Siemens Building Technologies Renewable Energy

Laura Berland-ShaneSiemens Building Technologies

OCBC Presentation July 14, 2009

Agenda

Introduction

Laura Berland-shane, Alternative Energy BDM

About Siemens Building Technologies, US

Discussion on Renewable Technologies

Case Study: Solar

Financial Options

Regions for Best Opportunity

Questions

How we help our customers

BuildingAutomation

BuildingAutomation

Energy &Environmental

Energy &Environmental

Fire SafetyFire Safety

SecuritySecurity

SiemensBuilding

Technologies

SiemensBuilding

Technologies

HVACHVAC

About Siemens Building Technologies, United States

National Leadership – Local Presence

Customer Satisfaction is our core value

We improve facilities by making them comfortable, safe and secure, and less costly to operate

Energy and Environmental Solutions

Market leader in energy savings performance contracting

Extensive experience in key vertical markets – Government, Public Housing, Education

Building Automation and Controls

Full featured, customized solutions

Integration of multiple building systems

Industry’s first wireless system

Security Systems and Solutions

Seamless systems integration and management

Remote location monitoring

Diverse product and solution portfolio

Fire Safety

Seamless integration with existing building management systems

Broadest product line in industry

High risk and specialty applications

Siemens Building Technologies U.S.

Siemens Building Technologies U.S.

Employees (thousands)

Sales (billions of US$)

Locations

Customers (thousands)

7.4 1.8 100 45

HQ Buffalo Grove, IL

Siemens Qualifications

Siemens and Energy

Over 275 energy professionals nationally

Over 2 Billion dollars in guaranteed energy savings for projects implemented since 1995

Over 6,000 energy related patents

Thousands of energy audits and LEED assessments performed annually throughout US

Global Presence

The Challenges:

• Clean Energy Generation

• Water Filtration/Reclamation

• Green Buildings

• Emissions Control

• Output Efficiency

• Energy Star Lighting

• Waste to Energy

• Energy Management Consulting

• Intelligent Traffic Systems

• Mobility Communications

• Hybrids/Green Diesel

• Research/Modeling

Our Answers:

What We Offer: Innovation, Efficiency, Sustainability

Fresh Water

Clean Air

Energy Supply

Saving Resources

Mobility

Renewable Energy: Project Types

Solar

Wind

Biomass

Landfill Gas

Digester Gas

Waste-to-

Energy

Solar Electric Power

Recognizable environmental commitment/reduces carbon footprint

Uses local resources, reduces demand for imported fossil fuels (NG, Oil)

Solar panels have a 25-year warranty, 35+ year life

Solar power provides peak power, offsets most expensive electricity

Warranties backed by substantial companies, e.g. BP, Shell, Sharp, Kyocera

Low maintenance (~1% total project cost/yr)

Available in various configurations (rooftop, parking canopy, ground mount)

Solar Power

Rule of thumb: 1MW solar power needs 80,000 square feet of roof space

Technology improvements – thin film, increased panel efficiency, storage

Project costs continue to decline

Solar Economic Incentives

Federal tax incentives (30% now avail as a grant per ARRA)

5 Year MACRS accelerated depreciation available + 50% Bonus Depreciation (ARRA)

California Solar Initiative- SoCal Ed step 5 at 0.15/kwh

Some examples of Municipal utility rebates available- Anaheim: $2.80/watt AC or $.39/kwh

- LA DWP: upfront 20yr payment $.11- $.14/kwh.(Equiv. of $4.50/watt AC)

- Glendale: 4 year PBI $.49/kwh

- Pasadena: 5 year PBI ($.553 - $.632/kwh)

Renewable Energy Certificates (RECs)

As a tax-exempt institution, you can not monetize most incentives…unless you go with a Power Purchase Agreement (PPA)

Financial Options for Solar-Tax Exempt Entity

Purchase Capital Lease PPA

Upfront Cash Outlay √ x xMonetize Federal Tax

Incentives x x √Monetize Accelerated

Depreciation x x √Maintain Equipment x √ x

Contract Termx

10-15 years 15-20 years

Ownership√ √ Buyout available

after 7 yrs.

REC Ownership√ √

maybe

Benefits of a Power Purchase Agreement (PPA)

Allows tax-exempt institutions to monetize tax credits and depreciation

Green power for less cost than “brown power”

Fixed price hedge against significant utility cost increases

All the benefits of solar power without the hassles of ownership No capital required No complicated rebates and tax credits to manage No maintenance and repair responsibilities

Highly visible solar project drives green marketing

Solar power reduces fuel price volatility impact on electric costs

PPA Model

Host Customer

Project Developer

SIEMENS

Manufacturer&

Installer

Investor

Purchases electricity services at a fixed price schedule

Provides legal access to facility

No capital requirement

Receives revenue from sale of panels, inverters

Provides warranties for equipment and performance

Receives low risk ROI from electricity sales, state & federal incentives

Provides capital and owns equipment

Arranges financing, system design and construction

On-site solar PV system

15-20 Solar Services

Agreement

Equipment, installation, &

warranties

Sales and O&M

revenues

Financing

Solar Services

1.16 MW Solar PV Project

Case Study: Solar Energy Installation

Siemens Transportation ServicesSacramento, CA

Key Challenges

• Need for additional parking to accommodate growth

• Support corporate-wide sustainability initiatives

• Address need for greater predictability in energy pricing

Solution

• 180 new parking stalls

• Expedited permitting process with solar component

• 1 MW solar project; over 5,000 panels, supplying ~50% of building load

• Weekend generation sold back to electricity grid

• Prevents over 700 tons of CO2 annually

Siemens/ Shaw Waste to Steam Plant

Carpet and wood to energy

– Project has been completely operational for 2 years on July 1

– 10,000 tpy of both carpet edge trim and wood waste are shredded and gasified to produce 50,000 pph of steam

– Carpet plant has the lowest energy cost of all Shaw carpet plants

– Two people per shift operate and provide day to day maintenance

– Plant has 85% uptime

– Plant utilizes almost 80% of waste

Questions?