Power Generation Services Solutions for challenging Markets

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Power Generation Services Solutions for challenging Markets Philipp Leifeld, GT Service Engineering / Dirk Kampe Marketing GT Modernizations & Upgrades Matthias Migl, Principal Key Expert Overall Plant siemens.at/future-of-energy

Clean Spark Spread Spectrum 2011 Germany Typical F-class Combined Cycle Power Plant (CCPP) Clean spark spread (CSS) represents the net revenue a generator makes from selling power, having bought gas and the required number of carbon allowances. Year 2011 à 6.054 hours (69,1 %) with a positive Spread Legend: CCS > 0 /MWh Positive CSS à positive income -3 /MWh < CSS < 0 /MWh The plant may be able to compensate the loss only by participating successfully in Auxiliary Services à no garantuee because very competitive CSS < -3 /MWh No chance to compensate the accumulated losses. Page 2

Decline of clean Spark Spreads in Germany Typical F-class Combined Cycle Power Plant (CCPP) 2010 2011 2012 2013 2015 2016 2014 Year Share of positive hours Positive hours 2010 84,9 % 7.437 h Market stabilization on low level CCPP benefit from low gas prices 2011 69,1 % 6.053 h 2012 36,3 % 3.180 h 2013 19,7 % 1.726 h 2014 27,3 % 2.392 h 2015 25,7 % 2.260 h Page 3 2016 till May 19th 1.313 h

Flex-Power Services TM Products available for SCC5-4000F Purge Credit Exhaust Gas Attemperation Combined Cycle Load Gradient Load Gradient Optimization Degassed Conductivity Modified Pre- Warming Concept Adv. Fast Loading Turn Up Primary Frequency Response Start Gradient Optimization Fast Release to nominal speed Fast Wet Compression Grid Services Power on Demand Hot Start On The Fly Flex-Power Services Gas Turbine Part Load Upgrade Minimum Part Load Maintenance Flexibility Reduced Cooling Down Modified ST Valve Staggering Exhaust Gas Attemperation Extended Turn Down Maintenance Interval Fast Cooling Page 4 Exhaust Gas Attemperation Combined Cycle

SGT5-4000F Flex-Power Services TM Targets all aspects of plant operation For illustration only; not to scale; results may vary Start Gradient Optimization Start Gradient Optimization Stand by Min Load Dynamic Part Load In this presentation: Optimization of Part Load and Start Gradients Page 5

SGT5-4000F Flex-Power Services TM Part Load Optimizations For illustration only; not to scale; results may vary Stand by Min Load Dynamic Part Load Dynamic, emission compliant part load operation is optimized by Part Load Upgrade (PLU), Extended Turn Down and Combustor Bypass Page 6

SGT5-4000F Flex-Power Services TM Part Load Upgrade (PLU) Secondary Air Control Additional Extraction Anti Icing / Air Preheater E2 E3 Heat Extraction from Boiler for Air Preheater OTC increase -10% rel. GT Load w/ constant CO emission within IGV range Upgrade Scope Benefit (Site specific assessment necessary) Optimized secondary air control* Add. air extraction at combustor plenum (optional) Anti Icing / Air Preheater activation* Extended Part Load Operation Range with low Emissions (~10% deeper GT load possible with constant CO emissions in IGV range**) Optimized part load efficiency Part load OTC increase * * Experience: Positive effect on CO emissions demonstrated on several units, current New Apparatus Standard Savings of fuel if no electric power needed ** Depends on site configuration and ambient conditions Page 7

SGT5-4000F Flex-Power Services TM extended Turn Down Anti Icing / Air Preheater Ext. Turn Down Heat Extraction from Boiler for Air Preheater Positive results from first validation run (05/2016) in evaluation! Upgrade Scope Extended Turn Down (reduced GT load with constant part load OTC) Anti Icing / Air Preheater (decreased IGV minimum position due to higher compressor inlet temperature) Benefit (Site specific assessment necessary) Extended fast accessible Part Load Operation Range Optimized part load efficiency Savings of fuel if no electric power needed Page 8

SGT5-4000F Flex-Power Services TM Combustor Bypass Upgrade - Design Anti Icing / Air Preheater Ext. Turn Down Bypass Heat Extraction from Boiler for Air Preheater up to -30% rel. GT load with 10ppmv CO Page 9 Upgrade Scope Combustor Bypass system (reduced CO by increased combustion temp.) Extended Turn Down (reduced GT load with constant part load OTC) Anti Icing / Air Preheater (decreased IGV minimum position due to higher compressor inlet temperature) Benefit (Site specific assessment necessary) Extended Part Load Operation Range with low CO Emissions** Optimized part load efficiency Savings of fuel if no electric power needed ** Depends on site configuration and ambient conditions

SGT5-4000F Flex-Power Services TM Potential for Part Load reduction summary Power GT 100% Standard CO limit Part load OTC increase Anti Icing / Air Preheater activated Optimized secondary air control further closed IGV PLU Ext. Turn Down Comb. Bypass For illustration only; not to scale; results may vary Page 10 OTC standard operation line Ext. Turn Down operation line

SGT5-4000F Flex-Power Services TM Start Up Optimization For illustration only; not to scale; results may vary Start Gradient Optimization Start Gradient Optimization GT Start Gradient Optimization reduces start up times for hot and cold engines - Site specific total plant capabilities to be considered - Page 11

SGT5-4000F Flex-Power Services TM Fast Start and Hot Start on the Fly (CC) Fast GT Start Up* Faster Start Up with GT load gradient of up to 30 MW/min Retrofit possible for Service Fleet of SGT5-4000F up to -11 min.* Hot Start on the Fly The Hot Start On The Fly introduces a start-up concept for the overall plant by using the first produced steam to start-up the steam turbine. Load holds for the gas turbine not necessary. Hot Start On The Fly is applicable to Drum Boilers as well as Benson Boilers and has been implemented in 13 combined cycle power plants. 26 min. demonstrated* * Benefits are subject to specific technical plant evaluation, expected values with test tolerances @ ISO condition, actual results may vary Page 12

SGT5-4000F Flex-Power Services TM Standard vs. Optimized combined cycle power plant Standard power plant Start-up process Standard PP Hot Start-up time: 67 min Gas consumption: ~40.000 Nm³ Optimized PP with Flex-Power Services TM Hot start on the fly time: 27 min -60% Gas consumption: ~17.500 Nm³ Optimized power plant Benefit Shut-down process Standard PP Shut-down time: 26 min Gas consumption: ~17.500 Nm³ Optimized PP with Flex-Power Services TM Shut down on the fly time: 20 min Gas consumption: ~13.750 Nm³ Page 13 Source: 2014 site data from a European Siemens CCPP

Flex-Power Services TM Products available for SCC5-4000F Purge Credit Exhaust Gas Attemperation Combined Cycle Load Gradient Load Gradient Optimization Degassed Conductivity Modified Pre- Warming Concept Adv. Fast Loading Turn Up Primary Frequency Response Start Gradient Optimization Fast Release to nominal speed Fast Wet Compression Grid Services Power on Demand Hot Start On The Fly Flex-Power Services Gas Turbine Part Load Upgrade Minimum Part Load Maintenance Flexibility Reduced Cooling Down Modified ST Valve Staggering Exhaust Gas Attemperation Extended Turn Down Maintenance Interval Fast Cooling Page 14 Exhaust Gas Attemperation Combined Cycle

Flex-Power Services TM Example: Exhaust Gas Attemperator Benefit - Faster warm and cold starts - Lower minimum part load - Power in hot ambient conditions - Smoother HRSG operation Scope Water injection - Additional hardware for exhaust duct incl. pumps - Revised logics and I&C Implementation - Commissioning & operator training Applicability HRSG GT Generator ST - Various plant configurations Page 15 Multiple Improvements

SGT5-4000F Modernizations & Upgrades Frame Evolution and Gas Turbine Upgrade Packages Modernization & Upgrades Compressor Mass Flow Increase Thermal Performance Upgrade Improved Hot Gas Parts Burner Upgrade (Low-NOx à Premix-Pilot) Cooling Air Reduced Combustion Chamber Burner Upgrade (Reduced Swirl) Fuel Gas Preheating Compressor Mass Flow Increase Turndown Hydraulic Clearance Optimization HR3 Burner Firing Temperature Increase 15 Stage Compressor Additional Modernization & Upgrades Advanced Compressor Coating EVAP Cooler Advanced Stability Margin Controller Fast Wet Compression Page 16 1996 Engine Evolutionary Development: Today same engine basis since 1996 SP6/7 SP4 1997 2003 Advanced Compressor Cleaning System Foreign Object Detection System Flex-Power Services TM SGT5-4000F Frame development to meet market requirements 2004 2005 2012 2007 2015 Ongoing Development Further Firing Temperature Increase Grid and Peak Load Products MW Values at limiting performance, ISO Cond. pressure losses 10/35 mbar Wet Compression Fuel Conversion Fast Load Gradients 315 MW 300 MW 288 MW 283 MW 226 MW

SGT5-4000F Modernizations & Upgrades Exceeding Guarantees with SP7 Upgrade 2015, UK Upgrade Scope Upgrade Benefit Power & Efficiency* Gain GT1 GT2 Power [MW] 19.7 Efficiency [%pts] 0.81 Power [MW] 22 Efficiency [%pts] 0.7 Page 17 Burner HR3 Reduced swirl + modified mixing CAR Combustor improvement (Ceramic Mockups only) MHS and Turbine Vane 1 Upgrade Style Torque discs 1+3 (only for hot ambient) Check of Turbine blade 3+4 Turbine Vanes 2, 3, 4 Upgrade Style Turbine Blades 1, 2 Upgrade Style Rework of Combustor and Turbine Vane Carrier due to Upgrade Cooling Air Concept only * Subject to specific technical plant evaluation, ISO conditions, Dpin=10mbar, Dpout=35mbar + I&C Modifications intended to improve operation for leackage prevention Additional Scope: Bearing Shell and IGV Improvements, increased CVC1 radii, wear segment at combustor-tvc interface, new Casing Sealings Upgrade benefit exceeds guaranteed values of efficiency and power

SGT5-4000F Modernizations & Upgrades First Time Application of SP7 & CMF++ 2015, Russia Compressor stages 1-6 Casing improvements New instrumentation Burner with modified mixing Additional blow-off line Utilized Effects Increased compressor mass flow Thermal performance increase Upgrade References Successful first time application in Russia 09-2015 Upgrade operational experience > 6,000 EOH Two additional implementations planned for 2016 / 2017 New casing sealing concept Latest turbine design Potential Upgrade Benefit GT power increase: up to 20 MW* Compressor disc 1 Site specific rotor mid section Latest combustor design Efficiency increase: up to 0.3% pts.* Power limit increase to 308 MW * Expected values based on SP4 configuration, ISO conditions, site specific assessment required Successful 50 Hz first time application in Russia showed > 30 MW CC power output Page 18

Thank you for your attention! Dirk Kampe Siemens AG Power Generation Services Division Power and Gas Stand-alone M&U/LTE Key Expert Group for 2000E/4000F dirk.kampe@siemens.com Thomas Brandl Siemens AG Österreich Power Generation Services Business Unit Power and Gas Austria thomas.a.brandl@siemens.com è Please contact us to find the best approach for your plant http://www.energy.siemens.com/hq/en/services/fossil-power-generation/flex-power-services.htm Page 19

Disclaimer This document contains forward-looking statements and information that is, statements related to future, not past, events. These statements may be identified either orally or in writing by words as expects, anticipates, intends, plans, believes, seeks, estimates, will or words of similar meaning. Such statements are based on our current expectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety of factors, many of which are beyond Siemens control, affect its operations, performance, business strategy and results and could cause the actual results, performance or achievements of Siemens worldwide to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For us, particular uncertainties arise, among others, from changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products or technologies by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. More detailed information about certain of these factors is contained in Siemens filings with the SEC, which are available on the Siemens website, www.siemens.com and on the SEC s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated. Trademarks mentioned in this document are the property of Siemens AG, it's affiliates or their respective owners. Page 20