Share with the GHSEA on behalf of the DSEA - learning and experience Color variant: Siemens Cool Gray Smart Energy Initiatives Collaboration and a partner eco-system to achieve results Realizing a Community-centric smart energy eco-system Dec. 13th, 2011 Richard Wunderlich, IC Sector, SG Initiatives
Siemens Energy Healthcare Industry Infrastructure & Cities Divisions Fossil Power Generation Wind Power Solar & Hydro Oil & Gas Energy Service Power Transmission Divisions Imaging & Therapy Systems Clinical Products Diagnostics Customer Solutions Divisions Industry Automation Drive Technologies Customer Services Divisions Rail Systems Mobility and Logistics Low and Medium Voltage Smart Grid Building Technologies OSRAM* 80 0 Business Volume 405,000 Employees ~5% R&D Investments Page 2 12-11
Megatrends to 2050 shaping the future Urbanization Urban populations will double to 6 billion Demographic change Average age worldwide will increase from 26 to 38 years Climate change CO 2 productivity must grow by factor of 15 to prevent temperature rising more than 2 C Globalization BRIC countries will contribute 50% of global economic growth Source: United Nations, The Lancet, Climate Works/European Climate Foundation, Economist Page 3 12-11
Sustainable energy is required 19 th century 20th century Start of 21st century End of 21st century Electrification of society: Age of coal Large-scale generation of electrical energy with fossil fuels Megatrends force process of rethinking The new power age: Electricity becomes the form of energy Energy system not sustainable Sustainable energy system Generation and load closely coordinated Generation follows load Increasingly decentralized, fluctuating power generation Load follows generation with intelligent grids Fossil fuels, hydro power Fossil fuels, hydro power, nuclear power Fossil fuels, hydro power, nuclear power, biomass, wind, solar Renewable energies, clean coal, gas, nuclear power No environmental concerns Environmental awareness Page 4 12-11
Traditional System View For decades, we have been successfully working on making energy systems more reliable, intelligent, and eco-friendly. Page 5 12-11
System Transformation A new paradigm Today and tomorrow, we are integrating the energy system through sustainable and innovative technologies Page 6 12-11
Paradigm shift in power grids: The new age of electricity 20th Century Unsustainable energy system End of 21st Century Sustainable energy system 'Generation follows load' 'Load follows generation' Fossil energy sources Renewable energy sources Page 7 12-11
Why Durham. A natural convergence of diverse energy assets Great Location and friendly people 1 day s drive distance of 120 million people Centrally located in Ontario 5 Key Components for Success Engaged Industry World-class education & training Skilled work force State-of-the-art research capabilities Political Will at all levels Transportation Next-Gen Automotive Vehicle production Engineering Services Automotive Centre of Excellence (ACE) Manufacturing R&D Training Labour force Energy Nuclear generation Renewable Technologies Energy from Waste Bio-mass generation DSEA Information Technology Smart Metering Internet Security Serious Gaming Page 8 12-11
Regional Components a critical mass to realize meaningful results 2,590 Square Kms 760,000 people, 2011 estimate Comprised of 8 municipalities Urban, suburban and rural communities 8 Municipalities include: Brock Uxbridge 5 Utilities Include: 2 Institutions Include: Page 9 12-11
Why Durham Strategic Energy Alliance The DSEA A membership driven not-for-profit organization with a genesis in the energy sector. The organization was formed in 2005 with 11 founding members, including Siemens. Since grown to over 70 members Smart Grid: Electric Vehicle Charging Project To install Electric Vehicle Service Equipment (EVSE) a.k.a charging stations and test the impact of plug in vehicles on the electric power grid. Facilitating: Understanding elements of smart grid Evaluating the grid impact of charging electric vehicles Testing of Li-ion energy storage systems Smart Electric Vehicle Charging In December 2010, awarded the opportunity to operate one of 14 regional innovation centres in the Province Page 10 12-11
Project Benefits An understanding of how the billing and settlement processes work Enabling better decisions about when to use energy Increased knowledge about pricing Understanding of vehicle is billing An appreciation of the size of service required to supply charging arrays Conduct load forecasting Understand the impacts associated with grid connections Develop new training programs/ techniques Sets the stage for further collaboration and research opportunities Page 11 12-11
Durham Region an aspiration to lead and pioneer new territory the Energy Capital of Ontario Where to start? Which strategies? Where to invest? Which are the right steps? Which technologies? How to measure success? Page 12 12-11
Existing Partner Components - Smart Grid Ecosystem built from DSEA EVI pilot and Smart Grid Fund strategies Page 13 12-11
The Challenge - Rapidly unifying these strengths in alignment with Ontario s Green Energy and Green Economy A 360 view was required to get Oriented All core business areas of a grid operator were investigated Smart network operation Smart customer service Smart asset & work management Smart energy The smart organization as driver and controller of the necessary changes Siemens Smart Grid Compass TM The results were then aligned with Initiatives to leverage the partner eco-system A comprehensive examination step-by-step Get oriented with the Smart Grid Compass from Siemens Page 14
What do we mean by orientation? Go to where the best are: Orientation 5 Understand strengths and weaknesses in all business domains. How do our processes (Utilities) of today compare to those of the market. Together, we determined which initiatives will help reach our goals. 4 3 2 1 0 You tomorrow Best practice You today Or are you already a leader and want to strengthen your position? Get oriented with the Smart Grid Compass from Siemens Page 15
The Opportunity - develop an actionable Value Improvement Program and Win-Win-Win-Win Initiatives Increasing details to allow immediate execution: Orientation Destination Routing Smart Grid Compass Orientation Study Management Summary Smart Grid Initiatives Smart Grid Roadmap Smart Grid Compass Destination Study Management Summary Qualitative Business Case Value Improvement Program Structure Smart Grid Compass Routing Study Management Summary Quantitative Business Case Value Improvement Program Program Office Setup All utility needs allocated to budgets and prepared execution plans with check points along the way Page 16 12-11