Intergalva – June 2015 Siemens Wind Power Restricted © Siemens AG 2014 All rights reserved. siemens.com/answers Presentation topics •Size and scale of wind industry •What does the technology look like •What does the industry look for in suppliers Restricted © Siemens AG 2015 All rights reserved. Page 2 Wind power in the UK, Denmark and Germany Records in share of the energy mix Percentage of wind energy in the countries’ total electricity supply in 2014: 39% 9.3% Denmark 8.6% United Kingdom Germany Source: National Grid Source: Deutsche WindGuard Highest level of wind energy in the energy mix in the world. Source: Energinet.dk Restricted © Siemens AG 2015 All rights reserved. Page 3 Offshore Wind Power in numbers 75m Length of an individual turbine blade for the latest Siemens offshore turbine 4,618 MW of commissioned offshore in UK 9.5% 1300 Restricted © Siemens AG 2015 All rights reserved. Page 4 Offshore turbines Installed and commissioned Of Electricity generation in UK produced by wind energy in 2014 Project Developer – Typical project scope Developer’s scope typically includes; • Development • Project Technical design • Site Investigation • Negotiation of lease • Grid Connection • Procurement • Installation • Warranty and Service period Restricted © Siemens AG 2015 All rights reserved. Page 5 Siemens Wind Power – Typical project scope Scope of our contract includes; • Engineering • Procurement • Installation • Offshore Commissioning • Warranty and Service period • Subcontract supply of towers Siemens 6.0-154 Wind Turbines Restricted © Siemens AG 2015 All rights reserved. Page 6 Primary Manufacturing - Blade Production Restricted © Siemens AG 2015 All rights reserved. Page 7 Delivery from Factory Restricted © Siemens AG 2015 All rights reserved. Page 8 Individual blades are 75m long Restricted © Siemens AG 2015 All rights reserved. Page 9 Quayside – Pre-Assembly operations Restricted © Siemens AG 2015 All rights reserved. Page 10 Vessel load out and Offshore Installation Restricted © Siemens AG 2015 All rights reserved. Page 11 Offshore Installation of Siemens 6MW (Gunfleet Sands III) Restricted © Siemens AG 2015 All rights reserved. Page 12 Siemens plc – supplier selection criteria • Environment, Health & Safety • Competence • Delivery • Value for money Above all suppliers need to bring a competitive advantage Restricted © Siemens AG 2015 All rights reserved. Page 13 Supply Chain Approach Industry Engagement Working with key intermediaries; • Renewable UK • GROW Programme • Offshore Renewable Energy Catapult • The Crown Estate • Other Intermediaries Successful joint working with clients on project-specific events Restricted © Siemens AG 2015 All rights reserved. Page 14 How to engage and advice for potential suppliers; Understand the market • Who’s your customer? • Recognise that component supply may be 2nd or 3rd tier Understand what you offer • LCOE Reduction • Logistics advantage Lever Support networks • GROW Offshore wind • Renewable UK • Other trade groups Restricted © Siemens AG 2015 All rights reserved. Page 15 Example - Machined Parts Milled Parts Size: up to 50-800mm Material: Alu, steel Surface treatment: Galvanized, painted, spay metalized, electro galvanized Restricted © Siemens AG 2015 All rights reserved. Page 16 Turned Parts Size: up to 5-3000mm Material: Alu, steel Surface treatment: Galvanized, painted, spay metalized, electro galvanized Supplier Qualification Siemens are committed to using local suppliers wherever possible. It makes sense commercially and technically. These are the criteria which would qualify “ready for business” (R4B): Restricted © Siemens AG 2015 All rights reserved. Page 17 Approach to Health, Safety and the Environment Reliable Delivery Competence & Quality Value for money Summary of Qualification Processes For contracts > £40,000 p.a. Decision Gate R4B Supplier Qualification Ready for Business • • • • • Business Performance Analysis NDA & CoC signed QMS Audit EHS Audit Corrective agreements Restricted © Siemens AG 2015 All rights reserved. Page 18 Product / Service Qualification Decision Gate R2O Ready to Order • • • • Product & Process Verification Process Audit Ts & Cs Agreed prices / rates Contact details Ray Thompson Head of Business Development – Offshore Phone: +44 (0) 7808 822544 E-mail: ray.thompson@siemens.com siemens.co.uk Restricted © Siemens AG 2015 All rights reserved. Page 19