Background Information Orlando, June 2014
USA’s clean energy made by Siemens Background: Energy Infrastructure in the U.S. The U.S. electricity market is besides China the world’s largest and accounts for onefifth both of global power demand and generation capacity. In 2009, President Obama made a pledge that by 2020, America would reduce gas emissions in the range of 17 percent below 2005 levels. According to Enerdata, the US consumed 3,798 terawatt hours (TWh) of electricity in 2012. Only China consumed more: 4,281 TWh. Power plants are the largest concentrated source of emissions in the U.S., together accounting for roughly onethird of all domestic greenhouse gas emissions. Generation by coal accounted for roughly half of the United States power generation as recently as 2008, but plunged to a mere 41 percent in 2013 – a drop primarily attributable to the availability of cheap natural gas. In 2012, gas production grew to a share of 26 percent. The aging of the existing infrastructure beyond its intended lifetime has led to a displacement of coal. In the U.S., the average age of large coal-fired power plants is approximately 40 years, urging the need for replacement with advanced, much more efficient power plants. The shift from oil and coal to domestic gas combined with highly efficient plants, not only pays off economically, but also benefits the environment: The U.S. carbon footprint today is at the level it was in 1994. The shale gas story is a true game-changer in the U.S., a catalyst for a more diversified energy mix. While demand for energy in the U.S. slowed when the economic crisis began in 2007-8, it is now slowly rising again. Capacity additions in the country’s power generation market are projected to increase from 13.1 gigawatts a year in 2013 to 22.4 gigawatts by 2016. Natural gas-fired power plants will dominate here. In fact, gas-fired power generation will unseat coal as the No. 1 source of U.S. generation by 2022. Old coal-fired power plants are being decommissioned and dismantled. At the same time, numerous highly efficient combined cycle power plants using the latest technology are being built. In addition, wind power is growing in importance. Today, the cost of power generation with wind at favorable locations is not much higher than with conventional fossil sources. And the combination of gas and wind is the most compatible for the country’s in part aging power grid infrastructure. Modernization of the country’s aging energy infrastructure has begun and the U.S. is placing a new focus on gas as well as the further development of wind power, laying the foundation for secure energy supplies over the coming decades. And precisely with this combination of energy sources, the U.S. is establishing an economical energy supply that is also well on the way toward ensuring sustainability.
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Siemens AG
Background Information
Siemens is the reliable partner for the U.S.’ clean energy future Siemens’ power generation solutions help meet one-third of America’s total electricity needs every day. Furthermore, Siemens’ energy management and high-voltage systems help to ensure the continuous reliability of one-third of America’s transmission grid and increase the capacity of existing transmission lines by as much as 24 percent. The company is one of America’s leading providers of equipment for wind power and is also a leading provider of long-term service and maintenance for fossil, industrial and wind energy power plants. State-of-the-art power plant technology and services from Siemens is supporting the upcoming energy transition in the U.S. The current administration plans to meet 25 percent of the country's electricity requirement with energy from renewable sources by 2025. Highly flexible combined cycle plants are beneficial here in two ways. First of all, they can offset the fluctuating electricity output at power plants that use renewable energy sources, and secondly, replacing older coal-fired plants with highly efficient combined cycle facilities substantially reduces CO2 emissions. General facts and figures for Siemens Energy, Inc. 10,700 employees in the U.S. Headquartered in Orlando, FL Orlando is also the global headquarters for the Energy Service division No. 2 provider of gas turbines in the U.S. No. 3 provider of wind turbines in the U.S. based on installed capacity Major manufacturing and service locations: Charlotte, N.C.; Fort Madison, IA; Hutchinson, KS; Houston, TX; and Jackson, MS References for Fossil Power Generation Siemens has sold 28 of its SGT-8000H gas turbine series worldwide down to the present day 13 to the U.S. alone. Six out of these are in commercial operation already. With an efficiency of more than 60 percent in combined cycle operation, this advanced, next-generation gas turbine technology offers highly flexible operation and industry-leading efficiency. In addition, the turbines can go from standby to startup in five minutes and reach full power operation in only 30 minutes. Florida Power & Light (FPL) tore down its 1960s-era Cape Canaveral Plant in 2010 to replace it with a newer and more fuel-efficient power plant: The new Cape Canaveral Next Generation Clean Energy Center, located just around the corner from NASA’s Kennedy Space Center, began commercial operation in midApril 2013. Riviera Beach Next Generation Clean Energy Center started commercial operation April 1st, 2014. FPL is committed to the switch to American natural gas. By converting its oil-fired plants to domestic natural gas, FPL reduced its oil consumption from over 40 million barrels in 2001 to less than 1 million barrels in 2012. This increased FPL’s independence of foreign oil imports by 98 percent. Three more units of the model SGT6-8000H gas turbine will also be installed at a similar new plant under construction in Port Everglades, Fla., USA. That project, FPL's Port Everglades Next Generation Clean Energy Center, is scheduled to enter operation in 2016.
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Siemens AG
Background Information
Both plants will benefit from Siemens’ long-term service and maintenance operations. As manufacturer of the SGT6-8000H, the company is uniquely positioned to provide service and maintenance of the units. One of the cleanest fossil fuel power plants in the U.S. is a facility made by Siemens. The Lodi Energy Center is a highly flexible combined cycle power plant: The 300-megawatt facility in Lodi, California, has an efficiency of more than 57 percent. The plant's fast run-up time enables it to feed 200 megawatts of electric power into the grid after just 30 minutes, which makes it perfect for balancing out energy production fluctuations at wind farms and solar power stations. Fossil Power Generation Recent Export Reference: The new La Caridad II combined cycle power plant is located in Sonora State, Mexico adjacent to the La Caridad I plant which is also being built by Siemens. Scheduled to begin commercial operation in summer 2014, it has an installed capacity of 250 megawatts in addition to the 250 megawatts to be generated at La Caridad I. Siemens was responsible for the full turnkey supply of La Caridad II, which includes plant engineering, procurement, and construction. Siemens also provides long-term service and maintenance for the major components at both La Caridad I and La Caridad II. The main equipment installed in the new La Caridad II plant includes an SGT6-5000F gas turbine (the first gas turbine exported from Siemens Charlotte, NC, manufacturing plant), an SST-900 steam turbine, an SGEN6-1000A generator, a heatrecovery steam generator, and the complete electrical and SPPA-T3000 instrumentation & control equipment.
U.S. Wind Power made by Siemens Headquarters of Siemens Wind Power and Wind Power Service for the Americas is in Orlando, Florida, USA Prior to 2007, Siemens imported wind turbines to the U.S. Since then, investment of more than $110 Million in wind energy and service in the U.S. Today not only does Siemens supply these components to U.S. projects, but it exports to Canada, Brazil, Chile, Peru, South Africa and Sweden. Export projects include: Oldman 2 Wind Project Customer: Mainstream Renewable Power Owner: IKEA Canada No. of turbines: 20 turbines Total rated MW output: 46 MW, equivalent to the consumption of 32 IKEA stores Located in Pincher Creek, Canada Expected to be online in 2014 Blades and nacelles Long-term service agreement El Arrayán Wind Project Customer: Pattern Energy & AEI No. of turbines: 50 turbines Total rated MW output:115 MW
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Siemens AG
Background Information
Located on the coast of the Coquimbo IV Region, Chile Expected to be online in 2014 Blades and nacelles from U.S. Long-term service agreement Siemens’ current position in the U.S. market: No. 3 in terms of cumulative wind installations in the U.S. and No. 2 in 2013 wind installation additions in the U.S. Wind power projects support more than 850 jobs at factories in Hutchinson, Kansas and Fort Madison, Iowa -> Made in USA; 1,900 total in U.S., including service In the U.S. alone, Siemens has installed more than 4,880 wind turbines with a combined generating capacity of more than 8,600 megawatts (MW), enough to power 2.5 million average American homes. Latest orders: Siemens received new orders in Texas and Iowa in first quarter of fiscal year 2014, including largest onshore wind turbine order ever in history for 1-GW from MidAmerican Energy – delivery of 448 wind turbines along with a service and maintenance agreement. This demonstrates that large investments continue to be made in wind. Lately announced: 205-MW Minnesota Power order for Bison 4 wind project in North Dakota. Order for 64 units of its latest evolution of 3-MW D3 platform wind turbines, as well as an agreement for service and maintenance. Direct drive turbine with increased annual energy output reduces the cost of electricity through its 113-meter rotor and 92.5-meter hub height. Blades, towers and major nacelle component sourced in the U.S. Once completed, the Bison Wind Energy Centers (IB, II, III and IV) will form the largest D3 platform installation in the world. In combination, they will be able to provide clean energy to almost 140,000 homes in Minnesota. Wind turbine supply agreement with Cape Wind: While the onshore wind industry is well developed in the U.S., the U.S. offshore wind resources still offer a vast, untapped source of renewable energy potential. Siemens will make its offshore wind turbine market entry with the first planned offshore wind farm in the U.S. Cape Wind has entered into an agreement with Siemens to supply 130 3.6-MW offshore wind turbines, which would be enough to provide clean, renewable energy to meet three-quarters of the electricity demand of Cape Cod, Massachusetts. Wind Service Safety and Technical Training Investing in wind service training: In September 2013, Siemens inaugurated its new, state-of-the-art wind service training center in Orlando, Florida. The center provides highly advanced technical and safety training for installation and service technicians working at wind energy projects located throughout the Americas. One of four Siemens wind service training facilities in the world, along with Bremen, Germany; Brande, Denmark; and Newcastle, United Kingdom – all accredited by Global Wind Organisation (GWO) for safety training. Investment of USD 7 million by Siemens, which underlines Siemens’ on-going investment in the wind industry. 40,000 square-foot facility.
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Siemens AG
Background Information
Two full-size Siemens nacelles (turbine generator), weighing over 100 tons each, located inside the training center. Three 30-foot high climbing towers, ladder structures, electrical and hydraulic modules, and maintenance crane to make training, safety and rescue simulations possible under realistic conditions. Built according to the U.S. LEED gold building standards. Creating 50 new jobs in support of the renewable energy industry. Expected to host over 2,400 trainees per year from the U.S. and the Americas. Wind Energy Outlook, Facts and the Production Tax Credit (PTC): Siemens’ aim is to maintain our No. 3 market position in the U.S. The company has a solid project pipeline in the coming years and will continue to work with the American Wind Energy Association and its Members of Congress to highlight the importance of the PTC and its effects on the growing U.S. wind industry. Over the next five years, the wind industry anticipates between 25 -30 Gigawatts of new installations. Wind provided over 35 percent of all new U.S. power capacity in the last five years Powering 4 percent of U.S. electric grid; over 20% in Iowa, South Dakota and Kansas Powering more than 15 million American homes Costs down 43 percent since 2008, power per turbine up 30 percent from technology advances (over 90 percent drop in price since 2008) Since 2005, the wind industry has brought more than $105 billion of private investment into the economy (average of $18 billion over past 5 yrs)Following a series of new U.S. wind power orders before the end of 2013, the U.S. wind industry is once again fighting for an extension of the PTC, which most recently expired at the end of 2013. The PTC, a federal tax credit that provides 2.3 cents per kilowatt-hour for the production of electricity to wind project developers has been a key driver in the development of U.S. wind power projects since 1980. Since then, the wind industry has been able to lower the cost of wind power by more than 90 percent, provide power to the equivalent of 15 million homes and foster economic development in all 50 states. Wind power is now an important part of the U.S. energy mix, generating more than 20 percent of Iowa’s and South Dakota’s electricity needs, and around 4 percent across the U.S. However, the PTC has been allowed to expire five times over a period of 15 years, creating “boom and bust” cycles.
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Siemens AG
Background Information
When the PTC’s expiration is pending, activity comes to a halt as recently experienced. In 2012, Siemens installed a record number of turbines with more than 2,600 MW capacity due to the pending expiration of PTC, but new investment activity came to a near halt in 2013 following the brief PTC expiration, resulting in only 85 MW of Siemens installations in 2013. Overall, the wind industry saw a 92% drop in installations in 2013. With demand rebounding in 2013 due to the PTC extension, Siemens signed a series of new contracts for nearly 2 Gigawatts for wind farms in Texas, North Dakota and Iowa, including the world’s largest onshore wind power order in history from MidAmerican Energy. “These projects were basically driven by the PTC,” stated Mark Albenze, head of Wind Power Onshore Americas. Customers, including MidAmerican Energy CEO Bill Fehrman, confirmed that the PTC was an influencing factor during the project celebration at the Fort Madison wind turbine plant in December 2013. Albenze added, “We're asking for as long an extension of the PTC as we can get to bridge the gap until we get a comprehensive energy policy," adding that he's hoping for an extension "sometime this year." He continued, "Right now we look pretty good through 2015, but it's beyond 2015 that’s uncertain."
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Siemens AG
Background Information
Contact for journalists: Mr. Oliver Santen, Tel.: +49 89 636 36669 E-Mail:
[email protected] Ms. Aynur Saltik, Tel.: +49 89 636-32322 E-Mail:
[email protected] Ms. Siluad Hammad, Tel.: +49 89 636-24632 E-Mail:
[email protected] For further information on Siemens Energy, please go to http://www.energy.siemens.com/hq/en/ Follow us on Twitter at: www.twitter.com/siemens_press For information and statistics on wind energy in the U.S., please visit the American Wind Energy Association (AWEA) website, www.awea.org. The Canadian Wind Energy Association (CANWEA) has information on wind energy in Canada, www.canwea.ca
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