Siemens hopeful over Masdar deals

Peter Ward , February 2nd, 2010

Utilities-ME.com talks to Ralf Christian, CEO, power distribution, Siemens about what the company has to offer the Masdar City project.

What does Siemens offer which is unique to the company?

Siemens overall is a company that is covering the whole electricity and energy portfolio. We have nearly all technologies available to us. It goes from the generation to the distribution and into power consumption. We have a unique position because we are the only company that covers the whole chain.

Are you hoping to secure work in Masdar City?

Masdar has a huge potential to become a benchmark of a clean city and we are extremely interested in working together with Masdar. As we have a strong portfolio there are a number of different elements which could be of interest to Siemens, for example the smart power grid, technology for smart buildings, even the transportation. So there are a lot of angles where Masdar could work with Siemens.

We have excellent contacts with Masdar and we have already been in touch with them and there has been a lot of analysis of their requirements and we are confident we can become one of their important partners in the future for different elements of what is required in Masdar City.



What challenges are facing the energy sector?

When I relate it to the energy business, I think the most important challenge is that the easy energy of the past has come to an end so we have to remodel the complete energy infrastructure globally and incorporate the renewable technology. And with most of those renewable energies we cannot just switch on and off whenever you like it, like with wind power and solar power.

So this requires a different type of management for the system. In the past it was easy, whenever you had more consumption you increased generation. But if you want to be CO2 free it is more about storage and more about managing consumption as well. In the past consumption side could do whatever you wanted to do, at whatever time of day you could use energy. In the clean future we need to have a balance and manage both consumption and generation. That requires a different set up of the grid, a lot if intelligence and communication technologies.

What lessons were learnt in 2009?

There were many lessons learnt in 2009, I think unfortunately there is a linkage between the financial system and what we call the real economy. Even though the basic need for power worldwide is huge, the population is growing, and the comfort of people goes in line with this, there is a huge demand for power.

Because of the crisis a lot of future investments have been put on hold for some time. So we see this in some markets where projects are being moved out because of unsure financing even though they need it there. I think it will be a dip because of financing problems but then it will come back quite quickly. I think with the energy markets this is just a delaying process, and we are going to see some good pros in the next years as we recover the time lost in those years.

What new technology can Siemens boast?

In the energy fields we have been reaching on the gas turbine side a very high level of efficiency with technology. This is going beyond the 60% benchmark in a combined cycle, which is a world record. There is technology currently being built which is a 1,500km distance of power transmission. Siemens is building this in China.

With a transmission capacity of 5000 megawatts (MW) und covering a distance of more than 1400 kilometers the Yunnan-Guangdong high-voltage direct-current transmission system (HVDC) recently is the world’s most powerful of its kind implemented. Siemens is thus setting new benchmarks in energy-efficient transmission of eco-friendly electricity. High voltage direct current (HVDC) is the method of choice for spanning distances of over 600 kilometers (400 miles). From about this distance upwards, HVDC is the most cost-effective solution because the line losses are considerably lower than with AC power transmission.

How can this be practically implemented?

In this region you have a lot of solar power available, but the major consumption is further north. So if you think about the distance you could easily imagine in the Middle East having a lot of solar power generation sites and then you have a few lines moving north. With technology today you can sell it in Germany or Greece or Italy. The loss is only 6-7% so it is hugely efficient.