The document discusses trends and developments in electricity systems, including: 1) Increased integration of renewable energy sources like wind, solar, and hydropower both at large and small scales. 2) Growth of distributed energy systems and electrification of consumption through technologies like electric vehicles and heat pumps. 3) Emergence of intelligent grids, consumer-centric business models, and energy storage technologies enabled by digitalization. 4) Transformation of transmission and distribution grids to accommodate decentralized energy resources through automation and sector coupling solutions.

1. Electricity system,
where are you going?
60th Birthday Celebration of Jukka Ruusunen,
President and CEO Fingrid Oyj, Helsinki | August 28, 2018
Michael Weinhold, CTO Siemens Energy Management Division
siemens.com/energy-managementRestricted © Siemens AG 2018

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Consumer-centric
business models
Intelligent grids
Small- and large-scale renewable
• Integration into the electricity grid
(hydro, biomass, wind, photovoltaics)
Distributed Energy Systems
to maximize:
• Energy system efficiency
• Local renewable integration
• Resiliency
Electrification of consumption
• Direct: Heat Pump, E-Car
• Indirect: P-to-Gas, synthetic fuels
Breakthrough Technologies
(performance & cost):
• Wind- and PV power generation
• Energy storage (Li-Ion)
• Digitalization
Political Targets:
• Environment
e. g. Decarbonization
• Competitiveness
• Security e. g. Resiliency
Two Growth Areas as result of the global energy transition:
Intelligent grids and consumer-centric business models

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Agenda
1 „All-electric” agile energy world
3 Outlook
2 Smart Energy System

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The Energy Revolution: Big Picture
Distributed Energy Systems
Distribution and ConsumptionTransmission
From centralized power
and unidirectional grid …
… to fully integrated & intelligent
Central and Distributed Energy
Systems and bidirectional
balancing
Distance from
source to load
Refurbishment/
upgrades
Decentralization
(public/private)
Changing
generation mix
Generation
capacity
additions
3 5421

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Electricity Grids allow direct integration, transmission and
application of renewable Energy
Worldwide Solar PV
capacity growth in 2017-
2022: 400-600 GW
Worldwide Wind
capacity growth in 2017-
2022: 300-350 GW
Worldwide Hydropower
capacity growth in 2017-
2022: 80-120 GW

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Electrical Energy is as versatile applicable as no other
energy carrier
Electrified tracks
account for nearly 1/3
of total tracks globally
100 million e-cars
on the road expected
until 2030
Efficient heat pumps:
4 kWh heat with 1 kWh
electric power

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There’s a huge potential for further electrification
Electrical
heating/cooling,
heat pumps etc.
E-Mobility, E-Highways
5,827
TWh
4,270
TWh
Share of renewables
~30%
Others
(heating)
45%
Transport
33%
Power
22%
~12,882
TWh
2,784
TWh
Final energy consump-
tion EU28 in 2016
Source: eurostat

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Pumped storage H2/Fuels/Chemicals Battery Thermal
Energy storage applications and sector couplings
Application cases by location of storage
Central
Large Utilities
Grid stability, self-supply,
electro-mobility
Power to gas
Power-to-chemicals
Grid balancing
and stability
Power-to-heating and –cooling
Process Heat in industry
Distributed
Small utilities, municipalities, industry – prosumer
Electricity Electricity Electricity Heating, CoolingH2/
Methane
(gas grid)
synthetic
fuels,
chemicals

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Data management and energy systems –
In the age of digitalization they merge and change the world
Internet Mobile
telephone
Computer Industry
4.0
>50%
new “things”
get connected every day
Global data volume
Internet
of Things
~1960 ~1970 ~1990~1980 ~2000 2030~2010 2020~1945
Nuclear PhotovoltaicGas WindEnergy
systems
Decentral
energy
system
of the world’s data
was created last year
… but less than 0.5%
was analyzed or used
by 2020

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Agenda
1 „All-electric” agile energy world
3 Outlook
2 Smart Energy System

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Electric power can be transmitted highly secure
over long distances with minimal losses
Offshore wind
integration
(< 80 km)
• E.g. Beatrice, UK
• AC – 588 MW – 220 kV
• Stabilized grid connection with SVC PLUS
• Offshore transformer module
Large wind
integration
• E.g. corridor projects, Germany
• DC – 2,000 MW – 700 km – 500 kV
• Controlled and secure power flow
• Stabilized grid connection
Hydro power
integration
• E.g. Yunnan-Guangdong, China
• DC – 5,000 MW – 1,500 km, 800 kV
• Lowest losses with bulk-power transmission
over large distances

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Driving the next level of intelligent, digitalized grids
for secure, efficient and sustainable power
Key areas to
step up
Enhanced electrification
Automation
Digitalization
• Sensing
• Connectivity / IoT
• Monitoring
• Controlling
• Managing
• Digital twin
Cloud-based operating system for IoT
e.g. MindSphere
Maintenance,
monitoring & service
Automation & control
Planning, simulation &
engineering
Productivity
and time-to-market
Flexibility
and resilience
Availability
and efficiency
Copyright: Tafyr
Generation Transmission/ Distribution & SmartGrid Consumption / Prosumption
Use cases, applications
Connected power assets and … … connected edge devices
1) DER: Distributed energy resources like smart meters, inverters for photovoltaics, e-mobility assets, storage systems, microgrids, …
Grid
diagnostics
Digital twin Grid simulation Smart
metering
Energy efficiency
and analytics
Monitoring
DER1)
1
2
3 ~
Virtual power
plant
Grid planning Grid control Digital
substation
Asset
management


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A building as a part of the smart energy system
Solar Panels xxx kW Battery storage x MW
Demand response
market
El Spot
Electricity market
Microgridfunctions
Smart
building
automation
Microgrid functionality
A Building, e.g. a shopping mall,
campus or business park
Electric systems for the
demand response use and
micro grid functions
Siemens microgrid and
demand response Cloud

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Solution
Measuring and power-quality devices
and data analytics as a “managed
service” via cloud-based platform
GESTAMP
15
factories worldwide
connected
9
factories
planned
20,000
tons CO2
conserved
15%
costs
cut
Energy for Industry
Energy efficiency analytics
“Energy saving is a must […]”
Pablo de la Puente, Corporate Information System Director, Gestamp
Spanish automotive supplier’s energy consumption
reduced using smart data

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Optimized generation, managed energy trading
& demand response
Sello Shopping Centre
1,68 MWh
battery storage
600kW
Solar PV
€480,000 p.a.
gains in energy
market
Connect power production
and storage to the grid to
optimize demand and
supply in electricity market
281 tons CO2
p.a. emission
reduction
€118,000 p.a.
savings in energy
efficiency and
maintenance

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Why Finland?
Finland is a recognized test bed for digital innovations
Technology oriented country
• The best availability of engineers in the world,
nearly six percent of labor force
• Start up culture
Recognized test bed for digital innovation
• GE (Digital Health Program), Google (data centers)
• Digitalization as the growth driver with
governmental Investment Aid opportunities
Smart grid 2.0 already in use
• Development and test environment
• Most liberal energy market in Europe
• Innovative energy players (Fingrid Oyj), willing to
take new solutions
• Existing DR market structure “Pay Off”
Finland is in the forefront of shaping
the future energy markets
Source: European Commission’s Intelligent Energy – Europe Programme,
Smart Regions project: European Landscape Report

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Agenda
1 „All-electric” agile energy world
3 Outlook
2 Smart Energy System

18. © Siemens AG 2018
RWE Workshop „Speichertechnologien“ , 12.04.2018Page 18 Michael Weinhold, EM TI
Power-to-X: H2O and CO2 electrolysis form the basis for long-term
bulk energy storage, mobility, and manifold chemical processes
Generation ApplicationsConversion
Photovoltaics
Wind power
Water
electrolysis
H2O
O2 H2
Power-to-X: Water Electrolysis – CO2 Electrolysis – e-Fuels and Ammonia
Source: Siemens AG (simplified)
CO2
CO2
electrolysis
Haber-Bosch
N2
Ammonia
Methanol
Chemical synthesis
CO2
CO
Fermentation
Chemicals & Fuels
Fertilizers, H2 energy carrier
Re-electrification, mobility (synthetic fuels), chemical industry
Hydrogen Energy storage, mobility, re-electrification, H2 as feedstock
Chemical products, mobility (synthetic fuels)
Mobility (synthetic fuels)Liquid Fuels
CO as feedstock
CO
Direct synthesis
A
B
C
A B C

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Major transformation in energy networks –
Transmission and Distribution Grids are core action fields
• Further decentralization and
fragmentation with
(semi-)autonomous local
energy systems lead to need
for local rebalancing and
sector coupling
• Electrical / physical,
automation and digital layer
will merge and create a
multilayered, decentralized,
and connected infrastructure
• Role of energy network
provider changes from
operator to system provider
and platform facilitator
Cell 4
Cell 1
Cell 2
Electricity grid
Gas grid
Digital Grid
Cell 3

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Innovative Microgrid solution using block-chain technology –
New York reforming the Energy Vision (REV) program

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Hypothesis for the future Energy System / Roadmap for AI
Real Time Markets
Consumers participate at
(local) Energy Markets via
Digital Agents
Real-time asset management
of all critical grid components
N-0 grid operation through re-routing
of Energy Flows via HVDC, FACTS and
Energy Storage
Drone-
based line
inspection
Auto-pilot operation electricity
grids – humans have only
supervisory functions
Autonomous scheduling of maintenance
and replacement parts ordering
Autonomous
Infrastructure operation
and optimization
System Inertia provided
by Energy Storage, Wind
and PV Time
AI Relevance
Drone-based
substation
inspection
Auto-pilot operation of Infrastructures and
Sector Couplings (e. g. Power-heat) –
humans have only supervisory functions
Artificial Engineer,
Operator and
Manager
Digital Twins for all
relevant infrastructure
and processes
Digital Twins get
connected
Self-commissioning
of Components and
Processes
Voting Question
When will this happen?
• Before 2030
• Later
• Never?

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Summary
Electrical Energy is key for a sustainable Energy System
Huge potential for further electrification
Transmission and Distribution Grids essential
Digitalization and Decentralization rising
Artificial Intelligence gaining momentum
New Business Models around the end consumer evolving

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