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Living Energy
The Magazine for Energy Leadership



Issue 1 | November 2009




                                                            Smart Grids
                                                            A Visionary Approach to
                                                                 Energy Intelligence




                                         A New Era in
                                     Energy Efficiency
                                               ■ The WEC’s Christoph Frei Weighs In
                                      ■ A Tour of Innovative Installations Worldwide




                                 Clean Energy, Danish Style
                                             An Essay from a Land ahead of Its Time
Editorial




                                                                                         Wolfgang Dehen,

Dear Reader,                                                                             Member of the Managing
                                                                                         Board of Siemens AG
                                                                                         and CEO of the Energy Sector



Never before has the smart manage-         inaugural issue will focus on the             being one of the companies world-
ment and use of energy paid off as         magic words: energy efficiency.               wide with the most transparent busi-
much as it does today. Why? Because        Efficiency can be achieved along the          ness processes. And excellent, finally,
energy efficiency provides both eco-       entire energy conversion chain – from         not only describes our products, but
nomical and ecological benefits. On the    the production and transport of oil           above all our global team. Well over
one hand, the reduced consumption          and gas and the various types of power        80,000 people at Siemens Energy work
of resources costs less, offering enor-    generation, to power transmission             with passion, commitment and a pio-
mous savings potential for compa-          and distribution and ultimately the           neering spirit on finding solutions
nies. And on the other hand, nature        consumption of electricity. In all our        meeting the needs of our customers.
profits doubly: Increasingly scarce fos-   work, we clearly focus on the needs           I hope you will enjoy the informative
sil resources are conserved and CO2        of our customers. Some 17,500 engi-           articles, interviews and facts featured
emissions are reduced.                     neers at Siemens Energy work around           in this initial issue of our business-
We, the Siemens Energy Sector, want        the globe on developing products              to-business magazine “Living Energy.”
to offer a new platform for the theme      and solutions that help our customers         I wish you a stimulating new view
of energy as a forum for sharing our       achieve their individual efficiency           of the world of energy!
know-how with our customers and            goals.
partners. And because we feel the most     Innovative, responsible, excellent –          With best regards,
pleasant form of reading is still brows-   these are the three values on which all
ing through an interesting magazine,       our actions are based. Innovations
we have launched “Living Energy”           like our new SGT5-8000H gas turbine
just for you. In our new publication,      or the world’s first 800-kV HVDC
prominent experts and prize-winning        transmission line. Responsibility that
journalists will explore one of the        is reflected in the way we work with
most urgent challenges of our time:        our customers and stakeholders.
How can one secure reliable and            Siemens, for instance, has been hon-
affordable energy supplies that also       ored this year for the tenth consecu-
protect the climate and environment?       tive time for its sustainable business
Appropriately, the articles in this        practices. Responsibility also means




                                                       Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 3
Content                                                                                                                                                                                                                                                                                          Content




                                                    06                                                      36                                                                                   44                                                          50
   Content                                          The future of undersea oil
                                                    exploration – in Norway now
                                                                                                            Renewable energy:
                                                                                                            North Sea turbines
                                                                                                                                                                                                 Bavaria: Putting the world’s
                                                                                                                                                                                                 largest gas turbine into operation
                                                                                                                                                                                                                                                             Urban integration of high-voltage
                                                                                                                                                                                                                                                             substations from Doha to California




Cover Story                                                                                    03   Editorial                                                                                                      Features
                                                  06 Living Energy recently secured                                                                                                          Extolling         24 Photovoltaic                                36 Offshore Wind Power
                                                     an exclusive interview with Switzer-                                                                                                    the virtues of       Using the sun’s energy to benefit              The formidable North Sea off
                                                     land’s Christoph Frei, Secretary          58   Essay                                                                                    “Smart Grids”:       mankind is not a new idea, but                 the coast of Suffolk in England will
                                                     General at the World Energy Council                                                                                                     Siemens’ Ralf        today, Siemens is leading the way              soon be home of the largest offshore
                                                     and former Senior Director of Energy                                                                                                    Christian            toward capturing its power efficiently         wind farm in the world, providing
                                                     Industries & Strategies at the World                                                                                                    Page 28              on much greater scale with state-              a reliable source of clean energy to
                                                     Economic Forum, in which he can-          62   In Short                                                                                                      of-the-art photovoltaic technology.            nearly half a million homes.
                                                     didly addresses the global problem
                                                     of energy demand and consumption
                                                     vs. energy supply and efficiency.                                                                                                                         28 Smart Grids                                 44 Environmentally Friendly Energy
                                                     For an accompanying article, energy       70   Imprint                                                                                  Capturing CO2
                                                                                                                                                                                                                  Finding smarter ways to operate                To comply with increasingly tighter
                                                     specialist and author Craig Morris pro-                                                                                                                      power distribution grids and updat-            EU regulations on emissions from
                                                                                                                                                                                             emissions in
                                                     files ten groundbreaking projects in                                                                                                                         ing antiquated metering systems                fossil fuel power plants, Siemens has
                                                                                                                                                                                             Belgium with
                                                     various sectors that he visited around                                                                                                                       is a worldwide trend, resulting in             stepped up its research and develop-
                                                                                                                                                                                             T-Power’s
                                                     the globe, all aimed at increasing        71   Calendar                                                                                 Richard Snow
                                                                                                                                                                                                                  savings on electricity, costs, “greener”       ment in carbon capture technology.
                                                     efficiency in the energy supply chain.                                                                                                                       energy consumption, and fewer
                                                                                                    Trade Fairs and


                                                                                                                                 Photos: Ruud Baan, Frédéric Guerdin, Kurt Paulus, Siemens
                                                                                                                                                                                             Page 32
                                                                                                                                                                                                                  problems with power outages.
                                                                                                    Congresses                                                                                                                                                50 Urban Integration
                                                                                                                                                                                                                                                                 Someday, high-voltage substations
                                                                                                                                                                                                               32 Financing                                      may no longer blemish urban land-
                                                                                                                                                                                                                  Financing a new combined-cycle                 scapes. In innovative projects around
                                                                                                                                                                                             Scottish and
                                                                                                                                                                                                                  power plant in Belgium was a                   the world, they are already being
                                                                                                                                                                                             Southern
                                                                                                                                                                                                                  success despite difficult economic             integrated into city streetscapes in
                                                                                                                                                                                             Energy’s Colin
                                                                                                                                                                                                                  times, thanks to the project’s strong,         not only aesthetically pleasing, but
                                                                                                                                                                                             Hood on wind
                                                                                                                                                                                                                  reputable partners, its solid busi-            also environmentally conscious ways.
                                                                                                                                                                                             power for
                                                                                                                                                                                                                  ness plan, and the integrity of its
                                                                                                                                                                                             the future
                                                                                                                                                                                                                  purpose.
                                                                                                                                                                                             Page 36




4 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy                                                                                                                                             Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 5
Energy Efficiency




World Energy Council head
Christoph Frei is also an Adjunct
Professor and Advisor to the
President of the Swiss Federal
Institute of Technology, Lausanne
(EPFL), Switzerland, where he
earned his PhD in energy policy
                                    “There Is a Lot of Work
and sustainable development
in 2001.
                                     to Do Everywhere”
                                     Christoph Frei, Secretary General of the World Energy Council
                                     and former Senior Director of Energy Industries & Strategy at
                                     the World Economic Forum, spoke exclusively to Living Energy
                                     on the future of energy.
                                     Interview by Craig Morris




                                                                    What is the World Energy Council’s            Will the drop in energy demand
                                                                    forecast for energy consumption?              slow down economic growth?
                                                                    FREI: There will be great regional            FREI: Most economists now agree that
                                                                    differences. In our scenarios, we ex-         energy consumption and economic
                                                                    pect energy demand in the developing          growth are increasingly decoupled in
                                                                    world to continue to grow strongly,           industrialized countries. I don’t think
                                                                    but the developed world should actu-          we have too much to worry about
                                                                    ally be able to meet a large share of its     here. Lower energy consumption does
                                                                    slightly growing energy demand from           not mean a lower standard of living.
                                                                    increased efficiency – and meet possi-
                                                                    bly up to 40 or 50 percent of the cur-        Where are we going to get all this
                                                                    rent Kyoto targets through efficiency         efficiency from?
                                                                    measures.                                     FREI: There are a lot of areas. To take
                                                                                                                  one example, we have tremendous
                                                                    That is the demand side – will                potential in buildings, where a large
                                                                    production be able to keep up?                chunk of our energy is consumed –
                                                                    FREI: You are referring to the idea           and where little attention has tradi-
                                                                    of peak oil. The overall trend is rising      tionally been paid to energy efficiency.
                                                                    prices as we run out of easy oil, and         Mobility is another growing area of
                                                                    prices will rise even further when            interest. And roughly 50 percent of our
                                                                    we get an international carbon price.         electricity is consumed in electric
                                                                    As prices rise, of course, demand and         motors, which generally do not run
                                                                    emissions drop. But this is the goal.         optimally, so the potential here is
                                                                    If we return to the question of the scar-     great. In the production industry, a
                                                                    city of resources, you have to look at        lot of systems are quite old and need
                                                                    each source of energy on its own. If we       to be modernized. So there is really
                                                                    talk about oil and gas, it is clear that      a lot of work to do everywhere.




                                                 Photo: Ruud Baan
                                                                    easy oil is becoming scarcer, but at
                                                                    the same time, unconventional sourc-          Do you think people are willing
                                                                    es are gradually becoming profitable          to become more efficient?
                                                                    and will partly counteract that trend.        FREI: Mobility is an interesting field


                                                                                Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 7
The Energy Conversion Chain:                                                                                                                                                                                Renewables
  From Start to Finish                                                                                                                                                                                        7. UK Wind Farm: Standing in the Sea


                                                                                                                                                                                                                                                                                                                               Power Distribution
                                                                                                                                                                                                                                                                                                                               9. E-DeMa in Germany: RuhrArea
                                                                                                                                                                                                                                                                                                                                  Model Region
                                                                                                                                                                                                                                                                                                                              10. EDISON in Denmark: Increasing
                                                                                                                                                                                                                                                                                                                                  E-Mobility




                      Oil and Gas                                                      Power Generation                                                                                                                      Power Transmission
                      1. Subsea Exploration in Norway: Not Science Fiction             4. Power Plant in Irsching, Germany: Technology of Tomorrow                                                                           8. Tapping Hydropower in China: Novel
                      2. Carbon-Neutral Pipeline                                       5. Modernizing Power Plants in Europe: Green Megawatts                                                                                   High-Voltage DC System Increases
                      3. Coal Liquefaction in South Africa: Synthetic Gas              6. It’s Payback Time – How a ControlSystem Upgrade Saves Money                                                                           Transmission Capacity by 60 Percent




                                                                                                                                                                                                                                                                                                                             For our author Craig Morris, the most
in this respect. The question of wheth-            astonishing figures. For instance, we       E-mobility will play an important role                                                                                                                                                                                        interesting part of the tour was “seeing
                                                                                                                                                                                                                                                                                                                             things in person and not just reading
er people are willing to drive cars with           currently have some 800 million cars        in this context. However, there are                                                                                                                                                                                           about them.” He was also especially in-
smaller, thriftier engines is an emo-
tional one. We do know, however, that
when prices rise, people are willing
                                                   on the road, but that number is set
                                                   to rise to 2,000 million by 2030 – that’s
                                                   a 2.5-fold increase. If we wanted to
                                                                                               a number of unknowns there as well:
                                                                                               The electricity supply will have to de-
                                                                                               liver on the demand surge, and we will
                                                                                                                                                                                                               Innovative Projects                                                                                           terested in demand management,
                                                                                                                                                                                                                                                                                                                             “which I have been following for years.”




                                                                                                                                                                                                               throughout the Energy
to switch to more efficient systems.               keep our emissions at the current level,    not only need tremendous amounts
For instance, when the price of a bar-             we would have to become 2.5 times           of lithium for the batteries once their
rel of oil recently rose to more than              more efficient in the sector of mobility    cost comes down, but also an industry
140 dollars, sales of SUVs plummeted.              – just to maintain the status quo. So       capable of effective recycling.
Gasoline prices dropped shortly there-
after and have since been rising again,
but we can clearly see that a small step
                                                   each vehicle is going to have to become
                                                   2.5 times more efficient, and that is
                                                   not going to be possible simply by
                                                                                               What do we have to do in Copenha-
                                                                                               gen to reach these efficiency goals?
                                                                                                                                                                                                               Conversion Chain
was made in the right direction.                   changing people’s behavior, not even        FREI: The main thing is to get an in-
If we take a look at how far we need to            with the kind of price increases that       ternational carbonprice mechanism.                                                                               Energy innovation – this catchphrase is on everyone’s lips in the globalized
go in the field of mobility, we see some           occurred last year.                         Anything less would simply not prop-
                                                                                               erly contribute to greater efficiency                                                                            world of energy. Siemens Energy Sector is the world’s leading supplier of
                                                                                               and energy security. The goal in Copen-                                                                          a complete spectrum for the generation, transmission and distribution of
                                                                                               hagen – and in subsequent policies, to
   Christoph Frei


                                                                                                                                                        Photo: haraldhoffmann.com, Graphic: Rainer Schubert
                                                                                               the extent that this goal is not reached                                                                         power and for the extraction, conversion and transport of oil and gas. Living
                                                                                               in December – has to be a strong in-
   Born in Switzerland in 1969, Christoph Frei became Secretary General at
                                                                                               ternational price for carbon.
                                                                                                                                                                                                                Energy invites you to take a look at ten of the most innovative projects along
   the World Energy Council in April 2009. He also has an assignment as Adjunct
   Professor and Advisor to the President of the Swiss Federal Institute of Tech-                                                                                                                               the entire energy chain, which our journalist researched or visited in person
   nology, Lausanne (EPFL). From 2001 to 2009, Frei was Senior Director of                     Is the developing world going to
   Energy Industries & Strategy at the World Economic Forum and a member of                    have to pay the same price for a ton
                                                                                                                                                                                                                – projects that soon may come to a power socket near you.In
   the Forum’s Executive Council. He holds an electrical engineering degree,                   of carbon as the developed world
                                                                                               does?                                                                                                            By Craig Morris
   an econometrics degree, a master in energy systems and a master in applied
   ethics and received his PhD from the Swiss Federal Institute of Technology,                 FREI: No, that is neither politically
   Lausanne, in 2001. Frei has led projects on energy security, energy poverty,                feasible, nor fair. There will have to
   sustainable biofuels, and innovation in cities.                                             be quotas that allow the developing                                                                              If we walk through Siemens’ energy                    begins: coal, oil and gas, and nuclear.       wind – have also increasingly become
                                                                                               world to continue its economic devel-                                                                            sector, we could start where the                      In recent decades, renewable energy           significant players. Siemens is a major
                                                                                               opment in the years to come.                                                                                     electricity supply chain traditionally                sources – in particular, solar power and      technology supplier in each of these


8 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy                                                                                                                                                                                                   Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 9
Energy Efficiency                                                                                                                                                                                                                                                                   Energy Efficiency




sectors, and in June of this year, the         a novel all-electric system to liquefy       In some projects, the positive environ-                            low offshore areas – the technology          Finally, there is my personal favorite:       to be better tailored to production –
company announced how various stim-            natural gas, thereby boosting its            mental impact is considerable, though                              sounds like it could never work when         smart grids. Siemens is working on            rather than the other way around,
ulus packages across the globe would           efficiency by as much as 50 percent.         it is not apparent at first glance. For                            you try to describe it, but since it does,   two projects in Germany and Denmark           which has been the case up to now.
affect it. Over the next three years,          A global leader in steam turbines,           instance, a new high-voltage DC trans-                             we will do our best to tell you how.         that will allow electricity consumption
the firm expects to sign 21 billion US         Siemens has retrofitted nuclear power        mission system that Siemens will
dollars worth of new contracts, nearly         plants to produce as much as 10 per-         complete in China in 2010 allows the
8 billion of which will be devoted to
renewables and energy efficiency.
The next stage in the electricity sup-
                                               cent more energy without any other
                                               modernization of the plant. And in the
                                               field of gas, Siemens is now putting
                                                                                            country to tap more hydropower in-
                                                                                            stead of adding new coal plants. The
                                                                                            CO2 emissions offset amount to a
                                                                                                                                                               Exploring New Territory in Fossil Fuels
ply chain is the transmission system.          into operation the world’s largest           whopping 33 million tons at the Yun-                               Oil and gas have been in the news a          Siemens products are used in all stages       Take a walk with us through three
Here, large central power stations hook        combined-cycle gas turbine in Bavaria.       nan-Guangdong project alone.                                       lot lately. With prices fluctuating wildly   of this sector: onshore and offshore          novel sites where Siemens is either in-
up to the high-voltage power grid,             In the field of coal liquefaction, Siemens   In other projects, the positive environ-                           at the pump, consumers are perhaps           drilling, the use of electric drives for      creasing the efficiency of the overall
which later connects via transformers          has provided the world’s largest air         mental impact is obvious. As mentioned                             more aware of changes in the crude           natural gas liquefaction, the coal-to-liq-    process or allowing previously
to the medium-voltage distribution             separation compressors to a South            above, Siemens is a global leader in                               oil market than they are of any other        uid process, pipelines, and terminal          inaccessible resources to be tapped.
system, to which smaller generators            African plant. And Siemens may soon          steam turbine generators, so it comes                              source of energy.                            management.
are often connected – wind turbines,           be providing an electric compressor          as no surprise that Siemens is a leader
for instance. From there, the grid             for a Norwegian subsea oil platform          in the steam turbine generator sets
branches off into the low-voltage level        that has to run maintenance-free at          for concentrated solar power (CSP).                                1. Subsea Exploration in Norway: Not Science Fiction
that serves individual buildings.              a depth of 3,000 meters underwater.          But fewer people may be aware that
At each of these stages, Siemens is            In all of these areas, efficiency is cru-    Siemens may have the longest history                               You may have heard of the recent             futuristic station. As easily exploit-        to have people manning the station.
working to improve energy efficiency           cial. After all, fossil and nuclear plants   in offshore wind, having taken over                                best seller The Swarm by German              able oil and gas fields become rarer,         The solution is to have robots operate
and diversify energy production. In            will continue to be our main sources         Bonus, the firm behind Vindeby, one of                             novelist Frank Schätzing. The fully          engineers are working to reach less           independently. For several years,




                                                                                                                                       Illustration: Siemens
the following pages, we invite you to          of electricity for some time to come,        the first offshore wind projects in the                            automated subsea oil exploration             accessible ones. One approach is to           Siemens has tested a prototype of its
accompany me on a visit to some of the         so efficient use of these resources will     world back in 1991. And in a more                                  described in the book is not fiction,        move further out to sea. But at depths        electric-driven compressor in an on-
most innovative projects that Siemens          both extend the range of these energy        spectacular development, Siemens has                               however. Siemens is developing a             of 3,000 meters below sea level, water        shore application in Holland. It will
is working on. At midstream in the             sources and reduce the environmen-           come up with a solution to allow wind                              compressor with an integrated elec-          pressure is a considerable challenge.         provide maintenance-free operation
value chain, Siemens has developed             tal impact.                                  turbines to be put up outside of shal-                             tric motor that may be used at this          It is also impractical at such depths         at the required depths.



                                                                                                                                                                                                                                        People will still be stationed at sea level, but remote
                                                                                                                                                                                                                                         operated vehicles (ROV) will work on the seafloor to
                                                                                                                                                                                                                                     tap remote gas resources. Gas pipelines will then fill up
                                                                                                                                                                                                                                        right at sea from the ROV. It would be too difficult to
                                                                                                                                                                                                                                             have humans stationed so deep on the seafloor.




10 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy                                                                                                                                       Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 11
Energy Efficiency                                                                                                                                                                                                                                                                        Energy Efficiency




2. Carbon-Neutral Pipeline                                                                                                                                           Power Plants for the Future
In some respects, the Ruby Pipeline is         day – but even that is not special in the   the ones pumping the gas – will be                                        Central power plants are our main           operators tweak their processes to            cause the gas lines were in place,
nothing extraordinary. When it opens           USA, the world’s largest energy user.       powered by greenhouse-gas-free en-                                        source of electricity, and while distrib-   provide immediate efficiency gains al-        but the plant was partly already out
in early 2011, the 1,000-kilometer-            What sets off the Ruby from the rest        ergy. Their electricity mix will consist                                  uted power is becoming more com-            most overnight. Indeed, in one project,       of operation. Its now unprofitable
long, 1-meter-diameter tube will trans-        are its shoes. Size zero, to be precise.    of renewable fuels plus conventional                                      mon, central coal and nuclear plants        Siemens’ engineers helped an opera-           conventional gas-fired boilers once
port natural gas from the wilds of             Thanks to Siemens, the carbon foot-         fuels offset by carbon credits.                                           can be expected to continue to pro-         tor in the Netherlands to add 35 MW           replaced the oil-fired boilers that had
the US state of Wyoming to other west-         print of the pipeline will be null. This    “A carbon-neutral pipeline is a first,”                                   vide a large share of our electricity       of generating capacity in the short           themselves become unprofitable dur-
ern states: Oregon, California, Idaho,         is because the three STC-SV (08-5-A)        says CEO Tom Blades of the Siemens                                        for some time to come. In addition,         space of only 35 days.                        ing the oil crises in the 1970s. In a
Nevada and Washington. It will have            pipeline compressors, three 17-MW           Oil & Gas Division. “And that is where                                    since the 1980s, gas turbines have          The efficiency gains are even greater         way, this gigantic turbine is the third
a huge capacity – hauling some                 electric motors, and three Perfect Har-     we want to be in the oil and gas                                          been very popular as a way of quickly       in northern Bavaria, where Siemens is         generation at the plant in Irsching –
40 million cubic meters of gas per             mony drives that Siemens supplies –         business.”                                                                reacting to rising power demand.            testing the world’s largest gas turbine.      one that may soon set the industry
                                                                                                                                                                     Siemens has helped a number of plant        Siemens and EON chose the site be-            standard.

3. Coal Liquefaction in South Africa: Synthetic Gas
                                                                                                                                                                     4. Power Plant in Irsching, Germany: Technology of Tomorrow
Along with the USA and China, South            liquefied coal is an economic option.       In the coal-to-liquid process, high
Africa has considerable coal reserves.         Siemens has provided the country            concentrations of oxygen are needed
It also has a special history: During          with the world’s largest compressor         to produce “syngas” (synthetic gas).
the years of apartheid, an embargo was         for air separation. “The trend is toward    As air is cooled down to minus 180 de-
imposed on the country, which then             larger facilities,” says Jochen Domas,      grees Celsius, the various components
had to resort to coal liquefaction as          a Sales Director with Siemens. “Cus-        become fluid, allowing them to be
a way of producing fuel domestically.          tomers prefer to have one large plant       captured separately. Nearly pure oxy-
These days, South Africa can, of               rather than two smaller ones.” This         gen can thus be used for the combus-
course, buy oil on the global market,          approach lowers overall project costs       tion process.
but its prices have risen enough that          without reducing efficiency.




                                                                                                                                                                                                                                                               Author Craig Morris visits the world’s
                                                                                                                                                                                                                                                               largest gas turbine in an open-cycle
                                                                                                                                                                                                                                                               power plant. The turbine is already
                                                                                                                                                                                                                                                               installed and is currently waiting for
                                                                                                                                                                                                                                                               the steam turbine and balance of
                                                                                                                                                                                                                                                               plant to be added downstream.




                                                                                                                                                                                                                                                               itself has an efficiency of around
                                                                                                                                                                                                                                                               40 percent, and the downstream steam
                                                                                                                                                                                                                                                               turbine, which will operate at around
                                                                                                                                                                                                                                                               600° C, adds on another 20 percent-
                                                                                                                                                                                                                                                               age points. “The 600° C water steam
                                                                                                                                                                                                                                                               cycle with HRSG squeezes more out of
                                                                                                                                                                                                                                                               the exhaust gas. Temperature of the
                                                                                                                                                                     In Irsching, Bavaria, Siemens is put-       says, “Not only is this turbine extra         residual exhaust is then only around
                                                                                                                                                                     ting the world’s largest gas turbine        large, it also is extra efficient – thanks    85° C,” Fischer explains.
                                                                                                                                      Photos: Siemens, Kurt Paulus



                                                                                                                                                                     into operation in a combined-cycle          to reduced losses – and this brings           While Siemens’ F series gas turbines
                                                                                                                                                                     unit in cooperation with EON. As            overall operating costs down.”                currently makes up roughly two-thirds
                                                                                                                                                                     Siemens Program Manager Willibald           The firing temperature has been               of the firm’s gas turbine sales, Fischer
                                                                                                                                                                     Fischer explains, the prototype of          increased by about 100 K, “which plac-        says, “The H series is the technology
                                                                                                                                                                     this turbine – the H series – was built     es even greater challenges on the             of tomorrow. A lot of our customers
                                                                                                                                                                     in Berlin in 2007 and has since been        nickel-based alloys that stand directly       are very interested in this project, and
At Sasol’s coal-to-liquid plant in Secunda, South Africa, a series of chemical processes convert coal into synthetic fuels.                                          tested on site in Irsching. Fischer         in the hot-gas path.” The gas turbine         we receive a lot of visitors in Irsching.”


12 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy                                                                                                                                            Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 13
Two of Siemens’ staff get almost
directly to grips with the world’s larg-
est gas turbine, located at Siemens’
test facility in Irsching, Germany.




                                           Photo: Kurt Paulus
Energy Efficiency

The installation of a modern
steam turbine can improve
plant efficiency considerably.

                                                  5. Modernizing Power Plants in Europe: Green Megawatts
                                                  Often, aging power plants can be mod-       Region Europe, Asia, Middle East.             Another example is the coal plant
                                                  ernized to produce more power. For          One such project is the Borssele nucle-       in Farge near Bremen, Germany.
                                                  instance, Siemens can retrofit the rotor    ar plant in the Netherlands, where an         Here, the plant’s total capacity was in-
                                                  section of steam turbines used both         additional 35 MW were added on in             creased from 318 to 345 MW, with
                                                  in coal-fired and nuclear power plants      a mere 35 days. “The payback in such          CO2 emissions being reduced by up to
                                                  by applying novel blading and sealing       projects – the euro per megawatt – is         100,000 tons per annum. In the pro-
                                                  technologies. “I can think of a lot of      surprisingly great,” Henkel explains.         cess, the plant’s service life was ex-
                                                  examples where we have done that –          The new components extend the service         tended by 15 years. “We speak of this
                                                  at plants with outputs ranging from         life of the power plants, which are gen-      added generation as ‘green mega-
                                                  200 to 1,200 MW,” says Norbert Henkel,      erally at least 20 years old when mod-        watts,’” Henkel says.
                                                  Director Steam Plant Modernization          ernized, and they improve efficiency.




                                                  6. It’s Payback Time – How a Control-System Upgrade Saves Money
                                                  About 100 kilometers west of Phoenix,       extra hawkeyed on return on invest-           flexibility, plant security, as well as
                                                  Arizona (USA), the mountainous des-         ment and on improving competitive-            employee morale right after project
                                                  ert is the home of New Harquahala           ness in the merchant power playfield.         completion. Tangible savings totaled
                                                  Generating Company (NHGC), a com-           Both the owner and the plant saw              up to more than half a million dollars
                                                  bined-cycle, 1,080-MW gas-fired gen-        the opportunity of achieving their busi-      per year. Around two-thirds of it came
                                                  erating plant that sells “merchant”         ness objectives by upgrading the plant        from improved reliability and avail-
                                                  power. Unlike conventional utilities,       control system to Siemens’ fourth-            ability by significantly reduced control
                                                  merchant power plants, like NHGC, are       generation controls technology SPPA-          system trips, which kept the plant in
                                                  privately owned and sell power directly     T3000 in fall of 2007. They immedi-           closer alignment to its long-term ser-
                                                  to wholesale buyers at competitive          ately jumped into action. They were           vice agreements. The rest came from
                                                  rates in unregulated power markets.         not disappointed by the returns. The          savings of time and effort in adminis-
                                                  When it comes to justifying any new         plant saw intangible benefits from            tration. Numbers talk and they all
                                                  capital investment, NHGC’s owner is         various areas: system operability and         speak an important word: PROFIT.




                                                  Renewables: Offshore Wind
                                                  and Large-Scale Solar
                                                  Since last fall, Siemens has a Solar        molten salt runs through the glass            source of electricity. At least in theory.
                                                  Power Business with two focal points:       tubes atop the parabolic troughs.             In practice, offshore wind turbines
                                                  large-scale rooftop and ground-mount-       This approach allows salt to be stored        must withstand harsher weather
                                                  ed crystalline photovoltaic arrays, and     so the plant can run at night plus en-        conditions than onshore turbines do.
                                                  concentrated solar power (CSP). As          ables higher temperatures, and there-         Siemens is well positioned to offer
                                                  part of its intention to drive technology   by greater power production. Siemens          the most robust turbines on the mar-
                                                  in solar thermal power plants, Siemens      has a 90 percent share of the parabolic       ket. The world’s first offshore wind
                                                  in March 2009 bought a significant          CSP market with its steam turbines.           farm went up in 1991 off the coast of
                                                  stake in Italy’s Archimede Solar Energy.    Siemens is also focusing on a sector          Denmark. Siemens later acquired the
                                                  The company has innovated in CSP:           that has proven quite exciting offshore.      company behind that project: Bonus
                                 Photo: Siemens




                                                  Instead of using oil as the heat transfer   The energy potential per turbine is           Energy. As a result, Siemens has nearly
                                                  fluid in parabolic troughs, with the        much greater at sea, where wind veloc-        two decades of experience in the fledg-
                                                  heat being passed on to the molten salt     ities are higher and steadier than on         ling offshore wind market – more
                                                  in the boiler via a heat exchanger, the     land, making wind a more reliable             than any other company worldwide.


                                                                                                         Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 17
Energy Efficiency




                                                                                                                                                                                                       tached; these anchors prevent the                                      the turbine standing without sinking          for the generator at the top of the
                                                                                                                                                                                                       turbine from drifting across the sea.                                  it. The problem becomes even more             tower – is filled with heavy equip-
                                                                                                                                                                                                       The challenge here is to provide                                       difficult when we realize that the            ment.
                                                                                                                                                                                                       enough weight at the bottom to keep                                    turbine’s nacelle – the round casing




                                                                                                                                                                                                       Power Transmission –
                                                                                                                                                                                                       Enabling Large-Scale Clean Energy
                                                                                                                                                                                                       Around a century ago, one of the first                                 transport electricity from Niagara            direct current has begun making a
                                                                                                                                                                                                       standardization struggles in industrial                                Falls to Buffalo, New York, by demon-         comeback for transmission with the
                                                                                                                                                                                                       history took place between George                                      strating that AC was more efficient           latest technology. Indeed, most talk
                                                                                                                                                                                                       Westinghouse and Thomas Edison. In                                     than DC in power transmission.                about “super grids” revolves around
                                                                                                                                                                                                       what has become known as the “Battle                                   For most of the 20th century, direct          high-voltage direct-current (HVDC)
                                                                                                                                                                                                       of Currents,” Westinghouse and his                                     current was therefore mainly used to          transmission. Siemens is a forerun-
                                                                                                                                                                                                       colleague Nikola Tesla succeeded in                                    supply power directly to power con-           ner in this field.
                                                                                                                                                                                                       getting alternating current used to                                    sumers. But in an interesting reversal,



                                                                                                                                                                                                       8. Tapping Hydropower in China: Novel High-Voltage DC System
                                                                                                                                                                                                       Increases Transmission Capacity by 60 Percent
                                                                                                                                                                                                                                                                              were then installed on site.” In total,       site.” Once assembled, the equipment
                                                                                                                                                                                                                                                                              24 transformers with four different           is gigantic. “We increased the trans-
                                                                                                                                                                                                                                                                     YELLOW
                                                                                                                                                                                                             CHINA                                                     SEA    types are installed at each station           mission capacity by over 60 percent
                                                                                                                                                                                                                                                                   Shanghai   with one spare for each type. “If one         from around 3 to 5 GW at one go, and
                                                                                                                                                                                                                                                                  40 km       of the transformers needs to be re-           we are working on 6.4 and 7.2 GW in
                                                                                                                                                                                                                  Gezhouba                          M   W / 1,0
                                                                                                                                                                                                                                              1,200
                                                                                                                                                                                                              Anshun                                                          placed, it could take months to get           other projects.”
                                                                                                                                                                                                                                                                              a new one out here, so we chose to            “But the air clearance grew by 100 per-




                                                                                                                                                                                                                         3,
                                                                                                                                                                                                          Xingren




                                                                                                                                                                                                                            0 00
                                                                                                                                                                                                                      3,0                                                     keep one for each type in reserve on          cent in the process here,” Häusler




                                                                                                                                                                                                                                M
                                                                                                                                                                                                        Tian-             00




                                                                                                                                                                                                                                   W
                                                                                                                                                                                                                    1,2      MW




                                                                                                                                                                                                                                    /9
                                                                                                                                                                                                        shengqiao       25




                                                                                                                                                                                                                                       40
                                                                                                                                                                                                                           km
                                                                                                                                                                                                                                               Guangzhou




                                                                                                                                                                                                                                         km
                                                                                                                                                                                                                    1,800 M
                                                                                                                                                                                                                              W / 960 km
                                                                                                                                                                                                                       Zhaoqing                           Shenzen
                                                                                                                                                                                                       Kunming   5,000 MW
                                                                                                                                                                                                                              / 1,400 km




                                                                                                                                    Photos: Siemens, Kurt Paulus, Graphic: independent Medien-Design
                                                                                                                                                                                                       Sharing power in China: HVDC systems.


Off the shelf: Siemens has the right-sized turbines, ready today for commercial installation and operation.                                                                                            By providing an 800-kV direct-current
                                                                                                                                                                                                       transmission system, Siemens allows
                                                                                                                                                                                                       China to connect a large hydropower
                                                                                                                                                                                                       plant to its quickly expanding grid
7. UK Wind Farm: Standing in the Sea                                                                                                                                                                   instead of adding on additional coal
                                                                                                                                                                                                       plants. The remoteness of the site was
At the Lynn and Inner Dowsing Off-             will be surpassed by Greater Gabbard’s     You may be familiar with the slogan,                                                                         the first problem. “We specially de-
shore Wind Farms some 5 kilometers             504 MW – see p. 36.)                       “Weebles wobble, but they don’t fall                                                                         signed the actual transformer units to
off the shore of Lincolnshire, UK,             But the waters around these two proj-      down.” Siemens is using the basic idea                                                                       fit through the mountain tunnels by
Siemens has supplied 54 of its SWT-            ects off the coast of Skegness are         behind these toys for “floating” wind                                                                        train,” explains Marcus Häusler, Tech-
3.6-107 turbines for an overall capacity       relatively shallow, with a maximum         turbines: The bottom is weighted so                                                                          nical Director System & Equipment
of 194 MW, making these two adjacent           depth of around 13 meters. Siemens is      that the turbine always stands upright.                                                                      Engineering HVDC at Siemens. “The
projects the largest collective wind           going further to find ways of installing   There are three anchors on the seafloor                                                                      connector arms, the transformer bush-                                  Craig Morris (right) discusses the model of the HVDC station with Siemens Technical
farm in the world. (A year later they          turbines at much greater depths.           to which the turbine is flexibly at-                                                                         ings, as well as parts of the windings,                                Director Marcus Häusler.


18 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy                                                                                                                                                                                                         Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 19
Behemoths in action – as this “snapshot” from UHV DC transformer shows, the equipment is the size of the entire building.
                                                                    Those are not ants in the pictures, they are people.



                                                                    explains. Some of the equipment           10 meters up is a challenge.” Where           or North America too, but as Director
                                                                    therefore has to be twice as far from     possible, Siemens suspended some              Technical Marketing & Innovations
                                                                    the ground – 10 meters instead of         equipment to allow it to move flexibly        HVDC Dietmar Retzmann explains,
                                                                    5 meters up. “If you then consider that   during earthquakes while retaining            “China’s grids are incredibly dynamic.
                                                                    a single piece of equipment can weigh     the required distance from the ground.        The European grid would first have
                                                                    around 30 tons, and this region is        Siemens’ 800-kV DC transmission               to be expanded for this technology to
                                                                    prone to earthquakes, suspending it       could, of course, be used in Europe           be used properly.”




                                                                    Changes in Demand Side Management
                                                                    One level down from transmission          of power in the grid. For instance,           As intermittent renewable energy
                                                                    comes the distribution grid. Here,        heating and cooling loads are fairly          provides an ever larger share of our
                                                                    power begins to be channeled to spe-      easy to shift across the day. Air-condi-      electricity supply, such solutions will
                             Photo: Siemens, 3-D Graphic: Siemens
                                                                    cific consumers. At this level, man-      tioners can be switched off for 15 min-       become indispensable. Within the
                                                                    agement of energy demand and cen-         utes without any noticeable rise in           next decades we will need to be able
                                                                    tral control of distributed power can     temperature in most buildings, but the        to shift part of our consumption to
                                                                    lower peaks and raise valleys in de-      relief for the grid would be clearly          the hours when the wind is blowing
                                                                    mand, thereby lowering power costs        noticeable. Likewise, industrial freez-       and the sun is shining.
                                                                    overall and increasing power quality.     ing units can run full blast when
  Two Siemens’ staff look                                           With demand side management,              electricity is plentiful and switch off
over an ultra-high-voltage                                          power consumers can be switched           for brief periods when power be-
      (UHV) DC converter.                                           on and off depending on the amount        comes scarce.


                                                                                                                         Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 21
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Living energy issue1_09_10

  • 1. Living Energy The Magazine for Energy Leadership Issue 1 | November 2009 Smart Grids A Visionary Approach to Energy Intelligence A New Era in Energy Efficiency ■ The WEC’s Christoph Frei Weighs In ■ A Tour of Innovative Installations Worldwide Clean Energy, Danish Style An Essay from a Land ahead of Its Time
  • 2. Editorial Wolfgang Dehen, Dear Reader, Member of the Managing Board of Siemens AG and CEO of the Energy Sector Never before has the smart manage- inaugural issue will focus on the being one of the companies world- ment and use of energy paid off as magic words: energy efficiency. wide with the most transparent busi- much as it does today. Why? Because Efficiency can be achieved along the ness processes. And excellent, finally, energy efficiency provides both eco- entire energy conversion chain – from not only describes our products, but nomical and ecological benefits. On the the production and transport of oil above all our global team. Well over one hand, the reduced consumption and gas and the various types of power 80,000 people at Siemens Energy work of resources costs less, offering enor- generation, to power transmission with passion, commitment and a pio- mous savings potential for compa- and distribution and ultimately the neering spirit on finding solutions nies. And on the other hand, nature consumption of electricity. In all our meeting the needs of our customers. profits doubly: Increasingly scarce fos- work, we clearly focus on the needs I hope you will enjoy the informative sil resources are conserved and CO2 of our customers. Some 17,500 engi- articles, interviews and facts featured emissions are reduced. neers at Siemens Energy work around in this initial issue of our business- We, the Siemens Energy Sector, want the globe on developing products to-business magazine “Living Energy.” to offer a new platform for the theme and solutions that help our customers I wish you a stimulating new view of energy as a forum for sharing our achieve their individual efficiency of the world of energy! know-how with our customers and goals. partners. And because we feel the most Innovative, responsible, excellent – With best regards, pleasant form of reading is still brows- these are the three values on which all ing through an interesting magazine, our actions are based. Innovations we have launched “Living Energy” like our new SGT5-8000H gas turbine just for you. In our new publication, or the world’s first 800-kV HVDC prominent experts and prize-winning transmission line. Responsibility that journalists will explore one of the is reflected in the way we work with most urgent challenges of our time: our customers and stakeholders. How can one secure reliable and Siemens, for instance, has been hon- affordable energy supplies that also ored this year for the tenth consecu- protect the climate and environment? tive time for its sustainable business Appropriately, the articles in this practices. Responsibility also means Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 3
  • 3. Content Content 06 36 44 50 Content The future of undersea oil exploration – in Norway now Renewable energy: North Sea turbines Bavaria: Putting the world’s largest gas turbine into operation Urban integration of high-voltage substations from Doha to California Cover Story 03 Editorial Features 06 Living Energy recently secured Extolling 24 Photovoltaic 36 Offshore Wind Power an exclusive interview with Switzer- the virtues of Using the sun’s energy to benefit The formidable North Sea off land’s Christoph Frei, Secretary 58 Essay “Smart Grids”: mankind is not a new idea, but the coast of Suffolk in England will General at the World Energy Council Siemens’ Ralf today, Siemens is leading the way soon be home of the largest offshore and former Senior Director of Energy Christian toward capturing its power efficiently wind farm in the world, providing Industries & Strategies at the World Page 28 on much greater scale with state- a reliable source of clean energy to Economic Forum, in which he can- 62 In Short of-the-art photovoltaic technology. nearly half a million homes. didly addresses the global problem of energy demand and consumption vs. energy supply and efficiency. 28 Smart Grids 44 Environmentally Friendly Energy For an accompanying article, energy 70 Imprint Capturing CO2 Finding smarter ways to operate To comply with increasingly tighter specialist and author Craig Morris pro- power distribution grids and updat- EU regulations on emissions from emissions in files ten groundbreaking projects in ing antiquated metering systems fossil fuel power plants, Siemens has Belgium with various sectors that he visited around is a worldwide trend, resulting in stepped up its research and develop- T-Power’s the globe, all aimed at increasing 71 Calendar Richard Snow savings on electricity, costs, “greener” ment in carbon capture technology. efficiency in the energy supply chain. energy consumption, and fewer Trade Fairs and Photos: Ruud Baan, Frédéric Guerdin, Kurt Paulus, Siemens Page 32 problems with power outages. Congresses 50 Urban Integration Someday, high-voltage substations 32 Financing may no longer blemish urban land- Financing a new combined-cycle scapes. In innovative projects around Scottish and power plant in Belgium was a the world, they are already being Southern success despite difficult economic integrated into city streetscapes in Energy’s Colin times, thanks to the project’s strong, not only aesthetically pleasing, but Hood on wind reputable partners, its solid busi- also environmentally conscious ways. power for ness plan, and the integrity of its the future purpose. Page 36 4 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 5
  • 4. Energy Efficiency World Energy Council head Christoph Frei is also an Adjunct Professor and Advisor to the President of the Swiss Federal Institute of Technology, Lausanne (EPFL), Switzerland, where he earned his PhD in energy policy “There Is a Lot of Work and sustainable development in 2001. to Do Everywhere” Christoph Frei, Secretary General of the World Energy Council and former Senior Director of Energy Industries & Strategy at the World Economic Forum, spoke exclusively to Living Energy on the future of energy. Interview by Craig Morris What is the World Energy Council’s Will the drop in energy demand forecast for energy consumption? slow down economic growth? FREI: There will be great regional FREI: Most economists now agree that differences. In our scenarios, we ex- energy consumption and economic pect energy demand in the developing growth are increasingly decoupled in world to continue to grow strongly, industrialized countries. I don’t think but the developed world should actu- we have too much to worry about ally be able to meet a large share of its here. Lower energy consumption does slightly growing energy demand from not mean a lower standard of living. increased efficiency – and meet possi- bly up to 40 or 50 percent of the cur- Where are we going to get all this rent Kyoto targets through efficiency efficiency from? measures. FREI: There are a lot of areas. To take one example, we have tremendous That is the demand side – will potential in buildings, where a large production be able to keep up? chunk of our energy is consumed – FREI: You are referring to the idea and where little attention has tradi- of peak oil. The overall trend is rising tionally been paid to energy efficiency. prices as we run out of easy oil, and Mobility is another growing area of prices will rise even further when interest. And roughly 50 percent of our we get an international carbon price. electricity is consumed in electric As prices rise, of course, demand and motors, which generally do not run emissions drop. But this is the goal. optimally, so the potential here is If we return to the question of the scar- great. In the production industry, a city of resources, you have to look at lot of systems are quite old and need each source of energy on its own. If we to be modernized. So there is really talk about oil and gas, it is clear that a lot of work to do everywhere. Photo: Ruud Baan easy oil is becoming scarcer, but at the same time, unconventional sourc- Do you think people are willing es are gradually becoming profitable to become more efficient? and will partly counteract that trend. FREI: Mobility is an interesting field Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 7
  • 5. The Energy Conversion Chain: Renewables From Start to Finish 7. UK Wind Farm: Standing in the Sea Power Distribution 9. E-DeMa in Germany: RuhrArea Model Region 10. EDISON in Denmark: Increasing E-Mobility Oil and Gas Power Generation Power Transmission 1. Subsea Exploration in Norway: Not Science Fiction 4. Power Plant in Irsching, Germany: Technology of Tomorrow 8. Tapping Hydropower in China: Novel 2. Carbon-Neutral Pipeline 5. Modernizing Power Plants in Europe: Green Megawatts High-Voltage DC System Increases 3. Coal Liquefaction in South Africa: Synthetic Gas 6. It’s Payback Time – How a ControlSystem Upgrade Saves Money Transmission Capacity by 60 Percent For our author Craig Morris, the most in this respect. The question of wheth- astonishing figures. For instance, we E-mobility will play an important role interesting part of the tour was “seeing things in person and not just reading er people are willing to drive cars with currently have some 800 million cars in this context. However, there are about them.” He was also especially in- smaller, thriftier engines is an emo- tional one. We do know, however, that when prices rise, people are willing on the road, but that number is set to rise to 2,000 million by 2030 – that’s a 2.5-fold increase. If we wanted to a number of unknowns there as well: The electricity supply will have to de- liver on the demand surge, and we will Innovative Projects terested in demand management, “which I have been following for years.” throughout the Energy to switch to more efficient systems. keep our emissions at the current level, not only need tremendous amounts For instance, when the price of a bar- we would have to become 2.5 times of lithium for the batteries once their rel of oil recently rose to more than more efficient in the sector of mobility cost comes down, but also an industry 140 dollars, sales of SUVs plummeted. – just to maintain the status quo. So capable of effective recycling. Gasoline prices dropped shortly there- after and have since been rising again, but we can clearly see that a small step each vehicle is going to have to become 2.5 times more efficient, and that is not going to be possible simply by What do we have to do in Copenha- gen to reach these efficiency goals? Conversion Chain was made in the right direction. changing people’s behavior, not even FREI: The main thing is to get an in- If we take a look at how far we need to with the kind of price increases that ternational carbonprice mechanism. Energy innovation – this catchphrase is on everyone’s lips in the globalized go in the field of mobility, we see some occurred last year. Anything less would simply not prop- erly contribute to greater efficiency world of energy. Siemens Energy Sector is the world’s leading supplier of and energy security. The goal in Copen- a complete spectrum for the generation, transmission and distribution of hagen – and in subsequent policies, to Christoph Frei Photo: haraldhoffmann.com, Graphic: Rainer Schubert the extent that this goal is not reached power and for the extraction, conversion and transport of oil and gas. Living in December – has to be a strong in- Born in Switzerland in 1969, Christoph Frei became Secretary General at ternational price for carbon. Energy invites you to take a look at ten of the most innovative projects along the World Energy Council in April 2009. He also has an assignment as Adjunct Professor and Advisor to the President of the Swiss Federal Institute of Tech- the entire energy chain, which our journalist researched or visited in person nology, Lausanne (EPFL). From 2001 to 2009, Frei was Senior Director of Is the developing world going to Energy Industries & Strategy at the World Economic Forum and a member of have to pay the same price for a ton – projects that soon may come to a power socket near you.In the Forum’s Executive Council. He holds an electrical engineering degree, of carbon as the developed world does? By Craig Morris an econometrics degree, a master in energy systems and a master in applied ethics and received his PhD from the Swiss Federal Institute of Technology, FREI: No, that is neither politically Lausanne, in 2001. Frei has led projects on energy security, energy poverty, feasible, nor fair. There will have to sustainable biofuels, and innovation in cities. be quotas that allow the developing If we walk through Siemens’ energy begins: coal, oil and gas, and nuclear. wind – have also increasingly become world to continue its economic devel- sector, we could start where the In recent decades, renewable energy significant players. Siemens is a major opment in the years to come. electricity supply chain traditionally sources – in particular, solar power and technology supplier in each of these 8 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 9
  • 6. Energy Efficiency Energy Efficiency sectors, and in June of this year, the a novel all-electric system to liquefy In some projects, the positive environ- low offshore areas – the technology Finally, there is my personal favorite: to be better tailored to production – company announced how various stim- natural gas, thereby boosting its mental impact is considerable, though sounds like it could never work when smart grids. Siemens is working on rather than the other way around, ulus packages across the globe would efficiency by as much as 50 percent. it is not apparent at first glance. For you try to describe it, but since it does, two projects in Germany and Denmark which has been the case up to now. affect it. Over the next three years, A global leader in steam turbines, instance, a new high-voltage DC trans- we will do our best to tell you how. that will allow electricity consumption the firm expects to sign 21 billion US Siemens has retrofitted nuclear power mission system that Siemens will dollars worth of new contracts, nearly plants to produce as much as 10 per- complete in China in 2010 allows the 8 billion of which will be devoted to renewables and energy efficiency. The next stage in the electricity sup- cent more energy without any other modernization of the plant. And in the field of gas, Siemens is now putting country to tap more hydropower in- stead of adding new coal plants. The CO2 emissions offset amount to a Exploring New Territory in Fossil Fuels ply chain is the transmission system. into operation the world’s largest whopping 33 million tons at the Yun- Oil and gas have been in the news a Siemens products are used in all stages Take a walk with us through three Here, large central power stations hook combined-cycle gas turbine in Bavaria. nan-Guangdong project alone. lot lately. With prices fluctuating wildly of this sector: onshore and offshore novel sites where Siemens is either in- up to the high-voltage power grid, In the field of coal liquefaction, Siemens In other projects, the positive environ- at the pump, consumers are perhaps drilling, the use of electric drives for creasing the efficiency of the overall which later connects via transformers has provided the world’s largest air mental impact is obvious. As mentioned more aware of changes in the crude natural gas liquefaction, the coal-to-liq- process or allowing previously to the medium-voltage distribution separation compressors to a South above, Siemens is a global leader in oil market than they are of any other uid process, pipelines, and terminal inaccessible resources to be tapped. system, to which smaller generators African plant. And Siemens may soon steam turbine generators, so it comes source of energy. management. are often connected – wind turbines, be providing an electric compressor as no surprise that Siemens is a leader for instance. From there, the grid for a Norwegian subsea oil platform in the steam turbine generator sets branches off into the low-voltage level that has to run maintenance-free at for concentrated solar power (CSP). 1. Subsea Exploration in Norway: Not Science Fiction that serves individual buildings. a depth of 3,000 meters underwater. But fewer people may be aware that At each of these stages, Siemens is In all of these areas, efficiency is cru- Siemens may have the longest history You may have heard of the recent futuristic station. As easily exploit- to have people manning the station. working to improve energy efficiency cial. After all, fossil and nuclear plants in offshore wind, having taken over best seller The Swarm by German able oil and gas fields become rarer, The solution is to have robots operate and diversify energy production. In will continue to be our main sources Bonus, the firm behind Vindeby, one of novelist Frank Schätzing. The fully engineers are working to reach less independently. For several years, Illustration: Siemens the following pages, we invite you to of electricity for some time to come, the first offshore wind projects in the automated subsea oil exploration accessible ones. One approach is to Siemens has tested a prototype of its accompany me on a visit to some of the so efficient use of these resources will world back in 1991. And in a more described in the book is not fiction, move further out to sea. But at depths electric-driven compressor in an on- most innovative projects that Siemens both extend the range of these energy spectacular development, Siemens has however. Siemens is developing a of 3,000 meters below sea level, water shore application in Holland. It will is working on. At midstream in the sources and reduce the environmen- come up with a solution to allow wind compressor with an integrated elec- pressure is a considerable challenge. provide maintenance-free operation value chain, Siemens has developed tal impact. turbines to be put up outside of shal- tric motor that may be used at this It is also impractical at such depths at the required depths. People will still be stationed at sea level, but remote operated vehicles (ROV) will work on the seafloor to tap remote gas resources. Gas pipelines will then fill up right at sea from the ROV. It would be too difficult to have humans stationed so deep on the seafloor. 10 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 11
  • 7. Energy Efficiency Energy Efficiency 2. Carbon-Neutral Pipeline Power Plants for the Future In some respects, the Ruby Pipeline is day – but even that is not special in the the ones pumping the gas – will be Central power plants are our main operators tweak their processes to cause the gas lines were in place, nothing extraordinary. When it opens USA, the world’s largest energy user. powered by greenhouse-gas-free en- source of electricity, and while distrib- provide immediate efficiency gains al- but the plant was partly already out in early 2011, the 1,000-kilometer- What sets off the Ruby from the rest ergy. Their electricity mix will consist uted power is becoming more com- most overnight. Indeed, in one project, of operation. Its now unprofitable long, 1-meter-diameter tube will trans- are its shoes. Size zero, to be precise. of renewable fuels plus conventional mon, central coal and nuclear plants Siemens’ engineers helped an opera- conventional gas-fired boilers once port natural gas from the wilds of Thanks to Siemens, the carbon foot- fuels offset by carbon credits. can be expected to continue to pro- tor in the Netherlands to add 35 MW replaced the oil-fired boilers that had the US state of Wyoming to other west- print of the pipeline will be null. This “A carbon-neutral pipeline is a first,” vide a large share of our electricity of generating capacity in the short themselves become unprofitable dur- ern states: Oregon, California, Idaho, is because the three STC-SV (08-5-A) says CEO Tom Blades of the Siemens for some time to come. In addition, space of only 35 days. ing the oil crises in the 1970s. In a Nevada and Washington. It will have pipeline compressors, three 17-MW Oil & Gas Division. “And that is where since the 1980s, gas turbines have The efficiency gains are even greater way, this gigantic turbine is the third a huge capacity – hauling some electric motors, and three Perfect Har- we want to be in the oil and gas been very popular as a way of quickly in northern Bavaria, where Siemens is generation at the plant in Irsching – 40 million cubic meters of gas per mony drives that Siemens supplies – business.” reacting to rising power demand. testing the world’s largest gas turbine. one that may soon set the industry Siemens has helped a number of plant Siemens and EON chose the site be- standard. 3. Coal Liquefaction in South Africa: Synthetic Gas 4. Power Plant in Irsching, Germany: Technology of Tomorrow Along with the USA and China, South liquefied coal is an economic option. In the coal-to-liquid process, high Africa has considerable coal reserves. Siemens has provided the country concentrations of oxygen are needed It also has a special history: During with the world’s largest compressor to produce “syngas” (synthetic gas). the years of apartheid, an embargo was for air separation. “The trend is toward As air is cooled down to minus 180 de- imposed on the country, which then larger facilities,” says Jochen Domas, grees Celsius, the various components had to resort to coal liquefaction as a Sales Director with Siemens. “Cus- become fluid, allowing them to be a way of producing fuel domestically. tomers prefer to have one large plant captured separately. Nearly pure oxy- These days, South Africa can, of rather than two smaller ones.” This gen can thus be used for the combus- course, buy oil on the global market, approach lowers overall project costs tion process. but its prices have risen enough that without reducing efficiency. Author Craig Morris visits the world’s largest gas turbine in an open-cycle power plant. The turbine is already installed and is currently waiting for the steam turbine and balance of plant to be added downstream. itself has an efficiency of around 40 percent, and the downstream steam turbine, which will operate at around 600° C, adds on another 20 percent- age points. “The 600° C water steam cycle with HRSG squeezes more out of the exhaust gas. Temperature of the In Irsching, Bavaria, Siemens is put- says, “Not only is this turbine extra residual exhaust is then only around ting the world’s largest gas turbine large, it also is extra efficient – thanks 85° C,” Fischer explains. Photos: Siemens, Kurt Paulus into operation in a combined-cycle to reduced losses – and this brings While Siemens’ F series gas turbines unit in cooperation with EON. As overall operating costs down.” currently makes up roughly two-thirds Siemens Program Manager Willibald The firing temperature has been of the firm’s gas turbine sales, Fischer Fischer explains, the prototype of increased by about 100 K, “which plac- says, “The H series is the technology this turbine – the H series – was built es even greater challenges on the of tomorrow. A lot of our customers in Berlin in 2007 and has since been nickel-based alloys that stand directly are very interested in this project, and At Sasol’s coal-to-liquid plant in Secunda, South Africa, a series of chemical processes convert coal into synthetic fuels. tested on site in Irsching. Fischer in the hot-gas path.” The gas turbine we receive a lot of visitors in Irsching.” 12 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 13
  • 8. Two of Siemens’ staff get almost directly to grips with the world’s larg- est gas turbine, located at Siemens’ test facility in Irsching, Germany. Photo: Kurt Paulus
  • 9. Energy Efficiency The installation of a modern steam turbine can improve plant efficiency considerably. 5. Modernizing Power Plants in Europe: Green Megawatts Often, aging power plants can be mod- Region Europe, Asia, Middle East. Another example is the coal plant ernized to produce more power. For One such project is the Borssele nucle- in Farge near Bremen, Germany. instance, Siemens can retrofit the rotor ar plant in the Netherlands, where an Here, the plant’s total capacity was in- section of steam turbines used both additional 35 MW were added on in creased from 318 to 345 MW, with in coal-fired and nuclear power plants a mere 35 days. “The payback in such CO2 emissions being reduced by up to by applying novel blading and sealing projects – the euro per megawatt – is 100,000 tons per annum. In the pro- technologies. “I can think of a lot of surprisingly great,” Henkel explains. cess, the plant’s service life was ex- examples where we have done that – The new components extend the service tended by 15 years. “We speak of this at plants with outputs ranging from life of the power plants, which are gen- added generation as ‘green mega- 200 to 1,200 MW,” says Norbert Henkel, erally at least 20 years old when mod- watts,’” Henkel says. Director Steam Plant Modernization ernized, and they improve efficiency. 6. It’s Payback Time – How a Control-System Upgrade Saves Money About 100 kilometers west of Phoenix, extra hawkeyed on return on invest- flexibility, plant security, as well as Arizona (USA), the mountainous des- ment and on improving competitive- employee morale right after project ert is the home of New Harquahala ness in the merchant power playfield. completion. Tangible savings totaled Generating Company (NHGC), a com- Both the owner and the plant saw up to more than half a million dollars bined-cycle, 1,080-MW gas-fired gen- the opportunity of achieving their busi- per year. Around two-thirds of it came erating plant that sells “merchant” ness objectives by upgrading the plant from improved reliability and avail- power. Unlike conventional utilities, control system to Siemens’ fourth- ability by significantly reduced control merchant power plants, like NHGC, are generation controls technology SPPA- system trips, which kept the plant in privately owned and sell power directly T3000 in fall of 2007. They immedi- closer alignment to its long-term ser- to wholesale buyers at competitive ately jumped into action. They were vice agreements. The rest came from rates in unregulated power markets. not disappointed by the returns. The savings of time and effort in adminis- When it comes to justifying any new plant saw intangible benefits from tration. Numbers talk and they all capital investment, NHGC’s owner is various areas: system operability and speak an important word: PROFIT. Renewables: Offshore Wind and Large-Scale Solar Since last fall, Siemens has a Solar molten salt runs through the glass source of electricity. At least in theory. Power Business with two focal points: tubes atop the parabolic troughs. In practice, offshore wind turbines large-scale rooftop and ground-mount- This approach allows salt to be stored must withstand harsher weather ed crystalline photovoltaic arrays, and so the plant can run at night plus en- conditions than onshore turbines do. concentrated solar power (CSP). As ables higher temperatures, and there- Siemens is well positioned to offer part of its intention to drive technology by greater power production. Siemens the most robust turbines on the mar- in solar thermal power plants, Siemens has a 90 percent share of the parabolic ket. The world’s first offshore wind in March 2009 bought a significant CSP market with its steam turbines. farm went up in 1991 off the coast of stake in Italy’s Archimede Solar Energy. Siemens is also focusing on a sector Denmark. Siemens later acquired the The company has innovated in CSP: that has proven quite exciting offshore. company behind that project: Bonus Photo: Siemens Instead of using oil as the heat transfer The energy potential per turbine is Energy. As a result, Siemens has nearly fluid in parabolic troughs, with the much greater at sea, where wind veloc- two decades of experience in the fledg- heat being passed on to the molten salt ities are higher and steadier than on ling offshore wind market – more in the boiler via a heat exchanger, the land, making wind a more reliable than any other company worldwide. Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 17
  • 10. Energy Efficiency tached; these anchors prevent the the turbine standing without sinking for the generator at the top of the turbine from drifting across the sea. it. The problem becomes even more tower – is filled with heavy equip- The challenge here is to provide difficult when we realize that the ment. enough weight at the bottom to keep turbine’s nacelle – the round casing Power Transmission – Enabling Large-Scale Clean Energy Around a century ago, one of the first transport electricity from Niagara direct current has begun making a standardization struggles in industrial Falls to Buffalo, New York, by demon- comeback for transmission with the history took place between George strating that AC was more efficient latest technology. Indeed, most talk Westinghouse and Thomas Edison. In than DC in power transmission. about “super grids” revolves around what has become known as the “Battle For most of the 20th century, direct high-voltage direct-current (HVDC) of Currents,” Westinghouse and his current was therefore mainly used to transmission. Siemens is a forerun- colleague Nikola Tesla succeeded in supply power directly to power con- ner in this field. getting alternating current used to sumers. But in an interesting reversal, 8. Tapping Hydropower in China: Novel High-Voltage DC System Increases Transmission Capacity by 60 Percent were then installed on site.” In total, site.” Once assembled, the equipment 24 transformers with four different is gigantic. “We increased the trans- YELLOW CHINA SEA types are installed at each station mission capacity by over 60 percent Shanghai with one spare for each type. “If one from around 3 to 5 GW at one go, and 40 km of the transformers needs to be re- we are working on 6.4 and 7.2 GW in Gezhouba M W / 1,0 1,200 Anshun placed, it could take months to get other projects.” a new one out here, so we chose to “But the air clearance grew by 100 per- 3, Xingren 0 00 3,0 keep one for each type in reserve on cent in the process here,” Häusler M Tian- 00 W 1,2 MW /9 shengqiao 25 40 km Guangzhou km 1,800 M W / 960 km Zhaoqing Shenzen Kunming 5,000 MW / 1,400 km Photos: Siemens, Kurt Paulus, Graphic: independent Medien-Design Sharing power in China: HVDC systems. Off the shelf: Siemens has the right-sized turbines, ready today for commercial installation and operation. By providing an 800-kV direct-current transmission system, Siemens allows China to connect a large hydropower plant to its quickly expanding grid 7. UK Wind Farm: Standing in the Sea instead of adding on additional coal plants. The remoteness of the site was At the Lynn and Inner Dowsing Off- will be surpassed by Greater Gabbard’s You may be familiar with the slogan, the first problem. “We specially de- shore Wind Farms some 5 kilometers 504 MW – see p. 36.) “Weebles wobble, but they don’t fall signed the actual transformer units to off the shore of Lincolnshire, UK, But the waters around these two proj- down.” Siemens is using the basic idea fit through the mountain tunnels by Siemens has supplied 54 of its SWT- ects off the coast of Skegness are behind these toys for “floating” wind train,” explains Marcus Häusler, Tech- 3.6-107 turbines for an overall capacity relatively shallow, with a maximum turbines: The bottom is weighted so nical Director System & Equipment of 194 MW, making these two adjacent depth of around 13 meters. Siemens is that the turbine always stands upright. Engineering HVDC at Siemens. “The projects the largest collective wind going further to find ways of installing There are three anchors on the seafloor connector arms, the transformer bush- Craig Morris (right) discusses the model of the HVDC station with Siemens Technical farm in the world. (A year later they turbines at much greater depths. to which the turbine is flexibly at- ings, as well as parts of the windings, Director Marcus Häusler. 18 Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 19
  • 11. Behemoths in action – as this “snapshot” from UHV DC transformer shows, the equipment is the size of the entire building. Those are not ants in the pictures, they are people. explains. Some of the equipment 10 meters up is a challenge.” Where or North America too, but as Director therefore has to be twice as far from possible, Siemens suspended some Technical Marketing & Innovations the ground – 10 meters instead of equipment to allow it to move flexibly HVDC Dietmar Retzmann explains, 5 meters up. “If you then consider that during earthquakes while retaining “China’s grids are incredibly dynamic. a single piece of equipment can weigh the required distance from the ground. The European grid would first have around 30 tons, and this region is Siemens’ 800-kV DC transmission to be expanded for this technology to prone to earthquakes, suspending it could, of course, be used in Europe be used properly.” Changes in Demand Side Management One level down from transmission of power in the grid. For instance, As intermittent renewable energy comes the distribution grid. Here, heating and cooling loads are fairly provides an ever larger share of our power begins to be channeled to spe- easy to shift across the day. Air-condi- electricity supply, such solutions will Photo: Siemens, 3-D Graphic: Siemens cific consumers. At this level, man- tioners can be switched off for 15 min- become indispensable. Within the agement of energy demand and cen- utes without any noticeable rise in next decades we will need to be able tral control of distributed power can temperature in most buildings, but the to shift part of our consumption to lower peaks and raise valleys in de- relief for the grid would be clearly the hours when the wind is blowing mand, thereby lowering power costs noticeable. Likewise, industrial freez- and the sun is shining. overall and increasing power quality. ing units can run full blast when Two Siemens’ staff look With demand side management, electricity is plentiful and switch off over an ultra-high-voltage power consumers can be switched for brief periods when power be- (UHV) DC converter. on and off depending on the amount comes scarce. Living Energy · Issue 1/ November 2009 · www.siemens.com/energy/living-energy 21