Energy Trends – Siemens Technology Outlook · Theoretical floor space required for the electricity demand – World, EU25, Germany Folie 14 01 Dec 2008 Michael Weinhold Energy Sector

Energy Sector© Siemens AG 2008© Siemens AG 2008

Energy Sector

Energy Trends –Siemens Technology Outlook

Dr. Michael Weinhold CTO Siemens Energy SectorAlpha Summit Europe 2008Munich Airport, December 4th, 2008

Energy Sector04 Dec 2008 Dr. Michael WeinholdFolie 1 © Siemens AG 2008

The energy system evolves from a linear system into a networked and electricity driven system


Overview

1. Global challenges and market requirements

2. Technology & innovation along the energy conversion chain

3. Technology trends for a future energy system


The Sector Energy strategy for sustainable growth:Trendsetter based on market needs

More efficient, reliable and secure grids

Increased use of distributed and renewable energy resources.

Distribution within congested areas / mega cities.

Bulk power transmission over long distances

Highly efficient and clean fossil fuel power plants

Urbanization

Scarcity of natural

resources

Environmental awareness

Need for more energy

Open markets


The three pillar for a sustainable energy system

Sustainable Energy System

Environmental Protection Economic Efficiency

Security of Supply


Requirements of the energy and power industry

Customers’requirements

Key productfeatures

Security of Supply

Reliability and flexibility

Good load tracking and cycling capabilityDispatchabilityFuel flexibility and availabilityLow start-up timesGasificationSecure grid operation

Economic Efficiency

Low life-cycle costs

High efficiencyHigh qualityHigh availabilityHigh reliabilityLow O&M and service costsShort delivery timeLow investment costs

Environmental Protection

Compliance withenvironmental standards

Reduction of air pollutionAvoid the use of hazardous substancesCO2 emission reductionCO2 capture and renewables

Society’srequirements


Overview



3. Trends for a future energy system


Privileged feed-in of renewables

Renewables:Wind powerSolar thermal powerOther

Technology options for tomorrow’s low-emission and secure power mix

Intermediate-load/peak-load for load leveling

Gas-fired combined cycle power plants:

High efficiency Low emissionsFast startup

Low-emission base-load

Coal-fired power plants:

Nuclear power plantsHydro power plants

Clean, high-efficiency STPPIGCC pre-combustion capturePost-combustion capture for retrofitting and new plants


Transmission of large electricity volumes with minimum losses Reliable and efficient Distribution

High Voltage Direct Current Transmission (HVDC)Optimal capacity of lines availablewith energy automation systemsReactive power compensation

Gas Insulated Switchgear (GIS)Gas Insulated Line (GIL)Low-noise transformerPower electronics-basedtechnologies – such as medium-voltage, back-to-back coupler

Technologies for low-loss power transmissionand distribution


Overview



3. Trends for a future energy system


Electrical Energy is the key enabler for an integrated energy system

Generation and utilization of electrical energy is often more efficient than direct utilization of primary energy sources.

1

For maximum overall efficiency and minimum carbon footprint infrastructure-overarching (holistic) solutions are required.

3

Electricity networks allow the efficient integration of a wide range of renewable energy sources.

2

The usage of electrical energy will increase much faster than the overall energy consumption.


Renewables are gaining in importance –but fossil fuels will continue to be the backbone

Power generation (in TWh1) )

2005 2030

18,000

35,000

2.7 % p.a.

Fossil fuels

64%66%

6%

16%

15%

20%

40%

Gas22%

Hydro15%

Nuclear13%

Oil3%

Coal39%

55%28%

16%

Renewables(excl. hydro)

in 2005: 400 TWh(2% of total)

BiomassWind

Geo-thermal

Solar 1%

Source: Siemens PG GS4 Scenario most likely 1) Terrawatt-hours

Renewables(excl. hydro)

in 2030: 3,200 TWh(9% of total)

Geo-thermal

Solar

13%

51%

34%Biomass

6%

Wind

Others 1%


Smart Grid enables the optimized coordination of the electrical energy system


Available renewable energy sources

Quelle: Vortrag Claus Peter Simon, 15.11.2007, Berlin


Theoretical floor space required for the electricity demand – World, EU25, Germany

Energy Sector01 Dec 2008 Michael WeinholdFolie 14 For internal use only©Siemens AG 2008

Source: DLR 2005


Wind> 20...40 GW

Hydro> 10..30 GW

2000 km

1800 km

Load CentresSolar > 10..20 GW

2000 km

Hydro> 30...50 GW

Integration of Renewable Energies

Worldwide most powerful wind energy plant mass-producedWind off-shore plant with capacity of 3.6 MWHigh-efficient turbines for solarthermal power generation

Siemens Products and SolutionsIntegration of renewable energies via HVDC PLUSEnergy lines with UHVAC and UHVDCGas-insulated lines (GIL)

Use of hydro power in China Use of renewable energy in Europe


Together we can start right now developing the future - because the tools are already there!

Smart Grid Application at Decentralized Generation CO2 emissions are constantly

on display

wireless sensors and smart metering coupled to load

management and market driven energy supply software

car-parking for plug-in vehicles, buy or sell electricity shaving

peak loads

large centralized power plants supply the majority of power demand large and very small generation

plants need to be managed in parallel

storage plants buffer fluctuating generation

energy corridors underground by Gas

Insulated Lines or cables (DC or AC)


The future energy system centers around electricityCells and T&D network (incl, „Super Grid“) form the „Smart Grid“

Cells may be “Micro Grids” “Super Grid”

Generation

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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.

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Documents

Energy Trends – Siemens Technology Outlook · Theoretical floor space required for the electricity demand – World, EU25, Germany Folie 14 01 Dec 2008 Michael Weinhold Energy Sector