PowerGen Europe 2015
Market opportunities and benefits ensuring effective
collaboration with customers and suppliers
Andreas Pickard, Head of R&D Management Energy Solutions
Siemens AG
© Siemens AG 2015 All rights reserved.
Page 1
Amsterdam June 09-11, 2015
Answers for energy.
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Efficiency Race
The efficiency race and standardization dominated
the CCPP-development of the last decades
Standardization
SCC5-2000E (1992)
SCC5-4000F (1996)
SCC5-4000F (2001)
SCC5-8000H (2011)
Hydrogen/water
cooled
generator
GT-auxiliaries
Air cooled
condenser
Hydrogen cooled
generator
Fuel gas-skid
Cooling tower
Project Specific
“white sheet“
NOx-skid
Fuel oil-skid
Reference Power
Plant (modules)
Standardized
Power Block
Prefabricated
Skids
Do we have to change something in our R&D approach?
Page 2
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards to a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 3
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
„Energy Only“
market before 2010
Even with all the development our customers can not
achieve a sufficient profitability
Demand
Nuclear
Lignite
Hard coal
M1
Gas
Oil
„Energy Only“
market today
GW
M2
GW
Page 4
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 5
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
The new role of the fossil fleet Security of supply
Grid services
Energy Efficiency
Power on demand
The business model should based on the new role
Page 6
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 7
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
The European power generation market is confronted
with a dramatic change
Residual load 2010
Peak load
Intermediate
Base load
Page 8
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Former business models based on
“energy only” market are history
Residual load 2020
Peak load
Intermediate
Base load
Increasing demand
and more cycle
Decreasing
operation intervals
and increasing
down time intervals
A base load fleet
(10-20 GW) ensures
frequency control
Page 9
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
0
2010-01
2010-06
2010-11
2010-16
2010-21
2010-26
2010-31
2010-36
2010-41
2010-46
2010-51
2011-04
2011-09
2011-14
2011-19
2011-24
2011-29
2011-34
2011-39
2011-44
2011-49
2012-01
2012-06
2012-11
2012-16
2012-21
2012-26
2012-31
2012-36
2012-41
2012-46
2012-51
2013-04
2013-09
2013-14
2013-19
2013-24
2013-29
2013-34
2013-39
2013-44
2013-49
2014-02
2014-07
2014-12
2014-17
2014-22
2014-27
2014-32
2014-37
2014-42
2014-47
2014-52
2015-05
2015-10
2015-15
We predicted an increase of peaking demand but
underestimated the price effect due to over
capacities
Energy Power Spot Market Prices
60
50
Price [€/MWh]
Av Price per year
40
30
20
10
500
400
300
200
100
0
Page 10
Volume [MWh]
Mid-term a pricing increase on peak load is still expected
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 11
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Retrofitable value feature for the new business model
will be key in our development programs
Tertiary frequency reserve
 Reaction time, reliability and
predictability will be key for
market success
Peaking capabilities
 Maximize peaking capacity
 Minimize fuel consumption for start
and stop cycles
Frequency control @ base load

Minimize Fuel consumption during
low load operation @ maximized
frequency control capability
We need your experiences to detail the requirement profile
Page 12
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 13
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Our new development approach
Be prepared: Drive technology development based on market
trends
On demand: Agree on concept and specification on demand
customer
Just in time: Execute value feature program for the first
application
We collaborate with our customer during value feature development
Page 14
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
Agenda
Introduction
Business Modell – Security of supply
From a static towards a dynamic market environment
From a standard plant towards value feature
Value oriented just in time development
Summary
Page 15
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.
We develop together with our customers solutions
for future business opportunities
The dynamic market environment drive
a change in the R&D approach
Development on demand and just in
time based on value generation are key
A collaboration with customers will
maximize the market success for both
We invite you to learn more about our value feature program for existing assets or
new builds
Page 16
Amsterdam June 09-11, 2015
Andreas PIckard @ PowerGen Europe
© Siemens AG 2015 All rights reserved.