Society Levelized Cost of Electricity as a new concept leading to wind energy combined with natural gas power plant as sustainable solution with current available technology

1. siemens.com/answers
Restricted © Siemens AG 2013. All rights reserved
siemens.com/answers
Restricted © Siemens AG 2013. All rights reserved
siemens.com/answers
Restricted © Siemens AG 2013. All rights reserved
The Siemens Wind Power
LCOE
Siemens Wind Power: The path towards below 100€/MWh

2. Page 2 Nov. 2013 EMEA OF BD / Siemens Belgium
What is the challenge? - to reduce the cost
of electricity to pair other technologies
30-40%
reduction
2012 2020-2025
Offshore wind
competitive with
CCGT
Unit
cost/MWh
Nuclear CCGTOnshore CoalBiomassOffshorePV Solar

3. Page 3 Nov. 2013 EMEA OF BD / Siemens Belgium Restricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reserved
Costs of offshore wind will be significantly lower
at the end of this decade

4. Page 4 Nov. 2013 EMEA OF BD / Siemens Belgium Restricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reserved
How does each plan add to the total? -
Siemens Wind Power target towards 2020: < 10 € cent/KWh
Target
FID 2020
18%
28%
Cost
out
3.6
16%
45%
14%
25%
Baseline
2014
14.5
24%
32%
17%
27%
9.5
26%
28%
18%
27%
AEP
increase
1.4
100%
Cost target
2020
10.9
26%
28%
E-BOPWTG C-BOP AEP increaseOPEX (disc.)
€ cent/kWh
5€ cent/kWh
Based on the SWT-6.0-154 turbine; Offshore project 1.000MW
OPEX
• Scaling of WTG rating
• Optimization of Setup
Foundation
• Industrialized designs
• Quayside completion
WTG++
• Industrialization
• Installation & commissioning
AEP
• Wider rotor diameters
• Improved aerodynamics
Grid
• New cost efficient solutions
• Industrialized components
Offshore CoE Targets, Wind farm level Main avenues per Cost segment

5. Page 5 Nov. 2013 EMEA OF BD / Siemens Belgium Restricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reserved
A new yardstick is needed –
Society‘s Costs of Electricity (SCOE)
Background
• Judging electricity sources only by
LCOE stems from ages where
electricity production was by definition
big-scale and localized at load centers
• With new energy sources entering the
scene, this approach falls short.
Objectives
• Analyze supplementary factors in addition
to LCOE which affect the true cost of
electricity on a macro-economic level
• Provide a comprehensive background for
fact-based and objective decisions on the
future energy mix
• Base all calculation on acknowledged
methods
Social
Impact
Economy &
employment
Geopolitical
risks
Environmental
impact
Transmission
needs
Variability
compensation
True
LCOE

6. Page 6 Nov. 2013 EMEA OF BD / Siemens Belgium Restricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reserved
The decision of the future energy supply should be
based on the total cost of energy to society.

7. Page 7 Nov. 2013 EMEA OF BD / Siemens Belgium Restricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reservedRestricted © Siemens AG 2013. All rights reserved
From a macroeconomic perspective wind energy with
natural gas as back-up is the least expensive option