Philippe Reveilhac: Schneider Electric - Creating Social Business Opportunities & Energy Access

7/27/2019 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

Social Business Summit 2013 GK Enchanted Farm - Bulacan, Philippines


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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


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


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


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

9

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

10

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

12

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


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


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


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

18



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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


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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http://www.schneider-electric.com/bipbop

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Thank you!


Philippe Reveilhac: Schneider Electric - Creating Social Business Opportunities & Energy Access

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