Siemens russia

COMPANY PROFILE

2014

Siemens Russia

(+7 495) 737-1000 | www.siemens.com

Power Plant Kirishi is a very good example of power plant modernization in Russia.

Power plant efficiency rose due to modernization with Siemens equipment from 38 to 55%

Comprehensive efficiency solutions Editorial Tim Hands

With more than 3,300 employees currently comprising its Russian division, Siemens offers a wide range of solutions and services in the country, with its Energy, Healthcare, Industry, and Infrastructure and Cities sectors all occupying leading positions, and all recording major successes in 2013.

As the sole integrated energy company serving the entire energy conversion chain, Siemens is uniquely placed as the only company that provides solutions for all energy sectors, including fossil and renewable power generation, power transmission and distribution and energy services, as well as marketspecific complex solutions for the oil & gas industries.

Siemens’ Russian strategy is

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focussed upon regionalisation, with its representative offices in over 30 Russian cities, as well as localisation along the entire value added chain, including research and development.

Energy efficiency programs, implemented in efforts to support Russia in achieving energy savings of up to 79% of the country’s primary energy consumption, also sit high on the company’s list of priorities.

Vice President for Siemens LLC

Russia and Director for Siemens Energy Sector Russia, Andre Petry, details this further: “The energy sectors of Russia, Belarus and Central Asia play a key role in the modernisation of this sector, in compliance with the government programs, so to achieve a greater customer focus and a better understanding of the needs of local customers, we pursue an active strategy of closeness to customers

Siemens Russia and develop reliable customer service support based on a localisation strategy and centres of competence.

We successfully implement localisation projects and continuously realise investment programs that benefit the economies of Russia, Belarus and Central Asia.”

In recent years these localisation projects in Russia have included Siemens High Voltage Products, Siemens Transformers and Rusturbomash, alongside ongoing projects such as Siemens Gas Turbine Technologies and GIS Production.

The company’s decision to strategically position its Russian service facility in Krasnodar is central to its service provisions, as Petry explains: “Our highly skilled service engineers are available 24/7 to help customers throughout Russia and assigned countries with their expertise on commissioning, service, and maintenance of Siemens equipment.

Through the modernisation and upgrading of gas and steam power plants worldwide, Siemens achieved

200 additional megawatts of capacity in 2011 with the same fuel consumption.” Siemens’ high-voltage switching equipment plant also produces state-of-art circuit-breakers for 110kV and 220 kV voltage, specifically targeted to upgrade power grid in Russia and the CIS. The plant is a key part of Siemens’ global facility network, which has been specifically built in accordance with contemporary engineering solutions.

Petry goes on to outline how Siemens Russia looks to fully benefit from the tremendous savings potential on offer in the country. “By replacing inefficient gas-fired steam power plants with combined cycle power plants, the country could tap a high share of the overall potential available. In addition to current generation inefficiencies, power is transmitted and distributed in the country with losses of roughly 11%.

When compared to the average European loss rate of less than 7%, a modernisation of the national grid system could obviously lead to

substantial additional savings. Russia has one of the biggest efficiency improvement potentials in the world, and the Russian government is aware of this potential and has launched various programs to realise these savings.”

In addition to such inefficiencies in power generation, only a small share of Russian industry has adopted energy efficiency programs, as Petry states. “Most domestic companies are aware of energy efficiency potential, but suffer from the lack of capital for modernisation investments.

In addition, energy efficiency in the building sector is especially deficient since consumers generally have no control over heating, there is a low share of private ownership of apartments, and there are heavy price subsidies. In the transport sector, efficiency is adversely impacted by major energy losses and outdated equipment.” This has triggered a significant reaction from Siemens in efforts to improve the Russian energy system and its potential for

Irsching Power Station holds the world record for power plant efficiency in combined cycle (steam and gas) at 60.75%

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Andre Petry

upgrading, with its key levers for improving efficiency each capable of achieving savings in the billions.

In line with such efficiency aims, Siemens’ key energy project in the Russian oil & gas industry sees it set to supply SGT-800 gas turbines, compressors and service to its customer Yamal LNG, itself a joint venture of Novatek JSC, Total SA and CNPC. “It’s the biggest project in the history of our IP business unit,” explains Petry, “and it’s the first project realised in such heavy geographical and climatic conditions, as well as our first experience of equipment supply for the LNG plant’s auxiliary power station. It is also important as Novatek is the biggest independent gas producer in Russia.”

April of this year saw Siemens win the tender for the supply of 28 E-Houses for Yamal LNG. These

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fully equipped and pre-tested power equipment centres, E-houses are the ideal approach for a fast and reliable power supply, consisting of one or several metal or steel modules to protect the equipment they house.

“E-houses are widely used in the oil & gas and mining industry,” Petry states, “and ever more frequently for the installation of equipment in other sectors. They are an optimal power supply solution for every requirement.

The industry needs a reliable and efficient power supply as well as a flexible solution that can be adapted to the individual requirements.

E-houses are fast and easy to install and can be used as interim solutions.

They are easy to upgrade, and use available space optimally.”

All of these upgrades and innovations follow an ongoing global study where Siemens has analysed the Russian energy system and its

potential for upgrading and identified four outstanding areas of focus when it comes to efficiency that could potentially result in huge savings.

“Firstly, efficiency improvements in the power plant fleet provide the greatest leverage for savings. For instance, the natural-gas-fuelled steam power plants widely used in Russia feature particularly low efficiencies. If these were replaced by high-efficiency combined-cycle power plants by 2030, cumulative fuel savings of up to 900 billion cubic meters (bcm) of natural gas would be possible,” says Petry. The market value of this amount of natural gas is around €180 billion, around one third of which would need to be dedicated to the necessary investments in the power plant fleet. Russia’s current planning already envisages tapping half of this potential.

“Secondly, during oil & gas

Siemens Russia exploration, wastage is high and many of the resources are going unused.

For example, two thirds of the gas escaping as a by-product of oil production is being flared off. Russia has plans to reduce flaring by 90 per cent,” he says. If at least half of the natural gas currently being flared off could be captured, an extra 20 bcm of natural gas, with a market value of €4 billion per year, could be put to good use. Ultimately, by 2030, natural gas worth more than €60 billion could be marketed instead of wasted and further potential could be realised by improving efficiency in the gas pipeline; for example, by using highefficiency compressors.

“Thirdly, Russia is already giving the modernisation of its power grid high priority in order to make considerable savings by reducing losses. Around half of the transmission grid in Russia and two thirds of the distribution network are more than 30 years old and no longer state of the art. This means the loss rate is on average 11 per cent,” Petry states. Each percentage point less loss could save natural gas with a market value of around €0.5 billion euros per year in power generation. Upgrading the grid with today’s state of the art technology, with average losses of only seven per cent, would thus save nearly €2 billion per year in fuel costs in power generation.“Finally, efficiency improvements in consumption will also help to modernise the energy chain.

Research suggests that Refurbishing Russia’s residential buildings could halve energy consumption, providing huge savings to both suppliers and customers. More than 80 per cent of residential energy consumption goes into space and water heating so priority needs to be given to thermal insulation, modernising household heating boilers and upgrading district heating systems. Theoretically, this would enable primary energy

sources worth more than €13 billion per year to be saved,” highlights Petry. Many initiatives have already been launched in Moscow and St Petersburg among other big cities, with the goal of improving domestic energy efficiency. These have focussed on thermal insulation of outside walls, installation of consumption meters and monitoring systems, and modern controls for heating systems. Of the four areas of efficiency improvement, this is the most arduous; refurbishing buildings is a long-term affair – in Germany for instance, the government’s target of renovating at least two per cent of all buildings per year is far from being

achieved. Then there is also industry and transportation, where energy efficiency improvements could result in energy savings worth billions each year.

Fortunately, Siemens offers a wide range of energy efficient solutions for power generation, transmission, distribution and consumption as well as infrastructural and industrial solutions so Russia will remain a primary focus for this global power player with Petry stating: “The Russian energy market is one of the most dynamically growing and at the same time one of the most competitive energy markets in the world.”

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