Download - Philippe Reveilhac: Schneider Electric - Creating Social Business Opportunities & Energy Access
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Creating Social BusinessOpportunities & Energy AccessChanging lives through access to energy
Philippe ReveilhacPresident
Schneider Electric Philippines
Social Business SummitOctober 2-5, 2013Gawad Kalinga Enchanted Farm
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billion sales in 2012
of sales in new economies
Schneider Electric the global specialist
in energy managementBalanced geographies FY 2012 sales
NorthAmerica
25%Asia
Pacific27%Rest of
Western
Europe30%
Schneider Electric 2- Sustainable Development - March 2012
people in 100+ countries
of sales devoted to R&D Residential 9%
Utilities & Infrastructure 25%
Industrial & machines 22%
Data centres 15%
Non-residential buildings 29%
Diversified end markets FY 2012 sales
18%
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1999Groupe Schneiderbecomes
Schneider Electric,focused on Power & Control
1996Modicon, historic leader in
Automation, becomes a
2007Acquisition of
APC corp. and Pelco
More than 175 years of history
2008Acquisition of
Xantrex
Power &
Control
2011Acquisition of Telvent
2010Acquisition of Arevas distribution
activity
EnergyManagement
Schneider Electric 3- Sustainable Development - March 2012
1975Merlin Gerin joinsGroupe Schneider
1988Telemecanique joins
Groupe Schneider
1991Square D joins
Groupe Schneider
1836Creation of Schneiderat Le Creusot, France
19th century 20th century 21st century
2000Acquisition of
MGE UPS Systems
2003Acquisition of
T.A.C
2005Acquisition ofPower Measurement Inc.
2003-2008Targeted acquisitions in wiring devices
and home automation(Lexel, Clipsal, Merten, Ova, GET, etc.)
SteelIndustry
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Energy production& transmission
EnergyUsage
Wind energy
Solar energy
Appliances
Climate control
EnergyManagement
We provide Energy Management Solutions
Making energySafe
Reliable
Schneider Electric 4- Sustainable Development - March 2012
Hydro
Biofuels
Hydrocarbons
Nuclear
Security
Lighting
Machines
IT servers
with 30-70% savings everywhere
EfficientProductiveGreen
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LUZON
Schneider Electric Philippines
1995 started as rep office, more than 15 years presence inthe Philippines
1996 APC Manufacturing was openedMore than 2,000 employees in the Philippines
1 Main Office in Taguig, including
Schneider Electric 5- Sustainable Development - March 2012 Branch OfficeMain office and HQ
VISAYAS
MINDANAO
Project Execution Center
3 Branch Offices in Cebu, Davao & Cagayan De Oro4 Cavite Manufacturing Plants (APC)
Key Services Presence - Admin Office, GlobalService Delivery Center, Global Customer Care Center , FinanceShared Services & HR Shared Services (All within Cavite)
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In the Philippines
6
By 2020:
125 million inhabitants
60% will live in cities
an additional (approx) 2million people in the energymiddle class
Today (based on 2010 stats)
94M million inhabitants
40% lives in cities
Approx 20% have no accessto a decent energy infrastructure
Source: UN Population Fund Report 2010& World Bank Country Access to Energy 2010
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In Philippines...
16 million or 17% of populationwithout modern energy services
Schneider Electric 7- Sustainable Development - March 2012
Source: World Energy Outlook 2010
47million or 50% of populationUse traditional cooking (coal)
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Philippines contribution on Climate Change
8Schneider Electric SE in China_2012
Source: http://www.senate.gov.ph/publications/AAG%202013-03%20GHG%20emission.pdf
vs
Energy demandBy 2050
Electricity by 2030
CO2 emissions to avoiddramatic climate changes by
2050
The facts The need
Source: IEA 2007
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Metro Manila City of Cities
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50 million inhabitants* approximately 10million more thanlive in Tokyo (the worlds largest urbanarea today)
80% will live in citiesThe urban population density sits atapproximately 38,000 people persquare mile (14,500 per squarekilometer).
Almost 11.5 million inhabitants* 11th most populous in the world!
Approx 12% of the entire
population lives in Metro Manilawith only 639 sq km area
Approx 60% have access to adecent energy infrastructure
Source: National Statistics Office 2010 & United Nations World population
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35% of Metro Manilas
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population are
informal settlers!
Source: Asian Development Bank 2010 report
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and are heavily impacted by lack of
access to electricity
The lack of electricity
endangers peoples health puts a strong brake on development
increases environmental damages
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Slum inhabitants connect to the grid in poor conditions becauseof their situation
Access to electricity is intrinsically hard, they pay more and they geta
poorer serviceRemote villages must be focused to develop the people, the agriculture
and to reduce slump growth.
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BoP hierarchy of needsElectricity is the 1st way to effectively fulfill the energy needs after cooking
Electric iron,Mixer, Grinder
Refrigerator,
WashingM/C
tricity
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Cooking
Home lighting
Fan + Television
ec r c pump
Ele
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Why pay 100x more for 100x less
energy?
150
15
rvice
/kWh
Dry batteries
Candles
Petrol /gas lamps
Traditional systems(consommables)
Systems to beimplemented(micro elec) (mini elec) ( peri elec)
Conventional systems(interconnected network)
Rural : villages
Scattered housing
Dense and
motorized centers
Peri-
urban ,urban
13
1,5
0,15
0,015
Costs
ofthefinals
Watt kWatt MWatt Installed power
Isolated genset
+ micro grid
Photobatteries
batteries
Interconnected
power plants and
paid off grid
Source: AFD
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Why is urban living attractive to ruraldwellers?
Education Training is limited
Infra tru tur D v l m nt Ener
Schneider Electric 14- Sustainable Development - March 2012
access is limited in rural
Income opportunities Farming ismostly the only source in rural areas
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So how do we
eradicate energyovert while makin
social businessopportunities?
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Facing the two main energy stakes ...Schneider Electric commits
Doing more while usingless: Reduce energy consumption Reduce business activitiesenvironmental impact
Energy management
Safe, reliable, efficient, productiveand clean energyEnergy efficiencyFully integrated solutions
Schneider Electric 16- Sustainable Development - March 2012
Develop energy access for
people who need it the most, tocontribute to a sustainabledevelopment
Access to energyAccess to energy for people who are deprived ofit
Training young disfavoured peoplein electrical trade jobsSupport entrepreneurial activitiesat the base of the pyramid
P
IBBOP
P
IBBOP
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Schneider Electrics commitment to spreadreliable, affordable and clean energy
BusinessManage a socially driveninvestment fund tofinancially supportcompanies dedicated tothe electrical business at
InnovationBuild adequateoffers/solutions andbusiness models to be achampion in the access toenergy field for the Base
IBBOP
IBBOP
Schneider Electric 17- Sustainable Development - March 2012
the Base of the Pyramid
PeopleTrain young people from the Base of thePyramid in energy management relatedskills and sponsor them
of the Pyramid
PPBase of the PyramidExpression commonly used todefine the populations with thelowest income in a country
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Providing offers, investments and trainings
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Discover projects on the BipBop map
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schneider-electric.com/bipbopmap
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Conclusion:
our strengths & value proposition
Innovation based on the very poor peoples needs study Using the most relevant energy sources (solar, biomass, grid, etc.)
Development of ready-to-use solutions (business and funding models,training, after-sales support, etc.)
Innovation
Best value for money in the In-Diya solar home lighting system market
Schneider Electric 20- Sustainable Development - March 2012
SchneiderElectric support
BipBopprogrammeuniqueness
Products sold under the Schneider Electric brand No lower quality to sell to the poor
Strong ambition, involves the company: contribute to access toenergy for people at the Base of the Pyramid worldwide
Focus on the sustainable and replicable solutions Environmental, social, economic responsibility 3 axes: business innovation people
Worldwide presence, local teams support One of the world leaders for energy management products: variable
speed drive, inverter, circuit breaker, etc. Financial security: access to energy does not make the company
revenues or margin
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Schneider Electric 21- Sustainable Development - March 2012
http://www.schneider-electric.com/bipbop
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Thank you!
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