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Schutzvermerk / Copyright-Vermerk The Smart Grid by Siemens. Solutions to better manage energy system change. Dr. Jan Mrosik CEO Smart Grid Division Infrastructure & Cities Sector Siemens AG Amsterdam, October 2012 © Siemens AG 2012. All rights reserved.

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Schutzvermerk / Copyright-Vermerk

The Smart Grid by Siemens.

Solutions to better manage energy system change.

Dr. Jan Mrosik CEO Smart Grid Division

Infrastructure & Cities Sector

Siemens AG

Amsterdam, October 2012

© Siemens AG 2012. All rights reserved.

Schutzvermerk / Copyright-Vermerk

Page 2

Energy systems worldwide are changing…

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 3

18% 5%

22% 20%

21% 9%

21% 10%

12% 3%

Distribution

Losses

Non-technical

Losses

Key drivers for new solutions

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 4

The European energy infrastructure faces fundamental changes

Large scale extension of renewable und decentralized generation

Challenges

Capacity enhancement and modernization of generation and grid

infrastructures

Smart Meter roll out

Contain energy prices to remain competitive

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 5

Smart Grid offers solutions

Balancing generation & demand, new business models

Reliability through auto-matic outage prevention and restoration

Efficient generation, transmission, distribution & consumption

Full transparency on distribution level and automated loss prevention

Load management & peak avoidance

Renewable and distributed generation

Aging and/or weak infrastructure

Cost and emissions of energy supply

Revenue losses, e.g. non-technical losses

Limited generation and grid capacity

Challenges in changing energy

system

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 6

Siemens Smart Grid offers an end-to-end portfolio designed to provide

constant energy in a time of constant change

End-to-End Security

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 7

Smart Grid: Key enabler of the future energy infrastructure

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 8

Automated distribution grids assure overall system stability

Transparency on distribution level enables stability also at TSO level

Decentral automation supports efficient renewable integration

Additional data enable IT based system optimization

Transformer

Low Voltage MV Switchgear

Smart Secondary Equipment

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 9

Electric Vehicles

Wind

Residential Metering

Appliance

Sub Metering

Smart Metering will add value beyond automated billing

Meter Data enable limitless applications through MDM systems

MDM enables use of meter data to stabilize and manage the grid

MDM drives customer engagement and affiliation

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 10

Prevent critical peak load situations from escalating

Reduce need for base load capacity extension

Establish new business models for utilities through Demand

Response programs

Demand Response for increased stability and additional value add

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 11

Virtual Power Plants help getting a grip on decentralized generation

System stabilization through forecast-based load balancing

Inclusion of smaller units in economically optimized fleet management

Enhanced business cases for small decentralized generation e.g.

participation in reserve markets or energy exchange

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 12

Operational and enterprise IT integrate

Business analytics is the key to ultimate optimization of utility

business

Energy IT will grow with a multitude of use cases

Business analytics is key to optimal system management

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 13

Key requirements to safeguard innovative infrastructure development

Security of investments in Grid extension and modernization

Permissive Smart Market schemes

Legal framework for smart metering and MDM

Sector Infrastructures & Cities – Smart Grid Division

© Siemens AG 2012. All rights reserved.

October 2012 Page 14 Author

Successfully implemented –

today.