Government Affairs
POLICY BRIEFS

Energy efficiency

Background
Energy is one of the underpinnings of modern society. It is inextricably intertwined with virtually every aspect of contemporary life, from powering our computers, to heating our homes, to fueling our automobiles. Energy is a multi-dimensional issue and each dimension brings its own questions as we ponder issues of pollution, climate change and conservation against the promise of affluence for millions globally, entering the middle class.

As a global society, we must move deliberately and thoughtfully. We must build upon our existing infrastructure and incorporate new and innovative technological solutions that will bring clean, efficient and reliable energy to consumers. Motorola believes it can play a critical role in reshaping the energy future as both a good corporate citizen by reducing its environmental footprint and by bringing innovative communications technology solutions that will provide a global path to energy efficiency and a reduction in the environmental impact of human activity.

The impact today
Motorola approaches energy efficiency and conservation with the power of technology in mind. Our basic strategy is to focus on:

• The energy efficiency of the products we produce
• Responsible use of energy in our own operations
• Places where our technology can make a difference by improving our customer's energy efficiency
• Advocating for policies and legislation that promote the use of technology as a means toward energy conservation

Motorola's energy action plan starts with our own products and operations. For instance, we have improved the energy efficiency of our set-top product line by approximately 50 percent in the last decade or so (specifically comparing 2007's DCH70 product with 1998's DCT2244). Our new IP-enabled set-tops meet the U.S. Environmental Protection Agency Energy Star requirements. Similarly, we have improved the overall energy efficiency of cell phones, leading to longer talk times and less need to charge the battery. We have reduced average standby power of mobile phone chargers by 70 percent since 2000, and reduced carbon life cycle impacts of typical mobile phones by 50 percent since 2004.

In a 2008 study by ABI Research, Motorola was named the "greenest" wireless local area network supplier. The study highlighted our software technology that manages power consumption and the fact our batteries meet the stringent Level 4 Energy Star and California Public Utilities Commission requirements. As an adjunct to our product and operations strategy for energy efficiency, we also audit our suppliers' efforts in similar energy and environmental programs.

Operationally, about 15 percent of the electricity we purchase world wide (as of Spring 2009) comes from renewable sources, up from 8.6 percent in 2008. Our goal is to increase our purchase of electricity from renewable sources to 20 percent by 2010 and 30 percent by 2020.

Our commitment to energy efficiency is practiced on a global basis. In Europe, Motorola is a signatory to the EU's Code of Conduct on Energy Efficiency of External Power Supplies. All of our cellular phone power supplies shipped since 2006 are compliant with the Code of Conduct. To support alternative energy solutions and procurement, Motorola also advocates for a system of grants and support from financial institutions such as the European Bank as well as the National Regulatory Authorities. In China, our Beijing campus opened in 2007 and features a broad array of energy-saving architectural and structural features - from dimmer switches and special window panes to absorption furnaces - designed to reduce demand for energy and manage energy use wisely.

As a proud engineering company, we also strive to architect and implement communications systems that can be upgraded with our latest-generation hardware and software upgrades to increase equipment lifetime, efficiency, reliability, security and reduce overall environmental impact.

The modernization of the electrical grid to an intelligent grid provides an example of how we help our customers become more energy efficient. Motorola has been active in this arena for some time. We are partnering with U.S. electric utilities to provide the wireless communications infrastructure that will link grid components to increase efficiencies and integrate new clean distributed energy sources such as renewable power. A variety of Motorola technologies are being deployed such as Mesh networks, WiFi and broadband-over-power line architectures. The real-time data backhauled by Motorola technology will allow utility operators to manage power more efficiently and reliably throughout the electric grid.

In Europe, Motorola partners with utilities and the European Union for similar efforts. The intelligent grid concept is just one example where creative use of existing technologies can drive energy efficiency. Others include "intelligent transportation" systems that promise to streamline traffic flow. Beyond ITS, we have also worked with the city of Glasgow, Scotland to improve the efficiency of the public transit system.

In Africa, Motorola deployed a wind- and solar-powered renewable energy cell site in Namibia, where approximately 90 percent of citizens live in rural areas that are mostly unconnected to the electricity grid. The system was installed in only 12 weeks, whereas the grid was scheduled to reach the site in three years. The installation demonstrated that renewable energy can offer a cost-effective and environmentally friendly alternative in remote areas without access to an electrical grid, and is still in operation today. Such demonstrations have benefits for connecting the unconnected in general, and lay the groundwork for energy efficient broadband implementations in rural areas around the world.

These advances are made possible through creative applications of known communications technologies and new innovative technology solutions. Motorola believes these solutions can be applied more broadly to energy systems around the globe.

Motorola position
Capital expenditure guidelines are often a barrier to purchasing alternate energy. Motorola supports energy legislation that provides incentives to assist the up-front costs of the deployment of these technologies. We would like to emphasize that such incentives should remain technology-neutral and not pick early winners. Possible instruments to assist operators investing in alternative power solutions could involve:

• Grant mechanisms set up by National Regulatory Authorities in consultation with interested stakeholders. Such grants could originate from funds collected under spectrum auctions; and
• Systems of loans from financial institutions, such as the European Bank for Reconstruction and Development, European Investment Bank and national financial institutions;
• The American Recovery & Reinvestment Act (ARRA) signed into law in early 2009 contained provisions for intelligent grid and energy efficiency technology upgrades

Motorola also advocates for accelerating funding for existing technologies that improve energy efficiency. The evolution of an intelligent electrical grid provides one example. Motorola supports comprehensive energy legislation such as H.R. 6, The Energy Independence and Security Act of 2007, in the United States. This legislation, which was signed into law, contains several provisions to help modernize the nation's electricity grid, or promote the development of an intelligent electrical grid, or "Smart Grid" as the legislation calls it. The overriding goal is to enhance the reliability, transmission efficiency and security of the nation's electricity grid. Motorola applauds the inclusion of $4.5 billion in funding to spur the development of the Smart Grid as part of ARRA, passed by the U.S. Congress in early 2009.

Renewable energy generation, and delivery of electricity to unconnected rural areas is a worldwide priority and Motorola advocates for policy and legislative support to fund unique technologies and the test beds to develop practices to be shared.

Motorola believes energy efficiency regulations, when necessary, must be harmonized in the interests of uniform government policies, the environment and the global marketplace. Motorola will continue to support additional energy legislation that seeks to provide efficient use and reliable, secure and clean sources of energy to all consumers.