Challenge
The current energy revolution is a challenging time, especially for municipal utilities. Electricity produced from renewable sources like solar and wind is now fed into power systems in large quantities and often requires expansion of the existing infrastructure. For example, the
Cottbus GmbH (EVC) power supply utility had to build a new transformer substation to keep the power system stable due to large quantities of energy being added into their network.
The issue of financing is the second challenge. Often times these investments must be financed flexibly, in line with demand and budgets, and with long-term viability. Siemens Financial Services (SFS) supports power utilities, municipalities and network operators with solutions that match their economic situation as an alternative to traditional financing options such as banks.
Through its long history of supporting Siemens customers,
SFS has built up a vast library of industry-specific knowledge that serves as reference for indivdualized advice.
The solution
Siemens Transformers offers different alternative financing models for transformers in cooperation with Siemens
Financial Services. Both leasing concepts and “pay-as-yousave” models are possible. This enables our customers to procure a replacement transformer earlier than they could finance through realizing power savings with the newer, lower-loss transformer.
40 MVA transformer for EVC.
Elektroenergieversorgung Cottbus GmbH
Elektroenergieversorgung Cottbus GmbH (EVC) headquartered in Cottbus was founded in 1991. Its sole proprietor is Stadtwerke Cottbus GmbH. The EVC operates the natural gas network for Gas-Versorgungsbetriebe
Cottbus GmbH and the district heat network for
Stadtwerke Cottbus GmbH. Its tasks include operating, maintaining, and expanding the electricity, natural gas, and district heat networks throughout most of the city of
Cottbus and measurement and metering. EVC also operates a hydro plant and several heat generation plants.
Elektroenergieversorgung Cottbus GmbH decided on a lease purchase model to run for 96 months, by combining the advantages of leasing and classic investment credit.Their new transformer is economically attributed to the
EVC from the outset despite the financing. The depreciation and financing costs can therefore be fully included in the regulated network fee, with budget-friendly lease purchase installments.
“Because we were thinking of reconfiguring our banking arrangements, the Siemens offer for equipment and financing from a single source came at just the right time and simply convinced us. That equally applies to the straightforward and correct handling by Financial Services.”
Jens Schober, general manager (EVC)

Advantages for the customer
Energieversorgung Cottbus GmbH (EVC) decided on a new method of transformer financing, one without risk. The transformer manufacturer and the financier are in the same company; therefore, the customer does not need to serve as a coordinator between the two. The transformer was immediately put to technical and economical use by
EVC.
Financing that pays off
With constant payment installments, the transformer operator benefits from a constantly low outflow of liquidity.
With an investment without a payment plan, on the other hand, liquidity drops off sharply in the month of the purchase.
Investment with payment schedule
Steady payments, low liquidity drain
Months
Investment without payment schedule
Liquidity sinking dramatically
Months
Applicability to other customers
The offer, based on a unique combination of financial and technological know-how is building growing interest throughout Germany. Thanks to our comprehensive product portfolio and our shared experience in supporting communal companies, we can adjust to every individual city or municipal utility. Together, Siemens and SFS can think like an entrepreneur, speaking the same languages as our customers.
Test: Could an alternate financing method be right for you, too?
Do you have any procurement needs that you could resolve more economically without a bank loan?
Do you need a budget-easing financing solution for the next investment?
Is a solution comprising financial expertise and product know-how important to you?
Is liquidity relevant to you despite investment?
Would you like to use a long-term viable and flexible financing model?
Do you want to include subsidies?
Do you value serious advice and partner-like cooperation?
If you answer “yes” to more than 2 of the statements above, talk to us about financing your project.
Published by and Copyright © 2014:
Siemens AG
Energy Management Division
Freyeslebenstraße 1
91058 Erlangen, Germany
© 04.2015, Siemens AG
Siemens AG
Transformers
Katzwangerstraße 150
90461 Nuremberg