Making Russia Energy Efficient - Energy Efficient Cities and Towns

© OOO Siemens in Russia Sector Energy

Making Russia Energy Efficient -Energy Efficient Cities and Towns

Pilote Yekatarinburg: A Cooperation of the Russian Government and Siemens under participation of German and Russian industry, supported by DENA and the German Government


June 15, 2010

Hans-Juergen WioVice-President of OOO Siemens in RussiaCEO Siemens Energy in Russia and Central Asia

15th June 2010 © Siemens Russia 2010Slide 2

Energy Efficiency in Russian Federation:One of the most discussed topics

«By 2010 Russia should become 40% more energy efficient»

July 2008Д.А. Медведев

Президент Российской Федерации

Yes - we can fulfill President’s expectationsYes - we can fulfill President’s expectations



1. The Challenge - Sustainable Urban Infrastructure

2. Energy Efficiency Studies

3. Siemens Solutions for Cities

4. Pre-requisites for success in Russia


Cities are the growth engines for national economies

Compe-titiveness

Environment

Quality of Life

Governance

Challenge to balance between competitiveness, environment and quality of life

Sustainable Urban DevelopmentMegatrends

Globalization & Urbanization Global players/trade volume increase 2030: 60% of population in cities energy / buildings / mobility / water

infrastructure are key

Demographic Change 65+ generation will nearly double

by 2030 (from 7% to 12%) Need for adequate infrastructures

as well as health- and elder care

Climate Change Cities responsible for ~80% GHG Need for resource efficiency

and environmental care

Cities are competing globallyto make their urban areas attractive to live and to invest in

Megatrends imply significant challenges for city decision makers


Implementa-tion studies

in major cities

Green CityIndex

City sustainability

trends & challenges

Siemens insights into “how to become energy efficient”, jointly developed with major world cities

Megacity Challenges Study

Comprehensive analysis based on interviews with over 500 city managers in 25 selected megacities

Urban infrastructure trends and challenges as well as global best practices

Green City Index

Index compares cities across 8 dimensions of sustainability: CO2, Energy, Buildings, Transport, Waste & Land Use, Water, Air, Governance

Started in Europe, rollout in other regions started

Sustainable urban infrastructure studies / projects

Studies on “how to become a sustainable city” with focus on resource efficiency

Examples: London, Munich, Yekaterinburg Shanghai, Dublin, Trondheim, ...


London’s own measures combined with effective policies and supervision trigger the changes

48%

3%

21%

28%

Examples: Public buildings Hybrid buses Traffic management

City

Individuals

Examples: Buildings insulation Low-emission cars Efficient household

appliances

National level

Businesses

Examples: Biofuels Central electricity

supply (grid mix)

Examples: Lighting in commercial

buildings Cooling displays Decentral energy (CHP)

Siemens Sustainability Study – Example London


Full impact only if private sector incentivized to take initiative

Findings Conclusion

4.5

2.7

1.4

1.3

0.7

1.2

0.5

0.3

0.2

0.9

3.7

2.1

Levers

Abatement potential Mt CO2

Average abatement cost EUR/t CO2

Additional invest-ment bn EUR

Transport

Buildings

Energy

Insulation

Heating efficiency

Lighting

Appliances

Other

Higher car efficiency

Biofuels

Hybrid passenger cars

Hybrid bus

Other

Energy mix

CHP -90

40

230

140

460

-30

-150

-120

-190

-320

1,700

-240

10.4

1.0

0.9

0.8

7.3

2.4

–

5.3

0.5

4.3

1.1

4.0

! Two-third of all CO2-

abating technologies pay back their investment

Around 75% of the abatement potential lies in the hands of individuals/ businesses who make technological choices

The total investment required constitutes less than 1% of London’s total economic output until 2025


A different look on the results offers a perfect “implementation road map”

Source: McKinsey & Company

Abatement cost – buildings sectorEUR/t CO2 – decision maker perspective

Cumulative abatement potential Mt CO2

0

100

200

300

400

500

-100

-200

Lighting

Office appliances

Hot water insulation

Display cabinets

Drives

Cavity wall insulation

Public lighting

Electric appliances

Condensing boilers

Loft insulation

Air conditioning

Optimisation of buildings controls

Cooking

Heat recovery

Improved heating controls

Solid wall insulation

Insulation schools

Lighting

Floor insulation

Insulation office

Draught proofing

Windows

Large cooling

Cooling with renewables

More efficient new builds

Small cooling

2 4 6 8 10

Residential

Public and Commercial

€>0

€<0


Russia develops international partnerships in sphere of energy efficiency

02.10.2008 – St. PetersburgRussian/German agreement on cooperation in sphere if energy efficiency between Merkel/ Medwjedew

16.07.1009 – MunichCeremonial signature of RUDEA cooperation

Energy Dialogue Russia – European Union

IPEEC - International Partnership for Energy Efficiency Cooperation

►►Focus Target:

Significant decrease of power resources consumption in Russia


“Energy Efficient City Ekaterinburg” – Russian/German pilot project with Siemens leadership

Energy efficiency potential 2020 in TWh/a

1) Derived from difference to most common used / best technology from reference database 2) Combined Cycle Power Plant Source: Team Ekaterinburg

16

62

44

3478

Baseline primary

energy 2020

Efficiency potential– Most

common 1)

2020 atMost common

Efficiency potential– Best 1)

2020 atBest

Most common Basic wall insulation 2-plane windows Efficient drives Optimization of district

heating boilers …

62(-79%)

34(-44%)

Best Super insulation 3-plane windows Frequency converters Combined Cycle Smart Grid …

Adoption of "common" technology can save 44% of primary energy by 2020


“Energy Efficient City Ekaterinburg” – Russian/German pilot study to be presented in St. Petersburg

Strong commitment and support from Government Sverdlovskaja Oblast


12 Key levers

1) Shown impact is after Wall Insulation and Triple-glazed windows are implementedSource: Team Ekaterinburg

Effic. potentialin TWh/a ofprimary energy

CAPEX in mil. EUR

Avg. savingsp.a. 2010–2020cityin mil. EUR

Payback city & gas providerwith capital costs, years

Expertiseprovided by

2) Suggested to implement before levers related to automation of buildings

Payback city & gas providerw/o capital costs, years

Implementation would pay back in ~6 years

Key levers

Process improvement., e.g. steel

Frequency converters

Traffic management system

Cogeneration (CHP)

Insulation of district heating pipes

5.7

0.5

0.4

0.5

0.2

0.4

0.5

0.5

1.2

3.5

3.8

17.2 TWh primary =>22% points of potential

Triple-glazed windows

Heat recovery ventilation (HRV)

Heating controls 1)

Wall insulation 2)

Water saving devices

Building automation (e.g. HVAC)

41

2,400

16

57

9

427

11

35

98

21

483

tbd

~3,600

Energy-saving lamps

tbd

0.6

3.3

0.4

21

0.3

2.9

2.3

1.9

31

tbd

2.2

1.8

125

115

40

18

14

6

15

34

12

223

tbd

14

5.8 11.0

3.8

2.9

2.2

–

0.6

4.5

0.4

–

0.3

tbd

2.6

2.0

Better Better

Trans-port

Build-ings

Indus-try

Energy

1

2

3

6

7

9

10

11

12

4

5

8


Different parties will benefit from energy saving

Source: Ekaterinburg team

Total potential of energy saving:

- 44%

Ekaterinburg

+

=

Two-fold impact

12 Major levers

Additionallevers

2008 2020

City: decrease of energy consumption

Gas suppliers: Export (or economy) of gas becomes available thanks to reduction of power consumption in the city

Total: extra profit from country point of view: 3,1 bln. Euro by 2020

44% primary energy reduction by applying "common technology" (~50 levers)

Most relevant 12 levers:

Achieve 22% points of reduction potential

Require €3.6 bil. investments

Half of the energy efficiency potential in Ekaterinburg can be achieved with the 12 levers

Energy usage reduction


~€100 bln. investments ~€100 bln. total positive effect

Key 12 levers:Extrapolationto Russia (~60%)

Rollout of Ekaterinburg's energy efficiency to Russia would generate ~100 billion EUR benefits by 2020

Krasnojarsk

Jakutsk

Murmansk

Moskau

St. Petersburg

Ekaterin-burg

Wolgo-grad

Rostov

Chabarovsk

Anadyr


We cannot solve everything with technology, but we cannot solve anything without

Existing technology achieves high gains along entire energy conversion chain

CO2-free energy to the city

Example HVDC: China 800 kV,

6.4 GW, 2,000 km

Building technologies

30% less energy used through building

energy management

SIPLINK

12 tons less CO2 emissions

per ship and day by local grid connection

High-voltage urban link

Efficient energy transport by HV close

to the consumer

Industry

40% less energy consumption with

variable-speed drives

Complete Mobility

Higher attractiveness of public transport

(reduced waiting and up to 20% fuel savings)

Street lighting

Potential in Europe: 3.5 million tons less CO2 emissions with

LED systems

Renewables

Wind turbines:Efficiency up from 1 MW to 3.6 MW

Efficient energy production

Combined Cycle: from 50% to 60%

Steam Power Plant: from 40% to 47%

Traffic management system

30% less downtime with “Progressive traffic

signal system“


The world’s most powerful gas turbine – proven efficiency and output

375 MW GT

570 MW CC

40% GT efficiency

> 60% CC efficiency


Ветроэнергетика РФ сегодня и завтра

SWT-2.3 (-82-93-101) SWT-3.0-101 DD SWT-3.6 (-107-120)

4 ноября 2007: внесены изменения в Федеральный Закон №35 «Об электроэнергетике»; 3 июня 2008: Постановление Правительства РФ №426 «О квалификации генерирующего объекта на основе возобновляемых источников энергии»

8 января 2009 года: Распоряжение Правительства РФ №1-р, определило основные направления государственной политики в области развития электроэнергетики на основании использования возобновляемых источников энергии. К 2020 году планируется увеличить долю возобновляемых источников в производстве электроэнергии до 4,5 % без учета крупных ГЭС, что составит порядка 80 млрд.кВт час выработки.

Законодательная база РФ

Проект государственной программы энергосбережения и повышения энергетической эффективности на период до 2020 года предполагает ввод к 2020 году 4,75 ГВт мощностей на основе энергии ветра

Умеренный сценарий Агентства по прогнозированию балансов и Института энергетической стратегии предполагает ввод к 2020 году 7,5 ГВт мощности ВЭС

Сценарии развития ветроэнергетики в РФ

Ожидаемые шаги в части компенсирующих тарифов в РФ Директор департамента государственной энергетической политики и

энергоэффективности Минэнерго РФ г-н Михайлов на конференции REnergy2010 в мае этого года заявил, что из четырех подзаконных актов, требующихся в развитие положений федерального закона «Об электроэнергетике», два приняты. Еще два, представляющие особый интерес для потенциальных инвесторов – еще на стадии разработки и согласований. Ожидается, что до конца этого года РФ будет иметь законодательную базу, обеспечивающую возможность широкомасштабного внедрения проектов возобновляемой энергетики.

Технический ветропотенциал РФ

Технический ветропотенциал РФ составляет порядка 1 637 ГВт потенциально возможных установленных мощностей ВЭС

Разрабатываемые проекты по строительству ВЭС в РФ

Современные ВЭУ* Сименс

На сегодняшний день в стадии проектирования уже есть проекты по строительству ВЭС в таких регионах как: Краснодарский край, Калмыкия, Волгоград, Калининград, Алтайский край, Дальний Восток.

Сименс предлагает полный спектр решений для строительства ВЭС. Линейка продукции Сименс постоянно совершенствуются и сегодня мы уже предлагаем ветроустановку нового поколения SWT-3.0 с технологией прямого привода.


Широкомасштабное внедрение ВИЭ*

Технический ветропотенциал всего Дальневосточного административного округа составляет порядка 4 611 млрд.кВт час/год.

Для зон с децентрализованным электроснабжением очень интересной представляется идея Ветро - Дизельных Установок

Повышение надежности энергоснабжения для зон с децентрализованными энергосистемами

Экономия дизельного топлива до 60 %

Снижение затрат на транспортировку дизельного топлива

Увеличение срока службы дизельгенератора на 25-40 %

Снижение вредных выбросов в атмосферу

Технический ветропотенциал Дальнего Востока

Ветро - Дизельная Установка Предпосылки для использования Ветро – Дизельных Установок

Предпосылки для широкомасштабного использования ВИЭ

Экономия ископаемого топлива

Улучшение экологической обстановки в регионе

Создание новых рабочих мест при строительстве новых мощностей

Создание новых рабочих мест при эксплуатации ветропарков

Дополнительные налоги в региональный бюджет

Рост научно-технического потенциала

Образование молодых специалистов

* ВИЭ – Возобновляемые Источники Энергии


Cogeneration will save 35% of gas consumption

Pilot Ekaterinburg: proposed technology

Current technology

After new technology is implemented

Electricity

Heat

Heat

Gas saving:35%

Gas

Gas

Boiler

CHP Steam power plant

Gas

Electricity

Steam power plant

Gas

Electricity


Electrical capacity: 7,5 MW

Heat capacity: 11,7 Gcal/h

Overall efficiency: 85%

Annual electricity generation: 62.000 MWh

Annual heat energy generation: 97.000 Gcal

Exhaust heat boiler

Exhaust pipe

Turbine SGT-300Automatic control

system and associated equipment

CHP allows to increase energy efficiency by 35%Leasing finance model reduces investment for cities

Source: SMART CHP Russia

CHP Pilot: description of proposed technology

Technical features:

11 mil. m3 p.a.Gas savings:

23 т/годReduction of CO2 emissions:

35%Increase in energy efficiency:


XXX XXX

Energy consumption in buildings Siemens building Munich-Perlach

Efficient operation requires continuous optimization and monitoring

* Building Automation and Control System

No BACS*

BACS* without EnergyMonitoring

BACS* with EnergyMonitoring

100%

90%

80%

70%

60%

Time

En

erg

y co

nsu

mp

tio

n

BACS* withadditional energyefficiency measures

What we know about buildings … Importance of building automation and a life cycle approach

Heating energy demand reduced by 34%

Electricity demand reduced by 15% ROI of less than 2 years

OSRAM Charts | FY 2009 | Page 25091204_OSRAM_Charts_GB_ls.ppt | Date: 12.4.2009 | PR

OSRAM - Potential of sustainable development

Example with home lamp

Easy arithmetical problem:

TERMS:

Lamp wattage 100W (0,1KW)

Lamp price 15 rub.

Lamp lifespan 1000 hours

1000 hour of burning per year

3 rub/KWh

QUESTION:

what are annual expenses for lighting coming from?

Possibilities in professional lighting

• More installed power capacities More burning hours• More investments into equipment• Maintenance of fleets of equipment

MORE POSSIBILITIES FOR ENERGY SAVING!!!

• New technologies• More effective types of light sources• More effective luminaries • SYSTEM approach to SYSTEM of

lighting

OSRAM: world‘s principal manufacturer of light sources

Established in 1906 as joint venture of SIEMENS and 2 other companies

100% SIEMENS owned from 1978

Market leader in Russia

Large factory in Russia, 1500 employees

OSRAM at glance


1) ICT = Information and Communication Technologies

Paradigm shift in power grids: The new age of electricity

Electrification of society'Age of Coal'

'Generation and load closely coordinated'

Supply island withstochastic load

Extensive generation of electrical energy

'Age of fossil fuels'

'Generation follows load' Integrated network, central

generation, load stochastically predictable, unidirectional energy flow

Fossil energy source,hydro

Fossil energy sources,hydro, nuclear

No environmental concerns

19th Century 20th Century

Shift to new age of electricity

Challenges require rethinking: 1.) Demographic change 2.) Scarce resources

3.) Climate change

'Energy system shifting'Increasingly decentralized,

fluctuating generation'consumer' becoming 'prosumer'

Fossil energy sources, hydro, nuclear, biomass,

wind, solar

Early 21st Century

Environmental awareness

Unsustainable energy system

The new age of electricity Electricity will be the energy source for most

applications in daily life. Integrated energy systemwith power grid as backbone

'Load follows generation'Central + decentralized generation,

intelligence with ICT1,bi-directional energy flow

Renewable energy sources (solar, wind, hydro, biomass),

'clean' coal, gas, nuclear

End of 21st Century

Sustainable energy systemUnsustainable energy system


Moscow Ring / Beskudnikovo – Switchgear view 27 ha AIS or 6 ha GIS

GIS and AIS, flexible in cost position or environmental ground savings

-77%


DistrictHeating

The Siemens City Management solution approach:Coupling of today’s separated resources supply systems

EnergyManagement

From decoupled individual optimization to integrated City Management

BuildingManagement

WaterManagement

EnergyManagement

BuildingManagement

WaterManagement

DistrictHeating


Localization contributes to modernization of Russian industry

High Voltage products

Transformers Wind turbinesI&C components

Compressors Gas turbines

Siemens Energy in Russia is fully localized




3. Siemens Solutions for the Cities




In achieving Russian energy efficiency goals international experience can be leveraged

Source: European Council Directives (96/93, 2003/54, 2001/77, 2009/28, 2004/8/EC); Russian Energy Strategy for 2030; German Electricity Feed Act (1991); German Renewable Energy Sources Act (2000, 2004, 2009); Renewables Global Status Report 2009 Update

Goals of energy programs worldwide and ways to achieve them

The European Union created different directives for its member countries in order to reach goals

Germany: incentive model for renewables (& CHP)

- was most successful and served as an example for 47 countries worldwide

- can be implemented in Russia due to similar goals (Energy Strategy for 2030)

Russia already created good preconditions for reaching energy efficiency goals:

- Liberalization of electricity market in progress

- Feed-in tariffs being discussedLiberalization of energy market

1

Diversification of primary energy sources

Increase of renewable energy

Efficiency in Energy SectorReliable Energy SupplyEnvironmental Protection

2

3

Month 2010 Author Confidential / © Siemens AG 2010. All rights reserved

Cooperation between Russia and Europe canbe optimized

Timeline of events

GE

RU

1991EFA 1)

2008REHPA 5)

2002CHPA 4)

2000REA 3)

1998EMA 2)

Germangoals German Measures

2009 2015 2020 20301st stage 2nd stage 3rd stage

1) Electricity Feed Act 2) Energy Management Act

Source: TEAM Smart CHP Russia

2003Federal law on

Electric Power IndustryEnergy Strategy for 2030

Creating Incentives Financing Incentives Supporting Incentives

Feed-In-Obligation Feed-In-Tariff Feed-in-Preference

Cost transfer system Completion of liberalization Tariff regulation by FTS6)

Network authority structure reform Reduction of cross-subsidizing Penalties for de-installed meters

Adjusted to Russia

German Measures

3) Cogeneration Act 5) Renewable Energy Sources Act

4) Renewable Energies in the Heat Sector Promotion Act 6) Federal Tariff Service

1 2 3

Russian MeasuresRussiangoals

Suggested: Transfer of know- ledge and experience

2020Integrated Energy &

Climate Program


Prerequisites for successful implementation

Source: Ekaterinburg Team

Implementation systematic

Financing / Legislation

Social Mobilization

Comprehensive energy efficiency stimulus measures (e.g. loan subsidies, attractive tariff structure)

Involvement of key beneficiaries of gas savings (gas providers e.g. Gazprom)

Legally worked out “menu” of financing mechanisms, e.g. Energy Contracting

Advertising geared towards changing consumer behavior

PR campaigns

Well defined energy efficiency program office at the country level with clearly assigned responsibilities

Targets cascaded from the country level down to regions, cities / towns

Implementation systematic (tools, access to necessary data, clear milestones to reach targets)

Statistics

Country-wide defined KPI consistently used across the country

Energy consumption statistics at multiple levels: city, region, country

Transparency of and accessibility to energy consumption and efficiency measures across cities

Beyond technology, there are 4 prerequisites for successful energy efficiency program


Energy Efficiency in Russian Federation:One of the most discussed topics

«By 2010 Russia should become 40% more energy efficient»

July 2008Д.А. Медведев

Президент Российской Федерации

«The key in not to produce something on paper, but actually to do something about it»

September 2009D.A. Medvedev

President of the Russian Federation

Today’s discussion is a major step towards working on real projectsToday’s discussion is a major step towards working on real projects

Energy T

Thank you very much!Спасибо за внимание!

Making Russia Energy Efficient - Energy Efficient Cities and Towns

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