Andreas Schierenbeck, President, Building Technologies, Siemens Inc.


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Andreas Schierenbeck, President, Building Technologies, Siemens Inc.

  1. 1. Solutions for Smart Consumption Andreas Schierenbeck President, Building Technologies © Siemens AG 2010. All rights reserved.
  2. 2. Megatrends The world's toughest questions 1% 5% It’s getting warmer Highest CO 2 concentration in the last 350,000 years We’re living longer Average life expectancy increased from ~35 years to ~65 years within one century There are more people in cities In 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 Climate change Demographic change Urbanization Globalization
  3. 3. 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
  4. 4. Different cities have different challenges Developed cities Megacities Planned future cities Moderate transition Dramatic growth Forward looking
  5. 5. What we know about buildings Life cycle costs 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 Industry 31% Buildings 41% 40% of world wide generated energy and 21% of CO2 Transport 28% (direct emissions from primary energy usage) (indirect emissions through power usage) 22 11 13 8 14 18 14 Forestry 14 Agriculture / wast 18 Transport 14 Industry (direct emissions from primary energy usage) Industry (indirect emissions through power usage) Buildings
  6. 6. Buildings consume the most energy, and generate the most CO 2 emission in developed cities Example: Los Angeles Mix of CO 2 emissions (Total 47 Mt 2005) The distribution of CO 2 emission in other developed cities varies (Population size, industrial activities and weather conditions Industry 7 % Transport 26 % Buildings 67 %
  7. 7. Zero net energy buildings … Holistic approach can also save significant energy <ul><ul><li>Energy consumption (heating, cooling, ventilation, hot water …) </li></ul></ul><ul><ul><li>On-site energy generation (solar, wind, geo-thermal …) </li></ul></ul><ul><ul><li>Storage (building hull, water tanks) </li></ul></ul><ul><ul><li>Efficiency in the building (demand control, lighting, air-quality) </li></ul></ul>Zero net energy buildings are coming: CA 2020-2030 / E U 2018
  8. 8. 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 Hospital 26% Hotel 41% Residential 27% Restaurant 41% School 26% Office 52% Shopping 49%
  9. 9. 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 US Total GER RoW Public sector 43 % Healthcare 22 % Offices 12 % Industries 7 % Hotels 4 % Retail 4 % Other 9 %
  10. 10. Smart building: Dell Children’s Medical Center, Austin, Texas <ul><ul><li>World’s first LEED Platinum healthcare facility </li></ul></ul><ul><ul><li>80% of interior daylit </li></ul></ul><ul><ul><li>Efficiency measures save enough energy to power about 1,800 homes </li></ul></ul><ul><ul><li>APOGEE integration of all major systems </li></ul></ul>
  11. 11. Smart building: Duke Energy Center, Charlotte, North Carolina <ul><ul><li>LEED Platinum core and shell </li></ul></ul><ul><ul><li>Uses 22% less energy than comparable structure </li></ul></ul><ul><ul><li>Daylight harvesting </li></ul></ul><ul><ul><li>Groundwater/rainwater harvesting </li></ul></ul><ul><ul><li>Sophisticated sensing; daylight occupancy, lighting, etc. </li></ul></ul><ul><ul><li>Siemens “Smartest Building in America” contest winner </li></ul></ul>
  12. 12. Energy Efficiency in buildings is also profitable Value of efficient buildings <ul><li>Green Buildings are 0-5% more expensive </li></ul><ul><li>Approx. 500 buildings analyzed in USA with Energy Star or LEED certification </li></ul><ul><li>Compared with 10,000 buildings with similar location and quality standard </li></ul>Financial benefits <ul><li>Overall, 6% higher rental rates </li></ul><ul><li>16% higher selling price </li></ul>Source: Eichentholtz, Kok, Quingley: “Doing Well by Doing Good? Green Office Buildings” (2009), University of Maastricht, University of Berkley
  13. 13. Monitoring buildings from inception to renewal No BACS BACS without Energy Monitoring BACS with Energy Monitoring 100% 90% 80% 70% 60% Time Energy consumption BACS with additional Energy efficiency measures Energy consumption in buildings Siemens Strategic Energy Management <ul><li>Monitoring and controlling building energy systems </li></ul><ul><li>Expert analysis from building data </li></ul><ul><li>Recommendations for optimization strategies </li></ul><ul><li>Implementation of efficiency measures </li></ul><ul><li>Holistic approach for smart energy consumption, storage and generation </li></ul>Building Automation + Energy Management = Maximize Efficiency!
  14. 14. We maximize the efficiency for our own buildings! Siemens Industry facility, Plymouth, Mich. We also “Walk the Talk” <ul><ul><li>LEED CI certified 2010 </li></ul></ul><ul><ul><li>Energy consumption reduced 25 % </li></ul></ul><ul><ul><li>Solid waste reduced 25 % </li></ul></ul>Mobility Factory, Sacramento <ul><li>1- MW solar PV, offsets power 50% </li></ul><ul><li>Offsets 700 tons Co2 annually </li></ul><ul><li>5,200 solar PV panels installed by BT </li></ul>
  15. 15. Energy Management has been in our DNA … for decades <ul><li>We have modernized more than 8,000 buildings … </li></ul><ul><li>Saved more than $2 billion for our customers </li></ul><ul><li>And 1 million tons Co2 annually </li></ul><ul><li>24/7 Continuous monitoring and reporting </li></ul><ul><li>Expert data analysis and benchmarking </li></ul><ul><li>Energy efficiency measures with maximum results </li></ul>“ Newly launched Web-optimized energy management platform now protecting over 50,000 buildings worldwide … and growing”
  16. 16. Smart Buildings Interact with the grid and earns you money <ul><ul><li>Fill storage / Load E-car </li></ul></ul><ul><ul><li>Load thermal elements (boiler, ice) </li></ul></ul><ul><ul><li>Turn-off CHP </li></ul></ul><ul><li>All consumers normal operation and build reserves within comfort band </li></ul><ul><ul><li>Energy storage </li></ul></ul><ul><ul><li>Use reserves E-car </li></ul></ul><ul><ul><li>Empty thermal storage (boiler, ice) </li></ul></ul><ul><li>All consumers to minimum level in comfort band </li></ul>Building is energy consumer to power grid Low energy tariffs High energy tariffs Building may even deliver energy to 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 Building Management System Energy consumer Energy storage Combined Heat and Power Grid Grid
  17. 17. Demand Response allows utilities to significantly reduce costs <ul><ul><li>Building operators are incentivized to shed loads </li></ul></ul><ul><ul><li>Few occasions p.a., usually on hottest days </li></ul></ul><ul><ul><li>Primitive technical solutions with manual interaction and notification </li></ul></ul><ul><ul><li>Unreliable user behavior leads to need of high over-subscription </li></ul></ul><ul><ul><li>Load shedding usually results in comfort loss </li></ul></ul><ul><ul><li>Today 6% of US peak load are under contract </li></ul></ul>Demand Response Offerings Exploding peak prices USA: 5% peak reduction would save the 3bn USD each year: Price of electricity supply Supply Quantity of electricity Q DR Q P P DR Price reduction Peak demand reduction
  18. 18. The Next Generation of Demand Response has to deal with volatile renewable energies <ul><ul><li>From few events per year to daily interactions </li></ul></ul><ul><ul><li>From primitive load shedding to long-term load shifting and co-generation </li></ul></ul><ul><ul><li>From incentive based Demand Response Programs to Real-Time Pricing </li></ul></ul><ul><ul><li>From manual interaction to fully automated interactions </li></ul></ul><ul><ul><li> Financial Benefit for Building Operator will increase dramatically </li></ul></ul>Changes in Grid Interaction Volatile Renewable Energy Example of Denmark shows that wind-energy already exceeds demand! (January 2008, selected part of Denmark)
  19. 19. Shifting energy load is possible <ul><li>Population projection: 50,000 </li></ul><ul><li>Energy requirement day-time: 160 MW </li></ul><ul><li>Energy requirement night-time : 70 MW </li></ul><ul><li>Loads open to shifting: </li></ul><ul><li>Chillers (District cooling): 50 MW </li></ul><ul><li>Water pumps: 10 MW </li></ul><ul><li>Buildings: 15 MW </li></ul><ul><li>Lighting : < 1 MW </li></ul><ul><li>Population 290,000 </li></ul><ul><li>Energy requirement per day: 180 MW </li></ul><ul><li>Peak usage: 257 MW </li></ul><ul><li>Loads open to shifting: </li></ul><ul><li>Industrial operation: 20 MW </li></ul><ul><li>Water pumps: 5 MW </li></ul><ul><li>Buildings: 20 MW </li></ul><ul><li>Lighting: < 1 MW </li></ul><ul><li>Apartments with electrical heating: 70 MW </li></ul>Masdar City, Abu Dhabi Karlsruhe, Germany Shiftable load: 25 – 45% Shiftable load: 33%
  20. 20. Smart Grid - Smart Consumption - Smart Buildings? <ul><ul><li>Energy storage </li></ul></ul><ul><ul><li>Pricing </li></ul></ul><ul><ul><li>CO 2 reduction </li></ul></ul><ul><ul><li>Energy efficiency </li></ul></ul><ul><ul><li>E-car integration </li></ul></ul>Optimizing <ul><ul><li>Avoid investments in new power plants </li></ul></ul><ul><ul><li>Increase power quality </li></ul></ul><ul><ul><li>Integrate volatile renewable energy </li></ul></ul><ul><ul><li>E-Car charging </li></ul></ul>Balancing the grid Consumption follows Generation: There is no Smart Grid without Smart Buildings Smart Consumption Demand Response Price of electricity supply Supply Quantity Q DR Q P P DR Price reduction Peak demand reduction Demand Consumption to grid Supply 24h 0h
  21. 21. >80% of installed base in Germany Energy efficiency is insufficient History of energy saving policy in Germany <ul><ul><li>Regulation sets energy efficiency standards </li></ul></ul><ul><ul><li>Implementation is even better </li></ul></ul><ul><ul><li>But far away from possibilities </li></ul></ul><ul><ul><ul><li>New buildings are energy efficient, but… </li></ul></ul></ul><ul><ul><ul><li>80% of installed base is far off.. </li></ul></ul></ul><ul><ul><ul><li>Survey beyond 400 companies  56% will invest in energy efficiency in the years to come </li></ul></ul></ul>Regulation vs. Reality Drives regulations - change?
  22. 22. 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 have solutions now Motivation
  23. 23. Solutions for Smart Consumption © Siemens AG 2010. All rights reserved. No excuses!