Economic growth and technological progress have almost doubled global energy consumption in the past quarter of century, from 7 billion TOE (tonne of oil equivalent) in 1980 to 12 billion in 2008¹. The dramatic increase in the technology-consuming population and the number of power-hungry electronic devices we all use calls for a key change in the world’s approach to power: an increased emphasis on energy efficiency. The long-standing world #1 in application-specific power-management devices, STMicroelectronics develops products and technologies that increase energy efficiency all along the energy chain, from power generation to distribution and consumption across the broad spectrum of microelectronics applications. The Company spends a significant amount of its total R&D investment on energy efficiency-related technologies and sees many new opportunities to extend its lead.

Optimizing power consumption is a consistent goal for all ST researchers, designers and applications engineers. The Company has developed some of the world’s most efficient power-handling electronics technologies; it is acknowledged as a world leader in designing circuits that minimize power consumption; and contribute to energy savings in the end applications. These applications range from factory automation, where optimized electronic control can save kilowatts, down to saving a few milliwatts from the standby power of consumer devices that are sold in tens of millions.

An ST internal analysis has shown that using end products built around our energy-saving technologies and products can cut residential energy consumption by a third. For example, if all the old refrigerators in Europe used the ST technologies that we are shipping today, such as electronic temperature control and variable speed compressors, we would save 1000MW and 5 million tons of CO2 per year. That’s equivalent to the output of a medium-size power plant and the typical annual CO2 emissions of a million cars.

ST is also a world leader in smart-metering technologies that help utility companies to better control energy distribution. Electronic meters are key to the Smart Grid concept evolution, which will significantly increase energy efficiency through the combination of different advanced technologies, including Power Line Modems (PLM), Distributed Energy Generation and Conversion, and Home and Building Automation. ST has extensive experience in providing smart metering solutions to major utility companies around the world.

As the worldwide leader in the Industrial segment, ST is constantly looking for new ways to further improve energy efficiency in the key end applications. ST’s efficient solutions for Lighting, Power Supply and Electric Motor Control - by far the most energy-demanding applications - represent crucial contribution to the global energy and CO2 savings efforts.

ST is active in the field of renewable energy technologies, including photovoltaics, which utilizes the virtually unlimited amount of the sun’s radiant energy and produces no greenhouse gases or other waste. Today, the solar power industry focuses on increasing the energy conversion efficiency and maximizing the photovoltaic panel output power.

ST’s innovative technologies that improve efficiency in solar-power converters include the proprietary MDmesh™ technology, which ensures ultra-low loss performance, or silicon carbide (SiC) Schottky diodes for minimizing switching losses and improving thermal performance in solar-power systems, where every fractional efficiency percentage is valuable.

ST engineers have come up with an innovative solution that maximizes the amount of power extracted from a single solar panel and therefore improves the overall efficiency of a photovoltaic system. Called Solar Energy Booster, this new architecture embeds power converter devices in the rear side of the panel, with multiple photovoltaic cells hooked up in strings that are connected to individual converters. Such distributed approach results in higher efficiency compared to conventional solar-power system topologies, where most of the electronics is centralized in the main converter box.

Expanding its efforts to improve efficiency along the whole energy chain, ST teamed with Sharp and Enel in early 2010 to create a joint venture for the manufacture of innovative high-efficiency photovoltaic panels. These panels are particularly suitable for medium- and large-scale power generation and are able to maintain a very high level of energy conversion efficiency even in very hot climates.  ST sees the solar power conversion market as a new opportunity with high growth potential that will further enlarge the role the Company plays in addressing the global challenge of energy saving and efficiency.

January 2010