Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 1 The Smart Grid by Siemens Constant energy in a world of constant change. © Siemens AG All rights reserved.

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 2 There is nothing permanent except change Energy systems worldwide are changing…

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 3 18% 5% 22% 20% 21% 9% 21% 10% 12% 3% Distribution Losses Non-technical Losses Key drivers for new solutions

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 4 Weekly loading of a transformer station in the rural area of LEW-Verteilnetz GmbH – 2003 and 2011 Source: LEW Load in kW :000:00 12:00 Load profile 2003Load profile 2011 Changing infeed patterns are challenging existing grid infrastructures

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 5 Significant changes in energy systems require a new Smart Grid infrastructure Challenges in changing energy systems Renewable and distributed generation Limited generation and grid capacity Aging and/or weak infrastructure Cost and emissions of energy supply Revenue losses, e.g. non-technical losses Smart Grid Solutions Balancing generation & demand, new business models Load management & peak avoidance Reliability through automatic outage pre- vention and restoration Efficient generation, transmission, distri- bution & consumption Full transparency on distribution level and automated loss prevention

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 6 True customer value in Smart Grids: The Smart Grid Suite by Siemens End-to-End Security

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 7 Steps towards a Smart Grid Central Fossil Generation Renewable Generation Consumption Decentral Generation Distribution MeteringTransmission / Rail  Develop and launch new platforms  Introduce new solutions  Enable full observability & control on Distribution level  Connect & manage all gen. and consumption units through IT based systems to the grid  Offer end-to-end optimizat.  Launch grid applications  Expand offering to –Water –Gas –Heat Develop Transmission Business Lead Distribution Grid Automation End-to-end management Expand to other media IIIIIIIV

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 8 Key features  First time implementation of a distribution feeder automation: –Automatic fault location and repair –High-speed remedy in 300 milliseconds Benefits  Secured supply for hospital in distribution area (previously out of power in outage situations)  Drastic reduction of system downtimes  Upgrade of aged grid at relatively low cost A&N Electric Cooperative Stable supply to protect critical infrastructure through feeder automation for the A&N Electric Cooperative

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 9 Key features  Software platform connecting AMI network with an MDMS system  Bidirectional communication and validation solution  DRMS for load shedding through the legacy system Customer benefits  Automation of manual processes  Automated customer billing and settlement via the utility billing system Wabash Valley Power Authority Load shedding solutions to stabilize the system through AMI and Demand Response solutions for Wabash Valley Power

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 10 Key features  Integration of EnergyIP with 2 AMI systems to support planned 7M metering points mass toll out  Implementation of multi organization capabilities to support CPFL's 8 generation companies  Localization of EnergyIP to Brazil & Portugal Customer benefits  Operational cost reduction  Reduction of field staff  Improved energy quality  Reduction of non-technical losses CPFL Energia Smart Metering: CPFL Energia – the first meter data management (MDM) solution for Brazilian Market

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 11 Key features  Virtual Power Plant with 12 decentral sources  Distributed Energy Management  Automated deployment and trading schedule Customer benefits  Reliable planning and forecasting of decentral generation  New sales alternatives for small-scale, distributed energy sources  Minimization of generation and operational costs Stadtwerke München (SWM) Making business sense out of distributed generation – SWM Virtual Power Plant

Infrastructure & Cities Sector – Smart Grid Division © Siemens AG All rights reserved. October 2012Page 12 Author Successfully implemented – today.