COP21

Internet of Things, a key enabler to reduce CO2 emissions December 1st , 2015

Victor M. Pérez

Internet of Things, a key lever to reduce CO2 emissions

Exponential technologies combined with Internet global model drive a new industrial revolution: the Internet of Thing Internet of things drivers Exponential technologies #of sensors +33% yoy # sensors

Internet of Things

Bandwidth cost -25% yoy €/Mbs

+3Bn individuals connected in 2014

Computingcost -33% yoy

• Peering & net neutrality

€/transistor

Storage cost -38% yoy €/GB

50bn objects connected to the web in 2020 : Magna Data

• Infrastructure mutualization • Interoperability

• Platforms

Internet global model Source: HIS, KBPC, Internet world stats, A.T. Kearney

A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

On the demand side, IoT combined with Big Data offers 4 key levers for asset optimization and energy consumption reduction Levers of energy demand reduction with IoT Driver

Example

• At full system level, objects interact, communicate and adapt autonomously how they operate to optimize their energy consumption

• Ex: Autonomous control system of vehicles and road traffic in a city centre

• Big Data algorithms analyse current and historical data regarding the use of objects and optimize in real time how they operate

• Ex: Real time optimization of aircraft engines based on data collected by thousands of sensors

• Sensors continually collect data on objects energy consumption to provide a rigorous analysis • Remote control of objects based on elementary rules to prevent energy waste

• Ex: Connected thermostat allowing heating remote control

• Connected objects provide transparency over existing assets availability to maximize their use

• Ex: Car sharing platform to pool car rides

4 Full system automation

3 Real time objects energy consumption optimization

2 Objects energy consumption Monitoring and Control

1 Asset transparency

Source: A.T. Kearney

A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

Under current conditions, IoT could lead to a +200 Mt decrease in CO2 emission, being ~23% of the 2030 objective CO2 emissions objective and IoT impact (in Mt of CO2, EU28)

COP 21 Objective1 2015-2030

Assuming no other change in energy mix or consumption pattern

IoT2 Opportunities 2015-2025

-210

-900 23%

1 Cop

21 objective for EU28 members : a 40% decrease in CO2 emissions compared with 1990 emissions (4 170Mt). 900Mt represents the current effort, i.e. the difference between current CO 2 emissions (3400Mt) and 60% of 1990 CO2 emissions (2500 Mt). Sources: Ministère de l'écologie, du développement durable et de l'énergie, A.T. Kearney

2 Internet

of Things A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

Mobility and Housing should be the main contributors to CO2 emission reductions IoT impact on CO2 emissions by economic sector (2025 Vs. 2015) (in Mt of CO2, EU28) 3,2

32,8 45,6

~210 Mt of CO2

57,8

69,7

Mobility

Housing

Industry & Services1

Smartgrids

Public Administration

Note: Assuming no other change in energy mix or consumption pattern 1Savings on transportation cost in supply chain and decrease in energy consumption for lodging, retail and telecom companies (data center) Sources; Eurostats, A.T. Kearney

Total

A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

In particular, Car sharing, Automotive telematics and Smart Home are the 3 use cases with higher opportunity Energy savings related to IoT, by sector (in Mt of CO2, EU28) Use Case

Main drivers of energy savings

• Car sharing • Automotive telematics • Traffic jam reduction • Aircraft telematics

• Real time localisation allowing journey pooling • Data collection and analysis for an optimal drive and fuel savings

38,0 25,2

• Vehicles coordination and rerouting itinerary to smooth traffic,

3,4

• Data collection and analysis for an optimal jet fuel consumption Subtotal total Mobility

3,0 69,7

Housing

• Smart Home

• Data collection and analysis for an optimal energy consumption (heating and lighting)

57,8

Industry and Services

• Energy consumption optimisation • Smart logistics

• • • •

34,5

Mobility

Mt CO2

Telecoms : data centres etc. Retail : Heating and cooling systems etc. Lodging and catering : heating and cooling systems etc. Logistics: connected truck fleet to optimize journeys and fuel consumption Subtotal Industry and Services

11,1 45,6

Smart grids

• Smart electric grid • Smart gas

• Smart grids optimizing output, distribution and consumption of electricity • Smart grids optimizing output, distribution and consumption of gas Subtotal Utilities

Public Administration

• Street light control

• An optimised lighting system, reducing unnecessary street lighting

3,2 Total

Note: Assuming no other change in energy mix or consumption pattern Source: A.T. Kearney

21,6 11,2 32,8

~210

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Internet of Things, a key lever to reduce CO2 emissions

The Mobility sector is the most attractive one with an emission reduction potential of ~70 Mt of CO2 through 4 levers Energy savings related to IoT (in Mt of CO2, EU28)

Mobility

Use case

Objet

Scope

2025 potential benefit

Mt CO2

Care sharing

• Vehicle equipped with GPS

• 0,72 vehicle per household, generating 475,5Mt of CO2 annually, linked to fuel consumption

• Decrease in # of vehicle per household using care sharing by 64% • 8% of vehicles taken off the streets

38,0

Automotive telematics

• Vehicle equipped with telematics (sensors)

• Overall European CO2 emission linked to fuel consumption is 475,5 Mt

• Vehicles equipped: 58% • Decrease in fuel consumption by 10%

25,2

Traffic jam reduction

• Vehicle partially or totally automated

• 33h spent yearly in traffic jam by an average European driver, generating 8,5 Mt of CO2

• Traffic jam duration reduced up to 40% in 2025 through Autonomous Cruise Control, Platooning, intelligent signalling and eventually autonomous driving

3,4

Aircraft telematics

• Sensors network in the plane and its engines

• Total European jet fuel consumption generates 151 Mt of CO2

• Aircraft equipped: 100% • Jet fuel consumption reduced by 2% on average

3,0

Total

Sources: INSEE, ACEA, CCFA, CEBR, Inrix, A.T. Kearney

69,7

A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

Energy savings is a key pillar of the smart home and could reduce up to 15% household energy consumption Evolution of the smart home Security • Remote monitoring • Access record • Intrusion detection

Energy/Utility • Reduce energy usage • Reduce risk of damage • Limit environmental impact Example: Netatmo, Nest

Example: AT&T Digital Life or Gigaset Elements

Entertainment • Content everywhere • Multi-screen • Remote control

Housing

Connectivity

Example: Sonos; Apple, Samsung

Note: Assuming no other change in energy mix or consumption pattern Sources: INSEE, Eurostats, A.T. Kearney

Home devices • Fire alarms • Self stocking fridges • Remote heating Example: Samsung smart home

Impact on energy savings • Technology – Thermostats, lighting control panels – Sensors: temperature, motion, luminosity – Algorithms combining sensor information, historical data and preferences • Mechanisms – Learns user behaviour – Programs itself – Turns to Auto Away mode – Remote access from mobile • Saving opportunity 2025 – Current yearly CO2 emission per European household is 3 500 kg – Overall saving opportunity: 57,8 Mt of CO2 - Expects 15% saving opportunity - Adoption by 50% of Households A.T. Kearney / COP21

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Internet of Things, a key lever to reduce CO2 emissions

Between 10% and 18% of energy consumed by service industries could be saved with IoT Industry &Services

Energy savings related to IoT (in Mt of CO2, EU28) 46

3

8

11

24

CO2 emissions l inked to energy consumption (Mt of CO2) Main optimization levers

IoT opportunities

Retail

Lodging

Telecoms

Smart Logistics

• 239 Mt

• 79 Mt

• 15 Mt

• 185 Mt

• Heating and cooling systems

• Heating and cooling systems

• Data centres

• Engines

• Energy consumption reduced by 10%

• Energy consumption reduced by 10%

• Energy consumption reduced by 18%

• 10% of fuel saved

Note: Assuming no other change in energy mix or consumption pattern Sources: INSEE, Eurostats, A.T. Kearney

Total

• 60% of trucks equipped (2025) A.T. Kearney / COP21

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