Grids in a new age of electricity Press Conference Metering Europe Barcelona, October 7, 2009 Ralf Christian CEO Power Distribution Division, Siemens Energy Sector Siemens AG 2009 Energy Sector
Long-term market drivers in the energy business Growing demand for electricity Need for replacements Sustainability challenge 2.2 % p.a. 33,000 TWh 17% Hydro 15% Need for replacing aging infrastructure Example U.S. power grid: 70% of transformers and 60% of switchgear is over 25 years old 20,300 TWh 1 3% 16% 13% 21% 6% 41% Fossil energy sources 68% 54% Nuclear 15% Gas 20% Oil 2% Coal 32% 2008 2030 > 2 billion a year needed for replacement and renewal programs alone 10000 8000 6000 4000 2000 0 1947 1957 1967 1977 1987 1997 2007 2017 2027 Local Replacement Scarce resources Climate change Source: UBS/ NERC 1) TWh = Terawatt hours Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 1
Solutions for a sustainable energy system along the entire energy chain 'Efficiency' CCS Fossil CCS Up- Mid- Downstream stream stream Oil & Gas Wind Solar Energy Mix Nuclear Generation Intelligent Energy System Grid Consumption Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 2
Grids promise attractive market potential 6 bn Siemens expects to win Grid orders worth > 6 billion by 2014 Siemens anticipates Grid orders worth nearly 1 billion in 2009 By 2014, Siemens aims at winning a more than 20 percent share of the approx. 30- billion-euro market being addressed by the company Siemens plans 7-percent annual growth for its Grid business 30-billion-euro market U.S. government plans investments of roughly 3 billion in Grids as part of its economic stimulus program Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 3
Paradigm shift in power grids: The new age of electricity 19th Century 20th Century Early 21st Century End of 21st Century Electrification of society 'Age of Coal' Extensive generation of electrical energy 'Age of fossil fuels' Shift to new age of electricity Challenges require rethinking: 1.) Demographic change 2.) Scarce resources 3.) Climate change The new age of electricity Electricity will be the energy source for most applications in daily life. Integrated energy system with power grid as backbone Unsustainable energy system Unsustainable energy system Sustainable energy system 'Generation and load closely coordinated' Supply island with stochastic load 'Generation follows load' Integrated network, central generation, load stochastically predictable, unidirectional energy flow 'Energy system shifting' Increasingly decentralized, fluctuating generation 'consumer' becoming 'prosumer' 'Load follows generation' Central + decentralized generation, intelligence with ICT 1, bi-directional energy flow Fossil energy source, hydro Fossil energy sources, hydro, nuclear Fossil energy sources, hydro, nuclear, biomass, wind, solar Renewable energy sources (solar, wind, hydro, biomass), 'clean' coal, gas, nuclear No environmental concerns 1) ICT = Information and Communication Technologies Environmental awareness Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 4
Grid The three core components 1. Meters 2. Grid Intelligence 3. Utility IT Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 5
Siemens is solidly positioned in all parts of a Grid Grid Utility IT Generation ERP: Billing Call center CRM... Energy4U Consumption Solar power Wind power System Integrity Protection Advanced Energy Mgmt System (EMS) Asset Management Distribution Management Systems (DMS) Meter Data Management (MDM) Building intelligence Distributed energy resources HVDC & FACTS Grid Intelligence Substation Automation & Protection Condition Monitoring Distribution Automation Meter Meters Residential loads E-cars Transmission grid Distribution grid Arbon Energy E-cars 'Greenster' Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 6
All-round know-how and experience: Example of projects for smart grid applications Application Objective Examples Shore-side power supply system for ships in ports High voltage directcurrent transmission (HVDC) Environmentally friendly electricity from the public network Energy-efficient, low-loss power transport over long distances Connection to the public Network of Lübeck utility at the Nordland Dock Innovative HVDC projects in China, India, Spain and the U.S. Virtual power plants Active participation of small generators in the power market DEMS decentralized energy management system at Evonik RWE and KonWerl Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 7
All-round know-how and experience: Example of projects for smart grid applications Application Objective Examples Electromobility and energy storage Metering Greenfield Planning Grid Utilization and storage of renewable energy sources Promoting the efficient use of energy through active involvement of consumers in the energy market State-of-the-art Grid for a CO 2 -free city Technology partnership with RWE on e-mobility and energy stores for smart grids Automated metering and Information system AMIS at Arbon Energie and Energie AG Oberröstereich Development of Network Concept for Masdar City Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 8
Siemens is moving ahead in leading positions 1 2 Worldwide goals for efficiency and environmental care Goals for Metering (e.g. introduction in Germany in 2010) Dynamic market 3 4 5 Siemens Energy = No. 1 for energy automation New: AMIS Metering solutions New: Utility IT: Strengthen portfolio with Energy4U Siemens set-up for Grids Siemens is on the optimal course with Grids Metering Europe, October 7th, 2009 Ralf Christian Grids in a new age of electricity Page 9
Thank you for your attention! Press Conference Metering Europe Barcelona, October 7, 2009 Ralf Christian CEO Power Distribution Division, Siemens Energy Sector Siemens AG 2009 Energy Sector