Energy efficiency. A solution

— Energy efficiency.  A solution. Pressures to reduce energy consumption and lower carbon  dioxide emissions come from everywhere. The simplest way to  address this challenge is to seize the opportunities for energy  reduction that come from  using energy more efficiently. Using ABB’s variable speed drives to intelligently control  motors increases energy efficiency. This has enormous positive  financial, operational and environmental implications. — The world’s demand for energy will not go away Globally,  demand for electricity will grow faster than for any other form of final energy.  Thus, emissions will keep rising, unless we  start doing something different. — World energy demand  (in million tonnes of oil equivalent, Mtoe) — World electricity consumption (Rise in electricity demand by 2035) by 2035 by 2035 +90% 2035 +47% +46% 0 5 10 15 20 12.730 15.332 18.676 2010 2020 2035 10 0 20 30 40 50 30,2 36,3 44,1 2010 2020 2035 15 10 5 0 20 25 30 35 18.443 34.889 2010 2035 — Energy-related CO 2  emissions (in gigatonnes) — The real numbers behind the challenge Industries consume about  40% of all electricity   and about  40% of all electricity is produced by coal. Industry 40% Coal  41%  Residential  28%  Services  24%  Other  6%  Transport  2%  Gas  22%  Nuclear  13%   Other  6%  Oil  5%  Other  3%     (wind, solar, bic) — Motors consume about  28%   of the world’s electricity. — An intelligent motor control method can help   in solving the energy challenges we all face Variable speed drives regulate  the speed of a motor and  can  reduce energy consumption by  as much as 30% to 50% in many  applications and in extreme cases  by as much as by  90%. Power is   proportional to speed 3 Speed % Power % 12,5 25 25 50 75 100 50 75 100 — Let’s look at the pumps Pumps are one of the most common  motor applications and offer the biggest potential for saving energy. + + Pumps annually consume approximately  10% or 1,850 TWh of the world’s electricity.  If all pumps were controlled by variable  speed drives – with an average saving  potential of about 40%, total savings   could be as vast as  740 billion kWh. — It pays back The payback time for using variable  speed drives  is very short, and the  return on investment can come  within  months. According to life cycle approach, the  purchase price of a motor and a drive  is just a few percent compared to the  energy spent to run the equipment  over its entire lifetime. Energy saved with ABB’s   variable speed drives •  The installed base of ABB drives  saved about 510 TWh in 2016,  equivalent to the consumption  per year of more than 125  million households in EU. •  If 510 TWh would have been  generated by fossil fuel  powered electricity plants, ABB  drives reduced CO 2  emissions in  2016 by about 410 million tons,  corresponding to the yearly  emission of more than 100  million cars. Sources: US Department of Energy www.sandia.gov/~jytsao/Solar%20FAQs.pdf International Energy Agency (IEA) World energy outlook 2012 Bloomberg New Energy Finance www.about.bnef.com/bnef-news/clean-energy-investment-fell-11-as-governments-cut-subsidies/ European PV Industry Association (EPIA) www.epia.org International Energy Agency (IEA) Medium-term renewable energy market report 2012: trends and projections to 2017 OECD Factbook 2013 www.oecd-ilibrary.org/economics/oecd-factbook-2013_factbook-2013-en C. Breyer and A. Gerlach. “Global overview on grid parity”. Published in Progress in Photovoltaics:  Research and applications, Feb. 2012 Energy 92% Purchase and   installation 5% CO 2  emissions reduced  410  million  tons   in one year Maintenance  3% An  average coal-fired power plant with a 500 MW power output generates  4.2 TWh  of electricity. The saving achieved by controlling pumps intelligently with variable speed drives would replace  176 coal-fired plants. The CO 2  emission savings would amount to  592 million tons. Emission factor 0.8 kg/kWh. — Think about this: 176 CO 2 — No reason to wait During 40 years, when ABB has delivered  millions of drives to all industries, a huge  amount of energy has been saved. The  installed base of  ABB drives saved  510  million MWh in 2016 alone. However, less than  10% of world’s motors are   equipped with variable speed drives. We have   great saving potential. Improving energy efficiency worldwide is  the   fastest, the most sustainable and the  cheapest way to reduce energy consumption  and lower carbon dioxide emissions. Please visit us at abb.com/drives Savings   510   million  MWh  in one year © Copyright 2017 ABB. 3AUA0000182864 REV B 24.5.2017 1992 95 05 2010 15 2000 0 50 100 150 200 250 300 350 400 450 500 550 TWh TWh/year