Smart Grids and individual

mobility in a new age of

electricity

Smart Grid Press Conference

Salzburgring, September 4, 2009

Wolfgang Dehen
CEO Energy Sector
Member of the Managing Board,
Siemens AG
© Siemens AG 2009
Energy Sector
 Long-term market drivers in the energy business

Growing demand for

Need for replacements Sustainability challenge
electricity
Need for replacing aging
infrastructure
33,000 TWh
Example U.S. power grid:
2.2 % p.a. 17%
ƒ 70% of transformers and
Hydro 60% of switchgear is over
15% 25 years old
Nuclear
20,300 TWh1 15% ƒ >€2 billion a year needed for Scarce resources
replacement and renewal
3%
16%
Gas programs alone
20% 10000

13%
Fossil Oil 8000
2%
21% energy 6000

6% sources
4000
Coal
68% 54% 32% 2000
41%
0

1947 1957 1967 1977 1987 1997 2007 2017 Climate change
2027

2008 2030 Local Replacement

Source: UBS/ NERC

1) TWh = Terawatt hours

Energy market –
Average annual investments up to 2030

Overall market for energy supply

Power Generation
infrastructure
Biomass/ Others
Total Residues 2010
Total 350 bn 80 Fossil
EUR/year
1,090 bn
90
EUR/year Solar
Nuclear
45

Primary 30
Wind 75
Power energy supply In bn €
Hydro

generation
Power Transmission & Distribution
350 bn
410 bn Total
330 bn Transformers
EUR/year Others (e.g. insulators) High
30
Voltage
95 35
Medium
330 bn 30 Voltage

20 5 20 Utility
LV distribution
10 Automation
Energy storage 20
Power transmission Electrical meters 70
Towers & OHL Cables & el. Wires
and distribution
In bn € In bn €
Smart Grids promise attractive market potential

ƒ Siemens expects to win Smart Grid orders

worth >€6 billion by 2014
€6 bn
ƒ Siemens anticipates Smart Grid orders worth
nearly €1 billion in the current fiscal year

ƒ By 2014, Siemens aims at winning a more

than 20 percent share of the approx. 30-
billion-euro market being addressed by the
company

ƒ Siemens plans 7-percent annual growth for its

Smart Grid business

ƒ U.S. government plans investments of roughly

€3 billion in Smart Grids as part of its
economic stimulus program
30-billion-euro market
Solutions for a sustainable energy system
along the entire energy chain

'Efficiency'

CCS ƒ Fossil CCS Energy

Up- Mid- Down- ƒ Wind

Mix
stream stream stream
Oil & Gas
ƒ Solar

ƒ Nuclear
Smart
Smart Smart Grid Consumption
Generation

Intelligent Energy System

 Greater efficiency using electricity
rather than fossil fuels for end applications

All-electric solutions:
Traditional
concepts:
Central power generation e.g.
Oil & Gas Gas turbine direct drive of
by CCPP and all drivers e-motors
compressors and pumps
with additional utility power generation
Efficiency improvement: 20% → 50%

Solution: Electronic coupler

Traditional
concepts:
Ship-to-shore While in harbor, ships use
Coupler connects harbor power
grid with ship.
on-board diesel engines
connection burning heavy oils in inefficient
Result for container ship in Germany
operating mode
CO2 reduction: 13 t CO2 per day
Solution: Electric car

Traditional Efficiency increase by recuperating

Car concepts: braking power and more efficient
drive train. Assuming CCPP (60% eff.):
Internal combustion Engine
Efficiency improvement: 25%→>50%

Solution: Heat pump

Traditional
Leveraging ambient or geothermal
concepts:
Heating heat assuming a seasonal performance
factor of the heat pump of 3.5 and
Fossil fuel burner (e. g. gas)
CCPP (60% eff.) results in
Efficiency increase: >100%!

CCPP = Combined Cycle Power Plant

 Paradigm shift in power grids:
The new age of electricity
19th Century
Electrification of society
'Age of Coal'
Unsustainable energy system
'Generation and load closely
coordinated'
Supply island with
stochastic load
Fossil energy source,
hydro
No environmental concerns
1) ICT = Information and Communication Technologies
20th Century
Extensive generation of
electrical energy
'Age of fossil fuels'
Unsustainable energy system
'Generation follows load'
Integrated network, central
generation, load stochastically
predictable, unidirectional energy flow
Fossil energy sources,
hydro, nuclear
Early 21st Century
Shift to new age of electricity
Challenges require rethinking:
1.) Demographic change 2.) Scarce resources
3.) Climate change
'Energy system shifting'
Increasingly decentralized,
fluctuating generation
'consumer' becoming 'prosumer'
Fossil energy sources,
hydro, nuclear, biomass,
wind, solar
Environmental awareness
End of 21st Century
The new age of electricity
Electricity will be the energy source for most
applications in daily life.
Î Integrated energy system
with power grid as backbone
Sustainable energy system
'Load follows generation'
Central + decentralized generation,
intelligence with ICT1,
bi-directional energy flow
Renewable energy sources
(solar, wind, hydro, biomass),
'clean' coal, gas, nuclear
 Smart Grid – The three core components

Smart
Smart
1.
Meters
Meters

Grid
2.
Intelligence

3. Utility IT
Siemens is solidly positioned in all parts
of a Smart Grid

Smart Utility IT
Grid

ERP: Energy4U
ƒ Billing
Smart ƒ Call center
Smart
Generation ƒ CRM Consumption
ƒ ...

Solar power
System Integrity Advanced Asset Distribution Meter Data
Protection Energy Mgmt Management Management Management
System (EMS) Building
Systems (DMS) (MDM)
Wind power intelligence

Grid Intelligence Smart Meter

Distributed Residential
Substation Distribution
energy HVDC & Condition Smart loads
Automation & Automation
resources FACTS Monitoring Meters
Protection

E-cars
E-cars
Transmission grid Distribution grid Arbon Energy
'Greenster'
Visible expression of the revolution in the power
grid: Individual electric mobility
 Siemens is moving ahead in leading positions

1 Worldwide goals for efficiency and environmental care

Dynamic
market
2 Goals for Smart Metering (e.g. introduction in Germany in 2010)

3 Siemens Energy = No. 1 for energy automation Siemens

set-up
for
4 New: AMIS Smart Metering solutions
Smart Grids

5 New: Utility IT: Strengthen portfolio with Energy4U

Siemens is on the optimal course with Smart Grids

Smart Grids and individual
mobility in a new age of
electricity

Smart Grid Press Conference

Salzburgring, September 4, 2009

Wolfgang Dehen
CEO Energy Sector
Member of the Managing Board,
Siemens AG
© Siemens AG 2009
Energy Sector