Making permanent savings through Active ... - Schneider Electric

Making permanent savings through Active Energy Efficiency
The Current Situation
Energy is consumed in a broad variety of ways
across all sectors of life, from the provision of
vital resources such as water, oil, and gas, to
the lighting and heating in homes and the power
required by industry and commerce. Much of that
energy is consumed usefully, but huge amounts
are wasted every day. It is the waste or ineffi cient
use of energy that must be addressed.
This white paper explores every aspect of the use
of electricity and its impact on the environment.
With greenhouse gas emissions in sharp focus
around the world, the time has come for everyone
to take action to economize on energy use by the
intelligent application of technology to bring about
Active Energy Effi ciency.
At a European level, the Energy Performance in
Buildings Directive (EPBD) has been recasted.
This requires all buildings — including in the
residential sector — to have energy ratings, similar
to those seen on consumer white goods today,
and to display these ratings in the building’s public
areas or, in the case of residential buildings, within
the documentation about the property. Some EU
governments have stated that they expect an
average 25% reduction in energy consumption
from the introduction of this bill.
As far-reaching as the legislation is, perhaps the
biggest impact on businesses is the steep rise in
the cost of energy. This poses a big problem for
businesses as their profi t margins are squeezed
and they are faced with the dilemma of whether
to take the cut on their bottom line or to pass
the cost increase through to the prices of their
products and services, and therefore risk
being uncompetitive.
World Trade Index (WIT) implied volatility evolution
40.0%
37.5%
35.0%
32.5%
30.0%
27.5%
Sources : US. EIA. CME Group
Trade dates
Dec-10 Contract month
%
15-Jan 10-Feb 8-Mar 3-Apr 29-Apr 25-May 20-Jun 16-Jul 11-Aug 6-Sep 2-Oct 28-Oct
Additional price impact of the cost increase to the electricity
producer in selected OECD+ countries resulting from the CO 2
price in the 450 Scenario.
Dollars per MWh
120
100
80
60
40
20
CO 2
price impact
on fuel consumed
Subcritical
coal plant
Supercritical
coal plant
More advanced
coal plant
Gas CCGT
plant
0
-20
-40
Year:
CO 2
price:
2015
$20
2020
$45
2025
$75
2030
$105
2035
$120
Reduced
fuel price
Net CO 2
price
impact
Source = IEA - World Energy Outlook 2010
White paper on Energy Efficiency - 7