www.siemens.com/pof Pictures of the Future The Magazine for Research and Innovation | Special Edition: Green Technologies Renewable Energy Tomorrow’s Power Grids Energy Efficiency Solutions for a Sustainable, Low-Carbon Future How Vehicles, Cities and Alterna- tive Energy Sources will Interact Squeezing Better Results out of Today’s Technologies Pictures of the Future Contents Energy Efficiency Smart GridsRenewable Energy Sections 12 Scenario 2030 The Electric Caravan 14 Solar Energy – Desertec Power from the Deserts 20 Offshore Wind High-Altitude Harvest 23 Floating Wind Farms Tapping an Ocean of Wind 24 Wind Turbines Recipe for Rotor Blades 27 Facts and Forecasts Why Renewable Energy is Needed 28 Renewable Resources Energy for Developing Countries 29 Interview Prof. Oberheitmann Why China Wants to Conserve Energy 30 Interview with Prof. Wan Gang China’s Minister of Science 32 Biomass Flaming Scrap 66 Scenario 2025 Energy-Saving Sleuth 68 Urban Energy Analysis Cities: A Better Energy Picture 71 Trends: Energy for Everyone Light at the End of the Tunnel 73 World’s Largest Gas Turbine Unmatched Efficiency 76 Coal-Fired Power in China Olympic Efficiencies 78 Steam Turbine Materials Preparing for a Fiery Future 82 CO 2 Separation Coal’s Cleaner Outlook 85 CO 2 Sequestration Testing Eternal Incarceration 88 Power Plant Upgrades New Life for Old Plants 90 Steel Plants Efficiency Catches Fire 92 Mining Electrification Monster Drives 94 Airports Flight from Carbon Dioxide 96 Facts and Forecasts More Efficient Buildings 97 Energy Efficient Buildings Nature is their Model 100 Intelligent Sensors When Buildings Come to Life 104 Lamp Life Cycles Let there be Savings 107 UN Emission Certificates India’s new Light 108 Interview: Rajendra K. Pachauri Nobel Prize Winner & IPCC Chairman 109 Off-Grid Solutions New Sources of Hope 110 Efficient Appliances Miracle in the Laundry Room 113 Facts and Forecasts The Energy-Efficiency Pay Off 114 Self-Sufficient Alpine Hut Forecasts that Come Home 116 Combined Heat and Power How to Own a Power Plant 117 Energy Storage Piggybanks for Power 118 Rail Transport High-Speed Success Story 121 Rail System Life Cycles Timely Trains 124 Vienna A Model of Mobility 4 Interviews and Facts Dr. Steven Chu Prof. Hans Joachim Schellnhuber The Sources of Greenhouse Gases 8 Siemens Environmental Portfolio Climate Change is Powering Growth 134 Crisis and Climate Protection Engines of Tomorrow’s Growth 164 Venture Capital: Green Dwarfs 126 Environmental City Studies London: Shrinking Footprints Munich: A CO 2 -Free City Pictures of the Future Special Edition on Green Technologies | Fall 2009 3 38 Scenario 2020 New World 40 Trends: Tomorrow’s Power Grids Switching on the Vision 44 HVDC Transmission China’s River of Power 48 Energy Storage Trapping the Wind 50 Interview with Dan Arvizu Director of the U.S. National Renewable Energy Laboratory 52 Intelligent Buildings Plugging Buildings into the Grid 54 Smart Meters Transparent Network 56 Virtual Power Plants Power in Numbers 58 Facts and Forecasts Growing Demand for Smart Grids 60 Electromobility From Wind to Wheels Pictures of the Future | Editorial 2 Pictures of the Future Special Edition on Green Technologies | Fall 2009 I n recent weeks there have been signs that the world may have left the worst of the financial and economic crisis behind — and already some people are playing down the causes of the worst crisis in 80 years. However, we shouldn't ignore a simple fact: activities aimed exclusively at short- term gains don't create long-term value! This is particularly true when it comes to climate change. Current efforts to limit warming are based on the expectation that the global community will set course to- ward a sustainable future. The aim is to im- prove the balance between environmental, economic and social interests. One of the most significant factors af- fecting the achievement of this goal is how Peter Löscher is President and CEO of Siemens AG. vehicles at night, when electricity is cheaper, and sell it during the day at peak prices. Electric vehicles will also have an important stabilizing function. Just a few hundred thousand electric vehicles con- nected to the power grid would provide more “balancing power” than Germany currently needs to cover its demand peaks. The most reliable, cheapest, and most environmentally-friendly source of energy is reduced consumption. That’s why there’s a huge need for energy-efficient technolo- gies (p. 66-125). Experts expect worldwide demand for such technologies to grow by 13 percent annually in the coming decade. A large part of our product range is aimed at this future market, which could be worth more than €2 trillion by 2020. We provide the most energy-efficient and high-per- formance power plant turbines. We help our customers to reduce energy consump- tion in their buildings by as much as 40 percent. We've developed industrial drive systems that save up to 75 percent of elec- tricity, thus recouping their purchase price within 18 months. That’s the positive side effect of energy-efficient technologies. Be- cause the customers' energy costs are re- duced, their competitiveness increases. The importance of renewable energy sources will grow considerably in the next 20 years (p. 12-33). According to calcula- tions made by the International Energy Agency and Siemens, in 2030 we will be harvesting about 13 times more energy from wind and 140 times more solar en- ergy than we do today. In just six hours, the world’s deserts receive as much energy from the sun as the world's entire popula- tion consumes in a year. Our goal must be to capture as much of this energy as possi- ble and to transport it with as few losses as possible to the places where it is needed. To help achieve this goal, we have made acquisitions to enhance our leadership in the area of solar thermal technology. Today, Siemens is the only company that can offer all of the core technologies for harvesting and transmitting solar energy from a single source. This underscores our claim to be the leading technology partner in the Desertec project. Here, the aim is to improve the energy supply in North Africa while covering 15 to 20 percent of Europe's energy needs from wind and solar power plants in the Mediterranean region by the middle of this century. We will do our share to ensure that this “Apollo project of the 21st century” becomes a reality. Cover: Siemens recently completed construction of the world’s largest offshore wind farm 30 km from the Danish coast. Outfitted with 91 turbines, Horns Rev II will pump 210 MW of electrical power into Denmark’s grid —enough to supply over 136,000 households. Advanced sensing will minimize maintenance. we deal with energy. Because of population growth and increasing prosperity, our global energy needs are expected to grow by 60 percent by 2030. During the same period, we must dramatically reduce green- house gas emissions. To “square the circle,” we need to act quickly and comprehen- sively at two levels: We have to generate, distribute and use energy more efficiently. And we must expand the proportion of power generated from renewable energy sources. On both of these levels, no other company can compete with Siemens. The value of our certified environmental port - folio rose from €19 billion in business year 2008 to €23 billion in 2009. In this special issue of Pictures of the Future we've assem- bled examples from this “green” portfolio. One key topic involves the intelligent electrical networks of the future — so- called “smart grids” (p. 38-63). These will enable us to tap and feed in energy at any point in the network. They thus represent a vital step on the road to a future system of power generation that will be much more diversified and decentralized. Smart grids will also open the door to a society based on zero-emission electric vehicles (p. 60). These vehicles will be more than just a means of transportation.They will be smart, mobile energy storage units that will even generate income for their owners, who will be able to recharge their The Road Toward a Sustainable Future Interview | Hans Joachim Schellnhuber Prof. Hans Joachim Schellnhuber is Director of the Institute for Climate Impact Research in Pots- dam.Schellnhuber, 59, was one of the first re- searchers to investigate the consequences of cli- mate change. The physi- cist was also Research Director at the Tyndall Centre for Climate Change in Norwich (UK) from 2001 to 2005. The exceptional value of his work was officially rec- ognized when the Queen named him “Honorary Commander of the Most Excellent Order of the British Empire” (CBE). German Chancellor An- gela Merkel appointed Schellnhuber to serve as Advisor on Climate Issues to the Federal Govern- ment in 2007. Interview conducted in Spring, 2007. 4 Reprinted (with updates) from Pictures of the Future | Spring 2007 Reprinted (with updates) from Pictures of the Future | Spring 2007 5 Are greater efficiency and renewable energy enough? Schellnhuber: Not on their own. In particu- lar, we’re going to have to use carbon seques- tration. That means whenever carbon is com- busted, the CO 2 must be captured rather than being emitted into the atmosphere. This is most effective in biomass power plants — that way, the net amount of carbon in the at- mosphere is reduced. In addition, the operat- ing life of existing nuclear power plants could be extended, since their associated dangers are low compared to those of global warming. On the other hand, their contribution to gen- erating capacity cannot be boosted substan- tially without ramping up the industry to reprocess spent plutonium — or building thousands of new nuclear power plants. In my opinion, however, the gains from extending the operating life of nuclear facilities should be channeled into developing alternative energy sources. Do you think the industry will cooperate in this reorientation of the world’s energy system? Schellnhuber: Yes, if conditions are right. Governments must establish guidelines and set targets. I think it’s sensible for each country to draw up its own roadmap, and then to combine these into a kind of world road atlas. There’s no escaping the fact that we need to halve global CO 2 emissions by 2050, compared to 1990 levels. And industrial countries should really be reducing carbon emissions by 60 to 80 percent, because they’ve produced much more CO 2 than developing countries. How effective is emissions trading? Schellnhuber: The concept calls for trade in emissions allowances, whereby the state deliberately ensures a stringent market. That’s fine, in principle, but it can’t remain an isolated measure. Important, too, is greater use of innovative technology, although it pays to remember that the biggest gains are always a result of reducing energy waste. London alone produces as much CO 2 as all of Portugal. Yet its increasing energy demand can be completely attributed to the increasing use of appliances that consume power when in standby mode. That can be changed, as every engineer knows. What’s the short term roadmap? Schellnhuber: 2007 and 2008 are decisive years, because the pressure will be on to de- velop a successor agreement to Kyoto. Then, over the next five to ten years, important deci- sions are going to have to be made regarding the modernization of a lot of power plants. What can a global company like Siemens do about the climate challenge? Schellnhuber: German companies have the strengths needed to cope with climate change. Don’t forget, people used to poke fun at Ger- mans because of our concern for the environ- ment. But our industry can help launch a new industrial revolution — and even post good earnings in the process — which will one day lead to a zero-emissions society. Invest now, and you’ll later have the advantage of being able to supply your technology to the major markets of the future, such as China and India. Where does the U.S. fit into this equation? And do you think it will start to control its greenhouse emissions before it’s too late? Schellnhuber: Countries like India and China, which are consuming increasing amounts of energy, will continue to point the finger at the U.S. as long as it fails to cut emissions. But I think there’s a good chance that policy in Wash- ington will change. The U.S. probably won’t sign up to the Kyoto Protocol, but it could end up setting similar targets. The U.S. might change as Europe has. Here, many people did- n’t want to recognize warming. They thought there would be another 50 years to go before the train would derail. But today I sense a growing interest among people. Has the Stern Report brought about a real sea change in opinion? Schellnhuber: Years of warnings from scien- tists have weakened those who argued that global warming was a fantasy. Now Stern has managed to tear down the last remaining walls of resistance by taking the facts and calculating their economic impact. His arguments will carry a lot of weight, because when it comes to politics, economic arguments count. Interview conducted by Jeanne Rubner In his report, British economist Sir Nicholas Stern warns that the world economy is in danger. Stern says the concentration of greenhouse gases in the atmosphere must be kept below 550 parts per million (ppm) if global warming is to be limited to a maximum of two to three degrees Celsius. Do you agree? Schellnhuber: Two to three degrees — that doesn’t sound like much, but it is. The temper- ature rise between the last ice age and the cur - rent temperate period was only five degrees, yet what a difference those five degrees have made for the world! But let me spell out in de- tail what the Stern Report says. Even if we meet the 550 ppm target, we will still face a 90-percent probability of global warming of more than two degrees. That’s pretty alarming. I would tighten Stern’s demand and stipulate an upper limit of 450 ppm. That way, there’s a 50-percent probability that global warming will be limited to two degrees, although a 50- 50 chance is not particularly reassuring either. Basically, to be sure of meeting the two-degree limit, we would have to cut emissions to below 400 ppm in the long term. Why two degrees? Is that, so to speak, the point of no return if we are to get a handle on global warming? Schellnhuber: It’s not a hard and fast line, but once we cross it, the damage becomes rapidly uncontrollable. The temperature of the planet would increase to a greater degree than at any other time during the last 20 million years — all within just one century. That would be a real roller-coaster ride for the earth, an unprecedented phenomenon. Would global warming that significantly exceeded two degrees really have a dramatic impact? Schellnhuber: Yes, it would. For a start, the sea ice in the Arctic and the ice on Greenland would melt completely, and the ice in the Antarctic would melt in part. In the long term, sea levels would rise enormously as a result. We’d have to evacuate practically all coastal areas; human civilization as we know it would have to be reinvented. What’s more, because of the direct CO 2 transfer from the atmosphere, the oceans would become more acidic, and marine life would also have to adapt. Second, the atmosphere would be more heavily laden with water vapor and energy, resulting in in- creasingly violent storms. Third, the variation in precipitation patterns would become more extreme, meaning even less rain in places where there is already little rainfall, and vice versa. Just one consequence of this would be increasing desertification. And fourth, because of the greater temperature difference between land and sea, Europe would face the prospect of a monsoon effect. How much would it cost to meet the two-degree target? Schellnhuber: According to Stern, we would have to invest around one percent of world GDP in order to limit global warming to be- tween two and three degrees. His report relies heavily on model calculations produced by our institute as part of an international comparative project. We adopted new methods of economic analysis, because earlier studies on the costs of protecting the atmosphere, mainly originating in the U.S., were based on false premises. They barely took account of technological advances in the use of environmentally friendly energy sources and therefore came to an unrealistically high figure. According to our results, even the cost of sticking to the two-degree limit is less than one percent of global economic output. Stern has factored in a safety margin, making his calculation more pessimistic than ours. And what would be the costs of doing nothing at all? Schellnhuber: At least ten times higher than the costs of protecting the atmosphere, that is to say somewhere between ten and 20 percent of world GDP. What concrete measures can we take? Schellnhuber: Essentially, the world’s energy system needs to be put on a new, low-carbon diet. That means, first of all, conserving energy and using it more efficiently, and, secondly, greatly increasing our use of renewable sources — including wind and solar power, and geothermal energy and biomass. By far the most cost-effective method here is simply to use less energy. The British town of Woking, for example, has reduced its CO 2 emissions by almost 80 percent over the last ten years, saving a lot of money in the process. There’s tremendous potential here. For instance, thermal insulation for buildings, low-energy lights, low-consumption vehicles, and lots more. Developing renewable energy sources is, by comparison, more expensive, but it is imperative in the long term. The Cost of Climate Change According to former British Prime Minister Tony Blair,the 650-page Stern Report, which was submitted on October 30 of last year, was the most important document produced during his entire time in office. The author, Sir Nicholas Stern, was a government advisor to Blair. Blair himself has de- fined climate change as a key political challenge. Indeed, the World Economic Forum in Davos at the end of January of this year supported Blair’s point of view, revealing a real consensus, particularly among participants from leading industrial nations, that action on climate change is urgently needed. According to Stern, a former Chief Economist at the World Bank, if the concentration of greenhouse gases in the atmosphere isn’t kept below 550 parts per million (ppm), there will be grave conse- quences for the world economy. By way of comparison, the level of greenhouse gases at the beginning of the Industrial Revolution was 280 ppm, while today’s figure is 430 ppm — and currently rising by 2.3 ppm a year. If we succeed in limiting greenhouse gases to 550 ppm, there will be global warming of between two and three degrees Celsius, the maxi- mum increase that climate researchers still consider endurable. This goal can be achieved only if the current rise in emissions of C0 2 and other greenhouse gases is halted by 2020, and thereafter reduced by around two percent per year. That will cost money — one percent of world GDP per year, according to Stern’s estimate. Yet inaction would be much more expensive. A tem - perature increase of five degrees Celsius could end up costing as much as one fifth of world GDP per year. 2000 2020 2040 2060 2080 2100 0 Global emissions (in billion tons of CO 2 equivalents per year) Greenhouse gas emissions peaking –––– in 2015, followed by a reduction of 1.0% p.a. –––– in 2020, followed by a reduction of 2.5% p.a. –––– in 2030, followed by a reduction of 4.0% p.a. –––– in 2040, followed by a reduction of 4.5% p.a. 10 20 30 40 50 60 Strategies for stabilizing greenhouse gases at a level of 550 ppm. The longer the delay before such measures are introduced, the greater the rise in emissions until that point — and the more radi- cally emissions will have to fall annually. The goal by 2050 is a 25- percent reduction from the current level — with a world economy that will be three or four times larger than today’s (i.e., they will have to fall by 75 percent per unit of GDP). Source: Stern Report. Based on: Schellnhuber et al., Cambridge Why Carbon Dioxide Emissions Need to be Cut in Half by 2050 A bout one third of the approximately 44.2 billion tons of CO 2 e that are emitted annually around the world as greenhouse gases comes from agriculture, forestry, land clearing measures and waste. “CO 2 e” refers to CO 2 equivalents. Other greenhouse gases — including methane, laughing gas, fluorocarbons and industrial gases (e.g. sulfur hexafluoride) — are converted into these equivalents to show their global warming potential compared to carbon dioxide (CO 2 ). Methane’s global warming potential, for example, is 21 times that of CO 2 , with one ton of methane corresponding to 21 tons of CO 2 e. More than two-thirds of the greenhouse gas emis- sions (currently about 28 billion tons of CO 2 e) are ener- gy-related, meaning they are caused by people’s energy consumption. The emissions result from electricity gen- eration in power plants, generation of heat, and fuel combustion by transport vehicles. In Germany, about 87 percent of greenhouse gases result from energy use, while the remaining 13 percent come from other sour - ces, including agriculture and the chemicals industry. Power generation is the source of nearly 40 percent of the world’s greenhouse gas emissions. The largest The Sources of Greenhouse Gases | Facts and Forecasts Reprinted (with updates) from Pictures of the Future | Spring 2007 7 Source: IEA World Energy Outlook 2008 Source: IEA World Energy Outlook 2008 Source: IEA, Germanwatch — Klimaschutzindex 2009. Reference value: energy-related CO 2 emissions 5% 10% 15% 20% 0% U.S. C hina Russia Japan India Germany Canada UK Italy South Korea Share … of total world CO 2 emissions of total world primary energy consumption of total world gross domestic product of total world population Top 10 CO 2 Emitters 0 0 1000 2000 3000 4000 5 10 15 20 25 Energy-related CO 2 emissions per capita and year (in tons) Population (in millions) North America 2006 2006 2006 2006 2030 2030 Europe South America Africa / Middle East Asia Regional Distribution of Energy- Related Carbon Dioxide Emissions The size of each circle corresponds to the total emissions of the region in question, and is computed by multiplying per capita emissions and population. 6 Reprinted (with updates) from Pictures of the Future | Spring 2008 Dr. Steven Chu, 61, is the 12th United States Secretary of Energy. Before his appointment he was director of the Lawrence Berkeley National Laboratory in Berkeley, California. He was also Professor of Physics and of Molecular and Cell Biology at UC, Berkeley. While at Stanford University his work led to the Nobel Prize in Physics in 1997. Interview conducted in Spring, 2008. Are we on the edge of a climate crisis? Chu: Climate change is a real threat to our long-term future. The issue is, what will happen if temperatures go up two degrees, four degrees, six degrees Celsius and so on? A six degree reduction in average global temperature is the difference between what we have today and what was experienced during the Ice Age. And six degrees on the plus side would also be a very different world. The glaciers on Greenland would have a good chance of melting away. Parts of Antarctica would melt. If these things happen, sea levels would increase by seven to ten meters. Bangladesh would be half underwater. What’s more, the glacial watershed storage systems that our economies are based on will be threatened. There will be increased species extinction. And there are other things that we can’t really measure at this point. For instance, we don’t know what the tipping point is for the release of the CO 2 that is locked in the tundra of Siberia and Canada. This is actually a biological question because there are bacteria in the tundra that will become active at a certain temperature. But we don’t know what temperature. When they come back to life they will release methane and CO 2 in such quantities that it will dwarf the amount of greenhouse gases that humans are putting out now. What can we do to avert global warming? Chu:I think the single most important thing we can do is to put a price on carbon. This can be a cap and trade system, a tax or what- ever. But it has to be a very clear signal, and it needs to be implemented without loop- holes. If the next U.S. president makes energy and climate change an initiative the way Kennedy made it an initiative to reach the moon, this would go a long way to solving these problems. What other steps should be taken? Chu:First of all, we should mandate efficien- cies in things like computers and consumer appliances. Second, we should require that before a house can be sold or even rented, the owner must provide a statement from utility companies certifying gas and electricity usage for the last 12 months. This would allow buyers and renters to compare energy requirements for different buildings. Guess what this would do? It would encourage homeowners at least one year before deciding to sell or rent out their property to seal major leaks, put in more insulation, and possibly install more energy-efficient heaters, air conditioners, etc. This would also help home owners and builders to do a better initial job of making new homes energy efficient because they would appear more attractive to prospective buyers. What would this cost? Almost nothing. The utility compa- nies already have records of electricity and gas use on every home. So why not provide this information to homeowners as a feedback mechanism? What technologies offer the greatest hope for a sustainable energy future? Chu:I think we should take a fresh look at geothermal from the local level with the use of better designed heat pumps, but also at the utility-generation level where you can enhance its effect by introducing a heat transfer fluid such as water or CO 2 . The reason for this is that anywhere you go, if you dig deep enough, you will find heat. Even if you only go down a few meters you get very stable temperatures. The earth is cooler in the summer and warmer in the winter. So you can think about heat pumps that will cool you in the summer and warm you in the winter. I think photovoltaics, solar thermal and biofuels are also getting a new look. There are also artificial photosynthetic systems that allow you to take electricity or sunlight and make a chemical fuel. In the long term, artificial photosynthesis will supply the world’s transportation fuel needs. While we will soon develop batteries to power plug-in hybrids and all-electric vehicles, it will be a while before we get trains and trucks that work on the same principle. Hence, in the foreseeable future, we will need a high energy-density transportation fuel that can be provided by an artificial photosynthetic system that requires far less water than fuels based on growing plants or algae. This is a technology we are going to have to master. Interview conducted by Arthur F. Pease Interview | Steven Chu Prescriptions for a Threatened Planet N 2 O 6% Industrial gases 1% CO 2 81% CH 4 12% CH 4 : methane (e.g. from cattle) N 2 O: nitrous oxide (laughing gas, e.g. from power plants and vehicle emissions) Industrial gases: fluorocarbons (e.g. from refrigeration systems), sulfur hexafluoride (e.g. used as an insulator gas) Major Sources of Greenhouse Gases. One Fifth Are Not From Carbon Dioxide share of CO 2 from power plants results from turning fos- sil fuels into usable energy such as electricity and district heating; a small share is also generated during the facil- ities’ construction and by the supply of fuels. The cumu- lative CO 2 emissions of lignite power plants, for example, are about 1,000 grams per kilowatt-hour (g/kWh) of elec- tricity; hard coal plants produce 780 g/kWh. And the atmosphere even feels the effect of nuclear power plants, which give off small amounts (around 25 g/kWh) of CO 2 from uranium mining and enrichment. Photovoltaic facilities account for about 100 g/kWh of CO 2 , due to the production of solar cells, modules and inverters. Wind plants (20 g/kWh) and hydroelectric facil- ities (4 g/kWh), by contrast, have very low CO 2 emissions. A look at the regional distribution of energy-related emissions shows the biggest shares are from the U.S. and China (about 20 percent each), followed by Europe (14.5 percent), Russia (nearly 6 percent), India (4.5 per- cent) and Japan (4.3 percent). According to the IEA, energy-related emissions will rise by almost 50 percent to about 40 billion tons of CO 2 by 2030 if countermea- sures aren’t taken. As the world’s largest coal consumer, China is expected to produce twice as much CO 2 as the U.S. by 2020. But China’s emissions are still low, seen on a per capita basis: about five tons of CO 2 per year, com- pared to roughly 7.8 in Europe and 19 tons in the U.S. Sylvia Trage 2030 2006 2030 2030 Non-energy use 3% Other energy sector 5% Industry 17% Buildings 13% Power generation 42% Transport 20% 26.9 billion tons of CO 2 per year Energy-Related CO 2 Emissions by Key Sectors Reprinted (with updates) from Pictures of the Future | Fall 2008 9 Pictures of the Future | Environmental Portfolio 8 Reprinted (with updates) from Pictures of the Future | Fall 2008 Why Climate Change Is Powering Growth Siemens’ leadership in products and solutions designed to protect the environment and the climate is worth a bundle. In fiscal year 2009 the company posted sales of €23 billion in this area and helped its customers reduce their carbon dioxide emissions by 210 million metric tons. J ust about everyone today agrees that climate change is threatening both the environment and the global economy. In the summer of 2008, the heads of the leading industrialized nations — the G8 — pledged to work to cut greenhouse gas emissions in half by 2050. This is also the target being pushed by climate experts on the Intergovernmen- tal Panel on Climate Change (IPCC). It’s clearly time for the world to act. According to a study conducted by British economist Sir Nicholas Stern, the consequences of extreme weather or a rise in sea levels could im- pact the global economy and necessitate expenditures of between five and 20 percent of gross world product (GWP). On the other hand, implementation of effective measures to combat climate change would cost much less. Limiting the rise of average global temperature to under two degrees, for example, would require an esti- mated investment of only around one percent of GWP a year. Such an in- vestment would make ecological sense, and in most cases economic sense as well — after all, it would provide many companies with oppor- tunities to achieve sustainable growth. For many years, Siemens has been a leader in environmentally- friendly power generation and distribution, as well as energy-efficient products ranging from lighting systems and drive units to building tech- nology and solutions for environmentally-friendly production processes. In 2008 a company-wide team led by Siemens Corporate Technology for the first time documented the company’s complete Environmental Port- folio, which lists all products and solutions that help protect the environ- ment and battle climate change. The list accounts for more than 25 per- cent of the company’s sales, and in 2009 amounted to €23 billion — much more than any competitor. In the same period of time, Siemens customers reduced their carbon dioxide emissions by 210 million metric tons, which is more than 40 times the level of CO 2 that Siemens itself produces. Independent auditing company PricewaterhouseCoopers regularly confirms the validity of the Siemens Environmental Portfolio and the savings it has generated, as well as the method Siemens used to calcu- late the savings. The Siemens Environmental Portfolio is expanding at an average annual rate of ten percent and will easily achieve the initial tar- get the company set of €25 billion by 2011. Siemens also has ambitious goals for its own environmental protection activities. In 2007, the com- pany emitted a total of 5.1 million tons of CO 2 equivalent. This figure consists of all emissions generated by energy consumption for electricity and heat, direct greenhouse gas emissions and emissions produced Combined Cycle Power Plants: Achieving 58% Efficiency The most environmentally- and climate-friendly conventional power plants are combined cycle gas and steam facilities that use natural gas. Such plants have a peak efficiency of more than 58 percent, and their CO 2 emissions per kilo- watt-hour (g CO 2 /kWh) are only around 345 grams. The corresponding aver- age figures for coal-fired plants worldwide are 30 percent peak efficiency and 1,115 g CO 2 /kWh. The Siemens Environmental Portfolio therefore includes the modernization of old coal-fired plants. The company’s technicians recently raised the efficiency of the Farge plant operated by E.ON by three percentage points to 45 percent — an improvement that reduces annual CO 2 emissions by 100,000 tons. The Environmental Portfolio for fossil power generation also in- cludes fuel cells, heat and power co-generation, and power plant control technology. Mass Transit: Cutting Energy Bills by 30% The transportation sector accounts for 25 to 30 percent of global end-consumer energy con- sumption. And mobility is going to substantially increase in the future, which means transporta- tion must become more environmentally friendly. The Velaro high-speed train — the world’s fastest rail vehicle — requires the equiva- lent of only two liters of gasoline per person and 100 kilometers when half full. The consistent lightweight design of subway trains in Oslo has reduced energy consumption by 30 percent. Road traffic energy efficiency can be improved as well — by using LEDs in traffic lights, for ex- ample. Siemens’ Environmental Portfolio for the transportation sector also includes traffic and parking management systems, airport naviga- tion lighting, and rail traffic automation and power supply systems. Server Farms: Achieving 80% Utilization Rapidly growing data volumes and ever-more powerful computers are pushing up energy consumption and putting a strain on the envi- ronment. Experts have calculated that computer servers around the world require the complete output of 14 power plants in the 1,000-mega - watt class. Siemens’ “Transformational Data Center” Environmental Portfolio component balances economy, ecology, and flexibility by addressing all aspects of a server farm, from planning and construction to operation and outsourcing. It also includes systems for active energy management and computer center automation. The Transformational Data Center has enabled Siemens-operated server farms to increase their capacity utilization to more than 80 percent, which in turn lowers energy con- sumption. Power Transmission: 5,000 MW Energy Highway High-voltage direct-current power transmission (HVDC) has proven to be a very effective tech- nique for transmitting electricity over long dis- tances with minimal losses. An example is an HVDC “electricity highway” being built in China between Yunnan Province in the southwest and Guangdong Province in the south. In mid-2010, this HVDC line will begin transmitting 5,000 megawatts of environmentally friendly electricity from hydropower plants over a distance of 1,400 kilometers at 800 kilovolts. Other ecological power transmission and distribution systems from Siemens include power grid links for off- shore wind parks, gas-insulated transmission lines, gas-insulated transformers, and the Siplink DC coupler, which eliminates the need for diesel generators on docked ships. Light-Emitting Diodes: Saving up to 900 Billion Kilowatt Hours The use of efficient lighting technology could reduce global electricity con- sumption by more than 900 billion kilowatt-hours per year, which is twice the annual electricity consumption of France. Based on the current worldwide electricity mix, such a reduction would also lower CO 2 emissions by more than 500 million metric tons per year. Energy-saving lamps from Osram boast a high level of luminous efficiency and use up to 80 percent less electricity than light bulbs. They also last up to 15 times longer. LEDs are the light sources of the future. These semiconductor compounds directly convert electricity into light and last for more than 50,000 hours. Like energy-saving lamps, LEDs con- sume up to 80 percent less electricity than light bulbs. Siemens’ Environmental Portfolio also includes fluorescent lamps and electronic ballasts, Halogen En- ergy Savers, and high-intensity discharge lamps. Medical Scanners: Up to 97% Recyclable Ever-more efficient devices and the retrofitting of existing equipment with the latest technology are reducing the environmental impact of med- ical systems. The Somatom Definition computer tomograph uses up to 30 percent less electricity than a conventional unit and also contains 83 percent less lead. As much as 97 percent of the Somatom Definition’s weight can be recycled. T he Magnetom Essenza magnetic resonance u nit has a lower wattage for energy and cooling than its conventional counterparts, thereby re- ducing electricity costs by as much as 50 per- cent. In addition, the use of refurbished systems reduces CO 2 emissions by 10,400 tons per year. eration sector as well. The average efficiency rating for coal-fired power plants worldwide is 30 percent. Siemens technology achieves a 47 per- cent efficiency rating, however, and combined cycle plants will soon reach 60 percent. Consumers can also do their part — for example, by using energy-saving lamps and light diodes, both of which consume 80 percent less electricity than incandescent light bulbs. New refrigerators can also help, as these require as much as 75 percent less energy to op- erate than 1990 models. Siemens is the only company able to offer efficiency-enhancing prod- ucts, solutions, and green technologies across the entire value chain. It offers everything from equipment for power generation, trans- mission, and distribution to energy-saving services, as well as state-of-the-art IT solu- tions for energy management. All of these are part of the Environmental Portfolio, which in- cludes: Products and solutions that display extraor- dinary energy efficiency, such as combined cycle power plants, energy-saving lamps, and intelligent building technologies. All equipment and components related to the utilization of renewable energy sources (including components for renewable power generation itself) — e.g. wind power facilities and their grid connections; steam turbines for solar energy. Green technologies for water treatment and air quality maintenance. Experts from through business trips. By comparison, automakers produced two to five times more emissions per employee — and oil companies generate around 200 times that level. Despite its relatively low CO 2 footprint, Siemens is determined to achieve a 20 percent reduction in greenhouse gas emissions relative to sales by 2011, as compared to 2006 levels. The growing concentration of CO 2 in the atmosphere has a major im- pact on climate change — and we must do everything in our power to diminish this trend. There’s still time to act. Most of the technology needed to do so is already available. London offers a good example. Ac- cording to a study conducted by McKinsey on behalf of Siemens, the British capital could cut its CO 2 emissions by 44 percent between now and 2025 using solutions already avail- able — without reducing its citizens’ quality of life. The greatest potential for energy savings can be found in buildings, which account for nearly 40 percent of global energy consump- tion. Savings of approximately 30 percent could, for example, be achieved here through more effective and efficient insulation, venti- lation, air conditioning and heating systems. The situation is similar in industry, where the lion’s share of electricity consumption is ac- counted for by electric drives. Equipping these with state-of-the-art frequency convert- ers would result in a 60 percent reduction in electricity consumption. Similar potential for improvement can be found in the power gen- 10 Reprinted (with updates) from Pictures of the Future | Fall 2008 Reprinted (with updates) from Pictures of the Future | Fall 2008 11 Corporate Technology and the Siemens Sectors have also calculated for the first time the greenhouse gas savings potential for each Siemens product and solution. Their calculations are based on a before-after comparison specific to each product or solution, such as the effect of a power plant modernization, or the impact that energy performance con- tracting has on energy optimization in buildings. Direct comparisons were also made with a reference technology. For example, emission reductions resulting from the use of low-loss, high- voltage direct-current (HVDC) transmission systems were calculated through a comparison of emis- sions generated by conventional AC transmission. The experts also compared new facilities with existing ones, whereby cor- responding average global emis- sion factors for power genera- tion were utilized. The following example illus- trates how the method works: State-of-the-art combined cycle power plants have an efficiency rating of approximately 58 per- cent and emit 345 grams of CO 2 per kilowatt-hour (g CO 2 /kWh). The experts compared this to the global average emission fac- tor for electricity generation across all energy sources, which is currently 578 g CO 2 /kWh. The product of the 233 g CO 2 /kWh difference and the amount of electricity generated annually at new combined cycle plants installed by Siemens during the corresponding business year equals the emission reduction. Siemens’ Environmental Portfolio reduced annual CO 2 emissions for the company’s customers by 210 million metric tons in 2009. In fact, products and solutions installed during 2009 alone led to savings of 62 million metric tons. That total is set to increase to 300 million tons by 2011, which corresponds to more than the current CO 2 emissions of Tokyo, New York City, London, Hong Kong, Singapore, and Rome combined. Siemens has firmly embedded its Environmental Portfolio into its business strategy. The company consistently ad- dresses the growth market for climate protection solutions and plans on expanding its lead in this area. This will not only safeguard Siemens’ own future and generate value for employees and shareholders; it will also make a major contri- bution to reducing CO 2 emis- sions worldwide. Customers will benefit from enhanced en- ergy efficiency, which will lower costs and enable them to succeed in a fiercely com- petitive environment. Norbert Aschenbrenner Air and Water Treatment: Radical Reductions in Pollutants Siemens’ Environmental Portfolio includes systems for maintaining water and air purity. The Cannibal system for wastewater processing reduces biological solids in water by up to 50 percent. In addition, Siemens supplies systems for treating industrial waste water used in sectors such as the paper industry. Flue gas treatment systems, such as electric filters, remove air pollutants such as ni- trogen oxides and sulfur dioxide. Such systems, in fact, achieve nearly 100- percent separation at power plants, industrial facilities, and waste incineration plants. Finally, the Meros process for cleaning sinter exhaust at steel produc- t ion facilities lowers emissions of dust, heavy metals, organic compounds, and s ulfur dioxide by more than 90 percent in many cases. Pictures of the Future | Environmental Portfolio Wind Power: 3.6 Megawatts per Turbine Renewable energy sources are becoming in- creasingly important. In Germany, they already account for more than 15 percent of electricity. Siemens supplies highly efficient wind power facilities for applications on land and offshore. Some 8,000 Siemens wind turbines are in opera- tion worldwide. Since 2003, the company has installed over 9,000 MW of wind power, which save 20 million metric tons of CO 2 per year. The largest turbine has an output of 3.6 megawatts and a rotor diameter of 120 meters. The rotor blades, which are single-cast and thus have no seams, are tough enough to withstand even gale-force winds. Siemens also offers complete photovoltaic facilities, thermal-solar power plants, and biomass plants. Buildings: Saving € 2 Billion in Energy Buildings account for around 40 percent of global energy consumption, thus making them responsible for 21 percent of greenhouse gas emissions. The biggest energy consumers in buildings are technical installations and lighting. Optimized heating, ventilation and air condition- ing systems can reduce energy consumption in renovated buildings by 20 to 30 percent on aver- age. Siemens Building Technologies has to date run more than 1,000 energy saving contracting projects worldwide. These projects have result- ing in savings of more than two billion euros and have reduced carbon dioxide emissions by over 1.4 million tons. Such savings alone are enough to recoup the initial investment associ- ated with this type of model. Industry: Enormous Energy-Saving Potential Whether for steel, paper, or other products — the world’s 20 million motors used in manufacturing account for 65 percent of the electricity consumed by industry. Energy optimization measures for such motors could cut annual CO 2 emissions by 360 million metric tons — that’s almost Australia’s annual emis- sion figure. Energy-saving motors’ losses are more than 40 percent lower than those of standard motors. By enabling various drive speeds, the use of a fre- quency converter cuts energy consumption by up to 60 percent. Siemens’ En- vironmental Portfolio also includes diesel-electric drives for ships, solutions for the metalworking and mining industries, energy recuperation systems for the paper industry, and energy management and consulting services. ~ 15 Mt ~ 40 Mt ~ 50 Mt ~ 50 Mt ~ 60 Mt ~ 60 Mt ∑ ~ 275 Mt 2002– 2005* * Based on comparisons with existing installations: Wind power (since 2003), combined cycle plants, high-voltage direct-current transmission (HVDC), energy performance contracting ** Includes all greenhouse gases: Emissions from production, electricity and heat consumption, business trips, and the company’s vehicle fleet. Mt = megatons (millions of metric tons) 2007 2009 2011 (target) 5.1 60 210 114 300 CO 2 reductions by customers CO 2 reductions achieved through Siemens products and solutions in the year in ques- tion Annual savings through products and solutions from previous years Mt CO 2 Rome Hong Kong Singapore London New York City Tokyo Total green- house gas emissions produced by Siemens** Total emissions (as CO 2 equivalent) 2007 2006 2009 2011 (target) Sales from Environmental Portfolio products and solutions (in € billions) 17 2008 19 23 25 Environmental Portfolio: €25 billion by 2011 Siemens Cuts CO 2 by as much as the Emissions of Six Major Cities Sources: Siemens, McKinsey, UN Statistics, as well as multiple government sources 15 14 African Sunlight for Europe The goal of the Desertec Industrial initiative is to help Europe meet its future energy requirements by supplying solar power from North Africa. By 2050, 15 to 20 percent of Europe’s energy requirements may be met by solar imports. This would require 2,500 sq km of desert for solar power plants and 3,500 sq km for transmission lines through out the entire EU-MENA region. The technology to do it exists today. 20 High-Altitude Harvest Siemens has built the world’s largest offshore wind farm on the North Sea off the Danish coast. There, 91 turbines pump around 210 megawatts of electrical power into the network – enough to supply over 136,000 house- holds with electricity. The rotors are so stable they can withstand hurricanes. 23 Tapping an Ocean of Wind Siemens and Statoil Hydro have installed the world’s first large- scale floating wind turbine – opening the door to harvesting the power of the wind on the high seas. The turbine, which is located off the southwest coast of Norway, is held in place by three steel cables moored to anchors on the seabed. The power generated by this first floating windmill will be sent ashore via a marine cable. Highlights 2030 Harvesting electricity in 2030. A solar ther- mal power plant in the Moroccan desert covers 100 square kilometers, which makes it the world’s largest installation of its kind. Using HVDCT lines, the electricity is trans- mitted as direct current at 1000 kilovolts to the coast, where it transforms salt water into pure drinking water. From there, it is transmitted across the sea to Europe, where it provides clean power to many countries. 12 The Electric Caravan Renewable Energy | Scenario 2030 Morocco in 2030. Karim works as an engineer in the world’s largest solar thermal power plant, which transmits energy from the desert to faraway Europe. Every evening he takes the time to admire the sunset above the countless rows of parabolic mirrors. But today he’s not doing it alone. want to miss the daily evening show. Before the sun sets he wants to reach the hill above the “frying pan” — his colleagues’ name for a huge solar thermal installation in the Moroccan desert. In the glow of sunset, the level field of countless mirrors is transformed into a sea of red flames. It’s a spectacle Karim has never yet T he reflected image of the man walking past the glittering parabolic mirrors is oddly dis- torted. It wanders like a mirage through the seemingly endless row of mirrors, stops briefly and then continues on its way. There’s not a breath of wind, and even though the sun is now low, the temperature is still over 30 degrees Cel- sius. Karim is in a hurry, because he doesn’t missed in the five years since he was sent here to help manage the world’s biggest solar ther- mal power plant. Together with his colleagues, he lives and works in a small settlement on the edge of the installation. With the help of thousands of sen- sors, solar thermal power experts here monitor the power plant, which covers 100 square kilo- Reprinted (with updates) from Pictures of the Future | Fall 2009 13 Reprinted (with updates) from Pictures of the Future | Fall 2009 15 Desert Power By 2050, electricity generated at solar-thermal power plants and wind farms in Africa and the Middle East is expected to cover 15 to 20 percent of Europe’s energy needs. That’s the goal of the Desertec Industrial Initiative. Siemens is a founding member and technology partner. Solar-thermal power plants convert sunlight into electricity. Pictured here is the Solnova 1 plant of Abengoa Solar near Seville, Spain, and a plant in California’s Mojave desert (small picture). S uddenly, he no longer had a quiet mo- ment. There were calls from the Chan- cellery, ministries, ambassadors, and company representatives by the minute — and although Prof. Hans Müller-Steinhagen from the Ger- man Aerospace Center (DLR) in Stuttgart, Ger- many, is used to acting more like a manager than a researcher, he was still overwhelmed. “When you’ve got 250 people working for you, you can’t just hide in the lab,” he says. Still, what he experienced in the summer of 2009, when the whole world started talking about Desertec, was something completely different. In fact, just as Müller-Steinhagen fin- of researchers in Stuttgart under the direction of Müller-Steinhagen’s colleague Dr. Franz Trieb has determined that solar-thermal power plants could meet the world’s entire energy re- quirements. To achieve that, however, it would be necessary to cover an area measuring around 90,000 square kilometers — that’s about the size of Austria — with mirrors. But, according to the DLR, which has studied the associated technology for over 30 years, if only 15 to 20 percent of Europe’s energy demand — the goal of the Desertec project — were covered, an area of around 2,500 square kilometers would be sufficient. An additional 3,600 square kilometers would be needed for the high-voltage power lines that would transmit electricity to Europe. This vision is now gaining traction thanks to several large companies that joined to form the €400 billion Desertec Industrial Initiative GmbH (DII) at the end of October 2009.Ac- cording to DLR estimates, €350 billion will be needed to build the project’s power plants and €50 billion for associated transmission tech- nology. Partners in the initiative include companies that are normally rivals, as well as a major bank and the Münchener Rück insurance com- pany, one of the largest reinsurers in the world. Siemens is one of the driving forces in the initiative — which should be no surprise given that its portfolio of solutions for solar- thermal power plants includes all the key com- ponents such as steam turbines and receiver tubes, power plant control technology, and systems for transmitting high-voltage direct current with low losses (HVDC, see p. 44). “Solar-thermal power works — there’s no question about it,” says Müller-Steinhagen. In fact, a cluster of power plants in California’s Mojave Desert has demonstrated for over 20 years that a huge amount of electricity can be generated with solar energy. The facilities feed some 350 megawatts into the grid — enough electricity to power 200,000 households. Solel, a solar thermal company that Siemens acquired in late 2009, contributed so- lar collectors and receivers to plants in the Mo- jave Desert. In addition, the company is in- volved in a number of projects, predominantly in Spain, which are due to enter service in 2010 and 2011. In these cases, efficient UVAC receivers, devised by Solel, were chosen by project developers. There are many reasons why solar thermal technology is now being widely discussed and employed, with increased awareness of the need for climate-friendly power being chief among them. In addition, technology for low- loss transmission of electricity over long dis- tances has now established itself, while recent innovations have made solar-thermal power plants even more efficient. When oil prices begin rising again, as is expected after the economic crisis, solar-thermal electricity may quickly become competitive. In fact, its pro- duction in favorable regions already costs less than €0.20 per kWh. Major Alliance.If there’s one person who might be called the father of Desertec, it’s Dr. Gerhard Knies. Knies is Chairman of the Super- visory Board of the Desertec Foundation, which developed the Desertec concept that is | Solar Energy ishes describing this, the phone rings — this time it’s the German Embassy in London, ask- ing if he’d be willing to do a presentation. Along with the Desertec Foundation and the German Association for the Club of Rome, Müller-Steinhagen’s Institute of Technical Thermodynamics is one of the nerve centers for a project that has been compared in size with the Apollo space program — which cul- minated in the 1969 moon landing. Desertec, however, focuses on the sun rather than the moon — more specifically on the sun’s energy. In conjunction with the Trans-Mediterranean Renewable Energy Cooperation (TREC), a team 14 Reprinted (with updates) from Pictures of the Future | Fall 2009 meters. As soon as these tiny digital assistants register a defect, Karim and the rest of his main- tenance crew go to work. Karim, a true son of the desert, moves through the heat very slowly and carefully — and in contrast with his European colleagues, who rush around sweating, his shirts always re- main dry. But now he too is in a hurry, and he’s relieved when he has reached the garage with the off-roaders. Trained as an engineer, Karim is a calm and deliberate man. He seldom uses bad language — only in the rare cases when there isn’t enough sugar in his tea or when one of his col- leagues has forgotten to “tank up” the off- roader, as has just happened. The electric vehicle wasn’t plugged into an electrical socket — sockets that are supplied with power from the solar thermal installation. Nevertheless, Karim gets into the driver’s seat and presses the starter button. The vehicle’s 150 kilowatt electric motor starts up with a soft purr. A pictogram on the control panel indicates that the battery only has 10 percent of its full capacity. When fully charged, the vehicle has a range of 350 kilometers — and ten percent is not enough to get him up the hill. But the off-roader is equipped with a small, highly efficient gasoline engine for emergen- cies, which works like a generator and gives the vehicle an additional range of 300 kilometers. And the gas tank is still full. Karim is satisfied, steps on the gas pedal, and the off-roader jolts off almost silently along the sandy trail toward the hill. The final meters are the most difficult ones. The electric off-roader pushes through the sand with great effort, but eventually it reaches its goal. Karim climbs out of the vehicle and hur- ries to the top of the hill. The sun has already reached the horizon, and the temperature has dropped noticeably. A gentle breeze is coming from the sea. But Karim doesn’t notice it, be- cause he now smells something burning. Nearby he finds a small campfire. In front of it sits a nomad holding a teapot above the crackling flames. The old man greets him with the traditional “Salam” and motions for him to come closer. Karim hasn’t seen any nomads in this area for a long time now — but he knows that they’re always on the go. He gives the old man a friendly nod and sits down beside him at the campfire. “My name is Hussein,” says the nomad as he hands Karim a glass of tea. “What brings you here?” Karim shovels several spoonfuls of sugar into his tea. He points down the hillside. “Do you see those countless mirrors that are just now reflecting the last rays of the sun? They are generating electricity from the sun’s heat. This power plant produces enough electricity to sup- ply all of Morocco. My job is to make sure every- thing runs smoothly.” Hussein looks down at the installation, which is starting to glow red in the sunset. “A power plant? I’d say it looks like a work of art created by some crazy European.” Karim grins. “You’re not too far off the mark. This technology was in fact developed in Eu- rope. Installations like this one are being built all over North Africa. They’ve been going up for years. The mirrors automatically swivel so that they’re always facing the sun. They capture the sun’s beams and focus them on a pipe that is filled with a special salt. The salt is heated to as much as 600 degrees Celsius and generates steam, which in turn drives a turbine that pro- duces electricity.” Hussein points to the west, where the sun is dipping beneath the horizon. “And what hap- pens after it gets dark?” he asks. “The power plant is equipped with storage systems that contain the same kind of salt that’s in the pipes,” explains Karim. “This salt stores so much heat that the plant can also produce electricity at night.” The nomad looks thoughtful. “But what do we need all that electricity for?” he asks. “There’s only dust and gravel here wherever you look, and Casablanca is far away.” Karim points to a gigantic high-voltage overhead line leading northward from the installation through the desert until it is lost from sight. “We use some of the power to change seawater into drinking water,” he says. Hussein nods. This makes sense to him. Karim likes explaining things to people and is now hitting his stride. “But we also sell a lot of it at good prices to European countries that want to become less dependent on oil, natural gas, and coal. The energy is transported to them via electricity highways like this one. It works like a caravan — the electricity travels across dis- tances as great as 3,000 kilometers to European cities that use enormous amounts of power. However, by transmitting it at 1000 kilovolts hardly any electricity is lost in transit.” Karim sips his tea with satisfaction. “The desert holds our past and also our future,” he muses. “In the old days we pumped petroleum out of the ground and today we’re harvesting solar energy.” The old man lays a hand gently on Karim’s shoulder. “The sun gives us everything we need to stay alive — our forefathers already knew that,” he says with a smile as he hands a warm blanket to his guest. “But the night is coming on quickly. Here, take this. In spite of your gigantic power plant down there you’re shivering like a sick camel.” Florian Martini Renewable Energy | Scenario 2030 on such days,” says Valerio Fernandez, Director of Operations and Maintenance at Abengoa Solar, which operates Solnova. “The turbine therefore has to be flexible enough to make up for these fluctuations.” As the morning sun rises, Fernandez in- spects the Solnova construction site, where workers are busy tightening bolts and assem- bling and polishing equipment. “On the whole in Seville we have very good conditions for solar-thermal power plants. About 210 days a year of perfect sunshine, from morning to evening,” says Fernandez. The Spanish feed-in law for subsidizing solar-thermal power has triggered a real boom. Since 2006, producers have been entitled to receive a maximum of approximately €0.27 per kWh from the gov- ernment, and civil servants are being buried in applications. Big Up-front Investment.Depending on the location and sunlight intensity, it now costs up to €0.23 to produce a kWh of electricity, which is relatively high. Electricity from wind power, on the other hand, can already be produced at Reprinted (with updates) from Pictures of the Future | Fall 2009 17 Reliable and highly flexible steam turbines from Siemens, such as the SST-700, are ideal for the special requirements of solar-thermal power plants (right: Solel’s Lebrija plant in Spain). competitive prices in many regions in Europe. But things weren’t always this way. Thirty years ago, it cost around €3 million to install one MW of onshore wind-power output, while today it costs only €1 million. Experts expect a similar development with regard to solar-ther- mal power. Here, the high cost at the moment is mainly due to the initial investment. For ex- ample, a 50-MW facility with heat storage costs around €300 million, which has to be paid off over the plant’s useful life, which can extend up to 40 years. Heat storage isn’t cheap, as indicated by ex- isting systems at the European Center for Solar Energy Activities, the Plataforma Solar de Almería, as well as in Andasol. But by storing heat produced during the day, both locations can generate electricity at night as well. Up until now, large insulated tanks containing liquid salts with a melting point of around 200 degrees Celsius have mostly been used as stor- age media. Researchers at DLR and other facili- ties are now trying to find ways to reduce costs by altering the storage media or fine- tuning power plant components to ensure that as little heat as possible is lost during the heat exchange process between the hot heat trans- fer agent and the steam. Fernandez thus expects that the initial in- vestment per MW of installed generating ca- pacity will soon decrease. “So far we’ve been producing mostly one-of-a-kind equipment and procuring special components, like re- ceiver tubes, from small production series. But when mass production for solar-thermal plants begins, investment and power generation costs will fall dramatically,” he predicts. Perfect Match.Industrial consolidation is proving helpful in this context. The acquisition of Solel Solar Systems by Siemens in October 2009 is a case in point. Solel has decades of experience in the development and manufac- ture of solar field equipment, including the high-tech receivers. In addition the company is active in the planning and construction of solar fields. This is a complementary fit with the traditional Siemens competencies for the power block, where steam is transformed into electrical energy, as Umlauft from Siemens confirms: “Siemens and Solel are a perfect match. We are the market leader in steam turbines for solar thermal power plants and, with the power block, we can offer a key part for solar power plants.” Bringing the ability to supply the most important key components under one roof opens up greater possibilities for enhancing efficiencies of the integrated solution, thinks Avi Brenmiller, CEO of Solel Solar Systems: “Together, we will utilize our know-how in these core competencies to further optimize the water/steam cycle and to further boost the efficiency of solar thermal power plants.” Solel is not the first acquisition of Siemens in the field of CSP. In March 2009 a 28 percent interest in Archimede Solar was bought. The Italian company develops receiver tubes through which molten salt rather than special oil flows. The advantage of this promising The Desertec concept: Solar power in the desert, wind on the coasts, and a network of transmission lines. 2.000 km Solar-thermal power plants Area needed for solar-thermal plants to provide electricity to: World (2005 consumption) EU 25 Power lines (e.g. HVDC, with extensions) Photovoltaic Wind Hydroelectric Biomass Geothermal MENA Desertec’s Energy Mix Source: Desertec Foundation 16 Reprinted (with updates) from Pictures of the Future | Fall 2009 Renewable Energy | Solar Energy optimize the facility’s yield, the mirrors con - tinuously track the sun to within one-tenth of a degree of arc. The light they reflect is chan- neled into vacuum-insulated receiver tubes that contain a special oil that is heated to nearly 400 degrees Celsius. The oil later trans- fers its heat to water in heat exchangers, thereby creating steam. “At that point, a solar-thermal plant begins operating like a conventional facility,” says Umlauft. That’s because the downstream “power block,” in which electricity is generated from steam, employs the proven technology used in steam-turbine plants. But solar-thermal plants have special re- quirements with regard to turbine size and flexibility. For one thing, turbines in certain types of solar plants need to be able to start up very quickly when the sun rises. That’s one reason why many solar power plant operators opt for customized Siemens technology. In May 2009, Siemens opened a new turbine pro- duction hall in Görlitz, Germany, that produces the SST-700, the world market leader when it comes to parabolic trough power plants. In fact, Siemens’ share of this market is more than 80 percent. Together with control sys- tems from Siemens, the SST-700 turbine is also being used in another power plant in An- dalusia: Solnova 1 in Sanlúcar la Mayor, near Seville. Power generation was scheduled to begin at the facility in late 2009. SST-700 turbines are already in operation in many CSP plants around the world. The model is popular due to its reliability and specifica- tions — which are very well-suited to the size class currently in operation — and its flexibil- ity. “This is important because in Seville we have light cloud cover about 90 days a year. The plant’s output can fluctuate considerably According to estimates by Greenpeace, De- sertec would lead to the creation of some two million jobs in participating countries by 2050. Dr. René Umlauft, CEO of Siemens’ Renew- able Energy Division, has supported the initia- tive from the start. “Desertec can make a key contribution when it comes to establishing a sustainable energy supply system,” he says. “And with the solutions from its Environmental Portfolio, Siemens is the right technology part- ner for this visionary project, many of the ele- ments of which have already been imple- mented in Europe.” now being refined in the DII. A retired physi- cist, Knies’ favorite quote is from Albert Ein- stein, who said: “We can’t solve problems by using the same kind of thinking we used when we created them.” Knies believes this logic fits in very well with the issue of climate change brought about by CO 2 emissions, as this development can only be counteracted by revamping the energy supply system. Over the years, he has put together an impressive group of support- ers, including TREC, the Club of Rome, DLR, and Prince Hassan of Jordan. Desertec: 100 gigawatts of installed capacity would cover 15 to 20 percent of Europe’s electricity needs. “We all understood that putting a halt to climate change would require CO 2 -free tech- nologies like wind power, geothermal systems and, above all, solar-thermal facilities — all on a mass scale,” he says. Whereas Müller-Stein- hagen is one of Desertec’s technology design- ers, Knies got the associated political process moving. His work culminated in the launch of the implementation phase in the summer of 2009, when a consortium was established and support was obtained from companies such as Siemens. The DII intends to develop business plans and financing concepts to supply the MENA re- gion and Europe with power produced using solar and wind energy ressources.The goal is to build a belt of solar-thermal power plants in North Africa and the Middle East, which would be linked via high-voltage lines with local con- sumers and European countries. Plans call for achieving a capacity of 100 gigawatts (GW) and the supply of 700 terawatt-hours (TWh) per year by 2050, which would cover 15 to 20 percent of Europe’s electricity needs. Obviously, these plants could meet an even higher share of energy demand in the dynami- cally growing countries in which they would be located. The electricity requirement in the MENA Region (Middle East and North Africa) is expected to increase five-fold over the next 30 to 40 years, to 3,500 TWh. “Solar-thermal plants and wind power facilities could, for ex- ample, play a key role in the energy-intensive desalination of seawater,” says Knies. Moreover, because as much as 80 percent of the value created through construction of the power plant facilities will remain in the MENA countries themselves (e.g. through the production of mirrors, foundations, and frames), a project like Desertec would also greatly boost development in the region. For instance, Siemens is the market leader in the construction of new offshore wind tur- bines, many of which can be found on Euro- pean seas (see p. 20),and it has, through Solel, strengthened its capability to offer the key components for the construction of para- bolic trough power plants from a single source and to further enhance the efficiency of these plants. Siemens technology can be found in solar power plants built by other companies as well. At the beginning of 2009, for example, the Andasol parabolic trough plant went on- line in Andalusia, Spain. Just Follow the Sun.The Andasol plant is equipped with curved parabolic mirrors laid out in long rows covering an area of 500,000 square meters. These mirrors will enable the plant, which will consist of three complexes in its final expansion stage, to generate 150 MW in all, and 176 GWh per complex and year. To Ninety percent of the earth’s population lives within less than 3,000 kilometers from the earth’s sunbelt. Areas with the Best Potential for Solar-Thermal Facilities Suitable: 100–150 GWh/km 2. year Good: 150–200 GWh/km 2. year Outstanding: 200–300 GWh/km 2. year Source: Solar Millenium Three Ways to Put Solar Power to Work The basic principle underlying solar-thermal electricity generation (concentrated solar power — CSP) is simple: Energy from the sun heats water, either directly or indirectly. The water vaporizes, and the resulting steam drives a turbine whose motion is converted into electricity in a generator. The large tur- bines used in today’s coal-fired power plants operate at over 600 degrees Celsius and at pressures of up to 285 bar, thereby enabling an efficiency as high as 46 percent. CSP plants have much lower steam parameters and outputs, which is why smaller turbines, like the Siemens SST-700, are used at such facilities. In addition, many CSP power plants (especially those not equipped with heat storage) need to be started up very quickly at sunrise, which in turn requires highly flexible turbines. There’s also another important difference between CSP units and coal power plants: Power generated at the former is completely CO 2 free. All CSP plants concentrate solar energy using mirrors distributed across a small area in order to generate high temperatures. The most widely used technology today employs half-open parabolic mirrors, with a receiver tube mounted along the focal line (top). A liquid flows through this tube as a heat transfer agent; a special synthetic oil is the most commonly used substance today. The oil is heated to approximately 370 degrees Celsius, after which it transfers its heat via a heat exchanger to water, which drives a turbine in the form of steam. Alterna- tively, special salts can be used instead of thermal oils. These salts can be heated up to 550 degrees, thereby increasing the efficiency of the plant. Some compa- nies are now also testing direct steam generation systems in which water is used as the heat transfer agent in the receivers and is sent on to the turbine as hot steam in a closed loop. As a result, a heat exchanger is no longer required. Many solar-thermal plants are also equipped with heat storage so that they can pro- duce electricity at night as well. Here, steam is either stored directly in heat-insu- Reprinted (with updates) from Pictures of the Future | Fall 2009 19 plus, which could be transmitted to Europe. Clearly, in such a case, losses must be mini- mized — and this is where high-voltage direct current transmission (HVDC) comes in. Electricity Highway. “Transferring power via conventional AC lines over thousands of kilo- meters from Africa to Europe would lead to huge losses,” says Dr. Dietmar Retzmann, Sie - mens’ leading expert for HVDC trans mis sion technology. “Such losses can be greatly redu - ced by using HVDC lines and undersea cables.” HVDC loses only around ten percent of power over 3,000 kilometers — that’s roughly the distance from the southern end of the Sahara to Central Europe. Siemens is now building the most powerful HVDC connection in the world in China, where 5,000 MW of power will be transported 1,400 kilometers (see p.44). “Such HVDC lines are like electricity highways,” says Retzmann. “We’re going to need them in Eu- rope when we expand our grid and large amounts of electricity from wind power facili- ties will have to be moved great distances.” Desertec might therefore become a key com ponent of tomorrow’s energy networks. The project provides solutions in three key ar- eas, according to Michael Weinhold, chief technologist at Siemens Energy. “Energy sys- tems must be effective in terms of three di- mensions,” he says, “economy, environment, and security. Desertec will be good for the en- vironment, it will be designed in an economi- cal manner, and it will enhance European en- ergy security because it will substantially re d uce dependence on fossil fuel imports.” The key issue with solar-thermal power to- day is no longer feasibility but the ability to achieve efficiency in large-scale applications. The main issue for the MENA Region is to en- sure continued stable economic development and a reliable supply of energy for desalination plants which produce drinking water. The wa- ter table in Sanaa, Yemen, for example, is sink- ing at the rate of six meters per year, according to Müller-Steinhagen. In Egypt, new water sources with a volume equivalent to the entire flow of the Nile need to be tapped by 2050. Desalination at solar-thermal facilities could meet a large por tion of this requirement. In conjunction with mo dern technology, the sun that beats down on this region, could one day be bringing water, electricity, and life to the desert. Andreas Kleinschmidt lated pressure containers or the heat from the steam is transferred to an addi- tional storage medium — usually in the form of the special salts that can also be used in the receiver tubes. Utilizing salt as both the transfer agent and storage medium eliminates the need for a heat exchanger, which may one day lower both investment and operating costs relative to other technologies. CSP power plants can also be built as central receiver systems that use flat mirrors to reflect sunlight onto a small area on the top of a centrally located tower (bottom) that is often taller than 100 meters. This approach enables the highest possible temper- atures to be achieved (up to 850 degrees Celsius). However, the farther away the mirrors are from the tower, the lower the efficiency, which is why such plants must be kept small. A cost-saving alternative is offered by Fresnel technology. Here, long strips of flat mirrors (which are cheaper to produce than parabolic troughs) reflect light onto a receiver tube suspended above them (middle). However, the low initial investment cost for Fresnel power plants comes at the price of lower efficiency. Experts believe that the market for solar-thermal power plants will post double-digit annual growth between now and 2020, reaching a volume of over €20 billion by then. A number of competing technologies will probably continue to exist side by side as they undergo further development. Andreas Kleinschmidt Andreas Kleinschmidt How a Parabolic Trough Plant Operates Solar field with parabolic troughs Heat transfer medium (e.g. salt) Heat storage Cold Hot Water-cooled condenser Steam turbine Generator for producing electricity Heat ex- changer Source: Siemens 18 Reprinted (with updates) from Pictures of the Future | Fall 2009 Renewable Energy | Solar Energy Prof. Hans Müller-Stein- hagen, 55, has headed the Institute of Technical Ther- modynamics at the German Aerospace Center since 2000. After earning a PhD in pro - cess technology, he wor ked for seven years at the Uni - versity of Auckland in New Zealand, before becoming a dean at the University of Surrey, UK. Working clo sely with designers and facility operators, Müller-Steinha - gen’s teams have made solar electricity generation much more efficient. Their institute is a global leader in its field. Making Solar-Thermal Power Competitive produced in Africa and the Middle East to Europe involves projects that can only be suc- cessfully implemented by a large number of big companies — companies that can supply high voltage direct current technology and that also possess the necessary project expert- ise. Siemens is in a very good position to play such a role. What type of research still needs to be performed? Müller-Steinhagen: Our main goal is to in- crease electricity production efficiency. If we could increase our efficiency to 20 percent from the current average of 15 percent, we could reduce the area needed for the mirrors by one-third. Don’t forget that the collectors account for nearly half of the total investment cost. We’re also experimenting with direct steam generation, where water in the receiver tubes is converted into steam and sent on di- rectly to the turbine. We have worked with Siemens here on liquid separators. Losses can also be minimized through the use of differ- ent storage media. So, if we can boost effi- ciency through many measures, even if it’s just one percentage point at a time, the cu- mulative effect over the lifespan of a facility could be substantial. The German Aerospace Center is therefore working closely with Siemens in many areas to ensure that the so- lar-thermal plants of the future will be built in the near, rather than in the distant, future. Interview conducted by Andreas Kleinschmidt. When will solar-thermal electricity become competitive? Müller-Steinhagen: That depends on prices for conventional fuels — and in 2008, we saw just how volatile they can be. It also depends on the development of investment and oper- ating costs for solar-thermal facilities. We’ve already overcome the first major challenge with the launch of the Desertec Industrial Ini- tiative. As we begin producing more solar- thermal electricity, it will become cheaper. Costs will decline when large companies start using and further developing the technology. One result will be the mass production of components. I’m confident that we can be- come competitive in about 15 years. Saving the world with big projects is a concept that has sometimes caused major problems — for instance in dam construc- tion projects. Isn’t it possible that this could happen with Desertec? Müller-Steinhagen: Although Desertec is a gigantic project as a whole, it’s also the sum of many smaller and more easily manageable projects. After all, many plants, each with a capacity of at least 50 megawatts, could grad- ually go online. That sort of value is common in Spain today. This approach will work be- cause investment costs can be kept at a man- ageable level. And with the right financial in- centives, such plants can be operated profitably. At the same time, the infrastruc- ture needed to transport some of the energy future technology is that unlike oil, which ages with frequent temperature changes and thus must be replaced, molten salt can remain in the cycle. It also allows operation at tempera- tures up to 550 degrees Celsius, which boosts efficiency because the steam that drives the turbine can also be brought to higher temper- atures and pressures. What’s more, the use of salt eliminates the need for high-loss heat exchangers because the salt in the receiver tubes can also be used as the storage medium and can be pumped into an insulated tank as well. After it cools, the salt flows back into the receiver, where it again “harvests” solar energy. Construction of a new factory for produc- ing Archimede receivers in northern Italy has begun this year; the facility is expected to enter service in 2010. Archimede tubes are already being used at a solar field in southern Italy. Instead of using special oil or molten salt, it’s also possible to produce steam directly in absorber tubes. This eliminates the need for an expensive heat transfer agent, as water can be used to generate steam directly. Together with the DLR, Siemens has been working on the associated technology for many years. Thanks to the major advances achieved so far, it will be possible to operate some of the para- bolic collectors at the Andasol-3 power plant with such a direct steam generation system. Conditions for solar power generation are even more favorable in the deserts of the U.S. and North Africa than in southern Spain. Egypt, for example, is considered to be ideal for solar power because the Nile can provide sufficient cooling water for the condensers in the steam cycle. However, condensers can also be cooled in dry regions using air, although ef- ficiency in this case is 20 percent lower. Such an approach might make sense in parts of Al- geria, for example, where stone deserts offer an optimal location for solar-thermal power plants for a different reason: There are no sand storms that could damage mirrors. Algeria is the site for the future Hassi R’Mel power plant, a 160-MW facility currently under construction that combines a conventional gas and steam turbine plant with solar technology. The facility will initially generate electricity for the local market. However, with the construc- tion of more and more power plants, North Africa will eventually have an electricity sur- Reprinted (with updates) from Pictures of the Future | Fall 2009 21 High-Altitude Harvest Siemens is building the world’s largest offshore wind farm 30 kilometers from the Danish coast. The project is both a technical and logistical challenge because the individual com- ponents are huge, weigh dozens of tons, and must operate flawlessly in the windy North Sea — even during a hurricane. What’s more, they have to do all this for 20 years or more. The construction of the world’s largest offshore wind farm — the Horns Rev II off Denmark — is a chal- lenge from the production of rotors and trans-ship- ment at the harbor to assembly on the open sea. 1,500 rpm. The generator is hidden at the back and can produce 2.3 megawatts (MW) of elec- trical power once the wind speed exceeds eleven meters a second — but only if no visi- tors are present in the nacelle. “When anyone is visiting, the wind turbines are switched off for safety reasons,” says Møller, who heads Off- shore Technology at Siemens Wind Power divi- sion in Denmark. However, this is small conso- lation for visitors. Even though you are standing on a secure grid, you can’t help but feel there’s very little between you and the abyss beneath your feet. The North Sea swell is lapping at the foundations 60 meters below. At the same time, the structure sways lightly in the wind — despite its weight of over 300 tons. “It’s designed to do that,” says Møller, “because flexibility is what provides our wind power plants with their tremendous stability. Even severe storms haven’t caused any prob- lems.” Møller presses a switch and two roof wings open up above the nacelle to unveil a view of the North Sea. Dozens of wind turbines extend out in a row toward the horizon like a string of pearls. Some are rotating energetically in the A nybody visiting Jesper Møller at his fa- vorite workplace needs to have a head for heights, good sea legs, and no inclination to- ward claustrophobia. Secured with ropes, we climb narrow ladders and ride unsteady freight elevators in order to get to the top of a win- dowless tower. On arrival, Møller invites his guests into the inner sanctum: the approxi- mately six meter-long cylinder that forms the head of a wind power plant. A neon tube lights up the long shaft con- taining the gearbox, which transforms the ro- tation of the blades into a generator speed of Renewable Energy | Offshore Wind 20 Reprinted (with updates) from Pictures of the Future | Fall 2009 breeze; others are waiting to be commis- sioned, while a few more are mere founda- tions protruding out of the sea. Horns Rev II is the name of this wind farm, which is situated on a sandbank about 30 kilometers off the Danish coast. The park is still under construc- tion but when completed at the end of 2009, it will be the largest offshore wind farm in the world. A total of 91 turbines from Siemens will then be able to pump around 210 MW of elec- trical power into the network — enough to supply over 136,000 households. World Record for Wind Power. Such su- perlatives are nothing special by Denmark’s standards because they are already multiple world record holders. This small kingdom is not only the largest producer of wind power plants, but also generates 20 percent of its en- ergy requirements with wind power. In com- parison, Germany, has so far only managed seven percent. Perhaps the figures aren’t so surprising when you consider that Denmark is a windy country and enjoys only ten calm days a year. On really windy days, the windmills can produce half of the country’s electricity, and on a stormy night, this figure can even rise to 100 percent. However, this bounty of green energy does have its downside. Because such plants rely on the wind, long-term energy production plans are out of the question. As a result, these white giants can play only a limited role when it comes to meeting the fluctuating demand for grid power. In contrast, other types of power plants, such as gas and cogeneration plants, can be run up or run down according to demand. That’s why Energinet.dk, the state- run network operator, uses a sophisticated en- ergy management system that is partially based on several weather forecasting systems to get the best out of variable wind energy. In order to quickly respond to fluctuations, excess wind-generated electricity is diverted to trolled system. A host of sensors, both inside and outside the compartment, continuously measure the vibrations of the machine parts. Using this data, experts from Siemens can re- motely recognize when a problem is brewing, because each unusual reading triggers an alarm. In this way experts can detect anom- alies and prevent damage from occurring. Only the most observant visitors notice that the nacelle and blades incline slightly upwards at an angle of seven degrees “We have to maintain a safe distance between the blades and the mast,” says Møller. “They are so flexi- withstand during strong winds,” explains Nielsen. The secret of the blades’ stability can be found in the 250-meter-long production hall where they are manufactured using “Integral Blade Technology,” a patented process (see Pic- tures of the Future, Fall 2007, p. 60). What’s remarkable is that the rotor blades are manu- factured as a single component without seams — a method that only Siemens has mastered. At the start of the process, workers roll out long alternate layers of fiberglass mats and balsa wood in a form to make a kind of “sand- Norway’s pumped storage power plants to be used later during calm weather. Although cur- rently capable of coping with peak loads and stabilizing the network, this arrangement may not be equal to future demands — particularly as the Danish government plans to substan- tially expand its use of wind power in coming years. And that’s just fine as far as Møller is con- cerned. He has been building wind farms for the last ten years and has developed a special bond with his turbines. “Although the work is routine,” he says. “I experience something spe- ble that they bend inward considerably in stormy conditions.” Robust Blades. Søren Kringelholt Nielsen and his 800 employees at Siemens Rotor Blade Manufacturing, which is located 230 kilome- ters away in Aalborg, ensure that the huge blades are flexible. All the blades for the Euro- pean market are produced here. The floor of the factory is covered with neat rows of the gi- gantic rotor blades, each of which is bigger than the wing of a jumbo jet. The surface of the blades is so smooth that you can’t see or A wind turbine produces enough energy to boil six liters of water in just one second. cial every time I ascend a windmill and look out over the North Sea.” Just in front of him, the huge 45-meter rotor blades stretch into the sky, their tips roaring through the air at 220 kilometers per hour and producing enough energy to boil six liters of water every second. Depending on the strength of the wind, it’s possible to alter the white blades’ an- gle of attack so that they operate in the most efficient manner. The 82 ton-nacelle can also turn on its own axis in the wind — courtesy of a computer-con- feel a single seam, while the edges at the tips are nearly as sharp as knives. Despite their size, the aerodynamic blades can be bent by several centimeters using nothing more than your hand. “This apparent fragility is deceiving,” says Nielsen, who heads Rotor Blade Manufactur- ing in Aalborg. “The blades are extremely ro- bust. Imagine placing a mid-sized car at the end of a three-kilometer beam. The forces that are being placed on the other end of the beam are the same as those a rotor blade needs to Reprinted (with updates) from Pictures of the Future | Spring 2008 23 | Floating Wind Farms G ale-force winds are whipping waves to dizzying heights as a thin silhouette of an 80-meter-high mast dimly appears through the mist. Driven by the howling wind, the mast’s rotor blades spin furiously in the night air. Al- though it has neither pillars nor stilts for sup- port, the mast stays upright, leaning only slightly. It’s hard to believe, but there it — a prototype wind turbine floating on the water. Since late 2009, the turbine has been pro- ducing 2.3 megawatts while bobbing in the north sea about 12 kilometers southwest of the Norwegian coast. Over the next two years the prototype installation will prove whether it can stand up to the region’s notoriously nasty wind and waves. The floating wind turbine is a cooperative project between Siemens’ Renew- able Energy division — the world market leader ballast tanks — a concept that has been used with floating drilling platforms for many years. The buoy’s 120-meter-long float is designed to ensure that the structure’s center of gravity is far below the water surface, thus preventing the wind turbine from bobbing to and fro in the waves like a bathtub thermometer. The mast’s ballast tanks make it possible to pre- cisely set its center of gravity. And to ensure that the structure doesn’t drift, it is held in place by three steel cables moored to anchors on the seabed. The power generated will be sent ashore via a marine cable. The simple an- chor/steel cable design is the key that makes it possible to install the turbine in very deep wa- ters, unlike a massive pillar design, which would become uneconomical at depths in ex- cess of 100 meters. Future offshore wind turbines will be fixed to a steel tube extending 120 meters under the surface. Along with three steel cables, the tube makes the design robust enough to work on the high seas. Tapping an Ocean of Wind StatoilHydro of Norway and Siemens have developed the world’s first floating wind turbine — opening the door to harvesting the power of the wind on the high seas. for offshore wind farms — and the Norwegian energy company StatoilHydro. As Norway’s po- tential wind energy sites are often in nature conservation areas, the country’s energy sector is looking to the sea. Denmark set up its first offshore wind farms more than 15 years ago, but to date, these have all been located near the coast in depths of less than 30 meters, where anchoring is relatively easy. Expansion, however, is difficult, due to factors such as fish- ing grounds and bird migration zones. But now Siemens and StatoilHydro are tak- ing their Hywind project out to the high seas, where winds are stronger and more consistent than near the coast. According to the National Renewable Energy Laboratory in the U.S., for instance, wind potential at 5 to 50 nautical miles off U.S. coastlines is greater than the in- stalled generating capacity of all U.S. power plants, which is more than 900 gigawatts. Deep. Norway is ideal for prototype testing be- cause the seabed drops steeply offshore. At 12 kilometers from land, where the wind turbine is located, the seabed is about 220 meters be- low the surface. StatoilHydro is responsible for the underwater part of the facility, while Siemens will supply the tower and the com- plete turbine. For its Hywind prototype, Statoil- Hydro is using a “spar buoy” concept that fea- tures a steel and concrete buoy equipped with “We hope to be able to use this concept at depths of up to 700 meters,” says Siemens Re- newable Energy Division CTO Henrik Stiesdal, who is based in Brande, Denmark. At greater depths, the costs for steel and anchors would make such facilities too costly. An offshore farm with up to 200 turbines could supply al- most a million households with electricity. The first step in that direction is to test the prototype. The prototype is outfitted with an electronic control system to ensure that the tur- bine doesn’t tip too far and become unstable. The system makes it possible to alter the angle of the rotor blades and thus the structure’s re- sponse to incoming wind, thereby enabling the facility to balance out any swinging motions. It’s also been suggested that the generator and hub could be tipped, which would shift the fa- cility’s weight and compensate for swaying movements. “We still need to test all of these things,” says Sjur Bratland, project manager for StatoilHydro. “What we’re doing here is devel- oping technology for a future market. With its turbine expertise, Siemens is a reliable partner with a lot of forward-looking ideas.” Bratland believes the Hywind solution will be perfect for regions that have deep coastal waters not suited for ordinary offshore windfarms, few en- ergy resources and little available land, but good wind conditions at sea. Candidates in- clude Japan and the U.S.Tim Schröder How to Become a Windmill Builder In August 2009, Siemens opened one of Eu- rope’s most up-to-date training centers for wind energy in Bremen, Germany. Aptly named the Wind Power Training Center, it has a floor area of about 1,100 square meters, and is situated be- tween the European and Industrial harbors of the north German Hanseatic city, where it serves primarily as a training center for service techni- cians. Prospective assembly workers are not only offered theory courses covering the construction and operation of wind power plants, but are also given the opportunity to carry out practical maintenance work on real objects. A hall measuring about 600 square meters forms the heart of the building, which houses a 2.3MW wind turbine from Siemens, a simulator for the control technology, ladder constructions, a scaf- folding, and crane and tower models. “In this El- dorado for technicians, our employees can demonstrate their knowledge of the technical processes in a wind turbine, as well as the rele- vant safety aspects of wind turbine construction, management, and servicing — all in a practical setting,” says project manager Nils Gneiße. “Thanks to this experience, they will be able to perform maintenance work for customers faster and more efficiently.” Wind power plant opera- tors particularly benefit because the mainte- nance requirements and costs fall, while the reli- ability of the turbines increases. According to Gneiße, the ten-meter turbines, which weigh some 80 tons, are more than just training objects that provide hands-on experience. “With the help of these turbine nacelles, we want to in- crease safety for our technicians,” he says. That’s why the training program offers emergency exer- cises under real-life conditions — up to now a first for this type of training center. “Regardless of whether an employee becomes stuck during maintenance work or simply gets cramps — at a height of a hundred meters even minor incidents are considered emergencies that call for swift action,” says Gneiße. Along with training facilities in Brande, Denmark, Newcastle, UK, and Houston, Texas, the center in Bremen covers global training needs in terms of wind power. Every year some 1,000 techni- cians, most of whom will come from Central and Eastern Europe, the Mediterranean region and the Asia-Pacific region, are to be trained here, as are Siemens customers. Sebastian Webel 22 Reprinted (with updates) from Pictures of the Future | Fall 2009 Renewable Energy | Offshore Wind Swimming Packhorse. By the time a blade begins its life on a mast at Horn Rev II, it will have an amazing journey behind it. First of all, blades are strapped onto articulated trucks for the 280-kilometer journey to Esbjerg harbor, one of Siemens’ transport hubs for wind farms in Europe. Here, the individual blades are at- tached to rotors and loaded — together with kept to a minimum during the 20 years in which the blades must withstand wind and weather. “Repairs on the open sea cost about ten times as much as repairs on land,” says Nielsen. To further increase their resilience, all the blades are equipped with a lightning con- ductor. “Statistically, each blade will be struck at least once by lightning.” wich.” The bottom and top sections are subse- quently joined and a vacuum is created inside. The vacuum sucks liquid epoxy resin through the fiberglass mats and the balsa wood. Here, the resin finds its way through all of the layers and evenly joins the two sides of the blade. Fi- nally, the blades are “baked” in a gigantic oven at a temperature of 70 degrees Celsius for eight hours. “At the end of this process we have a seamless rotor blade with no weak points,” says Nielsen. Weaknesses are unac- ceptable because maintenance costs must be “Repairs on the open sea cost about ten times as much as repairs on land.” the nacelles and the masts — onto the “Sea Power,” an assembly ship that transports the components of three separate wind power plants to their destinations in the North Sea. Gigantic cranes lift the 60-ton rotors onto the deck of the ship, stacking three huge propellers per rotor on top of one another, before placing the tower sections and the nacelle beside them. This swimming packhorse then trans- ports its freight, which weighs over 1,000 tons, 50 kilometers to Horns Rev II. From his nacelle 60 meters above the North Sea, Møller has spotted the Sea Power. “It takes six to eight hours to completely assem- ble a wind power plant,” he says. The assembly ship’s crane lifts the steel tower, the nacelle, and finally the rotor onto a yellow pedestal — a steel foundation that was driven 20 meters into the sandy seabed some time earlier. The components are then bolted together by hand. “Naturally, this is possible only with good weather. As soon as the height of the waves exceeds 1.5 meters the work is called off. And this can happen quite often on the North Sea, which is renowned for being rough,” says Møller. He points at an old ferry that is an- chored not far from the wind farm. “That’s our hotel ship. It’s home for the workers who are responsible for the installation and cabling of the wind mills. They spend two weeks at a time here at sea.” In contrast, stays in the nacelles, which are far from comfortable, are of course much shorter. The limit is three days. In case evacua- tion is impossible in the face of a rapidly-devel- oping storm, each tower is outfitted with emergency storage facilties for fresh water and energy bars. On the other hand, there are visitors who have climbed the tower with Jes- per Møller who have indicated that they would rather stay a little longer because, even when there is no emergency, the cramped nacelle seems preferable to the idea of climbing back down to a swaying boat at the foot of the mast — especially when you’ve forgotten your sea- sickness pills.Florian Martini Reprinted (with updates) from Pictures of the Future | Fall 2007 25 — despite their huge size and strength — must have an optimal aerodynamic shape right down to the smallest angle and, most crucially, they must be very robust. This is because many of them are destined for offshore wind farms, where repair and replacement costs are ex- tremely high. “The cost to the manufacturer of carrying out a repair on the open sea is around ten times as high as that for an onshore instal- lation,” says Burchardt. “On the large turbines an everyday wind speed of 10 meters per sec- ond forces 100 tons of air through the rotor every second. That requires a robust blade!” Extreme quality requirements such as these have caused many manufacturers to pull out of the offshore sector. In the meantime, Siemens has not only become the most experienced, but also the largest supplier of offshore wind turbines. Blade Baking. In the Aalborg facility’s produc- tion hall, which is some 250 meters in length, there are huge blade-shaped molds like cake pans, stretching out along the floor and even hanging upside down from the ceiling. There’s not a hint of chemical smell and most workers don’t have to wear special protective clothing. explains Burchardt, “and once it has been in- jected with epoxy resin it turns into a fiber-rein- forced plastic composite. Unlike products from rival manufacturers, our rotor blades don’t con- tain any polyvinyl chloride, which has been as- sociated with dioxin. This means they’re not a problem to dispose of at the end of their 20 year service life, because they are primarily made of recyclable fiberglass.” How can such a length of fabric give a rotor blade its enormous strength? “The mold is ini- tially lined with many layers of fiberglass. In fact there are seven metric tons of this material in a 45-meter blade, and 12 tons in a 52-meter blade. To enhance stiffness, a layer of wood is placed between the fiberglass layers,” says Burchardt. He indicates the different layers of fiberglass and the wooden mat carefully embedded in the midst of the multilayered structure. “The other side of the blade is made up of the same ingredients and then joined with its mate. But instead of fixing the two sides together with an “With this method it only takes 48 hours from the first step to a completed blade, instead of several days,” says Burchardt with evident pride. “That’s one day to place all the fiberglass, and another to inject and bake. After that the blade is adjusted and painted white — it’s a mixture of high-tech and skilled handicraft.” Once com- pleted, the rotor blades are delivered by truck or ship to customers worldwide, including destina- tions as far away as the U.S. and Japan. Good Vibrations. Before delivery, samples of the rotor blades have to go through a variety of static and dynamic tests. First of all, they are subjected to 1.3 times the maximum operating load. To simulate 20 years of material fatigue, the blades are then mounted on special test beds and made to vibrate around two million times, before the endurance of the material is again tested with a final static test. In Brande, a town of 6,000 inhabitants lo- cated some 150 kilometers south of Aalborg, In a patented process, wind mill blades are baked as a single piece — without any seams. “A few years ago we developed a method of manufacturing the blades as a single, all-in-one piece,” says Burchardt. “Using this integral blade process — or one-shot technique, as we also call it — we’ve been able to do away with adhe- sives. As a result, the workforce is not exposed to toxic vapors. At the same time there are no individual components to clutter up the hall, and we end up with a rotor blade that is pro- duced in a single casting and therefore without any seams whatsoever, which makes it consid- erably stronger than other blades.” At the far end of the hall, Burchardt halts at one of the blade molds, which an employee is lining with what look like lengths of white fab- ric. The material has the appearance of a finely woven carpet but feels like plastic. “Fiberglass,” adhesive, we fill the interior with bags of air and then inject several tons of liquid epoxy resin in- side, which finds a smooth course between the pockets and the fiberglass and thus evenly joins the two sides of the blade. Finally, we bake the whole thing for eight hours at a temperature of 70 degrees Celsius.” As Burchardt speaks, a mold is lowered from the ceiling and seamlessly encloses the two sides of a blade. It is only now that the shape of the huge units on the backs of the molds becomes evident. In their closed state, the molds act as a huge cake pan with an integrated oven, and once the epoxy resin has been injected, they are heated to bake the blade into a solid whole. The bags inside the blade defy the heat and prevent the blade from collapsing during production. 2,700 Siemens employees manufacture the heart of every wind power plant: its turbines’ nacelles (housing). During a trip through the Danish countryside, past its fields and farms and some of the country’s 3,500 wind turbines, I ask why the biggest manufacturers of wind power plants are in Denmark. “There are historical reasons,” says Henrik Stiesdal, Chief Technology Officer at Siemens in Brande. “It all began with the energy crisis of 1973/1974. In a move to reduce its dependence on oil, Denmark looked at the possibility of building nuclear power plants. In response, talented engineers designed the first wind tur- bines. In the mid-1980s, a number of countries introduced tax incentives for wind power, mak- ing it a lucrative business. As the only country Renewable Energy | Wind Turbines Catching the Wind Siemens Wind Power is more than just the global market leader for offshore wind turbines. In Denmark, in a unique, one-shot process, the company produces rotor blades that are up to 52 meters in length. It also manufactures one of the world’s largest serially-produced wind turbines, which has an output of 3.6 megawatts. Finished blades await shipment (below), while new ones are already in the making (right). Here, huge molds are being removed (center) from raw blades (left). 24 Reprinted (with updates) from Pictures of the Future | Fall 2007 L ow black clouds and bone-chilling wind are blowing in over the whitecaps on the North Sea. By most people’s standards this is any- thing but great weather. But for Claus Bur- chardt, head of blades research and develop- ment at Siemens’ Wind Power Business Unit, nothing could be better. “For us, good weather means a stiff wind,” he says. “Without that, we would be struggling to find customers.” Rather than standing at the beach, Bur- chardt is sitting in a small office on the out- skirts of Aalborg, Denmark’s third largest city. Together with 5,500 fellow employees of Siemens Wind Power, Burchardt builds huge wind power plants, each of which can generate enough electricity to boil a bath full of ice-cold water within 30 seconds. In fact, the individual components of such a wind turbine are so large that, for logistical reasons, some are built far from Denmark. One such location is Fort Madi- son, Iowa, where a new rotor blade factory opened in September, 2007. Local infrastruc- ture also plays an important role in choosing locations. Thus, Aalborg, for example, was se- lected because of its proximity to a harbor with quays capable of handling rotor blades, some of which are over 50 meters in length. “The big challenge in Aalborg,” says Bur- chardt, “is to ensure that all of the rotor blades we produce, some of which weigh 16 metric tons, are manufactured to such a high level of precision that they perform exactly as required without any need to upgrade or adjust them for 20 years.” To achieve this, the rotor blades Reprinted (with updates) from Pictures of the Future | Spring 2008 27 E conomic development and population growth in many emerging markets are causing the global de- mand for energy to increase rapidly. In the World Energy Outlook from 2007, the International Energy Agency (IEA) forecast that global consumption of energy will rise by over 50 percent by 2030 if current policies are maintained. China and India alone will be responsible for half the in- crease. Fossil fuels will continue to be the key source of primary energy, and will be responsible for 84 percent of the increase in consumption between 2005 and 2030. Above all, coal will experience a boom. Today, China and India consume 45 percent of all coal used globally; by 2030, this figure is likely to reach over 80 percent. Based on these predicted increases, CO 2 emissions will reach double the 1990 level by 2030 (graphic above and Pictures of the Future,Spring 2007, p. 83). To ensure that greenhouse gas emissions will fall despite these develop- ments, 187 countries agreed on the key points of a new climate protection agreement at the World Climate Confer- ence in Bali in December 2007. The agreement was planned to be ready for signing at the Copenhagen conference in December 2009and become legally binding by 2012, when the Kyoto Protocol expires. At Kyoto, the industrial nations committed themselves to cutting their greenhouse gases by an average of five percent by 2012 compared with 1990. The new agreement should provide for a reduction of 25 to 40 percent by 2020. To achieve this goal, the in- dustrial countries are to provide more climate-friendly and energy-efficient technology to developing countries. Environmental engineering continues to grow. Accord- ing to the German development organization GTZ, $71 bil- lion was invested in renewable energy in 2006. That was 43 percent more than the equivalent figure for 2005. Of that sum, $15 billion was accounted for by developing and emerging markets. In the future, the use of regenerative energy will expand — particularly in countries such as China, India, and Brazil. A 2007 GTZ TERNA country study reports that a good 80 percent of all power generated in China is produced by fossil plants, most of which run on hard coal. Hydroelectricity contributes between 15 and 18 percent, nuclear energy about one percent, and wind energy much less. According to the China’s 11th five-year plan, this situa- tion is expected to change as follows: by 2010, natural gas, water, wind, and nuclear energy should collectively account for 38 percent of the country’s energy production. By 2020, 20 percent — 290 gigawatts (GW) — should be produced by water alone; today, the equivalent figure is 128 GW. At 676 GW, China’s hydropower potential is greater than that of any other country. Wind power, which also enjoys considerable potential, is to be boosted from 1 GW to 30 GW between the end of 2005 and 2020. The photovoltaic market is also growing by the end of 2006, it had reached 65 megawatts, around half of which powers households in outlying regions. By 2020, some 1.8 GW is expected to be installed in the form of photovoltaic generators. Why Renewable Energy is Needed | Facts and Forecasts Frost & Sullivan anticipates that sales in the regenera- tive energy market will increase from $6.9 billion in 2006 to $17.9 billion in 2013. Aside from tax breaks and spon- sorship, Beijing has introduced other economic incentives to promote renewable energy. “By 2013, photovoltaics will probably even outpace wind power to become the fastest- growing energy source in China,” says Frost & Sullivan re- search analyst Linda Yan. Another way of generating power in a climate-friendly manner involves technologies for efficiently separating CO 2 . These include coal gasification, combustion with pure oxygen and CO 2 separation from flue-gas. Although many pilot projects along these lines already exist (pp. 36, 40), there is still some way to go before these technolo- gies can become widely used. According to a forecast made by the IPCC (UN Intergovernmental Panel on Climate Change) in 2005, the energy produced by all of the plants using CO 2 capture and storage (CCS) technologies will still account for less than three percent of the energy gener- ated worldwide by 2020. From 2000 to 2030, the cost of CCS systems is ex- pected to drop by half from between $50 to $100 per ton of CO 2 to between $25 to $50. As a result, the IEA believes that the proportion of CCS plants could rise to 20 percent by 2030 and to 37 percent by 2050. In this case, the CO 2 emissions resulting from worldwide power generation could be reduced by up to 18 gigatons by 2050. And that would represent an important contribution to achieving the Bali targets.Sylvia Trage 0 5,000 10,000 15,000 1990 2005 2015 2030 Global demand for primary energy Actual and forecast figures Carbon dioxide emissions resulting from combustion of energy carriers 1990 2005 2015 2030 Millions of tons (Mtoe) 17,700 8 ,755 20,688 41,900 Millions of tons Renewable energy Nuclear energy Gas Coal Oil Gas Coal Oil 0 10,000 20,000 30,000 40,000 Predicted Energy Demand and CO 2 Emissions Data is based on the International Energy Agency’s “Business as usual” scenario. Clear political and technical measures are necessary to reduce CO 2 emissions. Source: IEA 2007. 1 Mtoe = 1 million tons oil equivalent = 41.868 PJ (petajoule) Source: Frost & Sullivan, 2005 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 Sales in millions of US$ Average growth rate (2005 – 2011) between 10 and 13% per year Demand for Renewable Energy in Europe In 2011, renewable energy sales in Europe alone are likely to reach almost $18 billion. That’s nearly three times the 2001 level. 2001 02 03 04 05 06 07 08 09 10 2011 26 Reprinted (with updates) from Pictures of the Future | Fall 2007 with the know-how to build fully functional wind turbines, Denmark experienced a boom that has continued to this day.” Although it’s good weather outside — in the Danish sense — Stiesdal is evidently con- tent to remain in his cozy office. From a drawer he produces a chronology of wind power technology and places it on his desk. “The first wind turbines we built in the early ‘80s had an output of only 22 kilowatts. Since then output has doubled around once every four years. At 2.3 and 3.6 megawatts, our modern plants produce more than a hundred times as much power. At least for now, the smaller plants still account for around 80 percent of our business.” Stiesdal points to a large map of Europe. “Recently we completed one of the world’s largest offshore-projects — the Lynn and Inner Dowsing facilities for Great Britain. This project consists of two adjacent windfarms about five kilometer off the Lincolnshire coast, east of Skegness. Together, they have an installed ca- pacity of 194 megawatts and are expected to provide enough electrical power to meet the enough energy to supply my home town of Odense and its 185,000 inhabitants, including households, industry, street lighting and every- thing,” he says, before entering a giant hall where turbines are produced. 500-ton Giants. Here, massive metal nacelles, each containing a 2.3-megawatt machine, are lined up. We approach one of the rounded structures, whose top is folded up at either side, offering a view of the interior. “We’re standing at the front of the drive shaft. That’s where the rotor and its three blades will be mounted from the outside. For an offshore turbine this is a job that takes place on the open sea. The towers are assembled on land. A spe- cially designed ship, complete with crane, is used to transport them along with the nacelles and rotor blades to an offshore site. It then takes less than half a day to install a single turbine weighing 500 tons. Once the rotor begins turn- ing, its motion is transmitted via the drive shaft to the gear unit. This, in turn, transfers the torque, which varies depending on wind wind turbines are neatly stacked, awaiting in- stallation. On the left are the huge steel nose caps, which will later adorn the turbine hous- ing, in the middle the machine nacelles, and on the right the gigantic rotor hubs, each of which weighs around 35 tons. The blades from Aal- borg are delivered straight to the site of installa- tion. The various components for the towers, which are up to 120 meters in height, come from external suppliers in Denmark, Germany, the U.S. and Korea, depending on the wind farm’s location. Once in the hall, the white nacelle of the 3.6-megawatt turbine is unmistakable. Unlike its smaller relative, it is angular in shape. Meas- uring some 13 meters in length, four meters in width, and four meters in height, it is also big- ger. The innards of the turbine are reached via a ladder. Various systems are spread over two sto- ries, as if it were a small house. “Everything’s bigger in this turbine,” says Stiesdal with typical understatement. “But we’re already working on even bigger ones. In fact, before long the rotor blades on our turbines may be longer than 60 meters.” Sebastian Webel Renewable Energy | Wind Turbines Before installation at sea (bottom), Henrik Stiesdal (right) makes sure that everything is perfect — including turbine assembly (center), and a final endurance test (left). The first wind turbines produced 22 kilowatts — that’s less than one hundredth of today’s output. annual demands of more than 130,000 homes,” he says. Stiesdal’s eyes shine with enthusiasm. “In October 2009, the number of installed Siemens turbines worldwide exceeded 8,100. Together, they have a capacity of almost 9,600 megawatts. That’s enough to produce 25 bil- lion kilowatt hours – around 70 percent of Denmark’s electricity consumption, which is approximately 36 billion kilowatt hours. Our 165 MW Nysted offshore wind farm, for exam- ple, which is off the southern coast of the fourth-biggest Danish island Lolland, generates strength, to the generator. The result is electrical energy.” Stiesdal, a hobby sailor, points out that a sys- tem of this order of magnitude requires much more than just mechanical parts. “Today a 2.3- megawatt turbine like this contains many levels of processors and electronics. It might look sim- ple and easy to understand, but the closer you look at it, the more complicated it becomes.” This applies all the more so to the top-of-the- range, 3.6-megawatt turbine. On our way to in- spect this giant, we cross the storage area. As if in a child’s toy box, all the components for the Reprinted (with updates) from Pictures of the Future | Spring 2008 29 | Interview Oberheitmann The boom in renewable energy sources is benefiting developing countries, especially in remote areas not connected to power grids. It is also leading to environmental projects in large emerging markets such as India and China. Renewable Energy | Renewable Resources 28 Reprinted (with updates) from Pictures of the Future | Spring 2008 A frica is dark when seen from space — at least at night compared to Europe and North America. There are two reasons for this. Africa is sparsely populated and it lacks electric- ity. Some 500 million people south of the Sa- hara live without electricity — that’s nearly one-third of the 1.6 billion people who still heat with wood and use kerosene lamps for light. Power plants and transmission lines are ex- pensive, especially on the poor, but large, land masses of Africa and Asia. In fact, the Interna- tional Energy Agency estimates that expanding electrification to an extent that would halve the number of people living in poverty world- wide would cost around $16 billion a year for the next ten years. Such a reduction of poverty was one of the “Millennium Development Goals” set by the United Nations at the turn of the century. It’s far from being achieved — and sharply rising prices for fossil raw materials haven’t done anything to help. Still, there is hope, as technological advances have made “eco-electricity” more affordable. A mission in Tanzania, for example, now generates electricity with a hybrid facility consisting of solar cells and an engine that runs on oil made from the local jatropha bush, thereby eliminat- ing the need for a diesel generator. The World Bank invests $3.6 billion per year in energy projects, half of which focus on tapping renew- able sources and improving energy efficiency. Toward the End of 2007 the World Bank launched the “Lighting Africa” initiative. The goal of the initiative is to provide up to 250 mil- lion people in Sub-Saharan Africa with access to electrical lighting. Lack of lighting is one rea- son why millions of children in Africa can’t study at night. With this in mind, Siemens sub- sidiary Osram has become the world’s first lighting systems manufacturer to replace mil- lions of light bulbs in Africa and Asia with en- ergy-saving lamps. In line with the Kyoto Proto- col, the company will receive CO 2 certificates to help finance the project (see p. 107). Ministry of Renewable Energy. Some coun- tries have made progress. In India, for example, many people know about alternative energy sources, even though one out of three Indians lives without electricity. This awareness is due to the fact that the energy shortage caused by the oil crisis of the 1970s led the government to establish a Ministry of New and Renewable Energy; the country now plans to meet 10 per- cent of its electricity needs with power from al- ternative sources by 2012. India is already fifth in the world when it comes to installed wind power output. The goal of the Chinese government is to in- crease the share of ener gy produced from re- newable resources from the current eight per- cent to 15 percent by 2020. China also has a system similar to the one in Germany that requires energy suppliers to pur- chase ecologically-produced electricity at a fixed price. World Bank energy expert Amil Cabraal says that emerging markets are in- spired by Europe’s extensive investment in re- newable energy sources and the EU’s plans to meet 20 percent of its requirements with envi- ronmentally friendly power and heat by 2020. Still, Cabraal warns, the green energy revolution will require a huge amount of technological ex- pertise and planning. It’s a massive challenge, and mistakes are easily made. The Capgemini consulting firm, for example, claims that Beijing’s plans to in- crease China’s capacity by 950 gigawatts (or 1,000 power plants) between 2006 and 2020 will result in a 30 percent shortfall. It’s also clear that the global climate problem cannot be solved by micro power plants or distributed so- lar cell facilities alone. Says Opitz: “It will be some time before the world can stop using big power plants.” Jeanne Rubner Renewable Energy for Developing Countries Economist and China expert Prof. Andreas Oberheitmann, 45, is the director of the Re- search Center for Inter- national Environmental Policy (RCIEP), as well as a guest professor at Tsinghua University in Beijing. Oberheitmann previously worked at the RWI economic research institute in Essen. His activities at RCIEP focus on a program sponsored by the GTZ technical cooperation organization that seeks to develop practical solutions to problems associated with climate protection in developing countries. Interview conducted in Spring, 2008. Why China Needs and Wants to Conserve Energy How big is China’s appetite for energy? Oberheitmann: China’s current primary ener - gy consumption is 2.4 billion tons of hard coal units (HCU), which corresponds to about 16 percent of global consumption. China is thus second only to the U.S. in total energy con- sumption, and depending on how its gross do- mestic product (GDP) develops, it will be con- suming 6.8 to 11.7 billion tons of HCU by 2020. That’s three to five times today’s figure — a huge increase. What will per capita consumption be like? Oberheitmann: Our energy demand model projects that in 2020 each Chinese citizen will consume an amount of energy equal to that used by the average German today, which is around 6.4 tons of HCU. In terms of per capita GDP, China may wind up being wealthier than Germany is by 2020 or 2030, given purchasing power parity. Still, we believe it will take many years for China to achieve the level of energy efficiency now common among countries like Germany. For example, China currently re- quires 3.5 times more energy than the global average to generate one euro’s worth of GDP. However, because the renminbi is significantly undervalued at the moment, the difference is not as great in terms of purchasing power parity. That isn’t good news for the climate... Oberheitmann: That’s right, unfortunately. China is expected to surpass the U.S. within the next two years as the number one pro- ducer of CO 2 emissions. China already emits 6.1 billion tons of CO 2 per year, and that figure will climb by ten billion tons by 2020. If drastic measures aren’t taken, China will play a key role in pushing up CO 2 emissions worldwide. Does China need to undergo the indus- trial revolution process as we know it in the West? Can’t it start using environ- mentally friendly energy sources now? Oberheitmann: Yes and no. History is repeat- ing itself — but at a much faster pace, with some stages being skipped. That’s an argu- ment to get China to sign up to environmental protection. It’s true that the industrialized As indicated by this satellite image, electricity is still scarce in Africa. Small solar power units and environmentally-friendly vegetable oil stoves (below) can help to mitigate the effects of poverty. In China (right) much of the economy is fueled by cheap coal. Reprinted (with updates) from Pictures of the Future | Fall 2007 31 the first developing country to draw up a gov- ernment concept for addressing climate change. This concept focuses on fundamental, techno- logical, and applications research, and also in- cludes measures for getting the public invol - ved in the process. One way we do this is by ex plaining to people what could be achieved if everyone turned up their air conditioning ther- mostat one degree, left their cars home for one day,used environmentally friendly detergents etc. In this way, we sensitize people to the fact that everyone can contribute to environmental protection and help stop climate change. Industry plays a key role in this regard, since outdated machines in factories can cause significant environmental damage that seriously endangers nature and hu- man health. Modern equipment, on the other hand, operates more efficiently and cleanly… Wan: That’s correct. Environmental protection also involves making industrial processes more efficient, improving process planning, and combining technologies to create closed cy- cles. Residual heat from steel production, for example, can be converted to electricity; slag can be processed into construction materials; and cooling water can be purified. This not only eases the strain on the environment and conserves energy; it also creates value. We’re now starting to do such things in China. We know that Siemens is a worldwide leader in environmental protection and the optimization of industrial processes, and that the company continues to lead the way in these areas. Siemens thus has a lot of market potential. What types of partnerships need to be formed to enable the efficient use of such technologies in China? Wan: Environmental protection is an issue that everyone around the globe needs to address, and each of us has to do what he or she can to help. In general, it’s important to make the technologies that are already being used in the industrialized nations affordable to developing countries like China. Technology transfer also furthers development and market expansion. The more these technologies are utilized, the more money and energy we can all save. At the same time, China itself has to become in- novative through its own power. Still, being an innovative country doesn’t necessarily mean doing everything yourself or reinventing things. One aspect that is of great concern to in- ternational companies is the protection of intellectual property. There’s a feeling that reality still doesn’t correspond to of- ficially stated intentions here. What is China doing to correct this? Wan: China has made a major effort to ad- dress this issue over the last few years. We joined the WTO in 2001, and we’ve also signed international agreements and established a le- gal system for dealing with these matters. Nu- merous legal proceedings have been carried out and many court rulings have been made that protect intellectual property in China. We know we still need to do more, and we there- fore continue to work hard on further improv- ing our standards. We also know that protec- tion of intellectual property is one of the fundamental conditions for establishing an in- novation-focused society. After all, people will only be motivated to develop innovations if they’re certain these will be protected. Chinese companies need to understand that the pro- tection of foreign technologies also guarantees the protection of their own new develop- ments. This realization will ultimately have a greater impact than tougher laws. We’ve made a lot of progress over the last five years in this regard, and the situation will improve even further over the next five. The Chinese government has traditionally played a major role in technological de- velopments in the country. Now, how- ever, Chinese industry is also becoming a driving force behind innovation. What role would you like to see each of them play in the future? Wan: The government will support those things it deems important, and it will provide investment accordingly. Take fuel cell vehicles, for example. The technology here is not yet ready for the market, which is why the govern- ment needs to fund its development. However, in those situations where a particular technol- ogy can soon be launched on the market, the government will simply create favorable condi- tions for its introduction and then let the mar- ket do the rest. You yourself spent many years doing re- search at a German university, and also worked as a manager at a German au- tomaker — so you’re familiar with the re- spective strengths and weaknesses of the East and West. How would you compare conditions in the two societies? Wan: Europe’s strength — and the strength of Germany in particular — lies in the ability of its industries to develop many products on their own. Siemens offers a good example of this. The company has developed its own strategy for success; it invests at an early stage in inno- vations and then brings its products to market worldwide. China’s industry, which is relatively young, is still unable to keep up with such processes from either a strategic or a financial perspective. That’s why government support is so important, especially when it comes to bringing companies, universities, and research institutes together. Let’s look at fuel cell vehi- cles again. The government coordinated coop- eration between experts from universities, re- search centers, and the automotive industry here in order to develop key components and drive systems. We th en installed the technol- ogy in different vehicles from manufacturers such as Volkswagen, SAIC (Shanghai Automo- tive Industry Cooperation), and Chery. In doing so, we spread out the technology. I think this type of cooperation is our great strength. When products developed in such a manner are ready for the market, the government will discontinue its involvement. Just how advanced are fuel cell vehicles in China? Wan: We finished building our fourth genera- tion at the beginning of this year. It now takes one of our fuel cell vehicles less than 15 sec- onds to accelerate to 100 kilometers per hour, and the top speed is 150 kilometers per hour. We will be presenting these hydrogen-fuel ve- hicles at the 29th Summer Olympics next year in Beijing. Around 20 fuel cell passenger cars and about ten fuel cell buses will be used at the Olympic site, along with 50 battery-pow- ered electric buses and another 300 battery- powered small cars. All of these vehicles are the result of Chinese research projects that we launched five to seven years ago — and now we’ll be seeing the technology used for the first time in real applications. Interview conducted by Bernhard Bartsch. Renewable Energy | Interview Wan Gang 30 Reprinted (with updates) from Pictures of the Future | Fall 2007 Professor Wan, you’ve been China’s Min- ister of Science and Technology for half a year now. What challenges does China face in these fields? Wan: You have to look at things from two dif- ferent perspectives. China has achieved very great economic successes since opening up to the West, and it’s well on the way to industrial- ization. This progress has led to many positive things — but it’s also created problems in terms of energy security, environmental pro- tection, and climate change. We’re now searching for ways to achieve sustainable de- velopment, which is obviously a challenge not only for China but also for all humanity. What role do technological developments play in overcoming the challenges China faces? Wan: A huge role, because in order to solve the problems, we need to be innovative. This view is also reflected in the long-term develop- ment plan we published in 2006. China is seeking to become an innovation-focused country over the next ten to 15 years. How- ever, it’s not enough to have scientists address- ing the problems we face; China’s people need to understand the importance of sustainable development. Our main task at the Ministry of Science and Technology is therefore to support all activities that promote sustainability. What key technologies are being pushed the most in China today? Wan: We’re focusing on several different ar- eas, the most important of which are new forms of power generation such as clean coal systems and renewable wind and solar energy. We’re also working on environmental protec- tion and information technology systems. Health care-related research is also important, from biotechnologies and pharmaceuticals to new diagnostic techniques and the develop- ment of various types of medical equipment. Fi nally, we’re conducting extensive basic re- search into forward-looking technologies such as nanotechnology. Again: it’s crucial to get the entire population involved in these issues. How do you plan to do that? Wan: At the end of May 2007 China became countries have largely produced the CO 2 that’s accumulated in the atmosphere to date — with the U.S. accounting for around 27 percent and China only 8 percent. However, China will account for a major share of future emissions. China’s energy policy seems inconsistent at times. The Chinese put a new coal-fired power plant into operation every few days, but the government also addresses environmental issues… Oberheitmann: Economic growth requires energy. To get it, China must install between 60 and 100 gigawatts of new power generation capacity each year. That’s nearly the equivalent of Germany’s current total capacity. More than 70 percent of the new facilities in China are coal-fired plants, which of course produce CO 2 emissions. China’s government is aware of all this, which is why its current Five-Year Plan contains ambitious goals such as reducing spe- cific energy consumption per unit of GDP by 20 percent between now and 2010. China both needs and wants to conserve energy. Its economy is now growing at ten percent a year. Obviously its energy consumption can’t grow at the same pace. In response, the country is introducing measures that will also improve energy security. And China has produced re- sults. The four-gigawatt Huaneng Yuhuan power facility, for example, has an efficiency rating of 45 percent — a top value for a steam power plant. China is also building the world’s highest-capacity direct current transmission line, which will be able to supply 5,000 megawatts. In addition, the country plans to limit new residential construction in large cities to buildings that require 65 percent less energy than the level required by today’s stan- dard. Investments are also being made in dis- trict heating systems. Can China also make greater use of distributed energy sources such as solar cells and wind turbines? Oberheitmann: Such an approach is good for remote areas not linked to the power grid. Tibet uses a lot of hydro power, for example, and so- lar-thermal facilities for hot water can be found throughout the country. Although photovoltaic systems are still often very expensive, China is the world’s leading manufacturer of solar cells. In remote areas, photovoltaic systems are used mostly as a substitute for biomass, although they also power small diesel generators. Photo - voltaic power isn’t usually channeled into the public grid. The situation with regard to solar power could change over the long term, of course, if oil prices increase dramatically. Interview conducted by Jeanne Rubner. Prof. Wan Gang, 57, has been China’s Minister of Science and Technology since April 2007. Wan received a Master’s degree in automotive engineer- ing at Tongji University in Shanghai. In 1990 he received a PhD from the Clausthal University of Technology in Germany, after which he joined Audi in Ingolstadt, working ini- tially in the Vehicle Devel- opment department and later serving on the Plan- ning Committee. At the end of 2000 Wan returned to Tongji University to coordinate a nationwide research program for the development of electric vehicles and hydrogen technology. In 2004, he was named president of his alma mater. Interview conducted in Fall, 2007. China’s Road to Sustainable Development Reprinted (with updates) from Pictures of the Future | Fall 2008 33 Flaming Scrap A technology developed by Siemens makes it possible to convert biomass waste into energy with a high degree of efficiency. Renewable Energy | Biomass 32 Reprinted (with updates) from Pictures of the Future | Fall 2008 O ur little toy” is how engineers at the resid- ual waste cogeneration plant in Böblin- gen, Germany, refer to their 20-meter tower, which is crammed into a hall located next to a residual waste and slag bunker. The engineers are used to large numbers — over 150,000 tons of waste is burned here each year in order to produce electricity and heat. “When we say toy, we aren’t being derogatory,” says plant manager Guido Bauernfeind. “On the contrary, the SIPAPER Reject Power facility is perfect for us.” One reason for this is that since September 2008 another type of raw material has also been converted to energy here — garden and forest scrap that has fallen through the facility’s sieves. The facility's tower, which is clad in silvery sheet metal, is itself a small power plant. Its furnace chamber looks like a giant pizza oven whose vaulted interior is lined with fire bricks and is additionally insulated by half a meter of being considered. “Organic waste from beer production would also be a possibility,” says Schwarz, who adds that the required technical adaptations would not be all that difficult to implement. “Basically, what we always need is a fuel with a certain type of particle size distri- bution — but we create that ourselves when we process it. The water content during this process can be up to 40 percent.” The key to efficient combustion involves de- termining the optimal fuel-air mixture — con- trol is fully automatic. “SIPAPER Reject Power offers great potential for exploiting biomass,” Schwarz says. The most interesting markets for the exploitation of biomass waste at the mo- ment are in the European Union — especially in Germany and in the Eastern European EU member states — as well as in Brazil and In- donesia. Biomass Boom. “Biomass harbors huge, largely untapped potential,” says Dr. Martin Kaltschmitt of the Biomass Research Center (DBFZ) in Leipzig. According to the DBFZ, more than 30 biomass power plants that use scrap wood or forest wood went on line in Germany in 2007 alone, and a total of more than 210 such facilities are currently operating in the country. The development of biogas facilities has been even more dramatic. Energy produc- tion in 2007 was 828 petajoules (43% as heat, 38% as electricity, and 19% transport), which corresponds to around six percent of total pri- mary energy use in Germany. “That figure could be almost doubled if all existing techno- logical potential were to be harnessed,” Kaltschmitt explains. In any case, Kaltschmitt says, we can expect the biomass boom to con- tinue throughout Europe and around the world for the coming years at least. It’s possible that bio-energy production could cover one-third of global energy require- ments by 2050. This would require the ex- ploitation of around one-fifth of arable land, according to the Copernicus Institute in Utrecht, Netherlands. However, Thomas Nuss- baumer, a professor of Bio-energy at Lucerne University of Applied Arts and Sciences in Switzerland, believes such a development could exacerbate hunger in the Third World. To support his argument, he cites the negative re- sults associated with first-generation agrofuels made from corn, rapeseed, soy, and sugar cane. But Nussbaumer admits that the poten- tial to expand agricultural production in devel- oping countries is still high. “Ideally,” he says, “The edible portions of plants would be used for food and animal feed production, while the rest would be put to work in energy produc- tion.” Urs Fitze concrete. The outside temperature thus re- mains hand-hot, even when the fire within reaches 950 degrees Celsius. The RBB Böblingen energy cooperative col- lects about 16,000 tons of sieve residues from clipping and forest thinning work each year. These are chopped into chips that are then used as fuel for cogeneration plants and wood- fired heating systems. The pieces that fall through the sieves are too small for this, how- ever, as they would turn into slag after com- bustion and clog the furnace grates in large power plants. They also have a much lower calorific value, which would necessitate a spe- cialized combustion procedure. “Our capacity would also preclude burning this material at our cogeneration plant,” Bauernfeind added. A solution was offered by SIPAPER Reject Power technology, which was originally devel- oped by Siemens’ Industry Sector for the paper industry (see Pictures of the Future, Spring 2007, p. 94). Up until a few years ago, the pa- per industry disposed of its waste in landfills. Today, it either avoids waste or converts it into energy. But the tiny particles of waste pro- duced during paper production couldn’t be ef- fectively burned, as they were simply too inho- mogeneous and damp. The answer came in the form of a wheel that flings the particles at high speeds into the furnace chamber. This setup makes for a much better distribution of the particles and thus more effective combustion. It also eliminates the danger of slag buildup. The first SIPAPER Reject Power facility entered service nearly four years ago at a paper mill in Austria, where it produces heat and electricity for the factory’s own use. “This form of waste recycling cuts the factory’s primary energy use by up to a third,” says Dr. Hermann Schwarz, a technology prod- uct manager at the Siemens Industry Solutions Division in Erlangen. The technology, which is particularly suit- able for burning damp biomass made up of dif- ferent parts, “is ideal for medium-sized biomass facilities generating five to 25 megawatts,” says Manfred Haselgrübler, Reject Power man- ager in Linz, Austria. Larger systems are better served by conven- tional power plants that use either reciprocat- ing grates or a constant air flow. But smaller fa- cilities, such as Siemens’ cogeneration plant in Böblingen, which has a thermal output of five megawatts, can enjoy impressive efficiency. In- deed, the Böblingen facility has an energy yield of 85 percent. An 800-kilowatt generator deliv- ers electricity to the grid; the remaining energy is heat, which is channeled into the plant’s ex- isting district heating network. The Böblingen biomass plant marks the be- ginning of what will be a series of applications. For instance, burning coarse colza meal is also In Brief According to the International Energy Agency IEA, the global consumption of pri- mary energy will rise by 55% between 2005 and 2030 if current policies are maintained. Fossil fuels will continue to be the key source of primary energy. However, because of the combustion involved, by 2030 the quantity of CO 2 emitted due to increased use of fossil fuels would be double that of 1990. For this reason the BRIC states are increasingly resort- ing to energy sources involving low CO 2 emis- sion and renewable sources such as wind, water, sun and biomass. China’s eleventh five-year plan states that by 2010, 38% of the country’s power is to come from water, wind, nuclear energy and natural gas. By 2050, 15 to 20 percent of Europe’s en- ergy needs could be satisfied by solar and wind power from North Africa and the Middle East. That’s the goal of the Desertec Industrial Initiative, whose founder companies include Siemens. The technologies needed to accom- plish this goal are available now, from solar thermal plants that produce power from sun- light in Spain and California to high-voltage direct current (HVDC) transmission lines, which can transmit electricity over long dis- tances with low losses. Solar-thermally pro- duced electricity is expected to be competi- tive in about 15 years, says Prof. Hans Müller-Steinhagen of the German Aero space Center in an interview. (p. 14) Siemens built the world’s largest offshore wind farm 30 kilometers off the coast of Denmark. In terms of technology and lo- gistics it’s a formidable challenge. The indi- vidual components weigh dozens of tons and must function flawlessly under rough North Sea conditions for 20 years. The 91 turbines can pump around 210 Megawatts of electri- cal power into the network – enough to sup- ply over 136,000 households. The one-piece rotor blades are extremely robust and up to 90-percent recyclable. Together with Statoil Hydro, Siemens has additionaly built the world’s first floating wind turbine. The swim- ming windmill is located 12 Kilometers off the southwest coast of Norway at a depth of about 220 meters. (p. 20) The boom in renewable energy sources is benefiting developing countries, especially in remote areas not connected to power grids. It is also leading to environmental projects in large emerging markets such as India and China. In an interview with Pictures of the Fu- ture, China’s Minister of Science and Technol- ogy Wan Gang describes his country’s road to sustainable development. Economist and China expert Prof. Andreas Oberheitmann ex- plains, why China needs and wants to con- s erve energy. (p. 28) Siemens has developed a new technology for biomass energy production. The process makes it possible to convert inhomogenous and damp sieve residues from wood chip pro- duction into electricity and heat with a high degree of efficiency. According to Dr. Martin Kaltschmitt of the Biomass Research Center in Leipzig, Germany, one can expect the Biomass boom to continue throughout Europe and around the world for the coming years. By 2050, bio-energy production could cover one- third of global energy requirements. (p. 32) In 2008 Siemens for the first time docu- mented its complete Environmental Portfolio, which lists all products and solutions that help protect the environment and battle climate change. The list accounts for more than 25 percent of the company’s sales, and in 2009 amounted to €23 billion: much more than any competitor. In the same period of time, Siemens customers reduced their carbon diox- ide emissions by 210 million metric tons, which is roughly more than 40 times the level of CO 2 that Siemens itself produces. Inde- pendent auditing company Pricewaterhouse Coopers regularly confirmes the validity of the Siemens Environmental Portfolio and the sav- ings it has generated, as well as the method Siemens used to calculate the savings. (p. 8) LINKS: Desertec Foundation: www.desertec.org Research Center for International Environmental Policy China, RCIEP: www.rciep.tsinghua.in International Energy Agency IEA: www.iea.org A process developed by Siemens makes it possible to convert inhomogeneous and damp sieve residues from wood chip production into electricity and heat. Reprinted (with updates) from Pictures of the Future | Spring 2009 35 Investments in clean technologies — from efficient and renewable power generation and transmission to green buildings and CO 2 capture and sequestra- tion — can help overcome the economic crisis. emissions trading system will help cut the U.S.’s greenhouse gas emissions by 80 percent by 2050. In terms of private investment, in the first three quarters of 2008 alone, American ven- ture capital firms invested $4.3 billion in clean technology companies. And with investments in the fields of renewable energy and energy efficiency expected to reach $150 billion over the next ten years, at least five million green collar jobs are expected to be created in these and other areas. All of this makes a great deal of economic sense because these measures will reduce de- pendence on energy imports and cut associ- ated costs by several billion dollars per year — steps that will pay ever-increasing dividends as the world economy regains momentum and oil prices resume their ascent.Christian Buck | Interview Edenhofer Prof. Ottmar Edenhofer, 48, studied economics and philosophy and is deputy director and chief econo- mist of the Potsdam Insti- tute for Climate Impact Research. He is also profes- sor for the Economics of Climate Change at Berlin Technical University. Since September 2008, he has been one of the chairmen of the Intergovernmental Panel on Climate Change (IPCC). For the next seven years, he will lead Working Group III of the IPCC, which deals with measures to stem climate change. Professor Edenhofer is par- ticularly interested in the influence of technological change on the costs and strategies of climate protec- tion, and on the political in- struments that are used to shape climate-protection and energy policy. Interview conducted in Spring, 2009. Why Climate Protection Isn’t Optional We’re currently struggling with two crises at once — — the economic crisis and the climate crisis. Is that just a coincidence, or do you see parallels? Edenhofer: There definitely is a parallel. Both are crises of sustainability. Sustainability can be formulated as an imperative: Act in such a way that you don’t destroy the foundations that enable you to act in the long run! In the financial crisis, the banking sector destroyed the foundation of its own business. Were people too greedy? Edenhofer: Maybe, but a more important fac- tor was that the banking sector worldwide was improperly regulated, so that it wasn’t possible to stop the greed. The emphasis on share- holder value made investors focus on short- term results. For the U.S., in particular, there was the added problem that the Federal Re- serve Bank — through its cheap-money policy — essentially transferred the dot-com bubble to the mortgage bubble. All of that destroyed the foundations of the economy. And in the climate crisis, we’re in the midst of destroying the foundations of our existence. Is human short-sightedness the source of both crises? Edenhofer: I think it would be more correct to call it institutional short-sightedness. The sys- tem doesn’t permit any longer-term horizons — that’s the crucial point. Every manager has to satisfy the demands of the capital market and his or her shareholders. I think it’s naive to believe the problem can be cured just by ap- pealing to people’s sense of ethics. Policy-makers want a new regulatory framework for the global financial mar- ket. What regulations would they have to establish to ensure better treatment of the climate? Edenhofer: More than anything else, we need a global emissions cap and trade system with two basic prerequisites. First, an agreement among nations that emissions of greenhouse gases must be cut by 50 percent below 1990 levels by 2050. That way, there’s an 80 percent probability that global warming will be limited to two degrees Celsius. Emissions trading lim- its CO 2 where prevention is most cost-effec- 34 Reprinted (with updates) from Pictures of the Future | Spring 2009 Pictures of the Future | Economic Crisis and Opportunities T hese are difficult times for the climate. The economic crisis is dominating the political agenda and crowding out discussion of green- house gases and energy efficiency. In Ger- many, newspapers are running headlines like “Climate Protection on Hold” and “Climate Pro- tection at Risk.” Some politicians share this view and would like to suspend those climate- protection programs that are already agreed on, at least until the economy rebounds. Is climate protection a luxury for better times? “No,” says Prof. Ottmar Edenhofer, chief economist of the Potsdam Institute for Climate Impact Research (PIK) in an interview with Pic- tures of the Future . “Anyone who claims it is doesn’t understand the fundamentals of eco- nomics,” he says. The global recession de- mands government intervention, and this can be directed in part toward climate protection. Engines of Tomorrow’s Growth As times get tougher, temptation is mounting to cut costs and relax standards in the fight against global warming. Yet investments in greater sustainability benefit not only environmental protection but also the health of economies. “In the short term, climate protection programs stimulate the economy. In the long term, they promote the spread of new technologies,” he says. That view is shared by Nobuo Tanaka, who heads the International Energy Agency (IEA) in Paris, France. “If governments are spending money on economic stimulus packages, why not promote renewable energies?” he asked at the World Economic Forum in Davos, Switzer- land. Such investments support the economy in the short term and are also sustainable, Tanaka pointed out. At the moment, however, the falling prices of raw materials and emissions rights are re- ducing the pressure on nations and companies to find sustainable alternatives for their supply of energy. “Low prices are encouraging waste,” says environmental expert Prof. Ernst Ulrich von Weizsäcker in an interview with Pictures of the Future . He believes that some countries are now approaching the matter with reduced ur- gency. “However,” he adds, “the Chinese are on their toes, and they’ve made energy efficiency a national objective.” In the U.S., too, the new Administration is rethinking environmental issues. President Barack Obama wants to become a global leader in the reduction of greenhouse gases. His “New Energy for America” plan intends to put a mil- lion hybrid cars on American roads by 2015 and ensure that the United States gets one fourth of its electricity from renewable sources by 2025. A good ten percent of the U.S. gov- ernment’s stimulus package — in other words, around $83 billion — will be invested in the ex- pansion and modernization of the country’s energy infrastructure. In addition, a national Reprinted (with updates) from Pictures of the Future | Spring 2009 37 Siemens believes that investing in climate protection could promote growth. Others disagree. Is this something we can afford only when the economy is strong? Weizsäcker: That’s the impression being given now by some. This thinking has its roots in the regulation of pollutant emissions, where only the rich countries could afford environmental protection. But in the case of climate protec- tion, the problems are mostly caused by the rich. They use more energy, eat more meat and fly more. The economic crisis offers a great op- portunity to reverse this course and create jobs at the same time. In Europe and Japan, that’s already understood. Now it seems that this idea is being accepted in the U.S. as well. Prof. Ernst Ulrich von Weizsäcker, 70, is a physicist and biologist. He has served as a professor at German universities, as director of the UN Center for Science and Technol- ogy in New York, as president of the Wuppertal Institute for Climate, Environment and Energy, and as a member of the German Bundestag for the SPD. Most recently, Profes- sor von Weizsäcker was dean of the Donald Bren School for Environmental Science and Management at the University of California in Santa Barbara. He is considered a leading force behind the concept of sustainable development. Interview conducted in Spring, 2009. Why Increased Efficiency Will Lead to a More Advanced Civilization times more energy efficient with simple meas- ures. But as long as energy is cheap, that does- n’t happen. We could make energy more ex- pensive in small steps through taxes or emissions certificates, in parallel with increas- ing energy efficiency. That’s fair in social terms and makes efficiency more profitable. Investors could make long-term plans. Habits will change, possibly even our relationship to the automobile. There might be more car-sharing instead of ownership, for example. Raw materials’ prices are falling because of the crisis. Couldn’t that cause countries such as China to become less concerned with energy efficiency? Do you expect the U.S. to take a leading role in climate protection? Weizsäcker: Obama can’t change the U.S. overnight. But the country is more receptive to climate protection than commonly thought. Some states have been involved for years, and many companies are far ahead of the politi- cians, too. Now the federal government is fol- lowing suit. Obama’s rescue plan for the auto industry puts a lot of emphasis on the environ- ment. That’s a big step in the right direction. Why does Europe have an edge here? Weizsäcker: In Europe, people earn a good liv- ing from environmental protection and energy efficiency. That’s where the future lies, in my view; that’s becoming the rhythm of technolog- ical progress. Energy and water are scarce. We should learn to use both three times, five times, ten times more efficiently, and especially the end user. Then it’s fine if energy and water get more expensive. Japan showed how to do this in the ‘80s, when electricity and gasoline were very expensive. After its modernization programs, the country was twice as efficient as Australia or the U.S. at the time of the Kyoto Conference in 1997, providing twice as much prosperity per kilowatt-hour. Is higher energy efficiency the key in the fight against climate change? Weizsäcker: Yes. Today, we can conjure up ten times more light from a kilowatt-hour than just a few years ago. Buildings can be kept warm with a tenth of the heating energy used back then. The whole country could become five Weizsäcker: Yes, low prices are encouraging waste again. But the Chinese are on their toes, and they’ve made energy efficiency a national objective in the Eleventh Five-Year Plan. How do you rate the economic stimulus programs as they relate to climate protec- tion? Weizsäcker: The German government and the U.S. are acting pretty sensibly. The focus is on rescuing the credit institutions. At the same time, Obama is pushing the auto industry to- ward more efficiency, and he wants to spend billions on renewable energies. Environmental considerations can help overcome the disorien- tation of the economy. Are you optimistic about the future? Weizsäcker: We’ll manage, assuming that key countries, such as the U.S. and China, have the courage to adopt a climate-friendly course. I believe that we’re moving toward a new, long- term Kondratiev wave — with a paradigm shift toward more energy efficiency and the associ- ated innovations and investments. I like to compare our current infrastructure and prod- ucts with the dinosaurs. Our cars, houses and appliances are wasteful and outdated. The coming society will be more efficient and more elegant than today’s. In that society, for exam- ple, people will use computers that don’t waste energy and are as efficient as the hu- man brain. That won’t entail a drop in the quality of life. On the contrary, I see us enter- ing a new epoch of advanced civilization. Interview by Christian Buck. | Interview Weizsäcker 36 Reprinted (with updates) from Pictures of the Future | Spring 2009 Pictures of the Future | Economic Crisis and Opportunities tive. Second, we also need a concept of fair- ness. We have to distribute emissions rights among countries in an evenhanded way. In my view, a fair proposal has been made in this re- gard. By 2050, the rights should be redistrib- uted in such a way that every person on earth has the same right to emissions — for exam- ple, two tons per person per year. Will developing countries accept that? After all, up to this point, pollution has been caused mostly by the rich countries — at the rate of 19 tons per person per year in the U.S. and eight tons in the EU. China is at two to three tons already, and India is at 1.5 tons per person. Edenhofer: There will continue to be consid- erable conflict and disagreement about the allocation, because the developing countries also want to take historical emissions into ac- count. What is more important, though, is that we agree that we have only a limited amount of capacity in the atmosphere for more CO 2 , and it has to be allocated reasonably fairly. After that, we have to achieve a carbon-free global economy. If we develop the innovations needed for that, we can also resolve the alloca- tion conflict much more easily. Does that mean that we will have to start living more modestly? Edenhofer: Only if economic growth cannot be decoupled from emissions. For decoupling to occur, however, pricing mechanisms will have to set the right incentives — which is what emissions trading is designed to do. No new moderation, in other words? Edenhofer: No one should be prevented from exercising more moderation. But I think that the global economy can continue to grow at a rate of two to three percent per year, because there is no reason why economies should be dependent on increased energy use to grow. In the last 150 years, labor productivity has risen faster than energy productivity. Now we have to reverse that relationship. What sort of technological progress do we need to achieve a CO 2 -free economy? Edenhofer: More energy efficiency, the cap- ture and storage of CO 2 , the promotion of re- newable energies, a moderate expansion of nuclear energy, and the development of more advanced nuclear power plants. That sounds like a huge economic stimu- lus plan. Do you think we can extricate ourselves from the economic crisis through climate protection investments? Edenhofer: We could indeed, yes. What is im- portant is that we now boost the economy with investments that also make sense for the long term. That’s why we need an emissions trading system that sends a clear price signal for CO 2 — a signal for every sector that pro- duces greenhouse gases; not just the electric- ity sector and energy-intensive industries, but above all buildings and cars. There are many options here that don’t cost anything and actu- ally generate revenue through energy savings. Is emissions trading working in the areas where it is already established? Edenhofer: We’re not in bad shape in that re- gard. Emissions will surely fall in the electrical power sector. But there is a sustainability prob- lem here too. Investors need a signal that emissions have to continue to fall after 2020. That, in my view, is the responsibility of the cli- mate conference in Copenhagen (Denmark) in December 2009. The climate protection discussion involves concepts similar to those in the financial sector, such as certificates, for example. Are these systems similar in structure? Edenhofer: Yes. At some point, we will also need a central bank for climate protection. Such an institution would regulate the market for CO 2 certificates and prevent speculative bubbles. That’s similar to what a central bank does in the financial sector. In terms of global emissions trading, the U.S., together with Europe, could take the lead in creating a trans- Atlantic carbon market of the kind proposed by the EU in January 2009. The prospects for this are good. This would be a signal to India, China, and others. We need to involve these large emerging economies because they can limit CO 2 emissions much more cost-effec- tively than the West can, where most power plants already meet a high standard of effi- ciency. How can the BRIC nations be persuaded to take part in this? After all, they still have a lot of catching up to do economi- cally. Edenhofer: China and India are well aware that, in the future, they will not only be the largest sources of emissions, but will also be the ones who suffer most from climate change. Many of their largest cities are located on the coasts, where a rise in sea levels could be very dangerous. In addition, these countries need new technologies to cope with their heavy dependence on coal. In this connection, we’re right in the midst of a global renaissance of coal. In light of that, it should be possible to put together a good package — with power plants that capture CO 2 , which is then stored, for example. As a member of the IPCC, you have first hand experience with global climate protection politics. Is it realistic to think that the community of nations will agree on an effective plan? Edenhofer: We cannot afford a catastrophe. If it becomes possible to see and feel climate change, it will be too late. In the next ten years, we must create an agreement that com- prises at least the six countries that produce the most greenhouse gas emissions. Maybe the chances of developing a sensible response aren’t very high. But when we are confronted by historic challenges, we should ask not about probabilities, but about necessities. In short, climate protection isn’t optional... Edenhofer: Exactly. Anyone who claims it is doesn’t understand the fundamentals of eco- nomics. That would be like saying we want to have a market economy, but prices will be al- lowed to express the scarcity of goods only when it’s convenient. That kind of thinking led to the collapse of the Soviet economy, where there was always a reason to continue with subsidies. Because of the long-term distortion of prices, the system was doomed to fail. The ability of our atmosphere to store CO 2 is also a limited asset. Environmental protection is therefore not optional; it’s about implementing price systems that express a very real scarcity. Interview by Christian Buck. China’s Yuhuan power plant has achieved record efficiency using Siemens turbines. 44 China’s River of Power Starting in 2010, hydroelectric plants are to supply energy to megacities in southeast China — with power generated 1,400 km away. An HVDC transmission line from Siemens will transport this environmentally-friendly electrici- ty in the most powerful system of its kind anywhere. 48 Trapping the Wind In the future, fluctuations in wind power will have to be balanced by storage systems in order to pre- vent power grids from being over- loaded. One option could be gi- gantic underground hydrogen storage centers. 54 Transparent Network Smart meters enable consumers to monitor and manage their power use. Thanks to these digital systems, utilities can, for the first time, gain detailed, real-time in- sight into network dynamics, thus opening the door to significant savings. 60 From Wind to Wheels Electric cars could play a stabi- lizing role in tomorrow’s power grids, as mobile electricity stor- age units. Siemens is investigat- ing how vehicles, the grid, and renewable energy sources inter- act. Highlights 2020 Pensioner Yun Jang listens to his nephew explain how China is stilling its hunger for energy. An IGCC power plant uses coal to produce climate-friendly energy. The CO 2 it generates is stored underground. Wind turbines feed electricity into an intelligent network, and automated building manage- ment systems are linked with weather fore- casts. People drive to work in plug-in hybrid cars that are fueled by solar energy. 38 Reprinted (with updates) from Pictures of the Future | Spring 2008 39 W an, my old friend, do you remember what our life was like just a few years ago? Do you recall the days when our little vil- lage was still one of the few places in China that wasn’t connected to the electrical net- work? I’m sure you’ll agree with me that those were literally dark days, even though there was sometimes a greater sense of community. After the sun went down it was usually impossible to play Mahjong, as the petroleum lamp in your hut was too dim. I’ve come to believe that you actually didn’t mind a bit — you’re simply a bad loser. That’s probably also the reason why you bought yourself a television as soon as we had electricity. Ever since then, our Mahjong games China, 2020. Pensioner Jun Yang has been invited by his nephew to visit the new Ministry of Energy. The small village where Jun Yang lives has been connected to the electrical grid for only a few years, so he’d like to know where the energy that has changed his life comes from. He reports on his experiences in a letter to his friend Wan. New World Tomorrow’s Power Grids | S c e n a r i o 2 0 2 0 Reprinted (with updates) from Pictures of the Future | Fall 2009 4140 Reprinted (with updates) from Pictures of the Future | Spring 2008 have been a thing of the past. You sit all evening in front of that thing, looking at a world that you don’t understand. For my part, I at least want to understand the thing that has changed our little world so much. I’m sure you remember my nephew Li, who is doing well professionally at the Ministry of Energy. He’s a very modern person, and he’s the one who gave my wife all of those electrical household appliances. Ever since then she’s had a lot more free time, and that has also made my life much more complicated. But I’m digressing — pardon me. At any rate, Li invited me to visit him in the Ministry’s brand-new ad- ministration building. Of course I accepted. He thought this would broaden my horizons. By now, dear Wan, my horizons are so broad that I can no longer see their limits. It all began this morning at the train station. Li had said he would send a car to pick me up. The car came very soon, but I couldn’t hear the sound of an engine as it came around the cor- ner. The driver seemed to be amused when I asked him if there was something wrong with the engine. He explained that the car was pow- ered entirely by electricity stored in lithium-ion batteries. However, he added that it had a small combustion engine that would be used in case of an emergency – such as a charging sta- tion failure, for instance. The vehicle’s batteries could be recharged by simply plugging the car into a wall socket. When we reached the Min- istry, the driver parked the car in a parking lot under a roof equipped with a solar collector and the vehicle was automatically connected to a docking station and to the grid. The batter- ies, he explained, are also used as buffers. They store excess energy from huge wind farms and later return it to the grid when needed. The administration building loomed into the sky, and I felt a little bit lost in the gigantic entrance hall. A friendly receptionist accompa- nied me to a glass elevator. She told me my nephew was waiting for me on the 40th floor and pressed a button. At just that moment I was catapulted upward, and I felt as though my stomach had stayed on the ground floor with the nice lady in the foyer. The earth became smaller so fast that I had to close my eyes. When I opened them again I saw Li’s beaming face in front of me. “Welcome to our energy management headquarters, Uncle Jun,” he said and led me — I was still a bit shaky — into a big room with a gigantic window. “From here we always have a good overview of the country’s entire energy supply,” he said. “As you know, about ten years ago China passed the U.S. as the world’s biggest genera- tor of CO 2 emissions, and that’s why we had to boost our efforts to preserve the environment. Today we already produce a large percentage of our energy in ways that protect the climate,” said Li proudly as he pointed to the many wind turbines on the horizon. “By the way, all of the wind turbines are linked via Internet with con- tinuously updated local weather forecasts, so that we can effectively predict how much elec- tricity they will produce.” Next, he pointed to a message that ap- peared on the window as though written by a spirit’s hand. “A bad storm has just been fore- cast for our region. Our warning system recom- mends that we adapt the wind farm’s perform- ance so that power networks won’t be overloaded.” A short time later, it suddenly be- came comfortably warm and bright — just as it does after I’ve had a good cup of plum wine at your house, Wan. But Li assured me that in this case it was due to the building management system. This system is also linked with the weather forecast, and it automatically adjusts the room temperature and lighting according- ly. By the way, there are no lamps in the entire building. Instead, there are highly efficient light-emitting diodes. All that saves a lot of en- ergy and reduces carbon dioxide emissions, says Li. I was surprised to hear that our old coal-burning stoves in the village emit more CO 2 than the gigantic coal-fired power plant not far from this building. My nephew explained that this brand-new power plant was what they call an IGCC facility, which doesn’t burn the coal directly, but in- stead transforms it into a gas containing hydro- gen that then fuels a turbine. The CO 2 is sepa- rated out in the process. You won’t believe what happens next. The gas is collected, re- moved through pipelines, and finally pumped deep into the earth. There, in an underground depot that used to be a natural gas reservoir, it can remain for thousands of years without es- caping to the surface, according to Li. Li obviously noticed my skeptical look, be- cause he laid his hand on my arm reassuringly and said, “That’s really true, but now we’re also building power plants that don’t need any coal at all — for example, facilities that generate electricity only from the ocean waves and float- ing wind turbines that are used on the open sea.” Basically, it’s crazy, isn’t it? What a lot of effort just to operate your TV and my wife’s washing machine! Incidentally, my nephew gave me a very un- usual present when we parted: Mahjong as a computer game. This way, I can even play it alone, he said. Unfortunately, I don’t have a computer, but he said that the game will also work with a TV. Wan, my old friend, are you do- ing anything next Sunday evening? Florian Martini Tomorrow’s Power Grids | Scenario 2020 | Trends through Europe’s grids, despite the fact that many of the continent’s power lines are now over 40 years old. Gridlock is inevitable, how- ever, as traffic continues to increase. Accord- ing to the International Energy Agency, the European Union generated roughly 3,600 tera - watt hours (TWh) of electricity in 2006. This is expected to reach 4,300 TWh by 2030. In addition, the energy mix is getting more environmentally friendly. In 20 years, some 30 percent of the world’s electricity is expected to come from renewable sources. Today the fig- ure is only 18 percent. But as the percentage of electricity generated by renewables grows, so does the instability of the network. Because eco-friendly electricity is primarily generated by wind farms, much more energy than can be used is pumped into high voltage network in stormy weather, while supply cannot be guar- anteed on calm days. In addition to being able to accommodate a fluctuating supply of wind-generated elec- tricity, tomorrow’s grids will have to incorpo- rate a growing number of small, regional power producers. “The generation of electric- ity will become increasingly decentralized, in- corporating small solar installations on rooftops, biomass plants, mini cogeneration plants and much more,” says Dr. Michael Wein- hold, CTO of the Siemens Energy Sector. “As a result, the previous flow of power from the transmission to the distribution grid will be re- versed in part or for periods of time in many regions.” According to Weinhold, our grid in- frastructure is not yet prepared for that. Grid operators and governments agree on how the challenge should be met. In addition to a massive expansion of electricity highways, the grids must undergo a fundamental change. “Right now they are not very intelli- gent,” says Weinhold. “The level of automation for the system as a whole is very low.” The low-voltage distribution grid, in particular, is often a total mystery to utilities. Because it in- cludes hardly any components capable of communication in its present configuration, a lot of important information remains con- cealed, such as the actual amount of energy being used by consumers and the condition and efficiency of the line system. According to an Accenture study, up to ten percent of energy disappears from the grid ei- ther due to inefficiency or electricity theft without being noticed by power providers. In M otorists who venture into the maze of a major city are part of a larger whole. Tens of thousands of vehicles stream along highways from all directions and find their way through a dense network of roads. But keep- ing that network flowing is no easy task. Al- ready hopelessly clogged under the best of cir- cumstances, such networks can easily face gridlock. All it takes is a few fender benders — to say nothing of circumstances such as a sub- way strike or a snow storm. As a result, sooner or later, every city government must decide whether to expand its transportation infra- structure or face collapse. The situation with our power grid is similar. Electricity flows on copper “highways” from power plants to centers of demand. Along the way, it passes through various “road networks” that are separated by substations. These facili- ties function as traffic lights or railroad switches while also adjusting the electricity be- fore forwarding it to the next grid. In the high- est voltage alternating current lines, electricity flows at 220 to 380 kilovolts (kV) across hun- dreds of kilometers from power plants to sub- stations, where the voltage is reduced to 110 kV before the electricity is then fed into the what is called the distribution or high-voltage grid. This grid is used for the general distribu- tion of power to population centers or large in- dustrial sites, where, depending on the region, the voltage is stepped down again to between six and 30 kV for the medium-voltage grid. This is followed by local distribution. Here, substations reduce the voltage to 230 and 400 volts and send the power into the low-voltage grid, which feeds consumers’ outlets. Needed: Electricity Highways. Until now, electrons have flown relatively smoothly More and more electricity will be generated in the future. However, old grids can scarcely handle the electricity generated today. Electric “gridlock” is a real threat. Switching on the Vision Our power grids are facing new challenges. They will not only have to integrate large quantities of fluctuating wind and solar power, but also incorporate an increasing number of small, decentralized power producers. Today’s infrastructure is not up to this task. The solution is to develop an intelligent grid that keeps electricity production and distribution in balance. Super Grids. The steadily increasing dis- tances between power generation sites and consumers must also be bridged. One element of a solution to this problem could be high- voltage direct current (HVDC) transmission, which is capable of transporting large amounts of electricity across thousands of kilometers with low losses. Siemens is currently building the world’s highest capacity HVDC transmission system in China. The system is scheduled to begin transmitting electricity generated at hy- droelectric plants with a record voltage of 800 Reprinted (with updates) from Pictures of the Future | Fall 2009 43 Most of tomorrow’s electricity will be generated from renewables such as wind. With HVDC tech- nology, the power can be transmitted over long distances (here an 800 kV transformer). kV across a distance of 1,400 kilometers by 2010. Weinhold believes that these electricity highways will not only cross borders in the fu- ture, but will link entire continents. “We will see the establishment of super grids in regions that can be interconnected across climate and time zones,” he says, adding that this would al- low seasonal changes, times of day and geo- graphical features to be used to their optimal benefit. Super grids could be used to transport enormous quantities of solar energy from Northern Africa to Europe, as described in the Desertec project. “Electricity will draw the world together,” predicts Weinhold. In addition to new electricity highways, to- morrow’s grid will need more buffers to stop it from bursting at the seams. Intermediate stor- age is needed for the excess power fed into the grid by fluctuating energy sources. Tradi- tionally, this has relied on pumped storage power plants, but there is hardly any capacity for further expansion in Central Europe. As a result, wind farms will either have to be shut down to prevent them from overloading the grid during periods of overproduction or pro- ducers will have to pay someone to take the electricity. Cars as Buffers. One future solution could be electric cars, which temporarily store excess energy and later return it to the grid when needed — at a higher price. For example, 200,000 electric cars connected to the grid could make eight gigawatts of power available quickly. That would be more than is currently required in Germany. As part of the EDISON project, in which Siemens is also participating, testing will begin on the electric cars concept and other solutions in Denmark in 2011. It is abundantly clear to Weinhold that we are moving full speed ahead into a new era. “Just yesterday the big issue was oil, but cli- mate change is moving things in a different di- rection,” he says. Weinhold believes that we are currently on the threshold of a new electric age. Electricity is increasingly becoming an all- encompassing energy carrier. This is good for the climate, because electricity can be gener- ated ecologically and transmitted very effi- ciently.Florian Martini ERP Billing Call center CRM etc. Asset management Energy management systems (EMS) System integrity protection Solar power Distribution management systems (DMS) Meter data management (MDM) Industrial consumers Condition monitoring Substation automation and protection HVDC and FACTS technology Wind power Distributed energy resources Electric cars (batteries) Distribution automation and protection Smart meters and demand response Intelligent buildings Electric cars (batteries) Distribution grid Transmission grid Smart generation Smart consumption Smart grid The Smart Grid will Optimize Interconnections between Producers and Consumers 42 Reprinted (with updates) from Pictures of the Future | Fall 2009 Tomorrow’s Power Grids | Trends inconsistently, could be connected to form a virtual network. “This would allow them to bundle their power and sell it in a marketplace that is inaccessible to small suppliers,” says Günther. The grid would benefit too. “Consoli- dated into a virtual power plant and acting as a flexible unit, small plants could make balanc- ing power available and thus help to stabilize the grid,” says Günther. Balancing power is provided in addition to the base load to cover peaks in demand. As this type of power re- quires power plants that can begin producing energy quickly, the price for a kWh of balanc- ing power is much higher than for a kWh of base load power. Base load power is generally provided by the workhorses of power genera- tion —coal-fired or nuclear power plants that run around the clock. Stability will be crucial to tomorrow’s grid. But intelligent systems alone will not be enough to manage the large amounts of en- ergy provided by the growing numbers of wind farms or solar-thermal power plants. “There is also work to be done on the hardware side,” says Weinhold. “We need to greatly expand the number of power lines, as physics limits the transmission of electrical energy to wires or cables.” According to the German Energy Agency (DENA) study, some 400 kilometers of high- voltage grid needs to be reinforced and an ad- ditional 850 kilometers of lines need to be erected by 2015 simply to transmit the wind energy that will be generated in Germany. locally-produced energy marketplaces) proj- ect, which is subsidized by the German federal government, Risitschka is responsible for de- veloping the information and communication interface between smart meters, the system for meter data management, and the elec- tronic marketplace. “Among the things we are investigating is how these digital links need to be configured, i.e. what data should be trans- mitted and how can we obtain useful informa- tion from it,” she explains. The interfaces will connect both private and commercial electric- large cities in some developing nations, as much as 50 percent of electricity disappears this way, and power providers are often un- aware of outages — at least until the first com- plaint is received. With a view to heading off impending prob- lems, in 2005 the European Union came up with a concept, which it called the “smart grid” — a vision of an intelligent, flexibly control- lable electrical generation and distribution in- frastructure. “The energy system plus informa- tion and communications technology all enter into a symbiosis in the smart grid,” says Wein- hold. “Not only does this make the grid trans- parent and thus observable, it also makes it easier to monitor and control.” Governments and companies are commit- ting large amounts of money to ensure that this vision becomes reality. The U.S. Depart- ment of Energy, for instance, has provided roughly $4 billion in subsidies for smart grid projects in the U.S. German energy utilities are planning to invest roughly €25 billion in smart grid technology by 2020. Key components for the power grid of the future are already avail- able and have even been installed on a limited basis in some countries. One example is smart meters — intelligent, electronic electric me- ters. “Smart metering is a key technology for the smart grid,” says Eckardt Günther, who heads the Smart Grid Competence Center at Siemens Energy in Nuremberg, Germany. “With smart metering, energy providers and consumers can for the first time record in detail where and how much electricity is being used and fed into the grid.” The advantage is obvious: If electricity consumption is precisely recorded, “In the future, electricity highways will not just cross borders but will link entire continents.” flexible rates can be used to match consump- tion to supply. This lowers electric bills and CO 2 emissions. In contrast, at present if more electricity is being consumed than was fore- cast, the production of electricity must be in- creased. Shedding some light on the distribu- tion grid isn’t the only advantage associated with smart meters. “Smart meters heighten energy use awareness and help to better con- trol it,” adds Günther. “In addition, they are a prerequisite for actively participating in elec- tricity markets.” Sebnem Rusitschka of Siemens Corporate Technology is also convinced that tomorrow’s grid will have to be smart. As part of the E-DeMa (development and demonstration of ity customers within model regions to an elec- tronic marketplace and link them to energy traders, distribution grid operators, and other participants. The project is scheduled for com- pletion in 2012. Rusitschka believes that proj- ects like E-DeMa will boost the smart grid’s prospects. “The technology is available and it works,” she says. “The first larger-scale smart grid solutions could become reality by 2015.” Virtual Networks. Another component of the smart grid is the “virtual power plant”. Here, the idea is that small energy producers such as cogeneration plants, wind, solar, hy- dro or biomass plants, which have previously fed their power into the grid individually and Reprinted (with updates) from Pictures of the Future | Fall 2009 45 China’s River of Power How do you supply five million households with hydroelectric power from a distance of 1,400 kilometers? The answer is: with high-voltage direct-current transmission. Siemens is building the world’s most powerful such system in China. With the help of high-power transistors, rectifier modules, and smoothing reactors, a new HVDCT line is able to transmit 5,000 megawatts over the 1,400 kilometers from Lufeng to Guangzhou. Hydroelectric generation capacity on the Jinsha River is being expanded. The resulting electricity will be transmitted to major cities on China’s southeast- ern coast by the world’s most powerful HVDCT line. The high-voltage overhead lines coming from the hills to the left of the fence are al- ready carrying power, but the shiny new one that crosses the fence to the right and disap- pears over the mountain is still dead. It will go into operation in 2010 as a bipolar line trans- mitting power to Guangzhou in Guangdong province, over 1,400 kilometers away. From there it will supply five million households in the megacities Guangzhou, Shenzhen, and Hong Kong on China’s southeastern seaboard. This will reduce the country’s annual emis- sions of CO 2 by some 33 million metric tons a year, as the electricity comes from a dozen hy- droelectric plants on the Jinsha (“Golden Sand”) River, one of the headwaters of the Yangtze, which provide carbon-free power. The overhead lines arriving from the left of the site are carrying conventional alternating current (AC) that has been generated by hy- droelectric plants, some of which are located as far as several hundred kilometers away. The 1,400-kilometer transmission line to Guang z hou, however, will carry direct current. High-volt- age direct-current transmission (HVDCT) is not a new invention; as long ago as 1882, a trans- mission line of this type carried electricity from Miesbach in Bavaria to an electricity exhibition in Munich, 57 kilometers away. That, however, is where the similarities end. Back then the vol tage was a mere 1,400 volts; in China, the line will transmit at a record 800,000 volts. “The HVDCT line in China is the ultimate exam- ple of this technology. It will carry 5,000 I t takes a jarring ninety-minute ride to cover the distance from the city of Kunming in southwestern China to Lufeng. Fie lds and herds of water buffalo flash by the car window. Then, at long last, deliverance comes. Our driver turns in at a blue sign bearing lots of Chinese char- acters and “800 kV” in Western script and lets us out just beyond a rolling gate. In front of us is a site measuring around 700 by 300 meters that looks like something from another world. Gigantic pylons dripping with cables soar into the sky, while workers below toil with spades and wooden wheelbarrows to finish the last of the landscaping. The air is alive with a so no - rous hum. “That’s from the testing,” explains Jürgen Sawatzki, who is in charge of the instal- lation of equipment from Siemens at the site. Tomorrow’s Power Grids | HVDC Transmission 44 Reprinted (with updates) from Pictures of the Future | Fall 2009 Plugging into HVDC’s Advantages High-voltage direct-current transmission (HVDCT) is ideal for countries where power has to be trans- ported over long distances. HVDCT becomes financially viable from around 1,000 megawatts and 600 kilometers upward. The 1,400-kilometer HVDCT line between the Chinese provinces of Yunnan and Guangdong will transmit at 800,000 volts, a new world record. Compared to a 765 kV alternat- ing-current (AC) line of the same length, which would require immense compensation for transmis- sion losses, HVDCT will save around 36 percent in costs over a 30-year service life. In the case of undersea cables, the advantages of HVDCT come into play over distances as small as 60 kilometers. Over longer distances, AC lines act like huge capacitors that are charged and discharged 50 times a second, eventually losing virtually all their power. This effect can be compensated for by the use of coils, but such measures are not economical for underwater cables. As of May 2011, for example, a 250 kV HVDCT line from Siemens will connect the Balearic Islands with the Spanish main- land, 250 kilometers away, and carry 400 megawatts of power. The forthcoming boom in offshore wind farms will provide a further boost for the HVDCT market. HVDC PLUS is an innovative system from Siemens that features a new generation of power converter. With its compact dimensions, it is designed to provide flexible and reliable transmission from off- shore wind plants. HVDCT back-to-back links are a special instance of this technology. The principle is the same as the one governing a normal HVDC transmission system, except that the transmission and receiving stations are on the same site. Their purpose is to link different AC power networks with dissimilar voltages and frequencies by converting alternating current into direct current and then back again. HVDCT is also increasingly being incorporated into synchronous three-phase AC networks, both for long-distance transmission and to provide back-to-back links. This is because, as Prof. Dietmar Retz- mann explains, HVDCT has the major advantage over AC transmission that it acts like a firewall, auto- matically halting cascading failures within a network and thus greatly reducing the risk of a major blackout. So-called gas-insulated lines (GILs), meanwhile, are ideal for transmitting high power in urban envi- ronments, where space — the cheapest form of insulation — is usually at a premium. The lines are laid underground in a 50-centimeter pipe filled with a low-pressure gaseous mixture of nitrogen and sulfur hexafluoride. This gas insulates the conductor so well that a power of up to 3,500 megawatts can be transmitted at 550 kilovolts. GILs require little maintenance and they do not deface the landscape. As a rule, they are used in ma- jor cities, where it is impossible to build high-voltage overhead lines. In terms of construction costs alone, GILs are between five and ten times more expensive than overhead lines. However, this extra cost become smaller once the costs of land and maintenance for overhead lines are factored into the equation. What’s more, GILs become even more attractive economically at higher transmission loads. Another advantage of GILs is that the metal pipes that encase them block electromagnetic radiation. This was an important consideration for the operators of the Palexpo congress center in Geneva, where a Siemens-built GIL under the exhibition halls ensures that visitors and sensitive electronic systems are shielded from radiation fields. commissioning in June 2010. In the first proj- ect with China Southern Power Grid, Siemens handled 80 percent of the total contract vol- ume, in the second 60 percent, and in the third 40 percent. In the fourth project this share has fallen a bit further, coming in at around €370 million out of the €1 billion that the system is costing. China Southern Power Grid has stipulated that most of the compo- nents to be supplied by Siemens must be man- ufactured in China by subcontractors. So whereas Siemens is still responsible for the en- gineering of the thyristors, for example, these components and all the ancillary equipment are being manufactured under Siemens super- vision by two Chinese firms. Profiting from Innovation. It will not be possible, however, to build future systems of this kind without Siemens’ know-how, since innovation is continuously advancing the state of the art in this field. “There’s a lot of new know-how in the 800 kV technology, which is being used here for the first time,” explains Su- sanne Vowinkel, who works at Siemens’ En- ergy Sector as a commercial project manager in the field of contracts, issuing invitations to tender to suppliers, and customer relations. Innovations from Siemens include silicone- covered insulators that repel water and pro- vide better insulation when dirty. Meanwhile, engineers are already looking beyond the 800 kV mark, as higher transmission voltages pro - mise even lower line losses. The move from 500 kV to 800 kV has already reduced costs over 30 years by one quarter. The name of the game, as Vowinkel points out, is to stay one step ahead. Siemens has just landed a major contract in India and tendered bids for further HVDCT projects in China, India, the U.S., and New Zealand. What’s more, HVDCT has already be- come the cornerstone of major projects for the future, such as Desertec, which will transmit power from North Africa and the Middle East to Europe.Bernd Müller 46 Reprinted (with updates) from Pictures of the Future | Fall 2009 Tomorrow’s Power Grids | HVDC Transmission Reprinted (with updates) from Pictures of the Future | Fall 2009 47 tage here is that one conductor is operated as an 800 kV positive pole and the other as an 800 kV negative pole, thus giving a total of 1.6 million volts between them. In other words, the power is divided between two conductors in order to minimize transmission losses. At the same time, this is a precaution in the event that one pole should go down. A number of tests are scheduled for the coming months. Eight Siemens engineers, ac- commodated in an office above the valve hall, sit in the control room, gradually ramping up the voltage onscreen. This is designed to push the components to their very limits and reveal any weaknesses before the system enters serv- ice. A blackout in one of China’s large coastal cities would be a nightmare. The left half of a large control screen dis- plays the operating load of the transmission station in Lufeng as “0 megawatts.” The right side of the screen shows the status of the re- ceiving station in Guangzhou, where the di- rect current will be converted back into alter- nating current and fed into the public grid. Here a default reading of “9.999 megawatts” is displayed. Were the station in operation, the screen would show a power of 5,000 megawatts as well as a raft of other data from Guangzhou, all of which will be transferred in real time via a fiber optic cable that is laid along the HVDC transmission route. Know-how from East and West. Whereas the AC part of the system was built entirely by Chi- nese firms, the DC part contains a lot of Sie - mens know-how. Yet that doesn’t mean that all the components were made in Germany. Half of the 48 transformers are of German pro- duction, while the others were manufactured in China under the supervision of Siemens. Sawatzki has been in China for ten years now. The HVDCT system in Lufeng is his fourth for network operator China Southern Power Grid. All in all, the project will take three years, from the award of contract in June 2007 to full would still be significantly higher than with HVDCT. Sawatzki leads us into a hall the size of an aircraft hangar, where workers are installing a power stabilization system onto long poles suspended from the 20-meter-high ceiling — a measure designed to minimize the chances of a short circuit and associated electrical outage even in the event of an earthquake. The de- vices look like a stack of huge plant trays and could well have been inspired by the leg- endary Hanging Gardens of Babylon. Each tray contains a total of 30 shiny golden cans that are carefully connected in series and wired to control circuits with fiber optic cables. Inside the tins are thyristors — converter valves made of silicon, molybdenum, and cop- per — which are activated optically by means megawatts; that’s the output of five large power plants,” explains Prof. Dietmar Retz- mann, one of Siemens’ top experts on HVDCT. Low Losses. Regardless of whether pow er is trans mitted as an alternating or a direct cur- rent, the goal is to ramp up the voltage as much as possible. For both types of transmis- sion, physics dictates that for a fixed amount of power, the current is inversely proportional to the voltage. In other words, the higher the voltage, the lower the current, thus reducing the energy losses that result from the conduc- tor heating up. When transmitting over long distances, however, HVDCT is superior. “With our power highway in China, as much as 95 percent of the power reaches the consumer,” says Wolfgang Dehen, CEO of With HVDC, 95 percent of the power is transmitted; with AC, 87 percent — the equivalent of 400 megawatts less. Siemens Energy. With AC transmission lines, this falls to 87 percent, which in this case would amount to a loss of 400 megawatts — the output of a mid-sized power plant or 160 wind generators. As a result of these reduced losses, the HVDCT link will cut emissions by a further three million metric tons of CO 2 a year. In theory, it would be possible to build AC transmission lines over similar distances. A voltage of 800 kV will transmit an alternating current over a distance of 1,500 kilometers. The problem is, however, that over long dis- tances the voltage waves at the beginning and the end of the transmission line are shifted rel- ative to one another — the technical phrase here is “phase angle” — and this necessitates the installation of large banks of capacitors every few hundred kilometers for the purposes of series compensation. This drives up the price of such installations. And in spite of such compensation, the losses over long distances of a laser beam 50 times a second, exactly in phase with the current as it switches polarity. This occurs so precisely — to within a millionth of a second — that the negative waves of the alternating current are “flipped” so as to create a direct current. Because this current still has a high ripple content, it next goes to the so- called “DC yard” right behind the valve hall. There, capacitors temporarily store charge, which they “inject” into the ripples, and coils filter out interference signals emanating from the rectifiers in the hall. All this is standard cir- cuitry, as found in any mains-operated electri- cal appliance, but the dimensions are gigantic here in the DC yard. Bipolar Transmission. In another hall right next to the first one, the screed floor is being poured. Sawatzki draws a circuit diagram on a piece of cardboard and explains: “The rectifiers and the DC yard are in duplicate.” The advan- Giant 800 kV transformers were tested in Nuremberg (left) before being shipped to China for installation (center). The control room of the transmission station in Lufeng (right). A gate at the Guangzhou receiving station alerts visitors to its world-record transmission voltage. Hydropower and HVDCT are cutting China’s CO 2 emissions by 33 million metric tons a year. Reprinted (with updates) from Pictures of the Future | Fall 2009 49 Trapping the Wind Power produced from renewable sources such as wind and sunlight is irregular. Experts are therefore looking at ways of storing surplus energy so that it can be converted back into electricity when required. One option is underground hydrogen storage, which is inexpensive, highly efficient, and can feed power into the grid quickly. Pumped-storage power plants are used to stockpile surplus power (here an 80 MW plant in Wendefurth, Germany). Underground storage systems (below) could also be a solution. T he wind blows when and where it will, and it rarely heeds our wishes. These days, that can have a serious impact on our power sup- ply, to which wind energy is now making an increasingly important contribution. In 2007, wind power accounted for 6.4 percent or 39.7 terawatt-hours (TWh) of gross power con- sumption in Germany, and this proportion, ac- cording to a projection by the German Renew- able Energy Federation (BEE), could rise to as much as 25 percent (149 TWh) by the year 2020. By then, Germany should have wind farms with a total output of 55 gigawatts (GW), compared to 22 GW at the end of 2007. Germany already accounts for approxi- mately 20 percent of the world’s total wind power generating capacity. Until recently, it was the pacesetter, but has now been pushed into second place in this particular world rank- ing by the U.S. Although this is all excellent news as far as the climate is concerned, it pres- ents the power companies with a problem. Wind power isn’t always generated exactly when consumers need it. As a rule, wind gen- erators produce more power at night, and that’s exactly when demand bottoms out. With conventional power plants, output can be ad- justed in line with consumption, merely by burning more or less fuel. With fluctuating sources of energy, however, this is only possi- ble to a limited degree. The ideal solution is to cache the surplus electricity and feed it back into the grid as re- quired. The power network itself is unable to assume this function, since it is a finely bal- anced system in which supply and demand have to be carefully matched. If not, the fre- quency at which alternating current is trans- mitted deviates from the stipulated 50 hertz, falling in the case of excess demand, or rising in the case of oversupply. Both scenarios must be avoided, as there Source: KBB Underground Technologies GmbH 48 Reprinted (with updates) from Pictures of the Future | Fall 2009 Tomorrow’s Power Grids | Energy Storage would otherwise be a danger of damage to connected devices such as motors, electrical appliances, computers and generators. For this reason, power plants are immediately taken offline whenever an overload pushes the grid frequency below 47.5 hertz. Oversupply can likewise pose problems. Germany’s Renewable Energy Act stipulates that German network operators must give preference to power from renewable sources. But an abundance of wind power means that conventional power plants have to be ramped down. This applies particularly to gas- and coal-fired plants, which are responsible for providing the intermediate load — in other words, for buffering periodic fluctuations in demand. For the power plants assigned to pro- Germany’s largest pumped-storage power plant is in Goldisthal, about 350 km southwest of Berlin. The facility has an output of 1,060 megawatts (MW) and could supply the entire state of Thuringia with power for eight hours. In all, 33 pumped-storage facilities operate in Germany, providing a combined output of 6,700 MW and a capacity of 40 gigawatt-hours (GWh). Each year, they supply around 7,500 GWh of so-called balancing power, which cov- ers heightened demand at peak times — in the evenings, for example, when people swi tch on electric appliances and lights. The energy held in reserve by pumped-storage power plants can be called up within a matter of minutes. In Germany, however, simply increasing the number of pumped-storage power plants isn’t Batteries and Compressed Air. Other major industrialized countries such as the U.S. and China also make significant use of pumped- storage power plants. In addition, major ef- forts are being made to find alternative meth- ods worldwide. The best-known of all elec tricity storage devices is the rechargeable battery, which can be found in every mobile phone. Al- though the amounts of energy involved here are tiny by comparison, this has not stopped some countries from using batteries as a cache facility for the power network. “In Japan, for example, this method is used practically throughout the country,” says Dr. Manfred Waidhas from Siemens Corporate Technology (CT). “Batteries the size of a shipping container can store about 5 MWh of electrical energy and are installed in the grid close to the con- sumer.” They are used as an emergency power supply, as a reserve at times of peak load, and as a buffer to balance out fluctuations from re- Electric vehicles could serve as mobile and readily- available storage devices for electricity. vide the base load — primarily nuclear power and lignite-fired plants — ramping up and down is relatively complicated and costly. On windy days, this can have bizarre conse- quences. For example, it may be necessary to sell surplus power at a giveaway price on the European Energy Exchange in Leipzig. In fact, the price of electricity may even fall below zero. Such negative prices actually became a reality on May 3, 2009, when a megawatt- hour (MWh) was briefly traded at minus €152. In other words, the operator of a conventional power plant chose to pay someone to take the power rather than to temporarily reduce output. Storing Power with Water. By far the best solution is to cache the surplus electricity and then feed it back into the grid whenever the wind drops or skies are cloudy. Here, a proven method is to use pumped-storage power plants. Whenever demand for electricity falls, the surplus power is used to pump water up to a reservoir. As soon as demand increases, the water is allowed to flow back down to a lower reservoir — generating electricity in the process by means of water turbines. It’s a beautifully simple and efficient idea. Indeed, pumped-storage power plants have an effi- ciency of around 80 percent, reflecting the proportion of energy generated in relation to the energy used in pumping the water to the top reservoir. At present, no other type of stor- age facility is capable of supplying power in the GW range over a period of several hours. In fact, more than 99 percent of the energy-stor- age systems in use worldwide are pumped- storage power plants. such a simple option. There is a lack of suitable locations, and such projects often trigger pro - tests. As a result, Germany’s power plant oper- ators coordinate their activities with their coun - terparts in neighboring countries. Ener gie Ba den-Württemberg (EnBW), for example, uses pumped-storage facilities not only in Ger- many, but also in the Vorarlberg region of Aus- tria. Norway, too, which has a long history of hydropower, is now looking to market its po- tential for electricity storage. However, the cap- ital expenditure for doing so would be substan- tial. Such a project would involve more than just laying a long cable to Norway. The grid ca- pacity at the point of entry in both countries would also have to be increased in order to avoid bottlenecks in transmission capability. “This would be necessary because elec tricity al- ways looks for the path of least resistance and will take another route when it en coun ters an obstruction,” explains Dirk Ommeln from EnBW. newable sources of energy. Sodium-sulfur bat- teries, which have an efficiency of as much as 70 to 80 percent, are used for this purpose. Similarly, in a method known as V2G (vehi- cle to grid), electric vehicles could also serve as local cache facilities for electricity in the fu- ture, provided they are connected to the grid via a power cable. Although their battery capacity is small in comparison with the amounts of energy required in the grid, the sheer number of such vehicles and the rela- tively high powers involved — e.g. 40 kilowatts (kW) per vehicle — could make up for this. “As few as 200,000 vehicles connected to the grid would produce 8 GW. And that’s enough bal- ancing energy to improve grid stability,” says Prof. Gernot Spiegelberg from Siemens CT. “On the other hand, we need to remember that such batteries will be relatively expensive due to their compactness, safety specifications, and low weight,” warns Dr. Christian Dötsch Comparative Energy Stored per Unit of Volume kWh/m 3 Pumped-storage power plant 1 Compressed air energy storage 2 Lead-acid battery NaS battery Lithium-ion battery Hydrogen storage 3 1 Height difference: 100 meters 2 pressure: 2 MPa (= 20 bars) 3 pressure: 20 MPa, efficiency 58% 0 100 200 300 400 0.28 2.7 70 150 300 350 from the Fraunhofer Institute for Environmental, Safety and Energy Technology in Oberhau sen, Germany. “What’s more, the number of times they can be recharged is still very limited. At present, the extra re char ging and discharging for the purposes of load balancing would seri- ously reduce battery life,” says Dötsch. (For more, see page 60.) Another concept is to warehouse potential kinetic energy underground by a technique known as compressed air energy storage (CAES). This involves pumping air, which has been pressurized to as much as 100 bar, into underground cavities such as exhausted salt domes with a volume of between 100,000 and a million cubic meters. “This compressed air can be used in a gas turbine,” says Waidhas. “You still need a fossil fuel such as natural gas, but energy is saved because the compressed air for combustion is already available.” There are two CAES pilot projects world- wide: the first went into operation in Huntorf, Germany, in 1978; the second in McIntosh, Al- abama, in 1991. The basic idea behind CAES is simple, but there are drawbacks. “In both proj- ects, the gas turbines are custom made, and that kind of special development costs money,” says Waidhas. “CAES only gives you storage capacity of around 3 GWh.” Hydrogen: Ideal Storage Medium? An inte - res ting alternative to the methods already mentioned is hydrogen storage. Here, surplus electricity is used to produce hydrogen by means of electrolysis. The gas is then stored in underground caverns at a pressure of between 100 and 350 bar, where, according to Erik Wolf from Siemens Energy Sector in Erlangen, Germany, leakage is not a problem. “Typically, each year, less than 0.01 percent is lost,“ he says. “This is because the rock-salt walls of such caverns behave like a liquid, and any leaks seal up automatically.” For this reason, Reprinted (with updates) from Pictures of the Future | Fall 2009 51 says Wolf, any of the caverns already used for the short-term storage of natural gas would also be suitable for hydrogen. Around 60 caverns are now under con- struction in Germany. “If we were to use only 30 of these for hydrogen storage, we would be able to cache around 4,200 GWh of electrical energy,” Wolf points out. Hydrogen has such a high energy density that as much as 350 kilo- watt-hours (kWh) can be squeezed into every cubic meter of available storage space. This significantly exceeds CAES (2.7 kWh/m 3 ) and is matched only by lithium-ion batteries. With hydrogen storage, whenever demand for electricity rises, hydrogen is used to power a gas turbine or a fuel cell. “At present, under- ground hydrogen storage is unmatched by any other energy-storage system,” says Wolf. “Each cavern is capable of providing more than 500 MW for up to a week in base-load operation – the equivalent of 140 GWh. By way of compar- ison, all the pumped-storage power plants in Germany have a combined capacity of only 40 GWh.” What’s more, underground hydrogen storage facilities can supply power quickly and are as flexible as a combined-cycle power plant. Hydrogen has other advantages: Apart from storing energy for generating power or heat, it can also be mixed with syngas — from, for example, biomass plants — to produce fuel in a biomass-to-liquid process. That’s what’s happening in the context of a pilot project in Brandenburg, Germany. In April 2009 Enertr ag laid the foundation stone for a new test facility in Prenzlau. This will be the world’s first hydro- gen-wind-biogas hybrid power plant capable of producing hydrogen from surplus wind power. The hydrogen will be used to power hy- drogen vehicles or will be mixed with biogas to produce electricity and heat in two block-type cogeneration plants with a total output of 700 kW. The facility is scheduled to enter service in mid-2010.Christian Buck 50 Reprinted (with updates) from Pictures of the Future | Fall 2009 Tomorrow’s Power Grids | Energy Storage | Interview Arvizu In the future, electric vehicles could provide temporary storage of electricity, which could be fed back into the grid as required, thereby improving the network’s stability. Dr. Dan Arvizu, 59, is a physicist and the director of the U.S. Department of Energy’s National Re- newable Energy Laboratory (NREL) in Golden, Colorado. An expert on photovoltaic and battery technology, he worked for inter- national engineering and infrastructure company CH2M Hill, as well as the Sandia National Laboratories in New Mexico before his appointment as head of the NREL in 2005. One of his main objectives is to push the development of energy efficiency and alternative energy sources. Interview conducted in Fall, 2009. Smart Grids:Jump Starting Use of Renewable Energy Resources Smart grids are a hot topic in the U.S. What’s your vision of this area? Arvizu: Of course no one knows for sure what a smart grid will look like, but I would expect it to be flexible, interactive, less vulnerable than present systems, information-rich, and just plain more sophisticated. Today, electricity mainly comes from a network of big cables that have central power stations at various intersections. It provides a base load, on top of which vary- ing demand is met. The future of the electric grid looks different, though. The grid will prob- ably not be centralized any longer. It will meet real time needs better, and it will transport en- ergy more efficiently than the present-day grid. projects. One exciting example is in Boulder, Colorado and is called “Smart Grid City.” We are involved in this project. One important element is the installation by Xcel Energy, the sponsor- ing utility, of a broadband interconnection infra - structure that allows information to flow both ways between the consumer and the electricity utility. Forty-five thousand two-way meters are being installed. Additionally, a limited number of households will be able to see online how they consume electricity throughout the house. And in one test, some homes will have Web- addressable appliances that allow their power use information to be transmitted to the Inter- net, where the total energy use in one’s house Can you flesh this out a bit? Arvizu: Today more than 60 percent of the energy content in our supply gets lost in in- efficient conversion to electricity at the power plant or on its way to the consumer. Clearly, this has to be done much more efficiently — for example, transmission efficiency can be improved over long distances by using a high- voltage direct-current transmission system. The grid of the future will also be able to inte- grate much more energy produced by solar, wind, and other renewable energy sources. And since these sources will be more widely distributed throughout the country, energy will have to be bundled and distributed more intelligently and the grid will need to accom- modate varying generation coupled with vary- ing loads. Finally, tomorrow’s grid needs to be protected from physical and cyber attacks. What advantages does the smart grid of- fer for consumers and energy producers? Arvizu: Mostly it gives you one thing — the opportunity to make wise decisions about your energy use and ultimately save energy and save money! The smart network will allow consumers to monitor their electricity use, make choices about appliances and their use, and manage their overall energy needs based on this information. This will also allow energy providers to know how much energy their costumers actually use. That in turn may help them develop more accurate predictions of energy demand and meet it accordingly. How far has the smart grid advanced so far? Arvizu: Worldwide, there are a number of pilot could be calculated. This opens up the prospect of eventually doing away with the physical me- ter and measuring use only on the Internet. How does the U.S. compare with other coun- tries regarding smart grid implementation? Arvizu: When it comes to deployment of renewable energy technologies, the U.S. lags behind other industrial countries. Other coun- tries have been driven primarily by heavy gov- ernment subsidies for solar and wind energy. That’s what Germany has done. This has forced some countries, such as Denmark and Germany, to successfully deal with some of the interconnection challenges that renewable en- ergy sources represent. Still, when it comes to the smart grid, we have an even playing field; everybody is facing the same challenges. You often point out that energy in the U.S. has to become cheaper. Today safety regulations, labor costs, and commodity prices keep energy prices high. Alternative energy in the U.S. continues to be more expensive than conventional energy. Arvizu: That has to change. When we speak of alternative energy, we mean wind, solar, hydro- power, etc. These sources have to become the rule, not the exception. And they have to survive economically on their own, without any subsi- dies. I believe this can be achieved through tech - nological innovation and market incentives such as emissions trading for CO 2 . We also have to price the externalities of fuel extraction, conver- sion, use, and emissions — e.g. environmental damage — into the prices consumers pay so that fuel sources can be compared on the same basis. What challenges will the massive integra- tion of solar and wind power plants into the modern power grid cause? Arvizu: The main problem is that wind and solar power are in variable, rather than constant, sup- ply. Additionally, these plants are often far from urban centers. So one thing that we have to do is to intelligently interweave various energy sources that produce the equivalent of a base load, which today is still being met by coal and nuclear power plants. Also, we should learn to use power when it is available. For example, we could use electric cars, refrigerators, hot water boilers and indus- trial machinery in a way that takes advantage of a cheap surplus of energy when it is available. How could electricity be stored? Arvizu: Batteries will gain more prominence in the future to meet fluctuating energy production and demand. Battery-powered cars could make excellent storage devices. One could envision a scenario where one charges one’s car during the night when energy is cheap and uses it or feeds it back into the grid during the day. Hydropower is certainly the most straightforward storage solution, but that is not an option everywhere. In one of its studies NREL claimed that on federal lands enough resources are avail- able from renewable sources to meet all U.S. consumption needs. That ‘s impressive — but it’s not a serious proposal, is it? Arvizu: Well, one can talk of various potentials. Theoretical potential is what could be achieved with alternative energy resources if finances, politics, and technology were not an issue. These are limitations to the potential that realis- tically can be achieved. In one study we made some realistic assumptions and asked if it’s fea- sible to produce 20 percent of electricity in the U.S. from wind by 2030. Our conclusion is that this is not a crazy idea. The necessary technol- ogy already exists. The current remaining hur- dles are politics, financing and transmission. Some companies recently announced they intend to build giant solar energy plants in Africa to transmit electricity to Europe. Is something like this conceivable for the U.S.? Arvizu: Sure. In the Southwest there’s plenty of sun and the desert is huge. At this scale and with appropriate transmission, solar energy be- comes profitable. Interview: Hubertus Breuer Reprinted (with updates) from Pictures of the Future | Fall 2009 53 Plugging Buildings into the Big Picture Around 40 percent of the energy consumed worldwide is used in buildings to provide heating and lighting. But in the future, intelligent building management systems will ease the load on power and heat networks — and even feed selfgenerated electricity into the grid. In the future, buildings will actively participate in the grid. In Masdar City (small pictures) narrow spaces between and under buildings will enhance cooling. involved in the project. “The Masdar initiative is not only a fascinating project; it also fits in very well with our energy efficiency program and the solutions offered by our Environmen- tal Portfolio,” says Tom Ruyten, who manages Siemens’ activities in Dubai. Masdar is, of course, unique. After all, how often do you have the opportunity to build a complete city with a focus on minimizing its environmental footprint right from the start? However, intelligent building management technology is in demand everywhere. In indus- T he environmentally-friendly city of the fu- ture is being built in a desert in the United Arab Emirates. Not far from Abu Dhabi, work- ers from all over the world are building Masdar City. When complete, the city is expected to have 50,000 inhabitants, meet its energy requirements entirely from renewable sources, and produce zero carbon dioxide, a major greenhouse gas (Pictures of the Future, Fall 2008, p. 76). Power is to be generated prima- rily by solar-thermal power plants and photo- voltaic facilities. City planners expect improved efficiency to offset the high cost of implementing ad- vanced energy solutions. In fact, the energy required per Masdar resident is projected to be only one fifth of today’s consumption. This goal can be achieved if forward-look- ing planning and modern technology comple- ment each other. In line with this philosophy, buildings in Masdar will be built close to- gether, thereby providing each other with shade and thus reducing air conditioning re- quirements. In addition, buildings will be built on concrete pedestals, thus helping to main- tain cool temperatures by allowing air to circu- Tomorrow’s Power Grids | Networking 52 Reprinted (with updates) from Pictures of the Future | Fall 2009 to spread energy consumption. In fact, experts predict a savings potential of up to 20 percent. Small cogeneration plants in buildings could also be better integrated into power net- works in the future. “If electricity demand is high, a cogeneration plant will deliver energy to the network, while the waste heat will be fed into a local heat storage system or into the thermal capacity of the building,” predicts Christoff Wittwer from the Fraunhofer Institute for Solar Energy Systems in Freiburg, Germany. “This heat can be used later by residents.” Well-insulated water tanks capable of act- ing as heat stores are already available. In contrast, heat storage based on phase change is still at the R&D stage. Here, for example, surplus heat is used to melt a salt. Later, when demand for heat increases, the melted salt releases its stored heat and solidifies. Yield is very high: “These types of cogeneration plant have an overall efficiency of over 90 percent,” says Wittwer. “In terms of primary energy, that’s much more productive than large-scale fossil fuel power plants that don’t exploit waste heat.” Managing Demand. Conversely, consumers can also selectively switch off devices at peak times to ease network loads. The key is to know when rates are lower. For example, washing machines and driers can be run at night when electricity is cheaper. But which hours offer the best prices? “Many appliances are already capable of determining this through signals in power lines,” says Dragon. “On and off times can be determined by a smart meter.” This scenario would give utilities the advan- tage of being able to manage demand within their networks. It would also help them to pre- vent sudden peak loads from occurring — for example, when large numbers of consumers turn on appliances at the same time. However, consumers would have to con- sent to having their appliances turned on or off by a utility depending on the network’s load — based on the premise that they would be paying less for their power. Ultimately, both parties have an interest in a flat load curve, which is achieved by leveling demand over each 24-hour period. The challenge is to coor- dinate each building’s sub-systems with one another and control their communication with their surroundings. In other words, all isolated solutions should be combined. “That is not a trivial matter because these systems have developed independently over many years,” says Dragon. “We therefore need interfaces that allow control systems to com- municate with one another.” Software solutions that address this chal- lenge are being developed by Siemens Build- ing Technologies under the name “Total Build- ing Solutions” (TBS). Here, a variety of systems are being linked into one unit. They include building control and security technologies, heating, ventilation, air conditioning, refriger- ation, room automation, power distribution, fire and burglary protection, access control, and video surveillance. “Only if all of these systems harmonize per- fectly can their economic potential be fully re- alized,” says Dragon. “Whether in a stadium, an office complex, a hospital, a hotel, an in- dustrial complex or a shopping mall — TBS will ensure that the facility is working productively, users are being reliably protected, and energy is being used optimally.” Large Savings Potential. The amount of en- ergy that can be saved through the intelligent networking of power utilities and consumers varies from case to case. However, experts gen- erally agree that savings of 20 to 25 percent are realistic. “This figure fluctuates depending on the type of building,” says Dragon. “Shop- ping malls often have a savings potential of up to 50 percent, while office buildings have be- tween 20 and 30 percent. For hospitals, we’re talking about five to ten percent.” These differ- ences depend on how buildings are used. For instance, in Europe many shopping malls are open ten to 12 hours a day and closed on Sun- day. But a hospital operates around the clock. “That’s why hospitals don’t have much scope for saving large amounts of energy. The heat- ing can be turned off in an office building but not in a hospital,” says Dragon. Advanced technologies not only save en- ergy in hot and temperate zones; they can also do so in icy areas. Take the new Monte-Rosa Hut of the Swiss Alpine Club, for instance, which is perched at an altitude of 2,883 me- ters. It will be largely self-sufficient — thanks to sophisticated building technology and com- ponents supplied by Siemens (see p. 114). Power will be supplied by a photovoltaic system, supported when necessary by a cogeneration unit. In order to maximize efficiency, the build- ing’s control system will use weather forecasts and information on guest bookings, thus help- ing it to coordinate its power and heating sys- tems as well as energy storage and applicate power demand. A smart algorithm will period- ically calculate the best end temperature, so that the desired room climate can be realized with the least resources — thereby ensuring that not even the smallest amount of energy is wasted.Christian Buck energy consumption, but will also be able to communicate with household appliances and utilities. Starting in 2010, a European Union directive and legal regulations in Germany will require all new and modernized buildings to be equipped with smart meters. Customers will have better insight into their electricity costs, while utilities will be able to more accu- rately predict demand, and thus offer new products, including dynamic rates, which can change every 15 minutes. Entire grids will benefit as it will be easier trialized countries, for example, buildings are being transformed from mere energy con- sumers to active participants in the electricity market, where they offer self-generated power for sale. “More and more buildings have photo- voltaic or small wind power plants on their roofs,” says Volker Dragon, who works in the area of energy efficiency at Siemens’ Building Technologies Division in Zug, Switzerland. “In- telligent electric meters — the smart meter — will usher in a lot of change in this area.” These small boxes will not only measure late beneath them. Today, 70 percent of the energy consumed in Abu Dhabi is used to cool buildings. Planned architectural measures are expected to dramatically reduce that figure in Masdar. Masdar’s green, high-tech vision, which was developed by British architect Sir Norman Foster, is scheduled to be completed in 2016. If it proves a success, urban developers and ar- chitects from around the world may orientate their plans according to the technologies that prove themselves here. Naturally, Siemens is Reprinted (with updates) from Pictures of the Future | Fall 2009 55 Completely new business models based on smart metering will arise in coming years. month, instead of having to pay estimated fees, as was the case in the past, and then re- ceiving a huge bill at the end of the year. So living in the dark about one’s own electricity consumption will soon no longer be an issue, at least not in Arbon. The benefits that smart energy meters offer utility companies go far beyond improved grid load planning. For one thing, the manual read- ing of conventional meters is subject to errors that generate additional costs, such as the need for a second readings. These require dis- proportionate amounts of time and energy in comparison with standard reading trips. Smart meters, on the other hand, are read automati- cally. “On average, around three percent of the readings of conventional meters are erroneous and need to be repeated,” says Dr. Andreas Heine, head of Services at Power Distribution. “Smart meters reduce this error rate to nearly zero. So, if you’ve got an area with a million customers, you can save more than €1.6 million placing its conventional meters with Siemens AMIS units along with the complete meter data management system. Ninety percent of the company’s new meters communicate with a central server that processes the huge amounts of data, with most of this data trans- fer occurring via power line communication — in other words, the grid itself. “Smart metering is leading to the formation of new business models", says Philip Skipper, from Siemens Metering Services. "In many now being supplied with electricity for the very first time. A total of 150,000 villages in India alone will be hooked up to the grid over the next few years. As smart metering technol- ogy will be used here from the start, integrat- ing it into existing systems won’t be a prob- lem. More developed markets — like Brazil, for example, where the vast majority of house- holds already have electricity — will have to modernize their systems to reduce electricity per year, which corresponds to 53 percent of the previous cost for readings.” No More Flying Blind. Most smart meters are now being used in highly developed coun- tries, with dozens of projects currently under way in the U.S. and Europe. Direct economic benefits are generated in such nations mainly through a decrease in blackouts and efficiency gains in service processes. By installing around 30 million smart meters with feedback chan- nels, Italian energy supplier ENEL, for example, has been able to automatically carry out 210 million meter readings. The initial investment of €2.1 billion can be amortized relatively quickly through savings of around €500 mil- lion per year, while service costs per customer and year have been reduced from €80 to €50. EnBW ODR, which supplies electricity to the region east of Stuttgart, Germany, is now re- types of cooperation models for smart meter- ing systems by partnering with U.S.-based eMeter, one of the world’s leading providers of meter data processing services. Such partner- ships require a high degree of flexibility, how- ever, since the business logic behind smart metering projects differs greatly from region to region. Time for Smart Meters. By 2030, global electricity production is expected to increase by 63 percent over its 2008 level to approxi- mately 33,000 terawatt hours (TWh). Whereas today’s poorer countries are expected to ex- pand their annual production by around four percent, electricity production in the most de- veloped regions will grow by only about 1.3 percent per year. Completely new grid struc- tures are now being set up throughout large parts of India and China, and many regions are European Union, for example, has an energy efficiency and services directive that stipulates that all conventional meters be replaced by smart meters by 2020. Indeed, all new build- ings built today have to have such meters. According to Knaak, smart meters represent just a small component of a much larger proj- ect: the smart grid. With this energy network, it will be easier to incorporate renewable sources of energy. In addition, electricity storage will one day play a major role here and with im- proved network load planning it will be possi- ble to reduce the occurrence of the sort of ma- jor blackouts that have caused havoc in Europe and the U.S. over the last few years. “Without smart meters, there would never be a smart grid,” says Knaak. “Together with Siemens, we, in our little town of Arbon, have laid part of the foundation for this flexible network of the future.” Andreas Kleinschmidt cases the complexity and risk requires a new approach and as a trusted and proven innova- tor in this space Siemens is serving as the serv- ice partner that drives the transformation of the metering function.” Siemens prepared itself well for such new theft and increase supply reliability. Smart me- ters will thus also be installed in many areas in these markets. Finally, in many of the most de- veloped countries, legislation enacted as part of electricity market deregulation is leading to the rapid introduction of smart meters. The Transparent Network Power companies worldwide have begun installing electronic smart meters that allow customers to monitor consumption practically in real time and thus conserve energy. Such companies benefit from better grid load planning and lower costs. Siemens offers complete solutions that include everything from hardware to software. Smart meters enable consumers to monitor and manage their power use. Utilities also save money and, for the first time, gain detailed insight into network dynamics. Having such data made available in some- thing closer to real time would conserve re- sources, as consumption could then be flexibly adjusted, prices for consumers lowered or raised in line with peak loads, and power gen- eration capacity stepped down when less elec- tricity is needed. Meters capable of such real-time data deliv- ery were not available to the average con- sumer until recently — but now, more and more power suppliers are installing smart me- ters that electronically measure electricity con- sumption. Alexander Schenk, head of the AMIS Business Segment at Siemens’ Power Dis- tribution Division, explains. “Smart meters don’t just substitute a digital display for me- chanical cogs; they also automatically forward consumption data to a control center and have a feedback channel.” Among other things, this enables suppliers to send price signals to cus- tomers, who can then reduce consumption during peak times in order to save money. One smart meter now on the market is the AMIS model from Siemens, some 100,000 of which are scheduled to be installed in Upper Austria by early 2010 (see Pictures of the Future,Fall 2008, p.63). Residents of Arbon, Switzerland, on the shores of Lake Constance will also soon be enjoying the benefits offered by the Siemens meter. “The near-real-time transmission of data from households, special contract customers, and the power distribution structure gives us the kind of insight we need as to what’s going on in the grid,” says Arbon Energie’s Knaak. “This allows us as a supplier to make more pre- cise forecasts of peak load times, and thus plan more efficiently.” Arbon residents will be among the first in Switzerland to know exactly how much electricity they’re using every W hen asked about the electricity meters in the Swiss municipality of Arbon, Jürgen Knaak, head of the local power utility, Arbon Energie AG, says, “It’s time to get out of the dark!” What Knaak is referring to is the fact that for a very long time nearly all electricity customers and suppliers around the world have suffered from a huge lack of information. Consumers know nearly nothing about their electricity consumption habits, while suppliers know very little about the state of their grids at any given — including such basic informa- tion as whether loads in certain sections are dangerously high, or whether the supply volt- age has dropped dramatically in particular areas. That’s because data from electricity me- ters generally doesn’t become available until months after power is actually consumed, and such information only shows the sum of the electricity used over a specific period of time. Tomorrow’s Power Grids | Smart Meters 54 Reprinted (with updates) from Pictures of the Future | Fall 2009 Reprinted (with updates) from Pictures of the Future | Fall 2009 57 Power in Numbers Small, distributed power plants and fluctuating energy sources such as wind and sunlight have one thing in common. They increase the need for reliable and economical operation of electric power grids. The virtual power plant is an intelligent solution. It networks multiple small power stations to form a large, smart power grid. Hydroelectric plants in Germany like those at Ahausen and Niederense (below) have been in operation for decades. They are now enjoying new significance as part of a virtual power plant. Distributed Energy Management System software shows the current status of all systems included in a virtual power plant and generates an operating schedule (right) for its power generation. This schedule is controlled in the demand mode (left). Tomorrow’s Power Grids | Virtual Power Plants 56 Reprinted (with updates) from Pictures of the Future | Fall 2009 T he many hiking trails around the village of Niederense in the state of Westphalia, Ger- many, offer tranquility, bird songs, the Möhne River and unspoiled nature. As idyllic as this setting is, a small hydroelectric power station built in 1913 does not look out of place here. With an output of 215 kilowatts, the facility is one of the region’s smaller power plants. Yet its Siemens-Halske generators have been tirelessly producing electricity for nearly 100 years. And now these old-timers have become a key part of a much larger, innovative high-tech plan. Since October 2008 they have been interconnected with eight other hydroelectric plants on the Lister and Lenne Rivers in a rural part of Westphalia known as Sauerland as part of ProViPP, the Professional Virtual Power Plant pilot project of RWE (a power plant operator) and Siemens. Just about everybody stands to gain from the project — power plant owners, electricity some additional power plants,” says Martin Kramer, RWE Project Manager for Distributed Energy Systems. Externally, the nine small hydroelectric plants in the project function as a single large one. Their total initial output for pilot opera- tion was 8.6 megawatts. Even though this vir- tual power plant is not yet actively participat- ing in electric power trading, its constituent plants have established a key prerequisite for new forms of marketing. “Individually, such plants are too small to market their capacities through energy traders on the energy ex- change, or as a balancing reserve for load fluc- tuations to power grid operators,” says Kramer. “To market electric power on the en- ergy markets for minute reserves — the power that must be available on demand within 15 minutes — a virtual power plant is required to have a minimum capacity of 15 megawatts.” bar graphs showing which power stations are currently running at peak load or at base load and how much power they are producing. Using plant status information, such as electric power output, and combining it with market forecasts, DEMS generates a forecast that also takes into account the next day’s prices and the total power available. Even weather data is factored into the energy man- agement system to provide a forecast of the power available from sources with fluctuating availability, such as wind and sunshine. Before a quotation is placed on the energy market through an energy trader, it is checked and approved by the portfolio manager. Once As part of a virtual plant, even small energy producers can sell their power on the electricity market. DEMS was developed by Siemens when it became evident how the electric power grid and the electric power market would be affected by increasing supply from distributed and re- newable energies (Pictures of the Future,Fall 2007, p. 90). In the background, communication systems ensure reliable connections between the control center and individual power plants. Siemens communications devices in power stations link the stations with the control cen- ter via wireless communication modems. The advantage of this approach is that it requires no costly cables or rented landlines. The virtual plant is highly distributed. Its DEMS computer is in a control center in Plaidt Today, since the nine-member virtual power plant does not reach that level, it feeds its energy into the grid in accordance with Ger- many’s Renewable Energy Law (EEG). Follow- ing a planned expansion, however, its power will be sold directly in the energy market. Cool Controls. At the heart of Sauerland’s vir- tual power plant is Siemens’ Distributed Energy Management System (DEMS). The system dis- plays the present status of systems, generates prognoses and quotations, and controls electric power generation as scheduled. The system overview is subdivided into producers and loads, contracts, and power storage. Conveniently positioned at the center of the display is the “balance node” (the sum of the incoming and outgoing power must equal zero). Additional information is provided on “forecasting and us- age planning” and “monitoring and control.” As a result, a portfolio manager can view color it has been approved and accepted by the mar- ket, DEMS generates an operating schedule for the individual power plants in the virtual plant. The schedule specifies exactly when and how much power must be available from which plant. “DEMS does such a good job of modeling that its schedules can be run exactly the way it de- fines them,” says Dr. Thomas Werner, Product Manager, Power System Management at Sie - mens Energy. No manual corrections are needed. Martin Kramer of RWE agrees. “The system is working extremely well. Once a schedule has been generated, the energy management system controls the entire process — including the requirements of the individual power plants — fully automatically.” near Koblenz, the operator stations are in Cologne, and the power plants are in the Sauerland. In spite of this complex mix, no standards exist yet for distributed power plant communications. “Uniform interfaces and pro- tocols have yet to be defined,” says Werner, who points out that each virtual plant there- fore requires tailored solutions. “We need open standards to substantially simplify the design of virtual power plants,” he adds. Lucrative Reserve Power. Existing business models for virtual power plants already prom- ise attractive profits. As a case in point, power grid operators need to maintain a constant balance in the power grid despite fluctuations in consumption and electric power generation. This is where the virtual power plant’s opera- tor can sell reserve power and make a specific capacity available as a minute reserve. When needed, the purchaser places an order for the traders, power grid operators, and of course the end customer, who could profit from more intense competition. The virtual power plant concept complements the big utility compa- nies with their large, central power plants by creating new suppliers with small, distributed power systems linked to form virtual pools that can be operated from a central control station. Such a pool can unite wind power, co- generation, photovoltaic, small hydroelectric, and biogas systems as well as large power con- sumers such as aluminum smelters and large process water pumps to function as a single supplier. With the Sauerland project Siemens and RWE plan to demonstrate the technological and economic utility of virtual power plants and to expand their knowledge base for fur- ther applications. “The project — which will continue until 2010 — and the technology are working so well that we’re going to connect tent and often unavailable when they’re needed most. A study performed by Ludwig-Bölkow-Systemtechnik GmbH using data from the E.ON electric grid showed that there are also days (March 17 and 18 in the graphic below) when the available wind power exceeds grid demand. With continued massive expansion of the number of wind power plants, this situation will be exacerbated and be- come more frequent in the future, even as the supply of wind power continues to be well below demand on wind- less days. T here is a two-pronged solution to this problem. On the one hand, energy storage (see p. 48) — whether in the form of pumped storage power plants, compressed air storage, hydrogen caverns, or even the batteries of electric cars (see p. 60) — could be expanded. On the other hand, electric grids could be more comprehensively linked — across regions, national borders, or even conti- nents. The expansion of power grids is already unavoid- able because offshore wind farms (see p. 20) and solar thermal power plants in the desert will have to be con- nected. Siemens is among the companies currently in- volved in the erection of a high-capacity, high-voltage di- rect current transmission lines (HVDC) in China to link hydroelectric plants in the country’s interior with mega - cities more than 1,400 kilometers away on the coast (see p. 44). The State Grid Corporation, a grid operator in China, expects $44 billion will be invested in HVDC tech- nology by 2012. According to the UCTE — the Union for the Coordina- tion of Transmission of Electricity — some €300 billion must be invested in new power and gas lines in Europe over the next 25 years. “German utility companies alone plan to invest €40 to €50 billion in the modernization of the grids, with €15 to €25 billion of that going into smart grid technology,” says Rolf Adam, a principal at Booz & Company. Smart grids (see p. 40) involve not only intelligent electric meters and solutions for flexible billing, but also energy management, grid status monitoring, and the in- tegration of a wide variety of small, decentralized power generators and consumers. All of this is intended to make power grids more transparent, more flexible and more secure. Market experts at ABI Research expect that roughly 73 million smart meters will be installed worldwide in 2009. Two years ago, the equivalent figure was just 49 Reprinted (with updates) from Pictures of the Future | Fall 2009 59 Growing Demand for Renewables and Smart Grid Technologies million. In the U.S. alone, the government hopes to have a good 41 million intelligent meters installed as part of 15 projects by 2015. The U.S. Electric Power Research Insti- tute (EPRI) estimates that the creation of a nationwide smart grid over the next two decades will cost around $165 billion. Based on IEA and EPRI data, market analysts at Mor- gan Stanley Research estimate that the worldwide market volume for smart grid technologies will increase from roughly $22 billion in 2010 to $115 billion in 2030. This corresponds to an average annual growth rate of 8.8 per- cent, making smart grid technologies one of the most exciting growth markets of the decades ahead. Sylvia Trage / ue Discrepancy: Wind Power and Grid Load Output (MW) Supply greatly exceeds demand Vertical grid load Estimated wind power 2020 Actual wind power 2007 0 10 11 12 13 14 15 16 17 18 19 20 21 March 2007 5,000 10,000 15,000 20,000 25,000 Supply can’t meet demand Smart Grid Technologies: Growth Market Billions of dollars Smart meters and their infrastructure Demand management Power transmission and distribution 8.8% CAGR 2010 2015 2020 2025 2030 38 22 60 115 87 Sources: Morgan Stanley Research, IEA, EPRI et al. Source: Ludwig-Bölkow-Systemtechnik GmbH, E.ON grid February 2008 CAGR: compound annual growth rate How Renewables will Grow 2008-2030 2008 Solar 2% Biomass 47% Wind 38% Solar 29% Biomass 14% Others 1% Wind 52% Geothermal 13% Geothermal 4% 20,300 Fossil energies 2030 33,000 Worldwide power generation (in TWh) Renewables (without hydro) in 2008: 581 TWh (3% of all power generated) Renewables (without hydro) in 2030: 5,583 TWh (17%) 13% 21% 6% 41% Renewables Hydroelectric Nuclear power Gas Oil Coal 17% 15% 20% 2% 32% 2.3% p.a. 68% 54% 3% 15% Sources: Siemens, IEA, World Wind Energy Report et al. 16% 58 Reprinted (with updates) from Pictures of the Future | Fall 2009 A ccording to the International Energy Agency (IEA) and Siemens, by 2030, worldwide electricity genera- tion will grow by 63 percent relative to 2008, to a total of 33,000 terawatt hours (TWh). An increasingly large pro- portion of this power will be based on renewable energy sources. The IEA and Siemens expect that the amount of electricity generated from wind, solar energy, biomass, and geothermal energy will increase nearly ten fold from 581 TWh to 5,583 TWh, with wind power driving much of that growth. According to these projections, the a mount of wind-generated electricity fed into the grid will increase around thirteen fold. Even more impressive is the growth in solar electric- ity, which is expected to grow 140-fold, but from a much lower level. If at least a portion of the Desertec project (p. 14) is completed by 2030, much of this additional so- lar electricity could be produced by solar thermal power plants in the deserts of northern Africa and the Middle East, in addition to photovoltaic systems. According to a recent study by Clean Edge Inc., a market analysis com- pany specialized in the clean technology sector, world- wide sales for photovoltaic and wind energy systems and biofuels will increase from roughly $116 billion in 2009 to $325 billion in 2018. (Sales of solar thermal systems, which Clean Edge did not take into consideration, must also be added to this figure). Wind power will generate some $140 billion by 2018. Despite this growth in renewable energies, roughly 54 percent of the electricity generated worldwide in 2030 will still come from fossil energy sources such as coal and natural gas. In order to protect the climate and to reduce greenhouse gases, it is crucial that the efficiency of the associated power plants — in other words, the conversion of the energy contained in the raw materials into electric- ity — be increased. Technologies must also be found to remove carbon dioxide — either before or after combus- tion — so that it no longer enters the atmosphere. The potential of the associated efficiency improvement meas- ures is best illustrated by the following example: If all existing power plants were upgraded to the highest effi- ciencies technically feasible today, this improvement alone would reduce annual CO 2 emissions by 2.5 billion metric tons. That is roughly ten percent of all energy- related CO 2 emissions worldwide or roughly three times Germany’s CO 2 emissions. If renewable energies were used, the amount of CO 2 emitted during the generation of electricity would be reduced to zero. But this comes at the cost of other prob- lems. One such problem that should not be underesti- mated is the fact that wind and solar power are inconsis- | Facts and Forecasts Tomorrow’s Power Grids | Virtual Power Plants agreed-on power for a fee. The seller then starts up or shuts down generators as specified in the contract within the agreed-on timeframe to stabilize the net frequency at 50 or 60 hertz. Prof. Christoph Weber of Duisburg-Essen University estimates that an energy trader with a virtual power plant can increase earn- ings by several hundred thousand euros by paying less to the power grid operator for “compensation power.” Such payments are due when less or more power is fed into the grid than had been specified in the operating schedule. To avoid this, the electric power pro- ducer needs to adhere as closely as possible to the agreed-on operating schedule — and that’s the purpose of an energy management system such as DEMS. An interesting alterna- tive to generating additional power is for the central control station to briefly shut down large-scale consumers such as aluminum smelters. Another useful alternative is to sell electric power at the European Energy Ex- change (EEX) in Leipzig, provided that the cost of producing one megawatt hour is lower than the current exchange price. There are other uses of virtual power plants, as was shown in the case of a municipal power plant in Germany’s Ruhr district. Augmenting electric power lines to supply energy for a new residential area would have required a large capital investment. So instead of new lines, the area’s electric power needs were met by in- stalling distributed, gas-powered,mini block- type cogeneration plants and interconnecting them to form a virtual power plant that deliv- ers electric power and heating. This made it possible to postpone a huge investment for several years. Virtual power plants could also be “produced” from less obvious components, such as by interconnecting the emergency power generators in hospitals and factories with the battery storage systems common in telephone and Internet communications centers. Virtual power plants also have a macroeco- nomic advantage. “The benefit of a power station network extends far beyond its present appli- cations,” says Werner. At present consumption rates, for example, global copper reserves will be exhausted in 32 years (Pictures of the Future, Fall 2008, p. 22). And if the infrastruc- tures of countries such as India and China con- sume as much copper as the industrial coun- tries, shortages and price increases of this scarce metal are likely to occur even sooner. But if newly-industrializing countries base the expansion of their energy infrastructures on intelligent power grids and virtual power plants that generate electricity near where it will be used, i.e. in a distributed system, fewer power lines will have to be built to transport electricity, and the limited copper reserves will last longer.Harald Hassenmüller Energy exchange Invoicing Weather service Influenceable loads Communications unit Remote meter reading Distributed loads € Distributed mini block-type cogeneration and photovoltaic systems Wind farm PV system Block-type cogeneration power plant Biomass power plant Network management system Communications network Concentrator Fuel cell Advanced IT is the Core Element of a Virtual Power Plant Energy management system E Reprinted (with updates) from Pictures of the Future | Fall 2009 61 From Wind to Wheels Industrial companies and energy suppliers are working closely together to make the vision of electric mobility a reality. Along with automotive engineering, the focus here is on the interaction between vehicles, the power grid, and the technologies needed for storing and bidirectionally transmitting energy derived from renewable sources. Tomorrow’s electric vehicles will redefine mobility. Not only will they recharge in only minutes at fast- charge stations. They will also function as mobile power storage units for the smart grid. Tomorrow’s Power Grids | Electromobility 60 Reprinted (with updates) from Pictures of the Future | Fall 2009 270 kilowatts of power and a top speed of 250 kilometers per hour, also boasts high torque and impressive acceleration right from the start. Whereas a combustion engine needs some time in order to fully develop its power, an electric motor delivers its full performance immediately. The Greenster is a pioneering vehicle that demonstrates just how chic electromobility can be. Still, because the model was devel- oped in only three months, its individual com- ponents were not all part of a new component approach but instead represent a combination of available standard components. “The suc- cessor Greenster II model, which is already being planned, will have optimally matched components,” says Prof. Gernot Spiegelberg, head of the Electromobility Team at Siemens Corporate Technology (CT). Such components include a fast-charge unit and precisely tuned components for battery management, motor control, and charging electronics. The new Greenster II will be completed by the end of 2010. RWE, Siemens will soon be installing 40 charg- ing stations at locations in Germany, with 20 stations planned for Berlin. In addition, RWE is now staging a roadshow in Germany that fea- tures the Greenster. Siemens is participating in the tour, which also made a stop at the IAA In- ternational Motor Show in September 2009 in Frankfurt am Main. Siemens is pursuing the development of electromobility through a comprehensive ap- proach involving not only automotive engineer- Siemens covers all facets of electromobility — from vehicle technology to power grid integration. ings. After all, if 10,000 vehicles simultane- ously tap the grid for 20 kW each, the resulting required output will be 200 megawatts — which is what a medium power plant produces. Batteries on Wheels. The energy specialists for “Inside Car” and “Outside Car” are currently participating in Denmark’s EDISON project, which stands for “Electric vehicles in a Distrib- uted and Integrated market using Sustainable energy and Open Networks.” EDISON, the W hen the west wind rises and the North Sea begins to churn and send its heavy breakers crashing against the dunes of Jutland, thousands of windmills go into action on the Danish coast. Today, 20 percent of Denmark’s electricity is produced by wind power, making it the world leader in this area, and this figure is set to rise to 50 percent by 2025. Still, the good feeling about so much renewable energy is dampened by the fact that when the wind blows too strongly, the wind-turbine rotors generate more electricity than Denmark’s grid can handle. Up until now, Danish power utili- ties have had to send this surplus electricity to neighboring countries — and pay for doing so. It is therefore not surprising that Denmark is a pioneer in the development of storage technologies to accommodate excess electric- ity, with researchers focusing mainly on the batteries used in electric vehicles. Current plans call for one out of ten cars in Denmark to run on electricity from wind power in ten years. Although this goal may seem ambitious, given that there are hardly any electric vehi- cles on European roads today, Denmark is moveing ahead rapidly with electric mobility through a broad range of projects — and Siemens is providing support as a develop- ment partner in two areas: connecting vehi- cles to the grid and automotive engineering. Road to the Climate Summit. For example, together with Ruf, a German company that specializes in custom vehicles, Siemens will present three electrically-powered Sport Utility Vehicles (SUVs) at the UN’s World Climate Change Conference in Copenhagen, Denmark, in December 2009. These vehicles are based on the Porsche Cayenne chassis and have an integrated charging system with which they can be charged from any power outlet that provides 230–380 volts. A plug for this appli- cation has already been standardized. Charg- ing times will depend mainly on what type of output the outlet offers. Developers expect to see an initial charging power of around ten kilowatts (kW), and up to 43 kW over the medium term, which corresponds to a charg- ing time of between 20 minutes and two hours. Charging will take place via an electrical connection under the fuel tank flap. In Spring 2009 at the Geneva Motor Show in Switzerland, Ruf and Siemens presented a Porsche 997 Targa-styled model that had been converted into an electric car known as the eRuf Greenster (see Pictures of the Future, Spring 2009, p.96). This vehicle, which offers Standardized Charging. The SUVs, for their part, will be charged at the UN conference with wind power and will be used in a shuttle service between the conference center and the airport. Each vehicle can accommodate four passengers and their luggage. The con- cept includes a “power pump” from Siemens that communicates with the vehicle’s electron- ics. This is one of the key challenges for elec- tromobility — and not just in Denmark. After all, drivers will want to recharge their electric vehicles at any location — be it a garage, su- permarket, or company parking lot. In a man- ner similar to cell phone invoicing, the electric- ity used will be billed by a provider. However, for such a system to work, it will be necessary to reliably identify the vehicle and exchange data between its onboard electronics and the charge pump. In a project with energy supplier mobility,” he says. In addition to CT re- searchers, that team includes specialists from Siemens’ Energy and Industry Sectors, who are needed because future electromobility will be about more than just the vehicles themselves. The idea is that as electric vehicles enter the market, the power grid will have to be updated. It will, for example, be necessary to install sys- tems that can accommodate the total electricity requirements of the individual vehicles in pub- lic areas such as inner-city parking garages and sports stadiums. Here, one distribution trans- former complete with switchgear will be needed for every 50 vehicles. This means sev- eral dozen such transformers will have to be linked via medium-voltage switchgear. Having several thousand vehicles parked in one place will require major facilities, and these will have to be installed in basements or separate build- Danish island of Bornholm in the Baltic Sea. There, test vehicles will be charged with wind power from the public grid. When demand in the grid rises, parked cars will feed electricity back into the network. The Danes are hoping that a fleet of thousands of vehicles will be able to offset fluctuations in the wind-power supply. Instead of having separate electricity storage units to buffer against the fluctua- tions, the cars and their batteries will provide additional storage capacity, which is why EDI- SON will focus on achieving a bidirectional flow of electricity from the grid into vehicles and back. The results could be significant. If, for instance, 200,000 vehicles, each rated at 40 kW, are connected to the grid, a total out- put of eight gigawatts would be available at short notice — more than Germany requires as a cushion against consumption peaks. ing — as is the case with Greenster and the SUVs — but also systems for connecting vehi- cles to the power grid. Here, both the charging process and communications are being ad- dressed. Spiegelberg refers to these two areas as “Inside Car” and “Outside Car.” “We’ve put to- gether a team that covers all facets of electro- world’s first and most extensive project of its kind, will bring a pool of vehicles to power out- lets and connect them to the fluctuating power of the wind. The associated technology for vehicles and the grid will be developed and prepared for use over the next two years. Practical testing will begin in 2011 on the 62 Reprinted (with updates) from Pictures of the Future | Fall 2009 Tomorrow’s Power Grids | Electromobility Contaminated Grid? One of Holthusen’s jobs is to study how the grid will be affected when millions of electric vehicles are plugged into it and disconnected every day. He is therefore carrying out his research at the RisØ research campus, which has its own electricity grid. “This enables us to monitor the effects of such a situation on a small scale,” he explains. In this context, things become particularly tricky if harmonics occur when batteries are hooked up to the 50-hertz grid, as these can resonate and unbalance the grid frequency. Such disturbances, which are referred to as “grid-quality contamination,” can lead to failure of the entire network if large waves form. There are no quick fixes for such a scenario yet — but Holthusen is working on answers. In his tests, he connects up to 15 batteries, each of which weighs 300 kg and has an energy content of 25 kWh. By comparison, a mid- range vehicle requires around 18 kWh to travel 100 kilometers. Holthusen then uses software to measure how the batteries affect the grid and to cushion the results of connection. 300 kW so that batteries can be recharged in six minutes. Electrics would then be on a par with conventional vehicles. Lithium-ion batteries with such fast charg- ing capability are expected to be ready for market launch in the near future. However, new battery technologies will have to be de- veloped if a car is to be charged in as little as three minutes (see p. 117). Siemens’ testing activities are not limited to Denmark, of course. The company’s re- searchers are also active in Germany, where, they are working with Harz.EE.mobility in a project designed to determine how distributed wind, solar, and biogas power systems can be better aligned with the grid. Three participating districts in Germany’s Harz region are looking at how to incorporate electric vehicles into such a system. In this Where Motors Are Going. While the SUVs are being readied for their assignment in Copenhagen, Kuhn and his colleagues are testing a new drive system for the Greenster II, the younger brother of the model presented last March. Greenster I was a concept car — but Greenster II will be the world’s first Porsche-based electric vehicle to be manufac- tured in a small production series. The key component here is a double motor for the rear axle. Whereas the Greenster I was equipped with a rather large central motor, in the Greenster II each rear wheel will be pro- pelled by a small drive unit located relatively close to the wheel. Usually, the output of a motor is distributed across the wheels via a dif- ferential, which isn’t an ideal arrangement for fast cornering. The double-motor concept, however, uses an electronic control system that ensures opti- mal propulsion of the right and left wheels, which are exposed to different loads in a curve. It’s thanks to this phenomenon, which experts refer to as torque vectoring, that a driver can still handle a vehicle perfectly in ex- treme situations. With a central motor concept, all the power must be transferred via a bulky and heavy dif- ferential, which adds weight to the vehicle. With the double motor concept, however, a small control unit is all that’s needed to send commands by wire to the individual electric motors. Kuhn and his colleagues are now studying how well the electronic differential works. “It’s not just in the ‘Outside Car’ area that we’ve still got a lot of work to do,” says Kuhn. “The electric drive system is also highly complex in its own right.” If everything goes well with “Inside Car,” the complete Greenster II will be put on a test rig in 2010. It’s already clear to Spiegelberg what will happen next. “The coming years will see the development of electric vehicles whose four In addition to Siemens, the EDISON consor- tium includes the Technical University of Den- mark (DTU) and its RisØ-DTU research center, as well as Denmark’s Dong Energy and Østkraft power utilities, the Eurisco research and development center, and IBM. In the EDI- SON project, various working groups are re- sponsible for developing all the technologies needed for electromobility. Here, Siemens is mainly responsible for fast-charge and battery replacement systems. “Siemens’ portfolio al- ready contains many components that we are now adapting and reprogramming,” says Sven Holthusen, who is responsible for the EDISON project at Siemens’ Energy Sector. Another major obstacle to electromobility is the length of battery recharging times. With this in mind, Holthusen and his colleagues are working on a fast-charge function that oper- ates with much higher voltages and currents — initially with 400 volts and 63 amps. Holthusen’s approach is considered to be real- istic since many European households already have a 400-volt connection in the basement or other storage areas for electric ranges and other devices. “We go a great deal further in our tests, however, in order to determine what’s possi- ble,” says Holthusen. More specifically, he wants to raise charging power to as much as connection, Siemens will deliver charging posts, an energy management system for the integration of electric cars into the smart grid, and associated communication systems. In addition, researchers at Siemens CT labs in Munich are analyzing electronic compo- nents, particularly with regard to bidirectional charging and discharging. Scientists at Siemens Corporate Technology want to use test rigs to simulate various load situations. “First we’re going to test individual drive systems and then complete vehicles,” says Karl-Josef Kuhn, who is responsible for constructing bidirectional test rigs in Spiegel- berg’s team. “Later on, we’ll connect the vehicles to a simulation of the grid that will be provided by the Energy Sector.” This will be done to determine how smoothly a vehicle can be connected to the grid infrastructure. wheels will each be equipped with their own small drive unit,” he says. These motors will re- cover brake energy and eliminate the need for a large central motor and the transmission and axle shafts, thereby creating more space. Moreover, unlike axle shafts, electronic components can be installed anywhere in the vehicle and don’t necessarily have to be located near the electric motors. This will offer design- ers completely new possibilities for things like side-mounted wheels that also hold the drive units. In addition, vehicle entry and exiting could be facilitated in large multi-passenger vehicles by removing the center console and installing active fold-out seats. In general, vehicle interiors could be com- pletely redesigned and made even safer — for example, by getting rid of the hard steering column and replacing it and the pedals with levers or joysticks for operating the car. Com- pletely new features are conceivable. In fact, we can’t even begin to imagine the type of rev- olutionary breakthroughs that electromobility will lead to. Tim Schröder Prof. Gernot Spiegelberg (right). With the Greenster model, Siemens and Ruf are demonstrating just how attractive electric cars can be. When used as grid-connected storage units, they can even earn money with their batteries. We can’t even begin to imagine the type of revolution- ary breakthroughs that electromobility will lead to. Pictures of the Future | Fall 2009 47 Reprinted (with updates) from Pictures of the Future | Fall 2009 63 In Brief Our power grids are facing new challenges. They will not only have to integrate large quantities of fluctuating wind and solar power, but also incorporate an increasing number of small, decentralized power producers. Today’s infrastructure is not up to this task. The solu- tion is to develop an intelligent grid that keeps electricity production and distribution in bal- ance. (p. 40) Power produced from renewable sources such as wind and sunlight is irregular. Experts are therefore looking at ways of storing sur- plus energy so that it can be converted back into electricity when required. One option is underground hydrogen storage, which is inex- pensive, highly efficient, and can feed power into the grid quickly. (p. 48) Renewable energy sources have to become the rule, not the exception, says Dr. Dan Arvizu, director of the U.S. Department of Energy’s Na- tional Renewable Energy Laboratory (NREL) in an interview. Therefore it’s necessary that re- newable energy also reach consumers who are far away from energy sources. The world’s most powerful HV DCT system, which Siemens is building in China, shows how these eco-friendly energy sources can supply millions of citizens in far-off megacities. In 2010 the system will be- gin transmitting electricity at a record of 800 kilovolts over a distance of 1,400 kilometers from hydroelectric plants to the southeastern coast of China. This will cut the country’s annual CO 2 emissions by around 33 million tons. The HVDCT line will transmit 5,000 megawatts — equal to the output of five large power plants . (pp. 44, 50) Not only must power production become more efficient, so too must electricity con- sumers. Around 40% of the energy consumed worldwide is used in buildings to provide heating and lighting. But in the future, intelli- gent building management systems will ease the load on power and heat networks—and even feed self-generated electricity into the grid. (p. 52) Power companies worldwide have begun installing electronic smart meters that allow customers to monitor their consumption p ractically in real time and thus conserve en- ergy. Such companies benefit from better grid load planning and lower costs. Experts say completely new business models based on smart metering will arise in coming years. Siemens offers complete smart meter solu- tions that include everything from hardware to software. (p. 54) Small, distributed power plants, fluctuating energy sources such as wind and sunlight, and the deregulation of electric power mar- kets have one thing in common. They in- crease the need for reliable and economical operation of electric power grids. The virtual power plant is an intelligent solution from Siemens. It networks multiple small power stations to form a large, smart power grid. As a part of this virtual plant, these small energy producers can sell their power on the electrici - ty market. (p. 56) Industrial companies and energy suppliers are working closely together to make the vi- sion of electric mobility a reality. Along with automotive engineering, the focus here is on the interaction between vehicles, the power grid, and the technologies needed for storing and bidirectionally transmitting energy de- rived from renewable sources. Tomorrow’s e lec tric vehicles will redefine mobility. Not on ly will they recharge in only minutes at fast-char ge stations. They will also function as mobile power storage units for the smart grid. (p. 60) LINKS: Smart grid platform of the EU: www.smartgrids.eu EDISON Project: www.edison-net.dk National Renewable Energy Laboratory: www.nrel.gov Masdar Initiative: www.masdar.ae European Network of TSOs: www.entsoe.eu Electric Power Research Institute: www.epri.com Reprinted (with updates) from Pictures of the Future | Fall 2009 65 we can also develop such companies more productively than our competitors can.” By dis- cussing their strategy with Siemens experts the companies benefit from Siemens’ technical expertise and global presence. Dr. Ralf Schnell, CEO of SVC, is proud of his team. “Since its founding in 1998, SVC has par- ticipated in over 150 companies — and a third of the firms in our current portfolio offer solu- tions that boost energy efficiency. We’re active in all major markets — in Europe, Asia, and the U.S.,” he says. SVC invests €2 to €5 million per financing round in early-stage companies. But recently, it started offering minority stakes of €10 to €30 million of so-called growth-capital financing to established companies. The first such investment was made in German waste heat specialist Maxxtec AG. Every investment ends with either the sale of the company or an IPO. “At that point, the bottom-line return must be solid,” Schnell explains. Coping with Demand Peaks. SVC is on track for success with Seattle-based Powerit Solu- tions, in which it acquired an interest in May 2009. Powerit, which has seen its sales double year after year, helps industrial firms avoid Energy companies justify this policy by argu- ing that they must maintain generating capac- ity to cover even extremely rare demand peaks. To avoid such peaks, Powerit Solutions links and matches all key production power con- sumers. Food production facilities, where re- frigeration units account for a big share of electricity consumption, are a good example. Using predictive algorithms, Powerit’s soft- ware determines when, how, and by how much to turn off or down equipment without affecting food quality or production. “Our ex- perience with various industries gives us pre- cise knowledge of the processes involved,” says Zak. “We use this data to generate complex decision-making matrices that help us balance energy savings with productivity requirements. And the systems are adaptive, so they can adjust to a plant’s changing elec- tric profile.” This strategy makes it possible to reduce the power consumption not only of ongoing processes but also of processes to be carried out at a specific time in the future. Powerit Solutions customers exploit such capabilities to take advantage of demand re- sponse programs — special contracts that al- low providers to cap electricity supply at short notice, for example in midsummer, when air conditioners are running and the grid is in danger of overloading. Customers can save millions of dollars in just a few years through these programs, enabling them to recoup their initial investment very quickly. Powerit Solutions’ industrial green technol- ogy activities still largely focus on North Amer- ica; around 70 of its solutions can be found in the U.S., Canada, and Mexico. With the injec- tion of financing by SVC, however, the com- pany’s expansion can now be accelerated. Bob Zak of Powerit Solutions and B. G. Kulkarni of Transparent have a lot in common in terms of business goals. Both intend to con- quer the global market with their green tech- nologies. And both have a partner in Siemens that offers financial strength, a global net- work, and industrial expertise, especially in en- vironmental solutions. Some environmental technology compa- nies in the SVC portfolio call themselves “green dwarfs.” Together with the “green giant” — Siemens — they can more effectively make their vision of efficient resource utilization a reality.Andreas Kleinschmidt Project Financing with Siemens Major projects require solid financing; and strong financial partners are all the more important these days, now that banks are restricting credit. With its numerous major projects, Siemens Project Ven- tures (SPV) has demonstrated that Siemens can embark on new paths with its customers when it comes to the issue of financing. Siemens Venture Capital (SVC) financially participates in companies, whereas SPV provides financing for major projects. SPV’s activities to date have included financing the construction of a large coal- fired power plant in Indonesia (project volume: $1.7 billion), as well as the construction of Bangalore Airport ($585 million). “Siemens provides a portion of the financing and helps to raise funding for projects in bank or capital markets,” explains Johannes Schmidt, head of Equity & Project Finance at Siemens Financial Services. The company is helped here by its excellent contacts in the banking and financial community. SPV focuses on infrastructure projects in the energy sector, the traffic and transport infrastructure (e.g. rail projects), and the healthcare sector. Siemens consistently plays a key role in SPV invest- ments, whether as a general contractor or a supplier of important components. Like SVC, SPV also seeks to gain a solid return through its financing ventures. “This means our most important skill has to be the effective assessment of the risks of financing projects in relation to the potential earnings they offer,” says Schmidt. “Siemens’ expertise and project experience is very helpful here, of course.” Green technology projects are becoming more important for SPV as well. In May 2009, for example, the company acquired 25 percent of BGZ AG, which is itself an investment firm with 140 employees. The company implements solar, biomass, and wind power projects that also use Siemens technology. Based in the northern German city of Husum, BGZ had installed 950 megawatts of wind power ca- pacity worldwide by the end of 2008. Volker Friedrichsen, the company’s founder, chief partner, and CEO, is glad to have SPV on board as a new investor. “In Siemens, we’re pleased to have found a strong international partner to help us meet our financing requirements in the high-growth market for renewable energies. Together with Siemens, we’ll intensify our efforts to enter new markets,” he says. peaks in electricity demand during production operations. Powerit Solutions President Bob Zak has been overwhelmed by demand for his product. “Today, everyone wants to improve energy efficiency in production and have solu- tions tailored to their processes. That’s impor- tant, as avoiding demand peaks saves compa- nies lots of money,” he says. This is the case in the U.S. at least, because many energy contracts stipulate that monthly energy invoices for industrial customers must be calculated on the basis of a single con- sumption interval — the one with the highest load — even if actual consumption over the entire month is lower. The intervals used by U.S. utilities are often only 15 minutes long. 64 Reprinted (with updates) from Pictures of the Future | Fall 2009 Pictures of the Future | Siemens Venture Capital T ransparent Energy Systems began in a backyard in Pune, India in the late 1980s with the production of small industrial steam boilers. Even then, the company’s boilers were more energy efficient than any others avail- able in India. “The energy yield was at least five percent higher than that of boilers from ri- val firms,” recalls CEO B. G. Kulkarni with pride. Today, 20 years later, Kulkarni and his team are involved in the production of major indus- trial systems. Among the solutions they offer are those that convert industrial waste heat, such as that produced by cement plants, into electricity. This saves money and helps protect the environment. Systems from Transparent Energy Systems generate up to 16 megawatts While Transparent Energy Systems specializes in the utilization of waste heat (large image), Powerit Solutions (below) develops software that helps to avoid demand peaks, for example at wineries. Green Dwarfs Despite the current economic crisis, Siemens is investing venture capital in agile, innovative companies, many of which work with green technologies. of power — energy that used to be blown into the air as unused heat. “Our solutions meet our customers’ needs — and not just in India,” says Kulkarni. So in 2008 he started looking for a partner who un- derstood all aspects of his products and busi- ness model — and reached an agreement with Siemens Venture Capital (SVC) in May 2009. SVC usually acquires a minority interest in companies in the early phases of their devel- opment or, as with Transparent, as key strate- gic steps are about to be taken. SVC’s special advantage here is that it can draw from Siemens’ broad range of experience. “Our connection to Siemens got started when we were invited to participate in Siemens’ India Innovation Program 2008 com- petition, organized by SVC,” Kulkarni explains. Transparent ended up winning, and almost im- mediately after that it began talking with SVC’s representative in India, Rajesh Vakil. Thanks to Transparent’s expansion strategy, the com- pany may soon significantly increase its work- force of 150 contractual employees and 150 wage laborers at two sites in India. “Transparent is an excellent example of how we invest venture capital,” says Johannes Schmidt, head of Equity & Project Finance at Siemens Financial Services, of which SVC is a part. “Our global network and expertise enable us to identify extraordinary companies before other venture capital firms. And in many cases 78 Preparing for a Fiery Future To reach higher efficiencies, to morrow’s coal-fired power plants will have to operate at 700 degrees Celsius. Materials are being developed that can take the heat. 82 Coal’s Cleaner Outlook Researchers are developing tech- nologies for storing the CO 2 gen- erated by coal-fired power plants in underground depots. 106 Let there be Savings! Researchers have studied the life- cycles of lamps from production to disposal. Result: Efficiency and life span are the keys to a healthy environmental balance sheet. 110 Miracle in the Laundry Room Bosch Siemens Hausgeräte has developed a dryer that uses only half the power of conventional products — an energy-efficiency world champion. 116 How to Own a Power Plant Since the beginning of 2009, many households have been able to efficiently produce their own heat and electricity using com- bined heat and power units. 121 Timely Trains Detailed life cycle analyses help engineers design trains that are environmentally friendly in their operation, production, and recycling. Highlights 2025 In his special lab, energy-efficiency sleuth Henry Poiret fine tunes the environmental balance sheets of new locomotives for a rail- way company. The trains and the entire pro- duction hall are represented as holograms. Poiret is assisted in his work by his avatar “Virtual Watson.” Here, he presents a new drive system that produces electricity as soon as the train brakes, and feeds it back into the power grid. 66 Reprinted (with updates) from Pictures of the Future | Spring 2009 67 The scene is New York City in 2025. Henry Poiret, a former FBI scientist, is a specialist in environmental balance sheets who tracks down energy wasters of all kinds for his clients. For the very first time, he allows a journalist to watch him at work — and to get an inside glimpse of his new lab. Energy- Saving Sleuth T urn the light off for heaven’s sake!” The elderly man hurries across the room, past his secretary, and claps his hands quickly three times. The bright ceiling lights go out, and at the same time the dark-tinted panorama win- dows become transparent, revealing a view of Manhattan. “A few more kilowatt-hours saved,” he says with evident satisfaction. “Welcome to my office.” It wasn’t easy getting an appointment with Henry “the Sniffer” Poiret — least of all as a journalist, because if there’s one thing the 70- year-old former FBI scientist can’t stand, it’s publicity. Poiret prefers to work out of sight, and the prodigious wrongdoers he strives to hunt down — power hogs and energy wasters, gas guzzlers, and climate killers — often re- main elusive as well. In short, anything that consumes too much electricity, raw materials, or other resources must go. Poiret is an energy- Energy Efficiency | Scenario 2025 Reprinted (with updates) from Pictures of the Future | Spring 2009 6968 Reprinted (with updates) from Pictures of the Future | Spring 2009 efficiency sleuth. In recent years, he has made a name for himself by cracking a number of spectacular cases. In 2020, for example. With- out him, the city council would surely not have succeeded in setting up an almost completely CO 2 -neutral district. And many of us remember what happened last summer, when the yellow cabs in Manhat- tan finally went green thanks to electric drive technology. The old fox had a hand in that too. At the moment, Poiret is ready to help a Eu- ropean manufacturer of railway systems. U.S. Track, the local New York transit operator, wants to use a new generation of environmen- tally-friendly high-speed trains. So it an- nounced a competition — with the contract to be awarded to the company whose locomotive can demonstrate the best energy-efficiency and most favorable environmental balance sheet throughout its service life. Naturally, the Europeans don’t want to miss the opportunity to submit a concept, and they believe they can maximize their chances with Poiret’s assis- tance. The master sleuth has taken time out for our magazine and has even agreed to give us an exclusive look at his new laboratory. “Bobby, give the lad something to drink and start up the lab, we’re going down,” the master says. His secretary hands me a cup of coffee and urges me into an elevator at the end of the room. “I’ve set up a small workroom in the basement,” says Poiret. “That’s where I also show customers my results from time to time. Mr. Watson is expecting us.” When the elevator doors open, I am met by a wave of loud factory noise. We are in the middle of a cavernous as- sembly hall; welding robots are everywhere, working on half-finished trains, and the air has a metallic taste. “Watson,” calls Poiret, “turn off that sound track immediately, it’s unbearable.” The din subsides in seconds. A figure that seems strangely transparent glides forward from behind a locomotive. “Allow me to intro- duce Virtual Watson,” says Poiret. “You don’t have to extend your hand, he couldn’t shake it anyway. Mr. Watson is an avatar, a hologram, just like the entire hall. An entirely new tech- nology, and not exactly inexpensive.” Poiret takes a sip of coffee. “The entire locomotive production process can be simulated down here,” he explains. “The manufacturer has already transferred the data to me, so I can find out where energy and raw materials are wasted, for example, and deter- mine the best ways to save even more.” Poiret pulls an ultra-thin folding OLED dis- play from his pocket. “But now let’s get to work. We’re not playing a computer game here. Wat- son, explain to our young friend what we’ve learned.” “Very well, sir. We invited the Europeans to our lab, and together we took the simulated trains apart literally down to the last screw, while the design stage was still under way. In the process we noticed that the designers wanted to use mainly aluminum panels from China — flawless in quality, but rather inappro- priate with regard to the train’s environmental balance sheet.” Virtual Watson straightens his perfectly sim- ulated bow tie. “Production of these panels is very energy-intensive. And in China electricity still comes to a large extent from coal-fired power plants — they have become more effi- cient in recent years, but they still haven’t inte- grated a system of CO 2 storage. So they emit a relatively large amount of CO 2 . This is why we have recommended using aluminum panels from Iceland and Norway. In those countries, the electricity comes entirely from renewable sources such as geothermal energy and hy- dropower. That would considerably improve the train’s environmental balance sheet.” Poiret nods in approval and browses through pages on his OLED display. “Of course, we had other suggestions,” reveals the energy- efficiency detective. “Watson, show us the front drive section.” The avatar strolls over to one of the locomotives and touches the under- body. As if by a magical force, the entire train becomes transparent. “The drive system is not only gearless and ultra-efficient; it also serves as a generator. Whenever the locomotive is moving downhill or its brakes are applied, it ac- cumulates braking energy. It feeds the power back into the electrical grid or uses it for its on- board systems — so the train not only con- sumes electrical energy, but also produces it.” Poiret gestures to Watson to climb aboard one of the trains. The assistant takes a seat in one of the compartments and lights up a vir- tual pipe. “Mr. Watson has just made himself nice and comfortable atop what is essentially a compost heap: All the seat covers are com- pletely environmentally compatible, and what’s more, they will even become valuable fertilizer after they have been used,” explains Poiret. “In theory, you could even eat them. In- cidentally, the whole train is completely recy- clable and contains no toxic substances what- soever. We succeeded in hunting down all the environmental polluters before it was too late.” Poiret types a combination of keys into his PDA. Slowly, the production hall disappears, and all that remains is a small white room — and Virtual Watson. “I still have a thing or two to do here. Unfortunately, my holographic room uses quite a bit of power,” he admits. “But I can hardly bear to turn off Mr. Watson.” Florian Martini Energy Efficiency | Scenario 2025 A nyone familiar with the Intergovernmental Panel on Climate Change report (p. 7) can no longer seriously doubt that climate change is a reality. It’s clear that burning fossil fuels such as gas, coal, and oil is a major cause of the greenhouse effect. So how can we turn things around? What would happen if we began using the most modern and energy-efficient tech- nologies available for cars, power plants and household appliances? If we could start from scratch — how much energy would a hypo- thetical city with a population of ten million people require? It turns out that a comparison with a conventional city in an industrialized country leads to some surprising results… Consider the figures for Germany, for in- stance, which is the sixth-biggest energy con- sumer after the U.S., China, Russia, Japan and India. The country currently consumes 14,100 petajoules of primary energy per year (1 PJ equals 10 15 J, one quadrillion joules). Germany has a population of 82 million, which means that a hypothetical city of ten million would consume around 1,715 PJ. The German energy mix consists of 33.5% petroleum, 22% natural gas, 15% hard coal, 11% brown coal, 11% nuclear power and around 7.5% power from water, wind, solar, biomass, geothermal and other sources. Converting this primary energy into usable forms of energy leads to losses due to energy consumption by power generation facilities themselves and power transmission. As a result, consum ers wind up with only 1,045 PJ of so-called “site energy.” Industry and busi- ness consume 44% of this energy, households 26%,and the transportation sector 30%. In our hypothetical city, residents, authori- ties, and industry have all pledged to practice energy conservation. Heat is a good place to start, because 53% of site energy in Germany is used solely to generate heat for offices and homes, as well as heating up household water and supplying process heat in industry.Accord- ing to the Arbeitsgemeinschaft Energie bilan zen — a federation of seven German energy associa - tions — heat accounts for 80% of total energy consumption in private households. Heat thus offers huge savings potential that can easily be exploited. According to Germany’s Federal Environment Agency, energy consump- tion could be cut by 56% in older buildings alone simply by renovating, insulating outer walls and basement ceilings, and installing heat-insulated windows. Old buildings consume 17–25 liters of oil or cubic meters of gas per square meter of space per year. For comparison, conven- tional new buildings require only ten liters/cubic meters per year and low-energy houses five to seven. Even more impressively, a so-called “passive house” needs just 1.5 liters of oil or cu- bic meters of gas per square meter per year. It is therefore not surprising that all the old buildings in our hypothetical city have been renovated and new buildings have been built in line with low-energy or passive house stan- dards using government funding. The situation is similar for industrial and commercial buildings, in which process heat and space heating account for 67% of energy consumption. Electricity is also needed for ven- tilation and air conditioning systems. In our ef- ficient city, however, these systems no longer run at full capacity but are instead regulated in line with requirements. Here, heat and CO 2 sensors determine whether rooms are too cold or stuffy, while other sensors register if rooms are occupied and assess how much fresh air is needed. Such solutions are a specialty of Siemens’ Building Technologies Division, whose experts search for “energy leaks” in everything from hospitals and shopping cen- ters to government agencies, schools and uni- versities. As it turns out, energy consumption Energy requirements and CO 2 emissions of ten million people (based on figures for Germany in 2007). The most effective levers for reducing CO 2 emissions by consumers are heat, electricity and energy used for trans- portation; cutting losses is the key factor in terms of energy generation. Cities:A Better Energy Picture Many energy-efficient solutions that could substantially reduce power consumption are already available. A study of a hypothetical city — the world champion in energy efficiency — pro- vides insight into how such solutions could work in practice. | Urban Energy Analysis From hard coal 21 million tons = 22% (83,000 t / PJ) From petroleum 36 million tons = 37% (63,500 t / PJ) From natural gas 20 million tons = 20.5% (54,000 t / PJ) Energy-related CO 2 emissions 97 million tons of CO 2 per year Hard coal 256 PJ 15% Brown coal 188 PJ 11% Petroleum 576 PJ 33,5% Natural gas 377 PJ 22% Nuclear energy 189 PJ 11% Wind/water/ other 129 PJ = 7.5% Primary energy con- sumption 1,715 PJ / a (59 million tons hard coal equivalent) Electricity generation mix Nuclear energy (average eff. = 35%) Heating oil 1.5% Share 19.5% 23.5% 14% 23% 14.5% 4 % Hard coal (average efficiency at German power plants = 38%) Brown coal (average eff. = 37.5%) Water (3.1%), wind (6.4%), solar (0.7%), geothermal (0.1%), biomass (3.5%), waste (0.7%) Natural gas (average eff. = 49.6%) Industry + commercial 460 PJ = 44% Space heating 100 PJ Heating oil 41 PJ = 14% Natural gas 161 PJ = 54% Heating 43 PJ = 27% Mechanical energy 90 PJ = 55% I&C technology 10 PJ = 6% Lighting 19 PJ = 11,5% Heating oil 56 PJ = 27% Natural gas 110 PJ = 53% District heating 8% Renewables 12% Passenger cars (5.6 million) 217 PJ = 69% Kitchen appliances 10 PJ = 16% Freezers/refrigerators 10 PJ = 16% Washing machines, dryer 9 PJ = 15% H ot water 11 PJ = 17% TV, I&C, office 14 PJ = 22% Lighting 6 PJ = 10% Others 2 PJ = 4% Trucks 44 PJ = 14% Air transportation 32 PJ = 10% Local/long-distance rail 13 PJ = 4% Buses 6 PJ = 2% Ships 3 PJ = 1% Source: DIW, Arbeitsgemeinschaft Energiebilanzen 2009, www.ag-energiebilanzen.de Process heat 198 PJ Electricity 162 PJ Space heating 208 PJ Electricity 62 PJ Fuels 308 PJ Electricity 7 PJ Households 270 PJ = 26% Transportation 315 PJ = 30% Delivered energy use: 1,045 PJ/a From brown coal 20 million tons = 20.5% (106,000 t / PJ) Losses in power generation and transmission, and energy consumption in the energy sector itself: 670 PJ = 39% A hypothetical German megacity would require approximately 231 PJ of electrical e nergy per year (= 64 TWh / a). Given the current German energy mix, this translates into power plants with a total output of approximately 11 gigawatts, which in turn require some 680 PJ of primary energy and produce 34 million tons of CO 2 . District heating 18 PJ = 6% Renewables 21 PJ = 7% 1 petajoule (PJ) = 0.278 Terawatt-hours (TWh) Energy Picture of a City of Ten Million Based on Current German Use O thers Coal 57 PJ = 19% Reprinted (with updates) from Pictures of the Future | Spring 2007 7170 Reprinted (with updates) from Pictures of the Future | Spring 2007 in many buildings can be cut by 20%–40% without a major investment in new technology. Miserly Motors. Our efficient city has also plugged other energy leaks, such as losses from the electric motors used in drives, conveyor belts and pumps. Motors account for nearly 70% of total industrial power consumption. A lot of energy can be saved here by using intelligent and more efficient motors. In the past, virtually no one knew how much electricity was being used by which machines in a factory. But Siemens has developed analysis software that enables operators to obtain such data. The software works its way through processes at a factory and finds out how much energy is con- sumed by each machine — and when. This process reveals hidden potential for optimiza- tion and identifies energy guzzlers. Of course, waste heat is also harnessed in the efficient city. Siemens offers a concept here that is perfect for all sectors where large amounts of waste heat are produced, such as the glass, metal, pharmaceutical and cement industries. The principle is always the same. Waste heat vaporizes a liquid, and the resulting gas is used to drive a turbine, which in turn generates electricity. Naturally, all of these measures cost money. And given that local governments generally operate on tight budgets, energy savings per- formance contracting can offer an ideal solution. Here, Siemens plans and installs new technology that guarantees energy savings. Local govern- ment pays for the investment in installments financed from the energy savings achieved. Such a system doesn’t burden local budgets, and once the contract expires after around ten years, all savings flow directly to the client. In Berlin, for example, Siemens renovated 11 municipal indoor pools by replacing boilers and installing more-efficient heat recovery and warm water processing systems. It also converted operation from oil to gas. The public swimming pools now save 1.63 million euros per year — or one third of their previous energy costs. Performance contracting particularly pays off in old municipal buildings, where it can often halve energy con- sumption. The concept has also been success- fully implemented in hospitals and universities. Putting the Brakes on Energy Use.Our en- ergy-efficient city has also addressed the second- biggest energy consumer — transportation, which accounts for 28% of delivered energy. Up until recently, 5.6 million passenger cars were on the road in this hypothetical city, emitting 15 million tons of CO 2 per year. That was rea- son enough to start using the extensive and modernized public transit network, especially since taxes and toll fees had made driv ing vehi- cles with high CO 2 emissions expensive. The new buses and trains are comfortable, travel at frequent intervals, and consume 30% less en- ergy than their predecessors, thanks to light- weight materials and regenerative braking sys- tems. Motorists use hybrid vehicles that store braking energy in their batteries, which is then transferred to an electric motor. This reduces fuel consumption by around 20%. It will be pos- sible to save even more energy when electric drives and electric brakes are integrated directly into each vehicle’s wheels.In the meantime, In- ternet-based information and efficient traffic guidance systems are helping to prevent traffic jams and facilitate parking. Green Energy Production. Our city wouldn’t be an efficiency champion if it hadn’t also cut power consumption. Although electricity ac- counts for only 22% of all delivered energy con- sumed in Germany, that’s just half the story. Af- ter all, it first has to be generated in gas, coal or nuclear power plants, whose losses total any- where between 50% and 65%. In other words, 40% of all the primary energy consumed in Ger- many is used to produce electricity. That was too much for the efficiency champions, who make better use of primary energy in facilities like combined-cycle power plants, which today can convert more than 58% of the energy con- tained in gas into electricity. The energy-effi- cient city also exploits associated heat, pushing the fuel conversion rate to over 80%. Here, process steam and heat are sent via pipes to nearby factories and apartment buildings. In the town of Irsching, where a 570-mega - watt combined-cycle plant is being built for en- ergy supplier E.ON, Siemens is already demon- strating that efficiency ratings of more than 60% could soon be the norm. Weighing 444 tons, this 13-meter-long gas turbine is as heavy as six diesel locomotives — but has 100 times the output. In fact, its 375 megawatts could supply the population of a city like Hamburg. Future versions of the plant are expected to achieve an efficiency of 63% within ten years. The im- plications of this become clear when you con- sider that replacing all coal-fired plants world- wide with the latest combined-cycle plants would result in over four billion tons less CO 2 being released into the atmosphere each year. Renewable energy sources also help reduce CO 2 emissions in our imaginary city. For exam- ple, solar cells can be found on top of nearly every public and private building. Windmills, solar thermal and geothermal plants and bio- mass power plants also provide their share of electricity, while a large portion of household waste is converted into fuel for power plants. Saving at Home. Residents of the efficient city also contribute to energy conservation. Al- most half of all electricity consumed in the household is used by refrigerators, freezers, stoves, washing machines and dishwashers. Purchasing new appliances is the best invest- ment here, as the consumption of such devices has been cut by 30%–75% since 1990. The Wuppertal Institute for Climate, Environment and Energy estimates that replacing old house- hold appliances throughout Germany would reduce annual electricity consumption by 7.9 tera watt-hours (billion kWh) or 28.4 PJ — the equivalent of the annual electricity require- ment of nearly five million people. Lighting systems in this hypothetical high- efficiency city would be completely revamped as well. Lighting accounts for more than 10% of electricity consumption in Germany and nearly 19% worldwide. Given the current global en- ergy mix, that corresponds to emissions of two billion tons of CO 2 per year — or the emissions produced by 700 million passenger cars. The potential for savings here is huge and easy to exploit because energy-saving lamps can reduce consumption by up to 80% compared to con- ventional light bulbs. So too can LED lamps, which last around 50 times longer than incan- descent light bulbs. Energy consumption can also be reduced in production facilities, which up until now have often been equipped with several thousand flu- orescent lamps. State-of-the-art mirror louvre lu- minaires, electronic ballasts and dimmers that automatically adjust to natural light can generate lighting-related electricity savings of up to 80%. Thanks to the combined potential for energy conservation in households, buildings, industry, transportation and power plant technology, an efficient city could reduce its consumption of primary energy and its CO 2 emissions by 50%. This analysis of a hypothetical city clearly demonstrates that a variety of solutions already exist for achieving major reductions in energy consumption. In other words, they don’t have to be developed — they could be implemented right now.Tim Schröder Energy Efficiency | Urban Energy Analysis Replacing old appliances throughout Germany would save enough electricity for 5 million people. A stronauts working at the International Space Station (ISS) are treated to a spectac- ular view as they orbit the earth. With each revolution, the earth grows dark, and billions of lights 390 kilometers below join to form a shimmering meshwork that extends across land masses like a spider web. This light is, in fact, the only visible sign of civilization on our planet, at least as seen from space. The sea of light continually expands as the earth’s population grows. According to the UN, there will be eight billion people living on our planet in 2020. As prosperity spreads, these people will seek a higher standard of living, and will thus begin buying more and more elec- trical appliances, cars, and other products, which in turn will necessitate the construction of new factories and offices. More than anything else, all of this will require huge amounts of energy. “Energy is a necessity of life,” says Professor Peter Hennicke, former head of the Wuppertal Institute for Climate, Environment, and Energy. “But it can also be a curse if you look at it in terms of climate change, resource depletion, and the failure to use and produce it efficiently and economically.” Unfortunately, we’re still far from doing that, according to the International Energy Agency (IEA), and things won’t get any better if current trends hold up. The IEA pre- dicts that global primary energy consumption will increase by 55 percent between 2005 and 2030 if the current environmental policy framework remains unchanged (see p. 27). Consumption would thus rise to 18 billion tons of oil equivalent (toe) per year, as compared to 11.4 billion toe in 2005. The IEA study says developing countries will be responsible for 74 percent of this increase in primary energy consumption — with China and India alone accounting for 45 percent. Moreover, both of these countries will meet most of their energy needs with coal because, unlike other raw materials, coal remains abun- dant and is currently cheaper than renewable energy sources. China already has a huge hunger for coal. The country put 174 coal-fired power plants online in 2006 alone, which aver- ages out to one new plant every two days. This is a climate-change nightmare, says Hennicke, especially when you consider the fact that facil- ities built today will remain in operation for the next 30 years. “In order to contain the associ- ated risks to the climate, we have to exploit the most effective, fastest, and least expensive po- tential solution: energy efficiency.” China is aware of the problem, and has there- fore included in its 11th Five-Year Plan strict stipulations for reducing environmental pollution and improving energy efficiency. New techno - logies from Siemens are pointing the way here. A blanket of illumination as seen from space is a re- minder of our planet’s hunger for energy, which is expected to increase by 55 percent by 2030. By 2020, Earth will be home to eight billion people. Light at the End of the Tunnel The world’s population is growing — as is its thirst for energy, which is increasingly being quenched, especially in emerging markets, by streams of coal. But solutions are in sight. Emissions can be cleaned and CO 2 can be sequestered. Efficiency can stretch supplies and cut pollution. And new, renewable energy technologies are right around the corner. | Trends Reprinted (with updates) from Pictures of the Future | Fall 2007 73 R esidents of the town of Irsching in Bavaria, came out in droves in Spring 2007 to wit- ness the traditional raising of their white and blue maypole. Three weeks later, they ap- peared in droves again — this time out of concern for the pole, as an oversized trailer had shown up carrying a new turbine for the town’s power plant. The residents were worried that the turbine, which measured 13 meters in length, five meters in height, and weighed 444 tons, could pose a threat to their beloved maypole. This was not the case, however; spe- cialists supervising the transport were actually more concerned about a bridge at the en- trance to the town, which they renovated as a precautionary measure prior to the turbine’s arrival. The world’s largest gas turbine measures 13 me- ters in length, five meters in height and weighs 444 tons. It was built at Siemens’ gas turbine plant in Berlin. Unmatched Efficiency The world’s largest gas turbine, with an output of 375 megawatts, entered trial service in December 2007. In combination with a downstream steam turbine, it will help ensure that a new combined cycle power plant achieves a record-breaking efficiency of more than 60 percent when it goes into operation in 2011. | World’s Largest Gas Turbine 72 Reprinted (with updates) from Pictures of the Future | Spring 2008 Take, for example, China’s most modern electrical power plant, the Huaneng Yuhuan coal-fired facility (see p. 77). Since November 2007, so-called ultra super-critical steam tur- bine units and generators from Siemens have made possible an efficiency rating of 45 per- cent at Huaneng Yuhuan. That’s 15 percentage points higher than the global average for hard- coal power plants and seven percentage points more than the EU average. This is significant, since one percentage point of higher efficiency translates for a mid-sized power plant into around 100,000 fewer tons of CO 2 per year. “If we use the same technology in future projects, it will make a huge contribution to improving energy efficiency and environmental protection Gasification Combined Cycle (IGCC) power plants. IGCC plants transform coal and other fu- els like oil and asphalt into a synthetic gas that drives a turbine. From this gas, the CO 2 can be separated relatively easily, leaving only pure hydrogen behind. “We’re ready to start con- struction of a major IGCC facility anytime,” says Dr. Christiane Schmid from Siemens Fuel Gasifi- cation Technology GmbH, in Frei berg, Ger- many. “Siemens, after all, has been involved in the development of optimized IGCC concepts for years now.” Spain and the Netherlands, for cent between now and 2050 through more ef- ficient utilization of energy, with only marginal additional costs, according to Hennicke. Operators of an indoor swimming pool in Vi- enna, Austria, are already reaping the benefits of more efficient energy use. Thanks to a clever energy-saving model and building manage- ment system from Siemens, the pool facility now produces around 600 tons less greenhouse gas per year than in the past. The Siemens setup not only helps the environment; it’s also saving the pool’s operator €200,000 per year on in China’s electrical power generation indus- try,” says Hu Shihai, Deputy Managing Director of the China Huaneng Group. Scientists at Siemens’ Energy unit in Mül- heim an der Ruhr, Germany, are working on so- called 700-degree technology (see p. 78) as a means of increasing the efficiency of coal-fired power plants, which remain in great demand. Here, experts are trying to get turbines to with- stand extremely high steam temperatures, since the higher the temperature, the more ef- ficient the system will be. New materials and manufacturing techniques are being studied in an effort to achieve a temperature of 700 de- grees Celsius and pressure of 350 bars, which is around 100 degrees and 65 bars more than the norm in today’s power plants. Only at those new high levels can an efficiency rating of 50 percent be achieved. CO 2 SINK.Development engineers are also looking at other concepts for making coal-fired power plants more climate friendly. One ap- proach involves separating the carbon dioxide created by the coal-burning process, and stor- ing it below ground to keep it out of the atmos- phere. This would amount to nearly CO 2 -free electricity production (see p. 82). One promis- ing technique is coal gasification in Integrated example, already have IGCC power plants with Siemens technology in operation. But before such plants can be built, a number of hurdles will have to be overcome. The problem is that the legal framework for efficient CO 2 sequestra- tion still hasn’t been clarified, and locations where CO 2 might be stored have yet to be found and tested. The world’s most extensive study of underground CO 2 -storage possibilities is currently being carried out in the small town of Ketzin near Berlin by scientists from the Ger- man Research Center for Geosciences in Pots- dam (see p. 85), who will depo siting 60,000 tons of carbon dioxide in special rock strata 700 meters below ground by 2010. CO 2 SINK, as the EU-sponsored project is known,exam- ines how the gas reacts after being pum ped underground and will determine whether it could threaten to find its way back to the surface. Geologists believe that CO 2 can be trapped for thousands, or perhaps millions, of years, which means climate-friendly coal power plants may become a reality. “Still, it’s going to take time before such facilities can operate economically,” cautions Hennicke. “That’s why, in addition to focusing on producing energy more efficiently, we should be trying to use it much more efficiently as well.” A country such as Japan could reduce CO 2 emissions by 70 per- heating and water costs. Siemens has already implemented over 1,000 such energy perform- ance contracting projects worldwide. It’s a win- win situation for companies and the environ- ment alike, as the savings potential is huge. According to the IEA, buildings account for around 40 percent of global energy consump- tion and 21 percent of CO 2 emissions. Also in need of an energy diet are the ap- proximately 30 million servers around the world that keep the Internet up and running. According to Stanford University, operating these computers requires the energy gener- ated by 14 power plants in the 1,000- megawatt class. Cutting down on energy con- sumption here would also produce impressive results. “Computer centers could reduce elec- tricity consumption by more than one-third if they switched over to more efficient technolo- gies,” says David Murphy, who coordinates “Green IT” projects at Siemens IT Solutions and Services. Such projects will become more and more important in the face of rising energy prices and growing CO 2 emissions. For all its negative publicity, carbon dioxide has one positive characteristic: it has led to a huge innovation boom in the areas of energy ef- ficiency and environmentally-friendly technolo- gies. A per fect example is the state of Cali fornia, whose strict environmental regulations make it an eldorado for companies that produce clean technologies, among them Siemens. The solu- tions being developed there, ranging from ex- tremely efficient computer chips to plug-in hy- brid vehicles that “fill up” on sunlight, are pioneering, says Hennicke. “Moreover,” he adds, “if the U.S. would even come close to ex- ploiting its potential for renewable energy, we would see a huge wave of innovation that would bring us a lot closer to our goal of pro- viding energy to billions of people in a sustain- able manner.” Florian Martini “We have to exploit the most effective, and least expensive potential solution: energy efficiency.” 74 percent of the increase in global primary energy consumption will take place in emerging economies. Energy Efficiency | Trends Reprinted (with updates) from Pictures of the Future | Fall 2007 75 speaking, therefore, less fuel will be burned and 40,000 tons less carbon dioxide (CO 2 ) per year will be emitted into the atmosphere than would be the case with the Mainz-Wiesbaden plant. But there was still plenty of work to do after the plant was built in 2007, as technicians still had to test all systems to ensure that the gas lines were pressure-tight, electrical cables were properly secured, and that all valves could open and close quickly and reliably. It was like a final check before a space mission — and the countdown was under way, with ignition scheduled for mid-December, 2007. There’s good reason for Siemens’ decision to use one giant turbine rather than the two smaller ones E.ON will put into operation next door. “The price per megawatt (MW) of output and efficiency correlate with the size of the tur- bine — in other words, the bigger it is, the more economical it will be,” explains Willibald Fischer, who is responsible for development of the turbine. “In 1990, the largest gas turbine produced 150 MW, and, in conjunction with a Efficiency Record. Siemens’ project manager Wolfgang Winter points to one of the walls and explains that it is the connection to the air in- take unit, which draws in fresh air from the outside. Equipped with a special housing, fil- ters, and sound absorbers, the unit channels in 800 kilograms of air per second when the facil- ity operates at full capacity — an amount that would exhaust the air inside the hall in just a few minutes. But it will be worth the effort because the gas turbine and a downstream steam turbine will set a new world record in 2011 with an ef- ficiency rating of over 60 percent, two percent- age points higher than the previous titleholder, the Mainz-Wiesbaden power plant. Relatively The turbine produces enough electricity for the population of a city the size of Hamburg. 75-MW steam turbine, had an efficiency of 52 percent. Our gas turbine has an output of 375 MW. In combination with a 190-MW steam tur- bine it utilizes more than 60 percent of the en- ergy content of the gas fuel.” Engineers at Siemens Energy overcame two challenges while designing the turbine. They increased the amount of air and combustion gases that flow through the turbine each sec- ond, which causes output to rise more than the losses in the turbine, and they raised the tem- perature of the combustion gases, which in- creases efficiency. “It’s tricky when you send gas heated to 1,200 to 1,500 degrees Celsius across metal turbine blades,” says Fischer. “That’s because the highest temperature the blade surfaces are allowed to be exposed to is 950 degrees, at which point they begin to glow red. If it gets any hotter, the material begins to lose its stabil- ity and oxidizes.” Ceramic Coating. Siemens engineers have been creative in tackling this problem. One thing they did was lower the heat transfer from the combustion gas to the metal by applying a protective thermal coating consisting of two layers: a 300-micrometer-thick undercoating directly on the metal and a thin ceramic layer on top of that, which provides heat insulation. The blades are also actively cooled, as they are hollow inside and are exposed to cool airflows generated by the compressor. The blades at the very front (the hottest part of the turbine) also have fine holes, from which air is released that then flows across the blades, covering them with a thin insulating film, like a protective shield. As turbine blades spin, massive centrifugal forces come into play. The end of each blade is exposed to a maximum force of 10,000 times the earth’s gravitational pull, which is the 74 Reprinted (with updates) from Pictures of the Future | Fall 2007 Energy Efficiency | World’s Largest Gas Turbine The world’s largest turbine, which was built at Siemens’ Energy plant in Berlin, traveled 1,500 kilometers to get to Irsching — initially by water along the Havel river, various canals, the Rhine, and the Main. It then went down the Main-Danube Canal to Kelheim, where it was loaded onto a truck for the final 40 kilometers. This odyssey was undertaken because the only way to truly test such a large and powerful tur- bine is to put it into operation at a power plant. “It was a nice coincidence that the energy com- pany E.ON was planning to expand the power station in Irsching,” says Wolfgang Winter, En- ergy project manager in Irsching. Siemens built a combined cycle plant at the Bavarian facility (Block 5) for E.ON Kraftwerke GmbH. The plant houses two small gas tur- bines and a steam turbine. Siemens also built the plant’s new Block 4, where the giant tur- bine is installed. The new turbine’s output of 375 megawatts, which equals that of 17 jumbo jet engines, is enough to supply power to the population of a city the size of Hamburg. “Block 4 is our project at the moment,” says Winter. Siemens uses the existing infrastruc- ture here, purchases gas from E.ON-Ruhrgas, and sells the electricity it produces at the plant. But that was not that important in 2007, how- ever, as the turbine first needed to be tested over the following 18 months. To this end, the unit was equipped with 3,000 sensors that measure just about everything modern tech- nology can register — from temperature and pressure to mechanical stress and material strain. If a component is defective, or fails, computers linked to the sensors call attention to the problem immediately. The component will then be removed, replaced, or reworked. Most of the measuring technology is hid- den; the thing that stands out at the facility is a section of 21 office trailers housing the tur- bine’s measurement stations. The trailers look tiny next to the turbine hall, which is 30 meters high. Despite its massive size, the new facility’s metal facade makes it seem light and modern compared to the plant’s three old concrete tow- ers from the 1960s and ’70s, each of which is 200 meters high. The world’s largest gas turbine has an output of 375 megawatts — which equals the power of 17 jumbo jet engines.Weighing in at 444 tons, the turbine is carefully positioned. Reprinted (with updates) from Pictures of the Future | Spring 2008 77 Yuhuan, China’s most advanced coal-fired power plant, boasts a record-breaking efficiency of 45 percent — thanks to ultra-supercritical steam turbines supplied by Siemens (small photo). power plants over the last 25 years, but the de- sign and performance of those at Yuhuan are really special,” says Lothar Balling, Vice Presi- dent Steam Power Plants at Siemens. The plant operator agrees. “We’ve known for a long time that Siemens supplies the very latest technol- ogy and high-quality systems,” says Fan Xiaxia, Vice President of Huaneng Power International Inc. “Huaneng needs this kind of advanced technology to help it develop as a company.” On the other hand, Huaneng is relaxed about the prospect of Yuhuan soon being overtaken in the efficiency stakes. Indeed, it’s firmly hoped that the plant will lead the way for China’s other power generators. That’s because en- hanced efficiency, environmental compatibil- ity, and sustainability are a must for China’s electricity industry. “The Chinese administra- tion has categorically said that the country’s economy can’t be allowed to grow at the ex- pense of the environment,” says Hu Shihai, As- sistant General Manager at China Huaneng Group. “That’s why the 11th Five-Year Plan con- tains very strict targets on the reduction of pol- lution and improvements in energy efficiency.” Energy Appetite. China needs to overcome huge challenges if it is to remain on the path of economic growth. According to official statis- tics, the country's energy demand has risen by an average of 5.6 percent every year since the start of the reform era in the early 1980s, and last year it leapt by a massive 20 percent. Back in 2003, China had a total installed generating capacity of 400 gigawatts (GW). By 2007, that figure had risen to 720 GW, and is now forecast to top 1,000 GW by 2011. In 2006 alone, 174 coal-fired power plants in the 500-megawatt class entered service in China — in other words, on average, one every other day. Driving the country’s growth is not only in- dustry but also private consumption, with most Chinese households now owning a refrigerator and TV, and many now investing in washing machines and air conditioning as well. How- ever, per capita electricity consumption is still low by international standards and, according to a study by the International Energy Agency (IEA), was only around 1,780 kilowatt-hours (kWh) in 2005, substantially less than in Ger- many (7,100 kWh) or the U.S. (13,640 kWh). On the other hand, when this figure is com- pared to economic output, China is anything but frugal: for every unit of GDP, the People’s Republic consumes 3.5 times as much energy as the international average. As much as 73 percent of the country’s elec- tricity is generated from coal, the only source of energy that China possesses in any considerable quantities and which therefore doesn’t have to be imported at high cost. In 2007, around 1.5 billion tons of coal were burned in Chinese power plants. Any improvements in efficiency will therefore have a substantial impact on the country’s consumption of resources, fuel costs, and greenhouse gas emissions. In fact, a rise of a single percentage point in efficiency brings fuel costs down by 2.5 percentage points. For a medium-sized power plant that has an installed capacity of 700 MW and operates for 7,000 hours a year, this translates into an annual reduction of 100,000 tons of carbon dioxide. “Efficient and environmental power plant technology has a big role to play in reducing CO 2 emissions,” says Balling. “Our aim is to real- ize this potential worldwide.” This approach fits perfectly with the political strategy of the Peo- ple’s Republic. The country has already sur- passed the U.S. as the world’s largest producer of greenhouse gases and is aware of the responsibility that goes with this role. During initial negotiations for the follow-up to the Kyoto Protocol, China demonstrated that it takes the threat of global warming very seriously. Record Efficiency. In June 2006 Beijing pub- lished its own roadmap as to how to reduce emissions of greenhouse gases. The target is to raise energy efficiency 20 percent by 2010, based on 2005 levels. In addition, by building more-efficient coal-fired power plants, the gov- ernment plans to reduce carbon dioxide emis- sions by 200 million tons over the same period. “When you look at the most recent power plants in China, it’s obvious the country’s al- ready long past the stage of being a developing nation,” says Lutz Kahlbau, who was President of Siemens Power Generation China until mid 2009. “In fact, China’s most modern power plants are among the best anywhere in the world, with great efficiency and comparatively low CO 2 emissions,” he adds. Leading the way is the Yuhuan plant. “It’s the most energy-efficient and environmentally compatible coal-fired power plant anywhere in China,” says Hu. “If we use the same technol- ogy for future projects, it will have a huge im- pact on the efficiency and environmental im- pact of China’s power industry.” Siemens is already targeting new records for future power plants. “The next generation of coal-fired plants will operate at steam tempera- tures of 700 degrees Celsius and pressures in excess of 300 bars,” Balling explains. “That should enable us to break the magical barrier of 50 percent efficiency and thus significantly reduce CO 2 emissions compared to today’s lev- els.” With so much potential for progress, 2008 won’t be the last big year in China’s calendar. Bernhard Bartsch efficiency of power plants in China is 30 per- cent, a figure similar to that of the U.S., and even in environmentally-progressive Europe it’s only 38 percent. Not that there’s anything artificially en- hanced about the performance of the Yuhuan facility, which is operated by Huaneng Power International Inc. Such efficiency is possible thanks to the use of so-called ultra-supercritical steam turbines from Siemens (see p. 78), which make it possible to produce temperatures of 600 degrees Celsius and a pressure of 262.5 bars in the main steam line. By way of comparison, the pressure in a car tire is around 3.3 bars. The gen- erators are also from Siemens. “I’ve seen a lot of 76 Reprinted (with updates) from Pictures of the Future | Spring 2008 Energy Efficiency equivalent of each cubic centimeter of such a blade weighing as much as an adult human being. The blades of the new mega turbine are made of a nickel alloy. These used to be cast and then left to harden. Later, crystallites were made to grow in the same direction as the cen- trifugal forces. But now the blades on the giant turbine in Irsching contain alloys that have mostly been grown as single crystals through the utilization of special cooling processes. They are therefore extremely resistant to break- ing, as there are no longer any grain bound- aries between the crystallites in the alloy that can rupture. Engineers also optimized the shape of the blades with the help of 3D simulation programs, whereby the edges were designed to keep the gap between the blades and the turbine wall as small as possible. As a result, practically all the gas passes across the blades and is utilized. The blade-wall gap is made even smaller due to the turbine’s operation in a cone. This means that the shaft can be shifted several millimeters during operation until the blades nearly touch the housing — a practice known as “hydraulic gap optimization.” Trial Run. Each off the measures mentioned above produces only a fractional increase in efficiency or output. But taken together they add up to a new record. That everything worked as planned was revealed by the 18-month trial period that began in November 2007. The tests were successful beyond expec- tations. After thorough analysis of the test results, it is now possible to announuce the turbine’s power rating: 375 MW in pure gas operation, and 570 MW when used as a combined cycle power plant. A release for dis- tribution was issued in August 2009, meaning that the new mega turbine is on the market. After successful completion of all tests in August of 2009, things are now quiet in Irsching. The turbine will now be overhauled and disassembled, and all of its components will be thoroughly examined. If everything is found to be in order, the unit will be reassem- bled minus its specialized measuring equip- ment. During the overhaul, engineers will install an additional steam turbine on the shaft at the end of the generator. The turbine will make use of the generator’s 600-degree-Celsius gas to generate steam in a heat exchanger. Only through this combined cycle process can the energy in the gas be so effectively exploited as to achieve the record efficiency of 60 percent – a record in terms of eco-friendliness. Bernhard Gerl Olympic Efficiencies Generating capacity has long been regarded as the Achilles heel of China’s boom. But thanks to new technology from Siemens, power generation in the People’s Republic is becoming increasingly efficient, environmentally compatible, and sustainable. F or China, 2008 was just the latest in a whole series of big years. With posters for the summer’s Beijing Olympics plastered across billboards throughout the provinces, the Chi- nese looked upon the Games as a golden op- portunity to not only put on a huge sporting festival but also to showcase their country’s re- cent achievements. Despite having increased gross domestic product by a nominal factor of 13 over the period since 1990, the People’s Re- public was determined to show the world that it still has a lot of potential. The buzzwords of China’s latest wave of modernization were “efficiency, environmental compatibility, and sustainability” — areas in which China intends to excel every bit as much as in summer’s 2008 sporting events in Beijing. The latest demonstration of China’s commit- ment to these goals — a commitment en- dorsed by the entire Beijing administration — is on display in Zhejiang province, south of Shanghai, which is home to China’s most mod- ern power plant. The Yuhuan coal-fired plant consists of four 1,000-megawatt generating units, of which the two most recent — Units 3 and 4 — en- tered service in November 2007. The facility boasts an efficiency of 45 percent, which is very much a winning performance in this field, even by international standards. The average | Coal-Fired Power in China Reprinted (with updates) from Pictures of the Future | Spring 2008 79 Energy Efficiency | Steam Turbine Materials 78 Reprinted (with updates) from Pictures of the Future | Spring 2008 In a Siemens factory in Mülheim an der Ruhr, scientists prepare turbine materials for ultra-high temperatures (left). Gigantic steam turbines will one day have to withstand over 700 degrees Celsius. Preparing for a Fiery Future To achieve 50 percent efficiency and cut environmental impact, tomorrow‘s coal-fired power plants will use hotter steam. Testing turbine materials at hellish tem- peratures and centrifugal forces is part of the picture. I n a materials lab at Siemens’ Fossil Power Generation Division in Mülheim an der Ruhr, Germany, metals die a slow death. Weights drag relentlessly at rods made of new alloys, while material fatigue and corrosion race at time-lapse speeds. Materials specialist Hans Hanswillemenke indicates a test behind a plexi- glass sheet, where a pencil-thin metal rod clamped at each end glows a dull red. “That will break in a few days,” he says. The experiment is relentless — and that’s as it should be. After all, it’s better if the metals fail in the lab than later, after they’ve been forged to form steam turbine shafts a meter or more in diameter and are enduring enormous centrifugal forces and temperatures of 700 degrees Celsius. This metallic martyrdom is helping engi- neers prepare for the coal-fired power station of the future, which should be much more efficient and use as little fuel as possible in order to keep atmospheric emissions to a minimum. The need for action is urgent. On average, the world’s coal-fired power plants consume 480 grams of That’s equivalent to a service life of more than 25 years. “We are confident that we can achieve this goal with 700 degrees,” he says. “However, we still have to prove it.” There are good practical reasons why de- signers are determined to leap from 600 to 700 degrees and 285 to 350 bar pressure. “Above 600 degrees, we have to use new materials anyway; traditional metals just wouldn’t be able to withstand the temperatures,” says Pfitzinger. “And we want to make as much use as possible of these materials, so we’re going to go straight to 700 degrees.” The higher pres- sure is necessary to optimize efficiency. The ob- jective is to increase efficiency by four percent- age points over that achieved at 600 degrees, and to cut coal consumption by six to seven percent, thus also reducing CO 2 emissions. Exotic Mix.By new materials, Pfitzinger means nickel alloys, which are a sophisticated mix of high-strength metals like nickel and chromium, with only a pinch of iron. Such al- 2015. Such an efficient power plant would consume only 288 grams of coal per kilowatt- hour, and thus produce only 669 grams of CO 2 . Such a step would have significant conse- quences because each percentage point in im- proved efficiency — if applied to all coal burn- ing power plants — translates into 260 million tons less CO 2 each year . Ordeal by Fire. To achieve this ambitious goal, turbine materials will have to be able to survive extraordinary stresses. A glance at any physics book reveals the principle behind the heat engine — and that’s exactly what a fossil- fuel-fired power plant is. It turns out that the useful energy produced by such plants is deter- mined by the difference between the tempera- ture source and the temperature sink. In other words, the steam entering the turbine should be as hot as possible and the steam leaving it as cool as possible. The blades then have the maximum available energy to convert into ro- tational energy, which is fed into the generator. As a result, the steam temperature needs to be increased from the level currently found in the best power plants (around 600 degrees Cel- sius) to 700 degrees Celsius — the temperature to which the metals are being subjected in the Mülheim laboratory. Only then will it become possible to achieve 50 percent efficiency. “Tem- perature is the key factor,” says Dr. Ernst-Wil- helm Pfitzinger, the project manager in charge of developing the 700-degree turbine in Mül- heim. But as Werner-Holger Heine, head of Product Line Management for Steam Turbines, is only too aware, the situation is complex. For a steam turbine, customers demand a working lifetime of at least 200,000 hours, he says. coal to produce a kilowatt-hour of electricity. In doing so, they release between 1,000 and 1,200 grams of CO 2 into the air, or some eight billion tons a year. One of the most efficient coal-fired power plants in the world, the Block Waigaoqiao III in China, for which Siemens de- livered two 1,000-megawatt turbines, burns only 320 grams of coal per kilowatt-hour, and thus emits only 761 grams of CO 2 . In a project led by Trianel Power-Projektge- sellschaft, Siemens is building a comparable power plant for a consortium of 27 city utilities on a site at Lünen in northern Germany. The plant is scheduled to go into operation by 2012. However, with an efficiency of around 46 percent, these power plants are not good enough for Siemens Fossil Power Generation Division and the power plant operators. Their aim is to achieve 50 percent efficiency by loys are expensive. After processing — a painstaking process — they cost five to ten times as much as the chromium steel used to- day. That’s not exactly peanuts in a turbine re- quiring some 200 tons of the metal alloys. To reduce material costs, the turbine need not be made entirely of nickel alloy, but instead can be composed of different alloys depending on the temperatures different areas are sub- jected to. For example, the inner and outer housings are to be thermally separated by a layer of cooler steam, so that normal steel will be adequate for the outside, which will have to withstand a temperature of 550 degrees. In ad- dition, the meter-thick shaft can be forged in several pieces, with the nickel alloy only being employed in the hottest area. But even this concept creates new chal- lenges, including how to deal with different Reprinted (with updates) from Pictures of the Future | Spring 2008 8180 Reprinted (with updates) from Pictures of the Future | Spring 2008 Energy Efficiency | Steam Turbine Materials Turbines that Dwarf other Engines You might think that the new Airbus A380 is relatively large. Take its engine, for example, which has a rotor diameter of almost three me- ters and is 4.5 meters in length, making it the biggest in the world. But at Siemens’ steam tur- bine and generator factory in Mülheim an der Ruhr, you would scarcely notice the mighty A380 engines. Housings belonging to steam turbines twice that size are awaiting assembly here. Close by is a giant wheel that might look like the compressor blades of an airplane engine but is disproportionately larger. Covering 30 square meters, the turbine blade has a diameter of 6.7 meters. At 320 tons total weight, the complete rotor is the largest and heaviest in the world (picture above on this page). The finished steam-turbine set is destined for power genera- tion in a European pressurized water reactor (EPR) that is being built by Areva NP, a company in which Siemens has a minority share of 34 percent, in Olkiluoto, Finland. The project con- sortium also includes the Siemens Energy Fossil Division (for conventional plant components). The complete steam-turbine set tips the scales at over 5,000 tons and boasts a world-record output of 1,600 megawatts. Demands on heat resistance, however, are not as high as in 600-degree or 700- degree power plants. That’s because at temperatures of no more than 300 degrees Celsius the satu- rated steam from an EPR is much cooler than the steam in a coal-fired power plant, while, at 70 bar, the pressure is much lower too. However, the centrifugal force at the 340 kg blades reaches around 1,500 tons at 1,500 rpm. Combined-cycle plants, in which the exhaust heat from a gas turbine generates steam for several other turbines, are not far behind. Siemens is currently building the largest combined-cycle power plant in the world in Irsching in Upper Bavaria. With an efficiency of over 60 percent, it is also the most efficient (p. 73). The steam in the plant’s low-pressure turbine cools down to under 30 degrees Celsius and in doing so takes up such a large volume that the last two rows of blades, which are made of titanium, need to have a cross- sectional area of 16 square meters each (above). That too is a world record for so-called high-speed steam turbine sets, which turn at the remarkable speed of 3,000 rpm. heat expansion coefficients. In addition, the necessary casting, forging, milling, and testing methods for manufacturing and processing the heat-resistant material have yet to be devel- oped — at least for steam turbine components weighing several tons. The production process used for gas tur- bines, where the use of nickel alloys has long been standard, doesn’t help here. “We can’t simply copy the process,” says Pfitzinger. Gas turbines are delicate in comparison to coal tur- bines and can be built using completely differ- ent techniques. What’s more, although at over 1,400 degrees their temperatures are very high, their pressures are comparatively low, at around 20 bar. To jump from 600 to 700 degrees is no small achievement. In fact, no individual man- The first 700-degree power plant will cost around €1 billion, but will cut CO 2 emissions significantly. Twice as big as an Airbus A380 turbine, the steam-turbine rotor being manufactured in Siemens’ Mülheim an der Ruhr factory is the biggest and heaviest in the world. 1,200 1,000 800 600 400 200 0 500 400 300 200 100 0 1,115 g CO 2 /kWh 480 g coal/kWh Global average EU-wide average Technology available today 880 g CO 2 /kWh 379 g coal/kWh 727 g CO 2 /kWh 313 g coal/kWh 669 g CO 2 /kWh 288 g coal/kWh Specific CO 2 emissions [g CO 2 /kWh]* Specific coal consumption [g coal/kWh]* Mean data for coal-fired power plants (source: VGB) related to a median calorific value of 25 MJ/kg Lünen coal-fired plant * ** Net efficiency: 30 % 38 % 50 % Steam power plant with 700 °C tech - nology (2014) The problem of naming such power plants will certainly be easier than developing their technologies. Because water converts directly into steam at pressures of over 221 bar, design- ers characterized modern power plants as “over-critical” in line with this physical phenom- enon. That not only sounds unnecessarily threatening; it also requires some mental acro- batics in terms of finding names. At temperatures from 600 to 620 degrees Celsius engineers refer to “ultra-supercritical.” For the 700-degree class, there is no designa- tion yet — let alone for anything beyond that. But Heine isn’t interested in the next name combination of “hyper,” “ultra” or “super.” “At present, plants with temperatures of 760 or even 800 degrees are in the realm of fantasy,“ he says.Bernd Müller ufacturer could handle this task alone — which is why producers, plant manufacturers, and en- ergy suppliers have formed a number of con- sortia, within which they are developing the 700-degree technology. These include: COMTES700. A “Component Test Facility for a 700°C Power Plant” is supported by the Euro- pean Union. The European Association of Po- wer and Heat Generators (VGB Power Tech) is coordinating a dozen international project partners, including Siemens. From 2005 until 2009, the 30-year-old F Block at the E.ON coal- fired Scholven power plant in Gelsenkirchen, Germany was in operation using components NRWPP700. The “North Rhine-Westphalia 700°C Power Plant” is a pre-engineering study by ten European energy suppliers, in which no- thing is being built or tested. Instead, the focus is on technical design concepts for the boiler, pipe work, and other components of a 500-me- gawatt power plant. The feasibility of their transfer to commercial coal and lignite-fired plants of the 1,000-megawatt-class is also being evaluated. 50plus. Based on the results of preliminary projects, E.ON wants to put the first "real" 700- degree power plant into operation in Wilhelms- haven in 2014. To achieve at least 50 percent also developing a process for the separation of CO 2 downstream from conventional power plants. In the future, it will be possible to fit ex- isting and new power plants with this technol- ogy. The development of more efficient coal- fired power plants could thus become an exciting race between different concepts. In any event, Siemens will be part of it. And what does the future hold in store? “That depends not only on technological devel- opments, but also on political decisions and legislation,” says Balling. “That’s because the development and realization of innovative CO 2 concepts need support.” that could one day be used in a 700-degree po- wer plant. These included a test boiler, main steam lines, and other components operated at temperatures of 700 degrees Celsius, including a nickel alloy turbine valve made by Siemens. The old turbine was not affected by any of this. efficiency, E.ON plans to preheat the combus- tion air and use seawater, which cools more ef- fectively, for cooling — hence the location of the plant in a coastal city. Construction of the 500-megawatt block is expected to start in 2010. CO 2 Emissions in Coal-Fired Power Plants As efficiency increases, coal consumption drops and carbon dioxide emissions decline. After passing through the test section, the steam cooled to 520 degrees Celsius to avoid potential damage. Says Siemens turbine expert Dr. Holger Kirchner, “The inspection of the val- ve was very positive.” The results of the test will be analyzed by 2011. But 700-degree power plants are not yet an economical proposition. Today, a power plant in the 600-degree Celsius/800-megawatt class costs over €1,700 per kilowatt. 50plus will cost €1 billion, which will drive costs up to €2,000 per installed kilowatt. 50plus has therefore been essentially designed as a demonstration plant for future series-produced power sta- tions. "When things get uneconomical, cus- tomers are no longer interested," says Heine. But considering the increasing costs of raw ma- terials and CO 2 levies, savings will be possible due to the plant’s improved efficiency, even al- lowing for the 10 to 15 percent higher costs of a series-produced 700-degree power plant. Competing Concepts. The new 700° technol- ogy will compete with other technologies, such as IGCC power plants, in which coal and other fuels, such as oil and asphalt, are converted into syngas and fed into a gas and steam-tur- bine power plant (Pictures of the Future, Spring 2007, p.91). “Today, with modern gas turbines, we achieve efficiency levels of up to 46 per- cent,” says Lothar Balling, head of the Steam Power Plants and Emerging Plant Solutions unit at Siemens’ Fossil Power Generation Division in Erlangen. “By 2020 improvements will enable efficiencies of up to 51 percent without CO 2 separation with our H-class gas turbines.” Several IGCC plants are already in operation, including coal gasification plants in refineries, which produce hydrogen-rich syngas for chem- ical processes. Economically speaking, the IGCC power plants that Siemens is developing for power generation purposes are still at a disad- vantage compared with conventional coal-fired power plants. IGCC can, however, become real- ly competitive if CO 2 is made to play an eco- nomic role, for example through the introduc- tion of a CO 2 tax or use of the gas in old oil fields to further improve their yield. The tech- nology of CO 2 separation from syngas down- stream of a gasification unit already exists and is used in the petrochemicals industry. This technology allows CO 2 emissions to be reduced by over 85 percent to under 100 grams per kilowatt-hour. Together with E.ON, Siemens is 46 %** Reprinted (with updates) from Pictures of the Future | Spring 2008 83 Energy Efficiency | CO 2 Separation 82 Reprinted (with updates) from Pictures of the Future | Spring 2008 Siemens scientists at the company’s test plant in Freiberg, Germany (below), are developing coal gasifiers (right) and investigating how different types of coal behave during the gasification process. C oal is currently experiencing a real boom. That’s because the Earth's population and its hunger for energy are growing fast, and many countries have their own substantial re- serves of coal. This makes them independent of other sources of energy, in particular petro- leum and natural gas. The drawback to this de- velopment is evident, however, as CO 2 emis- sions per kilowatt-hour of electricity generated at coal-fired power stations are almost twice as high as those from natural gas-fired combined cycle plants. Still, the world economy cannot do without coal. More than 41 percent of the world's electricity is generated today at coal- fired power stations; in China, that figure is over 80 percent. In 2006 alone, 174 coal-fired power stations in the 500-megawatt class went on line in China. According to estimates by Siemens, the share of worldwide electricity generation accounted for by coal will decrease from 41 percent to 32 percent between now and 2030 as a result of the sharply expanding use of renewable energy sources. Neverthe- With the oxyfuel concept, coal or natural gas is burned with pure oxygen rather than with air, as is the case in conventional steam power plants. This prevents large amounts of nitrogen, which makes up three quarters of the volume of atmospheric air, from being need- lessly added to the process and then forming nitrogen oxides during combustion. The flue gas thus produced is composed mostly of car- bon dioxide and water vapor, whereby the CO 2 is separated through condensation. Proven IGCC technology.Siemens has been focusing on the first two methods — i.e. pre and post-combustion capture. “There are big differences in the current stage of technologi- cal development of the three methods,” says Dr. Christiane Schmid from the Business Devel- opment department at Siemens Fuel Gasifica- tion Technology GmbH in Freiberg, which is part of Siemens’ Fossil Power Generation Divi- situation remains unclear for our customers, since it’s difficult to project just how expensive IGCC with CO 2 separation will actually be.” On account of all these uncertainties, it will proba- bly be several years before the first IGCC power station with a CO 2 separation unit is built. The key components of IGCC plants are the gasifier and the gas turbine, according to Schuld. Both of these components are part of the Siemens portfolio, whereby gasifier tech- nology was added in mid-2006, when Siemens acquired what is today known as Siemens Fuel Gasification Technology GmbH in Freiberg near Dresden. Up until 1990, that organization was part of the Deutsches Brennstoffinstitut (Ger- man Fuel Institute). Freiberg is located in what is therefore particularly high from customers in these countries.” The extent of this competitive edge becomes even clearer when we look at the service life of an IGCC power station. “If a customer decides on a gasification plant, it means they’ve incor- porated into their calculations the associated operating costs over a 20 to 25-year period,” says Schuld. “However, a fixed-price delivery contract for coal can only be secured nowadays for a limited number of years. So, where the coal will later come from, what type it will be, and what it will cost are things no one can pre- dict in advance. However, with our technology the customer remains on the safe side through- out the entire plant lifespan, because he can The first IGCC coal-fired power plants with integrated CO 2 separation are due to enter service in 2012. Capturing Carbon Dioxide Coal will remain a cornerstone of the energy supply all over the world for a long time to come. New technologies are expected to free power station flue gases of the greenhouse gas carbon dioxide — thus making a vital contribution to environmental protection. less, the absolute amount of electricity gener- ated with coal during this period will actually increase from 8,300 terawatt-hours (TWh) to- day to 10,500 TWh. That makes it even more essential for power plant construction companies and energy utili- ties to design and operate coal-fired power sta- tions as cleanly as possible. A tremendous ef- fort has been undertaken worldwide for some years now to introduce carbon capture and storage (CCS) technology. Depending on the type of power plant, there are three distinct methods for separating CO 2 when burning coal to generate electricity: coal gasification in IGCC plants (IGCC stands for Integrated Gasification Combined Cycle) with separation before combustion (pre-com- bustion capture); separation of CO 2 from flue gas downstream from a conventional steam power plant (post- combustion capture); and the oxyfuel process for steam power plants. sion (see box on p. 84 for more information on IGCC). “IGCC technology is the only method that’s been sufficiently tested, and there are al- ready plenty of practical examples from the gas processing industry of CO 2 separation from synthesis gas.” As early as the 1990s, IGCC power stations were built in Puertollano, Spain, and Buggenum, the Netherlands, for which Siemens supplied the power plant components and managed the integration of the facilities. “These plants all demonstrate the feasibility of the IGCC concept,” explains Schmid, a process technology expert. “However, in those days CO 2 separation wasn't even on the agenda." The reasons for the current lack of any large-scale low-CO 2 power plants in operation are many and varied. Guido Schuld, managing director of Siemens Fuel Gasification Technolo- gy GmbH, explains: “There are no firm legal or political structures in place, especially with re- gard to the storage of CO 2 . In addition, the cost used to be the German Democratic Republic, whose government authorized the develop- ment of the so-called dry feeding system in the 1970s in order to be able to utilize lignite from the Lusatia region. Although the authorities didn’t know this at the time, it turns out that the technique offers major competitive advan- tages. That’s because the process enables al- most any type of coal to be used for gasifica- tion. Alternatively, coal can be injected into a gasifier in a watery emulsion, which means the crushed fuel first has to be mixed with water. “This technology is suitable for expensive an- thracite and hard coal, but not at all for lignite or other types of coal with low calorific values, for example,” Schuld explains. “But it’s precisely these low-grade types of coal that are available in large quantities in emerging markets such as China and India, as well as in America and Aus- tralia. Demand for Siemens gasifier technology use a wide range of the coal available in the world and purchase it as needed in accordance with prevailing prices.” Retrofitting for CO 2 scrubbing.Whereas pre- combustion capture in IGCC plants is outstand- ingly suited to new facilities, the third technical approach — post-combustion capture — can also be used in existing power stations. In this process, CO 2 is removed from the flue gases af- ter combustion. “This CO 2 scrubbing is the only retrofit option over the medium term for sepa- rating CO 2 in existing power stations,” says Dr. Rüdiger Schneider, section manager for power plant chemical processes in the Fossil Power Generation Division. In this case, approximately 90 percent of the CO 2 in the flue gas binds at low tempera- tures to a special CO 2 cleansing agent in an ab- sorber, and is thus removed. “We then feed the CO 2 -laden detergent into a desorber and free it Reprinted (with updates) from Pictures of the Future | Spring 2008 85 | CO 2 Sequestration In Ketzin, Germany, scientists plan to pump 90,000 tons of CO 2 into the earth. Geologists have drilled holes 700 meters into the rock and installed numerous measuring probes. Testing Eternal Incarceration Emissions from coal-fired power plants must become cleaner — which means removing their carbon dioxide content. The best place to store this greenhouse gas permanently is deep underground. That’s exactly what is happening at a test facility near Potsdam, Germany. I t’s raining in Ketzin. A drill tower rises up to- ward the dark clouds; a few gas tanks and a plain shack stand in a green meadow in the middle of the Havelland district, a half-hour west of Potsdam. Professor Frank Schilling from the research facility GeoForschungsZentrum Potsdam (GFZ) points down into a mud-filled hole from which a pipe as wide as a man pro- trudes. A tangle of cables can be seen inside it. “Here’s where we measure the spread of car- bon dioxide underground,” says Schilling, who is a mineralogist. At the other end of the mead- ow, a second hole plunges down, this one also filled with a mass of cables, and 100 meters away there is a third hole. At the latter, pipes from a tank run into the damp soil. Seven hun- dred meters under Schilling’s feet, these pipes will pump up to four tons of carbon dioxide per hour into the sandstone at high pressure, thus displacing salt water from pores in the rock. The GFZ project near Ketzin, population 4,000, is called CO 2 SINK. Since June 2008, up to 30,000 tons of CO 2 per year have been pumped into the earth. Considering its three- year life span, the project is expected to se- quester about 90,000 tons of CO 2 — roughly as much as the 150,000 residents of Potsdam will exhale during the same period. But that’s noth- ing compared to the more than 10 billion tons of this greenhouse gas that are expelled into the atmosphere each year through power plant smokestacks. And the problem will grow more acute, judging from the forecasts of the Inter- national Energy Agency (IEA) and Siemens, which indicate that fossil fuels will account for one third of the increase in power production over the next 20 years (see p. 59). In fact, coal demand is expected not to decrease, but to rise by 27 percent. China, for example, put 174 coal-fired power plants in the 500-megawatt class into operation in 2006 alone, which cor- responds to the commissioning of one plant every two days (see p. 28). Underground Disposal. In view of these de- velopments, CO 2 SINK could, in spite of its mod- est scope, provide important answers to basic unresolved questions regarding CO 2 sequestra- tion and therefore contribute significantly to environmental protection. If the measurements in Ketzin confirm the models, which predict that the gas can be securely confined underground in porous rock for thousands if not millions of years, the project would send an important sig- nal worldwide. It would prove that CO 2 from coal-fired power plants, refineries, cement fac- tories, and steel mills can be pumped into the earth and stored there. And if the gas isn’t emit- ted into the air, it can’t harm the climate. More- over, there is an abundance of room under- Pilot Plant Captures Carbon Dioxide In September 2009, Siemens and E.ON launched a pilot carbon dioxide (CO 2 ) capture facility. Lo- cated at the Staudinger coal-fired power plant near Hanau, Germany, the facility removes around 90 percent of the CO 2 from a part of the flue gases emitted by the plant. Thanks to a special scrub- bing process from Siemens, the separation process consumes relatively little energy and does not negatively impact the environment. This is due to the fact that experts at Siemens Energy chose a detergent that lowers energy consumption, and optimized many process parameters. The result is a CO 2 scrubbing process that costs only 9.2 percentage points in terms of efficiency, which means it consumes far less energy than previous procedures, whose efficiency costs total more than ten percentage points. The detergent used is also very stable, which means that it hardly reacts with trace substances in the flue gas. As a result, it is almost fully retained in the cycle — that is, it does not escape with the residual gas, as is the case with many other detergent substances. The pilot facility is testing the technology under real-life power plant conditions. Among the factors being examined are the detergent’s long-term chemical stability and the effectiveness of the process. In addition, the re- searchers aim to further reduce energy consumption. 84 Reprinted (with updates) from Pictures of the Future | Spring 2008 Energy Efficiency | CO 2 Separation IGCC with CO 2 Separation In the IGCC process, the conversion of coal into power can be combined with upstream CO 2 sepa- ration. First, the coal is converted into a combustible raw gas in a gasifier under pressure and at high temperatures of 1,400 to 1,800 degrees Celsius. The gas, whose primary constituents are car- bon monoxide (CO) and hydrogen (H 2 ), is then coarsely cleaned, after which the carbon monoxide is converted into CO 2 and H 2 in a shift reactor with the help of water vapor. Next, sulfur com- pounds and CO 2 are separated out with the help of a chemical or physical scrubbing process. The CO 2 is then compressed and transported to a storage site. Separation rates of up to 95 percent are projected for this technique. All the remaining hydrogen is burned in the gas turbine, which is at- tached to an electrical generator. Siemens now has over 400,000 operating hours’ worth of experi- ence in the combustion of hydrogen-rich fuel gases at various commercial power plants. The hot flue gases, especially atmospheric nitrogen and water vapor, are also used for steam generation. In a manner similar to what occurs in a conventional combined cycle power station, the steam drives a steam turbine and a second electricity generator. of the greenhouse gas by raising the tempera- ture, after which the regenerated detergent is fed back into the absorber,” Schneider explains. “After that, the cycle begins anew.” For the past three years, Schneider and his team have been working extensively in a labo- ratory at Frankfurt Höchst Industrial Park on CO 2 detergents that bind CO 2 particularly well and release it again when temperatures are raised. “We can conduct good analyses of all the individual aspects of CO 2 scrubbing in our lab,” says Schneider. “As a result, our new chemical CO 2 scrubbing technique loses less detergent into the flue gas and also requires less energy than previous methods.” Heading for Large-Scale Applications.In order to make fossil fuel-fired power plants more climate-friendly as quickly as possible, energy supplier E.ON joined forces with Siemens to put a pilot facility for CO 2 separa- tion into operation at the Staudinger coal-fired plant near Hanau in September 2009 (see box). “The challenge is to maintain a high level of ef- ficiency and avoid negative environmental in- fluences, which might arise from traces of harmful detergent emissions in the scrubbed flue gases,” Schneider explains. “Our objective is to develop the new CO 2 separation process to the point where it’s ready for large-scale com- mercial applications by 2020.” Thanks to oxyfuel and pre and post-com- bustion capture, technologies will be available within the next decade that will allow us to burn coal without having to have a guilty envi- ronmental conscience. Ulrike Zechbauer Raw gas: CO, H 2 , etc. CO+H 2 O CO 2 +H 2 Air Coal Air separation Gasification CO Shift Cleaning CO 2 separation CO 2 compression Electricity CO 2 to store Sulfur O 2 N 2 Combined cycle power plant A CO 2 testing laboratory in Frankfurt. Here, Siemens experts investigate CO 2 separation from flue gas. The CO 2 is bound to an absorber (right) by a special scrubbing agent and thus removed. Reprinted (with updates) from Pictures of the Future | Spring 2007 87 Prof. Reinhard Hüttl, 52, is the scientific director of the Geo- Forschungs-Zentrum in Potsdam, the German Research Center for Geo- sciences. A geo scientist, Hüttl formerly worked as an environmental expert in the Council of Advisers of the German Federal Government. Interview conducted in Spring, 2007. Sequestration: A Key Transitional Technology Is underground sequestration of carbon dioxide the solution to the climate- change problem? Hüttl: We have to look at things realistically. Even if CO 2 SINK works as planned, the process chain of removal, transport, injection, and monitoring involves a great deal of effort and is still very expensive. Also, coal-fired power plants with CO 2 removal lose a considerable amount of efficiency, which must be compen- sated for with more fuel or new technologies to increase efficiency. So CO 2 sequestration is a transitional technology. But we can’t do with- out it if we want to act responsibly, because most of our power will continue to come from amount naturally generated in the same period by bacteria through degradation processes in the soil in the area above the CO 2 reservoir in Ketzin. Ideal CO 2 reservoirs exist wherever gases or liquids have long accumulated underground. That basically means all petroleum and natural gas deposits, which have manifestly been sealed for millions of years. Some oil and gas producers already pump CO 2 back into such de- posits in order to raise the yield through in- creased pressure. There are three industrial- scale showpiece projects in Canada, Algeria, and Norway. StatoilHydro of Norway, for in- stance, has the most experience here. Since 1996 it has pumped ten million tons of CO 2 down to a depth of 1,000 meters beneath the North Sea. The CO 2 is an impurity that is ex- tracted with the natural gas. But it would cost StatoilHydro dearly to vent it, as Norway levies a tax of $50 on each ton of CO 2 . Toward Affordable Sequestration. The IPCC report calculates the cost of CO 2 capture by low-CO 2 power plants and its transportation and sequestration to be 20 to 70 dollars per ton. That’s worth the price in Norway, but in countries without a CO 2 tax other market mechanisms must come into play. In Europe, the certificates in the emissions trading system provided for by the Kyoto Protocol currently cost less than 15 dollars — not enough to cre- ate an incentive. But in the event of a state sub- sidy or a CO 2 tax of two to three U.S. cents per kilowatt-hour, the technology would pay for it- self, although the cost of electricity would in- crease by 20 percent. Siemens is helping to fund the CO 2 SINK project and participating as an observer. “CO 2 sequestration won’t be one of our core areas of expertise,” says Günther Haupt of Siemens’ Fossil Power Generation division. But since the construction of coal-fired power plants is an important part of Siemens’ business and de- pends on a solution to the CO 2 problem, the company will be involved. Siemens will also play an active role in cases where hardware does not yet exist, as in the Adecos project, which is developing an oxyfuel power plant with CO 2 removal with support from the German government. Here, Siemens is designing compressors for the CO 2 that will force it underground as a gas — but with the density of a liquid. These compressors have applications in multiple fields, since they also compress CO 2 from pre- and post-combustion processes. “So far, CO 2 compressors of this kind haven’t been customized for large power plants,” says Haupt. Bernd Müller fossil fuels in the foreseeable future. Our proj- ect is therefore an important building block for a more environmentally compatible method of energy production for the coming decades. The process is already of interest for increasing yields during petroleum and natural gas ex- traction. Will the Ketzin project come to an end af- ter 60,000 tons of CO 2 have been stored? Hüttl: I don’t think so. In Ketzin we can still learn a lot about CO 2 sequestration and the short, medium, and long-term behavior of CO 2 underground. The Ketzin test site is ideal for more experiments, for instance for storing the world’s first CO 2 from a coal-fired power plant and for the underground sequestration of CO 2 separated from biomass during gas produc- tion. We also have plans for other projects in Germany and abroad. How has the public responded to the project? Hüttl: Many people, especially in Germany, are skeptical of new industrial-scale technolo- gies. But in Ketzin there used to be an under- ground natural gas storage reservoir at the same spot and people are used to that idea, so we haven’t had a problem with acceptance of this project. And of course CO 2 isn’t poisonous or radioactive. If it does escape at some point, which we don’t expect, we’ll see that with our monitoring system and, if necessary, we’ll be able to just blow it away in the air. Interview conducted by Bernd Müller. | Interview Hüttl 86 Reprinted (with updates) from Pictures of the Future | Spring 2008 Energy Efficiency | CO 2 Sequestration ground for carbon dioxide. The capacity for CO 2 sequestration in Germany alone is estimated at 30 billion tons. That’s enough for about a hun- dred years at the current rate of CO 2 emissions from German coal-fired power plants — about 350 million tons. The Intergovernmental Panel on Climate Change (IPCC) of the U.N., a scien- tific intergovernmental body, which won the Nobel Prize in 2007, estimates global seques- tration capacity to be up to 900 billion tons in oil and gas deposits and at least 1,000, possibly even 10,000 billion tons in saline aquifers, which are sandstone deposits saturated with salt water, like those found in Ketzin. These po- tential sequestration sites around the world are also often found near large CO 2 producers, where liquefied CO 2 can be easily transported in pipes to storage depots. This is the case not only in Brandenburg, but also in the U.S. state of Illinois, where a prototype CO 2 -free power plant is being tested in the Future-Gen project. The dream of a coal-fired power plant with a di- rect exhaust line into the subterranean rock could become a reality in many places around the world if policymakers quickly lay the groundwork and research efforts are intensi- fied. Studies show that CO 2 remains under- ground for an extremely long time. It will dis- solve there in saline aquifers, much as it dis- solves in mineral water when pumped by a CO 2 carbonator, and will then be retained in the pores of the sandstone. Over time, more and more of it will precipitate as a mineral com- pound and thus be kept out of the atmosphere forever. It is known that after thousands of years calcium carbonate is produced, as well as other carbonates such as magnesite and siderite. Verifying the underlying models and furnishing proof of whether and how CO 2 can be reliably sequestrated over the long term are among the central aims of the CO 2 SINK project. Underground Laboratory. One essential task of CO 2 SINK is therefore to monitor the three-di- mensional propagation of CO 2 in rock and draw conclusions applicable to commercial CO 2 se- questration at other locations. No other project anywhere is going to such great lengths to gather measurements in this respect: In the project’s two measuring pipes, which are 50 and 100 meters away from the pipe car- rying the gas, chains of electrodes measure electrical resistance in the rock. This array of electrodes is supplemented by electrodes at the surface. Concentrated salt water in the po- res of the sandstone conducts the electrical current very well. When the water is displaced by CO 2 , conductivity decreases and resistance increases. Thanks to this geoelectric tomogra- phy, the gas can be monitored in great detail in three dimensions as it spreads. The project team is also carrying out experi- ments modeled on medical ultrasound. Here, intense sound waves are transmitted into the ground from the surface between the boreho- les and reflected back. Since sound has a lower velocity in pores filled with CO 2 than in those filled with salt water, the spread of the gas can be monitored this way as well. Optical sensors measure temperature chan- ges underground through the scattering of photons and thereby show the flow of CO 2 be- low the surface. In the area of the reservoir around the bores there are narrow tubes with a semi-permeable membrane through which CO 2 can pass. High-purity argon forces the CO 2 upward through capillary tubes to the surface, where its concentration is measured. Whatever the results of the measurements, one thing is certain, says Frank Schilling: “Prac- tically nothing travels upward through the rock.” The reason for this is the cap layer of gypsum and clay that lies like a bowl over the approximately nine-square-kilometer dome of sandstone and completely seals it. It served the same purpose over the past forty years, when power companies used a sandstone layer here at a depth of between 250 and 400 meters to store natural gas. This repository was signifi- cantly larger than the planned CO 2 reservoir. What would happen if the CO 2 managed to escape to the surface? Since the gas is heavier than air, critics fear that it could collect in pools where it would suffocate all life. But there’s no risk of this in Ketzin, says Schilling. Even if it were to escape, the CO 2 would be literally gone with the wind. We breathe it in small quantities all the time, and drink it in sparkling mineral water and soft drinks. Besides, the quantity of CO 2 stored in two years will merely be equal to the Sequestration under a cap layer Sequestration in porous strata Increasingly effective sequestration Sequestration in water-bearing strata Sequestration in mineral aggregates 100 % Percentage of stored CO 2 Period of time following CO 2 sequestration (years) 0 50 % 1 10 100 1000 10,000 Impermeable cap layer Reservoir CO 2 monitoring CO 2 CO 2 800 m 700 m Power plant How Carbon Dioxide Sequestration Works In Ketzin, CO 2 is pumped through a pipe into a saline sandstone aquifer that functions as a reservoir. A second pipe is used for the transmission of shock waves, which are detected by geophones. In addition, the pipes are outfitted with other sensors that are designed to detect the electrical conductivity and temperature in the aquifer. This enables detailed monitoring of the spread of carbon dioxide far below the surface. Seismic source Vibration measurement devices (geophones) Geophones and other sensors Seismic source Shock waves Source: GeoForschungsZentrum Potsdam Reprinted (with updates) from Pictures of the Future | Fall 2009 89 New Life for Old Plants Worldwide, there are hundreds of fossil fuel-fired power plants that could, if modern- ized, improve their efficiency by 10 or even 15 percent. Such upgrades would reduce CO 2 emissions accordingly, which would be a major contribution to climate protection. The biggest potential lies in North America as well as parts of Europe and Asia. pace of modernization. “In Europe, power companies have to convert a lot of older combined-cycle power plants from base- to peak-load operation,” says Hendricks, who is responsible for so-called lifetime management and thus for power plant upgrades. The reason for the conversions is that Eu- rope is ramping up use of land-based and off- shore wind farms. When winds are strong, these farms generate lots of electricity, which means conventional plants can scale back out- put. But when winds die down, the latter have to be able to reach peak load rapidly to com- pensate for load fluctuations. The ability to re- act rapidly not only secures a power company high prices on the power market; an upgraded power plant also reaches its operating point more quickly, which cuts CO 2 emissions. Siemens is a specialist in upgrading steam turbines, a job that primarily involves replacing the rotor and the inner casing. The latest in turbine blade technology and enlarged flow areas boost the efficiency and performance of the turbine. In addition, the use of new seals in high- and intermediate-pressure turbines reduces clearance losses, which likewise in- creases efficiency. These measures lengthen the service life of the turbine, allowing it to remain in operation for an additional 15 to 20 years. As a rule, Siemens also renews the con- trol system for the turbine set or the power plant as a whole (Pictures of the Future, Spring 2009, p. 27). According to Dr. Norbert Henkel, responsible at Siemens for the modernization of fossil-fuel and nuclear power plants, it costs between €20 million and €60 million to com- prehensively upgrade a steam turbine system for a medium-sized power plant. “By modern- Upgrading and new control systems (bottom right) can boost a steam turbine’s efficiency substantially. At EnBW’s cogeneration plant in Alt bach, Germany, Siemens improved output by 11 MW. izing the turbine, we can tease an extra 30 to 40 megawatts out of the plant. As a result, the initial capital expenditure is amortized within just a few years,” he explains. Power generator Energie Baden-Württem- berg (EnBW), for example, has invested around €30 million on upgrading its cogenera- tion plant in Altbach, near Stuttgart, a meas- ure that will keep it in action for the next 30 years. Siemens renewed the plant’s control systems and upgraded its steam turbine, re- placing the blades and seals, which has made A ccording to Dr. Oliver Geden, an expert for EU climate policy at the German Institute for International and Security Affairs in Berlin, effective climate protection begins when “many people consume in an environmentally sustainable way, without having to think twice about what they’re doing.” For this to happen, says Geden, it will take huge structural changes in how we generate and consume electricity, including expanded use of renew- able energy, and more efficient conventional power plants. Significant progress has already been made in the construction of new power plants. Over the period from 1992 to the present, the effi- ciency of the latest coal-fired power plants in the industrialized West has risen from 42 to 47 percent. This amounts to a huge advance in cli - mate protection. For instance, for a 700-mega - watt (MW) generating unit, an increase in effi- ciency of five percentage points translates into a reduction in annual CO 2 emissions of around 500,000 metric tons. This is particularly impor- tant for China, where, according to the Inter- national Energy Agency, one new coal-fired power plant with an efficiency of over 44 per- cent enters commercial service ev e ry month. 88 Reprinted (with updates) from Pictures of the Future | Fall 2009 When it comes to upgrading existing power plants, however, there is still massive un- tapped potential, both in economic and envi- ronmental terms. The average efficiency of Eu- rope’s coal-fired power plants is a mere 37 to 38 percent. Only about one in 10 plants tops the 40 percent mark. That’s hardly surprising, given that steam turbines in Europe are, on average, almost 29 years old. Gas turbines, on the other hand, are usually of a more recent vintage, with an average age of just under 12 years. Nevertheless, the German Association of Energy and Water Industries (BDEW) esti- mates that around one-quarter of Germany’s power plants will need to be modernized in the immediate future. As Ralf Hendricks from Siemens Energy explains, the increasing exploitation of alter- native energy sources is also accelerating the Energy Efficiency | Power Plant Upgrades it more efficient and boosted its output by 11 MW. The entire outer casing could be retained. With around 4,000 operating hours at full load per year, the plant has benefitted from the up- grade with a reduction in its annual CO 2 emis- sions of 50,000 metric tons. As a result, the plant is now classified as one of EnBW’s “green” facilities and may, if required, rack up additional operating hours. North America’s power plants are even old- er than Europe’s, with an average of 34 years for steam turbines in the U.S. and Canada, and 17 years for gas turbines. Siemens is involved in a number of major upgrades in this area. Some of these cover more than just the tur- bines, with the company currently contracted to renew the complete control system for a number of plants, including a coal-fired facility in Carneys Point, New Jersey, a combined-cy- cle plant in Redding, California, and combined- cycle installations in Syracuse and Beaver-Falls, New York, all of which are being fitted with the SPPA-T3000 web-based instrumentation and control system. This system integrates the power plant and turbine control functions in a common, easy-to-use platform. For the opera- tors of Carneys Point, for example, this will provide greater flexibility to tailor operation of the individual generating units to actual de- mand, along with greater reliability and re- duced maintenance costs. onward, when CO 2 emission certificates in this sector will all be auctioned. Power companies will therefore have to pay for a percentage of their CO 2 emissions through the purchase of emission certificates. An exception, however, has been made for many Central and Eastern European countries, giving them until 2020 to catch up. During this time, the most efficient power plants will set the benchmark there too. Power plants meeting this standard will receive emission permits free of charge. Emissions trading will thus ensure that old power plants become in- creasingly unprofitable. And once the last inef- ficient plant has been decommissioned, each electricity consumer will have become a little bit easier on the environment — without even thinking about it. Katrin Nikolaus Boosting Output by 100 MW. In contrast to fossil-fired power plants, many of which were commissioned over the last few decades, most of the world’s nuclear plants date from the 1970s and 1980s. “The conventional compo- nents of these plants, including the turbines, all need upgrading at around the same time,” Henkel explains. Whereas most of the nuclear facilities in Germany have been almost com- pletely updated over the past 10 to 15 years, many of the plants in France, the U.S., and Japan are still in need of modernization. In 2008, Siemens was awarded the Asian Power Award for its upgrading of the Sendai nuclear power plant in Japan. Following moderniza- tion of the control systems and the three tur- bines, the output of the plant rose by 40.5 MW to 942 MW. At present, in a contract awarded by Florida Power and Light (FPL), Siemens is overhauling the generator and renewing a high-pressure turbine and two low-pressure turbines at the St. Lucie nuclear plant in Flori- da. This will increase the output of each of the two reactors by 100 MW. In addition, Siemens is installing new high-pressure turbines and modernizing the generator at FPL’s Turkey Point nuclear plant, which will boost its output by around 100 MW. With the exception of France, which generates the lion’s share of its power using nuclear plants, the energy mix in Europe still includes a major share of coal. This applies particularly to Central European coun- tries, including Poland, which meets over 90 percent of its power needs from coal. At the same time, these countries have the least-efficient power plants. In Europe, there are over 500 steam turbine plants that are old- er than 25 years and in urgent need of mod- ernization. This figure includes all the aging plants in Central Europe and is unrivaled any- where else in the world. In India, for example, where industrialization came much later, there are fewer than 50 plants of a similar vintage. China, on the other hand, still has a lot of coal- fired power plants rated at efficiency levels of between 26 and 30 percent. To cover the rap- idly-growing demand for electricity from in- dustry and households, China is currently building a raft of new power plants, 60 per- cent of which are ultramodern facilities. According to the IEA, China has been able to radically reduce construction costs for such plants, which feature extremely heat-resistant steam turbines, by building a large number of them at the same time and thus exploiting the effects of standardization. China, which tends to close unprofitable power plants rather than upgrade them, has been decommissioning around 50 GW of older fossil generating capac- ity since 1997 — a process that is due to be completed by 2010. Rewarding Efficiency. Back in Europe, pow- er companies in the western member states are rapidly upgrading their facilities. In this sector, climate protection is still largely a cor- porate affair. Unlike its stance on the automo- bile industry, the European Union is prepared to let market forces, rather than regulation, bring about power plant modernization. That said, climate expert Geden foresees a major upheaval in the power plant market from 2013 In Europe, there are over 500 steam turbine plants that now require modernization — in India, less than 50. Reprinted (with updates) from Pictures of the Future | Fall 2009 91 The heat from a coking plant can power a steam turbine that generates enough electricity for 30,000 households. heating, for example, or for generating elec- tricity. A typical CDQ facility from Siemens with a capacity of one million tons of coke per year consists of three cooling chambers — two in full operation and one on “hot stand-by.” The latter is only charged with about ten per- cent of its actual quenching capacity and is ready in case a problem occurs. Quenching is thus possible at all times, including possible maintenance periods. With CDQ, hot coke is cooled to 180 de- grees Celsius, even as 1,000 degree coke is fed into the cooling chambers from above. A circu- lating gas flows in at the bottom of the cooling chamber and absorbs the heat. The gas, now at about 800 degrees Celsius, is channeled with air back into the waste heat water boiler. Here, more than 500 kilograms of high pres- sure and high temperature steam can be pro- duced per ton of coke. Connecting a steam turbine yields 15 to 17 megawatts of generat- ing capacity. That’s equivalent to the power produced by five large wind turbines and ade- reduce costs and improve environmental pro- tection. With Selective Waste Gas Recirculation technologies, for example, waste gas pro- duced during sintering can be recirculated. In a sintering plant the ore is baked on a sinter strand, which is similar to a furnace grate. In this way, the fine ore is prepared for the blast furnace. Here, the ore is ignited on the sinter strand, and wind boxes suction off the waste operated by the world’s fourth biggest steel producer, Posco of South Korea. Siemens VAI has also developed an energy management system that focuses on a steel plant’s total energy use with a view to cutting its energy consumption, costs, and emissions. This involves taking into account the complete production process — from raw materials to final steel products. Organized to be modular, quate for the requirements of about 30,000 four-person households. What’s more, as the coke in the CDQ process is drier than wet- quenched coke, less reducing agent is con- sumed later in the blast furnace. Modernization not only saves millions in operating costs — leading to rapid amortiza- tion — but environmentally-friendly CDQ also reduces dust and gas emissions to almost zero. With conventional wet quenching, about 500 grams of dust are emitted into the atmosphere per ton of coke — frequently much more. Many CDQ systems from Siemens VAI have been operating reliably for years — for exam- ple, at an ArcelorMittal plant in Kraków, Poland, since 2000. Siemens is currently tak- ing part in a project run by SAIL, India’s biggest steel producer, which is building a facility that is scheduled to open in 2011. Sintering plants are another area in which Siemens VAI offers innovative solutions that least 16 percent and thus high enough for combustion. After that, the waste gas mixture flows into a recirculation hood installed above the sinter strand, from where it is blown back onto the sinter strand — at the most homoge- neous possible temperature and pressure. This measure lowers a sintering plant’s CO 2 emis- sions by up to ten percent; the entire volume of waste gas — which includes sulphur diox- ide, various nitrogen oxides and dust — is re- duced by 40 percent. Taken together, these steps reduce fuel requirements and thus costs. Each ton of sinter requires up to ten percent less coke and about 20 percent less ignition gas. An investment in CDQ is thus usually amortized in under two years. To date, this technology has been used at three locations worldwide: a plant operated by Austrian steel producer Voestalpine (in opera- tion since 2005); a sinter plant operated by Dragon Steel in Taiwan; and two sinter plants gases from below. “The ore burns from the top down, like in a tobacco pipe,” says Andre Ful- gencio, Product Manager for sintering plants at Siemens VAI in Linz, Austria. To allow some of the gas to be recirculated into the process, it is first fed into a chamber. Here it is mixed with waste gases from the sin- ter cooler, to ensure the oxygen content is at the system can be tailored to the customer’s specific needs, and can even be integrated into existing automation technology at very old facilities. “In the ideal scenario all you need to do is transfer and configure the software,” says Franz Hartl, who is responsible for tech - nical marketing of automation solutions at Siemens VAI in Linz. System-wide Savings. As steel mills use a very large number of processes, it is often also necessary to install additional measurement systems, for example to determine levels in tanks. Key values in terms of energy consump- tion and distribution can then be recorded every few seconds. Thanks to Siemens’ energy prediction and optimization module, the energy needed for an order can even be predicted on the basis of production planning, enabling op- erators to purchase fuels at attractive prices. “Steel producers who use the prediction func- tion are superbly equipped for negotiating prices with their energy suppliers,” says Hartl. The high degree of transparency of Siemens’ mill overview processes enables operators to predict and prevent costly load peaks by initiating load shedding — in other words, by reducing energy consumption. This can be achieved by shutting off energy-consuming equipment like furnaces when they are not needed. “Flaring” losses — the burning off of surplus gas, which later must be replaced by energy purchased at a high price — are mini- mized. In most cases the savings amount to about three percent of total energy, which is a lot of money and emissions. Given energy sav- ings of only one percent at an annual produc- tion volume of five million tons of steel, CO 2 emissions can be reduced by around 100,000 tons per year. Here, an investment in Siemens’ energy-saving solutions can pay for itself very quickly. In fact, depending on the plant, its degree of automation and annual tonnage, the investment can pay off after just a few months.Stephanie Lackerschmid Efficiency Catches Fire The economic crisis is presenting steelmakers with a major challenge. Although most producers can’t afford costly new plants, they still have to make their production processes more efficient in order to reduce costs and emissions. Siemens VAI offers innovative modernization solutions that cut costs and protect the environment. Efficient Siemens solutions, such as those for blast furnaces (large image) and electric arc furnaces for melting scrap (right), can radically reduce operating costs and emissions. mills consume 20 percent of the energy re- quired by industry and are responsible for 30 percent of industrial CO 2 emissions. Energy consumption alone accounts for about one third of a steel mill’s operating costs. This makes it possible to use energy-efficient tech- nologies to fight both the economic and the climate crisis. “Environmental protection and cost savings are not mutually exclusive,” says Olaus Ritamaki, General Manager at Siemens VAI in Oulu, Finland. “In contrast, energy-effi- cient technologies reduce operating costs and ease the strain on the environment. Red Hot Results. Among the biggest sources of flue gas emissions in integrated steel mills are coking and sintering plants. While some newer facilities use the Corex or Finex process- es developed by Siemens and can thus dis- pense with coking and sintering, many steel- works still use the traditional blast furnace method, in which pig iron is produced from iron ore using coke and sinter. To make coke, coal is heated in a coke oven to 1,000 degrees Celsius in the absence of air. Afterwards, the hot coke must be quenched. For the conventional wet quenching process, water is used. Enormous white clouds of steam are released, dust emissions and waste- water harm the environment, and the energy employed dissipates into the atmosphere. This can be prevented with the help of the coke dry-quenching process (CDQ) offered by Siemens VAI. With CDQ, the heat from the red- hot coke is used to produce steam, which in turn is available for further processes, such as T he economic crisis has hit the steel market especially hard. After several very success- ful years — driven by the boom in emerging markets — demand collapsed dramatically. In the Fall of 2008 the German steel industry, for example, recorded the sharpest decline in or- ders since the end of World War II. According to the German Federal Statistical Office, raw steel production in Germany in the first half of 2009 alone was down 43.5 percent from the level posted in the first half of 2008. In the U.S. during the same period, the World Steel Association reports, production fell by more than 51 percent. In addition, energy-intensive industries in particular are facing increasingly strict envi- ronmental regulations. According to the Inter- national Energy Agency (IEA), iron and steel Energy Efficiency | Steel Plants 90 Reprinted (with updates) from Pictures of the Future | Fall 2009 Reprinted (with updates) from Pictures of the Future | Fall 2008 93 that can significantly speed up the transport of mining products: trolley trucks. Such vehicles function like streetcars — sporting antler-like pantographs that can be raised and lowered at the press of a button. This means that the driv- er can link the truck to overhead conductors (catenaries), which are generally installed on steep slopes. “This is where conventional trucks, despite their 3,000 plus hp, can only ad- vance at a snail’s pace,” says Köllner. The cate- naries can provide the drive systems with al- most 6,000 hp. This means that the truck’s speed can almost double, and the mine opera- tors can reduce the number of expensive me- chanical giants they need to have on site. The environment benefits from trolley tech- nology too. There are no local emissions, since the diesel engine switches itself off automati- cally when contact is made with the overhead line. What’s more, the braking energy that is re- leased when a truck rolls downhill is fed back into the network via a second pair of conduc- tors. Thanks to all these benefits, the technolo- gy quickly pays for itself, says Köllner. “After no more than three years, a mine operator can re- cover the costs of buying the trolley trucks and the costs associated with the installation of the overhead lines.” Speed is king not just in terms of transporta- tion but also loading performance. That’s why monster excavators are also used in mines, alongside the giant trucks. These excavators are massive steel systems that resemble the bow of a ship and sit atop caterpillar tracks. Their grab arms look like electricity pylons and their shovels are as big as mobile homes. With just one scoop, they can move around 120 tons. It takes just four shovelfuls to fill the load that can be modulated. The converters feature particularly long-lasting circuit components that have proven their capability in rail technol- ogy. “Like mining vehicles, trains experience extreme conditions,” says Köllner. They have to be able to run at minus 40 degrees Celsius and in blistering heat. In addition, the converters’ air coolers must be extraordinarily dependable, even where air pressure is low. Digital assistants. Sophisticated control sys- tems are also vital when it comes to keeping maintenance and repair times short. For exam- compartment of a giant truck. “The process barely takes two minutes,” says Köllner. Such excavators are also powered by Siemens three-phase drives. At present, there are more than 150 such excavators in opera- tion worldwide. “We use four motors with dif- ferent outputs,” says Köllner. “The most power- ful, at 2,600 hp, lifts and lowers the excavator arm, while another moves the shovel. A third ensures that the excavator can turn and a fourth drives the caterpillar tracks.” Unlike the trucks, the excavators remain in the same place for long periods and don’t require a diesel gen- erator. Be it trucks or excavators, converters are at the heart of all three-phase current drives. These converters, which are located in outsized steel cabinets, convert current from the diesel generator or cable into three-phase current ple, thanks to these systems, the machines’ functionality can be monitored from a control center (see Pictures of the Future, Spring 2005, p. 51). “Our regional set-up and local partners can also offer rapid assistance if need be,” says Christian Dirscherl, who develops full-service solutions for mine operators at Siemens’ Indus- try Sector in Erlangen, Germany. In fact, service is due to be expanded even further. “In the fu- ture, we want to equip excavators and trucks with sensors that will enable obstacles to be detected reliably, even in very dusty condi- tions,” says Dirscherl. As is the case with road traffic, new assistance systems will increase safety and make the driver’s job easier. One day, the giant trucks may even be able to set off on their hunt for raw materials without driv- ers. “But that really is still a pipe dream,” says Dirscherl. Andrea Hoferichter interrupted and re-engaged to generate a rota- tional movement. This limits the revolutions per minute that a motor of this type can attain. And it requires more parts that need to be maintained regularly. “Our alternating current motors can deliver up to seven percent more performance from the same amount of energy, and downtimes for maintenance and repair work are rare,” says Köllner. “Generally, just one technology check a year is all that’s needed.” Giant Trucks, Zero Emissions. AC drives also form the basis for a development from Siemens H ere’s a dump truck that puts others to shame. Next to it, a man looks like a mouse. Its tires measure four meters in diame- ter. All in all, it’s as tall as a three-story building and as wide as a two-lane highway. Such su- persized trucks are hard at work around the world in the copper mines of the Andes, in the diamond mines of Zambia, and in the bitumi- nous sand pits of Canada. In their load com- partments, each the size of a swimming pool, Monster Drives At open pit mines all over the world, mechanical mon- sters are hard at work. They dig for bituminous sand, for example, or transport tons of copper ore. By equipping the giant excavators and trucks with state-of-the-art, ultra-efficient electrical drive systems, Siemens helps its customers to save energy, time, and money. Excavators can lift up to 120 tons per scoop. Trucks move up to 400 tons per trip. Catenaries (right) make transport quicker and more economical, while reducing emissions. Energy Efficiency | Mining Electrification 92 Reprinted (with updates) from Pictures of the Future | Fall 2008 shares responsibility for marketing, are helping to ensure that this is the case. The motors, which are positioned on the rear wheels, can accelerate the dump trucks to 60 kilometers per hour as well as brake them. This is no mean feat, since the trucks weigh around 200 tons each — about the same as 130 mid-range cars. Once the trucks are fully loaded, the drives need to move up to 600 tons through sand, mud, and deep holes, as well as over steep hills. Electricity, not Diesel. A 3,000 hp diesel en- gine generates the current. So why doesn’t it just propel the truck too? “The reason is simple. It’s just not worth putting the engine and gears of a car onto the slopes of a mine. A gearbox powerful enough to handle the workload re- quired of these trucks would be enormous, and would also need a lot of maintenance,” says Köllner, explaining the drawbacks of purely mechanical propulsion. Not only do the trucks dispense with gear- boxes. Thanks to their electric drive systems, they also do without clutches and brake disks in normal operation. Electrical resistors are used to brake the vehicles, and speed can be steplessly adjusted via three-phase current fre- quency. “Such trucks are essentially driven like a car with an automatic gearbox,” says Köllner, who is an engineer and has actually driven one of the behemoths. For over 30 years now, Siemens has been using three-phase current drives for mining ve- hicles. “The rotating electric field can be trans- formed directly into mechanical rotation,” says Köllner. Some manufacturers, on the other hand, still prefer DC drive systems. In such mo- tors, however, the current has to be constantly they haul raw materials to collecting points, sorting plants, and washing plants. These trucks may be massive, but they’re not mass-produced. After all, they cost up to €2 million each. “It is crucial that these machines be used as efficiently as possible and experi- ence an absolute minimum of down time,” says Walter Köllner from Siemens Energy & Automa- tion in Atlanta, Georgia. The trucks’ three- phase current drive systems, which Köllner also Thanks to catenaries and three-phase current drives, giant trucks can achieve outputs of up to 6,000 hp. Reprinted (with updates) from Pictures of the Future | Fall 2009 95 Another measure involves the provision of heat and hot water using biomass, which can cover all requirements in the summer and serve as a supplementary energy source in the winter. Installation costs for such a system would total approximately $3.5 million, while energy savings would add up to almost $500,000 per year, with an associated CO 2 re- duction of around 7,000 tons p.a. After conducting a detailed analysis of the proposals, the Denver International Airport op- erating company will decide which measures it will implement, and at which times. The fact is that airports need to take steps to increase their energy efficiency, since their complex infrastructures make them major en- ergy consumers. After all, thousands of air- ports around the world are used by billions of passengers and airport employees every year. In addition, studies conducted by the Airports Council International (ACI), the International Air Transport Association (IATA), and the Interna- mass/biogas, geothermal sources, and fuel cells. “Here, decisions have to be made based on individual circumstances,” says Karl. Den- ver’s airport covers almost 140 square kilome- ters, for example, making it by far the largest in the U.S. in terms of area; so it makes sense to consider the use of biomass/biogas and wind energy.” The Siemens study thus proposes such measures as well. The third area focuses on solutions in the fields of power generation, alternative energy, baggage and freight logistics, IT services, and building technologies. The goal here is to man- age the many energy-hungry systems in use with the help of intelligent IT solutions aligned with airport processes, and to regularly moni- tor and compare energy consumption over How to Exploit Savings Potential.Siemens Building Technologies is also active as an en- ergy manager in Germany, at Münster/Osna - brück Airport and also at Stuttgart Airport. Here in the Southern German Airport, BT is responsi- ble for efficient energy management on the basis of values calculated from the counting pulses of roughly 500 water meters and 400 heat and cooling meters. The set-points as well as the controller settings from the automation and field level are also documented and processed by the airport’s energy management system. In addition to monthly, quarterly, and yearly reports, hourly values also play a key role in assessing the efficiency of the systems. The program for analyzing the energy data com- pares current values with the building’s numer- ical model. Energy savings of up to 40 percent can thus be achieved. These examples illustrate how major energy savings can be achieved through smart mod- ernization and optimization. At the same time, more pleasant temperatures and lighting plus better air quality make the time spent at airports more comfortable. In new buildings, the energy required for heating and air conditioning can be reduced by up to 40 percent just through architectural meas ures and new insulation and ventilation concepts. CO 2 emissions can be reduced by 70 percent or even more if alternative energy sources, such as wind, solar, and hydroelectric are used to generate the required energy, if geothermal energy, biomass and biogas, and cogeneration are used, if equipment is replaced with devices that use little energy, and if this equipment is operated only on an as needed basis. “A lot can be achieved if you look at an air- port and its complex infrastructure from a ho- listic perspective,” says Karl. Siemens can serve as a single source for all the required services and solutions needed by airport authorities from its various Groups. This brings the green, i.e. CO 2 -free, airport almost within reach, which is the stated goal of Airports Council Interna- tional (ACI), an international association of air- port operators with 567 members operating in more than 1,650 airports in 176 countries. “If the political and public environment de- manded it, CO 2 -neutral airports could already be in operation today. Even the CO 2 -free air- port does not have to remain a vision if we take advantage of all the opportunities available to us,” says Karl. Gitta Rohling tional Civil Aviation Organization (ICAO) show that passenger volumes are rising at a consis- tent average rate of between 3.5 and 5.8 per- cent per year. IT Solution for Energy-Hungry Systems. “Our energy-saving measures are implemented in three areas,” says Karl. The first area involves finding out which devices can be turned off or modernized, as old machines are often the big - gest energy wasters. It therefore makes sense at any airport to use energy-saving lamps that operate in accordance with ambient light con- ditions and utilization requirements. “In many cases you’re dealing with just one main switch for all the lights,” says Karl. “But if you optimize lighting systems to function in line with ambi- ent light conditions and the utilization of spe- cific areas, you can cut costs substantially.” The second area addresses the use of re- newable energy sources such as wind, bio- time. In order that the Airport Denver is able to finance these energy-saving solutions, Siemens offers beside its comprehensive expertise also an energy performance contracting. With this form of financing, the vendor contractually guarantees the savings, decides which meas- ures will be implemented, and finances them. In return, the saved energy costs are paid to the vendor until its expenses for financing, plan- ning, and monitoring are paid in full. With energy performance contracting, the customer doesn’t have to spend any of its own money, but benefits from the savings once the investment has been paid off. Two other Airports in the U.S. are already using the advantages of this contracting. While the Airport Detroit has been reduced its total energy-costs about 23 percent per year, the Airport Seattle has lowed its energy-consump- tion about four percent and its natural gas load about eight percent. Flight from Carbon Dioxide Rising energy prices, growing environmental awareness, and increasingly stringent legal requirements are forcing airports to sustainably reduce their energy consumption. Solutions from Siemens demonstrate the kinds of energy savings that are possible if complex airport infrastructures are looked at holistically. Siemens already serves as an energy manager at many airports in the U.S. and Germany. Siemens is developing measures to save energy for Denver Airport (below). Thanks to Siemens technologies, Stuttgart Airport (right) has already cut its energy bill by around 40 percent. into account the impact the proposed meas- ures would have on the environment, operat- ing capacity, and passenger comfort. The study produced a total of 26 proposals, the most effective of which involve measures that would address heating, cooling, ventila- tion, lighting, and baggage transport systems, which together account for more than 80 per- cent of total energy consumption. “Naturally, airports are looking to achieve extensive sav- ings in terms of not only costs but also energy consumption and carbon dioxide emissions — and to do so as simply as possible and at a low level of investment,” says Uwe Karl, head of Air- port Solutions at BT. There are also more ex- pensive measures, such as the use of alterna- tive energy generation systems that would immediately result in a high CO 2 reduction but would pay for themselves only after a long pe- riod. To help the airport operator with its deci- sions, the study lists the cost of each individual measure, as well as the associated energy re- duction and its amortization period. A good example of how to achieve a major effect at relatively low cost is offered by sys- tems that control terminal ventilation in line with utilization. The installation of these sys- tems, which employ CO 2 sensors and intelligent ventilation control units, would cost $215,000 — but would lead to annual energy-cost sav- ings of $425,000. Such an investment would thus pays for itself after only six months. An- other relatively simple way to save energy is to install energy-saving lamps and LED lighting systems. Lights in the passenger terminal at Denver International are left on 18 hours per day; those in the parking garages and on the runways and apron burn even longer. Use of energy-efficient lighting systems could reduce electricity consumption by more than 11 mil- lion kWh per year, which, given the U.S. energy mix, corresponds to around 10,000 tons of CO 2 . D enver International Airport is a majestic fa- cility. The roof of its passenger terminal is adorned with 34 pinnacles made of translucent Teflon as a tribute to the nearby Rocky Moun- tains. With 51 million passengers in 2008, the airport is one of the world’s busiest. Its com- plex infrastructure also makes it a huge con- sumer of energy, as it required 216 million kilo- watt-hours (kWh) of electricity in 2007, or more than four kWh per passenger. In early 2008, the airport’s operating com- pany therefore asked Siemens’ Building Tech- nologies (BT) division to draw up concepts de- signed to cut airport energy use. In mid-2009 BT released a study offering optimization pro- posals aimed at reducing the airport’s overall natural gas demand by ten percent and kWh consumption by 12 percent. For its study, BT examined the terminal, waiting halls, and of- fice and equipment buildings. Along with en- ergy-saving considerations, the study also took Energy Efficiency | Airports 94 Reprinted (with updates) from Pictures of the Future | Fall 2009 Energy-saving lamps alone would save Denver International more than 11 million kWh per year. Reprinted (with updates) from Pictures of the Future | Fall 2008 97 Nature is their Model State-of-the-art technology is making it possible to reduce energy consump- tion in buildings by up to 30 percent. Four buildings — in New York, Malmö, Madrid, and Sydney — demonstrate what can be achieved for people and the environment when sensors, special materials, energy supply systems, and information technology interact in an optimal manner. Free-climber Alain Robert scaled the NY Times Building as a protest against climate change — yet the building uses 30 percent less energy than its neighbors. B ack in June, 2008 Alain Robert climbed the facade of the new headquarters of the New York Times Company to call attention to the problem of global warming. Ironically, the building on which he chose to unfurl a banner with a message about climate protection was designed precisely to address that issue. In fact, the 52-story building in Manhattan scaled by Robert, who is also known as “Spider- man,” offers an impressive example of how modern technology can be employed to con- serve energy and cut CO 2 emissions without sacrificing comfort. The New York Times Build- ing (NYTB), which opened in November 2007, uses up to 30 percent less energy than conven- tional office high-rises. Designed by star archi- tect Renzo Piano, the building has an unusual ultra-clear glass facade that allows neighbors to not only look into the interior, but also all the way through to the other side. The design al- lows passersby to look right through the lobby and into a garden featuring birch trees and moss. It’s like an oasis in the middle of Manhat- tan, one that symbolizes a key principle behind the building — to conserve energy with the help of, and in harmony with, nature. Glass skyscrapers normally waste a lot of energy because they collect heat like a green- house and then use air conditioning to keep themselves cool. But the NYTB is different. It has a second facade made of ceramic rods that extends from the ground floor to the roof and keeps out direct light. A shading system is pro- grammed to use the position of the sun and in- puts from an extensive sensor network to raise and lower shades, either blocking extreme light to reduce glare or allowing light to enter at times of less direct sunlight. The shading sys- tem works in tandem with a first-of-its-kind lighting system that maximizes use of natural light so that electric lighting is used only as a supplement. Each of the more than 18,000 electrical ballasts in the lighting system con- tains a computer chip that allows it to be con- trolled individually. The Times Company is also able to use free- air cooling, meaning that on a cool morning, air from the outside can be brought into the building. Everyone knows it makes sense to air out your home in the morning on hot summer days — but it takes high-tech systems to achieve the same practical results in a building as big as the NYTB. The task is enormously complex. Interior temperature, outside temper- ature, the building’s configuration, the angle of the sun, and the electrical and heat output of the in-house gas-fired combined-heat-and power generation systems are just a small sam- ple of the many variables that have to be moni- tored to ensure efficient use of energy in such a skyscraper. No building superintendent could ever make decisions on the basis of so much in- formation. But in The New York Times Building these decisions are made by a building man- agement system from Siemens that automati- cally monitors and controls the air condition- ing, water cooling, heating, fire alarm, and generation systems. The building management system seam- lessly integrates equipment from other manu- facturers, which can then be operated by means of a centralized control interface. Build- ing technicians are provided with real time in- formation via an extensive network of hun- | Efficient Buildings 96 Reprinted (with updates) from Pictures of the Future | Fall 2008 Groundswell of Support for More Efficient Buildings A lmost 40 percent of the world’s energy is used by buildings. According to the German Energy Agency (DENA), potential savings of 30 percent are possible for heat and 15 percent for electric power. A study by the German Federal Environment Agency has even calculated that by thoroughly renovating and insulating walls and cellar ceilings in old buildings, and installing double glazed windows, savings of 56 percent could be made in terms of heating energy (see Pictures of the Future, Spring 2007, p. 86). T he global market for heating, ventilation, and air conditioning products is estimated at around €80 billion, according to the German Federal Ministry for the Environ- ment, Nature Conservation and Reactor Safety and the German Institute for Economic Research (DIW); it is also growing at five percent per year. Future improvements here will come from optimizing existing technologies, such as new types of coolants, and better control and process technology, using sensors and other technolo- gies. Demand for efficient building systems is growing, primarily as a result of stricter legal requirements and en- ergy efficiency campaigns. Of China’s 40 billion square meters of residential and usable floor space, some 16 bil- lion is accounted for by residential buildings within cities. By 2010, the government plans to invest around $400 bil- lion in energy efficiency improvements for buildings. Im- provements will be documented in an effort to ensure that only energy-efficient construction plans are ap- proved. This is an important step, since China’s expendi- tures for new construction are expected to increase by 9.2 percent a year until 2010 according to the latest fore- cast by Freedonia. “Thanks to the introduction of energy use standards for new buildings, we have already saved five million tons of coal between January and October 2007 alone,” says Xie-Zhen Hua, Deputy Director of the National Development and Reform Commission. In the U.S., energy efficiency is growing in impor- tance, particularly in public buildings, even though a study by McGraw Hill Construction in 2007 revealed that the proportion of “green buildings” in the U.S. is still only 0.3 percent of residential real estate. The annual in- creases of 20 to 30 per- cent are, however, signifi- cant. By the end of 2007, 4,100 buildings and facto- ries had acquired the “En- ergy Star” label for energy efficiency, 1,400 of them in 2007 alone. In Califor- nia, the Building Regula- tions Committee passed the “California Green Building Standards Code” at the end of July 2008. It contains guidelines aimed at pushing building energy consumption 15 percent below the val- ues that are being achieved by current binding energy ef- ficiency standards. The directive is set to become manda- tory for residential buildings in 2010. Europe has various initiatives, such as the “20-20-20 by 2020” motto. This means that by 2020, greenhouse gas emissions are to be reduced by 20 percent compared to 1990, the proportion of renewable energies increased to 20 percent and energy efficiency increased by 20 per- cent. Another European initiative is the voluntary Green- Building program, which has been in place since 2005. Its aim is to improve the energy efficiency of non-residential buildings, such as offices, schools or industrial premises, by helping property owners modernize their buildings. In the context of energy-saving contracting, such in- vestments can pay for themselves out of contractually- agreed savings within a defined period. According to the Berlin Energy Agency, energy costs and carbon dioxide emissions can be cut by an average of up to 30 percent in this way. “Across Germany, efficiency contracting will cut en- ergy costs by some €800 million and carbon dioxide emissions by 4.5 million tons each year,” says Michael Geißler, Executive Manager of the Berlin Energy Agency. By 2010, the agency anticipates the market volume for contracting to reach €4 billion a year. Contracting providers such as Siemens can exploit significant growth potential here, since only around ten percent of the mar- ket is being tapped. Sylvia Trage Energy Efficiency | Facts and Forecasts 1990 1995 2000 2005 Space heating 0 2 4 6 8 10 12 14 16 Exajoules Domestic appliances Hot water Lighting Cooking 1990 2005 0 10 20 30 40 50 60 70 80 90 100 58 16 17 4 5 53 21 16 5 5 Percent Source: Study: “Worldwide Trends in Energy Use and Efficiency”, IEA (2008) IEA 19: Association of 19 industrialized nations incl. Germany, France, UK, U.S. and Japan. Source: Germany Energy Agency Without insulation With insulation Roof 12,120 kWh/year Windows 4,700 kWh/year Ground/cellar 1,764 kWh/year Walls 10,100 kWh/year Roof 3,000 kWh/year Windows 2,520 kWh/year Ground/cellar 714 kWh/year Walls 2,900 kWh/year Other 60% Buildings 40% Residential buildings 65% Non-residential buildings 35% Other process heat 15% Space heat 46% Hot water 10% Ventilation, air conditioning 23% Lighting 6% Source: Siemens AG Household Energy Consumption in 19 Industrialized Nations Energy Consumption in Non- Residential Buildings Heating Losses for a Typical Home with and without Insulation Reprinted (with updates) from Pictures of the Future | Fall 2008 99 made them appealing in 2005. Back then, the owners of the Turning Torso may not have real- ized they would become pioneers in lighting systems for buildings. Minimizing Resource Consumption. The fact that impressive aesthetics and energy effi- ciency needn’t be mutually exclusive is also demonstrated by the 30 The Bond office com- plex in Sydney — the first building in Australia to receive five stars from the Australian Build- ing Greenhouse Rating Scheme (ABGR). This stringent certification system was introduced by the government of New South Wales to en- courage building owners to use state-of-the-art technology to minimize resource consumption. The highest rating is issued to buildings that operate with a carbon footprint that falls below a set benchmark. Greenhouse gas emissions at 30 The Bond, which was completed in 2004, are around 30 percent lower than in similar buildings. Those who visit it generally don’t re- alize at first that they’re in an office building, as there is a café located in an eight-story atrium whose huge size helps to cool the structure. The back wall is made entirely of sandstone, and the roof features a small garden right in the middle of the Australian metropolis. Depending on the weather, the garden is watered by a timed, drip irrigation system at night, so the upper floors take longer to heat up in the morning. Sixty percent of all worksta- tions have a clear view outside, making the building a part of its natural surroundings. As with similar buildings in New York and Madrid, intelligent building management tech- nologies from Siemens integrate various systems at 30 The Bond, including those for heating, air conditioning, energy and water supply, fire protection, and lighting. Several of the energy conservation s trategies are also similar. Syd- ney’s 30 The Bond is divided into 80 zones that can be controlled individually, with only those parts of the building that are actually in use be- ing illuminated, cooled, and ventilated. There are also CO 2 sensors for measuring air quality in the conference rooms. The system channels fresh air into a room only if people are present. Completely new for Australia at the time the 30 The Bond building opened was the method used for cooling it. Instead of passing cold air directly into the office space, the system pumps chilled water through passive chilled beams (or radiators) mounted in ceilings. Chilled beams cool the space below by acting as a heat sink for naturally-rising warm air. Once cooled, the air drops back to the floor where the cycle begins again. Says Lynden Clark, who was responsible for engineering the Siemens solution at 30 The Bond: “When it comes to such ambitious proj- ects Siemens is an enabler helping customers to achieve their individual goals, whereby we decide on a case-by-case basis which technolo- gies are most suitable for a given situation.” It’s no coincidence that in many cases the solutions are based on the same principle as that applied in New York, Madrid, and Sydney, which calls for more extensively exploiting the surroundings of the buildings, the natural heat or cold, and the light of the sun. After all, na- ture opens up all kinds of opportunities for liv- ing and working in harmony with it in modern high-tech buildings — and intelligent building technology makes it possible to seize these op- portunities. Andreas Kleinschmidt A garden in the NY Times Building (left) boosts moti- vation while networked sensors cut power consump- tion. Malmö`s Turning Torso (below) and Sydney’s 30 The Bond (right) also save lots of energy. Energy Efficiency | Efficient Buildings 98 Reprinted (with updates) from Pictures of the Future | Fall 2008 dreds of sensors, including those for monitor- ing temperature, which are distributed throughout the building. While all functions can be regulated from a central control room, this usually isn’t necessary because all it takes is a few commands to get the systems to auto- matically adjust themselves to conditions on any day. Whether it’s a hot, humid work day, or a cold and dry holiday when only a few offices are being used — the goal is always to save en- ergy by ensuring that as few systems as possi- ble are in operation, without diminishing com- fort in any way. building management system from Siemens — will in the future help ensure that the most de- manding tenant requirements are met while using as little energy as possible. All relevant information — from lighting and air conditioning to heating systems, for ex- ample — will be available on control panels lo- cated throughout the building, thus helping to ensure smooth operations. Stability will also be maintained in the event of a failure of individ- ual systems or in case the central control room itself is damaged. If a fire breaks out, for exam- ple, ventilation dampers would still automati- port heat down to the lower floors. Instead of heating the ground floor at the same time that the air conditioning is running in the top floor, the building automatically regulates itself to ensure energy efficiency. The intelligent control panels are also very efficient, consuming around 15 percent less energy than conventional units, says Margarita Izquierdo of Siemens Building Technologies, who is responsible for Energy & Environmental Solutions. Izquierdo helped her Siemens col- leagues on the Torre de Cristal project to opti- mize energy efficiency in all areas. “The Torre de Cristal is truly avant-garde for Spain,” says Izquierdo. “Solutions for energy efficiency in buildings are in many respects still in their in- fancy here, which is why I’m convinced this project will serve as a model in many ways.” LED Lighthouse. Another energy-saving building is the 190-meter Turning Torso in Malmö, Sweden, which was completed in 2005. The building’s ambitious architectural style led the New York Museum of Modern Art to induct it into its Hall of Fame of the world’s 25 most fascinating skyscrapers. Light is one of its design key elements, with LEDs used to flood the corridors in symmetrical white light. “Other solutions like fluorescent lights would have created unattractive shadows,” says Jørn Brinkmann, who coordinated the installation of some 16,000 LEDs for Siemens’ Osram sub- sidiary in what was the first mass architectural application of such technology. When the Turn- ing Torso was built, LEDs consumed about as much energy as fluorescent tubes — but today they use around a third less energy for the same output. But it was their long service life that If part of the building is not in use, the building manage- ment system will shut down its light and ventilation. “Nobody benefits from cooling an empty of- fice in the evening,” says Gary Marciniak, Ac- count Executive at Siemens Building Technolo- gies.“That’s obvious,” he adds. “But other factors are less apparent. For example, sometimes it’s more efficient to have one of two water pumps operating at full capacity, while at other times the greatest efficiency is achieved by letting them both run.” The system itself recognizes and automatically exploits such situations in order to maximize resource conservation. Crystal Tower. Similar technologies are being used in the Torre de Cristal skyscraper in Madrid’s Fuencarral-El Pardo district, one of Spain’s prime locations. The second tallest building in the country, the Torre de Cristal has benefited from a Siemens fire protection sys- tem. In addition, “Desigo” — an integrated cally close throughout the building to prevent smoke from spreading. The control panels will also use information from sensors to regulate air flows and thus the temperature of individ- ual sectors of the building. If part of the build- ing is not in use, its light and ventilation sys- tems will be shut down. Individual control units will be networked and will constantly exchange information on conditions in their sectors, thus providing a real time overview of all building conditions and processes. Automated control procedures can then be used to make continual adjustments to enable optimal energy utilization. If, for exam- ple, the system finds that the upper floors are warmer than the lower ones, it will cool things off by automatically sending cold water to the upper floors through high-pressure pipes. Warmer water from the top floors can trans- Reprinted (with updates) from Pictures of the Future | Fall 2008 101 When Buildings Come to Life Sensors are set to give buildings a spectrum of information — and scientists at Siemens are working on combining many of their functions on a single chip. 100 Reprinted (with updates) from Pictures of the Future | Fall 2008 A t Siemens Corporate Technology in Munich, Germany, when physicist Rainer Strzoda enters his work area and wants to find out if the climate control system is working properly, all he needs to do is take a look at a small device on the wall. Today, the prototype laser- optic sensor developed by Siemens scientists reads 400 ppm CO 2 . “That’s a good value when you consider that our atmosphere currently contains 380 ppm CO 2 ,” says Strzoda. “This means the room contains only a little more carbon dioxide than the outside environment.” As the day pro- gresses, and Strzoda and his colleagues work on their inventions and discuss their results, the CO 2 reading slowly climbs to around 600–700 ppm — solely because the scientists are breathing. Strzoda and his colleagues actually have it good. The air in most of the world’s offices and conference rooms has a CO 2 content in excess of 1,000 ppm, the level at which people begin to feel uncomfortable and become tired and unfocused. Most buildings still don’t have CO 2 sensors — but this will soon change, according to Dr. Maximilian Fleischer, who heads Str- zoda’s research group. His team has produced many sensor-related inventions that have re- Energy Efficiency | Intelligent Sensors sulted in new products from Siemens. With around 160 patents to his name, Fleischer is one of Siemens’ most productive inventors (see Pictures of the Future,Fall 2004, p. 81, and Fall 2006, p. 58). Sensors for measuring light and tempera- ture are widely used today. Gas sensors — micro electrical-mechanical systems (MEMS) made of silicon chips and an oxidizing layer — are a relatively new development, however. These laser-optic sensors are still in the early stages of their development, and it will be some time before they hit the market. In contrast, the gallium oxide sensor — Fleischer’s career breakthrough invention — has been measuring the CO content of exhaust gas in thousands of small firing systems for years, thereby making it possible to optimize their energy output and emissions. In a completely different area of develop- ment, a new sensor from Siemens’ research labs that measures alcohol content in a per- son’s breath may soon go into production, and Sweden has announced that it plans to be- come the first country to combine it with a ve- hicle immobilizer to prevent intoxicated people from driving. This technology, which has been licensed from Siemens, can also be used in trains, streetcars, and in connection with po- tentially dangerous machinery. Big Savings from Tiny Sensors. Until now, sensors were rarely used in buildings because they were too expensive and too difficult to in- stall and maintain. But recent advances in de- veloping silicon-based sensor chips equipped with their own power source and radio module have caught the attention of building opera- As soon as wireless-capable sensor chips can be produced cheaply, it will become feasi- ble to link thousands of them in a finely woven infrastructure in buildings. “We will eventually be able to use sensors to imitate nature,” pre- dicts Ahmed. Just as our senses and nerves constantly supply our brains with information that allows us to make decisions, processors in building management systems will be used to receive and process data from thousands of Gas Detectives.In their labs, Fleischer and his team are already developing sensors that can monitor air quality in buildings. “To accomplish this, we need a chip that can measure at least four parameters: temperature, humidity, gases like CO 2 , and odors,” says Fleischer. To this end, he and his coworkers are studying detector ma- terials to determine which reacts best with the gases to be detected. In a cathode sputtering facility characterized by a mysterious blue- Kerstin Wiesner (left) tests the sensitivity of gas sensors, one of many sensor types being studied by Maximilian Fleischer (right). Bottom: Tempering metal films. Sensors were long considered too expensive for building systems. Research, however, is making them smaller, cheaper, and more flexible — such as Siemens’ CO 2 measurement sensor (bottom left). tors. That’s because such sensors can yield big savings. Intechno Consulting estimates that the global annual market for gas sensor sys- tems will be roughly € 2.9 billion in 2010. Sensors play a key role in all scenarios in- volving the future of building system technolo- gies. “Houses will no longer be empty shells; they will be intelligent systems that communi- cate with their occupants,” says Dr. Osman Ahmed, who heads an innovation team at Siemens Building Technology in Buffalo Grove, Illinois. sensors, and then issue appropriate commands to a variety of subsystems. Combined with user information, building management systems will be able to perform many new services. Building users will be able to inform such systems about when they will be arriving, which security mechanisms have to be used, and which rooms to ventilate. A vari- ety of sensors will ensure that management systems always know when a toilet is in need of repair, where a corrosive substance has been released, or where people have gathered. Office buildings will become intelligent systems that communicate with their users. Energy Efficiency | Intelligent Sensors Reprinted (with updates) from Pictures of the Future | Fall 2007 103102 Reprinted (with updates) from Pictures of the Future | Fall 2008 glowing plasma, the researchers are producing sensor surfaces only a few millionths of a me- ter thick. And next door, in a related experi- ment, a small device that uses a type of screen printing technique to detect gases is being studied. Which procedure is more suitable for gas detection depends on the materials in question. The researchers place the desired combinations of the tiny oxidation surfaces they produce side-by-side on field effect tran- sistors (FETs) in a chip. Examples include a bar- ium titanate-copper oxide-mixed oxide combi- nation for detecting CO 2 , and a gallium oxide with finely distributed platinum for detecting odors. The substances being investigated in Flei - scher’s lab don’t dock directly on a chip’s sur- face, but flow as if through a tunnel between a molecular capturing layer and the actual FET structure, causing a change in electrical resis - tance that the chip can read and convert into signals. If the chip is equipped with a radio module, it can wirelessly send the data to a building management system’s control units. Although Ahmed’s vision of tomorrow’s buildings may still seem like a stretch, initial steps in that direction have already been taken. “Comfort demands are increasing,” says An- dreas Haas of Siemens Building Technologies in Switzerland. He believes trends in building technologies will parallel those in cars, for which sophisticated climate control systems are now standard. However, building operators are most inter- ested in the savings potential that sensor sys- tems offer. After all, sensor cost a lot less than renovating a building and, when combined with state-of-the-art optimized building au- tomation, can produce even greater savings. Haas estimates that precise room climate sen- sors, and air quality and presence sensors can reduce the energy used for heating, ventila- tion, air conditioning, and lighting by 30 per- cent compared to a building with conventional automation technology. Comfort is also affected by odors. “Rooms are often aired out only because they smell un- pleasant,” says Fleischer. This needn’t be the case, since ambient air can be cleaned using ozone, which bonds to odor-producing mole- cules and neutralizes them by splitting them. This is why Siemens researchers are developing gas sensors that can recognize typical room odors. The researchers have used 18 different gases, such as ethane, propene, and acetone to produce model odors. Hexanal, for example, is used for tests of sensors designed to detect odors in carpets. The scientists are also work- ing on developing long-lasting odor sensors. “This kind of sensor needs to function for at least ten years if it’s going to attract interest on the market,” says Fleischer. If such a sensor re- ports a bad odor in the air to the control sys- tem, the latter will issue a command to release ozone. The subsequent concentration of ozone can in turn be monitored by another type of This requirement also applies to fire alarms, of course, most of which still react optically to the presence of smoke. “But that might be too late for people near the source of a fire who have already inhaled a toxic gas,” says Fleischer. This is why building operators are interested in acquiring devices that detect the specific gases typically associated with flames. Such devices would be activated long before enough smoke could be produced to set off a conventional alarm. Such detectors — especially if combined with sensors for automated climate control — are at the top of building operators’ wish lists. Universal Experts. Siemens engineers are also working on non-chip sensors such as laser- optic devices that can remotely determine toxins, with chemical sensors you have to know in advance which harmful substance you want to test for. More importantly, living sensors could be used in green buildings that save energy by set- ting up as many closed cycles as possible, for water and air, for example. “Highly sensitive early warning systems are critical here,” says Fleischer. Looking further ahead, Ahmed adds, “One day we’re going to have buildings that don’t require any energy from outside. We’re going to need a lot of intelligent products to get there, and multifunctional sensors are an important piece of this puzzle.” Whatever the future has in store, Siemens scientists have al- ready done a lot to take us a step closer to this vision. Katrin Nikolaus measure water quality. “We mount these cells on chips, expose them to toxins, and then ob- serve the types of reactions that result,” she ex- plains. At present she’s examining how the skeletal muscle cells of rats react to various waste water samples. Such living sensors offer tremendous advantages over chemical-based sensors because, while living cells react to all Indoor climate sensors and optimized automation can significantly lower a building’s energy consumption. sensor in order to prevent negative side effects, such as respiratory tract irritation. One of the main challenges in the develop- ment of gas sensors is the question of cross- sensitivities. That’s because, if false alarms are to be avoided, the detecting material on a chip must respond only to the substance being searched for. where most of a gas in a room is concentrated. Just down the hall from the laser-optic sensor lab, doctoral student Rebekka Kubisch is work- ing with petri dishes full of a red fluid. The dishes are being used to grow cell cultures for “living” sensors that can do things such as Doctoral student Rebekka Kubisch measures the acidification, impedance, and respiration rate of cell sensors (left) at Siemens Corporate Technology in Munich. A new universal detector (right). Unlike chemical sensors, cell culture sensors react to a spectrum of toxins. Light-Emitting Developments Cutting energy consumption, banishing pollutants, and boosting lamp service life — that’s the mission of Osram’s lamp developers. Just around the corner: Bright, white LEDs with a service life of 90,000 hours. | Lighting L ight emitting diodes (LEDs) are as small as motes of dust — but they’re giants when it comes to environmental friendliness. Not only do white LEDs require only one-fifth the power used by traditional light bulbs; but they last about 50 times longer. What’s more, unlike conventional energy-saving lamps, they are mercury-free. In fact, the white LED success story has been in the making for years (Pictures of the Future, Spring 2007, p. 34). Offering 1,000 lumens, which is brighter than a 50-watt halogen lamp, the star in the Another important factor when it comes to producing efficient LEDs involves the yellow and orange-red colorants that are applied to the original light source in layers in order to transform the LED chips’ blue light into white. Osram researcher Dr. Martin Zachau is an ex- pert in this field. He and his team use colorant grain size to control the dispersion properties of the particles, which allows them to vary emitted light. Efficiency is optimized via chemi- cal composition. The stability of the phosphor is increased by means of a protective coating. LED firmament is undoubtedly “Ostar Lighting.” With its efficiency of about 70 lumens per watt, it literally relegates incandescent bulbs (15 lm/W) to the shadows. The lamp contains six high-efficiency LED chips, each measuring one square millimeter. “With Ostar, we have created a very large illuminated area,” says project leader Dr. Steffen Köhler from Osram Opto Semiconductors in Regensburg, Germany, a subsidiary of Osram, a Siemens company. In contrast to the trend toward miniaturization in the electronics industry, LEDs for general light- ing should be as big as possible, so that they can supply large amounts of light. Achieving this goal is anything but an easy matter, though. It’s important to bear in mind that LEDs are a combination of differently doped semiconductor crystals. In other words, dopant atoms have been introduced to the crystal lattices, which have to be pure and reg- ularly structured at the atomic level. The larger the crystals are, however, the higher is the probability that impurities and irregularities will occur. And the greater the number of im- purities, the less efficient the conversion of electrical energy into light. Nevertheless, Köh- ler is confident that even more efficient and bigger chips can be produced. “We know that 2,000 lumens is a feasible goal,“ he says. Nevertheless, LEDs still do not accurately re- produce natural colors. That’s because, unlike sunlight or light from incandescent bulbs, they produce only blue and yellow wavelengths. With this in mind, Zachau’s team has come up with a new system that will transform parts of the blue LED light not only into yellow, but also into green and red light. “As a result, the LED spectrum will be complete — like sunlight — and colors will be superbly reproduced,” Zachau explains. To accelerate phosphor development, Dr. Ute Liepold of Siemens Corporate Technology in Munich relies on combinatorial chemistry (Pictures of the Future, Spring 2003, p. 26). To that end, Liepold uses a perforated metal sheet about the size of a postcard. The sheet holds as many as 96 crucibles containing mixtures of powders, which create new phosphors when heated in an oven. A computer-controlled ma- nipulator is then used to weigh out the starting materials and position the pans on a sample carrier. The advantage of this method is that several hundred samples can be produced in a single day. “But organizing and evaluating all the data is quite a challenge,” says Liepold. The objective of the screenings is to test as many compositions as possible in the shortest period of time. Long-lasting luminosity. The Dulux EL LongLife (above) is a compact fluorescent lamp with a rated life of 15,000 hours. Below: Materials for LEDs being tested in a fluores- cent light library. Bottom: The Ostar Lighting white LED shines brighter than a 50-watt halogen lamp. Reprinted (with updates) from Pictures of the Future | Spring 2009 105 The desired efficiency increases can be at- tained through extensive refinements, such as limiting tolerances during production in order to minimize a lamp’s environmental impact. Soon, for example, it should be possible to fill lamps with precisely the amount of gas needed to make them light up most efficiently. Imple- mentation of many such measures can raise the luminous efficiency of today’s common lighting systems by around 20 percent. When Less is More. Osram’s developers can also use such life cycle analyses to identify those parts of the production process where re- sources can be conserved, and future waste thus prevented. For instance, Kroban’s studies show that in some cases, energy consumption can be reduced by using less material. The Os- ram T5 fluorescent tube, for example, which is about as thin as a finger, performed much bet- ter in terms of energy efficiency than the com- monly used T8 tube, which is as thick as a broomstick. The “leaner” model actually con- sumes around 40 percent less energy while de- livering the same level of brightness. Osram and the Energy Research Center in Munich began assembling data on the energy consumption of lamps 20 years ago. Since then, Osram has continually updated its fig- ures. According to this data, by simply switch- ing to modern lighting solutions, around 900 billion kilowatt-hours would be saved, or one- third of the electricity currently being used for lighting. Given today’s energy mix for electricity production, that would be equivalent to a 450- million-ton reduction in carbon dioxide emis- sions each year. “You’d have to plant 450,000 square kilometers of forest — an area about the size of Sweden — to achieve the same ef- fect,” says Merz, who adds that it therefore makes sense to ban incandescent light bulbs. 104 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Lighting | Lamps M algorzata Kroban spent months traveling to manufacturing workshops and pro- duction halls every day. The young engineer visited Osram glass manufacturing centers, where glass cylinders and tubes are made from a large number of materials melted together in giant hot furnaces. Kroban witnessed lamp bodies being coated with phosphor, filled with gases, fitted with electronic circuits and stuck to plastic parts. She spoke with factory managers, researchers, and developers, and sifted through numerous databases. Her objective — which was also the Fluorescent lamp manufacturing. Most of the energy consumed during a lamp’s life cycle results from operation, while production (small images) requires a relatively small proportion of energy. Let there be Savings! Researchers who have studied the life cycles of various lamps from Osram, a Siemens subsidiary, have found that their environmental balance sheet from production to disposal is almost exclusively determined by their efficiency and life span. topic of her doctoral dissertation at the Bran- denburg University of Technology in Cottbus, Germany — was to put together a comprehensive environmental balance sheet for fluorescent lamps and various other Osram lighting systems. “This dissertation marked the first time that the entire lamp life cycle had been closely ex- amined — everything from quarry operations and extraction of the materials for the glass to recycling and disposal facilities,” says Christian Merz, a sustainability expert at Osram. It was thus at once a premiere and a complex detec- tive assignment. Every detail had to be identi- fied and recorded. Where do raw materials come from, and how are they extracted, trans- ported, prepared, and processed? What exactly occurs during the manufacturing process, and which machines and tools are needed? How much material and energy is used, and which energy sources are involved? How much elec- tricity do the lamps consume when operating; how long do they last? And finally, which sub- stances are recyclable, and can therefore be re- used when the lamp reaches the end of its service life? The results of Kroban’s extensive investiga- tion made one thing very clear: “The environ- mental balance sheet for lamps is largely deter- mined by their energy consumption during operation,” she says. As Kroban discovered, only one to two percent of total lamp energy consumption is attributable to lamp produc- tion. “That’s why efficiency during operation is the most effective lever for making lamps more environmentally friendly,” says Merz. “So, if we can raise lamp luminous efficiency even just one or two percent, we’ll achieve more than if we covered up all our smokestacks and no longer released production-related carbon dioxide into the atmosphere.” Mercury-Free Lamps. A small amount of mercury, which turns into a gas at a lamp’s op- erating temperature, is usually added in xenon automobile headlights. Thanks to their larger size, mercury atoms are more easily hit by elec- trons in the plasma of these gas-discharge lamps. Because they emit light that is close to the visible spectrum, the loss occurring during conversion into white light is very low. Mercury also serves as a chemical and thermal buffer, preventing unwanted oxidation processes and helping to dissipate heat. But mercury is also poisonous and can accumulate in the environ- ment. An EU regulation therefore specifies that it should be avoided whenever possible in the automotive sector, which is why researchers are looking for alternatives. Three years ago, Osram launched the “Xe- narc Hg-free lamp,” which replaces mercury with zinc iodide, a harmless gas. “The product’s development was difficult,” says Christian Wit- tig, head of Marketing for Xenarc Systems. “We had to adapt the entire electronic and optical environment to the new technology.” For ex- ample, the higher currents in this xenon lamp subject the components and electronics to greater stress, so Osram had to use thicker electrodes and thi cker fused quartz glass. “Pro- duction is a bit more complicated, but it’s a step forward for the environment,” says Wittig. Automakers including Audi, Ford, and Toyota use the new lamps. Glowing Prospects. Osram compact fluores- cent lamps still use mercury, but less than three milligrams per lamp. “It’s nearly impossible to dispense such a small amount of this material in drop form,” says Dr. Ralf Criens, an Osram environmental expert. “So the mercury is fixed with iron powder, which lets us put the right amount into each lamp.” Long service life is particularly critical for environmental reasons. Ultimately, longer service life means fewer re- placed lamps — and less mercury. That’s why Osram researchers developed the very long- lasting compact fluorescent Dulux EL LongLife lamp, which can burn for 15,000 hours. “Service life is a key factor when working on concepts for new lamps, as is the need to think in terms of systems,” says Criens. He foresees perennial favorites like white LEDs, which pro- vide up to 90,000 hours of light, dispensing with the need for a base — a development that is expected to soon usher in new kinds of floor lamps, table lamps, and other applications us- ing LEDs as fixed components at competitive prices. As a result, many customers could soon be glowing with pleasure at the sight of their bright, environmentally-friendly and long-last- ing lamps. Andrea Hoferichter An energy-saving lamp lasts 15 times longer than a light bulb — and saves one megawatt-hour of electricity. Reprinted (with updates) from Pictures of the Future | Spring 2008 107 | UN Certificates By trading in their old incandescent bulb for a modern energy-saving light source, the Radheyshyam family will save about €55 on electricity over ten years and help preserve the environment. India’s New Light In India, Osram is offering free energy-saving lamps in exchange for energy-hungry incandescent bulbs. In doing so, it has become the first lighting manufacturer to participate in the UN’s Clean Development Mechanism. ing to protect the environment.” A maximum of two bulbs will be exchanged in each house- hold, so that better-off Indians will have no ad- vantage over poorer ones. Osram is collecting the old bulbs and recycling them in an environ- mentally compatible manner. “Our methodology is designed to ensure that the old bulbs aren’t used any more,” says Bronger. In addition, spe- cially developed measuring instruments will be installed in 200 households to record average daily use of the lamps for the UN. The data will be documented in regular reports. The German Technical Supervision Association (TÜV) will verify the details, which will be sent to the UN. Ideal for Emerging Markets. The top part of each lamp is manufactured in Germany, while the bottom part, with its complex electronics, is made in Italy. The lamps are assembled in In- dia. Ultimately, the international division of work makes no difference in the product. The Dulux EL Longlife, one of Osram’s most innova- tive lamps, is ideal for use in emerging markets. T he Radheyshyam family, from the Indian city of Visakhapatnam, has no extravagant designer lamp shade. Even so, it has a special lamp that is so innovative that you won’t find it everywhere in Europe yet. It’s Osram’s Dulux EL Longlife energy-saving lamp. Together with partner RWE, Osram started offering 700,000 of these lamps to India’s households in April 2008 as part of the United Nations’ ”Clean De- velopment Mechanism” (CDM). In comparison with conventional incandescent bulbs the new lamps consume 80 percent less electricity. “The idea is to reduce carbon dioxide emis- sions in developing and emerging markets sub- stantially with the most modern lighting tech- nology — for the benefit of everyone,” says Project Manager Boris Bronger, of Osram. This is a win-win situation. On the one hand, partic- ipating households benefit. They get the newest technology almost as a gift — the Rad- heyshyam family paid no more for the energy- saving lamp than for a conventional bulb, but thanks to the lamp’s reduced power consump- tion, it saves them cash every month. On the other hand, power supplies are im- proved because there are fewer demand peaks, which in turn reduces power failures in the somewhat unstable Indian power supply net- work. In addition, the project will help the envi- ronment. Specifically, the new lamps will cut CO 2 emissions by around 800,000 tons over ten years as compared with use of their con- ventional counterparts. And Osram itself will receive emission certificates from the UN, which it can resell freely to refinance the proj- ect. Osram is confident, despite the high initial investment of the project, that a new business model can be created in this way. The pilot region for the exchange of bulbs was the Federal State of Andhra Pradesh on In- dia’s east coast. “The response to the informa- tion events that Osram mounted in coopera- tion with the local power supply company was very positive,” says Bronger. “Residents are happy that they are not only saving power and money with the new technology but also help- How Much CO 2 Does a Lamp Save? The UN’s Clean Development Mechanism (CDM) was enshrined in the Kyoto Protocol. Its calcula- tions are based on how much greenhouse gas a region would produce if everything were to continue as it has up to now. How much of this could be avoided using energy-saving lamps is then calculated. The savings actually realized must be verified by independent organizations accredited by the UN — for example by Germany’s TÜV. This is a complex process. Osram submitted its methodology in 2004, and it was approved in 2007. Since April 2008, Osram has been the first lighting manufacturer anywhere to replace incandescent bulbs with energy-saving lamps in accordance with this concept. The first port of call is India, but future plans include other countries, principally in Africa and Asia. To calculate the amount of CO 2 saved, a random survey of Dulux EL Longlife lamps’ lifelong electricity use is conducted. Osram experts estimate that the lamp will save roughly one megawatt-hour (MWh) of electricity dur- ing its service life. In India, because of the large number of coal-fired power plants, CO 2 emissions per MWh vary according to region between 0.85 and 1.0 tons (the global average of all power plants is 0.575 tons). In countries such as Brazil, which rely heavily on hydro-electric power, the CO 2 -saving ef- fect would be considerably less — which is why not all countries are suitable for such CDM projects. For each ton of CO 2 saved, Osram receives an emission certificate from the UN. Since these certificates can be traded freely, the price they can command is variable.Schwarzfischer / Lackerschmid It can be switched on and off countless times, and can handle power failures. What’s more, its mercury content is extremely low, which is an advantage for the environment. For all the complicated organization involved in the cam- paign, the Radheyshyams do not have to con- cern themselves with the process. While watch- ing the new energy-saving lamp being in stalled, the father merely has to sign a form, which he also marks with a cross to indicate which lamp was replaced. In the next ten years, he’s unlikely to have to buy a new lamp, and will save money in the bargain. Given that a kilowatt-hour of electricity costs around 5.5 euro cents in India and that a single lamp will save up to a megawatt-hour over ten years, the family’s electricity bill will be cut by €55. “For the lamp itself the users pay a small symbolic amount, so they get the feeling that they have invested in progress,” says Bronger. The Rad- heyshyams pay 25 euro-cents for the Dulux EL Longlife. Even in India, that’s a bargain. Daniel Schwarzfischer 106 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Lamps Kroban’s dissertation serves as a valuable foundation for further environmental balance sheets being drawn up by Osram for new prod- ucts. “Our goal is to market only those products that are more environmentally friendly than their predecessors,” says Merz. With this in mind, the company is producing an environ- mental balance sheet for light-emitting diodes. These pinhead-sized lamps can already com- pete with fluorescent lamps in terms of effi- ciency, and use of new materials should signifi- cantly increase their luminous efficiency. At the same time, a lamp developed on the basis of environmental criteria is worthless if no one buys it. “That’s why we always have to determine how appealing a lamp is to con- sumers,” Merz explains. Such a study could ne- cessitate altering lamp shapes to conform with consumer tastes, even if a different design would offer a technologically superior solution. It’s also important that the lamps have a dim- mer function and can be easily integrated into existing lighting systems. Of course, they should also emit pleasant, natural-looking light. After all, environmen- tally-sound lighting should create a relaxing ef- fect. But there’s no time to relax for Osram’s lamp developer. They’re already busy working on the next generation of innovative lighting systems. Andrea Hoferichter The DULUX EL’s Energy Consumption and CO 2 Emissions are more than 80% Lower than those of Light Bulbs over a 15,000-Hour Life Span 15 x 60 W light bulbs (1,000 h each) Production 0.18 kg CO 2 /lamp x 15 = 2.7 kg CO 2 Use 39.78 kg CO 2 /lamp x 15 = 596.7 kg CO 2 Total: 599.4 kg CO 2 Production 0.33 kg CO 2 /lamp x 7.5 = 2.5 kg CO 2 Use 55.7 kg CO 2 /lamp x 7.5 = 417.7 kg CO 2 Total: 420.2 kg CO 2 Production 0.87 kg CO 2 /lamp x 1= 0.87 kg CO 2 Use 109.4 kg CO 2 /lamp x 1 = 109.4 kg CO 2 Total: 110.3 kg CO 2 7.5 x 42 W HALOGEN ENERGY SAVER (2,000 h each) 1 x 11 W DULUX EL LONGLIFE (15,000 h) 599.4 kg CO 2 9,723 MJ of primary energy used 6,817 MJ 1,789 MJ 420.2 kg CO 2 110.3 kg CO 2 -2,906 MJ -7,934 MJ -30% CO 2 -81% CO 2 Source: OSRAM “That’s a good idea — and we’ve already got the lamps in stock to replace them with,” he says. Comparing Life Spans. For the sake of com- parison, Osram scientists have examined the energy consumption and life spans of various types of lamps. Among the light sources com- pared were a 75-watt incandescent bulb and a 15-watt Osram Dulux EL Longlife energy-sav- ing lamp, both of which have practically the same brightness. What the researchers found was a huge difference in energy consumption. Not only is this due to the fact that the energy- saving lamp can convert more electricity into light than heat; it’s also because the energy- saving lamp can operate for 15,000 hours, or 15 times longer than the incandescent bulb. The collective energy consumption of 15 light bulbs is therefore five times higher than that of a single energy-saving lamp that burns for ex- actly the same amount of time. Conversely, an energy-saving lamp saves a total of one megawatt-hour of electricity dur- ing the same operating life span, which corre- sponds to half-a-ton less in carbon dioxide emissions than a conventional bulb. “That’s more than a tree can absorb during the same period,” says Merz. The modest energy con- sumption of fluorescent lamps also saves money. Although they cost around €10 more than a conventional light bulb, fluorescent lamps pay for themselves after about 800 hours of operation — and save their owners €250 over their entire life span. Moreover, because they are long lasting, en- ergy-saving lamps — seen in a life-cycle con- text — consume less energy during produc- tion. That’s because even though the production of one lamp requires five times the energy used for a conventional bulb, a total of 15 bulbs would have to be produced to achieve a similar total luminous output. Energy-saving lamps do pose one environ- mental problem, though: They contain mer- cury. “Without mercury, their luminous effi- ciency would be two-thirds lower,” says Merz, explaining why Osram still needs to use the toxic heavy metal. Still, the lamps hold only one tenth the mercury that fluorescent lights had around 30 years ago. “That’s less mercury than a coal-fired power plant releases when it produces the electricity used by a conventional light bulb during its lifetime,” Merz reports. Nevertheless, over the long term, mercury will have to be eliminated from the lamps. In fact, there is already a fluorescent car headlight on the market known as “Xenarc Hg free” that employs a potassium-iodine compound that produces sufficient lighting power without any mercury. Reprinted (with updates) from Pictures of the Future | Spring 2009 109108 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Interview Pachauri Dr. Rajendra K. Pachauri, 68, is the Chairman of the United Nations Intergov- ernmental Panel on Climate Change (IPCC). Represented by Dr. Pachauri and former U.S. Vice Presi- dent Al Gore, the IPCC was awarded the Nobel Peace Prize for the year 2007. Since 1981, Dr. Pachauri has been Director-General of The Energy & Resources Institute (TERI), a global organization focused on environmental sustainabil- ity. Pachauri holds PhDs in Industrial Engineering and Economics. He has been a member of the Economic Advisory Council to the Prime Minister of India, the Advisory Board on Energy, which reported directly to the Prime Minister, and a Senior Advisor to the Administrator of the United Nations Development Program. Interview conducted in Spring, 2009 Reflecting on the Simple Things What are the most significant environmen- tal threats faced by India? Pachauri: We are confronted by a range of environmental threats, from soil degradation and water and air pollution to deforestation and loss of biodiversity. All of these are being affected by climate change on an increasing scale. This set of impacts will affect every seg- ment of our economy and of our population. What is India doing about these threats? Pachauri: We have very strong legislation, a strong NGO movement, and a very active press. So it is not easy to pollute without at- tracting a lot of attention. But unfortunately, when coordinated action is required, we have work with our government on a set of policies that contribute to energy-efficient solutions. What technologies should be emphasized? Pachauri: Renewable energy technologies have enormous potential in this country. In Delhi, my institute is working with a group of investors to develop a large-scale solar-thermal generation facility. We are talking about 3,000 to 5,000 MW. This is the kind of thing where Siemens can do a great deal. My institute has also launched a program called “Lighting a Billion Lives” — in which Siemens is involved through its Osram subsidiary. Here, we are trying to address the problem of the 1.6 billion people worldwide who have no access to elec- not been very successful. And to be quite hon- est, some of our enforcement mechanisms are weak, and not as effective as they should be. Many countries want to cut their CO 2 emissions below 1990 levels. Should In- dia be working along these lines as well? Pachauri: As far as CO 2 is concerned, India does not have any goals. And legitimately, there can’t be any at this point because our per capita emissions are about 1.1 tons per person per year, compared to over 20 for the U.S. De- veloped countries are the big polluters and the ones who have caused the problem. If they don’t move, I don’t think there is any basis at all for a developing country like India, where 400 mil- lion people do not have access to electricity, to reduce its emissions. It would be unethical and totally inequitable. It is up to the developed countries to make the first move. The empha- sis in India is on reducing local pollution. Nevertheless, energy efficiency is in India’s best interest… Pachauri: Certainly. We have a serious prob- lem of energy shortages. And if we can use en- ergy more efficiently, then more of it becomes available for others to use. Are there ways in which a company like Siemens can help? Pachauri: Being a technology leader, Siemens can certainly make a major difference. One of the most important things such companies can do is to work with partners to ensure that tech- nologies are customized for Indian conditions in such a way that they can be applied on a large scale. The corporate sector should also tricity. To help them we have developed a solar lantern and solar-powered village charging sta- tion where people can drop off their lamps for charging during the day. Where will India be in 20 years? Pachauri: I would like to see much greater use of renewable energy in this country because we have wind, solar, and biomass in abundance. I would also like to see much more R&D with a view to using agricultural residues on a large scale, perhaps converting these to liquid fuels. For instance, my institute is engaged in a large- scale project for growing jatropha for biodiesel. This plant grows under degraded land conditions, requires little moisture, and does not in any way affect food prices or displace food production. So my vision is to see India move rapidly toward large-scale exploitation of renewable energy sources, while ensuring that these resources are accessible to the poorest of the poor. What policies are needed to accomplish this? Pachauri: We will need fiscal incentives and disincentives. For instance, we have done a study for the Ministry of Finance on taxation of automobiles, and to an extent the government has implemented its recommendations. We now have differential taxes on small cars as opposed to big cars. In the area of energy-effi- cient buildings, my institute has been in the lead. In fact, one of our buildings, which is a major training complex, uses no power from the grid at all. A network of tunnels beneath the building ensures a constant temperature, and a solar chimney allows hot air from the south-side rooms to escape. We need a shift in direction in this country that has to translate into incentives and disincentives and, most im- portant, much greater public awareness. For instance, it should be clear to people that there is an economic benefit to them when they build an energy-efficient building. So I think we need to reorient our fiscal instru- ments such that they carry us to a state of en- vironmental sustainability. What’s the role of the Internet in this? Pachauri: Fortunately, the government is working to make the Internet accessible to more and more people in India. But there are many associated problems. For instance, in ru- ral areas with no electricity, how can you run a computer? So we need a package of solutions that provide electricity, which is a precondition for the Internet. And this is again an area where a company like Siemens can get in- volved to come up with renewable energy technologies that can be used on a decentral- ized, distributed basis, thus making it possible to access the benefits of the Internet. What can individuals do to help the environment? Pachauri: One area where I think many con- sumers can make a difference is by simply eat- ing less meat. The meat cycle is very intensive in terms of energy consumption. The Food & Agriculture Organization did a study on this. They found that the entire livestock cycle ac- counts for 18% of all greenhouse gases pro- duced on this planet. So I’ve been telling peo- ple to eat less meat. This goes hand in hand with other lifestyle changes. We need to start reflecting on the simple things — things like using lights at home. When I step out of my of- fice, as a matter of habit, I switch off the lights, even if it’s for five minutes. We should also encourage people to walk and use bicy- cles more. What recommendations would you give the Obama Administration? Pachauri: All I would ask President Obama to do is to live up to the promises he has made. It is not going to be easy. But if he just does what he has stated, I think the U.S. will be pretty much on its way to bringing about improve- ments at the global level and certainly for its own citizens. Arthur F. Pease | Off-Grid Solutions New Sources of Hope Siemens is testing new technologies that will help developing economies and their poorest citizens. E ngineers at Siemens Corporate Technol- ogy’s (CT) Renewable Energy Innovation Center in Bangalore, India are developing what amounts to a portable power plant. Already op- erating so efficiently that it meets U.S. emis- sion requirements, the plant needs about 35 kg of coconut shells per hour to generate enough electricity for a typical Indian village of 50 to 100 families. “Our partial oxidation combustion process produces a hydrogen and carbon monoxide gas that is fed into a reciprocating internal combustion engine that generates 25 to 300 kW of electricity,” explains Peeush Kumar, who is responsible for energy systems development at CT India. “What is unique about our solution is that, thanks to new electrostatic precipitator technology now being developed in Munich, it will require very little cooling wa- ter. What’s more, it produces carbon ash that can be converted into activated charcoal for lo- cal water purification and can even become a significant source of revenue if sold externally. A Corkscrew that Purifies Waste Water. If there’s one thing that no one can do without, it is clean, safe water. Here, Siemens is develop- ing solutions that will transform the lives of people rich and poor. In Bangalore, for in- stance, Siemens researchers are developing a sewage treatment system that can already re- move 95% of organic substances and up to 99% of nutrients such as nitrogen and phos- phates from effluent without any outside power source. “Most sewage treatment facili- ties have very high energy requirements be- cause they rely on powerful aerators to support the bacteria that metabolize organic matter,” explains Senior Research Engineer Dr. Anal Chavan. “But with our unique system, specially- adapted microorganisms produce the oxygen themselves.” Shaped something like a corkscrew, the treatment system can be pow- ered by the force of effluent as it cascades downward, thus turning the corkscrew and ex- posing the water to its surface area, which is colonized with bacteria. Adds Dr. Zubin Varghese, department head for smart innovations at Siemens Corporate Technology India, “the same technology — but with different organisms — can be adapted to treating water contaminated with chemical or petroleum wastes.” CT India is now working with Siemens Water Technologies to identify a village for a pilot fa- cility for the new treatment technology. “This is a perfect example of a technology that can be scaled up to any desired size, trucked into a vil- lage, and can, with only minimal additional treatment — possibly based on the activated charcoal from our coconut gasification system — turn sewage water into potable water.” Arthur F. Pease Siemens researchers in Bangalore have developed a self-powered algae-based sewage treatment system and a mobile power plant that runs on coconut shells. The plant’s ash can be used for water purification. Reprinted (with updates) from Pictures of the Future | Spring 2009 111110 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Appliances T he number-one manufacturer of home ap- pliances in Western Europe, Bosch und Siemens Hausgeräte GmbH (BSH) of Munich, Germany is committed to minimizing the envi- ronmental impact of its products. “Before we develop any new household appliance, we al- ways conduct a thorough analysis of its poten- tial impact,” says Dr. Arno Ruminy of the BSH Environmental Protection department. In fact, a strict internal guideline stipulates that all At the heart of Siemens’ new dryer is an innovative heat pump (right). Designed to be the most efficient dryer on the market (center), blueTherm passed endurance tests (left) with flying colors. Once considered to be power gluttons, dryers are becom- ing much more conservative in their energy demand. For instance, Siemens’ new blueTherm heat-pump dryer con- sumes 40 percent less energy than is permitted within Europe’s top Energy Efficiency Class A — a new record. A visit to the developers at BSH Bosch und Siemens Haus- geräte in Berlin reveals how they achieved this success. washing machines, refrigerators, and dryers must have a minimal impact on the environ- ment in all phases of their life cycles. Before the development process even begins, each prod- uct idea is carefully examined in order to iden- tify the most environmentally-compatible and recycle-friendly materials, determine the areas where material savings can be achieved, and produce a design that allows the easy replace- ment of used parts. “Every new device must be better than its predecessor in terms of environ- mental protection,” says Ruminy. By designing energy efficient appliances, BSH is also meeting the needs of its customers. That’s because appliances still account for around 40 percent of total energy consump- tion in private households — despite the effi- ciency gains achieved with refrigerators and such over the last ten years. Life cycle studies carried out by BSH environmental experts also show that such appliances mainly impact the environment through electricity and water con- sumption when they’re being used. “Transport and recycling play only a minor role, and re- source consumption in production accounts for only a small percentage of the total resources used. In contrast, operation is responsible for more than 90 percent of the overall environ- mental impact of most appliances,” says Ru- miny. In the case of dryers, this figure is as high as 97 percent. “Making things more efficient here will benefit the environment and save consumers money,” Ruminy says. Heat Pump Strategy. Back in August 2006, BSH engineer Kai Nitschmann was given the assignment to develop a clothes dryer equipped with heat-pump technology that would outperform all other dryers on the mar- ket in terms of energy efficiency. The first thing Nitschmann and his colleagues did was to de- fine target values. “We were looking to achieve energy consumption of 2.1 kilowatt-hours for seven kilograms of laundry, which was just slightly above the world record at that time,” Nitschmann recalls. His development team at BSH’s Berlin plant started out by disassembling all types of dryers, counting their nuts and bolts, and weighing their plastic parts. They also measured the dry- ers’ energy consumption and loudness. Their analysis resulted in the conclusion that the only way to achieve their ambitious energy effi- ciency goals was to use a heat pump — a tech- nology that had never before been used in a dryer. “A heat pump prevents the energy con- tained in the vapor and hot air from escaping from the dryer,” says Nitschmann. The results of the team’s efforts are pre- served in a glass case in Nitschmann’s office. There are, for example, copper arteries through which a coolant flows. Circulation is main- tained by a powerful electric motor whose out- put is four times that of the motor that turns the dryer drum. A compressor pumps the con- densed and thus heated coolant into the cop- per pipes, which repeatedly twist through two aluminum frames. The first of these frames is a Miracle in the Laundry Room heating unit in which the coolant transfers the heat it contains to the circulating air. This heated air then flows into the dryer drum, where it absorbs moisture. A second aluminum frame works as a cooler. When hot, humid air returns from the drum, it comes into contact with this frame, which has been cooled down by the cooled coolant. Moisture condenses as the air cools, and the heat obtained from the air is then transferred back into the coolant. “The energy in the hot dryer air and in the vapor is tem- porarily stored in the coolant and then used for heating purposes,” Nitschmann explains. Ruminy points out that the coolant, which is known as R407c, conducts heat very effec- tively, which significantly reduces energy con- sumption. Unfortunately, however, it is also a greenhouse gas, which is why BSH commis- sioned the Institute for Applied Ecology in Freiburg, Germany to determine whether the heat pump approach made sense. As Ruminy explains, the institute established that “the lower energy consumption by far offsets the greenhouse gas potential involved.” The Freiburg experts did, however, emphasize the importance of effective recycling. Specifically, steps would have to be taken to ensure that the dryer’s coolant, like that of a refrigerator, would be disposed of properly and not released into the environment at the end of the ma- chine’s service life. Meanwhile, developers in Berlin were faced with the challenge of incorporating heat-pump technology into a dryer for the first time, since up until that point they had been used only in refrigerators, air conditioners and heating units. “If it hadn’t been for our Spanish col- leagues’ experience with air conditioners, we wouldn’t have succeeded so quickly,” says Nitschmann. The team in Berlin also had to in- tegrate a second new technology for optimiz- ing efficiency: an innovative lint cleaner for the condenser. “Tiny pieces of lint in the wash can eventu- ally clog condenser frames — and that nega- More than 90 percent of the environmental impact of household appliances results from their operation. Global Market for Environmental Technologies: One Trillion Euros Absolute growth of annual market volume 2005–2020 (in billions of euros) CAGR 2005–2020 Key technologies Source: Roland Berger Energy efficiency 5% Measuring and control technology, electric motors Sustainable water management 6% Decentralized water treatment Energy generation 7% Renewable energy sources, clean power generation Sustainable mobility 5% Alternative drive systems, clean engines Natural resource & material efficiency 8% Biofuels, bioplastics Closed systems, waste, recycling 3% Automated material separation processes 450 290 190 170 90 20 Reprinted (with updates) from Pictures of the Future | Spring 2009 113 The Energy-Efficiency Pay Off | Facts and Forecasts T he purpose of energy-efficient products is to help de- couple economic growth from energy consumption. Whereas the global market volume for energy-efficient products and solutions totaled €450 billion in 2005, that figure could rise to approximately €900 billion by 2020, according to an analysis conducted by the Roland Berger consulting firm. The effects of the current economic crisis were not taken into account in the study, but various new stimulus programs that focus on the application of energy- efficient solutions make the future look bright for the sec- t or. Among growth drivers here are energy-saving motors. According to the German Copper Institute, use of a high- efficiency motor to drive a cooling water pump at full ca- pacity for 8,000 hours a year can reduce energy costs by €405 if such a motor replaces a 30 kW standard motor. Given procurement costs of €1,650 for the high-efficiency motor and €1,300 for the standard motor, the amortiza- tion period for the additional cost of the energy-saving motor is only 9.5 months. In combination with frequency converters, for exam- ple, energy-saving motors can help reduce the amount of electricity needed by pumping systems, which according to the EU Commission, account for four percent of global electricity consumption. An important market for this sec- tor is India, where business with pumps and compressors for use in the construction industry, infrastructure proj- ects, agriculture, and the processing industry is booming. According to the Indian Pump Manufacturers Association (IPMA), the sector’s market volume increased at an annual rate of 12–15 percent between 2003 and 2006, when it totaled approximately €1.8 billion. The U.S. is another major market that offers great po- tential for energy-efficient products. An American Solar Energy Society (ASES) study found that market volume for energy-efficient household appliances, lamps, computer equipment, and buildings (including windows and doors) was $160 billion in 2006 and will nearly double by 2030. Developments here are driven mainly by energy-efficient buildings, but energy-saving lamps — from high-pressure gas-discharge lamps to LEDs — are also in demand. Measures to boost energy efficiency in buildings and households also pay off in Germany, where, for example, insulation of a basement ceiling in a one-family house costs approximately €2,000 and reduces heating costs by €150 a year. Combined with a subsidy from the govern- ment’s building renovation program, this investment will pay for itself in around ten years — or even sooner if oil and gas prices increase. A high-efficiency refrigerator ( A++) is about €50 more expensive than a less efficient device, but will save its user €11 a year. Investment in en- ergy-saving lamps also pays off, as their higher procure- ment costs compared to conventional incandescent light bulbs are amortized after as little as 240 hours of opera- tion — which is why the EU plans to ban the use of light bulbs soon. Some 3.7 billion incandescent light bulbs are now being used in Europe, compared to only around 500 million energy-saving lamps. Sylvia Trage Amortization Periods of Energy-Efficient Solutions Amortization period for additional costs (through energy savings) Source: Own research Energy-saving lamp vs. incandescent lamp of the same brightness Conversion from incandescent to LED traffic lights Speed-controlled energy-saving motor vs. conventional motor A++ refrigerator vs. an appliance in a lower efficiency class Energy-efficiency-based building renovation through technical measures Energy-efficient solutions for rail vehicles Optimization of control system at combined cycle power plant** (p. 88) 800 hours of operation About 5 years 0.5–2 years 4–5 years 5–10 years 2–3 years About 1 year * Based on a family of 4 using a dryer 229 times per year. **Based on 50 starts per year and €80 per megawatt 112 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Appliances tively affects heat transfer,” says Nitschmann. The team rejected the conventional solution of removing lint with a filter. “The user would then have to clean, wash, and dry several filters — it’s simply too much effort,” says Nitschmann. In addition, tests conducted at BSH labs showed the energy efficiency of a so-called A- Dryer falls to the level of a less efficient C or D- Dryer if the filters aren’t regularly cleaned. En- gineers therefore came up with a completely new solution: a type of shower for the con- denser. Here, the condensate is pumped into a container on top of the dryer and then pumped out again four times per drying cycle, rushing over the condenser like a waterfall, and thus washing away the lint. “Energy consumption here is consistently low over the dryer’s entire Condensate washes away lint, which reduces energy consumption, and eliminates the need for a filter. Source: BSH Distribution of Impact over Appliance Life Cycle Production (Consumption of raw materials, energy, and water) Distribution (Energy consumption for merchandise transport) Use (Consumption of water, energy, and chemicals) * Depending on product and use Disposal (Consumption of raw materials, energy, and water) Raw materials (Non-ferrous metals, steel, plastics, glass, other) 90-95%* of appliance’s total environmental impact < 0.5% < 0.5% 4–9% service life — and the customer doesn’t have to do anything,” says Nitschmann. While all these technical questions were be- ing addressed and prototypes were being im- proved under various test conditions in the labs, Nitschmann began considering which production lines could accommodate the new dryers, which tools and machines should be used, and whether suppliers would be able to provide enough compressors in time to meet pre-series production. Despite these pressures, everything went according to plan. The pre-series machines were put to work drying one wash load after another in the huge testing hall at the BSH plant. In the end, each one handled about 2,000 washes. “These endurance tests ensure that our appliances will operate error-free for ten to 15 years,” says Nitschmann. Champion Energy Saver. The result of all this development work was launched in September 2008 in the form of a dryer known as blueTherm. The appliance uses only half as much electricity as a conventional Efficiency Class B condenser dryer, and 40 percent less energy than the permitted limit for a Class A machine, which itself appeared unattainable just a few years ago. “In other words, we really are the energy-saving world champion,” says Nitschmann. That’s not all. Freiburg’s Institute for Applied Ecology also found that the heat-pump dryer’s overall environmental impact is only around half that of a conventional air-vented dryer. “The dryer is in some cases even more econom- ical than a clothesline,” says Carl-Otto Gensch, who managed the institute’s study. “Contrary to popular belief, you don’t necessarily con- serve energy by hanging up the wash to dry. For instance, if you do so in a heated room, you’ll use more energy than the heat-pump dryer consumes.” Although at around €1,000, blueTherm is more expensive than a conventional dryer, the investment pays off. According to the institute, blueTherm consumes 1.9 kilowatt-hours per load, or 10 percent less than was originally planned. A normal air-vented dryer needs 4.1 kilowatt-hours for one load — so assuming average use and German electricity prices, blueTherm will cost €18 per year, while a conventional air-vented dryer will cost approxi- mately €50. And operating costs are expected to be re- duced even further in the future. “We’re contin- ually working to enhance efficiency,” Nitschmann reports. “There’s definitely poten- tial for improvement.” For example, use of al- ternative coolants and improved drive motors for the cooling cycle could save a few kilowatt- hours. Consumers, in any case, need no further convincing. BSH marketing experts had ex- pected to sell 10,000 units in blueTherm’s first three months on the market — but the com- pany ended up selling 50,000 instead. Ute Kehse BlueTherm dryer compared to efficiency class “B” dryer* (p. 110) About 3.9 years World record: The blueTherm dryer uses only half as much electricity as a conventional dryer. Reprinted (with updates) from Pictures of the Future | Spring 2008 115 window shutters and lighting. By mid-2008, a large-scale study provided more numbers for hundreds of different scenarios and about a dozen locations — figures for one-room offices and for suites in Zurich, London, Vienna and Marseille, for example. The EMPA contributed its expertise in build- ing modeling. “In practical applications, the ex- pense of installation and operation must be as low as possible,” says Thomas Frank, a Senior Scientist in the Building Technologies depart- ment. In this regard, one issue that still has to be resolved is how simple the models can be while still achieving satisfactory operation of the control system. “Probably about a dozen parameters will be needed,” Frank estimates. “All of that can theoretically be calculated from the blueprint of the architect. What we still don’t have are standardized interfaces between the architects’ CAD programs and the building management software.” Weather Data Via the Internet. Since early 2008, MeteoSchweiz has been using a weather model with a spatial resolution of 2.2 kilo - meters. Based on ground-level grid squares with this edge length, 60 layers of the atmosphere are defined, and MeteoSchweiz’s computer cal- culates the future weather for each cell. This makes local forecasts much more precise than previously, when the model had a grid resolu- tion of seven kilometers. “The objective of saving energy is worth almost any amount of effort,” says Dr. Philippe Steiner, who oversees the development of models at MeteoSchweiz. The organization’s meteorologists provide infor- mation on 24 weather parameters, each of which can predict conditions for three days on an hour-by-hour basis. The data includes tem- peratures and information on wind speed and solar radiation. In the future, it will be transmit- ted directly into buildings via the Internet. “Processing the data to generate forecasts involves a huge amount of mathematical calcu- lation,” says Professor Manfred Morari, head of the Automatic Control Laboratory of the ETH Zurich. “As it plans the next control command, OptiControl has to take into account the fact that more, as yet unknown information will be added in the form of new weather forecasts.” For each additional step of advanced planning, the number of possibilities increases by a factor of ten to 100. The trick is to get a simple micro- processor to perform these complex calcula- tions. “OptiControl makes no sense if you need a supercomputer for it,” says Morari. “The issue of what the market will accept is essential.” This understanding of the customer’s needs is con- tributed by Siemens, with its worldwide pres- ence and many years of experience. The OptiControl project will end in 2010, and its first products aren’t expected to appear before then. “Ultimately, the software could run on a small automation station on the wall,” pre- dicts Tödtli. “No special PC will be required and the hardware for building control won’t be ex- pensive either.” As this scenario approaches re- ality, field tests are taking place at Siemens BT’s laboratory in Zug. There, entire rooms are being set up to analyze the effects of a huge climate control system that generates artificial environ- mental conditions. The scientists can thus measure how well a building control system re- acts to fluctuating outside temperatures and how precisely it can adjust the required room climate. OptiControl will also have to demon- strate its potential in that setting. “More than anything else, a good cost-benefit ratio is im- portant,” says Tödtli.Christian Buck T here are some ideas that take a long time to mature. A good example is the concept of using our increasingly accurate weather forecasts to optimize a range of building func- tions. Heating, for example, could be automati- cally increased when a cold front is on the way and reduced as soon as warmer temperatures are predicted. This would ensure a comfortable room climate and save on energy. But today’s building automation systems usually measure only current ambient values such as the outside temperature and incident solar radiation to control heating, air- conditioning systems and window blinds. At most, a smart building manager might occa- sionally adjust these systems as appropriate depending on the forecast and personal experi- ence. But today’s systems are not set up to per- form such adjustments automatically. That is expected to change in a few years. To facilitate this change, Swiss researchers intend to combine modern weather forecasts with innovations in building technology and control engineering in a project called “Opti- Control.” One member of the project is the Siemens Building Technologies Division (Siemens BT) in Zug, near Zurich. “The objec- tive is maximum comfort with minimal energy Energy Efficiency | Predictive Building Management 114 Reprinted (with updates) from Pictures of the Future | Spring 2008 basic outlines of the project and contributed its knowledge of the market for control engineer- ing in buildings. Self-Sufficient Alpine Hut. A first impression of OptiControl is provided by the Monte-Rosa Alpine Hut of the Swiss Alps Club (SAC), which opened in the Fall of 2009. The hut is a joint project of ETH Zurich and SAC, with support coming from numerous sponsors and partners. The hut’s automation system was supplied by Siemens. Since the hut is located at an altitude of 2,883 meters, it must be largely self-suffi- cient. Power will be supplied by a photovoltaic system supported when necessary by a com- bined heat and power unit operated with lique- fied petroleum gas. OptiControl helps to manage the building. “For instance,” explains Tödtli, “when the bat- tery and the wastewater tank are half full and sunshine is predicted in the near future, the control system might initiate the wastewater purification process, which consumes electric- ity.” This way, the system prevents solar energy from remaining unused due to premature charging of the battery. On the other hand, if bad weather is forecast, the purification process will be stopped, because otherwise Forecasts that Come Home Regional weather forecasts are becoming increasingly detailed. Researchers in Switzerland hope to use this data to automatically optimize energy use in buildings while keeping costs to a minimum. Siemens engineers are providing practical help. costs,” says Dr. Jürg Tödtli, manager of the Eu- ropean research activities for heating, ventila- tion and climate-control products at Siemens BT. “Of course, before the project ends, we won’t know how beneficial weather forecasts are, but I see a major opportunity here.” Since May 2007, about a dozen researchers and five institutions have been involved in OptiControl. In addition to Siemens, the latter include the Swiss Federal Office for Meteorol- ogy and Climatology (MeteoSchweiz) in Zurich, the Research Institute for Materials Science and Technology (EMPA) in Dübendorf, and two in- stitutes of the Swiss Federal Institute of Tech- nology (ETH) Zurich: the Automatic Control Laboratory and the Systems Ecology Group of the Institute for Integrative Biology. The project also includes three Siemens em- ployees. In addition, Siemens BT developed the there would be a risk of using up the power re- serve in the battery and having to switch to the precious liquefied petroleum gas. In addition to such “rule-based” processes, OptiControl offers “model-based predictive control,” in which it uses a model for the ther- mal behavior of the building. In this case, the automatic control mechanism must be fed with data such as the heat transfer coefficient of the walls and the heat storage capacity. In combi- nation with the weather forecast, prior user settings, and measurements for the tempera- ture inside and outside, the control system can then calculate the optimal profile for the tem- perature of the heating water, for example. Functions of this sort are not possible without powerful electronics. “I wrote the first essay on the use of weather forecasts for building au- tomation over 20 years ago,” recalls Tödtli. “But only now are there processors that have enough power and are cheap enough; our method demands a lot of memory and compu- tational capacity.” Every 15 minutes, the Opti- Control mechanism adjusts the system. To do this, it uses not only the implemented rules and models, as well as sensor readings, but also the weather forecast for the next three days. “Unfortunately, no one knows the exact cost-benefit ratio of all of this,” says Project Manager Dr. Dimitrios Gyalistras from the Sys- tems Ecology Group at ETH Zurich. It is there- fore not really known at this point how much energy can be saved with predictive control systems in the medium to long term. Re- searchers hope to establish more clarity in this regard. An initial simulation indicated a poten- tial of 15 percent in a typical office room with integrated control of heating, air-conditioning, Weather predictions and building automation will be tested in a pilot facility at 2,883 meters. Researcher Dr. Jürg Tödtli (photo below) and partners are key players in the project. Reprinted (with updates) from Pictures of the Future | Fall 2007 117 gine alone produces five kilowatts of heat. An auxiliary burner can add between 10 and 30 kilowatts, depending on its size. As a special feature, the microCHP device can also operate independently of the grid. In this case, it disconnects itself from the grid and produces up to one kilowatt of emergency power for specially vetted emergency power groups such as refrigerators, freezers, and emergency lighting. “That is a key differentiat- ing feature of our device,” says Wolfgang Hu- ber, who is responsible for development at Siemens BT. Huge European Market. Even if its advan- tages aren’t obvious at first glance, the mi- croCHP device is a significant innovation. Paul Gelderloos, manager of technical innovation at Remeha B.V., is certain that “the device is one of the most promising successors in the con- densing boiler area,” he says. Georges Van Puyenbroeck adds that, “It offers simple access to alternative energy; installers know about boilers, only the electrical generation is new.” He sees great potential for the new product. “According to our market data, seven million wall-mounted boilers are sold in Europe every year,” he says. Product manager Markus Herger estimates that in its the first three years on the market, between 50,000 and 100,000 mi- croCHP devices could be sold — and that sales will continue to grow after that. This depends on how energy suppliers respond and on politi- cal decisions. In countries where sales operations are about to be launched — the Netherlands, then England and Germany — there are so-called electricity buyback laws, which promote mi- croCHP devices. “Other countries are not yet as advanced,” laments Herger. After about four years of development, Siemens’ development partners began testing the new microCHP devices in about 400 house- holds in Great Britain, the Netherlands, and Germany. Experience has shown that the added cost of a microCHP device can be amor- tized within five years — but its price can be es- tablished only after the partners bring the de- vice to market. Siemens launched the production of the control technology in September 2009. Re- meha B.V. plans to enter the Dutch market in spring 2010. And specialists are already work- ing on developing the next generation of mi- croCHP devices. These will be even smaller, lighter, and more powerful than their predeces- sors, and will be fired by a variety of primary energy sources, such as oil or various gaseous fuels from biomass. Gitta Rohling How to Own a Power Plant Innovative heating systems not only provide warmth but also satisfy two thirds of the electricity demand of an average four-person household. Energy Efficiency | Combined Heat & Power Systems 116 Reprinted (with updates) from Pictures of the Future | Fall 2008 D emand for resource-saving heat genera- tion systems is growing. One driver of this development is the fact that well-insulated new buildings and renovated older structures have lower heating demand. In addition, en- ergy prices as well as insecurity on the part of consumers regarding the reliability of gas and oil supplies are also prompting researchers and developers to consider new heating methods. One such method is the simultaneous gen- eration of heat and electricity by so-called CHP (combined heat and power) systems. These are among the most efficient methods of energy generation, because the fuel they use is trans- formed into electrical energy as well as heat — usually in the form of steam and hot water. More than 90 percent of the energy contained in fuel can be utilized by these systems, com- pared with only about 38 percent for electrical generation by a conventional power plant. This high thermodynamic efficiency can make a major contribution to operating economy as well as environmental protection. Simultane- ously, emissions of carbon dioxide and nitro- gen oxides are reduced. Until now, CHP technology has been limited to large installations. Although the idea of ap- plying it to single and multi-family homes is new; many manufacturers are already excited about exploiting this potential. Siemens Build- ing Technologies (BT), for instance, has devel- oped the electronics for a gas-fired micro heat and power cogeneration device (microCHP). “We see a clear line of development toward the use of personal small power plants in single- family homes in place of oil or gas-fired boil- ers,” says Georges Van Puyenbroeck, director of sales and marketing at BT’s OEM Boiler & Burner Equipment. With this goal in mind, BT specialists are working together with manufac- turers of condensing boilers, including Viess- mann, Vaillant, Remeha B.V., and the Baxi Group. How to Generate a Kilowatt. Until now, con- densing boilers have produced only heat, but no electricity. MicroCHP devices, on the other hand, can do both. They work as follows: A gas- fired Stirling engine is integrated into a wall- mounted boiler. The temperature difference between the cold water and the heat provided is used to generate electricity. Current imple- mentations permit the generation of a maxi- mum of one kilowatt of electrical energy, of which about 900 watts can be used directly in the home or fed back into the energy supplier’s grid. The device itself uses 100 watts. For consumers, this means that they have at their disposal their very own miniature cogen- eration power plant, which provides not only heat but also two thirds of an average four-per- son household’s electricity requirements. The remaining electricity is provided by the power grid to which the microCHP device is normally connected. Operation with liquefied petroleum gas (LPG) is also possible after appropriate readjustment of the device. Siemens electronics control the heat output to keep the Stirling engine within its permissi- ble operating range and provide the desired temperatures for home heating and hot water at the proper times. In addition, the electronics monitor the feeding of surplus electricity back into the power utility’s grid. Control technology from Siemens ensures that the device, which operates in parallel to the power grid, is able to switch on and off at the proper times. The burner for the Stirling en- Stirling engine Burner C old water Generator Households will soon be able to generate their own heat and electricity using a mini CHP device (left and above). Scientists are now fine tuning the technology. | Energy Storage Piggybanks for Power Whether at base or peak load, high-performance energy storage devices guarantee optimal power supplies in vehicles. I f electrical energy is to be optimally used, it needs to be temporarily stored. And that’s the case whether we’re talking about cars, buses, streetcars, subway systems or power distribution networks. In road vehicles, elec- tronic components are taking over more and more functions, partly as driver assistance sys- tems, and partly to save energy — particularly in hybrid vehicles that combine an electric mo- tor with a combustion engine. The electric mo- tor serves either a fully fledged second drive (in a full hybrid), as an auxiliary drive to provide a boost when starting and passing (in a mild hy- Chemical or Electrostatic Storage? Accumulators such as lead-acid, nickel-metal hydride and lithium-ion batteries have a service life of between three and ten years, on average. They function on electrochemical principles. Charging the battery converts electrical energy into chemical energy. When an electrical device is connected, chemi- cal energy is converted back into electrical energy. Energy stores such as double layer capacitors, in contrast, store energy electrostatically. They last almost indefinitely and exhibit high power densities. However, their energy densities are low. For this reason, their primary use is to cover peak loads such as engine starts or acceleration in hybrid applications. Battery type Energy density Wh/kg Power density W/kg Service life in cycles / years Lead-acid battery 30 – 50 150 – 300 300 –1,000 / 3 – 5 Nickel-metal hydride battery 60 – 80 200 – 300 >1,000 / >5 Lithium-ion battery 90 – 150 500 – >2,000 >2,000 / 5 – 10 Supercaps (double layer capac.) 3 – 5 2,000 – 10,000 1,000,000 / unlimited brid), or as an assistant when the vehicle has to stop and restart frequently (in the start-stop hybrid). In the future, full electric vehicles will be an important addition to this list. Here, the electric motor will play a major role in making zero-emission mobility possible (p. 60). To meet the needs of a growing number of functions, vehicles needs a high-performance energy storage device. Batteries, however, are heavy and their energy density is low. One kilogram of diesel contains 10,000 watt-hours (Wh), while a lead-acid accumulator manages just 30 to 50 Wh/kg. Batteries’ power density is 0.1 s Comparison of Battery Systems 0.01 10 Power density in watts per kilogram (W/kg) 100 1,000 10,000 0.1 1 10 100 1,000 Energy density in watt-hours per kilogram (Wh/kg) 10,000 s 1,000 s 100 s 10 s 1 s Double layer capacitors Electrolytic capacitors Pb NiCd NiMH Li-ion Batteries Pictures of the Future | Special Edition on Green Technologies 119 V elaro will have to prove itself from day one in Russia, where it will immediately be put into operation on the Moscow-St. Petersburg line during the grueling north Eurasian winter at the end of 2009. The train will therefore have to face frost, ice storms, and heavy snows. But that shouldn’t be a problem since the Sapsan (Russian for “peregrine falcon” as the Velaro is known in the country) seems to have been tailor-made for such a climate. As Russia’s first-ever high-speed train, the Velaro was given a winter-proof design consisting of steel, plastic, special lubricants, and numerous safety features. The train was also thoroughly tested in a wind and weather tunnel to prepare it for temperatures that can get as low as minus 50 degrees Celsius. Engineers at the Rail Tec Ar- senal (RTA) testing facility in Vienna actually deep-froze the train in order to verify the per- formance of all systems under bone-chilling conditions before sending it out into the real Russian winter. The latest addition to the Velaro series of high-speed trains built by Siemens’ Mobility Di- vision is the Russian Sapsan. The sleek red- white-and-blue train is based on the Deutsche Bahn railroad company’s ICE 3 model, although the two are only similar on the surface — ex- cept for the color, of course. There are notable differences on the inside, however, as the Sap- san required several important changes, most of which will never be noticed by passengers. For one thing, the Sapsan is 33 centimeters wider than the German national railway com- pany’s ICE 3, which also makes it bigger in gen- eral. One reason for this is that the track gauge on Russian rail lines is 85 millimeters wider than in Germany. Hundreds of Sensors. In addition, the Russ- ian Velaro takes in air from the top rather than the bottom, since air intake from below could cause problems when tracks are snowed over. To ensure that passengers remain comfortable inside even when it’s freezing outside, the Sap- san is equipped with 800 sensors that monitor interior temperature, air pressure and circula- tion, and humidity. Passengers are kept warm by enhanced thermal insulation. The latter was achieved by minimizing the number of thermal bridges, which are components whose design allows heat to flow to the outside. The train’s insulation is also twice as thick as the German model’s. Russia is now the third country, after Spain and China, to choose the Velaro from Siemens as its high-speed train. The train can be adapted to where it’s being used. In Spain, for example, the Velaro has been fitted with a spe- cial air conditioning system, since passengers there sometimes have to be protected from outside temperatures as high as 50 degrees Celsius. The rail grid in Spain also delivers volt- age at 25 kilovolts rather than the 15 kilovolts provided in Germany. One thing all the Velaros have in common, however, is an underfloor de- sign that has motors, brakes, and transformers mounted beneath the rail coaches. Every other coach is equipped with motorized running gear and bogies. By contrast, the ICE trains of the first and second generations (the Velaro's pred- ecessors) were pulled by a driving unit similar to a locomotive. The advantage offered by underfloor tech- nology is that it provides 20 percent more space for passengers, since the area directly behind the train operator can be used as well. The under - floor arrangement also directly transfers motor The Russian version of Siemens’ Velaro train, the Sapsan, will enter service at the end of 2009. The train has pas sed a gamut of tests, including simulated snow storms and -40 degree Celsius temperatures. 118 Reprinted (with updates) from Pictures of the Future | Fall 2007 low too, reaching a maximum of 300 W/kg. For an electric car to accelerate as rapidly as a 90 kW gasoline-engine vehicle, it would need a 300-kilogram lead-acid battery in the trunk. That’s why most of today’s hybrid vehicles employ nickel-metal hydride batteries with a capacity of 60 to 80 Wh/kg. Lithium-ion or lithium-polymer batteries are even more pow- erful, with 90 to 150 Wh/kg. Alongside storage capacity, the service life of an accumulator is also limited. A lead-acid battery is good for a maximum of around 1,000 charge-discharge cycles. Nickel-metal hydride or lithium-ion bat- teries last considerably longer. Extremely high power density. In general, accumulators must be charged slowly to avoid damage. But vehicles, in particular, are associ- ated with many applications that need a fast charging capability — for example, when brak- ing energy is harnessed in cars or streetcars. With this in mind, Siemens is promoting the use of double layer capacitors, or so-called supercaps — devices that store electrical en- ergy by separating the charges as soon as a voltage is applied. Supercaps offer capacitances of 300 to 10,000 farads. Charge separation takes place at the boundary layer between a solid body and a liquid. High capacitances are achieved by ensuring that the charges are separated by a distance of only atomic dimensions, and by the use of porous graphite electrodes with a large specific surface area. Supercaps have low energy densities — three to five Wh/kg — but extremely high power densities of 2,000 to 10,000 W/kg. They can be charged within a few seconds, and at a million or so charge-discharge cycles, their service life is extremely long. This is due to the fact that the charge separation processes oc- curring within them are purely physical in na- ture. They can take up and release large quanti- ties of energy extremely quickly. This makes it possible to use an electric mo- tor in a hybrid vehicle, streetcar, or locomotive as a generator that recovers braking energy. This regenerated energy is stored in supercaps and re-used when the vehicle accelerates again. The resulting advantage is fuel and en- ergy savings of between five and 25 percent, depending on the driving cycle. The capacitor packs can either be carried in the vehicle itself or permanently built into segments of subway lines. Such a setup has already been tested in sev- eral subway systems — for example, in Madrid, Cologne, Dresden, Bochum and Beijing. Super- caps could also be used in energy distribution applications, as power supply networks are constantly subject to load variations to which heavy turbines cannot react quickly enough. Power utilities could use flexible energy stores such as supercaps to balance out load peaks and troughs. “In ten years, vehicles with these new stor- age systems might be as commonplace as to- day’s vehicles with their trusty lead-acid batter- ies,” says Dr. Manfred Waidhas, project head for Electrochemical Energy Storage at Siemens Corporate Technology. Mild or start-stop hybrid vehicles can get by with the limited energy density of the supercaps. Bernhard Gerl Double layer capacitors called supercaps (below) are being used in streetcars such as the Combino Plus (bottom). The devices release stored braking energy quickly when the vehicle accelerates. High- Speed Success Story The Velaro high-speed train is a true model of success. It’s comfortable, fast and, above all, eco- nomical, as it consumes much less energy than a car or plane. The train now operates in China and Spain, and will soon hit the rails in Russia. The Velaro’s underfloor drive system can be adjusted in line with where it’s being used. This means it can be fitted with systems for accommodating extreme heat or cold as well as mountainous routes with steep inclines. | Rail Transport Energy Efficiency Reprinted (with updates) from Pictures of the Future | Spring 2009 121 | Rail Systems T he assembly hall is filled with locomotives, some of them missing their roofs, others without control cabins. And some are even mounted on temporary platforms that make them appear to be floating on air. Martin Leitel, who is responsible for making life cycle assess- ments of locomotives for Siemens Mobility in Allach, Germany, points to a yellow locomotive without a roof. “That one’s going to Australia,” he says, a country where rail service operators recently started making energy conservation a At a Siemens locomotive factory in Allach, Germany, engineers use life cycle assessments that can help with the selection of the most environmentally compatible designs. Timely Trains Today’s locomotives should consume as little energy as possible — not just when they are in operation, but also during production and eventual recycling. Life cycle assessments can help with selection of the most environmentally-compatible designs. higher priority. In fact, the model will be the first electric locomotive on the island continent to be equipped with an energy recovery sys- tem. The system collects braking energy gener- ated on downhill stretches by trains full of coal that are traveling from the interior of the coun- try to the coast. It then feeds the energy into the grid for use by empty trains going uphill. Another locomotive, Leitel explains, is for a European leasing company. It’s equipped with a transformer that achieves optimal efficiency because it was built using more copper than is usual, which also makes it heavier than similar units. In order to compensate for the trans- former’s additional weight, other parts of the locomotive must be lighter, which is why its roof is made of aluminum. Naturally, all of this results in higher energy consumption during manufacturing. But, as Leitel points out, after only a few years of operation, the transformer’s high efficiency and the aluminum’s light weight counterbalance these energy costs. Energy Efficiency | Rail Transport 120 Pictures of the Future | Special Edition on Green Technologies power to the wheels and distributes the power more efficiently throughout the entire train. This makes the Velaro the world’s only high-speed train that can handle inclines of up to four per- cent, which is what it will face along the moun- tainous 650-kilometer high-speed route from Barcelona to Madrid, the biggest cities in Spain. The new route will cut travel time between the two metropolises from six hours to only about two and a half hours. The Velaro’s drive system also offers the advantages of a distributed struc- ture and uniform power transfer, which signifi- cantly reduce component wear and tear as com- pared to conventional traction unit concepts. Top speed of 404 km/h. The Velaro is indis- putably the fastest multiple-unit train in the world. When it is delivered to the customer from the Siemens plant in Krefeld, it’s ready to travel at a top speed of 404 kilometers per hour. Its normal cruising speed with passengers and luggage is up to 350 km/h, although the speed is of course continually adjusted to the immediate surroundings. Because of Russia’s 3- kilovolt catenaries, the Sapsan will initially travel at approximately 250 km/h. But even at that speed, the train will cut travel time for the approximately 650 km from Moscow to St. Pe- tersburg on the Baltic Sea by 45 minutes. Still, Russian Railways plans to expand its high- speed network so as to allow the Sapsan to reach higher speeds. High-speed rail links between major cities offer a real alternative to plane and car travel in many countries. While a trip on the new cross- border high-speed line between the centers of Frankfurt and Paris takes a little more than two hours longer than a plane flight, passengers are spared the long trip from city centers to air- ports, not to mention the time spent for check- in and waiting. High-speed trains are also superior in terms of energy consumption, as a plane flying from Frankfurt to Paris produces around 83 kilo- grams of carbon dioxide per person, while the Velaro generates just under 10 kilograms — or 90 percent less. Basically, the Velaro consumes the equivalent of 0.33 liters of gasoline per seat per 100 kilometers, which makes it far more economical not only than a plane but also than a car. It’s therefore not surprising that the Velaro is an integral part of Siemens’ envi- ronmental portfolio. Worldwide Success Story. It therefore makes sense that high-speed trains are becoming more and more popular. Among other things, their use is being reconsidered in the United States. The California High-Speed Rail Author- ity, for example, has determined that a link be- tween Los Angeles and San Francisco could re- duce carbon dioxide emissions by 58,000 tons, an amount equivalent to the savings that could be achieved by shutting down a major coal- fired power plant. Europe already has an extensive high-speed rail network that is 6,000 kilometers long. In view of the benefits offered by high-speed rail technology, the head of Siemens Public Transit, Ansgar Brockmeyer, is convinced that an addi- tional 8,000 kilometers of high-speed track will be added to the network by 2025. “Worldwide, rail traffic volume is growing at an annual rate of three percent, and we expect to see growth rates as high as seven percent in Asia and Eu- rope,” says Brockmeyer. “That makes this busi- ness sector extremely interesting for us.” China opted for the Velaro some time ago, opening its first route — between Beijing and the Olympics site in Tianjin — in time for the 2008 Summer Olympics. The Chinese Velaro, which is also 33 centimeters wider than the Western European train, can accommodate 600 passengers. Plans call for a Beijing-Shang- hai high-speed line to go into operation in 2010 with 100 new Velaro trains. With 16 coaches each, these trains will be 400 meters long, hold 1,060 passengers, and have a top speed of 350 km/h. The Velaro’s design, comfort, and technical features have apparently convinced a lot of rail operators, since the train came out on top in five of eight calls for tenders in the past few years. Germany’s Deutsche Bahn has also se- lected the Velaro to succeed the ICE 3. The company has ordered 15 new trains that will begin operating when the 2011 winter sched- ule goes into effect. These Velaros will be equipped with the state-of-the-art European Train Control System (ETCS), which represents a milestone in cross- border train travel. Thanks to the ETCS, trains will no longer have to slow down at national borders in coming years. Instead, they will be able to speed through without interruption from northern Europe to the Mediterranean coast. Up until now, Europe has had more than 20 different rail signaling and security systems — but the ETCS will change that. The system will enable the new German Velaro to travel across borders not only to Paris, but to cities in Bel- gium as well, thereby eliminating practically all remaining obstacles to the consolidation of the European high-speed rail network. Tim Schröder The Velaro consumes the equivalent of 0.33 liters of ga so - line per seat per 100 kilometers — much less than a car. Reprinted (with updates) from Pictures of the Future | Spring 2009 123 will, but cautions that “the locomotive market is price-sensitive, so the sales price is still often decisive.” Nevertheless, customers are well aware of the fact that the purchase price of a locomotive is only around 15 percent of the cost of power- ing it throughout its service life. “So a ten per- cent higher list price for a locomotive still pays off for the customer if energy efficiency is two percentage points better than the competi- tion’s,” Leitel points out. Recyclable Subway. This argument is familiar to Dr. Walter Struckl, who works at Siemens Mobility in Vienna, where subway trains, rail- way cars, and trams are built. The market for these products is also extremely price sensitive, and energy-saving innovations here have to pay for themselves within two to three years. Struckl opens a copy of his doctoral disserta- tion from Vienna Technical University. In this work, Struckl calculated down to the last detail the energy balance of the Oslo subway system — probably the most efficient subway in the world in terms of resource conservation. When Struckl joined Siemens in 2003, it still wasn’t possible to market the environmental aspects of a product, but today LCAs are a normal part of the tendering process. Life cycle costs have to do with costs, but life cycle assessments ad- dress environmental concerns. People tend to confuse the two, says Struckl — but they’re not contradictory, given that greater energy effi- ciency usually has a rapid and positive effect on life cycle costs. With regard to the Oslo subway system, a total of 84 percent of its materials can be recy- cled; the rest are burned and the resulting en- ergy is exploited. There isn’t much left to im- prove here because the rail cars are held to- gether with hook-and-loop fasteners rather than glue, for example, which makes it easy to disassemble them. The LCA, however, can still be improved. Ex- perts estimate that an additional 30 percent in energy savings could be achieved in actual op- eration and that the associated costs would be recouped in one year, says Struckl — even though the system already consumes around one-third less energy than its predecessor, mostly thanks to more efficient heating and more effective insulation. Mobility in Context. Struckl warns against generalizations, explaining there is no such thing as a “good” or “bad” LCA. Absolute num- bers, such as those for CO 2 emissions, don’t re- veal much in and of themselves. Instead, each application scenario must be carefully studied in context in order to develop optimal meas- ures. Subway trains such as those in Oslo, for example, produce only 827 metric tons of CO 2 during a 30-year service life — a low figure due to the fact that 99 percent of Norway’s electric- ity is generated with hydro power. On the other hand, the same trains would emit 47,900 met- ric tons of CO 2 equivalent if operated in the Czech Republic because most of that country’s electricity comes from coal-fired power plants. But unlike Oslo’s trains, Prague’s run mostly un- derground and its winters are warmer, mean- ing that its trains can get by with less heating and that an investment in improved insulation wouldn’t really pay off anyway. What would pay dividends, says Stuckl, would be a more ef- ficient drive unit like the Syntegra bogie with its permanently excited gearless electric mo- tors, which Siemens is testing as a prototype (see Pictures of the Future, Fall 2007, p. 70). Struckl’s goal is to turn the focus away from the LCA of individual assemblies and toward the overall mobility system. Siemens offers de- vices that store braking energy either on trains themselves or as stationary units on tracks. The company also supplies efficient technologies for producing electricity at power plants and transporting it to tracks, as well as traffic man- agement systems that intelligently network rail and road transport. Siemens’ Complete Mobil- ity concept attracted lots of interest at the In- notrans fair in September 2008 in Berlin. These days, companies in Norway receive a cash bonus for every kilowatt-hour of energy saved; and other countries plan to introduce emission trading systems for the transportation sector. “When transport companies also begin to bear the cost of carbon dioxide emissions, many of them will quickly become interested in our in- novations,” predicts Struckl. Bernd Müller A ten percent higher purchase price pays off for customers if energy efficiency is two percentage points higher . 122 Reprinted (with updates) from Pictures of the Future | Spring 2009 Energy Efficiency | Rail Systems Such conflicts are a part of Leitel’s routine. In addition to conducting life cycle assessments (LCAs), his job at the Allach locomotive factory near Munich is to ensure coordination with customers when drawing up custom-tailored technical specifications for their locomotives. Combining these two goals has proved to be a good idea. “Customers simply want a good lo- comotive that meets the highest environmen- tal standards,” he says. What’s more, life cycle analyses are often a prerequisite for taking part in tendering processes. Quick LCAs. Munich has been a locomotive production site since 1841 — at one time under the name Krauss-Maffei, whose logo still adorns the front of the factory hall that Siemens took over in 1999. But much has changed over the years. While steam locomotives churned out enormous amounts of soot and carbon dioxide, their modern counterparts are subject to strict environmental regulations. And it’s not just the emissions caused by operation of these powerful locomotives that need to be low; environmen- tal impact throughout their entire life cycles must also be kept to a minimum. This begins with the manufacturing process and continues all the way through the product’s life to disposal, which will soon become the legal responsibility of the manufacturer. As a result, developers must now plan to recycle as many components as possible. To ensure that the associated analyses — also known as material balances — remain ac- curate, Leitel relies on an extensive database containing thousands of parts numbers and in- formation on the materials used in each com- ponent. This database reveals, for example, that the left door of a locomotive control cabin weighs 87.1 kilograms, including 68.1 kilos of aluminum, 6.6 kilos of glass, and 4.2 kilos of elastomers, with the remaining weight ac- counted for by other materials, including steel and insulation elements. Just a few mouse clicks is all it takes to eval- uate specific assemblies or material classes and determine their proportion of total weight. An- other database lists the primary energy con- sumption and carbon dioxide emissions associ- ated with each material, as well as regional differences. For example, an aluminum panel made in Iceland, a country that uses a lot of re- newable energy, has a much lower CO 2 value than one from China, where most electricity is generated in coal-fired power plants. The material analysis does not extend down to the last bolt; this would require too much ef- fort and expense. “We make a general estimate of the energy consumption and emissions of small components,” Leitel explains. The analy- sis ultimately produces charts that show where energy consumption is highest. With freight trains it’s clearly locomotive operation itself. Over a service life of roughly 30 years, a loco- motive in Europe emits between 200,000 and 400,000 metric tons of CO 2 , depending on the type of use. Locomotive production results in only about 250 metric tons of CO 2 emissions, however. And the recycling phase generates savings of 100 metric tons of CO 2 because over 95 percent of the materials in a modern loco- motive are recyclable. These materials — for the most part metals and coolants — are reused, which obviates the CO 2 emissions that would have been produced if the materials had been manufactured from scratch. Materials Review. Leitel believes that the ma- terial analysis process can be improved. “We’re reviewing the entire range of materials now in use,” he says. The idea is to use batteries that don’t contain heavy metals, as well as coolants made of biodegradable materials — and to generally ensure that new designs have more recyclable parts by avoiding use of composites as much as possible. “The ideal would be to loosen a few bolts and have the whole locomo- tive break apart into sets of unmixed materi- als,” Leitel explains. Not every trend is as good as it sounds, however. Although lightweight construction with plastics and composites reduces operating energy consumption, it also poses recycling problems, which means that it is not necessar- ily good for the environment. A locomotive also shouldn’t be too light because it has to pull a train 20 to 30 times its own weight. When asked if all the environmental effort that is now being implemented will ultimately pay off in the form of orders, Leitel says he’s certain it A database lists the primary energy consumption and car- bon dioxide emissions associated with different materials. To maximize the environmental compatibility of trains, workers in Allach install, among other things, highly energy-efficient LED signal lights. Siemens locomotives are designed to be efficient — for instance by returning braking energy to the grid that is generated when traveling downhill. tem to control traffic lights on the basis of traf- fic volumes, with a view to smoothing traffic flow and to preventing gridlock. Holistic Approach. “Vienna is pioneering a holistic mobility strategy. And the city is now putting our complete mobility concept into practice,” says Grundmann. The goal of the complete mobility approach is to network dif- ferent transport systems with one another as effectively as possible. “The realization of this complete mobility concept involves close cooperation with Siemens IT Solutions and Services,” Grund- mann explains. The fruits of this collaboration include a control system for public transport called “PTnova” that was developed with Wiener Linien and is now running as a pilot project. PTnova controls all sales-related processes such as ticketing, customer management and the administration of season tickets. It also automates the entire data flow. Any mobile or static ticket machines, ticket printers, and point-of-sale systems can be connected to PT- nova. “The use of enhanced information and communications technology can make mobil- ity chains more efficient and public transport more attractive,” says Grundmann. PTnova’s capabilities are exactly in line with the recommendations of transport experts from MRC McLean Hazel. Their study proposes the use of so-called personalized smart media for the city. This smart card-based application would combine ticketing not only with access to leisure activities — for example, entry to museums, libraries, and swimming pools — but also with special incentives such as bonus schemes for saved CO 2 emissions. As a result, it would help to attract more customers to public transport. Nikola Wohllaib In Brief Multiple studies have confirmed that we face climate change brought about by green- house gases such as CO 2 . To ensure the ef- fects remain manageable, the earth’s temper- ature must not rise by more than two degrees Celsius. One way to accomplish this is through energy-efficient solutions that can rapidly and substantially reduce power con- sumption in advanced economies. A study of a hypothetical city provides insight into how such solutions could work in practice. (p. 68) China’s dramatic economic growth is primarily fuelled by coal. In 2006 alone, 176 coal-fired power plants went on line — an av- erage of one every two days. Thanks to new technologies from Siemens, however, power generation using coal is becoming increasingly efficient and sustainable — as shown by the Yuhuan plant, which achieves a world-record efficiency of 45 percent (p. 76) Siemens is developing 700-degree Celsius technology in order to further boost the effi- ciency of coal-fired power plants and thus cut CO2 emissions. This higher steam tempera- ture is expected to make it possible to achieve 50 percent efficiency. (p. 78) Experts worldwide are working on concepts for generating power from coal without releasing CO 2 into the atmosphere. Siemens is investing in the IGCC process, which re- moves CO 2 before combustion, and flue-gas purification methods that separate CO 2 after- wards. Scientists based in Potsdam are study- ing how carbon dioxide can be sequestered underground and what happens to it there. (pp. 82, 85) For power plants, efficiency is absolutely vital. Largely due to the economic crisis, many operators are avoiding major new capital ex- penditures and are modernizing existing plants instead. Thanks to smart upgrades, fossil-fuel power plants can increase their effi- ciency by between 10 and 15 percent. (p. 88) At many open-pit mines, mechanical mon- sters excavate and transport ore. Siemens is equipping these behemoths with electric drive systems that can move loads of up to 600 tons. T he motors are supported by current collectors that draw power from overhead lines as if they were streetcars, making these mining giants fast and efficient. (p. 92) In an interview, Rajendra K. Pachauri, Nobel Peace Prize Laureate and Chairman of the Inter- governmental Panel on Climate Change, says he hopes India will make comprehensive use of renewable energies and provide the poorest of its citizens with access to these energy source. Siemens is developing such kinds of regionally customized solutions, including mobile water treatment systems and small power plants that generate electricity from coconuts. (p. 84) Osram has studied the life cycles of various lamps from production to disposal. The result: The life cycle assessment is largely determined by energy consumption during their operation, with only a small fraction of consumption at- tributable to lamp production.The key to mak- ing lamps more environmentally friendly is thus making them more energy-efficient. (p. 103) Energy-efficient products are helping to decouple growth and energy consumption. Two examples illustrate this point. Modern locomotives built in the most environmentally possible way, in accordance with eco-balances, and the blueTherm tumble drier that consumes half as much as conventional dryers. (pp. 110, 113, 121) LINKS: Siemens Energy Sector www.siemens.com/energy Siemens Mobility Sector www.siemens.com/mobility Siemens Building Technologies www.buildingtechnologies.siemens.com EU-Project CO2 SINK: www.co2sink.com Deutsches GeoForschungsZentrum (GFZ) www.gfz-potsdam.de EPEA Internationale Umweltforschung www.epea.com Intergovernmental Panel On Climate Change (IPCC) www.ipcc.ch Reprinted (with updates) from Pictures of the Future | Fall 2009 125 Traffic control centers, low-floor streetcars (pictured left) and many other measures have helped turn the Austrian capital into a role model for holistic mobility concepts. A Model of Mobility Even a city like Vienna, which boasts an excellent public transportation system, can gain added attractiveness through the use of the latest mobility concepts. A ccording to “Megacity Challenges,” a study Siemens commissioned from UK transport consultants MRC McLean Hazel in 2007, the central problem facing cities with ten million or more inhabitants is how to ensure mobility. In a follow-up analysis — “Vienna: A Complete Mobility Study” — the same company has now shown that the study’s conclusions also apply to smaller cities such as Vienna, with its 2.5 million inhabitants. Transport experts from MRC McLean Hazel confirm that Vienna is one the world’s most attractive places to live and a model city for modern mobility. As a key trans- port and logistics hub at the heart of Europe, Vienna is currently reaping the rewards of a long-term strategy that embraces all modes of transport. What’s more, the city plans to ex- pand its public transport infrastructure while assigning a low priority to automobile traffic in the city center and promoting the interests of cyclists, and pedestrians . “The study shows how successful Vienna has been in implementing an efficient trans- port strategy that could serve as a model for cities everywhere,” says Dr. Hans-Jörg Grund- mann, CEO of the Siemens Mobility Division, in reference to Vienna’s “Transport Master Plan 2003,” which covers the period until 2020. The Greater Vienna area has 227 kilometers of streetcar tracks, one of the largest streetcar networks in the world. The mass transit net- work run by transport operator Wiener Linien is over 960 kilometers in length, including 116 subway, streetcar, and bus lines with 4,559 stops, from which any location in the city can be reached within 15 minutes on foot. On weekdays, public transport accounts for up to 35 percent of total traffic, one of the highest mass transit quotients in the world. Wiener Linien plans to increase this share to 40 percent by 2013 with capital expenditures of €1.8 billion, some of which will be used to extend existing subway lines and build new streetcar lines in outlying districts. Summer 2009 saw the launch of an over - arching transport management system that benefits 200,000 commuters each day. The system provides route planning and calculates travel times in real time across all modes of transport. It is supported with a host of traffic data, most of which is gathered and processed by sensor systems from Siemens. “We’ve already provided a lot of a products and solutions in- volved in the implementation of Vienna’s transport master plan,” says Grundmann. These solutions include 44 high-speed trains for intercity connections and 40 subway trains as well as the associated control, signaling, and safety technology; 300 ultra-low-floor streetcars, which Siemens is delivering to the city’s transport operator at the rate of 15 to 20 per year; and, last but not least, a Siemens sys- Energy Efficiency | Vienna 124 Reprinted (with updates) from Pictures of the Future | Fall 2009 Lots of Light for Little Power Outfitting traffic lights with light-emitting diodes (LEDs) can help cities slash their power costs. These tiny 10-watt light sources consume between 80 and 90 percent less electricity than the lamps in conven- tional stoplights. What’s more, to ensure safety, con- ventional lamps have to be replaced every six to 12 months, whereas LEDs are genuine long-burners. “They run for around 100,000 hours, which means they only have to be changed every ten years,” ex- plains Dr. Christoph Roth, product manager for signal generators at the Traffic Solutions Business Unit of the Siemens Mobility Division. When replacing conventional bulbs with LEDs, it makes sense to renew the control unit and convert the light to 40- volt LED circuitry. “That means you can use signal light units with only six or seven watts,” says Roth, who estimates that the upgrading of traffic lights at 700 intersections can save a city €1.2 million a year. For Germany as a whole and its 80,000 or so traffic lights, the reduction in power consumption alone would bring savings of €140 million. Fitted with conventional lamps, Germany’s traffic lights would consume 1.3 billion kilowatt-hours a year. Refitting with LEDs has cut that figure to 175 mil- lion kWh — which corresponds to a reduction in generating capacity from 180 to 24 megawatts. “Municipalities can recoup the costs of replacing conventional lamps with LEDs within two to four years,” Roth explains. “There are very few towns and cities in Germany that haven’t already converted in part to LEDs, and it’s a trend we’re also seeing worldwide.” In Europe, for example, Vienna (pic- tured above) and Budapest have already fully converted. In Germany, Freiburg, Memmingen, and Mannheim have all taken advantage of a customized financing solution provided by Siemens Finance & Leasing, a subsidiary of Siemens Financial Services. “Our financing model has terms of between four to 15 years, with the repayment schedule calculated on the basis of potential savings, which makes it very flexible compared to standard municipal loans,” explains Jörg Dethlefsen, a member of the executive management at Finance & Leasing. Freiburg, for example, has converted 53 traffic lights to LEDs, a move that has brought it annual savings of €155,000 since 2006. These savings will finance the repayments over the 15-year term of the loan and then flow into city coffers. “Assuming the potential savings have been properly calculated, our financing solution won’t pose any financial risk for the city in question. What’s more, it gives municipalities the scope to invest in other areas,” Dethlefsen adds.Nikola Wohllaib Reprinted (with updates) from Pictures of the Future | Fall 2008 127 Shrinking our Footprints Pictures of the Future | Sustainable Infrastructures for London 126 Reprinted (with updates) from Pictures of the Future | Fall 2008 C ities play a crucial role in the fight against climate change. They already account for over half the world’s population, and six out of every ten people on earth will be living in cities by 2025. Cities and their residents are also re- sponsible for approximately 80 percent of the greenhouse gases emitted worldwide, a dispro- portionately large amount. Big cities are very aware of this problem, as a study entitled “Megacity Challenges” showed (see Pictures of the Future,Spring 2007, p. 14). But when big cities must choose between environmental pro- tection and economic growth, the environment often loses out. But economic viability and environmental protection don’t have to be at odds. Researchers taking part in the “Sustainable Urban Infrastruc- ture” project, which was carried out with sup- port from Siemens, have for the first time deter- mined the potential and costs of technologies for preventing greenhouse gases in cities. Using London as an example, management consult- London plans to cut its greenhouse gas emissions by up to 60 percent by 2025. A Siemens-McKinsey study shows how it can meet its objective. ants McKinsey & Company analyzed more than 200 technological abatement levers that would reduce the city’s CO 2 emissions by almost 44 percent by 2025 relative to the 1990 figure of about 45 million metric tons, in addition to cut- ting water consumption and improving waste disposal. Many of the levers they identified also make good sense in economic terms. For exam- ple, nearly 70 percent of the potential annual savings of almost 20 million metric tons of CO 2 identified for London can be achieved with the help of technologies that pay for themselves, largely by reducing energy costs. Over their life- times, in other words, they result in no addi- tional costs, but actually help to save money. Ambitious Aims. The British metropolis has its work cut out for it. By 2025, London intends to reduce its greenhouse gas emissions by 60 per- cent relative to the Kyoto base year of 1990 — an ambitious but, as the study shows, feasible objective. Technologies alone could cut London’s CO 2 emissions by 44 percent by 2025 relative to 1990 levels. This would enable it to meet its Ky- oto objective (a reduction of 12 percent by 2012). For comparison, the EU’s target is a re- duction of 20 percent by 2020, and the national target of the British government is a reduction of 30 percent by 2025. T The city’s 60 percent target could be brought within reach by means of new regulations, changes in the public’s behavior (fuel-saving driving, use of public transit, and lowering ther- mostats) and future technological innovations. Effectively applying all the analyzed abate- ment levers by 2025 would require an additional investment of about €41 billion, less than one percent of London’s economic output. This roughly matches the results of the 2006 report by Sir Nicholas Stern, which put the costs of stemming the greenhouse effect at up to one percent of global gross domestic product per year. On the other hand, accepting an Source: © Copyright 2008 McKinsey & Company Values per year (2005 or most recent available before) CO 2 emissions — transport kg CO 2 /person CO 2 emissions — buildings kg CO 2 /person London New York City Stockholm Rome Tokyo CO 2 emissions — industry kg CO 2 /person Air pollution kg particulate matter (PM 10 )/person Domestic waste kg/person Water m 3 /person 5,000 1,000 2.5 200 750 2,500 Source: © Copyright 2008 McKinsey & Company Comparative Emission Targets Mt CO 2 Reduction* 1990 2005 2012 Kyoto 2020 EU 2025 UK 2025 London 2025 After identified abatement levers * compared with 1990 levels 45.1 47.0 39.5 36.1 31.6 -12.5% -20.0% -30.0% 25.4 -43.7% 18.0 - 60.0% Greenhouse Gas Abatement Cost Curve for London 2025 from Decision-Makers’ Perspective Source: © Copyright 2008 McKinsey&Company Source: © Copyright 2008 McKinsey&Company 2000 1800 1600 1400 1200 1000 800 600 400 200 0 -200 Abatement costs €/t CO 2 2 4 6 8 10 12 14 16 18 Diesel engine efficiency package Gasoline engine efficiency package Lighting in private households Domestic appliances Gas engine in combined heat and power systems Horizontal axis shows the CO 2 savings potential in millions of metric tons per year, and the vertical axis shows the cost per metric ton of CO 2 emissions avoided. Values below zero are negative costs, i.e. savings. Biofuels Newly built homes with ex- tremely high en- ergy efficiency Replacing coal with gas Double glazing Exterior wall insulation Nuclear power Wind power facilities offshore Heat recovery Floor insulation Wind power facilities onshore Roof Insulation Lighting (commercial) Heat from existing power plants Potential Mt CO 2 Optimization of building automa- tion systems Comparative Environmental Footprints unchecked rise in temperatures could cost five to ten percent of global economic output, ac- cording to the former chief economist of the World Bank. Results of the “Sustainable Urban Infra- structure” Study: The greatest potential for savings lies in Lon- don’s buildings. They are responsible for about two thirds of total CO 2 emissions in the city. Per capita, that represents 4.3 metric tons (t) of CO 2 per year, a high value compared to other cities. The corresponding figure in Tokyo is 2.9 metric tons of CO 2 per year; in Stockholm it’s only 2.6. By 2025 about ten million metric tons of Lon- don’s CO 2 could be eliminated through better in- sulation of Victorian buildings, more energy-effi- cient lighting and modern building automation systems. And almost 90 percent of that reduc- tion would pay for itself thanks to the resulting energy savings. Greenhouse gas emissions in transport could be reduced by 25 percent by 2025 — a reduc- tion of 3 million metric tons of CO 2 per year. Here, higher-efficiency cars are the most impor- tant abatement lever. They could help to elimi- nate more than 1.2 million metric tons of CO 2 . And it would be possible to eliminate another 400,000 metric tons of CO 2 in local public trans- port by using hybrid buses, for example, which consume 30 percent less fuel than conventional diesel buses. When it comes to power generation, London could eliminate another 6.2 million metric tons of CO 2 . At the local level, various combined heat and power plants offer the greatest potential: 2.1 million metric tons of CO 2 savings per year. An additional 3.7 million metric tons could be achieved at the national level if plant operators were to rely on renewable energies and gas in- stead of coal for the generation of electricity, for instance. London’s water supply network is roughly 150 years old and loses over 30 percent of the water fed into its 4,800 kilometers of lines. This means enough water to fill 350 Olympic-size swimming pools seeps into the ground every day. So for each liter of water not consumed, almost 1.5 liters less must be pumped into the system. By 2025, about 65 million cubic meters of water could be saved annually — some 13 percent of total consumption — through economically rea- sonable measures like dual-flush toilets or more efficient washing machines and dishwashers. About 64 percent of London’s municipal waste is currently disposed of in landfills — a large amount compared to cities such as Tokyo and Stockholm. Given the high and rising landfill fees and taxes in Great Britain, there are eco- nomically attractive alternatives to garbage dis- posal in landfills. Raw materials can be recycled, and modern technologies can be applied to do- mestic waste for the purpose of creating new energy sources, whether by converting it into biogas or through direct combustion. The en- ergy thus extracted can be used to supply thou- sands of households with electricity and heat. People Made a Difference. The study also shows that urban initiatives should not be lim- ited to CO 2 reductions. It’s equally important to achieve greater consumer acceptance of energy- saving technologies. About 75 percent of the potential reduction in CO 2 levels could be real- ized by individuals and businesses in London if they opted for more efficient technologies such as energy-saving lamps and more economical cars. Changes in regulations, taxes and subsi- dies, better financing opportunities, and educa- tion campaigns can help to change consumers’ attitudes and encourage them to make deci- sions that are not only economically efficient but also environmentally sound.Petra Zacek Where London Can Save the Most CO 2 Mt CO 2 2005 Costs < 0 €/t CO 2 (=cost savings) Costs > 0 €/t CO 2 47.0 Change to 2025 1.8 2025 45.2 Buildings Transport Decentralized power and heat generation Central power gen- eration 2025 after abatement levers Decrease due to identified abatement levers 10.6 3.0 2.5 3.7 25.4 9.2 1.4 1.2 1 .8 1.1 1.4 2.7 1.0 Condensing boilers Abatement levers that also make economic sense (13.4 Mt of CO 2 savings) Reprinted (with updates) from Pictures of the Future | Spring 2009 129 Paths to a Better Planet Effective steps to cut emissions in urban areas can have profound effects on the envi- ronment. A new study based on the city of Munich shows how a major metropolitan area could make itself virtually carbon-free within a few decades. Most of the technol- ogy that’s needed is already available — and putting it to work would save money. How can a modern city, despite population growth, reduce carbon emissions without hav- ing to compromise on living standards or risk- ing a slowdown in economic growth? This is the question that has occupied researchers from Germany’s Wuppertal Institute for Cli- mate, Environment and Energy with the sup- port of Siemens. Their study “Munich — Paths toward a Carbon-free Future” presents a de- tailed look at what the city can do to minimize its environmental footprint between now and 2058. The study concludes that it is possible to transform a city like Munich into a practically carbon-free area. This, it says, will require close cooperation between municipal authorities, energy companies, and the population, along with a clear commitment to efficient technolo- gies, ranging from energy-saving refrigerators to power plants, as well as a general willing- ness to invest in greater use of renewable en- ergy sources such as wind, solar power, bio- mass, and geothermal energy. Cutting CO 2 by 80 to 90 Percent. The study sketches two alternative scenarios for Munich. The so-called “target scenario” adopts the very optimistic view that the vision of a carbon-free future can be more or less achieved over the 50-year span under consideration in the study. Another scenario — the so-called bridge scenario — is somewhat more conservative and assumes, for example, that increased effi- ciency in power generation will be offset by rises in demand and that individual transporta- tion will remain similar to its present-day form. Nevertheless, the results are impressive in both cases. The optimistic target scenario predicts that through the implementation of compre- hensive efficiency measures the average CO 2 emissions per inhabitant can be curbed by around 90 percent to 750 kilograms per an- num by the middle of the century. The more conservative bridge scenario, on the other hand, results in a average CO 2 reduc- tion of almost 80 percent to approximately 1.3 metric tons. In comparison, on the basis of the IPCC World Climate Report of 2007, the Euro- pean Union’s environmental ministers came up with a target of reducing greenhouse gas emis- sions worldwide by over 50 percent and thereby to an average figure of less than two metric tons per capita. Both of the Munich sce- narios undercut this target substantially. The Munich study analyzes in detail which measures will achieve the greatest reduction in CO 2 emissions and whether they are economi- cal. Almost half of Munich’s CO 2 emissions are the result of energy used to heat the city’s homes and buildings. Improving the insulation of roofs, facades, and basements would thus Source: City of Munich, 2008; Stadtwerke München; estimates by Wuppertal Institute, 2008 Munich’s Energy Requirements in 2008 CO 2 emissions from energy sector 8.2m t CO 2 per annum Losses resulting from power generation and transmission as well as energy consumption in the energy sector: 11.4 TWh = 30% Total energy requirements: 29.0 TWh per annum From coal 2.4m t From natural gas 3.2m t From crude oil 2.6m t Primary energy 40.4 TWh per annum Coal 7.4 TWh Space heating and process heat 7.5 TWh Electricity 4.3 TWh Space heating 9.5 TWh Electricity 2.5 TWh Electricity 0.3 TWh Natural gas 15.8 TWh Crude oil 9.7 TWh Renewables 1.0 TWh Trade + Industry 11.8 TWh Households 12.0 TWh Transportation 5.3 TWh Fuel 5.0 TWh Figures rounded, 1 TWh = 3.6 PJ = 122,700 t hard coal equivalent Nuclear power 6.5 TWh C ities are attractive places to live. They promise work, a vibrant cultural life, and a host of leisure activities. All of which is very true of Munich, Bavaria’s capital. From here, it’s only a short hop to go climbing or skiing in the Alps, to reach crystal-clear lakes, or to drive to Italy and the Mediterranean. Little wonder then that Munich is one of the few cities in Ger- many that is set to grow in the coming decades. Although an exception in Germany, the city is, however, very much in line with the trend toward ever-larger metropolitan areas. In the world’s newly industrializing and de- veloping countries people flock to cities in search of work and education and in hope of a better life. And last year a watershed was reached. In 2008, for the first time ever, half of the world’s population lived in cities. By 2050 this figure is forecast to grow to 70 percent. This will result in huge urban sprawls that con- sume resources and pollute environments. Although metropolitan areas cover only one percent of the earth’s surface, they are respon- sible for 75 percent of the world’s energy con- sumption and 80 percent of greenhouse gases, not least carbon dioxide (CO 2 ). As such, they are storing up trouble for themselves, since ex- perts expect cities to be seriously affected by climate change. Shanghai, for example, is likely to suffer from storms and heavy rains, and Ger- many’s Federal Environment Agency predicts that by the end of the century Munich will see a significant increase in the number of hot days and “tropical” nights each year. Is there any good news about cities? Well, yes. The very fact that they are not only the biggest culprits in climate change, but that they are so concentrated offers a good oppor- tunity to tackle the problems they cause, since the key levers for climate protection have their biggest impact here. The major metropolitan areas of the world are thus in a unique position to lead the way to more environmentally- friendly modes of living and doing business. 128 Reprinted (with updates) from Pictures of the Future | Spring 2009 Pictures of the Future | Study of a Carbon-Free Munich yield significant savings. It is therefore crucial not to scrimp in this area. In fact, the study as- sumes that the refurbishment of existing hous- ing in Munich will conform to the Passive House standard and that all future housing will also conform to this standard. This includes the use of not only the best insulation and vac- uum-insulated windows but also ventilation systems that recover residual heat from the houses’ exhaust air before it is blown outside. Based on the above steps, the study finds that it should be possible to reduce heating re- quirements for existing buildings from the cur- rent figure of around 200 kilowatt-hours per square meter per annum (kWh/m 2 a) to be- tween 25 and 35 kWh/m 2 , while new housing will require only between 10 to 20 kWh/m 2 a. At the same time, new buildings are to be fitted with solar power systems, so that most of them will be able to cover their remaining en- ergy requirements autonomously and even feed excess energy into the grid. In order to en- sure that the energy efficiency of most build- ings is raised to the requisite level over the next 50 years, the rate at which such refurbishment is being carried out must increase from the cur- rent figure of 0.5 percent to 2.0 percent per an- num. This means that four times as many homeowners must implement such energy im- provements than is currently the case. The idea of improving the energy efficiency of a city like Munich on a more or less wholesale basis over 50 years sounds like a major chal- lenge. Yet such efforts are worthwhile. Although it is more expensive to build according to the Passive House standard than to implement the Energy Conservation Act of 2007, the additional costs involved in such refurbishment and the construction of new housing would amount to around €13 billion for the entire city of Munich. That would mean extra costs of approximately €200 a year per inhabitant — around one third of an average annual gas bill. By 2058, how- ever, this additional investment would be offset by energy savings of between €1.6 and €2.6 billion per year, which translates into an annual sum of between €1,200 to €2,000 per inhabi- tant. The refurbishment of existing and con- struction of new housing in line with the Passive House standard would result in energy savings of more than €30 billion by 2058. Moreover, this scenario also applies to other areas, since the study comes to the conclusion that meas- ures designed to enhance efficiency generally pay for themselves over their lifetime. Home Power. Of course, insulation is by no means the end of the story. More has to be done if CO 2 emissions are to be cut to almost zero. Greenhouse gas emissions can also be re- duced by the use of combined heat and power (CHP) systems. Such heating systems are par- ticularly efficient, since they utilize around nine tenths of the energy contained in their primary fuel. Both Munich scenarios also assume that the use of district heating will rise from the cur- rent figure of 20 percent to 60 percent. This is not an unrealistic proposition. In Copenhagen, for example, around 70 percent of all house- holds are heated this way. Other measures designed to reduce CO 2 emissions include the use of economical elec- Sources of Munich’s Energy Mix 0 Reference (2008) Target (2058) Bridge (2058) TWh per annum 1 2 3 4 5 6 7 8 9 Total: 8.03 Total: 5.28 Total: 7.44 Coal-fired power plant with CCS Solar-thermal electricity generation Wind power on-/offshore Biomass Geothermal Hydroelectric Photovoltaic Decentralized CHP Centralized CHP 0.16 0.79 1.18 0.37 0.68 0.38 0.28 1.44 2.75 LPT electricity LPT biofuel LPT fuel (fossil) MIT electricity MIT biofuel MIT fuel (fossil) TWh per annum 0 Reference (2008) Target (2058) Bridge (2058) 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 Total: 4.32 Source: Wuppertal Institute, 2008 Power generation: Accounts for 40.3% of CO 2 emissions in Munich (2008) 40.3% Public transport: Accounts for 12.6% of CO 2 emissions in Munich (2008) 12.6% Munich’s Transport Energy Mix MIT: Motorized Individual Transport LPT: Local Public Transport CCS: Carbon Capture & Storage -54% -32% Total: 1.99 Total: 2.92 Pictures of the Future | Special Edition on Green Technologies 131 Would you like to know more about Siemens and our latest developments? | Feedback I would like a free sample issue of Pictures of the Future I would like to cancel my Pictures of the Future subscription My new address is shown below Please also send the magazine to… (Please check the respective box(es) and fill in the address): Title, first name, last name Company Department Number and street ZIP, city Country Telephone number, fax or e-mail Brochure European Green City Index — Assessing the environmental impact of Europe’s major cities Brochure Sustainable Urban Infrastructure — London Edition, a view to 2025 Pictures of the Future,Fall 2009 (German, English) Pictures of the Future,Spring 2009 (German, English) Pictures of the Future,Fall 2008 (German, English) Pictures of the Future,Spring 2008 (German, English) Pictures of the Future,Fall 2007 (German, English) Pictures of the Future,Spring 2007 (German, English) Pictures of the Future,Fall 2006 (German, English) Additional information about Siemens’ innovations is available on the Internet at: www.siemens.com/innovation (Siemens’ R&D website) www.siemens.com/innovationnews (weekly media service) www.siemens.com/pof (Pictures of the Future on the Internet, with down- loads — also in Chinese, French, Spanish, Portuguese, Russian, and Turkish) We will be glad to send you more information. Please check the box next to the publication you wish to order and the language you need, and fax a copy of this page to +49 (0) 9131-9192-591 or mail it to Publicis Publishing — Susan Süß — Postfach 3240, 91050 Erlangen, Germany, or e-mail it to publishing-address @publicis-erlangen.de. Please use “Pictures of the Future, Special Edition” as the subject heading. Available issues of Pictures of the Future: that the cost of refurbishing existing structures and building new ones in line with the Passive House standard would be offset by savings in energy that would have been consumed for heating. The savings would be sufficient to fund the creation of a carbon-free district heating distribution system powered by geothermal en- ergy. In other words, investment in a carbon-free supply of heating would not only reduce emis- sions substantially but would also save the dis- trict an average of €4 to €6.5 million per annum. It must be remembered that private individ- uals and the business sector also have a role to play in boosting energy efficiency, since in many cases it is they who must choose be- tween traditional technology and a more effi- cient but often, at the outset, more expensive alternative. This applies equally to the con- struction of housing, electric appliances, and industrial motors. Yet the study emphasizes that this often involves merely a change in be- havior, not a compromise in the quality of life. Frequently it is high costs that prevent a whole- sale shift in attitudes and the widespread use of low-energy technology. And frequently this is because consumers fail to appreciate the po- tential savings in energy costs over a full prod- uct lifetime. However, experience clearly shows that people’s behavior can be nudged in the right direction by the use of appropriate finan- cial assistance and incentives combined with targeted information campaigns. The study therefore concludes that greater energy effi- ciency is chiefly interesting when it makes sound financial sense. And that is almost al- ways the case. Tim Schröder Source: Estimate by Wuppertal Institute, 2008 CO 2 Emissions Per Capita Annual CO 2 per capita (in kg) 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 Reference (2008) Target (2058) Bridge (2058) 6,549 -89% -80% 750 1,300 CO 2 Emissions by Sector Source: Estimate by Wuppertal Institute, 2008 Thousands of metric tons CO 2 p.a. 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 Target (2058) Bridge (2058) Reference (2008) -87% -79% Passenger transport Commercial transport Power and heat from CHP (coal) Power and heat from CHP (natural gas) Heat from CHP (natural gas) Power from CHP (natural gas) Power generation (coal with CCS) Direct heat generation (heating oil) Direct heat generation (natural gas) Percentage of CO 2 emissions in Munich (2008) resulting from heating of buildings: 46.5% 46.5% 20% 20% 60% 0 2 4 6 8 10 12 14 16 18 22% Total: 17.0 Source: Wuppertal Institute, 2008 Building Heating by Source TWh per annum Reference (2008) Target/Bridge (2058) 1% 77% District heating Decentralized CHP Direct supply of heat -79% Total: 3.5 CHP: Combined heat and power 130 Reprinted (with updates) from Pictures of the Future | Spring 2009 Pictures of the Future | Study of a Carbon-Free Munich tric appliances and lighting as well as renew- able and low-carbon energy sources such as photovoltaic systems, solar collectors, and ge- othermal systems. The study assumes that electricity will be increasingly generated on a decentralized basis — for example, by CHP plants for individual areas of the city or even micro CHP units for individual buildings, which supply not only heat but also electricity for resi- dents (see p. 116). According to the study, if all the opportuni- ties to save electricity were rigorously exploited — from stoplights to tumble driers — the power consumption of a city like Munich could be largely satisfied by renewable sources. The study assumes that the city will continue to ob- tain electricity from larger power plants in the region as well as further afield in Germany and abroad. Such power could be generated essen- tially by large offshore and onshore wind farms in northern Europe or by solar-thermal power plants in southern Europe or northern Africa and then transported to the cities of central Europe via low-loss HVDC transmission lines. Some of this power could also be generated in low-carbon power plants equipped with tech- nology for carbon capture and storage. Plugging Cars into the Picture. One of the most striking changes investigated by the study is the massive shift to electric cars. It is likely that by the middle of the century most car trips in the Munich area will be made in electric ve- hicles. For longer trips, people will probably still use hybrid or highly efficient diesel or gasoline cars. The large number of electric vehicles in Munich will also help to buffer fluctuating loads from photovoltaic and wind sources, whose out- put of electricity differs according to the weather and the time of day. When power is plentiful (and therefore cheap), electric car batteries will serve as an intermediate storage system. At times of high demand (and peak rates), they will feed some of their power back into the grid. At the same time, better town planning can help reduce the amount of traffic in Munich and therefore reduce its CO 2 emissions. Both scenar- ios are based on reduced travel requirements. Instead of building shopping malls on green field sites, the study favors urban neighborhoods in which homes, workplaces, and stores are close to one another. That way, many more trips can be completed on foot or by bicycle. The authors also advocate making public transit more com- fortable in order to encourage its increased use. In addition to analyzing Munich as a whole, the study presents a detailed plan of how to improve energy efficiency in an actual district on the periphery that contains both old and new housing. The authors conclude that it would be possible to create a low-carbon neighborhood within a 30-year period. Moreover, they say www.siemens.com/pof © 2009 by Siemens AG. All rights reserved. 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