Power Transmission Energy on the Fast Track: The Return of DC Like high-speed trains, modern power lines can cover great distances at a time. Karlheinz Springer, CEO of the Siemens Energy Power Transmission ­Division, explains how power transmission puts electricity in the fast lane. Text: Onno Groß Photos: Jann Averwerser K arlheinz Springer, as Head of the Power Transmission Division, you work in close proximity to the dynamic ­energy market. How is the grid architecture affected by the ­changes in power generation? Karlheinz Springer: We will see a drastic shift in the global energy mix by 2030. While fossil fuels will remain dominant, renewables will account for one third of future power genera­ tion capacity. Two global trends are evident: first, the spatial decoupling of energy production and energy ­consumption. We have more and more remote energy sources like hydro­ power or large offshore and onshore wind farms. And governments are planning to install the power plants close to the energy sources. Thus, huge amounts of energy have to be transported over long distances to the megacities and load centers. At the same time, distributed energy with its intermittent infeed and 72 Living Energy · No. 10 | May 2014 r­ everse load flows presents new challenges for the distribution grid, requiring new smart grid solutions. Because power transmission is needed, tens of billions of euros have to be spent now and in the ­future. Where are the key investments to be expected? K. Springer: Investments in new grid infrastructure must meet three key requirements: Obviously, capacity ad­ ditions should increase the availability of the network. It is equally important that they represent a viable business case for investors. In addition, the lo­ cal population needs to be involved in the planning to ensure public accep­ tance of the line extensions. If we look at the overall global devel­ opment, there is a growing market for high-voltage DC systems as well as for the modernization of existing AC grids. More and more, this requires HVDC technology, where transmission losses of lines are typically reduced by 30 to 50 percent in comparison with AC transmission. It paves the way for a very efficient and stable delivery of power. High-voltage power transmission involves interconnector and longdistance lines. What is planned here in the future? K. Springer: Siemens has been engaged in the DC field for a long time. This includes high-power transmission systems such as those linking Spain and France across the ­Pyrenees, or England and Scotland. There is the general trend for power transmission over long distances and here HVDC is the key instrument. In Europe, we do see an increased number of country interconnections and a continuous growth of wind power generation, es­ pecially in the North Sea and around the UK. In China and India, however, the growing energy demand of the megacities requires even stronger transmission capacities. In China, u “We offer comprehensive solutions to ensure the highest stability of a grid.” Karlheinz Springer, CEO, Power Transmission Division Living Energy · No. 10 | May 2014 73 Power Transmission Power Transmission onshore wind energy and hydropower in the north and the west will need bulk power transmission over long distances to the coastal cities. In ab­ solute terms, these investments are certainly always higher than in other countries. We are participating well in this market and are the number-one provider of HVDC in China. Since we built the first 800-kilovolt lines, we have worked closely with the State Grid and Southern Grid Corporations of China. At present, we are close to build­ ing a 1,100-kilovolt HVDC that will transport the incredible amount of 11,000 megawatts – via a single bipo­ lar system! The late 19th century saw the “War of Currents” between AC and DC. Will we have to rethink the electricity network, and how will this develop? K. Springer: That historic contest be­ tween Nikola Tesla and George West­ inghouse [promoting AC] and Thomas Edison [pushing for DC current] was won by the AC advocates because at that time, the usefulness of DC technology over long distances was limited. How­ ever, we have long been observing a development from AC to DC transmis­ sion. It all began with the first DC pointto-point connections, which Siemens installed in Germany in 1945, and later Karlheinz Springer “Multiterminal grids will be a complete change from what we have known for the last 50 years.” Karlheinz Springer Background Karlheinz Springer, born in Mannheim, Germany, in 1959, graduated with a Master’s degree in Electrical Engineering from the University of Mannheim. Professional Experience and Education After completing his university studies, Springer joined Siemens in 1985. His career involved increasing responsibilities 74 Living Energy · No. 10 | May 2014 across a broad range of functional areas including international project management, engineering and execution, sales and marketing, and commercial management. In May 2012, he was appointed CEO of the Siemens Energy Power Transmission Division. When he isn’t working from his desk in Erlangen, Germany, his work on DC power transmission often takes him far afield to the USA, Russia, or China. International issues are constantly on his mind: “Being local is in the DNA of Siemens,” Springer says. “Our motto is: ‘In China for China, and from China to the world.’ This mind-set applies to all our country departments. And I think it is the right strategy in this more and more globalized world.” around the world. For instance, Siemens connected the power supply networks of New Jersey and New York with a 660-megawatt back-to-back HVDC sys­ tem; we also linked the island of Mal­ lorca with mainland Spain. Right now, we are constructing the world’s first 600-kilovolt DC submarine cable trans­ mission in the Irish Sea. So the num­ ber of long-distance DC transmission systems is constantly increasing. With the Siemens portfolio of highvoltage DC solutions, we are perfectly matched to these requirements and have a leading position. We offer the state of the art in technology and will maintain that edge. How will these new developments affect the future grid architecture? K. Springer: What we will see is a combination of AC/DC energy highways, or a “supergrid,” as some call it. This will be very different from what we have known in the last 50 years. It means a mixture of AC and DC sys­ tems, which will enable load flow and voltage. This is where our product development is headed. Our HVDC PLUS “full bridge” technology, for example, can handle short circuits on the DC transmission effectively. We are the leader in that technology, which is required for the DC connec­ tions in Germany’s grid. We are also developing compact new high-voltage products such as gas-insulated DC switchgear for up to 500 kilovolts, DC breakers, and gas-insulated DC trans­ mission lines. We are seeing a lot of innovations right now. Another example of DC grid transmission is the connection of offshore wind parks in the North Sea. In this respect, the past year has been an eventful one. K. Springer: We have a long record in delivering offshore projects, from the world’s first offshore wind farm more than 20 years ago to the largest offshore wind power plant in opera­ tion today, the London Array. With the current construction of several huge wind parks in the German North Sea, this market is very active. The challenge for the installation of converter platforms at sea was a “Being local is in the DNA of Siemens.” Karlheinz Springer tough one, but now, the technical success of the p ­ rojects is becoming evident. Beginning in the second half of this year, the first platform, HelWin1, will transmit up to 576 megawatts pro­ duced in the wind power plants via submarine cable to the German main­ land 85 kilometers away. On the other hand, installation under offshore con­ ditions includes very complex issues that we underestimated and which resulted in delays. However, we have always followed our commitments and worked hard for them by introduc­ ing a cost-reduction program. We have learned our lessons and will de­ liver to our customers the next plat­ forms – even under the harsh offshore conditions in deep water. These sound like huge technical challenges. How will they affect the price of energy? K. Springer: HVDC offshore technolo­ gy is still in its early stages of develop­ ment, so there is still a large potential for cost reduction. With continuous research, we will see more and more technical improvements as well as innovations to satisfy the market. Our experience with the converter off­ shore platform will certainly pay off in the future. Space, for example, is an important factor in offshore con­ struction. Our new gas-insulated DC switchyard technology gives us a 90 percent reduction in space com­ pared to air insulation, which we used before. This is a real advantage in platform building and very cost-effec­ tive. As always, we are committed to listening to the customer and offering solutions for cost reduction. Another field is the modernization of existing AC grids. Can you point out some current developments? K. Springer: In established econo­ mies like the USA and Europe, but also especially in Russia, most of the AC grids are more than 30 years old, and many components need to be replaced. We expect that one third of all grid investment will be spent on the modernization of obsolete grids in order to prevent blackouts. In many countries, we have fully local­ ized portfolios, where we produce transformers, high-voltage products, and other components. In Russia, Siemens has a factory in Voronezh and is regarded as a local manufacturer and a national brand. Together with the utilities and the know-how of the regulators, we are developing solu­ tions to modernize the grid and ensure the stability. Capacities of transmission lines will increase further in the future. How do you expect global marketdemand to develop? K. Springer: There is no doubt that new technologies, such as FACTS (flexible AC transmission systems) and GIL (gas-insulated transmission lines), are emerging. They increase the transmission capacity of AC sys­ tems very effectively. Siemens is watching their long-term trajectory. We are also, for example, working on a different application for trans­ formers based on new ­electrical equipment. Together with our central R&D department at Siemens, we are analyzing the demands of the market. And we discuss openly with our cus­ tomers the technological needs in the globalized world as well as ways of coping with the challenges they are confronted with. Our commitment is to understand our customers, to care for their needs, and to drive their business success. p Onno Groß is a veteran correspondent for various German media based in Hamburg. His focus is on business, science, and the environment. Living Energy · No. 10 | May 2014 75