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Agile and 360° Digital: Path to the Future of Energy usa.siemens.com/digitalgrid unrestricted © Siemens AG 2016 Michael Carlson

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Agile and 360° Digital:

Path to the Future of Energy

usa.siemens.com/digitalgrid unrestricted © Siemens AG 2016

Michael Carlson

Restricted © Siemens AG 2016

Page 2 Siemens Digital Grid

21st Century Challenges Facing Utilities:

Maintain Reliability, Resiliency, and Efficiency while Evolving to a New Model

Challenges External Forces

Reliability &

Operational Risks

Demand &

Supply

Uncertainty

Renewable

Integration

Energy

Efficiency Extreme

Weather

Utility

Business

• New Business Models

• Customer Engagement

• Integrated Business &

System Planning

• DER Integration

• Grid Automation,

Protection, & Control

• Forward Looking Customer

Focused Transactional

Market

• Cybersecurity

• Analytics

Strategic Implications

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Page 3 Siemens Digital Grid

The Energy System of tomorrow!?

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Page 4 Siemens Digital Grid

The Distributed Energy Cell

Energy cells can be

• Community

• Factory

• Power plant

• Dedicated storage facility

Energy cells contain

• Power generation

• Thermal and gas grids

• Energy storage

• Power-to-X (-value)

• Dynamic load control

• ICT, self-organizing,

self-healing intelligence

• Resiliency

Cell 1 Power - Gas - Heat

Digitalization Cell 2 Power - Gas - Heat

Cell 3 Power - Gas - Heat

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Page 5 Siemens Digital Grid

Integrated & Participative Markets

Energy cells can be

• Community

• Factory

• Power plant

• Dedicated storage facility

Energy cells contain

• Power generation

• Thermal and gas grids

• Energy storage

• Power-to-X (-value)

• Dynamic load control

• ICT, self-organizing,

self-healing intelligence

• Resiliency

Cell 1 Power - Gas - Heat

Digitalization Cell 2 Power - Gas - Heat

Cell 3 Power - Gas - Heat

Transactive energy on distributed markets

Utilities as platform optimizers and service providers

• integrating renewables and distributed energy systems

• facilitating markets for renewables and distributed energy

systems services

• offering renewables and distributed energy systems services

Opportunity

for

new

position

Market

model

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Page 6 Siemens Digital Grid

Local

Resilience

Storage

Energy

Efficiency

e-Mobility

Microgrid

Renewables

and Conventional

Peer-2-Peer

Energy

Analytics

Distribution

Platforms

Transactive

Energy

Distributed,

Closed-Loop

Control

Customer

Engagement

New Business Models

Cyber Security

Distributed Energy and Digitalization

Distributed

Energy

Systems

Digitalization

Data center $ € ₹ Small

power plant Photovoltaics

Onshore wind

District heating and cooling

Engine

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Page 7 Siemens Digital Grid

How to prosper

in such an environment?

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Page 8 Siemens Digital Grid

Connecting Grids

Efficient power distribution Interconnection of national, regional and local assets with

controlled integration of prosumer assets

Totally Integrated Power

Critical power supply for industrial plants,

infrastructure, buildings and residences Reliable, safe and efficient

Agility for Today & Tomorrow

Agility in Energy

Maximize Intelligence

and Flexibility of

Energy Networks

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Page 9 Siemens Digital Grid

Siemens Energy

Partnering for Solutions

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Page 10 Siemens Digital Grid

Siemens Digital Grid: Synergistic Business Solutions

with Energy Customers at the Center

Solution Design &

Consulting

Grid Operations Network

Automation

• Operations Design

• Process Integration

• System Resiliency & Stability

• Cyber Security

• Increased transparency

• Integrated Platform

• Advanced Forecasting, Predictive

Asset Maintenance and Control

• Advanced Analytics

• Out-of-Box Reporting

• Solution Integration

• Adaptive high speed

protection and control

• Integration and coordination

• Sensors, synchrophasors,

integrated automation

Power Generation

TSOs DSOs/ Municipalities

Distributed Generation

Oil and Gas Industries Infrastructure Construction

• Strategic business planning

• Product/Services Offering Design

• Integrated resource planning

• Risk Assessment and Monitoring

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Page 11 Siemens Digital Grid

Siemens Digital Grid: Proven End-to-End Portfolio

to enable your Digitalization Strategy

Business Applications

DEMS® Microgrid EMM MTM Cyber

Security

Manager

ADM MDM Energy

Engage

Analytics Planning &

Simulation

Infrastructure Modernization, Planning, Market Management, Transactional Market Platform

Spectrum

Power™ ADMS

Spectrum Power™

EMS

EnergyIP® Suite PSS®

Product Suite

Energy Market

Management

Automation and Control

SIPROTEC

Protection

SDFA

Feeder Automation

SICAM

Power Quality

SICAM

Substation Automation

SICAM Microgrid

Management

Partner

Solution

Managed

Service

Cloud Service

IT-OT

Integration

Business

Consulting

Energy Business

Advisory

Cyber

Security

Compliance

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Page 12 Siemens Digital Grid

Digital Metering: $9B

Meter Data

Adv. Meter

A Digital Grid Delivers Real Benefits While Enabling DER Integration

Source: McKinsey on Smart Grid

Peak Shift

Conservation

Avoided Gen

Digital Consumer: $59B

Digital Distribution: $63B

Voltage

Outage

Diagnostics

Monitoring

A Digital Grid is Estimated to Deliver $130B+ in

Annual Benefits (McKinsey & Co)

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Page 13 Siemens Digital Grid

Siemens Digital Grid: Holistic, Integrated

and Flexible Approach to help Utilities achieve Digital Benefits

Quality & Reliability Management

Big Data/Analytics Platform

Customer& Billing

Digital

Metering

$9B

Digital

Consumer

$59B

Digital

Distribution

$63B

Solution

Design &

Consulting

Volt/VAR

FDIR

Diagnostics

Monitoring

DER Integration

Meter data over network

Advanced meter functions (real-time)

Consumer engagement

Shift peak

Energy conservation

Avoided cost of capacity

DER Integration

Energy

Automation

Software

Solutions

Cloud Cybersecurity Analytics DERMS

Power Generation

TSOs DSOs/ Municipalities

Distributed Generation

Oil and Gas Industries Infrastructure Construction

Workforce Management System

SCADA/Control

Siemens Digital Grid

Integrated and Flexible

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Page 14 Siemens Digital Grid

From Digital Grid to Digital Cities to Digital Planet

14

• Digital Grid is the Beginning of the Digital Journey

• A robust Digital Infrastructure lays the foundation for the Smart City and IoT applications of the future

• Present Utilities with the opportunity to create significant long-term value

New Opportunities

Digital Grid

Digital Cities

Digital Planet (Internet of

Things)

cc • New Business Models

• New Revenue Streams

• New Services

• Superior Return on Investments

cc

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Page 15 Siemens Digital Grid

Siemens Digital Grid – Benefits of the Holistic, Integrated and Flexible

Approach

• Integrated planning capabilities

• Robust planning capabilities tailored to

your needs

• Trusted partner throughout your

journey

Siemens Digital Grid Integrated

Approach Benefits

• Proven partner that has the

expertise and comprehensive

offerings (planning, protection,

control & analytics) and flexibility

that put your success at the center

• Lower total cost of ownership in

the long run, due to less complex

integration efforts

• Reduced implementation risks,

faster return on investments,

future-proof platform that grows

with you

• Offers proven “next generation”

protection technology

• Advanced microgrid control

capabilities

• Adv. DA capabilities for Dx Mgmt

• Control software for market mgmt,

distribution mgmt, analytics w/

cybersecurity throughout

• Integrated DER Platform

Solution Design &

Consulting

Energy

Automation

Software

Solutions

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Page 16 Siemens Digital Grid

Agility in energy. Bringing the 21st century customer-centric energy system to life.

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Page 17 Siemens Digital Grid

Delivering customer success – proven worldwide

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Page 18 Siemens Digital Grid

We Succeed When Our Customers Succeed

Centerpoint Energy won

awards, saved consumers

more than $20 million per

year, saved more than 1.4

million gallons of fuel which

is equivalent to saving more

than 13,000 tons of CO2

emissions, and Increased

grid reliability, reduced

average restoration time,

and drove innovation...

--CNP Press Release 06/16

The EIM has produced $80

million in economic

benefits for its members,

APS could save $7 million

to $18 million a year

through EIM participation,

while PSE could save

between $18 million and

$30 million…

--RTO Insider 10/16

EnergyIP supports ConEd’s

advanced metering

infrastructure (AMI) project

for 3.9 million electric and

1.3 million gas customers,

with integration and

analysis of resulting data

into actionable insight,

supports New York’s

Reforming the Energy Vision

(REV)…

--Press Release 03/16

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Page 19 Siemens Digital Grid

We Ensure Our Customer Success Through True Partnership

“ “From the beginning of system design, PJM sought to

integrate security controls, scalability and flexibility into a

new generation of systems …”

--Terry Boston, Former PJM CEO

“The Siemens SDFA will provide SCE with a system that significantly improves distribution

systems reliability by providing automated redundant power to their consumers.” --SCE Advanced Technology

“… Siemens consistently

demonstrated a vision of

shared success…”

--Large U.S. IOU

“We received an unparalleled level of

support, service, flexibility and

commitment from each person we

worked with at Siemens. They were

fantastic.” --Burbank Water and Power

"We have partnered with eMeter for

years now and they have been with us

every step of the way as we have built

out our smart grid vision," --JEA

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Page 20 Siemens Digital Grid

Siemens Digital Grid:

Delivering Customer Success Worldwide

1,600 control centers

125,000 remote terminal units

1,400,000 digital protection devices

220,000 power quality devices

68,000,000 intelligent meters managed

2.5B+ Collective number of people served

by our utility customers

8,000 substation automation systems

Focus on

Customer

Success

Globally

11,500 PSS®E users

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Page 21 Siemens Digital Grid

Michael Carlson

President

Siemens Digital Grid US

Contact

usa.siemens.com/digitalgrid