Siemens Energy Sector –
Ecopowering the World
Siemens solutions for a clean electrification of society
Dr. Michael Suess
Member of the Managing Board Siemens AG
CEO Energy Sector
Page 1
September 19, 2011
Dr. Michael Suess
Mallorca, September 19, 2011
© Siemens AG
Clean electrification –
The key to a sustainable energy system
Electrification growing worldwide
World
Primary energy
consumption
Power consumption
+ 0.9% p.a.
+ 2.8% p.a.
2008
2035
2008
2035
European Community (EU 27)
Primary energy
consumption
- 0.1% p.a.
2008
Page 2
2035
Power consumption
+ 0.8% p.a.
2008
September 19, 2011
 Electricity is the
most efficient,
cleanest and most
reliable energy
source
 Through conversion
into electricity,
renewable energies
can be used directly
and universally
2035
Dr. Michael Suess
© Siemens AG
System shift –
Growing electrification is leading to a power matrix
Page 3
September 19, 2011
Dr. Michael Suess
© Siemens AG
Different challenges require individual solutions
Country-specific challenges
Innovative technologies
Energy mix in power generation
Efficiency
Climate protection
Customerspecific
solutions
Resource efficiency
Page 4
Reliable
power supplies
September 19, 2011
Large power plants
Grids
Dr. Michael Suess
Distributed
power generation
Energy storage and
intermittency
management
© Siemens AG
Different challenges – Worldwide examples
Denmark: Strive for clean power –
42% wind-powered by 2020,
100% by 2050
Country-specific challenges
India: “Power-for-all” program – get
power supply to fuel economic
growth (+350 GW installed capacity
by 2020, of it +215 GW from coal)
Efficiency
Climate protection
USA: Priority on affordable energy –
even at the cost of increased GHG
emissions (average retail electricity
price <10 USct/kWh)
China: Nuclear power expansion
ongoing (83 GW installed capacity by
2020 up from 12 GW today), but
review of security standards
Resource efficiency
Page 5
Reliable
power supplies
September 19, 2011
Sweden: Today 46% Hydro, further
extension of new Renewables
planned
Dr. Michael Suess
© Siemens AG
Different challenges –
Example: Shift in Germany’s energy policy
Goals of the adopted German energy concept

Target fixed: 55% CO2 reduction by 2030*.

Share of renewable energies in the primary energy consumption > 50% by 2050

Doubling of the share of renewable energies in the energy mix to 35% by 2020

Comprehensive, accelerated grid development (DENA II: 4,540 km necessary by 2020)

25% reduction of the primary energy consumption by 2050

Nuclear power exit: 17 nuclear power plants (21GW) to be shut down by 2022
Technical answers to accomplish German energy policy
+ Gas (Irsching 4 CCPP – most efficient and most flexible fossil power plant worldwide)
+ Wind (High efficient wind turbines SWT6-DD)
+ Grid (High efficient power transmission with HVDC)
* CO2 target for 2050 is 80%-95% reduction on the basis of the emissions in 1990. By 2010, reductions reached ca. 24.3%
Share of renewable energies in 2010: 16.8%
Page 6
September 19, 2011
Dr. Michael Suess
© Siemens AG
Germany ‚Balanced Mix‘ scenario –
In 2030 Gas and Renewables dominating
Power Generation *)
Installed Capacity
TWh
GW
615
591
40,8 (7%)
6,2 (1%)
37,8 (6%)
17,4 (3%)
78,3 (13%)
Oil
47,3 (8%)
Other RE
68,3 (11%)
Solar
137,8 (22%)
12,5 (2%)
227
23,4 (4%)
+2%
p.a.
Wind
9,8 (6%)
Hydro
22,9 (15%)
Oil
10,6 (7%)
45,3 (30%)
Nuclear
134,9 (23%)
1,2 (0%)
34,4 (6%)
2009
Coal
2030
77,9 (34%)
Solar
54,5 (24%)
Wind
11,6 (5%)
Hydro
58,2 (26%)
Gas
15,5 (7%)
Coal
6,2 (4%)
25,7 (17%)
262,7 (44%)
Gas
Other RE
152
10,0 (7%)
302,6 (49%)
7,8 (3%)
Nuclear
21,3 (14%)
2009
1,4 (1%)
2030
*) without Import and Export saldo
Page 7
September 19, 2011
Dr. Michael Suess
© Siemens AG
Challenges for the shift in
Germany’s energy policy
The fact is:

The shift in energy policy is technologically possible

Germany can play a pioneering role for other countries

The socially and politically demanded energy shift requires major investments
Prerequisites:

Strong energy utilities that invest in the necessary infrastructures

The use of large-scale technologies for the required energy efficiency

More cost-efficient production of renewable energies than in the past

Secured competitiveness for Germany through a cost-optimized energy mix

Investment security for developing reserve capacities, storage possibilities and expanded power
grids

Planning security through long-term political support and social acceptance

An EU-wide energy policy framework rather than national approaches
Page 8
September 19, 2011
Dr. Michael Suess
© Siemens AG
Energy market –
Doubling the installed capacity by 2030
Development of world power plant capacity within the next 20 years
9,670
in GW
1%
5,328
20%
Renewables (w/o Hydro, incl. Ocean)
17%
Hydro (w/o Ocean)
7%
6%
5% 2%
20%
7%
8%
15%
43%
Installed capacity
2010
Others
Nuclear Power Plant
Single Cycle Power Plant
20%
Combined Cycle Power Plant
28%
Steam Power Plant
(incl. Integrated Gasification Combined Cycle )
Installed capacity
2030
Power generation capacity built in > 100 years to double within two decades
Page 9
September 19, 2011
Dr. Michael Suess
© Siemens AG
Siemens Energy Sector –
Newly focused on the markets of tomorrow
Energy products and solutions – in 6 Divisions
Oil & Gas
Page 10
Fossil Power
Generation
September 19, 2011
Wind
Power
Dr. Michael Suess
Solar &
Hydro
Energy
Service
Power
Transmission
© Siemens AG
Siemens Energy Sector –
Strength through market leadership
Innovations for the
sustainable
electrification of
society
#1
Offshore wind power
#1
#1
Advanced gas turbine
frames
Page 11
September 19, 2011
Instrumentation and
control systems
Dr. Michael Suess
#1
Grid access offshore
#1
HVDC
© Siemens AG
Backup
Page 12
September 19, 2011
Dr. Michael Suess
© Siemens AG
New sector: Meeting the dynamic growth of cities
and infrastructure investments
Starting October 1, 2011
Industry
Infrastructure & Cities
Energy
Healthcare
CEO: Siegfried Russwurm
CFO: Ralf P. Thomas
CEO: Roland Busch
CFO: Hannes Apitzsch
CEO: Michael Suess
CFO: Ralf Guntermann
CEO: Hermann Requardt
CFO: Michael Sen
■ Industry Automation
■ Drive Technologies
■ Service
■
■
■
■
■
■
■
■
■
■
■
■
■
■
■
Industry Solutions
Rail Systems
Mobility & Logistics
Low and Medium Voltage
Smart Grid
Building Technologies
■ Osram
Fossil Power Generation
Wind Power
Solar & Hydro
Power Transmission
Oil & Gas
Energy Service
Imaging & Therapy
Clinical Products
Diagnostics
Customer Solutions
Power Distribution
Osram
Building Technologies
listing planned
Mobility
Page 13
September 19, 2011
Dr. Michael Suess
© Siemens AG
Siemens Energy Sector –
Key figures in Q3 YTD FY 2011
Key figures –
Q3 YTD FY 2011
Revenue
Revenue by region
19.9
Europe,
Africa,
CIS, Near
Middle
East
Asia, Australia
15%
New orders
26.0
19.9
Sector profit
1)
3.5
28%
(billion €)
Employees
(billion €)
57%
Americas
95,246
1) Incl. AREVA disposal gain and arbitration result
Page 14
September 19, 2011
Dr. Michael Suess
© Siemens AG
Germany ‚Focus Renewables‘ scenario: In 2030
about 60% of power generation from Renewables
Power Generation *)
Installed Capacity
TWh
GW
271
615
591
40,8 (7%)
6,2 (1%)
37,8 (6%)
17,4 (3%)
47,3 (8%)
Other RE
95,3 (16%)
Solar
+3%
p.a.
190,7 (31%)
Wind
Solar
74,5 (28%)
Wind
10,6 (7%)
11,6 (4%)
Hydro
45,3 (30%)
42,1 (16%)
Gas
21,3 (14%)
24,4 (9%)
Coal
2009
2030
152
9,8 (6%)
262,7 (44%)
23,4 (4%)
6,2 (4%)
25,7 (17%)
Hydro
10,0 (7%)
136,5 (22%)
22,9 (15%)
Gas
Oil
1,2 (0%)
Nuclear
134,9 (23%)
120,6 (20%)
Oil
Coal
1,4 (1%)
Nuclear
2009
2030
Other RE
108,8 (40%)
78,3 (13%)
12,5 (2%)
7,8 (3%)
*) without Import and Export saldo
Page 15
September 19, 2011
Dr. Michael Suess
© Siemens AG
Germany ‚Focus Gas‘ scenario: 2030 about 60% of
power generation from Gas
Power Generation *)
Installed Capacity
TWh
GW
615
591
40,8 (7%)
6,2 (1%)
37,8 (6%)
17,4 (3%)
Other RE
42,9 (7%)
Solar
152
78,3 (13%)
Oil
44,7 (7%)
+1%
p.a.
12,5 (2%)
129,3 (21%)
Wind
22,1 (4%)
Hydro
9,8 (6%)
22,9 (15%)
Oil
2009
Solar
49,3 (25%)
Wind
11,3 (6%)
Hydro
63,7 (33%)
Gas
12,3 (6%)
Coal
Gas
134,9 (23%)
9,8 (2%)
49,0 (25%)
10,6 (7%)
45,3 (30%)
1,2 (0%)
Other RE
25,7 (17%)
262,7 (44%)
Nuclear
7,4 (4%)
6,2 (4%)
10,0 (7%)
362,7 (59%)
194
Coal
Nuclear
21,3 (14%)
2009
2030
1,4 (1%)
2030
*) without Import and Export saldo
Page 16
September 19, 2011
Dr. Michael Suess
© Siemens AG