MARKET OPPORTUNITY
Energy is an ever-growing environmental and economic issue. Pressure is rising from both cost and legislation to reduce demand and energy consumption. Management, reliability and continuity of energy supply are mission-critical issues in many sectors such as utilities, healthcare and data communications.

With global energy demand forecast to grow by over 40% between 1997 and 2020 (source: International Energy Agency), energy management has become one of the world.s largest markets, with the need for ever-increasing efficiency of existing and planned energy infrastructures driving the need for innovative solutions.

POSITION
The division addresses markets connected with power and energy infrastructure and with management of buildings for industrial, commercial and residential usage.

Our opportunities fall into two categories. First, we increase the efficiency and reliability of existing installed energy infrastructure by reducing cost and unlocking value for organisations with large energy assets or consumption. Second, we design and plan for energy efficiency for new energy developments and emerging markets. In both these areas, we are unique in combining global presence, supply-and demand-side expertise and the intellectual capital to deliver improved energy management solutions.

VALUE FOR OUR CUSTOMERS
The division provides customers with end-to-end power and energy solutions, coupled with facility integration systems, that enable them to reduce costs, ensure uptime and conserve resources. Customers can then maximise return on their investments, whether by the effective performance of their assets or by the efficient management of rising energy costs, finite natural resources and environmental pressures.

OUTLOOK
Building its presence in vertical markets and driving lean performance should push the division's volumes and margins forward in the short term. Longer-term success lies in integrating the disparate businesses as a complete energy management service provider. Over the next 18 to 24 months, the division expects to increase margins by up to two percentage points, excluding any market recovery.

Albertson's: getting the temperature just right
Albertson's, a world leading food and drug retailer with annual revenues of $37.9 billion and more than 2,300 retail stores, understands the role energy and its costs play in their business. They take energy seriously and believe in a proactive energy philosophy. Their successful partnership with Invensys providing refrigeration and environmental controls led to other energy strategies. Invensys and Albertson's collaborated to test additional energy management solutions in 40 stores. This established a baseline of energy usage by monitoring consumption in all areas of the stores, then optimised the equipment controlling those costs. Following a five-store energy audit, first year energy cost savings from each store exceeded the initial investment three times over. Albertson's is incorporating this energy initiative across all of its stores, both reducing costs and underlining Albertson's environmental commitment to energy conservation.
Michel Roy of Albertson's with Ed Page of Invensys.