The Smart Grid by Siemens.

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1 The Smart Grid by Siemens. Solutions to better manage energy system change. Dr. Jan Mrosik CEO Smart Grid Division Infrastructure & Cities Sector Siemens AG Amsterdam, Siemens Schutzvermerk AG / All Copyright-Vermerk rights reserved.

2 Energy systems worldwide are changing Page 2 Schutzvermerk / Copyright-Vermerk

3 Key drivers for new solutions 22% 20% 21% 9% Page 3 Distribution Losses Non-technical Losses 18% 5% 12% 3% 21% 10%

4 The European energy infrastructure faces fundamental changes Challenges Large scale extension of renewable und decentralized generation Capacity enhancement and modernization of generation and grid infrastructures Smart Meter roll out Contain energy prices to remain competitive Page 4

5 Challenges in changing energy system Renewable and distributed generation Limited generation and grid capacity Aging and/or weak infrastructure Cost and emissions of energy supply Smart Grid offers solutions Balancing generation & demand, new business models Load management & peak avoidance Reliability through automatic outage prevention and restoration Revenue losses, e.g. non-technical losses Efficient generation, transmission, distribution & consumption Full transparency on distribution level and automated loss prevention Page 5

6 Siemens Smart Grid offers an end-to-end portfolio designed to provide constant energy in a time of constant change End-to-End Security Page 6

7 Smart Grid: Key enabler of the future energy infrastructure Page 7

8 Automated distribution grids assure overall system stability Smart Secondary Equipment Transformer Transparency on distribution level enables stability also at TSO level Decentral automation supports efficient renewable integration Additional data enable IT based system optimization Low Voltage Page 8 MV Switchgear

9 Smart Metering will add value beyond automated billing Electric Vehicles Meter Data enable limitless applications through MDM systems Wind Residential Metering MDM enables use of meter data to stabilize and manage the grid Sub Metering MDM drives customer engagement and affiliation Appliance Page 9

10 Demand Response for increased stability and additional value add Prevent critical peak load situations from escalating Reduce need for base load capacity extension Establish new business models for utilities through Demand Response programs Page 10

11 Virtual Power Plants help getting a grip on decentralized generation System stabilization through forecast-based load balancing Inclusion of smaller units in economically optimized fleet management Enhanced business cases for small decentralized generation e.g. participation in reserve markets or energy exchange Page 11

12 Business analytics is key to optimal system management Operational and enterprise IT integrate Business analytics is the key to ultimate optimization of utility business Energy IT will grow with a multitude of use cases Page 12

13 Key requirements to safeguard innovative infrastructure development Security of investments in Grid extension and modernization Permissive Smart Market schemes Legal framework for smart metering and MDM Page 13

14 Successfully implemented today. Author Page 14

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