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  • Copyright Siemens AG 2007. All rights reserved.

    Siemens Power Generation in China & Its Contribution to Energy Efficiency

    Meeting with German Press Tour Shanghai, 27 March 2007 Wolfgang E. KriestenPower Generation Group, Siemens Ltd. China

  • Page 2 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Chinese energy goals

    Ensure energy supplies for China Secure resources for energy production Environmentally-friendly energy solutions Increase energy efficiency 20% by 2010 Stress energy-saving innovations Stricter pollution controls

    !

  • Page 3 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Large potential for improving energy efficiency

    Energy consumption per unit produced is higher than the world level due to outdated technology1)- Thermal power +22%- For steel making +21% - For cement making +45% - For buildings higher by 2-3x

    To produce $1 of its GDP, China needs 3.5x the amount of energy as the world average2)

    China uses 15% of the energy consumed in the world to produce 5.5% of the GDP3)

    Source:1). State Statistic Bureau, Annual Report 2004 / 20052). Asian Development Bank (ADB) analysis 3) NDRC Minister at China Development Forum, March 2007.

  • Page 4 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Primary energy consumption (Mtoe) world and China

    2002

    2030

    Mtoe

    Compressed scale

    Total *) From it Coal Oil Gas

    Source: IEA, WEC, GS4

    9104

    1241, (12%) Share of World

    China

    Other World

    1676

    713 (30%)

    China

    Other World

    3429

    247 (7%)

    636 (11%)

    13947

    2540 (15%)

    2247

    1354 (38%)

    5130

    2158

    32 (1%)

    3972

    158 (4%)

    China

    Other World

    China

    Other World

    Reserves (China), Mtoe 60 000 3300 1700

    *) includes fossil, nuclear and renewable energy sources

  • Page 5 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Gas2%

    Oil17% Coal

    76%

    HPP/NPP/RE5%

    Coal dominates the fuel mix

    China Energy Consumption BreakupNuclear and Renewables

    Strong government program

    Increasing Dependence on Oil & Gas> 40% of oil importedOverseas oil supply source to be diversified Limited potential to discover big domestic oil and gas reserves

    1990: 1 BTCE

    Source: China Statistical Annual Report 20062006: 2.46 BTCE

    Gas7% HPP/NPP/RE

    3% Coal71%

    Oil19%

    * BTCE: Billion tons coal equivalent

  • Page 6 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    CO2 emissions trends

  • Page 7 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    With sales totaling around EUR 10,1 billion* and a global work force of more than 36,400*, the Power Generation Group (PG) of Siemens is one of the leading companies in the international energy business.

    Siemens PGs profile

    Number 2 ranking in the global power plant and industrial applications market

    Broad portfolio from fossil-fueled power generation over key components for industrial cogeneration plants as well as drive and compressor solutions to renewable energy systems

    Competent partner for products, systems and plant services as well as plant construction, including turnkey projects

    Long-term operation and service agreements

    * fiscal year 2006

  • Page 8 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Solutions for oil & gas

    Industrial gas turbines

    Industrial steam turbines

    Key components for industrial power plants, incl. cogeneration of heat and power

    Compressors & drives

    Service solutions

    Oil & Gas and Industrial

    ApplicationsFossil Power Generation

    Instrumentation & Control

    Instrumentation and control systems for all types of power plants

    IT solutions

    Service solutions

    Wind farms(on- & offshore)

    Wind Power

    Wind turbines(on- & offshore)

    Service solutionsCombined-cycle power plants

    Steam turbines and steam power plants

    Gas turbines and gas turbine power plants

    Electrical generators

    Service solutionse.g. Balance of Plant, plant diagnostics, operating plant, boiler, environmental andmodernization service

    Electrical generators

    Siemens PG: Complete product and service portfolio; leading market position in nearly all businesses

    Fuel gasification technology

    Business activities

    Portfolio

  • Page 9 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Siemens PG in China

    Siemens installed first generator for illuminating the Shanghai harbor in 1879

    Constructed Chinas first tram line and related power plant in Beijing in 1899

    Today:

    We are the leading partner for the Chinese power industry

    In close cooperation with its JV partner Shanghai Electric Group (SEG), designs and delivers components for fossil power plants (incl. Combined Cycle Power Plants) and for the Conventional Island of nuclear power plants.

    Designs and supplies gasification equipment for the coal to chemical industry.

    Supplies parts, provides service, offers modernization and upgrades for power plants including environmental improvement.

    Supplies instrumentation and control equipment for power plants

    Supplies turbines and compressors for the oil & gas industry and industrial applications

  • Page 10 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Siemens PG country setup

    Shanghai

    Shenyang

    Beijing

    Nanjing

    CompanyPower Plant

    Office

    Huludao

    Wuhan

    Number of locations 15(incl. Minority-JVs)

    Number of employees ~6,800(incl. Minority-Vs)

    Power plants with imported equipment 22 GW

    Power plants in operation or under construction withSiemens Technology ~93 GW

  • Page 11 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Siemens PGs references - fossil power plants in China

    Waigaoqiao 2nd phase 2x900 MWWaigaoqiao 3rd phase 2x1000MW under constructionXinjiang

    Macau

    Heilongjiang

    Hainan

    Guangdong

    Shanghai

    Shandong

    Fujian

    Hubei

    ShaanxiHenan

    JiangxiHunan

    Guangxi

    Anhui

    Liaoning

    Jilin

    Shanxi

    Yunnan

    Sichuan

    Guizhou

    Chongqing

    Jiangsu

    Hebei

    Taiwan

    Inner Mongolia

    Qinghai

    Gan

    Su

    Ningxia

    Tibet Zhejiang

    Beijing

    Tianjin

    Hongkong

    Yuhuan 4x1000 MW under construction

    Huaneng Shanghai 3x400 MW CCPP (Shidongkou)

    Steam Power Plant

    Combined Cycle Power Plant

  • Page 12 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Schematic of a combined-cycle (GUD) power plant with unfired heat-recovery boiler

    Gas turbine system Heat-recovery boiler Steam turbine system

    Electricpower

    Air

    Coolingtower

    Coolingair

    Electricpower

    12

    11

    9

    10

    11 11

    1413

    Fresh water

    Gas turbine system1 Air intake duct2 Compressor3 Gas turbine4 Heat-recovery 5 Steam generator6 Exhaust stack7 Bypass stack8 Generator,

    Transformer

    Steam turbine system9 Steam turbine10 Condenser11 Pump12 Feedwater tank13 Generator 14 Transformer

    8 7 1 2 3 4

    56

    Feedwater

    Natural gas,Fuel oil, etc.

    Condensate

    Circulatingwater

    Main Steam

  • Page 13 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Typical 3-D CAD model of a combined cycle power plant

  • Page 14 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Otahuhu, New Zealandcombined cycle power plant

  • Page 15 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Huaneng Shanghai CCPP 3x400 MW combined cycle power plant (Shidongkou)

    High efficiency level and low emissionsCustomer:

    Huaneng Shanghai Gas Turbine Power Generation Ltd.

    Scope of Supply:

    SGT5-4000F-gas turbines(co-manufactured by SEG)

    Operation: 2006

    1st unit in the record time of 13 month

    Efficiency: 58%

  • Page 16 March -07 Power Generation Group / China Wolfgang E. Kriesten Siemens AG 2007. All rights reserved.

    Schematic of a coal-fired steam power plant

    1 Steam generator2 DeNOx plant3 Air preheater4 Fan5 Electrostatic precipitator6 Desulfurization plant7 Stack

    8 Steam turbine9 Condenser10 Pump11 Feedwater heater12 Feedwater tank13 Generator14 Transformer

    Gypsum Fly ash AIRCoal

    Ash

    Fresh water

    Condensate

    Circulatingwater

    Coolingtower

    Coolingair

    Electricpower

    Mainsteam

    Feedwater

    Flue gas

    Ammonia

    Limeemulsion

    Cleanedflue gas

    Flue gas train Boiler house Turbine building Power distributiongrid

    14

    1010

    9

    8

    13

    11

    10

    12

    11

    1

    3

    2

    4

    5

    6

    4

    7

  • Page 17 March -07 Power Generation Group /