Myth vs. Reality: The Viability of Renewable Energy Siemens
Industry, Inc. Infrastructure & Cities
Slide 2
Siemens AG 2012 Energy Quiz 1.What percent of California
electrical demand will be provided by Solar by 2035? One Percent
2.Which kills more birds, wind turbines or house cats? House Cats
The first large wind farm in CA kills about 100 raptors a year.
Since then, turbines are mounted higher with larger blades,
avoiding bird flight paths.
Slide 3
Siemens AG 2012 Truths and Myths TRUTH: Without significantly
higher energy prices, energy demand will continue to growespecially
in developing countries. Global Primary Energy use will DOUBLE by
2100 Economic expansion of developing countries such as China and
India will drive the steep increase in energy use Even with Policy
Measures to Increase Energy prices, and Energy Efficiencies by
customers, 50% more energy will be required by 2100
Slide 4
Siemens AG 2012 Truths and Myths MYTH: The world is running out
of fossil fuels. Fossil fuels will supply nearly 80 percent of
global primary energy demand in 2100 Renewable electricity
production will expand nearly tenfold by 2100 Non-fossil fuel use
grows from 13 percent to 20 percent by 2100 Even this rapid
expansion of Renewable Energy will not be enough to significantly
displace Fossil Fuels
Slide 5
Siemens AG 2012 Truths and Myths TRUTH: Continued reliance on
fossil fuels is altering Earth's energy balance. The risks of
extreme temperature changes and subsequent impacts will grow
substantially unless concrete actions are taken. The probability of
the globally averaged temperature increasing by 5 C or more by 2100
is about 50 percent with no Climate Policy Catastrophic impacts
many scientists suggest will occur with even 3C or 4 C of warming
Federal and International Agreements are targeting no more the 2C
of warming Immediate Action is Required
Slide 6
Siemens AG 2012 The State of California Gov. Jerry Brown
uttered a secular prayer for a miracle that would make California a
model of carbon- free energy. Both Brown and predecessor Arnold
Schwarzenegger contend that taking the global lead in reducing
greenhouse gases will pay economic dividends - someday - as the
state becomes a leader in developing solar panels and other
equipment to reach its goals.
Slide 7
Siemens AG 2012 Regulatory Requirements California Renewables
Portfolio Standard 2006: Senate Bill 107 20% Renewable Energy by
2010 California Global Warming Solutions Act of 2006 (AB 32) 33%
Renewable Energy by 2020 (GHG reduction to Goes into effect Jan. 1,
2013
Slide 8
Siemens AG 2012 Comments New supply-side capacity isnt the only
way to meet future energy demands. Price-induced policies can
actually reduce overall energy demand in the U.S. in tandem with
gains in efficiency Allison Crimmins MIT Joint Program Economics
will play a deciding role in what unfolds. For alternative
technologies to be chosen among the mix of energy sources, they
must be able to compete in the energy market. The future costs of
energy technologies and the ever-changing price of conventional
energy sources will determine the success of alternatives over
conventional, fossil fuel-powered technologies. John Reilly MIT
Joint Program
Slide 9
Siemens AG 2012 Cap and Trade Climate Policy Proposals Cap and
Trade Program Lower Cost Would not significantly reduce Emissions
Renewable Portfolio Standard (RPS) only Policy Requiring Renewables
would prevent less costly options from being utilized Policy is
picking Renewable Energy winners Political, with little concern for
costs to taxpayers and electricity consumers Cap and Trade combined
with RPS Decreased Carbon Prices Higher Welfare Costs U.S.
Currently using this methodology based on Market Higher Costs than
just Cap and Trade by Itself
Slide 10
Siemens AG 2012 CA Renewable Policy Currently the State of CA 9
th Highest Utility Cost in the Country, 50% Higher that average PUC
has approved almost every renewable energy contract filed by the
utilities, even when contracts rate poorly on a least-cost,
best-fit basis CA Utilities have paid over $6B in above market
power costs (with more to go), financed by the taxpayers in the
utilities ever increasing rates
Slide 11
Siemens AG 2012 Public Opinion Whats the Public Say? It would
be tragically ironic if we couldn't build solar panel factories
because our low-carbon, high-cost power rates drive investment
elsewhere. Dan Walters- SVG Tribune What this boils down to is no
matter which way we go in California, when it comes to power usage,
we are going to get nailed to the rate wall. I say join the race to
Solar power, at least you get some return by using the subsidies
you paid for in your electric bill. Otherwise you get no return on
the money you are paying out each month. Comment by Condondeb at
1:26 PM November 09, 2011
Slide 12
US and Canada Green City Index Siemens AG 2011. All rights
reserved. Comparing the environmental performance of 27 major US
and Canadian cities A research project by Siemens in cooperation
with June 2011
Slide 13
Siemens AG 2012 The US and Canada Green City Index evaluates 31
indicators in 9 environmental categories
Slide 14
Siemens AG 2012 US and Canada Green City Index: Results
Slide 15
Siemens AG 2012 Strong performance in the Index is influenced
by several factors Wealth helps Comprehensive and long-term
planning matters Involving the private sector and public pays off
Cooperation with private sector and NGOs very effective #1 San
Francisco has been a trailblazer in partnering with the private
sector on innovative green initiatives Best performing cities have
comprehensive sustainability plans that encompass every aspect of
creating a greener future (energy, transport, water, waste,
planning, etc.) Cities that have adopted early to address
environmental challenges also score better Sustainability should
become an integral element in the city planning Higher income
enables cities to make environmental investments with higher costs
and longer time horizons However, wealth is not a prerequisite for
good performance: e.g. Vancouver has the 4th lowest GDP/capita, but
scores 2nd overall
Slide 16
Siemens AG 2012 Green Jobs
Slide 17
Siemens AG 2012 Green Job Trending Orange County
Slide 18
Siemens AG 2012 ~32% life cycle cost of a building is consumed
in energy 80% 20% Operation/RenovationDemolition Energy 40%
Operation cost 60% Operation cost 60% Design Build Energy cost 40%
Lifecycle costs Cost Years Energy typically one of the highest
operating costs Rising prices can have tremendous impact on bottom
line Impacts core business as budget/investments are prioritized
Your Challenges: Life cycle costs associated with energy
Slide 19
Siemens AG 2012 Building Optimization Programs: Energy Services
Continuous Optimization Energy supply Energy and operations
analysis Facility optimization Energy Procurement Rate & Tariff
Optimization EMC & Remote Energy Analysis Benchmark Report
Energy Check-Up Budgeting & Forecasting Facility Audits
Facility Improvement Measures Improved facility performance
Improved occupant comfort Environmental goals and targets Energy
costs and consumption Improved budget management and energy
forecasting Energy Services help minimize energy consumption and
its environmental impact by further optimizing building and
equipment performance
Slide 20
Siemens AG 2012 Power Trends Central Plants Economies of Scale
Traditional Large Central Power Plants Located Near Resource Used
to Create Energy Coal Power Plants built near Collieries
Hydroelectric near Water Source Etc Large Transmission Costs to
reach consumers Plants are Reliable, most failures are in the
Electric Distribution Grid Traditional Central Plants cause Heavy
Pollution Transmission Losses require more power generation for
less energy supplied
Slide 21
Siemens AG 2012 Pay Escalating Market Rates
DistributionTransmissionGenerationConsumption Central Plant: Power
from the Utility
Slide 22
Siemens AG 2012 Power Trends Distributed Generation Development
of Distributed Generation arose out of: Environmental Concerns of
Central Plant Power Generation Aging Central Plants and Power
Distribution Systems Cost Savings of Mass Production of Smaller
Appliances vs. Heavy Manufacturing and On-Site Construction of
Central Plants Higher Overall Complexity and Costs of Central
Plants due to Regulatory Oversight and Air Quality
Restrictions
Slide 23
Siemens AG 2012 Small Scale Power Generation Technologies
(3kW-1MW) Wind Turbine Solar PV Microgrid Microturbine Fuel
Cell
Slide 24
Siemens AG 2012 Energy Conservation Renewable Rates Net
Metering DistributionTransmission Utility Generation Customer
Generation Behind the Meter Distributed Generation: Hedge Your
Energy Spend
Slide 25
Siemens AG 2012 Smart Consumption: Buildings owners positioned
to benefit through cost savings Reduce the kWh consumed and the kW
demand peak Saving 20% 40% energy consumption is possible Peak
reduction of 10% 20% is possible 1 Reduce the spend of electricity
bills Saving 10% 30% energy cost is possible using Renewable Energy
to lower cost per kWh 2 Reduce demand and peak load 24h Demand 0h
Consumption to grid Shed, shape and shift demand Demand Consumption
to grid Supply 24h 0h Demand Response - Demand response refers to
the reduction of customer energy usage at times of peak usage in
order to help address system reliability
Slide 26
Siemens AG 2012 Financing Environmental Solutions
Energy-efficiency through various financial offerings: Municipal /
Tax-Exempt Leasing Loans Capital Leases (On/Off Balance Sheet)
Construction loans - Term and Revolving Working Capital Credit
facilities Power Purchase Agreements
Slide 27
Siemens AG 2012 Supply Side Financing
Slide 28
Self-Funded Energy Efficiency A methodology of financing a
traditional capital improvement project where savings pay for
improvements and no upfront capital is needed
Slide 29
Siemens AG 2012 Questions? Industry Wastewater Treatment
Landfill Gas Biomass Solar Wind Financing