We can achieve sustainable energy supplies if we
utilize all efficiency potential and all possibilities in the
energy mix. I’d like to briefly discuss four themes: the
energy agenda, fundamental drivers of the energy
business, how to address the challenges, and the
future of energy supplies.
Ideally, the energy system is a balance between
three key factors and three stakeholder groups –
whose interests also must be balanced. The three key
factors are: Security of energy supply, protection of the
environment and securing economic affordability.
The stakeholders groups are: politics, industry
and consumers. Everybody has an influence on the
development of our energy system. Politics has set a
tough climate goal that has to be met. Utilities are
looking for long-term business perspectives in modernizing
and expanding infrastructure, and consumers
are confronted with the “Nimby Syndrome”. Everyone
wants reliable power supplies – but Not in my backyard!
Three fundamental drivers of the energy business
are that demand for electrical energy will continue
to rise, growing demand for power is being driven
by the three global factors and these drivers are in part detached from the world’s economic
development.
In 2005, the world’s population hit the
6.5 billion mark and has shown an annual
growth rate of 1.2 percent since. Between
1987 and 1999, the world’s population grew
by one billion people. Population growth
has accelerated.
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The usage of electrical energy will
increase due to higher efficiency. Two
examples make it clear how much more
efficient it is when electricity is used for
mechanical drives. In an electric car, electricity
from the battery is converted to
kinetic energy with 95 percent efficiency.
Combustion engines have an efficiency of
only 20 to 30 percent. The remainder is lost
through hot exhaust and the radiator.
Driving with an electric motor instead of a
combustion engine increases energy efficiency
by a factor of 3 to 4 – similar to
replacing incandescent light bulbs with
energy-saving lamps.
Huge compressors driven by a small
gas turbine are used in oil fields to help
pump the valuable resource out of the
ground. If you replace the gas turbines –
which operate at a relatively low efficiency
of 20 to 30 percent – with electric drives,
and generate the necessary electricity with
a highly efficient combined cycle power
plant, the energy efficiency immediately
increases to over 50 percent.
These two examples make it clear
where we are heading to achieve higher
efficiency. We will increasingly use electrical
energy in all areas of economic, public
and private life. Societies will be electrified.
SIEMENS FORECASTS
As the electrification of society
increases, power consumption will naturally
grow. Siemens own forecast for power
demands is based on detailed analyses we
have conducted in over 160 countries. We
see a significant increase in power demand,
but no fundamental change in the current
energy mix. The share of renewables in the
energy mix will increase substantially from
today’s figure of approximately 3 percent to
around 14 percent by 2030. The share of
fossil fuels in power generation will
increase significantly in coal and gas.
SIEMENS PORTFOLIO
The Siemens Energy Sector has oriented
its portfolio toward two basic points:
efficiency and an intelligent energy system.
The greatest potential for a sustainable
energy system lies in technical solutions.
The goal here is continuous optimization of
the mix.
In the foreseeable future, all primary
energy sources will be needed in order to
ensure sustainable supplies of electricity
worldwide. It will be critically important to continually optimize the mix of various
energy sources. This will mean steadily
increasing the share of renewable energy
sources such as wind and solar.
To compensate for fluctuations in
renewable feed-in and in grid loads, we
need a fleet of highly efficient, gas-fired
combined cycle power plants. They guarantee
grid stability since they can be quickly
started up and can level intermediate loads
and peak loads on demand. Their greatest
advantage in addition to their speed and
flexibility is their high operating efficiency
and the relatively low carbon content of natural
gas.
We will also have to further optimize
fossil-fired power generation with carbon
capture technology that separates and
stores CO2. In addition, nuclear energy will
be an indispensable provider of low-CO2
power.
Offshore wind farms are especially
promising. Huge potential is available in the
North Sea and Baltic. Only 1.5 percent of
the possible projects have been built.
Another example of how to further
optimize the energy mix is low emission
base load. With CCS technology more than
95% of the total CO2 amount in the fossil
fuel can be captured, but the use of CCS
technology also means a 9-10% point drop in
efficiency.
Siemens has experience in CCS-technology
in Pre and Post combustion:
PRE-COMBUSTION
IGCC – gasification technology:
First 500-MW gasifiers for Chinese partner
delivered in May 2008
Siemens gasifier technology for low-
CO2 power plant in Canada (EPCOR, 2008)
IGCC – Gas turbine: E-Class syngas
GT for IGCC project in China (Tianjin,
2008)
Development of an advanced F-class
syngas gas turbine, tailored for CCS gases
(in progress)
Plants for IGCC in operation since
mid-1990s (Buggenum, Puertollano)
POST-COMBUSTION
Development of proprietary capture
process based on environmentally compatible
amino acid salt
Cooperation with E.ON for pilot plant
(coal-fired) in Staudinger (Germany, startup
Aug. 2009 )
Cooperation for CO2 separation from
flue gas of a combined cycle power plant,
start 2009 (Norway)
Alliance with POWERSPAN to sell
and implement their ECO2 ammonia based
technology
The second major action area is energy
efficiency, and this requires enhancing
efficiency along the entire energy conversion
chain. In addition to steadily optimizing
the energy mix, greater energy efficiency
will be necessary for further improving
the world’s energy supplies.
Technical improvements in all parts of
the energy conversion chain can reduce the
consumption of fossil fuels and increase the output from renewable energy sources.
Consider the ways of increasing efficiency
with renewable energies. By using state-ofthe-
art 3.6-megawatt wind turbines instead
of the 1-megawatt units currently standard
in the industry, wind power can be far more
effectively exploited. The natural losses of
electrical energy during its transport in
power grids can be significantly reduced by
using power electronics components.
POWER TRANSMISSION
Great efficiency potential can be leveraged
in the area of power transmission. In
China, we are currently building the
world’s first HVDC link with 800 kV and
with a power transmission capacity of 5000
MW. In the future, the electricity generated
by several hydro-electric power plants will
be transported from Yunnan around 1,400
kilometers to Guangzhou via this long-distance
HVDC link.
Hydro-electric power generation is
economical, environmentally friendly and
does not emit any CO2. This HVDC link
will save the emission of more than 30 million
tons of CO2 a year, compared to
China’s normal energy mix.
The third logical step for securing
sustainable energy supplies through
improved efficiency and reduced resource
consumption requires a systemic optimization.
Central and decentralized power generation
of all kinds of power generation
technologies have to be managed.
By employing intelligent energy management
systems in power grids (Smart
Grids), electrical energy can be utilized
more efficiently – such as bundling small
generating units into so-called virtual power
plants, or storing surplus electricity from
renewable sources in mass storage units
such as heat pumps or networked electric
cars.
SMART GRIDS
The real-time monitoring of power
consumption with smart meters will have a
positive effect in private households, since
people can check their personal consumption
on a daily basis and take measures to
reduce costs.
The challenges facing our energy system
are to ensure a balance of the energy
triangle and at the same time ensure that
the needs of all stakeholders are met. To
produce the necessary amount of electricity
in a sustainable manner – Siemens is banking
on three key steps: optimization of the
energy mix, efficiency enhancement along
the entire energy conversion chain, and a
systemic optimization through Smart Grids
to create an integrated and sustainable
energy system for the future.
Wolfgang Dehen was the keynoter at
Power-Gen Europe, May 26, 2009 in
Cologne, Germany.
Dehen is CEO of Siemens Energy
Sector and a member of the managing
board at Siemens AG.
Power Gen Europe 2010 will be held
June 8-10, 2010 in Amsterdam.
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