Sustainable Energy Solutions Require Technology Innovations Finnish-German Energy Day Martti Kohtanen CEO Siemens Osakeyhtiö November 23|2010 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Increasing power consumption driven by global factors Increasing life expectancy Population growth CO2 emissions Geopolitics Climate targets Megacities Oil price fluctuations GDP increase in developing countries Page 2 Rising temperatures Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Increasing electrification of society Demographic dynamics Increasing power consumption Mobility Resource scarcity Need for efficiency Unconventional energy sources Industry Climate change Growing demand for ”clean” power Page 3 Entertainment Public / © Siemens Osakeyhtiö 2010 / All rights reserved. ”New Electricity Age” Electricity will be the energy source: most flexible and efficient energy medium Renewable energy sources, (solar, wind, hydro, biomass), “clean” coal, gas, nuclear Central + decentralized generation Smart grid as an enabler Sustainable energy system, environmental awareness Page 4 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. New electricity age requires holistic know how from extraction to consumption Page 5 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Entire energy system must be optimized 1 Optimization of the energy mix 2 Higher efficiency along the entire energy chain 3 Systemic optimization/ Smart Grid Page 6 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Optimization of the energy mix: New technologies for regenerative and conventional energy sources Renewable energies Wind power: 2009: Order for first Desertec: 2009: Founding of offshore wind park in the DII2) to establish gigawatt class frame-work conditions for building the project Low-emission base load CCS1): 2009: First pilot plant for Nuclear: 2009: World’s biggest post-combustion CCS steam turbine and in operation generator delivered 2009: First 500-MW for new EPR3) gasifier delivered 1) CO2 Capture and Storage Page 7 2) DESERTEC Industrial Initiative GmbH 3) European Pressurized Water Reactor Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Innovation fields along the entire energy conversion chain Nuclear Power Generation Offshore & Subsea Oil&Gas Page 8 Pipeline Transportation and Gas Liquefaction Highly Efficient Coal- and gas fired Power Plants Wind Power Generation Solar Power Generation HVDC-Transmission and HVDC Grids Smart Grid incl. Energy Storage, E-Mobility Gasification Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Systemic optimization: Smart Grid – The future‘s intelligent grid Page 9 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Technology innovations enable better quality of life Page 10 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Wind Power – Innovation Highlight: Hywind – floating offshore wind turbine In partnership with StatoilHydro, Siemens erected he world’s first floating turbine Alternative foundations for sites with water depths greater than 120–700 meters Visually less intrusive and having a higher energy yield due to the strong and constant wind conditions at sea. Direct drive With “Direct Drive,” Siemens is researching whether gearless turbines can compete with geared turbines. Linking the rotor directly to the generator reduces maintenance effort and increases availability significantly Page 11 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Wind power – Greater efficiency with higher capacity Page 12 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Smart generation Coal-fired power plant with a 50 percent efficiency rating A steam temperature of about 700 °C An efficiency rating of at least 50 percent 40 percent less CO2 compared with today’s global average Consumes 40 percent less coal for the same amount of electricity. In 2014 E.ON intends to put a power plant of this type into operation in Wilhelmshaven. Page 13 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Smart transmission HVDC: Long distances – high efficiency and flexibility Large amounts of electricity to be transported efficiently and in an environmentally friendly manner across long distances. The world's most powerful HVDC installation in China with a transmission capacity of 5,000 MW and a transmission voltage of +/– 800 kV. Environmentally friendly hydro-power from generation facilities in Yunnan to the industrial center of Guangdong, which is 1,400 kilometers away. The first pole of the system went into operation in December 2009. Page 14 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. eCar success brings wider benefits Increased Green Power Smarter Storage Smoothing supply Smarter Homes Reducing waste Greener, cleaner, more efficient cities Smarter distribution Optimising the flow Page 15 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Success Story – City of Berlin, Germany The Energy Saving Partnership (ESP) Basic Data Prior energy costs: 17.2 m € / year 164 buildings such as schools, kindergartens, day-care centers, gyms, indoor swimming pools, the JVA Tegel correctional facility, Technical University of Berlin, and Berlin University of the Arts (EU Green Building partner) Customer Benefits Solution Energy management system Heat generation / distribution Air conditioning & ventilation Water technology Control, monitoring, maintenance Education Page 16 Guaranteed total savings: 5.3 m € / a (ca. 30% of total e-costs) Immediate budgetary savings for Berlin: 1.14 m € / a Contract duration: 9 to 12 years Initial investment: 28.5 m € Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Renewable energy and decentralized power generation will change the energy market Page 17 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Energy market will change Page 18 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Enormous potential for renewable energies in Europe Page 19 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. The European off-shore super grid Page 20 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. DII GmbH – To make the DESERTEC vision possible Page 21 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. The world’s first CO2-neutral city Masdar City, Abu Dhabi A futuristic, environmentally-friendly metropolis Construction begun in February 2008 Some 50,000 people are expected to be living in Masdar City by 2016 To consume very little energy Local resources will satisfy requirements No net emissions generated Renewable energy sources: solar-thermal plants and photovoltaic facilities To minimize energy consumption Car-free metropolis: a tightly woven public transport network of electrically operated vehicles A long term strategic partnership including an innovative power grid, advanced building technologies and CCS research center. Page 22 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. With Smart Grid and an intelligent energy mix into a integrated energy system Large power plants ensure the supply of electric power Large and small power plants are managed in an integrated energy system Display of CO2 emissions Car park for E-cars with charging station Electricity transport underground through gas-insulated lines Cableless sensors and smart meters for efficient load management and flexible electricity procurement Page 23 Energy storage to compensate for fluctuations in power infeed into the electricity grid Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Siemens has answers to sustainable development Fossil Power Generation Renewable Power Generation Power Transmission Power Distribution Environmental Technologies Healthcare Mobility Solutions for Industry Lighting (Osram) Building Technologies IT Solutions and Services Page 24 Public / © Siemens Osakeyhtiö 2010 / All rights reserved. Thank you Page 25 Public / © Siemens Osakeyhtiö 2010 / All rights reserved.