20120906 Weinhold Fingrid V05

Integration of Renewable EnergyChallenges and SolutionsProf. Dr. Michael WeinholdCTO Siemens Energy SectorHelsinki September 06, 2012Page 1 September 6, 2012 Michael Weinhold© Siemens AG

Paradigm shift in power grids:The New Electricity Age19th CenturyCentury of Pioneers20th CenturyCentury of central Power Plants21st CenturyCentury of Prosumers?No environmental concerns : Environmental awareness :Unsustainable energy systemSustainable energy systemElectrification of society“Age of Coal”Extensive generation ofelectrical energy”Age of fossil fuels”Transition periodChallenges require rethinking:1.) Demographic change2.) Scarce resources3.) Climate changeThe New Electricity AgeElectricity will be the energysource in an integratedenergy system“Generation and loadclosely coordinated”“Generationfollows load”Shift of energy system“consumer” becoming“prosumer”“Load followsgeneration”CoalhydroCoal, gas, oil,hydro, nuclearCoal, gas, oil,hydro, nuclear,biomass, wind, solarRenewable energy sources(solar, wind, hydro, biomass, etc.),“clean” coal, gas, nuclearPage 2 September 6, 2012 Michael Weinhold© Siemens AG

Fact – Challenge – SolutionFact: The energy system is turning into a complexpower matrix as the share of renewable growsMain challenge: Secure an economic, reliableand sustainable energy systemOutlook: Gas as backbone, combined withcompetitive renewables and efficient gridsPage 3 September 6, 2012 Michael Weinhold© Siemens AG

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From sun to grid: Proven in-housecomponents along the entire value chainTransformerPlant monitoringE-HouseBoxesSupportstructuresSecuritySystemSolar panelsGrid integrationPage 5 September 6, 2012 Michael Weinhold© Siemens AG

PV, CPV and CSP complement each otherSolar Application FieldsDifferent solar technologies complementeach other …Photovoltaic Mainstream: broadapplication (roofs,ground-based) Available in all powerratingsConcentratedPhotovoltaic Only for high DNI sites Significantly higher celland module efficiencythan mainstream PV Semprius holding worldrecordCrystalline & thin film CPV & CSPHigh GHI 1) High DNI 2)Use of diffuse light possible Direct irradiationConcentratedSolar Power Only for high DNI sites Only suitable for highpower ratings >ca.50MW Supplements steamcycle power plants usingcoal, oil, …1) Global Horizontal Irradiance2) Direct Normal IrradiancePage 6

Concentrated solarthermal power plants –Dispatchable solar power in direct irradiation regionsSolar fieldReceiverHeat transfer fluid systemTurbineHeatstorageHeat exchangerPower blockGeneratorPage 7

Photovoltaics plants in any size:Solar peak power production at decreasing costTransformer~ =20 MWp, Beneixama (Spain), 2007Developer&EPC: CitySolarInverterPV fieldModulesMain success factors■ Massive price reduction in PV modules■ Generation curve matches peak load demand curve■ Works also in diffuse light and low irradiation level■ Simple and quick to build, simple to operateFuture role3,3 MWp, Casale (Italy), 2009Copyright: Statkraft ASPage 8■ Main solar power contribution (utility size + roof-top)■ Allows decentral generation as well as “Desertec”-type plants

31 MWp Photovoltaics Plant(Le Mées, France, 2011)Power for 12.000 homes112.000 modulesin 6 fields;Construction:10 monthsCommissioned:Nov 2011Page 9

PVJuly 31, 2012:29.7 GW of PV installed in>1 Million Power Plants inGermany!Quelle: Bundesnetzagentur 2012Page 10 September 6, 2012 Michael Weinhold© Siemens AG

Electricity production of a 314 kWp PV-installationnear Erlangen, GermanySunny day in April: 1,9 MWhCloudy day in April: 1,2 MWhPage 11 September 6, 2012 Michael Weinhold© Siemens AG

Power production by PV in Germany in May 2012:PV delivered approx. 10% of monthly electricity demand22.4 GW recordPV feed-inSource: http://www.ise.fraunhofer.de/en/downloads-englisch/pdf-files-englisch/news/electricity-production-from-solar-and-wind-in-germany-in-2012.pdfPage 12 September 6, 2012 Michael Weinhold© Siemens AG

Large-scale PV system prices:Average utility-scale system price trends 2011-20(BNEF 01/2012) €/W2,450,140,320,380,231,382,040,140,320,380,161,041,670,130,300,370,150,721,560,130,290,350,140,651,460,130,281,390,120,270,340,33ModuleInverterBalance of plant EPCOtherDummy1,320,120,261,261,201,151,110,120,11 0,110,26 0,110,25 0,24 0,240,32 0,31 0,30 0,30 0,290,13 0,12 0,110,590,10 0,100,54 0,090,50 0,090,47 0,44 0,41 0,382010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020Source: Bloomberg NEF (01/2012) - utility-scale system prices world (1 USD = 1,35 EUR)Page 13 September 6, 2012 Michael Weinhold© Siemens AG

The Energy world is in transformation towards andintegrated energy system – more volatile and complexBeforeAfterwardspowerinformationPage 14 September 6, 2012 Michael Weinhold© Siemens AG

Fact – Challenge – SolutionFact: The energy system is turning into a complexpower matrix as the share of renewable growsMain challenge: Secure an economic, reliableand sustainable energy systemOutlook: Gas as backbone, combined withcompetitive renewables and efficient gridsPage 15

European countries excel in veryreliable power suppliesGrid security in various countriesNon-availability in min/a (2009)1.32052637516616GermanyAustriaItalyFranceUSAChinaPage 16

Electricity prices in the EU in 2012 are already higherthan in the USA, China and IndiaUSAGermany25,3China5,08,812,43,49,011,214,1Taxes &EEG9,15,9IndustryResidentialIndustryResidentialIndustryResidentialElectricityprices in€ct/kWhIndiaEurope (EU27)13,57,923,88,517,829,4Minimum (Bulgarien)Average (EU27)Maximum (Dänemark)5,0Industry4,0ResidentialEEG: Erneuerbare Energie GesetzIndustryResidentialPage 17

Fact – Challenge – SolutionFact: The energy system is turning into a complexpower matrix as the share of renewables growsMain challenge: Secure an economic, reliableand sustainable energy systemOutlook: Gas as backbone, combined withcompetitive renewables and efficient gridsPage 18 September 6, 2012 Michael Weinhold© Siemens AG

Power Generation: Efficiency & Flexibility will be keyWhy Energy Storage?Page 19 September 6, 2012 Michael Weinhold© Siemens AG

Power plant Ulrich Hartmann in Irsching –First CCPP with H-class gas turbine New generation of combinedcycle power plants with newgas turbine SGT5-8000H World record efficiency rating of60.75% (net) Consumes one-third less naturalgas per kilowatt-hour generatedthan the average for currentlyinstalled CCPPs worldwide Output of more than 578 MW More than 500 MW can be putonline in only 30 minutes Commercial start in the summerof 2011Page 20 September 6, 2012 Michael Weinhold© Siemens AG

SGT5-8000H / SCC5-8000H:World record in efficiencyThe Combined CyclePower Plant in Irsching(Germany) is the mostefficient globally with themost powerful GasTurbinePage 21 September 6, 2012 Michael Weinhold© Siemens AG

Wind power –Greater efficiency with higher capacityonshoreOffshore≈ 130-150 m157 m135 m200 m≈ 100 m≈ 80-100 m≈ 22 m≈ 35 m≈ 30-40 m≈ 42-62 m≈ 60 m1987 - 19901st generation30 - 165 KW1993 / 19942nd generation225 - 500 KW1996 / 19973rd generation1,000 – 1,500 KW2002 / 20034th generation2,500 – 3,500 KWCologne CathedralToday5th generation6,000 KWPage 22 September 6, 2012 Michael Weinhold© Siemens AG

Wind power –Innovation todaySiemens Wind Turbines Larger diameter (bladelength) for more productionat moderate wind speeds Higher performanceoffshoreFloating turbines for deeper water Reduced visual impact Higher production in strongand stable wind conditionsDirect Drive 2.3/3.0/6.0MW no gearbox losses Lower weight Reducedmaintenance 6 MW turbinewith new blade designIntegral Blades ® "State-of-the-art" blade:Excellent power, low noise High reliability (no joints)Page 23 September 6, 2012 Michael Weinhold© Siemens AG

The coming 154 m rotor for the 6.0 MW is a largepiece of equipment …Here with an Airbus A380Page 24 September 6, 2012 Michael Weinhold© Siemens AG

Pumped Hydro Storage Capacity of Germany compared towind-energy in-feed in north-eastern GermanyVattenfall High - Voltage Grid (Februar 2008)Pumped Hydroin Germany: 40 GWhPumpspeicherin Deutschland7000 MW40.000 MWh540GWhIfR, TU-BraunschweigQuelle: VDEPage 25 September 6, 2012 Michael Weinhold© Siemens AG

Available storage technologies cover differentrequirements to power and capacitySeconds Minutes Hours Days/ Months1 kW 10 kW 100 kW 1 MW 10 MW 100 MW 1.000 MWSource: Study of DNK/WEC “Energie für Deutschland 2011”, Bloomberg – Energy Storage technologies Q2 2011Page 26Li-IonNaSBatteriesSupercapacitorCAES – Compressed Air Energy StorageFlow-BatteriesFlywheelstorageSuperconductivecoildiabaticH2/ Methan(stationary)CAESadiabatic1PowerqualityPumpedHydro2Operatingreserve43Energy reserveTime shiftTechnologyChemical StorageElectrochemical StorageMechanical StorageElectrical StorageMaturityCommercialEarly commercialDemonstration

Pump Storage Capacity of Germany (40 GWh max) andequivalent chemical energy (fuel) storageThe 9 biggest Pumped HydroPlants in Germany:With respect to stored Energyequivalent cube of:Goldistahl:1060 MW, 8,5 GWhMarkersbach:1050 MW, 4 GWhWehr:992 MW, 6 GWh16 m: Diesel20 m: MethanolWaldeck II:480 MW, 3,4 GWhSäckingen:370 MW, 2 GWhHohenwarte II:320 MW, 2,1 GWh18 m: Ethanol166 m: (CH 4, 1 bar)230 m: (H 2, 1 bar)40 m: (H 2, 200 bar)Witznau:248 MW, 0,63 GWhErzhausen:223 MW, 0,94 GWhWaldshut:176 MW, 0,4 GWhQuelle: UBA- Datenbank, 2011Page 27 September 6, 2012 Michael Weinhold© Siemens AG

Power Transmission Solutionsin the Energy Conversion ChainGRID ACCESSHigh Voltage DirectCurrent Transmission (HVDC)Flexible AC Transmission(FACTS)Page 28 September 6, 2012 Michael Weinhold© Siemens AG

Unterschiedliche Power Electronics Herausforderungen erfordernindividuelle for High Voltage Antworten DC Transmission (HVDC)Page Seite 29 September November 2011 6, 2012 Michael Energy Story Weinhold© Siemens AG

Vision of the European off-shore Super Grid:Pioneering the high voltage DC GridFinnlandNorwegenNordseeEstlandIrlandDänemarkSchwedenOstseeLitauenLettlandGroßbritannienDeutschlandPolenRusslandNiederlandeBelgienFrankreichQuelle: European Wind Energy Association (EWEA) 2009/2010, Siemens2030: Offshore-Grid-Vision der EWEAexistierende Verbindung EWEA-empfohlene Netze bis 2020geplantEWEA-empfohlene Netze bis 2030wird untersuchtwird untersucht (EWEA-empfohlen)Multiterminal-Station/PlattformPage 30 September 6, 2012 Michael Weinhold© Siemens AG

Trans Bay Cable Project, USA 2010CustomerProject NameLocationPower RatingType of PlantVoltage LevelsSemiconductorsTrans Bay Cable LLCTrans Bay Cable ProjectPittsburg, CASan Francisco, CA400 MW85 km HVDC PLUSSubmarine Cable± 200 kV DC230 kV/138 kV AC, 60 HzIGBTEnergy Project of the YearASCE, March 2011Page 31 September 6, 2012 Michael Weinhold© Siemens AG

Do not forget the distribution gridsPage 32 September 6, 2012 Michael Weinhold© Siemens AG

Smart Grids:Integration of producers, consumers and ElectromobilityPage 33 September 6, 2012 Michael Weinhold© Siemens AG

Cost-efficiency towards three steps for anIntegrated Energy System1Optimization of the Energy Mix23Efficiency:Increase everywhere withelectricity as enablerSystemic Optimization: Connect electricity,heating/cooling, gas Pull cross-regional synergies Use existing infrastructuresPage 34 September 6, 2012 Michael Weinhold© Siemens AG

DisclaimerThis 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 currentexpectations and certain assumptions, and are, therefore, subject to certain risks and uncertainties. A variety offactors, many of which are beyond Siemens’ control, affect its operations, performance, business strategy and resultsand could cause the actual results, performance or achievements of Siemens worldwide to be materially different fromany future results, performance or achievements that may be expressed or implied by such forward-lookingstatements. For us, particular uncertainties arise, among others, from changes in general economic and businessconditions, changes in currency exchange rates and interest rates, introduction of competing products or technologiesby 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 iscontained in Siemens’ filings with the SEC, which are available on the Siemens website, www.siemens.com and onthe SEC’s website, www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially from those described in the relevant forward-lookingstatement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens does not intend orassume any obligation to update or revise these forward-looking statements in light of developments which differ fromthose anticipated.Trademarks mentioned in this document are the property of Siemens AG, it's affiliates or their respective owners.Page 35 September 6, 2012 Michael Weinhold© Siemens AG