Restricted © Siemens AG 2014 All rights reserved.siemens.com/answers Passion for Offshore - Frank Zimmermann, Head of Sales - 5 th British Chamber Conference on Renewable Energy, Hamburg, October 30, 2014 Wind Power & Renewables Division | Market Unit Offshore

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 2Frank Zimmermann | WP OF S Siemens Wind Power Offshore “Passion in Numbers…” people working for offshore in our company 2,300 offshore turbines sold offshore turbines installed ~5.500 GW capacity) 23 years of offshore experience 20+ year proven product lifetime with >95% real availability 2 modern product families for offshore – “classic” and “DD”

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 3Frank Zimmermann | WP OF S Passion fosters Innovation and creates a New Industry From 30 kW to 6 MW in 30 years 79.8 meters 30 kW 450 kW 1980: 11 meters 1991: 35 meters 2012: 154 meters 6 MW

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 4Frank Zimmermann | WP OF S However, …. Despite growth of market and turbine sizes, Offshore Wind continues to depend on incentive schemes. Markets Customer landscape changed in breathtaking speed from “cash payers” to financed investors. Customers Cost of energy Positive effect of innovation and growth seems to be “eaten up” by increasingly complex projects. How do we retain market leadership? How do we ensure a sustainable offshore market The industry needs to ensure a sustainable offshore market !!!

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 5Frank Zimmermann | WP OF S Our fundamental motivation for the development of future offshore wind turbines is reduction of LCoE  Reduction of investment  WTG investment  BOP investment  Reduction of O&M Cost  Increase of energy output

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 6Frank Zimmermann | WP OF S Offshore cost reduction is effective in multiple areas: reaching LCoE below 10 € ct/kWh before 2020 Offshore CoE Targets, Wind farm level in € cent/kWh Main levers per Cost Segment 5€ cent/kWh Based on the SWT turbine; Offshore project 1.000MW WTG ++  Industrialization  Logistics improvements  Installation & commissioning Target Cost % 28% 18% 27% AEP increase % Cost target % 28% 18% 28% Cost out % 45% 14% 25% Baseline % 32% 17% 27% C-BOPWTGAEP increaseE-BOPOPEX (disc.) Foundation  Simplified design, industrialized production  Quayside completion Grid  New cost efficient solutions  Industrialized components OPEX  Increased robustness  Optimization of Setup AEP (Annual Energy Production)  Turbine upgrades  Improved aerodynamics  Increased availability

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 7Frank Zimmermann | WP OF S In 2020, wind turbines may look as today – but will be very different … Onshore Main Data  Power rating: 2-4MW  Rotor: m  Hub heights: m Technologies  Blades with structural- aerodynamic coupling for passive load reduction  High-stiffness fibers in blades (carbon, new fiber types)  Direct drive transmission  Commoditized design, standard components  Ancillary services, fault robust with short-term storage Offshore Main Data  Power rating: 6-10MW  Rotor: m  Hub heights: m Technologies  Basics same as onshore technologies  Tailored redundancy concepts for increased robustness  Two-year service intervals  Electrical and civil infrastructure at 40% of today‘s cost  Simplified installation w/o piling

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 8Frank Zimmermann | WP OF S Our baseline – Siemens 6MW DD offshore turbine Blade  75 m, 25 t  20,000 kNm moment (root) Hub  Ø4.5 m, 40 t Generator  Ø6.5 m, 100 t, 6-11 rpm  5,500 kNm torque Bedplate  3.5 x 3.5 x 4 m, 25 t Power converter  2 x 3 MW, AC–DC–AC Transformer  7 MVA, 690 / 33,000 V Tower  100 m, ø4 m / ø6 m, 300 t

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 9Frank Zimmermann | WP OF S Ideas beyond wind turbine improvement - e.g. today’s Infrastructure design needs Innovation

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 10Frank Zimmermann | WP OF S The radical idea to the platform challenge : Simply “No platform!” Measurement and protection Turbine switch gear and distribution Array switch gear Cable hang-off Complete AC Booster Turbine Concept: Platform with 300MVA 220/66kV transformer Transformer Deck

October 30, 2014 Restricted © Siemens AG 2014 All rights reserved. Seite 11Frank Zimmermann | WP OF S Offshore Wind, Passion beyond clean energy generation… Huge benefits for society Great potential for job creation Reduction of fossil fuel imports Huge export opportunities Nearly CO 2 -free power generation High level of reliability

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