar Apr "May " Jun " Jul Aug Sep " Oct" Nov Dec "" Source: Simas 2012"
Advancing Public-PrivatePartnershipsCarlos RittlClimate Change & Energy Program Coordinator, WWF www.greenbiz.com/verge12
Where Brazil stands in terms ofglobal clean technology innovation? 25° Carlos Rittl Climate Change & Energy Program Coordinator, WWF
Brazil cleantech innovation Strengths and weaknessesStrengths Weaknesses. Strong entrepreneurial culture . Falls behind on emerging cleantech innovation. Respectable for commercializedcleantech innovation (primarily due . Low VC investment and few newbiofuels industry) environmental patents. Average innovation drivers and . Lacks general innovation inputs, publiccommercialized cleantech innovation R&D spending, and cleantech-focusedscores investors Carlos Rittl Climate Change & Energy Program Coordinator, WWF
Carlos Rittl Climate Change & Energy Program Coordinator, WWFDrivers of innovation in energy sector Source: Adapted from IEA, Energy Technology Perspectives, 2008
Brazilian energy matrix Energy and electricity Renewables by source Energy • Brazil – 45.4% • World – 12.9% Electricity • Brazil – 87.2% • World – 18.7%Sources: Brazilian Energy Research Company - EPE [BEN 2011] and IEA - Key World Energy Statistics – 2010 Carlos Rittl Climate Change & Energy Program Coordinator, WWF
Brazil - investments in energy – 2011-2020Total investment: US$ 500 billion • Oil and gas: US$ 337 billion (67%) • Biofuels: US$ 48 billion (10%) • Electricity: US$ 116 billion (23%) • Power generation: US$ 93 billion • Hydro: US$ 47 billion • Small hydro, biomass, wind: US$ 34 billion • Fossils: US$ 12 billion • Power transmission: US$ 23 billion (19%) Carlos Rittl Climate Change & Energy Program Coordinator, WWF
Some overarching challenges• Energy sector – highly controlled by Federal government • Planning, regulation, investments (generation, transmission, distribution), ﬁnance (subsidies, incentives), pricing• Lack of sinergy/coordination among different policies • Development plans, economic crisis recovery measures, climate policies, science, technology and innovation policies• Sustainability, low carbon, cleantech – not mainstreamed in decision making processes Carlos Rittl Climate Change & Energy Program Coordinator, WWF
How to change the scenario• Move from renewable energy speech to sustainable energy debate • Dialogue among academia, research institutions, business associations, ﬁnance institutions, NGOs, social movements – and Governments • Alternative scenarios – a real long term sustainable energy security road map • Strong recommendations for public policies and decision making processes – mainstreaming sustainable energy + cleantech from energy expansion planning to implementation Carlos Rittl Climate Change & Energy Program Coordinator, WWF
Energy Management& Smart GridsGustavo PimentaVP, AES www.greenbiz.com/verge12
AES Gustavo Pimenta VP, AES One of the largest global power companies Present in 27 countries in the five continents 14 power utilities 104 generation plants (41 thousand MW)IN THE WORLD 28 thousand employees
AES Gustavo Pimenta VP, AES 7.5 million customers IN BRAZIL (22 million clients) Market Share in Brazil: 14,3% (distribution) Installed capacity: 3.298 MW Market Share in Brazil: 2,3% (generation) 7.700 employees Ebitda: R$ 4,9 billion Net income: R$ 3,0 billionGenerationDistribution Investments: R$ 9,4 billionServices (1998-2011)
Smart Grid goes well beyond Smart Meters • Grid applications – quality of services • Home area network • Renewable/ distributed generation • Electric vehicles, public lighting • Smart meterGustavo Pimenta VP, AES
Smart Grid Extensive beneﬁts to a sustainable society Economic Environmental Social▪ Reduce technical losses ▪ Reduced need for additional generation ▪ Access to cheaper energy▪ Savings from energy efﬁciency and reserve ▪ Improved reliability▪ Resources optimization at Discos ▪ Reduced need for additional ▪ Improved quality of service▪ Residential consumer energy selling through transmission ▪ Possibility to have its own distributed generation ▪ Direct reduction of CO2 footprint – residential generation plant load (~10%) and losses (5-10%) ▪ Knowledge and control of its ▪ Indirect reduction of CO2 footprint – consumption through distributed generation Gustavo Pimenta VP, AES
Some deﬁnitions are still needed to guarantee successful implementation Current framework Needs Regulatory framework still open Align proposals from utilities to define regulation Technology standards to be Partnership among different defined sectors (e.g. Utilities, Technology provider,Gustavo Pimenta VP, AES Government, Banks…)