BLOCK SEMINAR

Stochkolm, Date..

Environmental drivers for business:

How to capture the energy efficiency opportunity?

Carlota, Marieke, Vanessa, Dantek, Tomek, Silwerek

Our Challenge:Environmental drivers for business: How to capture the energy efficiency opportunity?

Our Approach:- Strategic Marketing- Client Perspective - Concrete Solutions

Introduction

Table of Contents

Stochkolm, Date..

Regulation

ABB

SIEPC

END CUSTOMEREND CUSTOMER Politics

The Stakeholder Map

End Consumer: Commercial & Residential

End Customer: Utilities & Industries

C02 Emission: A real Opportunity

E.E is best response to rising CO² emissions

Other solutions like Renewable and Nuclear are opportunities for ABB

Renewables Growth

Generation from renewabes will double within 20 years

EU Regulatory Trends in the Energy Market

Action Plan for Energy Efficiency (2007-12)

20% reduction in energy consumption by 2020 & Target of a 20% share of renewable energies

• Swedish national target is set at 50% renewable energy

Under revision

Europe’s Energy Regulations

Most Important Regulators

Most important guidelines

Council of European Energy Regulators (CEER)

European Regulators Group for Electricity and Gas (ERGEG)

PESTEL Analysis

Porter’s 5 Forces

5 Forces: A framework that determines the competitive intensity and therefore attractiveness of a market; attractiveness refers to the overall industry profitability potential

5 Forces

ABB SWOT

ABB reduces losses on the entire energy chain Solutions for every business actor on the energy market Real potential for premium products

ABB E.E Innovations Reduces Losses at Every Stage of the Energy Chain

Customer Analysis

Utilities Energy intensive industries

Overview

• Engages in the generation, transmission & distribution of electricity• Utility major concerns: reliable service, regulation & long-term investments

• Energy represents 5-15% of production costs = 37% of global primary energy consumption

Trends • Rising energy prices • 20% higher Energy demand in 2030 compared to 2005 • Distributed Energy Resources (Smart Grids)

Drivers• Energy Efficient Incentives (white certificates)• Competitive pressure to minimize overall production costs• Reduce vulnerability to high and volatile energy prices• Increasing environmental and E.E regulations and goals• End consumer demands 

Barriers• Costs and investment barriers• Informational barriers• Network reliability & data security• Lack of ICT capabilities• Lack of common standards & protocols

• Costs and investment barriers• Informational barriers• Internal organizational barriers• External organizational barriers

Recommendations

A Holistic Approach to Energy Efficient Marketing: Taking a Bigger Stake in Client E.E Initiatives

2. Strategic Partnership with

Investors

3. Strategic Partnerships with

ICT

1. Proactive E.E Solutions

•Capital Availability•Risk Reduction•Barrier Removal

• Business Solutions

• Cross divisional • Client Education• Client involvement

• Core Competency• Security Concern• Privacy Concern• Barrier Removal

Recommendation 1: Proactive E.E. Solutions

Recommendation 2: Energy Efficiency Investing

E.E Products

Financing

Partnership

• $170 bl/y globally invested in “energy efficiency”• $160 bl/y “untapped efficiency markets” in US

(McKinsey & Co)

Recommendation 2: Strategic Partnerships with Investors

Recommendation 3: Strategic Partnership with ICT

The Future of ABB

ABB Will…

• Act as a proactive champion for the Energy Efficient Future

• Build bridges between E.E stakeholders

• Be THE Smart Grid Innovator

THANK YOU! QUESTIONS?