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A nifty means of transport and mobile electrical storage ... - Siemens

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The future is electric, clean <strong>and</strong> quiet<br />

A <strong>nifty</strong> <strong>means</strong> <strong>of</strong> <strong>transport</strong> <strong>and</strong> <strong>mobile</strong> <strong>electrical</strong> <strong>storage</strong><br />

device in one: E-cars pick up speed<br />

Society, industry <strong>and</strong> politics can no longer ignore the subject <strong>of</strong><br />

electromobility, especially in view <strong>of</strong> the continuing problems posed by climate<br />

change, rising fuel prices <strong>and</strong> the global sales crisis in the automotive market.<br />

So there are good reasons why the idea <strong>of</strong> <strong>electrical</strong>ly driven vehicles is now<br />

being revived over a 100 years since they were first tested. New technical<br />

developments – in drive technology <strong>and</strong> batteries, for example – are imparting a<br />

further boost. However, this topic is also giving rise to totally new business<br />

segments <strong>and</strong> alliances that pose challenges for automotive manufacturers <strong>and</strong><br />

suppliers, the energy industry <strong>and</strong> policymakers. There is the question <strong>of</strong><br />

creating the necessary infrastructures (smart grids) as well as production <strong>and</strong><br />

“refueling”. They dem<strong>and</strong> innovative solutions: For instance, the electric<br />

vehicles should be able to store <strong>and</strong> return energy – <strong>and</strong> so act as load sinks in<br />

the event <strong>of</strong> overcapacities <strong>and</strong> also as sources <strong>of</strong> energy to help cope with<br />

peak loads in the network. <strong>Siemens</strong> addresses this trend with its ecological<br />

commitment <strong>and</strong> portfolio <strong>of</strong> products <strong>and</strong> solutions for electro<strong>mobile</strong><br />

applications.<br />

The automotive industry, associations <strong>and</strong> policymakers predict a thriving future for<br />

electromobility in general <strong>and</strong> specifically for the electric car. Under the German<br />

government’s “National Electromobility Development Plan”, more than a million<br />

electric vehicles are to be on the road in Germany alone by 2020 – a noble objective<br />

given that the technology is more than a 100 years old. Nevertheless, developers <strong>and</strong><br />

industry have yet to come up with a vehicle that is suitable for everyday use. That’s<br />

because up to now the batteries have simply been too expensive <strong>and</strong> heavy for mass<br />

production.<br />

Despite research into alternative propulsion concepts, such as hydrogen <strong>and</strong> fuel<br />

cells, development <strong>of</strong> <strong>storage</strong> technologies for electric drives continued. And with<br />

pleasing results – after all, all large manufacturers are now busy designing such<br />

vehicles <strong>and</strong> making them suitable for mass production <strong>and</strong> use. The first results<br />

were recently presented to the public, for instance at the Geneva Auto Salon or the<br />

IAA motor show in Frankfurt. Daimler, for example, is planning series production <strong>of</strong> an<br />

electric version <strong>of</strong> its Smart microcar as <strong>of</strong> 2012 <strong>and</strong> is aiming for tens <strong>of</strong> thous<strong>and</strong>s to<br />

roll <strong>of</strong>f the belt every year. The battery will be rechargable from a simple mains socket<br />

<strong>and</strong> enable a range <strong>of</strong> 115 kilometers.<br />

Intelligent <strong>and</strong> environmentally friendly: A rosy – <strong>and</strong> green – future<br />

The government’s goal <strong>of</strong> a million electric cars on German roads in ten years’ time<br />

happily <strong>means</strong> the additional electricity required will rise only slightly, according to the<br />

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country’s Renewable Energy Federation (BEE). This extra consumption can even be<br />

covered without problems through the growth in renewable energies. For example:<br />

Electricity generated from renewable energies increased from 2007 to 2008 by some<br />

4.3 billion kilowatt-hours – more than twice the total consumption by the electric car<br />

fleet forecast by the government in 2020.<br />

However, there is the further challenge <strong>of</strong> developing workable business models for<br />

the future. After all, selling electricity for electric vehicles just does not pay <strong>of</strong>f given<br />

their energy efficiency <strong>and</strong> current energy prices – especially when you also consider<br />

the enormous investments required to create the necessary infrastructure.<br />

Another focal aspect is currently a power supply system to flank everything. After all,<br />

the system <strong>of</strong> the future – the smart grid – must be intelligent <strong>and</strong> flexible, otherwise it<br />

will not be able to integrate the large volumes <strong>of</strong> fluctuating wind <strong>and</strong> solar electricity<br />

<strong>and</strong> the growing number <strong>of</strong> small, local power generators. Key technologies within<br />

these smart grids will include smart meters <strong>and</strong> virtual power plants to contribute<br />

intelligence to the medium- <strong>and</strong> low-voltage grids. They will meet future requirements<br />

as regards dynamic market activity, forecast mechanisms <strong>and</strong> quick balancing.<br />

The car as a source <strong>of</strong> revenue<br />

In general, it is always helpful to look further afield <strong>and</strong> to think about more than just<br />

the car itself when it comes to the issue <strong>of</strong> electromobility. “Looking to the near future,<br />

we have to take all possible <strong>electrical</strong>ly driven vehicles into account. Such drives<br />

already play important roles in various specialized areas, such as at warehouses or<br />

airports,” says Christian Lechler, Account Line Manager at <strong>Siemens</strong> IT Solutions <strong>and</strong><br />

Services – Industry, Energy, Healthcare. “As far as cars <strong>and</strong> trucks are concerned,<br />

the purely electric drive is not all that important at present – unlike the hybrid-electric<br />

drive.”<br />

“A key factor in our commitment is for our developments <strong>and</strong> <strong>of</strong>fers to keep pace with<br />

how society thinks <strong>and</strong> acts green,” notes Markus Zahnjel, head <strong>of</strong> the Car<br />

Electronics Automotive segment at <strong>Siemens</strong> IT Solutions <strong>and</strong> Services. “We mainly<br />

focus on applications that relate to driving, but also ones above <strong>and</strong> beyond that. One<br />

example is the use <strong>of</strong> vehicles or entire fleets as load sinks, i.e. a sort <strong>of</strong> electricity<br />

store: When there is too much energy in the grid, it can be delivered to the<br />

electro<strong>mobile</strong>s. If the vehicles no longer require it or need a lower quantity at a<br />

specific time, the energy can be fed back into the grid, possibly even at a pr<strong>of</strong>it to the<br />

car owners, for example if there happens to be a shortage <strong>of</strong> electricity. Existing fleets<br />

where uniform conditions predominate are currently suitable for such energy<br />

brokering models. However, commuters with their set routes <strong>and</strong> times at which they<br />

travel, as well as second cars, which are normally not used for long trips, are potential<br />

targets.”<br />

The basis for such models is networking <strong>of</strong> the vehicles with the infrastructure – for<br />

instance the smart grid, which can also be used as a tool for communication. Thanks<br />

to them, the e-cars are informed <strong>of</strong> the current electricity price by the network<br />

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operator <strong>and</strong> then decide independently whether to buy or supply it, i.e. feed it back<br />

into the grid – naturally always taking into account the distance left to travel <strong>and</strong> the<br />

battery power required for it. It is also conceivable for tomorrow’s e-cars to utilize the<br />

information in the vehicle owner’s calendar or the destination in the navigation device<br />

to decide on the best strategy.<br />

“Charge her up, please”<br />

What is now needed is innovative ideas <strong>and</strong> actions, with a focus on further feasible<br />

<strong>and</strong> potential components that will make a business model for electromobility<br />

workable worldwide. Zahnjel has a quick response to how using vehicles as load<br />

sinks when there is too much energy in the grid <strong>of</strong>fers further benefits apart from the<br />

monetary aspect: “Renewable sources, such as wind <strong>and</strong> solar power, deliver energy<br />

only on an irregular basis, which makes forecasting difficult. Electric cars with<br />

batteries are a highly promising <strong>means</strong> <strong>of</strong> being able to buffer or store surplus<br />

capacities.” The power grid itself cannot assume this function since it is a finely<br />

balanced system in which supply <strong>and</strong> dem<strong>and</strong> must always be exactly in equilibrium,<br />

otherwise the frequency <strong>of</strong> the alternating voltage deviates from the prescribed 50<br />

hertz: It falls when dem<strong>and</strong> is too high <strong>and</strong> increases when there is an excess supply.<br />

That would result in damage to the connected consumers, such as PCs, machines,<br />

motors or generators.<br />

The following situation illustrates why such load sink models are a sensible<br />

alternative: Excess supply is a problem because German network operators are<br />

compelled under the Renewable Energy Act to give preference to electricity from<br />

renewable sources when feeding power into their grid. If there is a large supply <strong>of</strong><br />

renewable energy, conventional power plants have to be shut down.<br />

The upshot may be grotesque consequences. If there is too much wind, the surplus<br />

energy must be dumped at giveaway prices on Leipzig Energy Exchange – in the<br />

worst case at a negative price. However, some operators prefer to accept that rather<br />

than submit to the high cost <strong>and</strong> effort <strong>of</strong> shutting down their plant. This is where ecars<br />

come in: If they are connected by cable to the power grid, their batteries can be<br />

used as local buffer stores. Although their <strong>storage</strong> capacity is small compared with<br />

the amount <strong>of</strong> energy required in the grid, this shortcoming can quickly be made good<br />

thanks to their large number <strong>and</strong> current conduction with a power <strong>of</strong> up to 40 kW with<br />

3-phase charging per vehicle.<br />

Electric is now trendy – <strong>and</strong> green is the icing on the cake<br />

For decades, the car has been the object <strong>of</strong> a wide range <strong>of</strong> technical innovations <strong>and</strong><br />

above all the pride <strong>and</strong> joy <strong>of</strong> Germans. Now there is further potential as a result <strong>of</strong><br />

electromobility: Green <strong>and</strong> lifestyle aspects are gaining in importance as an incentive<br />

to buy e-cars. “The image <strong>of</strong> e-cars as sluggish, slow <strong>and</strong> ugly no longer holds true.<br />

Solely in terms <strong>of</strong> driving dynamics <strong>and</strong> acceleration, conventional gasoline-powered<br />

vehicles have long since ceased to be a match for e-cars in towns <strong>and</strong> cities. The<br />

new electric motorcycles, for instance, accelerate noiselessly from 0 to 50 in two<br />

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seconds,” states Zahnjel. “What’s more, you spare the environment – a factor that is<br />

increasingly swaying more <strong>and</strong> more customers. And, <strong>of</strong> course, it’s far cheaper<br />

driving on electricity than gasoline.”<br />

As regards the technology required for electro<strong>mobile</strong> models suitable for everyday<br />

use, most <strong>of</strong> it already exists <strong>and</strong> can be implemented. “The hardware is ready for<br />

use, even though prices still need to be squeezed down. The main challenges are to<br />

develop <strong>and</strong> implement a financially tenable business model <strong>and</strong> to interconnect the<br />

different systems. The fact is that a practicable overall e-car system st<strong>and</strong>s or falls by<br />

the integrated solution concepts that exist <strong>and</strong> not by the individual hardware<br />

components which various manufacturers put on the market at regular intervals,” is<br />

the consideration raised by energy expert Lechler.<br />

The conditions are therefore clearly defined. Now industry <strong>and</strong> policymakers must do<br />

their homework to prevent the e-car hype from bursting like a bubble – as has been<br />

the case with many other developments once feted as revolutionary – <strong>and</strong> passing<br />

the high-tech location <strong>of</strong> Germany by. “There is now a good foundation in the shape<br />

<strong>of</strong> a number <strong>of</strong> global funding programs,” reports Zahnjel. “They focus on research<br />

into the vehicles themselves, i.e. components, electric motor batteries or power<br />

electronics. There is also a series <strong>of</strong> field trials that for the first time are investigating<br />

<strong>and</strong> testing interaction between vehicles <strong>and</strong> the infrastructure <strong>and</strong> the underlying<br />

business models.”<br />

Lechler adds: “Basically, what we’re looking for at the moment is a real all-round<br />

talent. Nevertheless, the day will soon come within these many complex projects<br />

when all the general conditions are right <strong>and</strong> a feasible business case emerges.” It is<br />

not just customers who benefit from these developments, but also the chemicals<br />

industry (battery development) <strong>and</strong> <strong>of</strong> course the <strong>electrical</strong> engineering industry,<br />

automotive manufacturers <strong>and</strong> suppliers, utilities <strong>and</strong>, last but not least, the service<br />

sector – <strong>and</strong> that also includes IT service providers like <strong>Siemens</strong> IT Solutions <strong>and</strong><br />

Services.<br />

Basic infrastructure work: Electromobility in the smart grid<br />

Before the quiet <strong>and</strong> eco-friendly speedsters become a common sight on the roads,<br />

quite a bit still has to be done as regards the infrastructure for e-mobility.<br />

Interdisciplinary thinking across sectors is called for. After all, if we want<br />

electro<strong>mobile</strong>s to be available everywhere, at low-cost <strong>and</strong> suitable for mass use, we<br />

not only need a drive that works, but also an infrastructure to match: Only then will the<br />

vision become reality. “The infrastructures are crucial to success,” is Lechler’s<br />

conviction. “It’s not enough to create business models where electricity is sold at the<br />

pump like now at conventional service stations. That’s because the vehicles require<br />

only a very low amount <strong>of</strong> electricity, whereas the fueling process itself consumes a<br />

great deal <strong>of</strong> power. However, according to current estimates, power consumption –<br />

assuming a million electric vehicles on Germany’s roads – will increase by a mere<br />

one percent. That <strong>means</strong> selling electricity only to e-cars will not be a pr<strong>of</strong>itable<br />

business for utilities <strong>and</strong> also <strong>of</strong>fers too small an incentive for other sectors to invest.”<br />

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There are other challenges: The objective is to enable electro<strong>mobile</strong>s to be recharged<br />

anywhere – at the garage, the supermarket or <strong>of</strong>fice parking lot. A service provider is<br />

to bill for the electricity used. However, that can only work if every vehicle is identified<br />

unambiguously <strong>and</strong> all the data is exchanged securely <strong>and</strong> in real time between the<br />

on-board electronics <strong>and</strong> pump.<br />

Recent figures from the German Renewable Energy Federation (BEE) show what<br />

inroads renewable energies have made into everyday life in Germany: Almost every<br />

one-in-ten kilowatt-hour consumed in Germany in 2008 was generated from<br />

renewable energy (9.6 percent <strong>of</strong> total energy consumption). The positive effects <strong>of</strong><br />

renewable energies are particularly clear in economic terms: Last year alone, the cost<br />

<strong>of</strong> importing fuel was able to be reduced by 7.8 billion euros as a result. Moreover, the<br />

external costs for damage to the climate, environment <strong>and</strong> health as a result <strong>of</strong> power<br />

generation fell by 9.2 billion euros. “That <strong>means</strong> renewable energies reduced the<br />

financial burden on the economy <strong>and</strong> consumers by 17 billion euros last year,”<br />

calculates the BEE’s President Dietmar Schütz – a figure matching that for the first<br />

Economic Stimulus Package adopted by the German government in December 2008.<br />

Trends in the individual segments in the renewable energy sector in 2008:<br />

Power generation<br />

The power generated from renewable energy rose last year to 15.3 percent <strong>of</strong><br />

Germany’s total electricity supply (2007: 14.5%). Compared with 2007, the amount <strong>of</strong><br />

electricity produced from renewable resources increased from 89.6 to 95.1 billion<br />

kWh, or by 6.1%. Most <strong>of</strong> this – 40.3 billion kWh – again came from wind power<br />

(2007: 39.7), followed by bioenergy, which accounted for some 28.7 billion kWh<br />

(2007: 25.7). Hydroelectric power supplied 21.8 billion kWh (2007: 21.2).<br />

Photovoltaics contributed 4.3 billion kWh to the power generated in Germany, an<br />

increase <strong>of</strong> 40 percent over 2007 <strong>and</strong> by far the strongest growing segment. As in the<br />

previous year, geothermal energy made a contribution <strong>of</strong> 4 million kWh.<br />

Heat generation<br />

The share <strong>of</strong> heat supplied by renewable sources in Germany rose to 7.3 percent<br />

(2007: 6.8%). Heat generated from bioenergy, solar power <strong>and</strong> geothermal energy<br />

increased from 90.9 billion kWh in 2007 to 98.5 billion kWh, or by 8.4%. The lion’s<br />

share – 90.2 billion kWh – came from bioenergy (2007: 84.2). Solar power supplied<br />

5.3 <strong>and</strong> geothermal energy 3.0 billion kWh <strong>of</strong> heat in 2008, an increase <strong>of</strong> 20 <strong>and</strong> 30<br />

percent respectively over 2007.<br />

Bi<strong>of</strong>uel production<br />

The share accounted for by bi<strong>of</strong>uels in total fuel consumption slumped from 7.6<br />

percent in 2007 to 5.9 due to the discontinuation <strong>of</strong> tax breaks for biodiesel <strong>and</strong><br />

vegetable oils – a fall <strong>of</strong> 22 percent from 46.5 billion kWh in 2007 to 36.3 billion kWh.<br />

Only bioethanol recorded a significant increase: The amount <strong>of</strong> energy from it rose<br />

from 3.4 to 4.3 billion kWh.<br />

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Renewable energies are to cover almost half <strong>of</strong> Germany’s energy needs – 47<br />

percent – in 2020. This will also ensure a secure supply <strong>of</strong> power, even at times <strong>of</strong><br />

maximum dem<strong>and</strong>, according to the recent “Power Supply 2020“ development<br />

forecast presented by the BEE <strong>and</strong> the Renewable Energy Agency in Berlin at the<br />

beginning <strong>of</strong> 2009.<br />

The positive effects <strong>of</strong> renewable energies on climate protection, fuel imports <strong>and</strong> the<br />

labor market are considerable, according to the latest industry forecast: The sector is<br />

now making an extremely effective contribution to protecting the climate <strong>and</strong> in 2008<br />

reduced carbon dioxide emissions by almost 87 million tons alone in the area <strong>of</strong><br />

power generation. This figure is expected to increase to more than 200 million tons a<br />

year by 2020. There will be a corresponding fall in the need for fossil fuels,<br />

accompanied by a reduction in the high costs <strong>of</strong> imports <strong>and</strong> external costs for<br />

damage to the climate <strong>and</strong> environment. The savings will run into the billions <strong>and</strong> be<br />

far in excess <strong>of</strong> expenditure on exp<strong>and</strong>ing renewable energies. There will also be a<br />

positive impact on the labor market, with the number <strong>of</strong> jobs in the renewable energy<br />

sector increasing from 250,000 at present to at least 500,000 in 2020.<br />

Innovative business models with a mixed cost strategy pave the way<br />

The cars now being <strong>of</strong>fered on the market are simply far more expensive that<br />

gasoline-driven cars. That is mainly attributable to the battery, since all the other<br />

components are just as expensive, if not cheaper. A high-performance battery for<br />

<strong>electrical</strong> vehicles, for example, now costs around 10,000 euros. A mixed cost model<br />

is therefore a suitable financing model. “It would be conceivable for the vehicle itself<br />

to be a fixed price component, whereas the expensive battery technology is financed<br />

by <strong>means</strong> <strong>of</strong> energy brokering. That mean: A vehicle can not only absorb electricity,<br />

but also resell it if required, i.e. act bi-directionally as a consumer <strong>and</strong> source <strong>of</strong><br />

energy. Car owners can sell the stored energy they do not need back to the grid at a<br />

pr<strong>of</strong>it,” states Lechler.<br />

That obviously requires powerful, cutting-edge information <strong>and</strong> communications<br />

technology (ICT), primarily for the vehicle itself: Only smart solutions will enable them<br />

to be act as a load sink or a source <strong>of</strong> energy <strong>and</strong> permit billing <strong>of</strong> the used or<br />

returned electricity. One basic requirement is that the vehicle must constantly be<br />

connected to an ICT-based infrastructure responsible for h<strong>and</strong>ling the billing <strong>and</strong><br />

control processes. “We are talking here <strong>of</strong> control mechanisms that communicate with<br />

the vehicles <strong>and</strong> charging stations. However, the charging or discharging process<br />

must naturally be integrated in a billing system which can in turn be used as a basis<br />

for load forecasts for cities or their districts. These then help control the power grid,”<br />

says Zahnjel.<br />

A great challenge – <strong>and</strong> also an opportunity for <strong>Siemens</strong> IT Solutions <strong>and</strong> Services, to<br />

pioneer <strong>and</strong> help shape this innovative technology from the outset – is a smart <strong>means</strong><br />

<strong>of</strong> calculating <strong>and</strong> billing the energy that has been returned or fuelled. After all, the<br />

current model based on kilowatt-hours does not work for e-cars or is only feasible to a<br />

limited extent. The quantities are sometimes too low or can only be captured at very<br />

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great cost <strong>and</strong> effort for the existing electricity billing systems as we know them now<br />

to be applied expediently. “Models like the flat rates or other variants we know from<br />

telecommunications providers will be conceivable in future. We see ourselves very<br />

clearly as a provider <strong>and</strong> expert from day one because we have the industry knowhow<br />

<strong>and</strong> solution competence, for example in smart meters,” is the conviction <strong>of</strong> the<br />

automotive specialist.<br />

Changing batteries: Simple h<strong>and</strong>ling <strong>and</strong> speed are essential<br />

Yet before we can start taking about such complex billing models <strong>and</strong> they are ready<br />

to be deployed, a number <strong>of</strong> technical challenges have to be overcome – for example,<br />

the issue <strong>of</strong> changing batteries, where large <strong>and</strong> complex systems are needed <strong>and</strong><br />

high requirements relating to personal safety have to be met. Although the systems<br />

permit a rapid throughput –like fuelling today at a conventional service station – the<br />

cost <strong>and</strong> effort is huge. Moreover, changing batteries might represent a transitional<br />

solution provided battery technology is improved. However, once the infrastructures<br />

for it have been created, this complex structure will also be transformed into a simple<br />

process. “The changing stations can then be turned into fast charging stations where<br />

the batteries in the vehicle can be completely recharged in the space <strong>of</strong> five to ten<br />

minutes. Such stations are mainly focused on fleets, since mature systems with<br />

known environmental conditions predominate in them <strong>and</strong> so precise planning is<br />

possible. They also enable larger distances to be traveled,” says Lechler with an eye<br />

to the future.<br />

The EDISON (Electric vehicles in a Distributed <strong>and</strong> Integrated market using<br />

Sustainable energy <strong>and</strong> Open Networks) project in Denmark<br />

EDISON is the first <strong>and</strong> most extensive project <strong>of</strong> its type <strong>and</strong> aims to supply a vehicle<br />

pool from the mains socket with electricity generated from the fluctuating source <strong>of</strong><br />

wind power. Up to 20 percent <strong>of</strong> Denmark’s energy already comes from the<br />

thous<strong>and</strong>s <strong>of</strong> wind turbines along <strong>and</strong> <strong>of</strong>f the country’s coasts, a figure that is to be<br />

increased to 50 percent by 2050. Vehicle <strong>and</strong> grid technology will be developed <strong>and</strong><br />

advanced in the next two years so that excess electricity generated from wind power<br />

does not have to be passed on to neighboring countries at great expense. Practical<br />

testing is to commence on Bornholm in 2011. The planned bidirectional flow <strong>of</strong> energy<br />

harbors enormous potential: 200,000 vehicles connected to the grid with a power <strong>of</strong><br />

40 kWh, can quickly deliver eight gigawatts. By comparison, that is more than the<br />

normal power Germany currently needs as a cushion for peak consumption times, for<br />

example at breakfast time or in the early evening.<br />

<strong>Siemens</strong> is a member <strong>of</strong> the EDISON consortium <strong>and</strong> is responsible for the areas <strong>of</strong><br />

fast charging <strong>and</strong> battery replacement systems. Other partners are the Technical<br />

University <strong>of</strong> Denmark (DTU) <strong>and</strong> its research center, Dong Energy, Eurisco <strong>and</strong> IBM.<br />

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The energy business becomes an Internet business<br />

Energy expert Lechner sums up the technological requirements for the overall emobility<br />

architecture as follows: “Electro<strong>mobile</strong>s need information from the primary<br />

sources <strong>of</strong> traffic management systems <strong>and</strong> telematics solutions. Combined with user<br />

pr<strong>of</strong>iles <strong>and</strong> actual (driving) behavior, this data is merged with that from the energy<br />

management systems <strong>and</strong> aggregated to give an overall forecast at the end <strong>of</strong> the<br />

process. As a result, mobility providers can plan exactly <strong>and</strong> know when <strong>and</strong> how<br />

much energy they need for which customer.”<br />

This is almost automatically accompanied by additional business models: If the<br />

vehicle is constantly connected to the Internet or another service provider, it makes<br />

sense to <strong>of</strong>fer services above <strong>and</strong> beyond searching for a parking space <strong>and</strong><br />

information on contract repair shops. “Take, for example, the Apple App Store, an<br />

extremely successful business model that works excellently in the world <strong>of</strong> <strong>mobile</strong><br />

terminal devices. A similar scenario is likewise conceivable for a <strong>mobile</strong> terminal<br />

device like a vehicle, for instance to pay automatically for parking or to find a nearby<br />

restaurant <strong>and</strong> reserve a table right away. By <strong>of</strong>fering such services, providers can<br />

enhance their portfolio to deliver important added value that may be crucial to their<br />

success,” is Zahnjel’s conviction.<br />

A further area where work still needs to be done is to achieve global consensus on<br />

consistent st<strong>and</strong>ards for communication <strong>and</strong> models such as roaming. “There are<br />

adapters for plugs, so that is not a challenge,” notes Zahnjel. “Things get tougher<br />

when one billing system has to communicate with another. In the medium term, there<br />

are bound to be service providers for conurbations who <strong>of</strong>fer the same<br />

communications st<strong>and</strong>ards. That <strong>means</strong> the identical ICT is used in the vehicle <strong>and</strong><br />

by the service provider – <strong>and</strong> my car works just as well in Munich as in Hamburg or<br />

Paris.”<br />

Ever further, ever better: The telco industry as a model<br />

The Munich-based high-tech group is taking an end-to-end approach to the e-car –<br />

<strong>and</strong> has forged an alliance within the group: The IT <strong>and</strong> energy experts from <strong>Siemens</strong><br />

IT Solutions <strong>and</strong> Services <strong>and</strong> from the Energy <strong>and</strong> Industry Sectors work h<strong>and</strong> in<br />

h<strong>and</strong> – <strong>and</strong> the smart grid is the element that unites them.<br />

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<strong>Siemens</strong>’ overall solution expertise in the e-car arena:<br />

<strong>Siemens</strong> IT Solutions <strong>and</strong> Services:<br />

- Overall system management: System integration, ICT network integration, ICT<br />

network infrastructure<br />

- Traffic management: Navigation, telematics <strong>and</strong> fleet solutions<br />

- Provision <strong>of</strong> back-<strong>of</strong>fice systems, for example for billing<br />

- Identification <strong>and</strong> authentication solutions<br />

- Communications solutions<br />

- Service management <strong>and</strong> value added services, such as location-based<br />

services <strong>and</strong> information<br />

Energy Sector:<br />

- Technical management in relation to the e-car – Network connection <strong>of</strong> the<br />

infrastructure<br />

- Energy management: Communication with utilities<br />

- Power electronics<br />

- Meter <strong>and</strong> meter data management<br />

- Battery charging <strong>and</strong> changing stations<br />

Industry Sector<br />

- Sensor systems <strong>and</strong> charging equipment<br />

- Charge pump <strong>and</strong> battery replacement solutions<br />

- Traffic management<br />

- Mobility services<br />

- Local parking <strong>and</strong> recharging services<br />

Corporate Technology<br />

- Research<br />

Zahnjel ventures a look into the crystal ball: “Today, car owners fill up at any station.<br />

In future, however, integrated systems such as those currently used in <strong>mobile</strong><br />

communications will make sense. Since electromobility will not pay <strong>of</strong>f solely from<br />

selling electricity, all-round concepts are an expedient solution. A primary agreement<br />

will then be signed with a mobility provider or electromobility service provider who can<br />

boast a feasible business model to cover all the services a driver requires: A range <strong>of</strong><br />

or perhaps even all the existing stations for recharging or discharging electricity, as<br />

well as further <strong>mobile</strong> services. <strong>Siemens</strong> has launched an eCar@Infrastructure<br />

Center <strong>of</strong> Excellence so as to be among the top-flight <strong>of</strong> providers from the outset.<br />

E-mobility is in the fast lane<br />

Looking beyond Germany, it soon becomes clear that electromobility is not a<br />

European phenomenon. The U.S. has recently launched an extensive project to<br />

modernize its power grid: Some 2.3 billion euros will be spent on upgrading lines <strong>and</strong><br />

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enabling them to carry eco-friendly electricity. The planned “smart grid” will also be<br />

linked with measurements instruments in millions <strong>of</strong> private households so that<br />

individuals can reduce their energy consumption.<br />

As part <strong>of</strong> the noble objective <strong>of</strong> positioning Germany as the leader in electromobility,<br />

it makes sense to roll out well-designed market incentive programs. They are<br />

essential to prevent Germany from soon lagging behind other countries as a location<br />

for the electro<strong>mobile</strong> industry. If, for example, renewable energies are integrated fully<br />

in the smart grid, users <strong>of</strong> electro<strong>mobile</strong>s who run their vehicle with eco-friendly<br />

electricity might be granted special tax breaks. That is already customary in the U.S.<br />

or Japan, where e-car owners make savings running into the thous<strong>and</strong>s, be it directly<br />

when they buy their vehicle or in the form <strong>of</strong> a tax credit. Yet anyone who buys an<br />

electric car in Germany is given a comparatively modest financial incentive: He or she<br />

does not have to pay motor vehicle tax for five years.<br />

However, regulatory advantages are also conceivable to make electromobility<br />

attractive to broad groups <strong>of</strong> buyers. For example, cities <strong>and</strong> municipalities could<br />

allow the cars to use bus lanes <strong>and</strong> drive in normally prohibited inner city areas or<br />

provide them with free parking zones. A zero-emission sticker would be advisable as<br />

a <strong>means</strong> <strong>of</strong> introducing such advantages, which can be justified in particular by the<br />

lower level <strong>of</strong> local emissions from the e-cars.<br />

Quite a bit has already been undertaken . But as always, it takes time to do a thing<br />

well. And in the case <strong>of</strong> e-cars, we have been at it for more than 100 years. Yet only<br />

results count at the end <strong>of</strong> the day. And they can already been seen <strong>and</strong> smelled.<br />

RegModHarz<br />

Regenerative Model Region Harz, rural district <strong>of</strong> Harz<br />

The “Regenerative Model Region Harz” (RegModHarz) is one <strong>of</strong> six model e-energy<br />

projects funded by the German Ministry <strong>of</strong> Economics <strong>and</strong> Technology (BMWi) in<br />

partnership with the Ministry <strong>of</strong> the Environment, Nature Conservation <strong>and</strong> Reactor<br />

Safety (BMU). Its objective is the technical <strong>and</strong> economic development <strong>and</strong><br />

integration <strong>of</strong> renewable energy resources through the use <strong>of</strong> state-<strong>of</strong>-the-art<br />

information <strong>and</strong> communication technology (ICT). The goal is to create an efficient<br />

energy infrastructure with an optimal share <strong>of</strong> regional regenerative energies, as well<br />

as to organize <strong>and</strong> operate this infrastructure using free-market control mechanisms.<br />

In the Model Region Harz, various renewable energy generators, controllable<br />

consumers <strong>and</strong> energy <strong>storage</strong> devices are to be linked to create a virtual power<br />

plant, the “Harz Regenerative Power Plant”. The coordination <strong>of</strong> generation, <strong>storage</strong><br />

<strong>and</strong> consumption is intended to furnish pro<strong>of</strong> that a stable, reliable <strong>means</strong> <strong>of</strong><br />

supplying <strong>electrical</strong> energy located close to consumers is possible – even with a high<br />

proportion <strong>of</strong> renewable sources.<br />

Participants: E.ON Avacon AG, <strong>Siemens</strong> AG, Vattenfall Europe Transmission GmbH<br />

<strong>and</strong> others<br />

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:<br />

What is an electric drive?<br />

Such vehicles do not have a conventional power train which transfers the kinetic<br />

energy from the engine to the wheels. Instead there are electric motors in the wheel<br />

hubs <strong>and</strong> the energy comes from a battery that can be recharged from the mains<br />

socket. Since the batteries’ <strong>storage</strong> capacity is not comparable to that <strong>of</strong> a<br />

conventional auto<strong>mobile</strong>, a number <strong>of</strong> electro<strong>mobile</strong>s have a range extender on board<br />

– a small generator that supplies energy to the electric motors when the battery is<br />

empty.<br />

What is a hybrid car?<br />

Hybrid cars have a battery on board in addition to the traditional combustion engine.<br />

When it is empty, the gasoline-driven engine starts up. One variant is the mild hybrid<br />

system, in which the <strong>electrical</strong>ly powered drive only runs in parallel as an aid to<br />

reducing gas consumption. The battery is usually recharged by <strong>means</strong> <strong>of</strong><br />

regenerative braking <strong>and</strong> a generator. However, fully fledged hybrid vehicles (plug-in<br />

hybrids) can also be recharged from the mains socket.<br />

What are the benefits <strong>of</strong> fuel cells?<br />

Vehicles with fuel cells run on liquid hydrogen instead <strong>of</strong> gasoline. The hydrogen is<br />

converted into electric energy to drive the vehicle by <strong>means</strong> <strong>of</strong> a chemical reaction in<br />

the fuel cell. Unlike with pure electro<strong>mobile</strong>s, the infrastructure required for producing<br />

the hydrogen is an unresolved problem. The advantage <strong>of</strong> fuel cell vehicles is their<br />

greater range.<br />

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Proposed illustrations:<br />

Caption: Markus Zahnjel, head <strong>of</strong> the Car Electronics segment at <strong>Siemens</strong> IT<br />

Solutions <strong>and</strong> Services (source: <strong>Siemens</strong> IT Solutions <strong>and</strong> Services)<br />

Caption: Christian Lechler, Account Line Manager IEH at <strong>Siemens</strong> IT Solutions <strong>and</strong><br />

Services (source: <strong>Siemens</strong> IT Solutions <strong>and</strong> Services)<br />

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Caption: Is the battery full enough to make it home? Refined technology coupled with<br />

cutting-edge IT makes the car a high-tech center on the road – one with an answer to<br />

just about any question. (Source: <strong>Siemens</strong>)<br />

Caption: Fast charging stations instead <strong>of</strong> the good old gas station: The purring<br />

electric cars can be fully recharged in an eco-friendly way <strong>and</strong> in a matter <strong>of</strong> minutes.<br />

(Source: <strong>Siemens</strong>)<br />

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Caption: Fast charging stations instead <strong>of</strong> the good old gas station: The purring<br />

electric cars can be fully recharged in a eco-friendly way <strong>and</strong> in a matter <strong>of</strong> minutes.<br />

(Source: <strong>Siemens</strong>)<br />

Caption: Fill her up quickly at home: E-cars can be plugged in at home quickly <strong>and</strong><br />

easily thanks to leading-edge technology. For example, they can be recharged at<br />

night when electricity costs a lot less <strong>and</strong> then any excess can be sold back to the<br />

grid at a pr<strong>of</strong>it during the day.<br />

(Source: <strong>Siemens</strong>)<br />

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Caption: Cars st<strong>and</strong> around idle <strong>and</strong> do not need any energy for most <strong>of</strong> the day <strong>and</strong><br />

night. By being connected to the smart grid all the time, they can act like brokers on<br />

an energy exchange: When electricity is cheap, they recharge themselves <strong>and</strong> when<br />

it is expensive, they sell it at a pr<strong>of</strong>it. The recommendations for this come from the<br />

energy service provider via the smart grid. (Source: <strong>Siemens</strong>)<br />

Caption: Quiet, clean <strong>and</strong> purring: Electro<strong>mobile</strong>s will one day dominate the<br />

roadscape worldwide. They are definitely the best choice in view <strong>of</strong> increasing CO2<br />

emissions, high oil prices <strong>and</strong> the growing need <strong>of</strong> six billion people for mobility.<br />

(Source: <strong>Siemens</strong>)<br />

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Caption: A complex architecture: The electromobility value chain.<br />

(Source: <strong>Siemens</strong>)<br />

Caption: Making advances: Electricity from renewable energies is expected to meet<br />

47 percent <strong>of</strong> Germany’s power supply in 2020.<br />

(Source: The Renewable Energy Agency <strong>and</strong> the German Renewable Energy<br />

Federation)<br />

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Caption: If more cars would run on electricity from renewable energies in future, that<br />

would not only be easy on the purse, but also on the environment. According to the BEE,<br />

CO2 emissions in the traffic sector can be cut by up to 28 million tons by 2020.<br />

(Source: The Renewable Energy Agency <strong>and</strong> the German Renewable Energy<br />

Federation)<br />

Caption: Electro<strong>mobile</strong>s have many advantages. One <strong>of</strong> them is less energy<br />

consumption – <strong>and</strong> that can be covered by an increase in power generated from<br />

renewable sources.<br />

(Source: The Renewable Energy Agency <strong>and</strong> the German Renewable Energy<br />

Federation)<br />

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