PowerGen Europe 2015 Market opportunities and benefits ensuring effective collaboration with customers and suppliers Andreas Pickard, Head of R&D Management Energy Solutions Siemens AG Siemens AG 2015 All rights reserved. Answers for energy. Page 1 Amsterdam June 09-11, 2015
Standardization Efficiency Race The efficiency race and standardization dominated the CCPP-development of the last decades SCC5-2000E (1992) SCC5-4000F (1996) SCC5-4000F (2001) SCC5-8000H (2011) Hydrogen/water cooled generator Air cooled condenser Hydrogen cooled generator GT-auxiliaries Fuel gas-skid Project Specific white sheet Cooling tower NOx-skid Reference Power Plant (modules) Fuel oil-skid Standardized Power Block Prefabricated Skids Do we have to change something in our R&D approach? Page 2 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards to a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 3 Amsterdam June 09-11, 2015
Energy Only market today Energy Only market before 2010 Even with all the development our customers can not achieve a sufficient profitability Demand Nuclear Lignite M1 Hard coal Gas Oil GW M2 GW Page 4 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 5 Amsterdam June 09-11, 2015
The new role of the fossil fleet - Security of supply Grid services Energy Efficiency Power on demand The business model should based on the new role Page 6 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 7 Amsterdam June 09-11, 2015
The European power generation market is confronted with a dramatic change Residual load 2010 Peak load Intermediate Base load Page 8 Amsterdam June 09-11, 2015
Former business models based on energy only market are history Residual load 2020 Peak load Intermediate Base load Increasing demand and more cycle Decreasing operation intervals and increasing down time intervals A base load fleet (10-20 GW) ensures frequency control Page 9 Amsterdam June 09-11, 2015
2010-01 2010-06 2010-11 2010-16 2010-21 2010-26 2010-31 2010-36 2010-41 2010-46 2010-51 2011-04 2011-09 2011-14 2011-19 2011-24 2011-29 2011-34 2011-39 2011-44 2011-49 2012-01 2012-06 2012-11 2012-16 2012-21 2012-26 2012-31 2012-36 2012-41 2012-46 2012-51 2013-04 2013-09 2013-14 2013-19 2013-24 2013-29 2013-34 2013-39 2013-44 2013-49 2014-02 2014-07 2014-12 2014-17 2014-22 2014-27 2014-32 2014-37 2014-42 2014-47 2014-52 2015-05 2015-10 2015-15 We predicted an increase of peaking demand but underestimated the price effect due to over capacities 60 50 Energy Power Spot Market Prices Price [ /MWh] Av Price per year 40 30 20 10 0 500 400 300 200 100 0 Volume [MWh] Mid-term a pricing increase on peak load is still expected Page 10 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 11 Amsterdam June 09-11, 2015
Retrofitable value feature for the new business model will be key in our development programs Tertiary frequency reserve Reaction time, reliability and predictability will be key for market success Peaking capabilities Maximize peaking capacity Minimize fuel consumption for start and stop cycles Frequency control @ base load Minimize Fuel consumption during low load operation @ maximized frequency control capability We need your experiences to detail the requirement profile Page 12 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 13 Amsterdam June 09-11, 2015
Our new development approach Be prepared: Drive technology development based on market trends On demand: Agree on concept and specification on demand customer Just in time: Execute value feature program for the first application We collaborate with our customer during value feature development Page 14 Amsterdam June 09-11, 2015
Agenda Introduction Business Modell Security of supply From a static towards a dynamic market environment From a standard plant towards value feature Value oriented just in time development Summary Page 15 Amsterdam June 09-11, 2015
We develop together with our customers solutions for future business opportunities The dynamic market environment drive a change in the R&D approach Development on demand and just in time based on value generation are key A collaboration with customers will maximize the market success for both We invite you to learn more about our value feature program for existing assets or new builds Page 16 Amsterdam June 09-11, 2015