Presentation: Offshore Wind Power as a pillar of the ...Wind turbines with a total output of 30 gigawatts (GW) currently installed in Germany, 15 more gigawatts offshore planned by

Unrestricted © Siemens AG 2014. All rights reserved. Answers for energy.

Offshore Wind Power

as a pillar of the energy transition

Jan Mrosik, CEO Power Transmission & Smart Grid Divisions | Siemens AG

Erlangen, July 2014

July 2014

Unrestricted © Siemens AG 2014. All rights reserved.

Page 2 Energy Sector

Siemens - Clean electricity for the world

Full-scope provider of offshore wind projects

New dimensions

6 MW offshore

wind turbines

Wind Power

Innovation

More output through

modernization

Energy Service

World record

800 kV for

direct-current transmission

Power Transmission

July 2014



• The largest offshore-markets are Great Britain and Germany

• Significant expansion of offshore wind power planned in both countries

Ambitious offshore objectives in Europe

Great Britain

6.5 gigawatts planned by 2020 1 gigawatt (Round 1 completed)

8.5 gigawatts planned by 2030

38 gigawatts 51 gigawatts

Germany

23 gigawatts (potential further expansion)

7 gigawatts (Round 2 ongoing)

2 gigawatts (Expansion 1&2 ongoing)

32 gigawatts (Round 3 planned)

9 gigawatts (Scotland planned)

Offshore wind share in power mix

4% by 2020 10% by 2030 Offshore wind share in power mix

10% by 2020 27% by 2030

July 2014



European offshore plans (in megawatts)

Source: EWEA – European Wind Energy Association (Mai 2014)

Online Under con-struction

Consented Planned Total

Belgium 571 666 1,149 990 3,376

Croatia 0 0 0 500 500

Denmark 1,271 0 54 4,148 5,473

Estonia 0 0 0 950 950

Finland 26 0 0 3,770 3,796

France 0 0 2,920 3,110 6,030

Germany 520 2,447 6,682 28,321 37,870

Greece 0 0 714 3,687 4,401

Ireland 25 0 2,100 1,908 4,033

Italy 0 0 683 2,305 2,988

Latvia 0 0 200 0 200

Malta 0 0 0 149 149

Netherlands 247 417 2,772 2,976 6,412

Norway 2 0 407 8,915 9,324

Poland 0 0 0 10,595 10,595

Portugal 2 0 0 476 478

Spain 5 0 20 6,788 6,813

Sweden 212 0 991 8.276 9,479

United Kingdom 3,681 1,394 6,582 38,892 50,509

Total Europe 6,562 4,924 25,134 126,134 163,376

July 2014



Benefits of offshore wind power

Typical annual yields

Inland Coastal (onshore)

Offshore

2.3 MW turbine

7 GWh 9 GWh –

3.6 MW turbine

– 12 GWh 18 GWh

6.0 MW turbine

– 23 GWh 31 GWh

…higher yield

…reasonably priced electricity

German EEG tariff

…enormous potential

50% more capacity

(Wind turbines with a total output of 30 gigawatts (GW)

currently installed in Germany, 15 more gigawatts offshore

planned by 2030)

...sustainability

7 months to a positive energy balance

(on average, an offshore wind farm redeems the

energy input for fabrication, transport, and

installation after this period)

Nearly CO2-free power generation (taking into account fabrication, transport,

installation, and maintenance, CO2 emissions

are only 7-12g CO2/kWh)

…steadier yields

100% more full-load hours (Offshore, with potentially more than 4,000 operating hours annually

at full-load compared with onshore wind power installations)

…high level of reliability

More than 2 decades of operation have already been tried-and-tested by Siemens

offshore wind turbine plants

97% availability and better

Significantly higher yield per turbine

…wide acceptance

For 12 years at 15 euro cts or 8 years at

19 euro cts/kWh and then: 3.5 cts/kWh

(=price level electricity exchange)

Short-term cost reduction Cost reduction to 10 euro cts/kWh target by 2020

76% acceptance in GB

Offshore wind

power means

higher initial

investments,

but also…

July 2014



Siemens is leading in offshore wind power (1/2)

Wind Power Division (on- and offshore), FY 2013 • €6.6 billion in new orders received

• €5.2 billion in revenues

• >€13 billion in order backlog (March 31, 2014)

Siemens Wind Power

Siemens has already commissioned more than 1,250

offshore wind turbines with a total capacity of 4 gigawatts

(GW) to supply 4 million households with electricity

Another 1,350 offshore wind turbines with a total capacity

of nearly 6 gigawatts are on the order backlog

July 2014



Siemens is leading in offshore wind power (2/2)

Completed projects Ongoing projects

1991 – Vindeby, DK (11 x 0.45 MW)

2000 – Middelgrunden, DK (20 x SWT-2.0-76)

2002 – Samsø, DK (10 x SWT-2.3-82)

2002 – Rønland, DK (4 x SWT-2.3-93)

2003 – Rødsand/Nysted, DK (72 x SWT-2.3-82)

2003 – Frederikshavn, DK (1 x SWT-2.3-82)

2007 – Lillgrund, SE (48 x SWT-2.3-93)

2007 – Burbo Banks, GB (25 x SWT-3.6-107)

2008 – Lynn/Inner Dowsing, GB (54 x SWT-3.6-107)

2009 – Horns Rev II, DK (91 x SWT-2.3-92)

2009 – Hywind, NO (1 x SWT-2.3-82)

2009 – Gunfleet Sands, GB (48 x SWT-3.6-107)

2009 – Rhyl Flats, GB (25 x SWT-3.6-107)

2010 – Rødsand II, DK (90 x SWT-2.3-93)

2010 – Pori, FI (1 x SWT-2.3-101)

2011 – EnBW Baltic 1, DE (21 x SWT-2.3-93)

2012 – Walney 1, GB (51 x SWT-3.6-107)

2012 – Walney 2, GB (51 x SWT-3.6-120)

2012 – Rudong Intertidal, CN (21 x SWT-2.3-101)


2012 – Sheringham Shoal, GB (88 x SWT-3.6-107)

2012 – Greater Gabbard, GB (140 x SWT-3.6-107)

2013 – London Array, GB (175 x SWT-3.6-120)

2013 – Lincs, GB (75 x SWT-3.6-120)

2013 – Anholt, DK (111 x SWT-3.6-120)

Gwynt Y Mor, GB (160 x SWT-3.6-107)

West of Duddon Sands, GB (108 x SWT-3.6-120)

Teesside, GB (27 x SWT-2.3-93)

EnBW Baltic 2, DE (80 x SWT-3.6-120)

Riffgat, DE (30 x SWT-3.6-107)

DanTysk, DE (80 x SWT-3.6-120)

Borkum Riffgrund 1, DE (89 x SWT-3.6-120)


Meerwind Süd Ost, DE (80 x SWT-3.6-120)

Amrumbank West, DE (80 x SWT-3.6-120)

Butendiek, DE (80 x SWT-3.6-120)

Westermost Rough, GB (35 x SWT-6.0-154)

Godewind 1, DE (42x SWT-6.0-154)

Godewind 2, DE (55x SWT-6.0-154)

Gemini, NL (150x SWT-4.0-130)

July 2014



Siemens is leading in offshore grid access (1/2)

Power Transmission Division, FY 2013 • €5.7 billion in new orders received

• €6.2 billion in revenues

• >€7 billion in order backlog (March 31, 2014)

Siemens Power Transmission

The Power Transmission Division has already commissioned

7 offshore grid connections with a total output of

2 gigawatts (GW)

Another 7 offshore grid connections for a total

of nearly 5 gigawatts have been ordered

July 2014



Siemens is leading in offshore grid access (2/2)

9 offshore grid connections with 3

gigawatts capacity in AC technology

Cable links

longer than

around 80 km

are more

economical

and

technically

better when

HVDC

technology is

used

5 offshore grid connections with 3.8

gigawatts capacity in high-voltage direct-

current technology (HVDC)

Completed projects

Ongoing projects

Ongoing projects

2007 – Lillgrund, SE (110 MW)

2008 – Lynn & Inner Dowsing, GB (194 MW)

2010 – Thanet, GB (300 MW)

2010 – Greater Gabbard, GB (500 MW)

2010 – Bard 1, DE (400 MW)

2011 – Galloper, GB (140 MW)

2013 – London Array, GB (630 MW)

Gwynt y Mor, GB (576 MW)

Lincs, GB (270 MW)

BorWin2, DE (800 MW)

HelWin1, DE (576 MW)

HelWin2, DE (690 MW)

SylWin1, DE (864 MW)

BorWin3, DE (900 MW)

July 2014



Siemens is leading in offshore wind service (1/2)

• 2,500 wind power service specialists employed

• Service for > 50% of the installed global offshore base

• Secures high offshore wind farm availability (≥ 97%)

Siemens Wind Power Service

Siemens actually provides service for 1,000 offshore wind

turbines with a total output of more than 3 gigawatts (GW)

that supply 3 million households with clean electricity

Service contracts for 1,000 more offshore wind turbines

with an output of more than 4 gigawatts have been signed

July 2014



Siemens is leading in offshore wind service (2/2)

Completed offshore projects currently

under service and warrantly agreements

Projects under construction with signed

service and warranty contracts

2003 – Rødsand/Nysted, DK (72 x SWT-2.3-82)

2007 – Lillgrund, SE (48 x SWT-2.3-93)

2007 – Burbo Banks, GB (25 x SWT-3.6-107)

2008 – Lynn/Inner Dowsing, GB (54 x SWT-3.6-107)

2009 – Horns Rev II, DK (91 x SWT-2.3-92)

2009 – Hywind, NO (1 x SWT-2.3-82)


2009 – Rhyl Flats, GB (25 x SWT-3.6-107)

2010 – Rødsand II, DK (90 x SWT-2.3-93)

2011 – EnBW Baltic 1, DE (21 x SWT-2.3-93)

2011 – Avedore, DE (1x SWT-3.6-120)

2012 – Walney 1, GB (51 x SWT-3.6-107)

2012 – Walney 2, GB (51 x SWT-3.6-120)

2012 – Rudong Intertidal, CN (21 x SWT-2.3-101)

2013 – Sheringham Shoal, GB (88 x SWT-3.6-107)

2013 – Greater Gabbard, GB (140 x SWT-3.6-107)

2013 – Anholt, DK (111 x SWT-3.6-120)

2013 – London Array, GB (175 x SWT-3.6-120)

2013 – Lincs, GB (69 x SWT-3.6-120)

Gwynt Y Mor, GB (160 x SWT-3.6-107)

West of Duddon Sands, GB (108 x SWT-3.6-120)

Teesside, GB (27 x SWT-2.3-93)

EnBW Baltic 2, DE (80 x SWT-3.6-120)

Riffgat, DE (30 x SWT-3.6-107)

DanTysk, DE (80 x SWT-3.6-120)


Meerwind Süd Ost, DE (80 x SWT-3.6-120)

Amrumbank West, DE (80 x SWT-3.6-120)

Butendiek, DE (80 x SWT-3.6-120)

Gemini, NL (150x SWT-4.0-130)

July 2014



Principle of an HVDC offshore grid connection

July 2014



German pioneering projects with HVDC links

• HelWin1 (576 MW)

• HelWin2 (690 MW)

• BorWin2 (800 MW)


• SylWin1 (864 MW)

Siemens


• DolWin1 (800 MW)



Competition


To be awarded

July 2014



800 megawatts output

Power for 800,000 households

Start: 1st half of 2015






Start: 2nd half of 2014






Start: 2019

Wind Power for 4 million German households

BorWin 2

SylWin1 HelWin1 HelWin 2

BorWin 3

July 2014



HelWin2 2015 2011

SylWin1 2015 2011

Status of the HVDC Projects in the German North Sea

Order

entry

Con-

struction

platform

Construc-

tion land

station

Equipping

platform

Installation

baseframe

Installation

platform

Commis-

sioning

Commer-

cial

operation

BorWin3 2014 2019

HelWin1 2014 2010

BorWin2 2015 2010

July 2014



Experiences from the pioneering HVDC grid

connections

Over the medium term: Great demand in HVDC grid connections • At present, 7 gigawatts of HVDC grid links ordered in Germany

• One converter platform needed for each 900 megawatts of transmission capacity

• Also in Great Britain wind farms located more than 80 kilometers off the coast are planned

1. Optimal risk management

Platform realized by general contractor

(design, construction, installation)

2. Reliable time schedules

(project execution in 4 years possible,

5 years including bad weather buffer)

3. Appropriate cost calculation

(Execution experience,

certainty about norms and standards to apply)

Strong partners

Experience

Standards

Reliable delivery dates and realistic cost calculations

July 2014



Turbines • Reduced part costs

• Higher electricity yield

• Industrialization

Foundations • Standard-design

• Industrial manufacturing

• Scales of production

Grid connection • Reduced complexitiy

• Smaller platforms

• Innovations

Operation & Service • Durable parts

• Less maintenance

• Higher availability

Cost reduction in offshore wind

Track record of cost reduction by 40% in each decade

Image::

Bladt Industries A/S

Goal: Cost reduction to 10 euro cts/kWh by 2020

July 2014



Cost reduction in HVDC grid connections

Goal: Cost reduction of 30-40% by 2020

1st milestone:

DC compact switchgear

for 320 kV

Reduction of space

requirement from

>4,000 cbm to 200 cbm

Market entry starting now

July 2014



Thank you for your attention!

Documents

Presentation: Offshore Wind Power as a pillar of the ...Wind turbines with a total output of 30 gigawatts (GW) currently installed in Germany, 15 more gigawatts offshore planned by