Energy Transmission and Distribution Services Business unit presentation © Siemens AG 2009 Energy Sector Content Organization Mission and Vision Portfolio / Market Challenges and Chances © Siemens©AG 2010. All rights Siemens AGreserved. 2009 Page 2 T&D Services 2010 Energy Sector Organization Siemens Energy Sector - Answers for energy supply Energy Products and Solutions - in 6 Divisions Oil & Gas Page 3 Fossil Power Generation T&D Services 2010 Renewable Energy Energy Service Power Transmission Power Distribution © Siemens AG 2009 Energy Sector Organization T&D Services Portfolio T&D Sales 17 Service Centers Asset Services (AS) Network Services Service Projects Monitoring Diagnostics and Cable Services Transformer Services Switchgear and Field Services CEO: Dr. A. Heine Page 4 T&D Services 2010 Metering Services (MS) Smart Metering/MDM Grid Metering Commercial & Industrial Metering/Energy Management Smart Grid & Electric Vehicle Metering Operational Services Management Power Technologies International (PTI) Network Consulting Software Solutions Power Academy TD CFO: Ms. G. Sturm © Siemens AG 2009 Energy Sector Organization T&D Services – our approach to the market Our international Service Center structure provides market access locally SC Scandinavia SC International SC Netherlands SC Germany SC UK SC Iberia SC USA SC France SC Mesoamérica SC Italy SC Austral Andina SC CEE SC South Asia SC Brazil SC Middle East SC Africa Local presence in 33 countries Page 5 T&D Services 2010 SC Pacific © Siemens AG 2009 Energy Sector Organization T&D Services within the Energy Conversion Chain Asset Services (AS) Metering Services (MS) Power Technologies International (PTI) Page 6 T&D Services 2010 © Siemens AG 2009 Energy Sector Content Organization Mission and Vision Portfolio / Market Challenges and Chances © Siemens©AG 2010. All rights Siemens AGreserved. 2009 Page 7 T&D Services 2010 Energy Sector E D SE Mission and Vision Mission We provide Expert Solutions & Services for Energy Networks Vision We will set the Market Benchmark for Solutions and Services enabling the Networks of the Future Page 8 T&D Services 2010 © Siemens AG 2009 Energy Sector Content Organization Mission and Vision Portfolio / Market Challenges and Chances © Siemens©AG 2010. All rights Siemens AGreserved. 2009 Page 9 T&D Services 2010 Energy Sector Portfolio Asset Services Network Services Service Projects Monitoring Diagnostics and Cable Services Transformer Services Switchgear and Field Services Network Services Remote Diagnostic Centre Grid Integration WP Service T&D equipment WP Trafo Servies Substation (S/S) Services Product-related Services Maintenance, Spare Parts, Refurbishment, Upgrades, Extension MV Retrofit O&M (e.g. HVDC Link) Our Strengths Supplied more than 4.000 Medium Voltage retrofit trucks over 5 years Repair and maintenance of more than 3.000 High Voltage bays per year More than 30 Operation & Maintenance contracts effective More than 150 service contracts effective Supplier for condition monitoring solutions for installed and new substation assets Remote Diagnostic capabilities for all kind for network assets Brand responsibilities: Siemens (International), Reyrolle (UK); Merlin Gerin (France); Magrini Galileo (Italy), Elin Holec High Voltage (Netherlands), Allis Chalmers (USA) Page 10 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio Asset Services Requirements O&M Reference Moyle Interconnector is a 500 MW High-Voltage direct current (HVDC) Link between Scotland and Northern Ireland Service and Maintenance contract to secure functionality of HVDC-connection Maintenance management and asset reporting Computerized maintenance management system Spare parts management Outage planning and Safety management 24/7 365 days a year on-call support, need for immediate on-call help in the case of a fault situation Customer Benefits Customers process house is validated and verified by our expert system, to increase reliability and quality of link Customer: National Grid Moyle Interconnector Country: UK and Ireland Page 11 T&D Services 2010 Reduce operational expenditures of network Allows for faster detection of problems with the link © Siemens AG 2009 Energy Sector Portfolio Asset Services Requirements Reference Remote Diagnostics Service Center Monitoring of the equipments´ and plants´ condition Parameters measurements and recording of alarms, events … Equipment operations Reporting and data storage Customer Benefits Currently are 14 wind farms connected Page 12 T&D Services 2010 Improvement of service quality Reduction of manpower costs of interventions for false signals and alarms Optimization and reduction of costs of maintenances Reduction of shutdown times of power plants © Siemens AG 2009 Energy Sector Portfolio Metering Services Smart Metering/MDM Grid Metering C&I/Energy Management Grid Metering Smart Grid & EV Metering I&C Metering Smart Metering Operational Services Our Strengths Operating a portfolio of 10,000,000 customers in the UK Performing over 150,000 field jobs per day in the UK Consult, design, build and operational services for traditional and smart metering Sole provider of gas prepayment metering services in the UK Full domain expertise across all aspects of utility process and systems integration Class-leading partnerships with eMeter, L&G, SAP, IBM, Software AG Recognized partner for Meter Data Management implementation Page 13 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio Metering Services Requirements Reference Support the customer adapting the MDMS to the newly defined process landscape and existing infrastructure of a metering service provider Provide core components for meter data acquisition and an advanced meter data management system Meet all requirements of the German Energy Management Act (monthly billing; provision of load-variable, daytime dependent tariffs) Provide a reliable, proven and scalable MDM System Customer Benefits Innovative smart metering solution for meter data acquisition and data management Holistic solution based around the meter data management system (MDM) Enables the customer to expand its position as an independent metering services provider in a liberalised metering market for up to 3 million meter points Customer: Umetriq Country: Germany Page 14 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio Metering Services Requirements Reference Design, build and installation of high-accuracy metering systems for offshore and onshore connection of a 504MW wind farm located 26Km off the English coast. 140 3.6MW wind turbines, across two sites, are connected via three 132KV cables to a new substation at Sizewell in Suffolk. Metering system comprised of 16 COP2 0.5s metering circuits in the offshore substation linked to 3 circuits at the on shore substation. Requires delivery of full onshore and offshore provisioning service. Customer Benefits Customer Benefits Exceptional reliability and accuracy over installed lifetime. Provides robust, low maintenance, high redundancy solutions with options for remote monitoring and diagnostics. Depth of functionality provides Dynamic System Monitoring (DSM), Customer: Airtricity Country: The United Kingdom Page 15 T&D Services 2010 Quality of Supply (QOS) indications, revenue metering and fault recording. © Siemens AG 2009 Energy Sector Portfolio Power Technologies International Network Consulting Software Solutions Power Academy TD Network Consulting Software Solutions Power Academy T&D (Training) Our Strengths Operate worldwide on a manufacturer neutral basis Global market leader in network consulting and software solutions for power system analysis and design with the competence in system planning, power system dynamics, power quality and protection Network Consulting: 550 consulting projects per year Software Solutions: 1.500 SW customers 19 locations in 15 countries worldwide Page 16 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio Power Technologies International Siemens Power Academy TD Scheduled or customized trainings….. for Transmission & Distribution Systems incl. Smart Grids at Power Academies or Customer Sites locations worldwide with more than 13.000 trainees per year Scope Single courses and workshops: theory, practice, combination of both Competence Development Programs Certification of different knowledge levels Training Packages: Technology & Business; various technical disciplines Assessments of technical personnel Customer Benefits Improving grid operation by leveraging all product features Increasing operational safety by building experience in practical exercises Supports technical decision making Professional course execution in small groups High practical relevance by interactive integration of real case studies Page 17 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio Power Technologies International Description Case Study Comprehensive network study for grid interconnection and offshore wind farm network Network structure and neutral grounding scheme Power flow calculations Short circuit current calculations Protection system design and relay coordination Design of earthing system Analysis of harmonics Customer Benefits Customer Benefits Customer: Lillgrund Wind Farm Country: Sweden Page 18 T&D Services 2010 Optimum design for offshore wind farm network and grid interconnection Technical performance meeting all requirements Economic optimization for given technical specifications Safe operation standards Reliability in operation © Siemens AG 2009 Energy Sector Portfolio Power Technologies International Description Case Study PSS® Product Integration: PSS®E + MOD® + PSS®ODMS Software Comprehensive enterprise network modeling solution for both Planning and Operations network model data Creation of an entirely new PSS®ODMS module Project Modeling, for interactively managing planned network projects in advance of commissioning and exporting future cases to PSS ®E upon demand Migration of base model and planned project data from Powerlink’s legacy system into PSS®ODMS Customer Benefits Understand the Past with ODMS + PI Historian Re-enact the sequence of events in the network Investigate how to avoid future contingencies Manage the Present with ODMS + EMS/SCADA Improve reliability though CIM/XML format real-time data from multiple EMS/SCADA systems Customer: Powerlink Country: Australia Page 19 T&D Services 2010 Secure the Future with PSS/E + MOD Model, preview and verify planned network changes in advance of commissioning Identify the system reliability limits and plan for reinforcements © Siemens AG 2009 Energy Sector Portfolio Energy Customer Support Center Mission Portfolio Ensuring availability 24h a day Central contact for all questions concerning Energy Sector Ensuring responsiveness Boosting customer satisfaction Call Center operation (ECSC) Dispatch competency (Energy, Siemens) Customer Support Management (CSM) database First-Level-Support / Back office Contract customer assistance Emergency process Complaint and escalation management Outbound surveys Evaluations Process Energy Customer Support Customers Support Agents Experts in BUs/Regions st central 1 -level 1st-Level, central Customers decentralized 2nd-level CSM database ECS steering committee Energy Guideline Customer Support Page 20 T&D Services 2010 © Siemens AG 2009 Energy Sector Portfolio T&D Services’ comprehensive portfolio supports Siemens’ global environmental initiatives Design of Transmission Network for MASDAR by PTI Consulting Team Remote Service offerings to predict and avoid complete failures up to blackout situations Meter Data Management implementation as one core element of Smart Metering O&M, performance contracting of T&D systems for renewables (windfarms, solar, small hydro) System Analysis and Consulting by PTI Page 21 T&D Services 2010 Different kinds of SF6 services to avoid drastic green house consequences (e.g. evacuation monitoring and training) Bild © Siemens AG 2009 Energy Sector Markets Strongest markets for T&D Services – still traditional economies Contribution of clusters to World SE Market 2008 Major markets USA North West Europe South West Europe Germany Pacific Drivers for ‘T&D services’ specifics Future market trends Size of installed base Operation & Maintenance for Renewables Maturity of installed base (>30 years) eCar Infrastructure Technical knowledge of staff Consulting Network Services Market liberalization Retrofit Solutions Service mentality Smart Metering Services / Smart Grid Page 22 T&D Services 2010 © Siemens AG 2009 Energy Sector Content Organization Mission and Vision Portfolio / Market Challenges and Chances © Siemens©AG 2010. All rights Siemens AGreserved. 2009 Page 23 T&D Services 2010 Energy Sector Challenges and Chances Future energy supply and related challenges Three global megatrends in the energy sector Demographic dynamics Resource scarcity Population growth: 7.5 bn in 2020 (+1.1 bn) Power consumption: +5.2% p.a. in emerging regions and 1.4% in developed world Geopolitics: Global emissions: 70% of world oil and gas 40% increase in air pollusupplies only in a few countries tion over past 20 years Fuel diversity: Climate change: 100% increase in oil prices Global warming limited to an over last 2 years accelerates average increase of shift to broader fuel mix 2 degrees Celsius Megacities (>10 million inhabitants): 27 megacities in 2025 Quellen: UN, IEA, Stern Page 24 T&D Services 2010 Environmental focus © Siemens AG 2009 Energy Sector Challenges and Chances Changing needs, growing demands Energy efficiency Increased energy trading Greater network complexity and vulnerability Network conditions and requirements Cost pressure Fluctuating in-feed Aging infrastructure and lack of experts Integration of renewable energy sources Increasing distance between generation and load Power quality Integration of distributed energy resources Integration of intelligent buildings High supply quality Legal and regulatory framework CO2 reduction External influences Page 25 T&D Services 2010 Operational factors © Siemens AG 2009 Energy Sector Challenges and Chances The solution: Smart Grid Page 26 T&D Services 2010 © Siemens AG 2009 Energy Sector Challenges and Chances T&D Services’ Strategic Direction Deep understanding of our customer’s value chain and levers to improve their competitive position Achieve better coverage with systematic customer feedback and better share results across organization Transparency describe and quantify value for main customer groups Develop and communicate comprehensive Siemens answer from customer‘s perspective Page 27 T&D Services 2010 Definition of the entry point in to closed loop, comprehensive customer care Condition Assessment Continuous improvement of customer‘s Competitive position Service Strategy • Product Related Services • Value Added Services • Network Services Evaluation Recommendation Consulting Continuous development of our own competencies Specific skills, e.g. Condition Assessment Software Development Remote Diagnostic Services Management skills, e.g. Fleet management capabilities for all assets (O&M contracts) Systematic supplier qualification Smart Metering value chain “Environmental” portfolio Project Management Further best practice exchange and process harmonization Both organic growth and by acquisition © Siemens AG 2009 Energy Sector Challenges and Chances Recent Innovations@T&D Services Remote Diagnostic Center (Italy) The Remote Diagnostic Center assures to all connected wind farms the monitoring of the equipments´ and plants´ condition while a significant cost reduction can be realized, due to less maintenance costs and higher plant availability Meter Data Management Meter Data Management Systems (MDMS) form the core of the “meter-to-bill” Smart Metering solutions, enabling utilities to realize the advanced functionality of Smart Metering & Smart Grid. In association with partner eMeter, Siemens MDMS deployments are innovative in many aspects (e.g. proven market leading scalability to 20m meter points). PSS®E Enhancements Frequency of overloads The PSS®E software version 32 includes a number of dramatic enhancements driven by customer requests. PSS®DB improves data handling and compatibility. Several upgrades to the graphical user interface add capabilities for results presentation and analysis. Algorithmic updates strengthen the performance in Substation Reliability Assessment, (n-1-1) analysis and in power flow and dynamic calculation. Page 28 T&D Services 2010 © Siemens AG 2009 Energy Sector Challenges and Chances Customers evaluation of our T&D Services performance I would like to offer my thanks to the Asset Services team who was a tremendous help in getting us back on line in a timely manner. Project Management, Yanke Energy, USA Siemens personnel dealt with are knowledgeable, professional, and provide equal or better service than other manufactures. Maintenance Department, WAPA, USA Siemens is one of the organizations with which we’d naturally choose to undertake a Joint Activity Solutions project. Because of its size, stability and financial strength, it’s clearly going to be there for us in the future. Network Strategy Department, National Grid, UK I would like to pass on my personal thanks to you and your team in achieving the strategic cutover as planned. It is clear that the two teams have worked well together to reach this milestone. Transformation Department, British Gas, UK Page 29 T&D Services 2010 © Siemens AG 2009 Energy Sector Challenges and Chances Compliance is an essential part of integrity, and fundamental to our business Our Compliance Program instills this awareness in all of our managers and employees Prevent Detect Respond "Tone from the Top" Compliance Organization Training Policies, Procedures and Compliance Tools Program communication Continuous improvement Centralization Compliance investigations Consequences for misconduct Compliance reviews Global case tracking Monitoring effectiveness Compliance controls Compliance Helpdesk (incl. Global Ombudsman function) Integration in personnel processes Page 30 T&D Services 2010 © Siemens AG 2009 Energy Sector Thank you © Siemens AG 2009 Energy Sector