1. The SEC Power Forum Wolfgang Braun CEO Energy Transmission Middle East, SIEMENS Session IV: Opportunities in Transmission & Distribution Related Industries

2. © Siemens AG, 2012 Wolfgang Braun Head of Power Transmission, Siemens Energy Sector Middle East Riyadh, May 11, 2013 Extending grids in a changing energy system

3. Page 3 May 11, 2013 © Siemens AG Wolfgang Braun Middle East: Installed capacity in GW The future energy mix in Middle East becomes more different – Gas and Renewables Installed capacity 2030 New capacity additions (’12-’30) Retirements (’12-’30) Installed capacity 2011 Single Cycle Power Plant Steam Power Plant Nuclear Power Plant Hydro Renewables Engines 758 41% 15% 17% 3% 6% 11% 7% 576 41% 12% 14% 4% 14% 12% 151 14% 28% 29% 1% 26% 332 29% 26% 28% 1% 8% 1% 9% Combined Cycle Power Plant

4. Page 4 May 11, 2013 © Siemens AG Wolfgang Braun The original linear energy system will evolve into a complex power matrix Renewables calls for intermittency management Growing share of distributed power generation – Higher demand for grid technology Growing share of renewable energies – New challenges for the grid

5. Page 5 May 11, 2013 © Siemens AG Wolfgang Braun FACTS Static Var Compensator to control dynamically the network FACTS series compensation to stabilize long AC transmission lines HVDC for connecting and stabilizing grids HVDC for long distance transmission Solutions for grid stabilization 1.2. 3. 4. Siemens solutions

6. Page 6 May 11, 2013 © Siemens AG Wolfgang Braun Long Overhead Lines with high Trans- mission Capacity and limited Right-of-Way Long Cable Transmissions Asynchronous Interconnections New Links in Grids where Short-Circuit Currents are at upper Limits Fast Control of Power Flow Reduction in Transmission Losses for long Distances HVDC: Bridging long distances highly efficient HVDC is a unique solution for: DC System System 1 System 2 AC AC 1.

7. Page 7 May 11, 2013 © Siemens AG Wolfgang Braun Exact Control of Power Flow in either Direction Enhancement of AC System Stability Reactive Power Control / Support of AC Voltage Frequency Control Overload Capability Emergency Power Functions Power Oscillation Damping HVDC is a Firewall against Cascading Disturbances HVDC Controllability is beneficial for: HVDC: Connecting and stabilizing grids 2.

8. Page 8 May 11, 2013 © Siemens AG Wolfgang Braun Increased power transfer over long AC lines Damping of active power oscillations Load flow control in meshed systems Series Compensation Applications are beneficial for: Flexible AC Transmission Systems: Stable power supply 3. Thereby significantly improving the stability and performance of existing and future transmission systems

9. Page 9 May 11, 2013 © Siemens AG Wolfgang Braun Fast voltage control Reactive power control Damping of power oscillations Unbalance control Static Var Compensator are beneficial for: Static Var Compensator: Insurance for the Network 4. Thereby significantly improving the stability and performance of existing and future transmission systems

10. Page 10 May 11, 2013 © Siemens AG Wolfgang Braun Fast voltage control Reactive power control Damping of power oscillations Unbalance control Static Var Compensator are beneficial for: Static Var Compensator: Insurance for the Network 4. Thereby significantly improving the stability and performance of existing and future transmission systems

11. Page 11 May 11, 2013 © Siemens AG Wolfgang Braun Our Portfolio Turnkey Substation Solutions Turnkey Substation with AIS Turnkey GIS in Urban Areas Grid Access of Renewables GIS in Special Buildings

12. Page 12 May 11, 2013 © Siemens LLC Wolfgang Braun The imperatives of Middle East Strategy … … are embedded in the Siemens values Middle East Strategy is based on the Siemens values and to secure long-term business success Get closer Be the pioneer Be local Joining forces to consistently outperform our competitors Focusing on innovation- and technology-driven growth markets Maintaining a presence as a strong local partner to our customers Excellent InnovativeResponsible Achieving high performance and excellent results. Being innovative to create sustain- able value. Committed to ethical and responsible actions. Sustainability – Our guiding principleLeading market and technology positions  Energy efficiency  Industrial productivity  Affordable and personalized healthcare  Intelligent infrastructure solutions The pioneer in