Siemens - Pictures of The Future

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Pictures of the Future

The Magazine for Research and Innovation | Fall 2013
Solutions for Tomorrows World
Integrated Systems
Harvesting synergies from disparate systems
Resilient How Ideas Infrastructures Mature

Maximizing survivability in a world of risks Generating innovations from inspiration
Pictures of the Future | Editorial
Pictures of the Future | Contents
Joe Kaeser is President and Chief Executive Officer of Siemens AG.
Success Factor Innovation

Innovations generate prosperity and sustainable competitiveness. Switzerland, Singapore, the Scandinavian countries, the U.S., and Germany regularly appear at the top of the Federation of German Industries innovation index. In these countries, the interplay of science, education, business, government, and society currently works best. But other countries are also improving their innovative capability. For example, China now has one fifth of the worlds researchers; Chinas investments in research and development (R&D) are significantly greater than Japans; and in terms of domestic patent registrations China is the world leader. The rules that apply to countries are also valid for companies. The higher profits generated by innovative products and services enable firms to invest more in R&D, modern plants, growth, and jobs. Werner von Siemens believed that his companys success was due to the fact that the products we make are largely based on our own inventions. The Siemens name is linked with the beginning of the age of electricity, the first power plants, electric railroads, industrial automation, and pioneering imaging processes in medical technology. In the rankings published by patent offices, Siemens has been in the top group for many years. In a recent survey by the Boston Consulting Group in which 1,500 top managers were asked to name the most innovative companies of 2012, our company was among the top 30. Whats more, Siemens has received the Future Prize the German Presidents Award for Technology and Innovation four times. Thats more than any other company. Nonetheless, in spite of an average of 41 innovations per working day and a continuous increase in R&D investment over the years to more than 4 billion, Siemens gross margin recently decreased by several hundred basis points. In other words, after the deduction of manufacturing costs, Siemens had less profit from its sales than before. Put simply, we now receive a lower premium for our products. We therefore have to ask ourselves some key questions: Has our innovative strength declined? Are we investing in the most attractive and future-oriented areas? Are our processes for transforming an invention into a commercially successful innovation on the world market still sufficiently fast and effective? A look at our most profitable business areas is revealing. Most of them not only occupy the Number One or Number Two position on the world market; they are also technological leaders. They foster a culture of excellence in their innovation and production processes, which are continually improved. They also regularly compare themselves with their best competitors. This is how things should be throughout Siemens in the future! We must continuously strive for innovation leadership and defend our gains. Those who stand still will be overtaken! Thats because market requirements, competitors, and technologies are constantly changing. Conditions are becoming tougher, as this issue of Pictures of the Future demonstrates. We are at the beginning of a new age of electricity. Demand for electric power is increasing three times faster than the worlds population. Societys need for sustainability is driving advances in energy efficiency. And digitization is entering the field of electrification partly as a result of new applications: computer centers for the massively growing volume of data traffic (p. 84), industrial automation (pp. 30, 32), smart grids (p. 62), new methods of extracting oil and gas (p. 60), and electric mobility (p. 105). At the same time, energy systems are in a state of transition worldwide. In tomorrows cities (p. 17), it will be necessary to combine these systems intelligently so that they will be able to provide a green and costefficient supply of power, heat, cooling, gas, and drinking water (p. 24). Building and traffic infrastructures must be integrated. Everywhere, including the healthcare sector, it will be necessary to integrate complex stand-alone systems into a smoothly operating whole. Systems integration (pp. 1243) is a key challenge of our time. Here, a broadly structured provider of infrastructures such as Siemens is ideally equipped to provide solutions. It can help to make infrastructures more robust by making them capable, for example, of coping with natural disasters (pp. 4885) or creating customer utility from large data volumes (p. 80). But its not only technologies and markets that are changing. Methods of innovation are also being reinvented (pp. 90113). Today the emphasis is no longer on the insights of individual researchers in their labs, but rather on cooperation between researchers, scientists, fast startup companies, and leading international customers. A firm such as Siemens must address these factors if it is to remain profitable. After all, one fact has not changed since Werner von Siemens days: We will be successful only if we impress our customers through our skillful engineering, our innovative power, our sense of quality, and our reliability. These are the things Siemens stands for! They epitomized our company yesterday and will continue to do so in the future.
Integrated Systems
Resilient Infrastructures
How Ideas Mature
112 114 117 119 120
120
122 124 128 130 132 134 135 137 139 141
Scenario 2062 Utopia on a Chip Trends Making Sense of Complexity Urban Energy Efficiency The City Next Door City Intelligence Platform Cities with Brains Efficient Building Management U.S.A.F. Academy Brings Energy Costs Down to Earth SENSEable City Lab MIT Researchers on Living in an Open-Air Computer Electrical Grids Harmonizing Supply and Demand Energy Optimization The Promise of Integrated Grids1 Wind Heating Eco-Energy Takes the Floor Smart Controls Learning from Robots Facility Planning Building in Virtual Space Facts and Forecasts Smart Cities: Great Business Potential Security Systems Data Synergies Equal More Security CT and Ultrasound Fusion Opening a Three-Dimensional Window Personalized Prosthetics From Bytes to Bones IT Solutions Networking U.S. Healthcare
148 150 153 156
158 160 162 164 166 169 171 173 174 176 178 180 182 184
Scenario 2050 Protective Island Trends A World of Risk New York City Securing the City Interview with Prof. Peter Hppe As CO2 Level Increase Extreme Weather Events Proliferate Facts and Forecasts A Growing Spectrum of Risks Subsea Technology Research In Uncharted Waters Power Grids in the U.S. Keeping the Lights on Energy Storage Bottled Sunlight Tsunami in Japan Odaka Revisited Smart Grids Keeping Paradise from Going Dark Geothermal Power Energy from the Earth Water Networks Big Savings in the Pipeline Wireless Sensors Measuring Tons in Microseconds Traffic Management Cutting Smog with Data Historic Infrastructures Resisting Times Ravages Big Data Early Warning Systems Interview with Prof. Hans Uszkoreit A Legal Framework for the Virtual World Computer Centers Smart Diet for Energy Eaters
190 192 195 196 198 100 102 105 106 109
109
111
Scenario 2035 Deep Vision Trends Reinventing Innovation Strategies From Ideas to Innovations Facts and Forecasts Leading through Innovation Patents The Business of Defending Ideas Creating Ideas Knowledge-Sharing Culture Pictures of the Future Predicting the Next Big Thing Electric Mobility Test Drive in Sweden TTB Munich An El Dorado for Startups Interview with Startup Pioneer Alex Farcet Where Fear and Experience Meet Interview with Dr. Sven Scheuble, TTB Siemens and Startups: Many Mutual Benefits High-Altitude Laboratory Cutting-Edge Research at the Top of the World
Cover: Innovation, resilience and the integration of technologies will drive the development of automated deep sea energy extraction. This image of the future envisions systems driven by their own electrical networks like those now being developed by Siemens in Trondheim, Norway (pp. 60, 90).
Features
184 Short Takes News from Siemens Labs 186 Transition to Renewables Germanys Energy Future 189 Africa Angolans Come Home 144 Rural Healthcare From Animal Sacrifices to Science
186 Mandela School South Africas School of Thought 187 Green Power for South Africa A Fresh Wind Along the Coast 188 Leipzig Zoo Technologies for the Tropics 114 Feedback 115 Internet and Publications
Pictures of the Future | Fall 2013
Pictures of the Future | Short Takes
Pictures of the Future | Short Takes
Biofuels from Steel Plant Exhaust Gases

Siemens and biotech company LanzaTech are working together to use gas that is rich in carbon as a basic raw material and energy source. Their focus is on steel mill exhaust gases, which can be converted into biofuels and basic chemicals. The technology is based on a fermentation process developed by LanzaTech. The process enables steel manufacturers to convert exhaust gases such as CO, CO2, and hydrogen into environmentally compatible fuels and chemicals. The procedure reduces steel mill CO2 emissions and opens up a new source of biofuels that wont be in direct competition with food production. At the heart of the new technology are special microorganisms that convert CO and CO2 into ethanol, acetic acid,
S. Koreas Combined Cycle Power Plant Sets World Efficiency Record

Asias most efficient fossil fuel-fired power plant is now on line with a gross efficiency of almost 61 percent. The Dangjin 3 plant achieved this result with the help of a Siemens H-Class world-record-setting turbine and a special steam cycle. The facility has an electric output of 415 megawatts. The Dangjin 3 combined cycle plant was built by Siemens in Dangjin City, which is around 120 kilometers south of Seoul. Siemens served as consortium leader with GS E&C in a turnkey project that was handed over 12 days ahead of schedule. South Korea has taken delivery of eight of the 24 H-Class turbines sold by Siemens to date (see Pictures of the Future, Spring 2013, p. 60). The country imports nearly all of its gas as liquefied natural gas that is shipped by sea. The efficiency of gas-fired power plants therefore plays a very important role in South Korea. In addition, demand for electricity is rapidly rising. As a result, South Korea plans to increase its generating capacity from the current level of 95 gigawatts to 150 gigawatts by 2030. At that point, gas-fired plants will account for around one third of South Koreas The Dangjin 3 power plant south of Seoul. power generation facilities.
New ceramics are helping to shrink transformers.
Siemens first HVDC North Sea platform will transmit power from offshore wind farms onto land.
Ceramics Are the Key

Thanks to the development of new types of ceramics in which transformers can be embedded, transformers for power supply units can now be reduced to one fifth of their former size. The size reduction will also make it possible to integrate switched-mode power supply units into the heat sinks of LED modules. Such units were previously a separate component. Siemens researchers developed the technology with partners in a project for the activation of LEDs by means of LTCC-ferrite modules (ALFerMo). To miniaturize the transformers, the scientists increased their switching frequency by a factor of four and developed a new layered system based on magnetic ceramic films.
Power-Saving Conversion
A project designed to link German offshore wind farms to the land-based power grid took a major leap forward in August 2013 when Siemens completed the installation of its first high-voltage direct-current transmission platform (HelWin1) in the North Sea. The platform will play a key role in bringing electricity generated by offshore wind turbines onto land. It will convert the alternating current (a.c.) from wind turbines into direct current (d.c.). This is important because the cable transporting the electricity onto land is 130 kilometers long (85 km underwater) and its transmission losses would be excessive if a.c. were used. Use of efficient d.c. technology results in losses of less than four percent. The customer, grid operator TenneT, will begin delivering cleanly-generated electricity to some 500,000 households on the German mainland in 2014. The platforms counterpart, a land-based station that was also supplied by Siemens, is located in Bttel, near Hamburg. This facility transforms the d.c. back into a.c. the form of electricity used by the grid. HelWin1, which is fully automated, is scheduled to go on line in the second half of 2014. It will be possible to remotely monitor and control the platform from land thanks to numerous cameras and sensors. Altogether, it took seven days to transport the platform by ship to its final destination and another four days to install and anchor it. HelWin1 is a colossal facility: It is 75 meters long and 50 meters wide, and it weighs 12,000 tons. The ten steel pillars that anchor it to the sea floor are up to 100 meters long about as high as Londons hallmark, Big Ben. HelWin1 has seven decks that house its high-voltage direct-current transmission system, as well as quarters that will be used by maintenance crews. The platform is designed to reliably operate for decades in the rough waters of the North Sea.
Efficiency in the Arena

The new Man Garrincha national stadium in Braslia is considered to be the most modern and sustainably designed sports arena in Latin America. It was the venue for the opening game of the 2013 Confederation Cup and will host seven World Cup games in 2014. Siemens supplied state-of-the-art building systems for the facility, including building automation technology that manages not only the demand, measurement, and use of water and electricity, but also climate control equipment and the integration of fire, alarm, and security systems. Thanks to its clean technologies, Man Garrincha may become the worlds first sports arena to receive LEED Platinum sustainability certification.
Vegetable Oil: Much More than Just a Salad Dressing

Siemens has built the worlds first large-scale vegetable oilbased transformer. The unit, which is located in the Bruchsal-Kndelweg substation near Karlsruhe, Germany, will link the 380-kV ultra-high voltage level with the 110-kV grid. Transformers increase or reduce an a.c. voltage so that power can be appropriately transmitted. Due to the high currents and voltages involved, transformers get hot and must be cooled using oil. Up until Worlds first vegetable oil-based transformer. now, petroleum or silicone oils have been used for this purpose, because they conduct heat very well and also provide good insulation against electrical flashovers. However, these oils are highly flammable and can cause environmental damage. In contrast, vegetable oils made from rapeseed, soy, or sunflowers are biodegradable and have a much higher flashpoint. Their superior fire protection classification also means that they can be used in densely populated residential areas. The new Siemens transformer weighs just under 340 tons and contains 100 tons of insulating oil made exclusively from renewable plant-based raw materials.
Bacteria make biofuels from steel mill exhaust gas.
acetone, and other basic chemicals. The ethanol can replace biofuels that are currently derived from agricultural products. The CO2 balance of ethanol from steel mill exhaust gases is 50 to 70 percent lower than that of petroleum-based fuels. The technology was successfully launched at the Baosteel plant in Shanghai, China, in 2012. On average, about 1.8 tons of CO2 are produced for every ton of steel manufactured. The iron and steel industries account for roughly 6.7 percent of global CO2 emissions. A steel mill that currently uses its exhaust gases to generate electricity can lower its CO2 emissions by a third using the new fermentation process.
Man Garrincha Stadium in Braslia.
Pictures of the Future | Transition to Renewables
Siemens presented nine action areas for sustainable energy systems to government and industry leaders at the Berlin event.
The Siemens tent featured discussions on policies and solutions. The Energy Dance was a big hit.
Germanys Energy Future

In June, Siemens hosted a nine-day Energy Transition Dialog in Berlin. The event brought together German politicians, representatives of the business and scientific communities, and Siemens experts to discuss the development of Germanys energy system. The dialog revealed an urgent need for new approaches but also many existing solutions for shaping the new age of electricity.
The energy transition is Germanys project of the century. The country plans to fundamentally change its energy system by 2050 in a way that will make it unique in terms of sustainability, climate protection, and independence from fossil fuels. Plans also call for Germany to abandon nuclear power. However, there are still many problems. For one thing, electricity prices are steadily rising and have more than doubled since 2000. Electricity costs in Germany are now two to three times higher than in the U.S. German industry is therefore concerned about its competitiveness. Moreover, despite the fact that renewable energy sources now account for more than 20 percent of the electricity mix in Germany, CO2 emissions are actually rising in the country (by two percent in 2012) due to the increasing use of cheap coal. Fortunately, power outage duration in Germany remains very low, at around 15 minutes per capita and year (the OECD average is 53 minutes).
Nevertheless, German grids are increasingly being stretched to their limits. Putting the energy transition back on track urgently requires a constructive dialog among all stakeholders i.e. the government, citizens, scientists, and industry. The Siemens Energy Transition Dialog (June 3 11, 2013, in Berlin) gave decision-makers from the government, industry, associations, and the scientific community, as well as interested individuals, the opportunity to talk to Siemens experts about the future of the German energy supply system. Discussions focused on existing solutions, those that remain to be developed, changes that must be made to the overall framework, and international examples of best practice. The goal was to gain a comprehensive overview of the areas in which action needs to be taken. The centerpiece of the event was an exhibition tent that featured numerous exhibits and descriptions of reference projects that
gave visitors an idea of what it means to restructure the energy system of an entire country. The exhibition also illustrated that Siemens is the only company worldwide that already offers, or is developing, solutions in all of the areas in which action must be taken. Such solutions include innovations for wind and gas turbines, intelligent building management systems, smart grids, energy storage devices, and cross-border electricity highways. All of these are important for the German economys competitiveness and for the quality of life of the countrys citizens. The Siemens tent also featured discussions with, and presentations by, high-ranking representatives from government, industry, and the scientific community. The dates for the event in Berlin were carefully chosen. For example, the German Municipalities Conference was also held in Berlin from June 3 to 4 and was attended by some 800 mayors from all over the country.
The annual conferences of the German Electrical and Electronic Manufacturers Association (ZVEI, June 56) and the Federation of German Industries (BDI, June 11) took place in the Berlin Tempodrom, which is directly adjacent to the Siemens exhibition tent. The dialog attracted some 2,000 executives from Germanys top companies, as well as high-ranking politicians, including the countrys Minister of the Environment and the parliamentary leaders of the Social Democratic and Green parties. All of the participants were able to gain in-depth knowledge of the challenges, opportunities, and solutions associated with the energy transition. We believe we are obligated to explain to politicians what is possible and practical, and how trends in the energy sector are developing, said Dr. Udo Niehage, who is responsible at Siemens for all matters pertaining to the energy transition. Many German companies take a similar view of the challenges
associated with the energy transition, as was revealed in a Siemens survey of 250 customers from various sectors. For example, 90 percent of the companies said they support the energy transition, but 93 percent were not satisfied with its implementation. Affordability, security of supply, and energy efficiency were the top priorities for over 90 percent of the companies. They also expressed their desire for a restructuring of the electricity market, greater support for energy efficiency, and more research into energy storage solutions. Three-point Plan. Members of the Siemens Managing Board were on hand at the dialog to discuss the discrepancies involved in the restructuring of the energy system and to present possible solutions. Peter Lscher, who was still the CEO of Siemens at the time, suggested to politicians, business leaders, energy experts, and the media that a firm
expansion target for renewables should be abandoned and that the focus should instead be on CO2 reductions. To this end, greater use should be made of highly efficient combined cycle power plants and wind turbines. Thats because state-of-the-art combined cycle plants, which have an efficiency rating of over 60 percent, generate less than half the level of CO2 emissions produced by a new coal-fired plant, while the cost of wind power is set to decline to that of conventional power plants in the future. This approach would also enable Germany to meet its climate protection targets. A study conducted by Siemens Energy Sector found that the investments and operating costs needed to achieve this would be at least 150 billion lower by 2030 if Germany took this approach rather than limitlessly expanding renewables. Our climate target for 2030 can be achieved with a lower level of renewables and at a much lower cost, said Lscher.
Pictures of the Future | Transition to Renewables
Pictures of the Future | Africa
It makes both economic and environmental sense to strive for a 40 perce nt share of renewables in the mix by 2030, rather than the planned 50 percent. Siemens has therefore drawn up a threepoint plan for a cost-efficient energy transition. The first point involves restructuring the electricity market and radically reworking Germanys Renewable Energy Sources Act (EEG). This also means that suppliers of renewables will have to face competition and
take on more responsibility when feeding energy into the grid. They need to provide electricity as reliably as other power suppliers, which means they will have to buffer themselves with flexible power plants or energy storage devices. Such a step would create an energy market in which only the amount of electricity that is actually needed is delivered. Subsidies for renewables will have to be structured in line with market forces, with an emphasis on greater efficiency, and with auc-
Challenges from the Customers Perspective

97% 95% 89% 86% 80% 73% 72%
perts about a new structure for the electricity market. It became clear that despite very different proposed solutions, the representatives of Germanys political parties are in agreement as to where problems currently lie. Germanys Minister of the Environment, Peter Altmaier, pointed out the challenges that still need to be overcome. We need ceilings for electricity prices, and the EEG should be extensively reformed, he said. We also have to ensure that power plants that produce efficient and clean fossil-based energy become more closely integrated with renewable energy producers, and that all of these systems are further developed in line with the goal of grid expansion. The dialog was also a big event for the public, providing visitors with a lot of information as well as entertainment. For example, a choreographed Energy Dance was staged at the Sony Center at Potsdamer Platz, and the Energy Transition Path treated visitors to a scavenger hunt that focused on the new age of electricity. Many people came to see the exhibition in the tent, where various exhibits and Siemens experts provided visitors with detailed information about the energy transition. The Energy Transition Dialog illustrated that most of the technical solutions that are needed to achieve a transition already exist.
Angolans Come Home

For a long time Africa was considered the lost continent. However, the economies of some African countries, such as Angola, are now growing faster than Chinas. Siemens is supporting Angolas efforts to achieve sustainable growth. It is also helping countless people by boosting the capacity and resilience of the countrys overburdened infrastructure.
Gisela Gonalves long ago learned to cope with the chilly wind and drizzling rain in London. Gonalves, a native of Mozambique, has been working in London as a director at Elite, a human resources consulting firm, for the past five years. She specializes in recruiting people for jobs in Africa. Angolan oil and gas companies in particular are desperately trying to find highly trained workers, she says. At the same time, in Luandas muggy heat, Jos Miranda takes a sip of orange juice that costs US$10 per glass. He is looking across the bay of Angolas capital. Ever since he came here, Miranda, 29, no longer goes to a British pub after work; instead, he sits on the terrace of the Espao Bahia, a popular Luandan bar. Although I miss London, of course, I miss my wife and kids even more, as Ive had to leave them behind for now, he says. However, when an oil company offered Miranda a job in Africa, he couldnt refuse. His story is a typical one for a whole generation of young Angolans who have scattered throughout the world in order to escape from decades of civil war, but are now being drawn back home by their countrys oil and gas boom. Miranda studied at a UK university, where he earned a degree with honors in marketing and advertising. However, he failed to get a job afterwards because of the countrys difficult economic situation. Of course I could have filled shelves in a supermarket, but thats not why I went to university, Miranda explains. At Gonalves recommendation, Miranda earned a supplementary qualification in supply chain management. At a recruiting fair for Angolans, he then landed a procurement job at a U.S. oil company in Luanda. Most economies north of the Mediterranean Sea are barely growing. By contrast, economic growth has averaged around five percent per year in sub-Saharan Africa over the last three years. Whats more, some of the countries in this region are now posting
Opportunities for the Energy Transition

What can Germany learn from selected international best practices? This question was addressed by McKinsey consulting with support from Siemens in a study presented during the Energy Transition Dialog in Berlin. The study examined 20 selected examples of best practices from all over the world in terms of environmental compatibility, cost-effectiveness, and security of supply. It also examined why certain measures have yet to be implemented in Germany, or are being implemented only to an insufficient degree. International solutions have been developed for the entire energy value chain from power generation and distribution to enhanced efficiency in buildings, industry, and transport. The U.S., for example, is now the leader in the targeted control of electricity use using measures that temporarily reduce electricity demand, while Brazil, Denmark, and the Netherlands are modernizing their energy systems with the help of auctions for wind farm contracts.
tions being an option. For example, contracts for the construction of a new wind farm could be awarded to companies that offer the lowest price for feeding their power into the grid. Secondly, there must be a stronger focus on energy efficiency, since wasted energy also produces emissions. Finally, government and the private sector need to align their policies, and there has to be closer coordination between individual countries in Europe and individual states in Germany. New Technical Solutions. Together with other experts, Siemens CTO Klaus Helmrich organized an Innovation Day at the Energy Transition Dialog. The event highlighted the importance of technical solutions for the energy transition, such as those for smart grids and energy storage devices. On the following day, Siemens Energy Sector CEO Michael S talked with high-ranking politicians and ex-
Af fo rd Se ab cu ili rit ty y of su En pp er gy ly ef fic Cl Eu i i m ro en at pe cy e m -w pr at ide ot e e e c Su pro ne tio bs t r n id ect gy io an ie n d sa Hi p nd o cli gh in licy er no sh v ar at e io of ns re ne w ab le s
Three-point plan for a cost-efficient energy transition: a restructured electricity market, greater energy efficiency, and Europe-wide harmonization
Siemens now offers, or is developing, solutions in Germany and in international reference projects for all the areas in which action needs to be taken to ensure a successful energy transition. More than 90 percent of the Groups environmental portfolio and over 30 billion of its sales involve products and technologies for sustainable energy systems. A total of 23 billion in sales is accounted for by highly energy-efficient products for buildings, industry, and transportation. Siemens is convinced that if Germany implements the energy transition in an intelligent manner, it will create economic opportunities for the country and its industries. After all, the technologies for renewable sources of energy, highly flexible gas-fired power plants, smart grids, and above all energy efficiency will also be needed in many other countries. Sebastian Webel More @ www.siemens.com/energy-transition
The flames of the liquefied natural gas plant in Soyo give many Angolans hope that they will have a job and a better life. The government wants the proportion of local value creation to continue to increase.
higher growth rates than China. Angolas economy, for example, is expected to grow by 8.2 percent this year. Night has fallen on the Bay of Luanda. Lights go on in the old Portuguese colonial buildings, which are becoming overshadowed by more and more skyscrapers. Excavators are digging up the earth in order to create an elegant boulevard along the beach. The pattern of its cobblestones will be somewhat like that of the Copacabana in Rio de Janeiro. In order to earn a livelihood, children and adults offer passing drivers chewing gum, bottles of water, and other small items. So where precisely does Angolas new wealth come from? Around 60 percent of Angolas proven oil and gas reserves can be found in Soyo, which is more than 300 kilometers north of Luanda. Most of these de-
In Soyo, Figueiredo and his team have built a larger power plant with 150 MW of capacity. It is equipped with Siemens gas turbines, which will supply electricity to the adjacent liquefied natural gas (LNG) facility. The LNG plant cools and compresses the natural gas that is extracted offshore so that it can be loaded onto large ships and transported to consumers all over the world. Figueiredo can see the LNG facility during his walks along the Praia dos Pobres (Beach of the Poor). The factory looks like a spaceship that has landed in the jungle. It consists
Unlike Miranda and Figueiredo, the locals generally dont have university degrees from London or Lisbon. Many of them live from hand to mouth and must subsist on the equivalent of less than one U.S. dollar per day. Armando Antnio Kombu, 26, used to be one of them. He has seven siblings and had to earn money for his family after his father died. Kombu could not afford to study medicine and had to drop out of college. He began to work as a taxi driver in Luanda. However, the high cost of living prevented him from saving much money. The oil boom
ensure that an increasing share of the economic value created in the country generates jobs so that more Angolans can benefit from the nations oil and gas boom. Mobilizing Local Resources. Sonangol, a state-owned oil and gas company, pays particularly close attention to local value creation when it is calling for bids for the construction and maintenance of new drilling facilities, such as floating production, storage, and offloading units (FPSO). These are ships that take in oil and gas from different boreholes and then process them for transportation to a refinery. The Paz Flor FPSO stationed off the coast of Angola has employed Angolans for jobs such as welding and paint work during construction of drilling rigs. But thats not all. In addition, the
Growth in sub-Saharan Africa has averaged around five percent per year over the last three years. It is expected to reach 8.2 percent in Angola in 2013.
ted to ethics and compliance is also important to us. We wont do business with companies that dont have a clean record. Angola is widely considered one of the most corrupt countries in the world, having been listed 157th out of 174 nations in the 2012 Transparency International rankings. However, these rankings are based on the perceived level of corruption, because corruption by nature is not something that can be measured precisely. International experts such as Sofie Geerts from the Ethics Institute of South Africa are optimistic. Were continually seeing progress, says Geerts. Companies understand that if they want to partner with major players from abroad, they need to have ethical business practices. The Ethics Institute of South Africa has joined forces with Angolan companies to
wrote, The year 2013 will mark a turning point for Africa south of the Sahara. Often viewed as frontier markets, sub-Saharan economies are gradually advancing towards the top ranks of emerging economies. There has never been more hope than there is today that Africa will succeed, and there is also a great hope that as many Africans as possible will benefit from this development. To make this happen, Angola needs to train its people better. More and more professional academies are therefore now being established in order to ensure that workers gain knowledge more quickly in the future and pass it on to their compatriots. One such academy is Centro Integrado do Formao Tecnolgica (Cinfotec), which is located near the Siemens office in Luanda and has run programs with the company.
In Soyo (left), 300 kilometers north of the capital, Luanda, a gas-fired power plant
Armando Antnio Kombu (center), used to drive a taxi. Now he is a Siemens employee at
posits are located under the ocean floor. Siemens recently completed the first small power plant that runs on natural gas extracted from such deposits. The plants output of 24 megawatts (MW) should soon cover Soyos rather modest needs, says Jos Figueiredo. Its 30,000 inhabitants hope that they will soon be able to retire some of their rattling, smelly, and expensive diesel generators once the new power plant goes on line. Theoretically, it will be able to produce more electricity than 20,000 generators. Figueiredo, 43, has been working for Siemens for only a few months. In early 2013 he moved from his house on Portugals Atlantic coast to a room on the shores of the same ocean in Angola. At that time, I wanted to switch careers, he says. The job with Siemens was the most exciting of all of the offers I received. It was clear from the start that I would be working not in Portugal but in Angola. Many other Portuguese besides Figueiredo are moving to the former colony. Theyre going where the jobs are, to places like Soyo.
from Siemens (center) will supply electricity to a liquefied natural gas plant (right) and around 30,000 city residents.
of a maze of pipes that lead into huge gas storage tanks. The environmental conditions here in Soyo are extreme, says Figueiredo. Its hot and humid, and the saltwater mist in the air eats away at metal. Only top-quality products can withstand this mix; low-quality parts would rapidly corrode. By way of example, he points to a rusty beverage can lying on the beach. Great Opportunity. LNG facilities generally flare some components of the gas they process, namely impurities such as sulfide, which could cause damage when they are burned in gas turbines. At night the gas flares tall flame can be seen many kilometers away. The flare also illuminates the courtyard of Figueiredos new home. Its warm light gives the inhabitants of Soyo hope hope for jobs and prosperity.
has made Luanda an expensive place to live. In fact, it is considered the worlds secondmost expensive city, right behind Tokyo. Today Kombu stands proudly in front of Soyo Airports new terminal, which will be officially opened for passenger flights in late 2013. Cutting-edge technology has been installed in the halls behind the terminals black mirrored facade. Among other things, Siemens supplied and integrated the terminals power supply and its video surveillance, lighting, and fire alarm systems. I started out here as a laborer, but I was promoted after a few months, says Kombu. Now I do final checks, which means I have to make sure that all of the systems function properly. Siemens has given me a great opportunity, and a lot of my friends envy me for having this job. Im also proud that I was able to return to my home town of Soyo and contribute to Angolas economic development. Kombus words echo the sentiments of many young men and women of his generation. The Angolan government is working to
insulating materials and the materials used for its helicopter landing pad were made in Angola. Siemens supplied the motors that drive the pumps on the ocean floor, provided frequency converters, and handles their maintenance. The outstanding performance of the shipbuilding project was honored with an international award in 2013. Raul Madaleno helped plan the Paz Flor. Madaleno was trained as a mining engineer in Lisbon. His original plan was to go to the northern Angolan province of Lunda Sul to work for a diamond company. In the end, however, he became more interested in working in the oil and gas industry, and today hes an employee of Sonangol EP in Luanda. He would love to have an opportunity to work with Siemens again following the completion of the Paz Flor project. Siemens has been in Angola since the 1950s, so the company is a reliable partner for the long term, he says. Of course we like to work with partners who have a lot of international experience and can deliver what they promise. The fact that Siemens is clearly commit-
the new airport terminal in Soyo (left). Manuel Gara Primeiro (far left, standing) is also working hard to improve his income.
draw up a code known as the Principles of Ethical Business Angola. This project is partly funded by Siemens. We were pleasantly surprised to see how committed and active our partners were to the process of developing the principles, says Geerts. We believe that when it comes to corruption, Angola will soon improve its reputation. Accelerated Development. Investors used to view countries like Angola as frontier markets, meaning economies that grow rapidly but also harbor substantial political and economic risks. Frontier markets typically lag up to 20 years behind the established emerging markets. However, Nigerian Finance Minister Ngozi Okonjo-Iweala firmly believes that Africas development is now accelerating. In an article published in a supplement to The Economist, Okonjo-Iweala
In the basement of the Cinfotec campus, a dozen young men are gathered around a table piled with cables and electrical components. Today were going to assemble a transformer, says Manuel Gara Primeiro, a 36-year-old electrician. Primeiro makes good money at his job, so he can pay the US$560 for the training course out of his own pocket. Its definitely worth it to me, because now for the first time I completely understand all the components of a transformer and how they interact with one another, he adds. While Primeiro is working on the transformer, Jos Miranda is taking a final sip of his orange juice on the terrace of Espao Bahia. Its time for him to go. He is eager to get home, because he has to get up at 5 a.m. the following day in order to beat the morning rush hour on his way to work. At the moment, Angola is undergoing an extraordinary phase in its economic development, he says. In 50 years, I would like to be able to look back and tell my grandchildren that I was part of its development. Andreas Kleinschmidt
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Highlights
17 The City Next Door Aspern a planned city near Vienna, Austria will be a worldclass living laboratory in which the energy interactions among buildings and power supply systems will be studied and optimized to identify synergistic advantages. Harmonizing Supply & Demand In the context of the EUs Future internet for Smart Energy project, Siemens engineers are sketching out a data network that will support the energy transition and make building a smart grid easier. The Promise of Integrated Grids Siemens researchers are developing the smart grids of the future. The idea is to combine all energy systems in such a way that suppliers, consumers, and building systems are integrated. Building in Virtual Space A desalination plant on thedrought-prone island of Majorca is a model in its field. Siemens engineers developed and tested the plant in the virtual world. A 3-D Window into the Body Thanks to a new technology that automatically integrates real-time ultrasound images with previouslyacquired 3-D CT images, doctors can see into the body as never before, thus performing needle biopsies and ablations.
Integrated Systems | Scenario 2062
Utopia on a Chip
A virtual city brings ancient models of urban life into the future and becomes a center of learning for students who want to create the perfect urban environment.
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2062
To commemorate the 2,500th anniversary of the
construction of the Acropolis, governments have commissioned the planning and testing of a future city in the virtual world a city based on the human dimensions and classic architecture of ancient Athens. Long before the city is built in the physical world, future residents use deep immersion systems to visit it including students from a massive open online course who intend to test an energy-saving hypothesis.
Its really starting to take shape, I said to Solon as we looked across the vast agora. Solon and I my names Ligeia are the projects Chief Integrated Systems Architects. But hundreds of others, including historians, sociologists and all sorts of technology specialists from around the world, are also involved. Weve been meeting in a network of powerful deep immersion virtual reality labs for months. The labs provide such an intense
feeling of reality that some of us, Solon and I included, have started projecting ourselves in period clothing. Most of us have not physically met, but we were all recruited by the Greek and European Union governments to conceptualize, create and optimize a virtual city based on the democratic principles, human dimensions, and architectural style of ancient Athens. Designed to commemorate the
2,500th anniversary of the construction of the Acropolis back in 438 BC, the new city will be called Aristopolis Of course, for now, Im just talking about the virtual version of the city. But it is a construction-ready, fully-functional version, complete with energy- and resource-optimized-and-integrated infrastructures from water and power to ubiquitous virtual-presence communications, and from under-
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Systems Integration | Scenario 2062
Integrated Systems | Trends
The integration of hardware and software, and thus of the real and virtual worlds, is generally referred to as systems integration.
ground-hydroponic gardening to networked transportation and predictive health care in short, at the moment, its a city on a chip. A striking site high above the Aegean Sea for the citys physical counterpart has been set aside and its basic below-ground infrastructures, including a subway line and pipes to an underwater desalination plant, have been installed. But before ground-level construction begins, contractors have been encouraged to build their buildings and infrastructures in the virtual world where they can be tested, analyzed, and optimized. Around 7,000 virtual residential units have already been realized. Before signing a rental or sales agreement, future residents can use their own deep immersion units to explore the city on foot or on an electric rider, get a feel for the sights and sounds of their prospective neighborhood, meet local butchers and bakers, and re-acquaint themselves with the lost art of face-to-face contact. Thanks to its virtually limitless potential as a laboratory for urban studies, Aristopolis is already being used as a test bed for a range of MOOCs massive open online courses. For instance, just this morning, a class that includes students from around the world submitted an algorithm for testing. Using their schools deep immersion systems, two boys, one from Dubai, the other from Baku, Azerbaijan, joined us virtually, of course. Lets take a look at what theyre up to, I said to Solon, pulling a pencil-thin Scroll Viewer from my wrist holster. The boys, whose faces appeared on the viewer following a split second security check, explained that their algorithm was designed to predict the amount of energy a city can save in heating and cooling costs if it invests in a material that allows its pavements to alter their color and thus their thermal absorption based on ambient temperatures and seasonal conditions. Weve examined the leading products and built a database, said one of the boys, who identified himself as Faruq. We want to test our top choice on location. Sounds like an excellent idea, I said. But is the product rugged enough to withstand decades of wear? We do not foresee a problem, answered the young man with self assurance. We have identified a product that consists of a transparent carbon nanotubebased microencapsulated polymer solvent. It radically changes its color based on temperature, is impervious to degradation, and can be sprayed onto most surfaces by standard automated street maintenance equipment. Is it expensive? I asked. That depends on how much energy it saves, answered the
other student, Wahib, without missing a beat. With your permission, we will download our algorithm into the citys Intelligence Platform to initiate the experiment. They certainly came well prepared, I said to Solon as I pulled up our 3-D Virtual City Control Center (VC3) on my Scroll-Viewer. The center is a cockpit for the citys infrastructures. I touched the panel marked Streets, then dragged and dropped an icon for the boys algorithm over it. Simulating the accelerated passage of days and months, the streets in the viewer image began darkening and brightening in rapid succession as did the surface of the agora around us, reminding us that, after all, we too were in the virtual world. The algorithm assumes coverage by the polymer solvent of all paved surfaces that are exposed to direct sunlight for at least 10 percent of the year, explained Wahib. It determines this by measuring the angle of the sun for each square meter of surface over a year, while taking the shadows cast by nearby buildings into account. It then calculates the difference in temperature over time between the current static surface and the dynamic one being tested and translates this into radiated energy and an estimate of the amount of energy saved per dwelling to maintain a comfortable temperature. Does your program take lighting into account? asked Solon. After all, on a dark winter night you would not want to have dark paving material. That would require more energy for lighting. That is a subject we would like to examine in collaboration with polymer-solvent manufacturers, interjected Faruq. It may be possible to include a photochromic layer in the sprayed material. The pavement would then work like sunglasses that become transparent as the level of light decreases, thus returning the material to its original white complexion at night. And there is an additional advantage, said Wahib; since streets and sidewalks are contiguous, the carbon nanotube material, which is conductive, forms a virtual information network covering the entire city. Once connected with your VC3 as it already is and after a brief learning phase, the system would be able to identify patterns of movement throughout the city in real time as well as over seasons. If you think about it, he added, it could add up to a new kind of votewith-your-feet democracy in which businesses and city departments would have the information to provide services based on where people really are the modern equivalent of the ancient agora. Arthur F. Pease
Making
We cant see it, but its happening all around us. Like a proliferating meshwork of invisible fibers, high-speed computing and communications are making it possible for systems of all sorts to talk with one another, share information, distribute work, and optimize a spectrum of collective functions. This phenomenon, which, in its most fundamental form, integrates software with hardware, and thus the virtual world with the real world, is generally referred to as systems integration, says Thomas Hahn, Chief Expert
Sense of Complexity
Systems integration has many faces the increasing convergence of hardware and software, the integration of energy generation systems with smart buildings and grids, and the fusion of medical images from different modalities. Ultimately, what all have in common is a quest for an understandable way of representing an increasingly complex world.
for Software at Siemens Corporate Technology (CT). Most software experts would agree that one of the major trends in systems integration is that, in order to accelerate processes and reduce the potential for error, it is increasingly taking place in the virtual world, says Dr. Ulrich Lwen, Senior Principal Key Expert Engineer at Siemens CT and a pioneer in the field of systems engineering. In addition, he says, this process is being driven by the need to simplify and facilitate implementation in the real world. And, ironically, by the fact that as our systems everything from sensor networks to cities become increasingly complex, our ability to efficiently understand and manage them depends on how successful we are at representing them in simple and unambiguous ways. As the birth of manmade objects migrates from the real to the virtual world, software architects have migrated from the old errorprone paradigm of programming to the sleek new world of model-driven development that is, the use of conceptual models of applications rather than computing concepts. For example, explains Dr. Lothar Borrmann, head of Software Architecture Development at Corporate Technology, if you work in automation, you program in terms of the automation domain and not in terms of computer systems. You have a graphical description of your system and then you have a more complex piece of software that automatically translates this model into executable software.
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Integrated Systems | Trends
Integrated Systems | Urban Energy Efficiency
The Aspen project has been designed to test technologies that could make future cities extremely energy efficient.
Thirst for Software. Few places on earth stand to benefit more from model-driven software than the Mediterranean island of Majorca. There, the Alcudia reverse osmosis desalination plant (see page 32), which was largely developed using Siemens software, now produces some 14,000 cubic meters of fresh water per day. The plant is not only an example of state-of-the-art desalination technology, but is also a case study for the design and testing of a highly complex facility in the model-driven virtual world. The ease of programming offered by model-driven development is also the driving force behind Siemens Totally Integrated Automation Portal, which offers an intuitive, building-block approach to design that makes the integration of hardware and software almost effortless. The Portal has made it possible for engineers to rapidly develop mini robots for use in dangerous environments (see page 30). Systems integration is also a driving force in the field of regenerative energy. For instance, a European Union program coordinated by Siemens is investigating how wind, solar, biomass and cogeneration plants can trade information in real time over the Internet to maximize the level of regenerative energy on the grid (see page 22). The program not only envisions the integration of energy generation systems with communication systems, but also the integration of the Internet of Things (meter boxes, transformers, etc.) with an evolving internet of services such as real-time pricing information for customers. Living Lab City. Just as entire electrical grids are in need of new technologies that can efficiently balance fluctuating energy from renewable sources with power from conventional sources, so too are an increasing number of small communities that rely on renewables for much of their energy. Such communities are looking to smart grid solutions that can reliably and safely switch back and forth between energy sources not only as they fluctuate, but also in response to fluctuating demand. With this trend in mind, researchers at Siemens Development Center for Decentralized Poly-Generation in Erlangen, Germany (see page 24) are investigating how to manage information ecosystems that optimize energy generation, storage and use. Aspern, a new planned city on the outskirts of Vienna, Austria, is taking this concept one big step further (see page 17). There, a joint venture between the City of Vienna, the citys utility company (Wien Energie), and Siemens, calls for the city to be
turned into a living lab to study the integration of technologies that support energy efficiency and sustainable urban development. So novel is the study of real-time information generated by armies of sensors in buildings that the project calls for the development of specialized algorithms capable of making sense of the data. The resulting information is expected to generate dividends in terms of energy, environmental, and related technological know-how that will hopefully benefit cities around the world, says Siemens Dr. Gerald Murauer, who heads the Aspern joint venture. Naturally, systems integration is not limited to the world of factories, buildings, grids, and infrastructures. It also has a major role to play in healthcare. Take eSieFusion imaging, for instance (see page 37). This new technology from Siemens creates a virtual 3-D window through the body by integrating the information from two completely different sources: the patients imported 3-D CT scan and his or her real-time ultrasound images. Systems integration is even bridging the gap between the worlds of medical and industrial technology (see page 40). Working in collaboration with major orthopedic implant manufacturers, Siemens researchers and engineers have developed a process called Image-to-Implant that will allow computed tomography and magnetic resonance scans to be automatically translated into personalized prosthetic devices for knees, hips, shoulders, or other joints. Hospitals, doctors and patients also stand to benefit from systems integration, which is the driving force behind the adoption of the electronic health record (see page 41). As more and more elements of our physical world are born in the virtual world, immense quantities of data are generated (see page 35), digested, and transformed into actionable information a process that is as much pushed by our need to reduce energy and resource demand as it is pulled by accelerating computing and simulation power. Although our instinct may be to welcome our increasingly integrated universe as it promises ever more efficiency, a note of caution should be kept in mind. As Prof. Carlo Ratti of MIT mentions (see page 20), There are many open issues: Who has access to the information we generate? How is it archived? And what happens in a world where nothing can be forgotten? These are issues we should all be aware of, and we should vigorously debate publicly, as they will shape tomorrows society. Arthur F. Pease
The City Next Door

Vienna is planning to build a city where the buildings and the power supply are so interconnected that synergistic effects are created. The vision: A world-class living laboratory, where the energy-saving technologies needed for the city of tomorrow can be optimized.
At first glance, an abandoned airfield on the northeastern outskirts of Vienna, Austria may seem like a strange place to build a laboratory. But then again, this lab is going to need a lot of elbow room enough, in fact, for about 20,000 people. Thats because the lab will be a city perhaps the first ever to be built so that scientists and urban planners can learn how buildings, renewable energy sources, local electrical distribution networks, and the entire grid can optimize their interactions in order to maximize their efficiency and minimize their collective energy use. (Another major urban infrastructure project Siemens is involved in is Tianjin, China, see Pictures of the Future, Spring, 2012, p. 90.)
Actionable Energy Information for Cities

Real World Research
Asperns electrical infrastructure is the subject of intense research. Real-time, real world laboratories include a multi-use building, an apartment house, and an educational campus. Buildings and decentralized renewable generation
Source: Wien Energie / Siemens
Municipal Data Center
User
PC/Notebook Tablet PC Smart phone
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The citys control center networks the elements of this complex system: power generation, distribution, storage, and use.
The whole system becomes more intelligent thanks to optimal networking with users.
Smart meters, smart grids
Output
The results of the research form the basis of new intelligent market models. Energy efficiency, the reduction of CO2 levels, and user-friendliness are key subjects of analysis. Products Apps Business models
Low-voltage grids
Aspern could be important for cities all over the world because, if the battle to contain climate change is to be won, it will be fought in cities, which is where 75 percent of the worlds energy is consumed and 85 percent of its greenhouse gases are produced. Known as Aspern Viennas Urban Lakeside, the 240-hectare lab site is one of Europes biggest development projects. Although there is little more there today than a subway station and one finished building, by early 2015 there are expected to be 3420 apartments, part of a school campus, and dormitories. And by 2028 Aspern is scheduled to have around 8,500 apartments, 20,000 jobs, a commercial campus, and a research center all within a 25-minute subway ride from downtown Vienna. Aspern is not just another big real estate development project. What will set it apart from dozens of other major projects around the world is a recently-signed five-year, 40 million (estimated) joint venture (JV) between the City of Vienna, the citys utility company (Wien Energie), and Siemens the only industrial partner involved in the project. Indeed, a coordinated research plan driven by Siemens Corporate Technology (CT), and the companys Smart Grids and Building Technologies divisions in Siemens Infrastructure and Cities Sector calls for the city to be turned into a living lab, according to Dr. Wolfgang Heuring, Head of CTs Research and Technology Center. Aspern, he says, provides a test bed for the integration of technologies that support energy efficiency and sustainable urban development. Learning how these technologies can be integrated in the field is extremely important for Siemens and for our research and development activities. It is also a top priority for the city of Vienna, which has made a major commitment to minimizing its environmental footprint while enhancing quality of life. We want to get a handle on what our future energy needs will be, says Marc H. Hall, member of the Executive Board of Wiener Stadtwerke Holding AG (Viennas municipal services corporation) in charge of energy, research, technology and innovation. This is all about intelligent energy management and smart home solutions and about how conventional solutions such as district heating can be combined with new, decentralized solutions. Already Number 1 on the UNs Livable Cities Index and heading the list of The Top 10 Smart Cities on the Planet, Vienna wants to learn how to further reduce its environmental footprint. But meeting that goal in a meaningful way calls for it to objectively de-
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Integrated Systems| Urban Energy EfficiencyAspern
termine its current level of energy efficiency, which is the first step on the road to measuring improvements over time. To do that, you must overcome the problem of data being distributed among silos, explains Dr. Bernd Wachmann, who heads CTs Sustainable Cities Technology Innovation Project. You have to collect different types of data from building automation systems, combine it with current and predicted weather information, and integrate it. Based on this dataset forecasting concept, optimization and decision support in real-time would be possible. When Buildings Speak. And thats exactly what Siemens is aiming for in Aspern. The company has assembled a three-part package that includes technologies for power management in smart buildings, solutions for the low voltage grid the electrical distribution system from transformers down to individual buildings and apartments and solutions for managing big data that include the establishment of a City Data Center. Unlike virtually any other large-scale urban development project, in Aspern all of the elements in these systems regardless of manufacturer must be able to share data That specification alone has set the stage for a procurement process that is as novel as Aspern itself. If you were to try to build a smart city by means of the old-fashioned tendering system you would never be able to integrate services. You would be forced to purchase cheap components that would, however, not be able to talk to each other, says Vesna Mikulovic, who is responsible for strategic coordination of Siemens Building Technologies pilot projects in Europe. What we are doing in Aspern is creating new rules for business that are based on the integration of services rather than on a siloed approach. In short, integration is the biggest challenge we face in major urban projects. But overcoming that challenge has a price at least in terms of initial capital outlays. Thats why the Aspern JV is covering the difference in cost between conventional and smart components as well as the installation of many renewable energy systems and why such systems will be installed in only a representative selection of Aspern buildings. In order to maximize what it can learn about energy use optimization, the JV will therefore support installation of different mixes of technologies ranging from photovoltaic panels and heat pumps to a variety of energy storage solutions. The integration and coordinated control of local energy use, generation, and storage elements will be imple-
Cities and Citizens: Benefitting from Systems Integration

How will cities and the lives of their inhabitants change as data from previously separate services is integrated? The answer is: slowly but profoundly. Consider a hypothetical 100-unit apartment building in Viennas Aspern community. Here, data from many sources will be integrated to minimize each apartments energy costs and CO2 emissions. Long before the sun and the thermometer sink on an icy winter afternoon, for instance, warmth stored in well water might be circulated through the building by a heat pump driven by electricity stored in banks of batteries. And those batteries would have been charged earlier in the day or week by the buildings rooftop photovoltaic system. Furthermore, this entire process would be coordinated by the buildings automation system based on temperature predictions, occupancy sensors, and historical data. Residential units in the building would participate in incentive programs a research subject at Siemens designed to minimize individual demand for energy in the context of the buildings collective demand. Over time, our hypothetical building would learn to minimize its collective energy demand as would dozens of other facilities and would share information with the low voltage grid. The resulting information is expected to generate dividends in terms of energyenvironmental- and related technological know-how that will hopefully benefit cities around the world, says Siemens Gerald Murauer, who heads the Aspern joint venture. Indeed, a key part of the new city and its very first building is the aspernIQ Technology Center, an Energy Plus facility designed to provide a home for young companies. We expect that the knowledge generated from Aspern will become a launching pad for a range of smart city businesses, adds Murauer.
mented by a power management system designed to minimize energy use while maximizing cost efficiency. Heating systems and other major energy users in such buildings, automation systems, and in some cases even appliances, will be outfitted with sensors to track their energy use and efficiency. Selected information with the express permission of building occupants in rental and purchase agreements such as a buildings load forecast, will be exchanged with energy utilities via standardized bilateral communication. In addition, Asperns entire low voltage grid will be new, giving the JV a unique opportunity to equip it with a network of sensors for real-time measurements of its behavior. Finally, all of the resulting data will flow into a City Data Center. All in all, says Dr. Monika Sturm, Senior Manager, Smart Cities, who will coordinate CTs Aspern projects, by analyzing the most efficient mixes of technologies and their influence on end-user behavior, we expect this advanced combination of IT infrastructures to help us understand the correlations among the underlying systems with regard to our optimization goals. Understanding those correlations will, however, pose significant challenges in terms of interpretation. We will need to learn what the information means, says Sturm, who points out that monitoring of the low voltage grid is basically a new area of research. As soon as the first buildings are occupied and their systems are running, we will start evaluating the data they generate in order to understand the relationships between variables and the factors affecting both the grid and the buildings. That, in turn, calls for the development of specialized algorithms capable of making sense of the new data. The resulting information will be particularly important because plans call for a high level of integration of renewable energy systems. We need to know how all these sources, working in different mixes, and under changing weather conditions will affect the grid and buildings, says Sturm. This line of research will take us in the direction of forecast optimization and even higher levels of energy efficiency. Local Energy Generation. Among the many unique features of Asperns living lab concept is that the cost efficiency of its electrical grid will not be based on a classic demand-response system. What we are aiming at is the production of as much local generation and use as possible, enabled through local energy storage, says Mikulovic, a specialist in smart building technologies. After that, as we see it, the next level is to interact with
Weather statistic during outage (+ -1 day)
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Cities with Brains Could Be the Next Thing

Scientists at Siemens Corporate Technology (CT) want to make cities run as smoothly as an electric motor. With a view to cutting energy use and carbon dioxide emissions, while improving quality of life, they are piloting a scalable, high-performance data integration system called a City Intelligence Platform. Capable of handling inputs from systems as varied as apartment buildings, power plants, and traffic, water, and lighting infrastructures, elements of the platform are now being tested in Milan, Italy and Timisoara, Romania, where they are being used to reduce water leakage and minimize power consumption by integrating data from the cities water distribution and power generation infrastructures (for more, see page 73). In addition, pilot projects designed to optimize transportation are now being launched in Berlin, Germany; Rovereto, Italy; and Tampere, Finland. Such projects are expected to generate huge amounts of data the building blocks of new knowledge. As data pours into a City Intelligence Platform, data analytics algorithms will be able to assess how systems throughout a city behave in real time, explains Bernd Wachmann, head of CTs Sustainable Cities technology and innovation project. But the long-term vision behind the Platform goes further. What we foresee is a kind of data ecosystem, says Christian Schwingenschlgl, the platforms project manager. It will be like a natural system in which everything will have a feedback loop so that the system ultimately an entire city regulates itself within its natural energy limits. A modular group of programs that can be adapted to the unique requirements of a specific city, the City Intelligence Platform gathers data from a variety of infrastructure domains, standardizes the formats, establishes relationships between their contents, and combines this content with other information, such as weather forecasts and historical data patterns. The result, according to Wachmann, is a clear, networked presentation that renders a citys processes understandable and opens the door to identifying options for saving resources and cutting costs. Arthur F. Pease
City Intelligence Platform
Comparison of meter values and tarif average and forecast values
Absolute errors of tarif average and forecast values to meter values
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Integrated Systems | Interview
Integrated Systems | Interview
the smart, low voltage grid. Once you reach that level, coordination between buildings and the grid will be much simpler. Mikulovic explains that in buildings equipped with energy-saving technologies from Asperns joint venture, a building management system will coordinate energy supply from photovoltaic or solar-thermal systems to the buildings heat pumps. To do this you need forecasting, generation, and storage management, she explains. All of this adds up to a huge data integration challenge on the building level as different mixes of energy generation options are analyzed. Aspern will be a very important proof point for Smart Grids, says Robert Simon, project manager of CTs Smart Grid Core Technology Initiative, who points out that todays buildings are already multi-modal sys-
tems as they couple electrical power, gas, and heating or cooling. Our Smart Grid approach starts with power grids integrates buildings and production plants into the grid and ultimately aims at growing the role of multi-modal energy systems in this picture. Aspern is therefore the ideal place to bring our new developments to the real world and anticipate new market requirements. I see a payoff, adds Siemens Gerald Murauer, head of the Aspern JV. It is knowledge. It is prototyping applications. It is a final proof of concept that the smart city really can work. And assuming the concept does work, then the Siemens technologies involved in it will benefit. These include building- and energyautomation technologies, smart grid technologies, and the ability to integrate all of the above. Arthur F. Pease
Living in an Open-Air Computer

The SENSEable City Lab, which is part of the Massachusetts Institute of Technology, is a research group that explores the real-time city by studying the increasing deployment of sensors and networked miniaturized electronics, as well as their relationship to the urban environment. The lab has become renowned because of its research on cities and its inventive designs. One of these is the Copenhagen Wheel, which made its debut at COP15 and has won numerous prizes, including the U.S. James Dyson Award and the Thomas Edison Award.
Kristian Kloeckl (36) leads the Real-Time City initiative at the MIT SENSEable City Lab in Boston and Singapore and teaches design at MIT and the University of Venice. An industrial designer, he studied in Austria, Italy, and the UK and has a PhD in Design Sciences. His projects have been exhibited at the MoMA (2008), the Venice architecture Biennale (2008), the Vienna MAK (2009), the Singapore Art Museum (2011), and the China Millennium Monument Museum of Digital Arts (2012).
tems to interact in real time. That can potentially make cities more responsive to the needs of their residents, which boils down to making them more human. Are bicycles being integrated into the urban data picture? Biderman: The younger generations in developed economies are moving away from car ownership in search of a different lifestyle. With this in mind, we have developed the Copenhagen Wheel a wheel that can be mounted on any bike to turn it into a smart electric hybrid. Theres a 250 W motor inside the wheel that kicks in when you press harder on the pedals. It captures your energy when you brake, storing it in the wheels battery. Using that same energy, we power a controller that processes data. The data goes from the wheel to the riders phone, which is used as a gateway between the wheel and the cloud. Users can plug multiple sensors into the wheel and make their data available for external applications. For example, an operator can run fleet management applications over this platform, and a biking community can measure environmental factors such as ambient carbon monoxide. Are cell phones, high-speed computing, and apps rewiring our cities? Biderman: Yes. And so are a growing variety of sensors, microprocessors, and wireless devices that become integrated with objects in our surroundings, from garbage cans to automobiles, buildings, and infrastructure. There is, in effect, a growing digital layer that is interconnected with our physical environment. If you flip this idea on its head, the city is becoming a kind of open-air computer. And if we can start to program that computer, our cities could become more sustainable and cater to our needs more effectively. The introduction of data flows and analytics can improve the coordination and management of systems in a top-down manner. New technologies can also improve the sometimes chaotic bottom-up processes of citizen initiatives by expanding ways that people can self-organize. That helps citizens to shape urban life on a broad scale. What is your vision of how information integration will change the way we live in cities in the future? Ratti: According to Google, every couple of days we produce as much data as all of the data that was produced from the beginning
of civilization until 2003. And when this data and knowledge are shared with citizens, they can make more informed choices. I think that our options for shaping cities will change radically in the next few years, just as they have over the last 15 or 20 years. But the fundamental trend I see in all of this is that information will allow us to do in modern cities what was once done in ancient cities. In the Middle Ages in Europe, citizens had a say as to how a new building would be built or how a square should look. There was a relationship between the civitas, or the idea of a community of citizens, and the urbs, meaning the physical city. This relationship shaped much of the last 2,000 years of urban history until cities just became too big. What we are seeing now is that our new technologies are allowing us to go back to the past and be more engaged as citizens. With a few modern pitfalls? Ratti: Yes, there are many open issues: who has access to the information we generate, how it is archived, how you differentiate between good and bad information, and what happens in a world where nothing can be forgotten, just to mention a few. These are issues we should all be aware of and vigorously debate publicly, as they will shape tomorrows society. Interview by Arthur F. Pease
Air Force Academy Brings Energy Costs Down to Earth

According to recent studies from the United States Energy Information Administration, global energy use is expected to jump over 50 percent by 2035. To proactively address this trend, Siemens Corporate Technology, in a strategic alliance with Boeing Energy, has proposed a solution that is expected to demonstrate 40 percent building energy savings and a 25 percent reduction of peak load using Siemens advanced building control and energy management technologies. Siemens and Boeing, together with the University of California at Berkeley and KEMA Services Inc., are working to coordinate the deployment of Siemens Intelligent Building Management System at the US Air Force Academy in Colorado. The system is designed to enable seamless integration of individually controlled buildings and building subsystems to achieve maximum aggregated energy savings. Siemens Intelligent Building Management System offers energy consumers and providers a more integrated solution compared with systems currently on the market, explains Dr. Yan Lu, a research group head in the Automation Control Technology Field at Corporate Technology in Princeton, New Jersey. Services that were once supplied by multiple vendors can now be consolidated into one streamlined system that can provide optimal, dynamic energy saving solutions for an entire campus. By integrating various subsystems and buildings into one overarching energy monitoring and control system, the Intelligent Building Management System can make energy management decisions for a building or a cluster of buildings in response to changes in internal and external environments. While most systems rely on static programming and settings, the Intelligent Building Management System utilizes innovative dynamic decisionmaking processes that facilitate more efficient energy use by adapting to changes in weather and occupancy. Additional savings can be
Assaf Biderman (36) is a technology inventor, author, and entrepreneur. He teaches at MIT, where he is the associate director of the SENSEable City Lab. Assaf holds multiple patents and has co-authored over 40 publications. His background in physics, design, and computing comes together in his work on the evolution of cities and digital technologies. His work has been featured worldwide in venues such as the Museum of Modern Art in New York and over 1,000 publications and media such as the BBC and the Discovery Channel. He founded Superpedestrian, a venture that develops lightweight networked vehicles in order to connect drivers, riders, and sensors with the urban environment in new ways.
Efficient Building Management Systems

Orchestrator
Energy price Weather Schedule Microgrid DRAS**

Holistic, market-oriented optimization
Generation Loads HVA* Light

* Heating, ventilation, air conditioning ** Demand Response Automation System
achieved by responding to dynamic energy pricing. Both deep energy efficiency and microgrid-level demand-response demos are now being tested. Arthur F. Pease
Cities are home to over 50 percent of the worlds population and account for 67 percent of energy use. How can the integration of data sources help make them more efficient and more human? Kloeckl: Many systems that serve urban environments generate huge amounts of data. In Singapore, for instance, where we set up a lab in 2010, one of our focus points is mobility. We have concluded agreements with the countrys transit authority, the airport, a taxi company, the environmental agency, the seaport, and the electricity provider in order to share anonymized, aggregated data and experiment with combinations of data streams. For instance, one project is studying data from 16,000 taxis and combining it with highly accurate climate condition data, especially with regard to rainfall. This combination of data is important because it rains often in Singapore, and often in small geographic pockets. Such data could help to dynamically balance taxi capacity with upcoming demand to ensure that enough taxis are available when and where they are needed. Here you need to know how many people are in an area where it is set to rain heavily, the historical patterns of movement in that area at that time of day, and how many taxis are already in the area. This data would be even more useful if it were combined with real-time bus data. We are also exploring how taxis can be used as proxies for all road transportation. This makes it possible to see how long it would take to get from any spot in the city to any other spot in real time. The data can facilitate intermodal optimization by allowing the databases of different sys-
Carlo Ratti (42) practices architecture and engineering in Italy and teaches at MIT, where he directs the SENSEable City Lab. He graduated from the Politecnico di Torino and the cole Nationale des Ponts et Chausses in Paris, and later earned his PhD at the University of Cambridge, UK. Carlo holds several patents and has co-authored over 250 publications. His work has been exhibited worldwide at venues such as the Venice Biennale and the Museum of Modern Art in New York. His Digital Water Pavilion at the 2008 World Expo was hailed by Time as one of the Best Inventions of the Year. Carlo is a member of the World Economic Forums Global Agenda Council for Urban Management.
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Integrated Systems | Electrical Grids
Siemens and its partners are studying how smart grids can be combined with Internet technologies.
sumed locally. But if supply exceeds demand, it can become a problem. Thats because conventional transformer stations cant transfer energy upstream. To prevent damage, generation must thus be throttled. Power suppliers are still almost blind locally; they dont know anything about the flow of power on the other side of individual stations, explains Eger. That has to change as soon as possible. An additional problem is that electrical grids have developed in different ways in different markets. In Germany, for example, electric meters have traditionally been located in cellars or hallways, but in other countries they are outside the house. Distribution substations are also located in different places. In the U.S., transformers are attached directly to utility poles; in Germany they are in small buildings. For the U.S., one obvious option is to set up wireless networks
things and the Internet of services are taking on tangible forms, says Eger. But not every solar panel needs a separate information highway just to send a few bytes to a utility company. Here it suffices to use narrow-band connections laid out with the power line itself, for instance (see Pictures of the Future, Fall 2012, p. 98). However, some components of the power grid, such as important substation transformers, require highly reliable connections. In this case, the devil is in the details. Such transformers are located in small huts. Theres hardly any room left for communications equipment, says Helbich. These buildings are usually very old, and no one foresaw the need for ductwork for data networks when they were built. Cellular networks are therefore an appealing option, since they have almost universal coverage in most countries and are cheaper than fiber optic cables.
work quality. This is more expensive but necessary. Because of the large number of components in the network, it is also expected that the recently introduced IPv6 will be used, since only this version can provide an adequate supply of addresses. In Asia, use of the old Internet protocol has already led to a shortage of addresses and thus to serious problems in everyday communications. Nonetheless, theory by itself cannot make substantive assertions about the real behavior of a complex network made up of parts in a constant state of interaction. The authors of the study therefore had their ideas tested in a practical setting by the FINSENY partners at the Institute for the Automation of Complex Power Systems at RWTH Aachen University. The institute has a simulator that can represent an electrical grid. It uses powerful hardware and software to react in real time just like the actual grid. For the FINSENY proj-
The Intelligent Electrical Grid of the Future

Internet of the future Smart energy
New Communications Infrastructure

Smart energy applications for the stabilization of networks, smart meters, and smart cities)
Harmonizing Supply and Demand

In the context of the EUs Future Internet for Smart Energy project, Siemens engineers are sketching out a data network that will support the energy transition and make building a smart grid easier.
Intelligent buildings Electronic power markets. Distribution networks Microgrids
General services of the Internet of the future Elements of the smart grid
Communications services for intelligent electrical grids
Smart gridspecific services
Electric cars
Until recently, whenever Acme Refrigerated Warehouses Ltd. switched on its industrial cooling systems, the local power company was thrilled. Refrigeration was usually performed at night. At that time, there were few buyers for energy and prices were low. The refrigeration units would start humming again during the daytime only if temperatures rose beyond a predefined threshold. Now, however, its the other way around. At night everything is shut off, even in midsummer, but the systems purr almost constantly during the daytime. What happened? Today they are powered by solar energy. But if the sky is cloudy, utility companies have to switch over to other energy sources from one moment to the next. To accomplish this, the intelligent power supply system the smart grid requires a completely new communications infrastructure.
Although this is a fictitious example, it outlines what the European Unions Future Internet for Smart Energy (FINSENY) project sees as the challenges facing smart grids. The project foresees the need for a close-knit network of relationships among participants in the power supply system, enhanced communications, and improved quality. FINSENY is the first project to consider the entire grid, from the high-voltage level with 220 to 380 kilovolts (kV) to the medium-voltage level of 10 to 30 kV and the low-voltage level of 230 to 400 V. Prior to the beginning of the transition to a sustainable energy supply in Germany, the three levels hardly communicated at all, explains Dr. Kolja Eger, a grid expert at Siemens Corporate Technology (CT). It wasnt necessary, he says, because the low-voltage level only played the role of a consumer.
Now, however, the energy transition has inverted these relationships due to the growing number of decentralized power generators, says Eger. As a result, power networks are now in a state of flux. But, he adds,field tests have shown that communication can avoid the need for much costly grid expansion, even if the proportion of renewable energies increases dramatically. (see Pictures of the Future, Spring 2012, p. 46). With this in mind, together with 35 partners from 12 countries, Eger has assembled and coordinated the details of the FINSENY project. In a conventional system, energy from high-voltage network flows to the levels below it. At the top are large power plants, and the segments below that simply transmit power onward. But today, power is also generated locally by consumers. That isnt a problem as long as the resulting energy is con-
modeled on domestic WLANs, since utility poles and transformers are erected with very short distances between them. In Germany, solutions of this kind are not feasible, because the distances are much greater. The FINSENY recommendations therefore vary by country and grid architecture. Since March 2013, engineers have been applying the results of the project to concrete situations, says Guido Helbich, head of the Smart Communication unit in the Smart Grid Division of Siemens Infrastructure and Cities Sector. Together with his team, Helbich has transferred the results of the study into a graphic. What the graphic illustrates is that the transition to a steadily-growing percentage of renewable energy is leading to an unprecedented convergence of the fields of power engineering and communications at Siemens. For the first time, the Internet of
Our study recommends powerful UMTS and LTE platforms or solutions using private wireless networks, says Helbich. But the quantities of data involved are not the only consideration. Tolerable signal delays in a cellular network fluctuate between a few hundred milliseconds and a whole second. If data in the power grid reaches its target too late, the result can put the power supply at risk. Information Highway for the Power Grid. As a rule, the more powerful and safety-critical a component is, the faster and more reliable its data connections must be. The communications provider must therefore guarantee line availabilities and the maximum permissible delay times. In view of this, the study calls for separate communications networks: separate lines or special contracts that guarantee sufficient bandwidth and net-
ect, the researchers chose Irelands power grid, which is considered to be a special challenge, since the wind energy fed into it is substantial in relation to the size of the grid. For the first time, using our electrical grid simulator, we were able to develop technical thresholds for the quality of communications networks, says Prof. Antonello Monti of RWTH Aachen University. On the graphic in Helbichs office, these results are reflected in data stream bit rates and in milliseconds of tolerable latency. The authors distinguish among three service classes: safety-critical, very important, and normally important. The first category comprises messages regarding the safety of man and machine; the second focuses on ensuring grid stability. The third deals with messages in normal operating states. This model represents everything, from smart meter to transformer. The objec-
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Systems Integration | Energy Optimization
The Siemens smart grids team led by Dr. Rolf Hellinger (left) and Sebastian Nielebock (top right) can build almost any type of smart grid.
Integrated System | Energy Optimization
tive is always the same: react quickly enough that the grid remains stable and safe despite load fluctuations. Readjustment in Half a Second. One of the simulations key finding was that the relative quantities of conventional and volatile forms of power significantly influence the outcome. The higher the share of renewable energies in the grid, the greater the demands on the communication networks, explains Monti. In the past, the tons of rotating mass in conventional power plants bridged sudden fluctuations in the grid. However, the number of such power plants is dwindling. Today much more readjustment is needed, and it always has to be done according to current demand and current supply. Were talking about latency times of half a second, says Monti. Otherwise, the fluctuation in the grid frequency would be too extreme. The EU is testing FINSENYs conclusions in pilot projects, and Siemens is participating in many of them. Whats lacking is not the technical knowledge but the political will to also apply these insights in a large market, says Eger. One prerequisite for this would be clear European standards to guarantee the interoperability of countless components and ensure that the communication network defined in FINSENY can be built up quickly. This would then clear the way for local power markets in which autonomous software modules, the software agents, would harmonize supply and demand. In addition, demand-response providers could supply load that can be switched off so that, for example, power hogs could be temporarily shut down without any harmful repercussions (see Pictures of the Future, Spring 2012, p. 46). And thats just the beginning, experts believe, if communications technologies brief innovation cycles are taken into account. Well achieve our energy-policy objectives for 2020, 2030 and 2050 only if we constantly use the best technologies, says Eger. The pace of development is very fast. In addition to shutting off its equipment for a few hours when necessary, the fictitious Acme Refrigerated Warehouses Ltd. could also use the huge rechargeable batteries of its forklifts and its newly acquired electric cars. These electrical storage media could serve as local buffers that would help keep the grid frequency stable. In a win-win situation, the power supplier would also pay for this assistance from the consumer and credit the companys account with a considerable amount of money. Bernd Schne
Siemens Development Engineer Sebastian Nielebock is looking through a long list of calculations on his laptop. These are the parameters for a photovoltaic inverter, he says. Were optimizing them in order to ensure that our small grid remains stable and operates optimally in all types of load scenarios. The small grid consists of a battery the size of a cabinet wall and control cabinets with inverters for connecting components to the grid. The components include energy storage devices and photovoltaic and wind power units. In other words, the setup represents a typical configuration for providing electricity to shopping malls, hospitals, and hotels even if there is no grid connection. Depending on the amount of sunlight available, the battery has to either temporarily store surplus power or feed it into the isolated grid when its needed. If demand increases substantially, a diesel generator springs into action. The sun isnt shining at the moment, and the diesel generator isnt operating either yet the grid is up and running. Thats because
fluctuating sources, intelligent control systems will be needed to ensure that distributed electricity suppliers interact perfectly. If they dont, blackouts that might cause major damage could occur. And thats what Nielebock wants to prevent. Right now hes simulating intense sunlight, which causes the photovoltaic units inverter to produce a lot of electricity. If this leads to surplus energy in the grid, the result will be an increase in voltage and frequency, Nielebock explains. Im adjusting the inverter parameters in a way that ensures they will contribute to grid stability instead of just blindly feeding in their maximum output. If a blackout nevertheless occurs, the distributed suppliers, such as the batteries and the photovoltaic units, must be able to get the grid up and running again. Thats not as easy as it sounds, because a so-called black start requires all components to be synchronized in such a way that they operate in phase to step up the grid voltage to a predefined value. Power must be
The aim is to combine diverse energy sources in such a way that power, heat, cooling, and drinking water can be provided in an efficient and green manner.
the grid isnt in a big city but instead at the Siemens Development Center for Decentralized Poly-Generation in Erlangen, Germany. This is where researchers from Siemens Corporate Technology (CT) test the smart grids of tomorrow under laboratory conditions. The labs experts can create virtually any type of smart grid in their 170-square-meter laboratory hall. In addition to the cabinets of batteries, a cogeneration unit, an emergency generator, a variable local grid transformer, various electrical loads, and dozens of inverters, the facility houses two refrigeration units and a drinking water purification system. Because scenarios differ, the labs 20 employees include thermodynamic and process automation experts who work alongside electrical engineers and computer scientists. The labs range of equipment enables the team to reproduce a variety of smart grids on a small scale. A diesel generator, for instance, can play the role of a cogeneration plant or a biomass reactor. The important thing is that the proportions of fluctuating and conventional energy sources correspond to those of the original models. Such smart grids will be the norm in just a few years. Thats because as grids take in more and more energy from supplied to loads equally by different sources. If internal controllers are set properly, the inverters can synchronize themselves using voltage and frequency data and thus ensure stable operations, Nielebock explains. Like a conductor synchronizing the instruments in an orchestra, the inverters establish order in a smart grid thus the alternating voltage from a diesel generator oscillates exactly in tune with the voltage from an inverter. Studies such as these offer a preview of the challenges grid operators will face as the transition to renewable and decentralized energy sources proceeds (see p. 6). Power suppliers will need to link countless photovoltaic facilities, wind turbines, and biomass reactors with conventional power plants and energy storage devices to create a stable grid. To determine how such a system would work in practice, Siemens examined a local grid serving the village of Wildpoldsried (population: 2,500) in the Allgu region of southern Germany from 2011 until the fall of 2013 (see Pictures of the Future, Spring 2012, p. 46). Nearly every house in the village has solar cells on its roof, and the resulting electricity production is supplemented by several cogeneration plants that are supplied with gas from
The Promise of Integrated Grids

Siemens researchers in Erlangen are developing the smart grids of the future. These grids will not only link all types of electricity consumers and suppliers but also integrate building system components. The idea is to combine all energy systems in such a way that they can supply electricity, heat, cooling, and potable water as efficiently as possible.
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Integrated Systems | Energy Optimization
Integrated Systems | Multimodal Energy Systems
Heat Data flow Energy flow
Toward Holistic Energy Management

Power generation used to be a simple matter. Power plants produced electricity and households and industry consumed it. Heat was generated with oil and gas, and air conditioners cooled rooms off. Power suppliers compensated for fluctuations in demand by starting up gas-fired plants or using pumped-storage electrical power stations, which meant there was never really any undesired fluctuation in electricity production itself. But things got more complicated once countries started using energy from renewable sources. For example, 15 years ago Germany had several hundred mediumsized and large power plants; but today it has 1.5 million energy producers in the form of solar cells on roofs, wind turbines, and biomass power plants. More and more households, buildings, and industrial facilities are thus becoming prosumers i.e. consumers who also produce energy. Electricity from renewable sources generally isnt produced when and where its needed. For example, wind turbines on the North Sea increasingly have to be shut down even when its windy because demand is too low. In other words, their energy potential is wasted. In order to prevent this, electricity has to be either stored or transported to where its needed at a given time. This is where multimodal energy systems come in, as they are able to combine different forms of energy into one system. Instead of being fed into the grid, electricity can be converted into thermal energy in the form of heat or cooling or into chemical energy in the form of hydrogen or methane. Energy in these forms can also be transported, stored, and utilized; this reduces costs and makes energy systems more flexible. This holistic view of energy opens up many opportunities. For example, wind power can easily be transported and stored if it is converted into hydrogen or methane. The use of existing gas grids and storage facilities also reduces investment costs. Electricity can be used to heat water that can then be sent through a district heating system. In hot regions, the opposite would make sense using electricity to power a central cold water or ice storage unit. The cold air could then be channeled into buildings, thereby reducing the use
of air conditioners, whose power demands at peak times can strain a grid. Such cold and heat storage units are often less expensive to produce than electricity storage devices. Another example involves seawater desalination in Singapore (see Pictures of the Future, Spring 2011, p. 30). Desalination facilities need electric pumps. To ensure a continual supply of drinking water even at maximum demand or despite electricity bottlenecks, either an electricity storage device can be used to keep facilities running at all times, or a certain amount of drinking water can be stored as a reserve. The latter option is less expensive, because its easier to store water than electricity. The chemical industry needs large amounts of electricity, gas, heat, and cooling. Electricity is also an important cost factor for the industry. Here, a decoupling of power generation and demand through the conversion of energy into heat, cooling, hydrogen, or other resources that are needed anyway and can be stored would reduce the severity of demand peaks while lowering operating costs. Energy efficiency experts at Siemens Corporate Technology (CT) therefore take a holistic view of energy systems in order to optimize the combination of conversion, storage, and transport solutions. They study ways of linking various components such as heat pumps, power plants, electrolysis units, water treatment plants, refrigerating units, resistance heating devices, and a range of associated storage devices in multimodal energy systems. Their goal is not simply to optimize each energy system in and of itself, but instead to use flexible energy conversion solutions and intelligently network different systems in order to reduce costs and improve the efficiency of energy systems (see pp. 22, 24). To this end, CT researchers are working to determine which conversion, storage, and transport systems make sense from a technical point of view. They are also examining possible business models for Siemens. The biggest obstacle to implementation thus far has been the lack of intelligent control systems. Researchers are therefore now considering equipping a compression refrigeration unit with an intelligent controller that will connect the machine to the grid and a cold storage device. Fenna Bleyl
Waste heat drives an evaporation and condensation process that produces potable water.
each consumer is represented by a Personal Energy Agent (PEA). The system software knows, for example, the minimum price the owner of a photovoltaic unit is willing to accept for electricity. The software then submits the quote to a Balance Master that represents the grid operator and decides whether or not to accept the PEAs quote. Prior to the test in the Allgu region, the researchers at the Development Center in Erlangen built their own grid in order to study the interaction between the battery, the photovoltaic units, and the variable local grid transformer. The researchers are now analyzing more complex smart grids. In the first stage, we linked only electricity consumers and producers, says Prof. Rolf Hellinger, Head of the
heads the Heat Conversion and Distributed Energy Systems research group. By contrast, we are working with grids that consist of many components. We are also studying the way these components interact with one another and the effect they have on overall stability. In other words, were interested in system integration and an optimal interplay between all of the components of the system. The researchers are particularly interested in exploiting, for example, the waste heat from machines and other industrial equipment (see Pictures of the Future, Spring 2012, p. 104). Today, waste heat in the lowtemperature range in particular is rarely used in an economically viable manner. However, this heat contains valuable energy that can
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Source: Siemens
biomass reactors. The village energy system is rounded out by five wind turbines. All in all, Wildpoldsried is now producing five times more electricity than it consumes. As good as this sounds, it amounts to a problem for local grid operator AW because the surplus energy makes its power lines unstable. AW therefore teamed up with Siemens, RWTH Aachen University, and Kempten University to launch IRENE (Integration of Regenerative Energy and Electric Mobility), a project designed to test large-scale smart grids. Some 200 measuring devices have been providing an overview of the grids operation ever since the project began, and a variable local grid transformer, a battery storage unit, and remote-controlled photovoltaic inverters ensure stability. The centerpiece of the system is SOEASY Siemens Self-Organizing Energy Automation System. SOEASY balances demand and supply. In this setup, each power supplier and
Energy Conversion Technology Field, to which the Development Center belongs. The next step is to integrate building system components, such as the compression refrigerating machines used in air conditioning units. This will increase the smart grids flexibility, because intelligently-controlled buildings can absorb surplus power when demand is low. Water from Heat. The Siemens researchers long-term goal is to combine diverse energy sources, such as oil, gas, wind, solar, biomass, and waste heat in a way that ensures they produce electricity, heat, cooling, and potable water in the most efficient and environmentally friendly manner possible. They also want to integrate these sources into a multimodal energy system (see box). In most cases, only the individual aspects of such systems were examined until now for example, approaches for feeding in energy from renewable sources, says Dr. Jochen Schfer, who
be used to recycle waste water into drinking water, for example. With this in mind, Siemens researchers in Erlangen have developed the EvaCon (Evaporation and Condensation) system, which uses waste heat within the temperature range of 70 to 120 degrees Celsius to vaporize wastewater. The resulting steam is channeled into a condenser, where it precipitates in a process that produces pure water and some concentrated wastewater. This wastewater is then disposed of. The EvaCon prototype at the Development Center is 5.5 meters high. Wastewater flows in from the top right side through insulated pipes. It then passes through several heat exchangers, where waste heat is used to raise the waters temperature. After that, the wastewater trickles through an evaporator and evaporates. A fan generates an air current that carries the vaporized water upward. The vapor condenses again on the right side, where the condenser is located. This may sound simple, but the details are complicated. We want to use a minimal amount of electrical energy to transport as much water vapor as possible, says Dr. Manfred Baldauf, Head of the Environmental Technologies research group. To do this, we need to precisely regulate the temperature distribution and the air volume. The next step could be to build a pilot facility that would purify 25 cubic meters of water per hour. That would be sufficient to treat the wastewater from bottling processes in the beverage industry. However, EvaCon can also be used to purify the wastewater generated by brewery processes and oil drilling operations. In some cases, however, there is no costeffective way of exploiting low-temperature waste heat. With this in mind, the researchers have built a heat pump that can raise temperatures to a maximum of 140 degrees Celsius as opposed to the previous limit of 90 degrees. The heat pumps mechanics are basically the same, but we use a special process fluid for the heat cycle, Schfer explains. This fluid can be used at higher temperatures, and its also environmentally compatible and completely safe. The new heat pump would, for example, make it possible to boost the temperature of industrial waste heat or heat from geothermal sources from between 70 and 90 to 130 degrees Celsius the norm in district heating systems. The heat could be used ito warm buildings. In combination with EvaCon and other equipment at the Development Center, the new heat pumps will help researchers move closer to realizing their dream of ensuring that no energy source is wasted. Christian Buck
The Elements of an Advanced Energy Ecosystem

Heat collection
Smart infrastructure
Coolant/storage
Heat pump
Water treatment
Intelligent factories and buildings
Intelligent energy agents Gateway Smart meters
Smart grid
Electricity Water Gas
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Integrated Systems | Wind Heating
Under-floor storage heating systems can store surplus energy generated by wind and solar sources day or night.
Integrated Systems | Wind Heating
Eco Energy Takes the Floor

How can surplus electricity from wind and solar energy systems be utilized? Siemens and RWE have come up with a solution: wind heating systems. The idea is to make the previously rigid charging model of residential night storage heaters more flexible so that such systems can soak up excess eco-electricity. Two test projects in Germany demonstrate that the system works in practice.
Flashes of insight can illuminate the world, but they cant heat up a furnace, said the German lyrical poet Christian Friedrich Hebbel back in 1842. But what he couldnt know was that flashes of insight would, some 170 years later, allow furnaces to be heated up with surplus electricity from wind and solar energy systems. To be more precise, such furnaces consist of night storage heaters. Storage heaters were developed in the 1950s as an alternative to coal and oil furnaces. They funtion according to a very simple principle: turning electricity into heat. Although they were originally used to merely heat water, their most modern incarnations store heat in an insulated magnesite core. To save costs, the heater consumes electricity during low load phases, which occur primarily at night. On average, a heater charges itself for about eight hours at night and for around two hours during the day, explains Jrg Rummeni, project manager of the Wind Heating project created by energy supplier RWE. The heating elements are encased in the magnesite core, in which electricity is converted into heat and stored. Temperatures here can rise up to 600 degrees Celsius. Storage heaters release the energy again during the day. The temperature on the heaters
surface then rises to as high as 40 degrees Celsius. The heaters built-in fan continuously blows heat out of the core as needed. For a long time, storage heaters didnt have a very good reputation. Some people mistakenly considered them to be power hogs. Thats because the heaters are sometimes too big, have inaccurate settings, or are obsolete. In such cases, its not surprising that they consume a lot of energy when used in badly insulated houses. However, state-of-the-art systems can bring all of the heaters advantages to bear if they are well adapted to the buildings theyre used in. Such systems are inexpensive to purchase, easy to install, and need very little maintenance. The heaters ability to store electricity as heat is now providing another big benefit as well. Flexible Charging Model. For the past two and a half years, Siemens and RWE have been researching how the storage capacity of such heaters can be used for electricity from renewable sources of energy. Their goal is to equip storage heaters with smart control technology and use them as energy storage units for the fluctuating amounts of electricity generated by wind power and photovoltaic systems. Rummeni is convinced that
this concept will pay off. Around 1.4 million German households currently use storage heaters, each of which has an installed load of 10 kilowatts on average. The heaters are potential storage units with a total rating of 14 gigawatts (GW) and an annual storage capacity of 14,000 gigawatt-hours (GWh) that makes them relevant for the entire energy industry, says Rummeni. By comparison, Germanys pumped-storage power stations have a combined storage capacity of 40 GWh and seven GW of output. In view of this, the two companies initiated the RWE Wind Heating project in March 2011. Together with tekmar Regelsysteme GmbH, they decided to conduct a test in a 20year-old residential area in Essens Stoppenberg neighborhood. The test area consists of 50 identical one, two, and three-family buildings populated by RWE customers. The project partners intentionally chose a homogeneous neighborhood where all the houses were equipped with under-floor heating systems instead of traditional furnaces or block storage units. Initially, only the under-floor heating model was to be tested to determine its storage capabilities. To allow the test areas storage heaters to consume electricity exclusively from renew-
able energy sources, the units had to be modified so that they could charge flexibly. At the beginning of the project, we wanted to know how the static charging model could be made more flexible, says Rummeni. To do this, tekmar replaced the old heater control units with smart new devices that use a wireless network to switch the charging process on and off. These charging controls ensure that electricity can be stored at any time of day, whenever the wind is blowing or the sun is shining. As a result, surplus electricity from renewable sources is no longer wasted. Siemens supplies the associated software. Known as a Decentralized Energy Management System (DEMS), the software was developed in 2002 (Pictures of the Future, Fall 2012, p. 68). It predicts and optimizes the use of storage heaters while taking the conditions of the energy market into account, explains Thomas Werner, Product Manager for Virtual Power Plants at Siemens. The tool decides how much electricity from renewable sources can be stored and when. It does so by incorporating information from weather forecasts as well as current electricity prices and the energy needs of each household. On the basis of this data, DEMS regulates the input of wind and solar power into the heaters unused storage capacity. Each of the 50 households is regulated individually. The charging process is interrupted as soon as the storage heaters are full. Win-Win. In the fall of 2012, the inhabitants of the 50 test households were satisfied with the results. The new storage heaters ensured that temperatures in the apartments were much more stable than in the past, says Rummeni. Previously, houses equipped with storage heaters were quite warm in the mornings because the heaters had stored heat during the night. However, temperatures were low in the evenings because the heaters were unable to store much heat during the day. The flexible charging model has substantially reduced these temperature fluctuations, says Rummeni. In the fall of 2012, the projects good results encouraged Siemens and RWE to test 30 buildings in Meckenheim, Germany. Unlike Essen, the Meckenheim project focused on traditional furnace technology, along with a sprinkling of block storage units. Some 80 heaters are involved with a combined virtual storage output of one megawatt. Initial tests have been very promising. Meckenheim demonstrates that the wind heating system also works with other types of night storage heaters, says Rummeni.
The results indicate that the idea works, technically. The next step is to determine if the new storage concept can measurably reduce energy consumption. Rummeni thinks that a more uniform temperature distribution in apartments should make heating more energy-efficient compared to a fluctuating heat supply. But the price must also be acceptable to the customers, Rummeni cautions. One advantage of the new concept is that it requires only the controller to be replaced and not the entire heating system. However, its also clear that consumers will switch to a flexible heating control system only if operating costs decline. But laws would have to be changed for that to happen, says Rummeni. One possibility would be to offer tax breaks to encourage consumers to switch to flexible storage heaters. Wind heating systems offer many advantages. As with storage heaters, customers con-
sume electricity when it is inexpensive. Moreover, even temperatures are more comfortable. Storage heaters use surplus energy that has been generated in an environmentally friendly manner, thus enabling it to indirectly reduce CO2 emissions. In addition, the improved balance between electricity production and consumption helps stabilize the grid and reduces the load it has to carry. These benefits create a win-win situation for energy suppliers, customers, and the environment. If the RWE wind heating system for private consumers proves to be profitable, RWE plans to offer the smart control concept to a broader customer base. But first, the smart control system would have to reduce the price of electricity to less than 20 euro cents per kilowatt-hour. If that comes about, wind and solar energy will serve as flashes of insight for innumerable furnaces. Ulrich Kreutzer
Decentralized Energy Management Systems: Setting the Stage for Virtual Power Plants
Interconnected external processes
Weather forecast Energy market Billing Contract management Network operation
Modeling Forecasting Planning Real-time optimization
DEMS
(Decentralized Energy Management System)
Effectiveness
Current Optimization
Loads and power production
Wind/solar
CHP/diesel emergency power
Biomass
Storage
Industry
Commerce
Energy Management 3.0

Siemens developed the Decentralized Energy Management System (DEMS) more than ten years ago and has continuously updated and expanded it ever since. In October 2013 Siemens will launch DEMS 3.0 on the market with a powerful new tool: the DEMS Designer. The new tool makes it even easier for users to create and operate virtual power plants. To do this, the user will feed information about weather forecasts, electricity markets, wind turbines, solar cells, storage systems and negative energies (loads) into DEMS. Using this data, the software will draw up a concrete energy schedule, stipulating which power plants should feed electricity into the grid and when. DEMS Designer augments this feature with an automatic map that displays current energy needs. The systems simple user interface reduces the time needed to train new customers in its operation by 60 percent.
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Integrated Systems | Smart Controls
Mathias Hubrich used Siemens software to equip his Forbot A4 with artificial intelligence.
Integrated Systems | Smart Controls
The adage about not judging a book by its cover couldnt be more appropriate in the southern Bavarian town of Chieming-Hart. The village, with its 4715 inhabitants has a church, a pub, rows of neat houses, and a small warehouse with a loading ramp and offices housed in a former bank building. But this is neither a warehouse, nor a bank, nor anything else one would expect in this picturesque retreat. For this place, in its breathtaking unobtrusiveness, is a robot factory. Outside the building, on a quiet street where cars are rarely seen, Mathias Hubrich, the founder of robot production firm Roboterwerk GmbH, is hard at work on a summer morning at a makeshift desk. Hes working here undisturbed at his Mac. The village is home to Hubrich and his companys two engineers, Arno Klglein and Manuel Wentenschuh, who are inside the building, tightening screws and soldering components. Many
Learning from Robots

In a Bavarian village, Mathias Hubrich is building remotely controlled robots designed to perform tasks too dangerous for human beings. Robots are now also being used as teaching aids because their Siemens control systems make them ideal for learning about automation technology.
people are moving from Munich to the country, says Hubrich, who is delighted that the area has no shortage of skilled workers. He picks up his iPhone and swipes his thumb across the display. A six-wheeled vehicle immediately begins to move. It looks a bit like an early Mars rover, but lacks the space probes elaborate superstructure. It was in fact the Sojourner rover, which landed on Mars in 1997, that stimulated Hubrich to get into the business of building robots. Controlling robots is much easier on earth, of course. It takes signals about seven minutes to reach the Red Planet, but the small vehicle in front of the loading ramp responds instantly to every thumb swipe. The robot turns right and left, goes forward and backward, and rotates in place. Known as the Forbot A4 because it has the same dimensions as an A4 format sheet of paper, it instantly performs every command. The tiny vehicle can even climb a hill and has no problem traveling over tall grass.
Hubrichs first concept robots, Robopark and Roboplay, were developed during the dot.com craze, when he was the CEO of an Internet firm. The devices were targeted at video game players who wanted to control real robots through the Internet. Hubrich also planned to use the robots at company events. However, these plans did not materialize, as potential investors declined to get involved. Instead, the systems attracted the attention of the German military, for which Roboterwerk GmbH has regularly conducted projects since 2004. The Forbot A4 is the offspring of
these early concepts; other, larger robots are taking shape in the workshop. One of them has a mount for attaching a rotating brush and a vacuum cleaner nozzle. It is designed to remove dust and grease as it travels autonomously through factory ventilation shafts. Photos taken during a test demonstrate the systems effectiveness. The ventilation shaft used for the test was dusty and encrusted, but looked like new afterwards. In Hubrichs conference room is a pushcart equipped with an electric motor at the wheels and a joystick on the handle. We use
the cart to clean paddocks, says Hubrich. To operate the system, farmers simply walk next to the pushcart, driving it along and loading it with the horse manure. It reduces the time needed for this task by one third, says Hubrich. The part-time farming sector is expected to be one of Roboterwerks future markets. Despite the luscious meadows, many local farmers prefer to leave their cows in the sheds because it makes farming easier. Thats why the self-driving pushcarts from Chieming might also make cows happier.
Digital Brain. Developer Arno Klglein opens the lid of a Forbot A4. Under the WLAN antenna that links the robot to his iPhone are a sophisticated chain drive, two rechargeable battery packs, and a set of colorful wires. In the midst of it all is a small gray box bearing the Siemens logo. Most of the wires come together at this box, which is a programmable logic controller (PLC) that serves as the robots brain. It collects sensor signals, such as those emitted by an induction sensor, which enable the robot to follow an aluminum strip in factories, or by a laser scanner that searches the devices surroundings for obstacles. The other ends of the wires are connected to the motor. There are eight input wires and ten output wires. The PLC must be programmed to keep the robot on track. To do this, Manuel Wentenschuh starts Siemens TIA Portal (Totally Integrated Automation), a program that allows engineers to define the control systems behavior. Although the program has an optional window for entering cryptic programming code, most commands can be simply entered and tested with a computer mouse. The system isnt intended for lay people, but engineers only need a few hours of training before they can begin creating simple command sequences. Siemens first introduced TIA in 1996. In 2009 it added a convenient software environment, together with the new S7-1200 control system, which is also found in the A4 robot. The company merged three previously separate software modules under a uniform user interface, which it introduced as the Totally Integrated Automation Portal in 2010. The modules consist of a control configuration system, a user interface design feature that can now be operated by touch as well, and a drive parameterization function. The TIA Portal is a bit like Microsoft Office, says Marketing Manager Carsten Meier from Siemens Industrial Automation. Although programs like Word and Excel perform different tasks, they work together and are operated the same way. Moreover, the TIA Portal has a single user interface for all features; thats why its called a portal. It was completely new at the time, and its still unique. None of our competitors offers anything comparable, says Meier. The introduction of the S7-1200 and S7-1500 ensured that previous S7-series control systems remained useful. Siemens has always safeguarded its customers investments, so the TIA Portal also allows users to program older hardware. Mathias Hubrichs latest project is DRIEM2 (the German acronym for Complete reliabil-
ity for mobile manipulators). In cooperation with the Technical University of Munich and Ingolstadt University of Applied Science, Roboterwerk is now developing a semi-autonomous robot for the German Research Ministry. The robot will be used for safety applications such as measuring pollutants. Birgit Vogel-Heuser, a professor of Automation and Information Systems at the Technical University of Munich (TUM) has the robots predecessor in her office. The device features 1990s technology and is hard to operate. DRIEM2 is a big improvement, she says. The original robot was used as a minesweeper. It first brought Vogel-Heuser into contact with Hubrich, through whom she got to know the big robots and small A4 models from Chieming-Hart. Robots in the Classroom. There are two Forbot A4s in Vogel-Heusers conference room. One of them still lacks a superstructure, but the other one is equipped with sensors and actuators that keep it from colliding with obstacles or falling off a table. However, the device can do this only if its control system is correctly programmed. This will be done by students, starting in the winter semester of 201314. During internships, the students will have to train the robots to fulfill certain tasks, such as traveling along a wiggly line. Although that can also be done with Legos Mindstorms, these systems do not work with traditional control technology, says VogelHeuser. Our students learn how to solve problems with industrial technology. The students also learn how to program control systems from Siemens, the market leader. These systems are used not only in the TUMs training robots but also in over 80 percent of the machines the students will work with after they graduate. The systems are even used in beverage vending machines. The students use the TIA Portal from the start, since it has replaced older programming tools at most companies. Most students have no problems using the Portal, says Jens Folmer, a doctoral candidate in Vogel-Heusers department. He offers a course in the use of A4 robots in teaching. One difficulty, he says, is that programmable controls operate on the principle that real-time systems use clock cycles while sensors are queried at defined intervals. Many people are not used to this, as it contradicts the procedural programming approach used for many computer programs. But our students quickly get the hang of it. The robots allow them to learn in a playful way, he says. Bernd Mller
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Integrated Systems | Facility Planning
With a view to saving time and money while improving accuracy, Siemens is creating an entire desalination plant in the virtual world.
Integrated Systems | Facility Planning
ceives funding from the German Ministry of Education and Research. The aim of the project is to seamlessly integrate software modeling methods and tools with analytical techniques for the development of embedded software. Case Study. Siemens objective is to refine a method for planning desalination plants that enables coordinated virtual models of individual plant components to be edited on a common IT platform with a uniform set of software tools. We are employing this method for the Alcudia plant, explains Pirsing. This means that we are using a kind of shadow engineering approach to create a simulation of the entire plant and to conduct tests to determine how much time and money this method can save. Alcudia is especially well suited for use as a case study because our good relationship with the customer ensures that we not only have all of the data regarding the plants Siemens automation systems, but also the relevant planning data from other contract partners. When we have all the data, as we do here, we can plan an entire plant in a computer without too much difficulty, explains Dr. Ulrich Lwen from Siemens Corporate
Building in Virtual Space

Many drought-prone areas rely on seawater desalination for their water supply. One such place is Majorca, where a plant equipped with Siemens technology will now serve as a model facility. Siemens engineers developed the plant in the virtual world to test their innovative engineering techniques.
project such as Alcudia isnt planned and implemented in detail by a single person. Instead, the task involves numerous engineers from a wide variety of disciplines, says Lwen. Project participants include process engineers for handling physical and chemical processes and systems providers for installing high-pressure pumps and membrane modules, as well as pipe planners and electrical engineers for the automation technology and the power supply. At the moment, each participant uses his or her own tools for this task. Examples include the use of CAD tools for process design and pipe construction and of MS Excel for the lists of drives and instruments. These tools represent the system in completely different ways, including process flow diagrams, 2D or 3D models, circuit diagrams, and much more, explains Lwen. Incompatibilities between tools result in a great deal of wasted time and money. Thats because the planning data is processed by many different people, reformatted multiple times, entered into new tools, and translated into various languages. In the process, information is lost at the interfaces between tools, and planning data is sometimes misinterpreted by users. You also continuously
efficiently, models must be coordinated with one another. In addition, all of the tools need to speak a common language that is based on a centralized IT platform. Siemens is the only company that can supply a facility planning integration path of this kind a path that connects all of the different engineering tools that have been developed independently of one another, says Pirsing. In other words, Siemens is the only company that has all of the pieces of the puzzle for putting together the big picture such as the life cycle engineering and facility management system known as COMOS and the SIMATIC PCS 7 control system. Thats why we are the only company that can offer such an engineering method to the market. Transferable Methodology. Collectively, this kind of engineering, which encompasses the entire virtual planning, modeling, and simulation process for the Alcudia desalination plant on a new IT platform, is designed to demonstrate the methods efficiency and calculate how much time and money can be saved. Our project has reached the halfway mark. If we are successful, the results will not only affect the construction of desalination plants, says Pirsing. but will open up a newly developed IT landscape in which
Water is a valuable resource nearly everywhere on the Iberian Peninsula. And because Spain suffers from extreme droughts with alarming regularity, water is particularly valuable if it can be used for drinking. Empty reservoirs, rationed drinking water, and withered fields are now a common feature of life in Spain. On the other hand, the scarcity of fresh water has also given Spaniards expertise with regard to seawater desalination, because the country has plenty of saltwater along its coasts. Several years ago the Spanish government initiated a special development program in order to counteract the scarcity of freshwater, says Dr. Andreas Pirsing from Siemens Industry. As part of this program, around 30 new desalination plants were built along the Mediterranean coast. When it awarded the contracts, the government favored local companies so that it could build up a high level of local expertise. This expertise is now being successfully exported to the rest of the world. Experts expect the fresh water crisis to become much worse with significant impli-
cations for the desalination market. Whereas the market had a volume of $18.4 billion in 2012, Companies & Markets predicts that it will grow to more than $50 billion by 2020. Siemens is present in this market all over the world. In Singapore, Siemens engineers have won a state-organized Singapore Challenge competition for energy-saving desalination technologies (see Pictures of the Future, Spring 2011, p. 30). Siemens also participated in the Spanish governments development program, says Pirsing. Our Industry Sector equipped several plants with automation technology. One of these plants is in Alcudia on the island of Majorca. As a popular holiday resort, Majorca is especially dependent on desalinated seawater, because the island only has a thin aquifer of fresh water, which floats on brackish groundwater. This aquifer is incapable of supplying masses of tourists with sufficient amounts of drinking water. The plant in Alcudia produces freshwater by means of reverse osmosis. In this process, seawater is forced through semipermeable membranes that allow only water molecules
through but keep salt out. Using this process, the facility can produce up to 14,000 cubic meters of freshwater per day. Although the Alcudia desalination plant is only one of many such facilities in the Mediterranean region, it has become a focus of engineering research. It is being used as a case study for a completely new methodological approach that could totally revolutionize the world of engineering, says Pirsing. Together with companies such as Airbus, Bosch, and Daimler, as well as several universities and Fraunhofer institutes, Siemens is involved in the SPES_XT (Software Platform Embedded Systems XT) project, which re-
Technology (CT), who is responsible for the scientific foundation of the case study. A great deal of planning is already being conducted in the virtual world. This is referred to as model-based systems integration, which means that many plant components are planned, assembled, and tested as computergenerated virtual representations or models of reality before they are installed in the real world. In the Alcudia case study, we have already simulated the entire process of pumping seawater in the individual wells as well as parts of the reverse osmosis process. According to Lwen, the simulations have revealed considerable savings potential. A
risk undermining the consistency of the different planning models whenever anything is suddenly changed. For example, lets assume that an engineer who is responsible for the pipes innumerable fill level sensors and differential sensing devices suddenly notices that he needs another fill level sensor. This sensor and its associated wires then have to be entered into the process engineering pipe, the instrument flow diagram, the automation technology location plan, the electrical plan, and the pipe plan, explains Lwen. In order to ensure that such corrections, which affect a wide range of the systems model representations, can in fact be made
recipes that address distinct challenges can be easily transferred to other types of facilities such as wastewater treatment plants, pumping stations, and waterworks. Moreover, this method could also be used in other sectors, such as the oil and gas industries, the pharmaceutical industry, and the chemical industry. If it is combined with the focal topics of the other SPES_XT project partners companies that are working on comparable issues in the aeronautical and automotive sectors the result could lead to a comprehensive methodology that might transform the entire engineering landscape. Nils Ehrenberg
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Integrated Systems | Facts and Forecasts
Integrated Systems | Security Systems
Multiple security systems protect intellectual property and literary treasures at the Bibliotheca Albertina in Leipzig.
Smart Cities: Urban Pioneers with Great Business Potential

Only a few years ago, the concept of the smart city was practically unknown. Today, however, everybody is talking about it. In fact, there is even a ranking list of the worlds smartest cities. The list is available at www.fastcoexist.com, where climate strategist Boyd Cohen has rated Austrias capital, Vienna, ahead of Toronto, Paris, New York, London, Tokyo, Berlin, Copenhagen, Hong Kong, and Barcelona. The ranking is based on a range of diverse indices, including the Green City Index that was commissioned by Siemens (see Pictures of the Future, Fall 2012, p. 40). But what exactly is a smart city? Corporate consultants Frost & Sullivan use eight smart categories to define this entity: smart buildings, smart energy, smart information technology, smart mobility, smart city planning, smart business, smart governance, and smart citizenry. Senior Principal Key Expert Engineer Ulrich Lwen from Siemens Corporate Technology (CT) believes that this concept of smartness is still too vague. It needs to be made more specific with regard to technology, he says. The current general opinion can be summarized as follows: a city is smart if it makes use of the Internet of Things and other intelligent systems to use its resources more efficiently and thus improve the lives of its citizens and enhance its own competitiveness. Fields that are relevant to this concept include energy, transportation, industry, and public administration. In addition, a smart city must be able to combine a host of different systems into a coherent whole; thus system integration is the order of the day. According to Lwen, there is another big challenge in a world of decentralized networks, where traditional hierarchies no longer exist: the need to define clear areas of responsibility. In a closed system like an aircraft, it is always clear who is in control, despite increasing levels of automation. In a smart city, by contrast, there are no such clear-cut system boundaries. Smart meters are an example of the kind of technology featured in these clever conurbations. Such meters are an essential part of a power network that features localized sources of generation, fluctuations in incoming supply e.g. from renewables and a large and diverse group of consumers. Smart meters provide a clear picture of supply and demand and, equally important, help balance one against the other. The power company that serves the Canton of Zurich, Switzerland plans to install 50,000 smart meters over the next two years at a cost of around 400 per meter. The rest of the network, totaling over 280,000 customers, will be equipped in the following years. That represents a major investment in a comparatively small part of a smart city. A closer look at the global market for smart grids reveals the true dimension of this business opportunity. A study conducted by EIT ICT Labs a knowledge and innovation community set up by the European Institute of Innovation & Technology, which includes Siemens as a partner forecasts a volume of around 10 billion for smart homes in the year 2020. This, in turn, translates into a potential global market of almost 400 billion for smart grid technology. Equally important as smart homes and smart grids are the ap-
plications and services that go with them. Other growth areas include intelligent logistics and transportation in smart cities and, of course, all the attendant information and communications technology, ranging from radio frequency identification chips to the associated sensors that are required for purposes of data collection and networking. For the year 2016, the market research company ABI Research is projecting an investment volume of over 30 billion for the installation of sensors in smart cities. This would be a fivefold increase compared to 2011. According to the consulting firm Global Information, 70 percent of total capital expenditures in 2013 will be devoted to energy, transportation, and public security, with 90 percent of this expenditure being funded either in total or in part by national or local governments. All in all, we are looking at global investments in urban infrastructure amounting to hundreds of billions of euros in the period until 2020. By then, half of all buildings in the worlds smart cities will be fitted with intelligent building systems; multimodal transport hubs interchanges between different modes of transport will be the norm; one fifth of the energy required by such cities will come from renewables; and one in ten vehicles will be electrically powered. By 2025, according to a study conducted by Frost & Sullivan, only around half of the worlds smart cities will be found in Europe and North America. In 2011, four
Worldwide Building Stock

200 180 160 140 120 100 80 60 40 20 Year 2011 2012 2013 2014 2015 2016 2017 2018 Billion m2
Source: Frost & Sullivan The smart diamond defines a smart city
Building stock is projected to increase worldwide by around 30 billion square meters from 2013 to 2021, particularly in Asia.
Categories that Define a Smart City

Citizenry Governance
out of every five were still in these regions. In India and China alone, we may see the creation of as many as 50 smart cities up to 2025, some of them built entirely from scratch. Such forecasts are music to the ears of many companies. Right now theres particularly strong demand for our consulting services, says Lwen. Were being asked to identify and then implement partial projects within existing smart cities. As a rule, the situation on the ground is too complex for comprehensive, integrated solutions. Generally speaking, you can only take one step at a time in this area. At the same time, there are already a number of smart urban developments, such as Seestadt Aspern, near Vienna, which are looking to implement fully integrated solutions in cooperation with a technology partner in this instance, Siemens (p. 16). Given the massive global trend toward urbaniza45 40 35 30 25
Source: EIT KIC InnoEnergy Strategic Roadmap
Why Data Synergies Equal More Security

Regardless of whether they cover a building, an airport, or an entire city, todays safety and security systems tend to operate independently of one another. In the future, data streams from such systems will be increasingly integrated. This will open the door to coordinated and optimized planning, better use of resources, and prediction of potentially risky situations.
Source: Pike Research
North America Western Europe Eastern Europe Asia-Pacific Latin America Middle East Africa
City Planning Mobility Business Buildings
2019
2020
2021
Information Technology
Energy
Global Market for Smart Grids Growth Projections and Key Elements to 2020
600 Billion euros 500 400 300 20 200 100 5 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 0 15 10 Billion euros
Power distribution Power transmission
Smart homes Security Services Applications ICT
tion, smart cities will continue to be pioneers for the foreseeable future, serving as examples of one route to a more sustainable future. The majority of the worlds cities still face completely different challenges. Dan Hoornweg, Lead Urban Specialist at the World Bank until 2012, offered the following message in a blog: Being really smart about cities is improving basic service delivery to the one billion urban poor now going without clean water, or the two billion without sanitation. And we need big-time smarts as we build cities over the next twenty years for an additional two billion residents this time locking in energy savings and a high quality of life for all. Urs Fitze
The security sector has traditionally relied on systems that operate independently of one another, such as motion detectors, cameras, and smoke detectors. The technologies involved monitor specific zones in a building, for which individual security settings have been defined. An alarm is triggered whenever an anomaly is detected. This approach is used with access control, video surveillance, and fire alarm systems, among others. The Bibliotheca Albertina library at the University of Leipzig, Germany, uses individual security systems from Siemens to protect its collection of valuable books and maga-
zines, which number in the millions. Here, sensors in windows, doors, and display cases, as well as seismic sensors, motion sensors, cameras, and smoke detectors and temperature sensors, watch over the librarys literary treasures. But security can be set even higher, according to Peter Lffler, a security systems expert at Siemens Building Technologies. He points out that improved security can be achieved by integrating the data generated by previously isolated systems, such as the units that manage access control and video surveillance. For example, he says, if a security system determines that someone is try-
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Integrated Systems | Security Systems
Integrated Systems | Fusing Ultrasound with CT
Researchers use a new technology that combines real-time ultrasound with existing CT images to guide a needle to a liver in a phantom (center).
Sensors, cameras, and seismic and motion detectors uninterruptedly keep an eye on things at the Bibliotheca Albertina library (above). Networking such systems enhances security for complex infrastructures, such as those used at the Vatican and in airports.
added value for operators of critical infrastructures. One example involves the monitoring of aircraft taxiing areas, where systems can identify which vehicles are moving, and where, along taxiways at a given time. Such data could theoretically be compressed and made anonymous, thereby enabling the generation of so-called heat maps that provide information about the statistical behavior of the vehicles. The knowledge gained in this manner could be used to make taxiway processes more efficient. Heat maps can identify jams and delays that repeatedly occur when refueling and cleaning vehicles get in each others way, for example. It would be interesting if we could also use large and diverse data sources in the future to identify trends that were previously not discernible, says Lffler. He also points out that this type of invisibility often results from the sheer complexity of the operations in question. Imagine, for example, the flood of traffic-related data in a city in which hundreds of thousands of people are simultaneously moving in the same direction within a dense area and with different modes of transport, he says. Big Data Analyses. The key to conducting such big data analyses is to obtain large amounts of comparable historical data from reliable sources. As Lffler explains, this information can be concentrated in a data pool and then aggregated in order to extrapolate statistical trends that could help to predict future developments, as well as to plan preventive measures. In other words, big data could help to enhance the safety and security of large numbers of people in entire cities or specific districts (see Pictures of the Future, Fall 2012, p.96). Take the Vatican, for example, where 50,000 people come to celebrate Christmas Mass in St. Peters Basilica every year, and another 200,000 crowd the square in front of the church. The analysis of various data sources ranging from traffic control systems to train arrival times would make it possible to ease potential bottlenecks well before large numbers of people arrive for the service. Moreover, meteorological data and information from social networks and newscasts could also be linked to such events and analyzed in order to identify and even predict potential hazards early on. Security officers at major events could then call in more support staff or open additional access routes. Such steps hold the potential of reducing risks and enhancing collective safety. Catharina Bujnoch
Opening a 3-D Window

Thanks to a new technology that rapidly, robustly and automatically integrates real-time ultrasound images with previously-acquired 3-D computed tomography images, doctors can see inside the body as never before, thus performing needle biopsies and ablations with confidence.
ing to force open a door, cameras located near the door can be automatically activated and begin recording the scene. Such causal relationships and the associated work flows can be defined in advance and stored in a building management system. Networked Data and Optimized Results. Siemens security systems that link individual subsystems to create an overarching platform take things a step further. Here, information from subsystems is collected in real time in order to generate a standardized and comprehensive overview of a situation. This setup allows users for example, an airport operating company to quickly decide how they should react to a security-critical event. Here, airport operators define scenarios and plans of action in advance for many
types of incidents, and the system helps them make the right decisions when a critical event actually occurs. Smart security systems can even discover unexpected causal relationships. Suppose, for example, that an airport operator has stipulated that doors at gates can be opened only if an airplane is actually docked. If the system determines that doors are occasionally being opened even though no aircraft is present at a gate, the system will look for a cause. It might then discover that the air conditioning system is not operating optimally in the areas in question and that employees are uncomfortable. As a result, resolution of the climate control problem would also resolve the security anomaly. Intelligent security systems can even be used to optimize processes. This generates
Whoever thought that flesh and blood could be transparent? That you could look at a monitor and see through a section of a living human body in detail and in real time? And yet, like mariners steering a periscope to the safest point just above the waves, doctors looking to determine the exact nature of a lesion in a patients liver, for instance, are now able to guide a biopsy needle to its target as if the patient were indeed transparent. It all begins with a 3-D computed tomography (CT) scan (or eventually an MR scan) that may have been ordered for a range of reasons. Lets say that the scan reveals an anomalous body about a centimeter in diameter. Even if the lesions shape and other characteristics do not indicate any sign of malignancy, a biopsy will generally be ordered. The question is, how can a radiologist know
exactly how deep the biopsy needle should go and at precisely what angle to point it? Until now, accurate tissue characterization of nodular lesions under 3 cm was very challenging due to limited certainty that the needle would actually meet its mark, explains Research Scientist Ankur Kapoor of Siemens Corporate Technology (CT) in Princeton, New Jersey. Such an approach has significant therapeutic implications in terms of tumor progression, metastases and mortality. But today, thanks to a new technology called eSieFusion imaging that puts 3-D CT and live ultrasound (US) images on the same screen, even lesions as small as 2.5 cm depending on the transducer and location of the pathology can be accurately targeted, says Mamadou Diallo, Staff Engineer and eSieFusion feature Project Lead at CT in
Princeton. The technology opens the door to earlier analysis and treatment, heightened accuracy, reduced risk, and lower costs. Originally spawned by a Siemens-sponsored PhD thesis in 2005 and FDA approved in late 2012, eSieFusion imaging, which is now available on Siemens ACUSON S3000 ultrasound systems, creates a virtual 3-D window through the body by integrating the information from two completely different sources: the patients imported 3-D CT scan and his or her real-time ultrasound images. Like an automotive navigation system, the CT information provides a map of the area of interest, where anatomical structures and the final destination the lesion are illustrated. The map can even include pre-treatment annotations that draw attention to areas that should be avoided by the needle.
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Integrated Systems | Fusing Ultrasound with CT
Integrated Systems | Prosthetic Joints
Image-to-Implant technology will allow diagnostic scans to be automatically translated into personalized prosthetic devices.
Overlaid on this map are the patients realtime ultrasound images. Siemens unique software, which discovers all the points of similarity between each CT image and each ultrasound image, creates rapid and robust alignment between the two. Naturally, a third element must be added to this already data-rich environment: the real-time position of the needle tip. To integrate this into the picture, eSieFusion imagings eSie Guide needle tracking technology uses an external box that generates a weak magnetic field. With the help of a position sensor on the ultrasound transducer (the sensor head that touches the patients body) and a tiny coil inside the tip of the needle, the box tracks the positions of both as they move within the magnetic field. The tracker box feeds the information back to the ultrasound machine and, with the help of a proprietary mathematical model, the coordinates of the ultrasound image and the needles position within it are graphically fused in the eSieFusion imaging application, explains Kapoor. Automated Answers in Three Seconds. The key feature in all of this is the ability of eSieFusion imaging to automatically align ultrasound images with CT images a significant achievement considering that even when depicting exactly the same part of the body, these two modalities deliver radically different-looking pictures. To overcome this challenge, Siemens scientists came up with a technology that allows eSieFusion imaging to transform each CT image slice into a pseudo ultrasound image. The ability to do this is based on knowledge about the transparency and reflectivity of tissues in ultrasound and CT, explains Diallo. In a second step, which is designed to optimize alignment, eSieFusion imaging compares the pseudo ultrasound images with a sample of real-time ultrasound images of the area to be examined. But this process is far more complex than just comparing two images. The CT image, after all, is a 3-D volume composed of hundreds of slices, each of which is a separate image. The new fusion technology therefore rotates the CT volume image, calculates the position of each spot within a slice, and with each fraction of a degree of rotation generates a simulated ultrasound image. The technology then compares all its points to the latest real-time ultrasound image, calculates the similarities with the previous image, and chooses those similarities that are the best ones, says Kapoor. Not only is this process rapid, it is also extremely robust. The system constantly com-
The system also displays a graphic dot in the ultrasound image that indicates the needles projected intersection point with its target. As the needle approaches the target, the dot becomes smaller and smaller. Once the needle punctures its target, cells are aspirated and the core tissue sample is removed for lab analysis a procedure that should be repeated multiple times because of the heterogeneous nature of cancerous lesions. If malignant cells are discovered, chemotherapy is usually initiated in order to minimize the threat of metastasis. During this follow-up stage, the lesions response to treatment can be tracked on an outpatient basis using eSieFusion imaging, thus reducing costs and radiation exposure since additional CT scans may be obviated. If the lesion does not respond to chemotherapy, eSieFusion imaging makes the next treatment option ablation more precise than ever. Here, once the needle has been positioned inside the target, the sensor at its tip is replaced with an electrode that applies heat. As this happens, says Kapoor, water molecules in cells become gaseous and hyper-echoic. In the context of the annotated outline of the lesion, the doctor can watch the electrode eliminate the remaining lesion. Looking Ahead. Although eSieFusion imaging was only recently commercialized, early adopters are delighted with their results. It allows us to significantly speed up our workflow," says Dr. Dirk-Andr Clevert, Assistant Professor and Section Chief of the Interdisciplinary Ultrasound Center at Munich University Hospital Grosshadern, Germany, one of the first physicians to test it. What might the next steps be for this highly promising technology? Although eSieFusion imaging was developed with liver lesions in mind, it is applicable to a variety of conditions, says Diallo. For instance, he explains that, in areas such as the shoulder and foot, if there is a hairpin crack in a bone or a tendon has been pulled away from a bone, it could be used to inject a pain killer into the exact spot that is causing the pain. In addition, although eSieFusion imaging already supports magnetic resonance imaging (MRI), automatic alignment of images from this modality is on the horizon. Such a step might further enhance safety thanks to the fact that MRI makes it possible to see nerves. The new eSieFusion imaging system is already the fastest current technology for performing biopsies and ablations, says Kapoor; but it will go much further in the future. Arthur F. Pease
Personalized Prosthetics: From Bytes to Bones

The road to a prosthetic knee, hip or shoulder joint is becoming shorter, faster, and more personalized. New technology from Siemens makes it possible to integrate measurement data from diagnostic images with manufacturing instructions, thus potentially opening the door to automated production of custom-made prosthetic devices.
Researchers Ankur Kapoor (top) and Mamadou Diallo (center) use eSieFusion imaging to guide a needle (thin green line) to a target lesion. A magenta cylinder indicates the planned path to the lesion.
pares all of the values in all of the images to ensure that they are all lining up, says Diallo. It maximizes the similarities from image to image as it goes through the volume. Diallo and Kapoor point out that this combination of Siemens proprietary technologies results in accelerated workflow, which differentiates eSieFusion imaging from every other system on the market. Other systems require the doctor to line up landmarks in the CT and US images, says Kapoor. That takes more time. In contrast, although our system also offers this manual option, it provides an automated answer in most cases. And it requires only about three seconds for alignment. Once eSieFusion imaging has completed alignment of the two image sets, the interventional procedure can begin. The eSie Guide feature produces two yellow guide lines that indicate the needles optimal path.
Researchers at Siemens Corporate Technology in Princeton, New Jersey, in collaboration with Siemens Industry Automations PLM Software business unit, Siemens Motion Control, and major orthopedic implant manufacturers, have developed a process called Image-to-Implant that will allow computed tomography (CT) and magnetic resonance (MR) scans to be automatically translated into personalized prosthetic devices for knees, hips, shoulders, or other joints. The new technology promises to sharply reduce surgical planning time for the replacement of diseased joints while improving the accuracy of associated manufacturing processes. Take knee replacement procedures, for instance. According to Global Data, which specializes in industry reports, each year, more
than 720,000 people in the U.S. undergo arthroplasty to have an artificial knee joint installed. In the UK, the National Health Service estimates that over 70,000 knee replacements are carried out each year. Other conditions tell a similar story, with steadily growing numbers of joint replacement procedures. Regardless of whether an orthopedic surgeon is replacing a knee, shoulder, hip or other joint, the procedure calls for the installation of a prosthetic joint that fits the target area as closely as possible. To meet this goal, doctors begin with a 3-D CT or MR scan of the area in question, which is the first step in the surgical planning needed for installation of a prosthesis. (CT is faster and less expensive than MR, but MR offers more soft tissue detail without any radiation).
But such scans by themselves are useful only for visually depicting the demarcation between bone and soft tissue. What we add to this with our patented software is automated image segmentation that recognizes image content to delineate bone boundaries, says Dr. S. Kevin Zhou, who heads a research group that focuses on image analytics at Siemens Corporate Technology (CT US). Zhou explains that until now such segmentation has been performed manually, requiring painstaking work as technicians mark points along the edges of the bones in question to achieve precise bone boundary delineation. But with our software, adds Corporate Technology ultrasound segmentation specialist Michal Sofka, the entire process has been reduced to about one minute.
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Integrated Systems | Prosthetic Joints
Integrated Systems | IT Solutions
In the U.S., healthcare networks such as Inspira increasingly rely on electronic patient files.
Siemens Integrated Technology: An end-to-end solution from diagnostic images to personalized medical implants
CT-Scan MRI-Scan Surgeon portal OR
Hospital
3-D-volume construction
Ideal standard implant
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Pre-OP planning
Segmentation
CNC tools
Cutting guide customization
CAD/CAM
Machine tool cutting Manufacturing Execution System
Once the joint is open, the surgeon places the patient-matched jig over the bone to which the prosthesis will be attached, says Fang. The jig is outfitted with guide openings that allow the bone to be cut in exactly the right places. Everything is simulated and optimized in the virtual world to avoid the possibility of errors on the operating table. Naturally, as Fang and Zhou see it, the personalization of joint replacement procedures will eventually have to include the prosthesis itself. But thats a business decision that will have to be made by the manufacturers of orthopedic implants. For the time being, metal implants will continue to be mainly produced in a range of predefined sizes. But, says Fang, our technology can just as easily be used to automatically customize each prosthetic device, just as it is now about to be used to automate production of customized surgical jigs. From Industrial to Medical Applications. From patient scans to surgical planning, patient-matched jig production, and installation of an optimized implant, the road across the diagnostic-therapeutic landscape is becoming shorter, faster, and richer in data. And as the integration of medical imaging technology and advanced manufacturing strengthens, an engineer-to-order technology more typically associated with industrial production environments than hospitals is helping to connect all the dots: Teamcenter. Offered by Siemens PLM Software, Teamcenter provides a unified platform for managing every aspect of a patients case through the engineer-to-order process. Its where the scans go and where the segmentation is filed, says Fang. Its where surgical planning is kept, including the final version of the patientmatched jig; where the surgical report is stored, and where the doctor logs onto the patients file. In short, it provides the interface between the digital world and the data required for manufacturing it. Now in use by many medical device manufacturers, Teamcenter is not only helping to streamline current product lifecycle management processes, but is set to facilitate the impending automation of the entire process from patient imaging to additive manufacturing of patient-matched jigs, as well as the eventual personalization of implants. As societies around the world continue to be characterized by older and older populations, the Image-to-Implant process and its associated NX and Teamcenter technologies could turn out to be just what the doctor ordered. Arthur F. Pease
Parameterization
3
Personalized implant
Manufacturer of Implants
Engineer-to-Order Process & Data Management Platform
Networking U.S. Healthcare

In order to implement healthcare reform in the U.S., data sharing between healthcare organizations, hospitals, and doctors must be significantly improved. Data sharing networks such as Inspira in New Jersey are using IT solutions from Siemens to accomplish this objective.
Similar to other software applications Zhou has developed (see Pictures of the Future, Fall 2011, page 57), his bone identification system is based on machine learning. Trained on thousands of images annotated by experts, the software program learns to identify so-called landmarks characteristics that are common to all examples of a target group. We start out with patient scans, says Zhou. The system learns the model of each joint to the point that it understands the relationship between each image and its anatomical context. Then, to ensure that it is learning the right things, we test it on novel images. What the program does is that it performs automatic 3-D image segmentation. In other words, it separates the bone from the soft tissue three dimensionally and produces all associated 3-D bone representations, e.g., 3-D meshes, down to a granularity of about 0.5 mm. The results, he points out, have shown that the system very closely matches the quality of its manual counterpart. But since it is a learning system, we expect it to improve over time. Automated Generation of Surgical Plans. In fact, the output of the new software is al-
ready so accurate that it can be seamlessly transferred to a second application that designs a custom surgical cutting guide essentially a 3-D jig that can be used by a surgeon to prepare a bone for a prosthesis. The jig can include, for instance, holes for the precise positioning and angulation of screws, thus helping to optimize the installation of a prosthesis. Before moving to the jig production step, however, the software produces a surgical plan for review by the orthopedic surgeon, which includes measurements of the bone to be cut in preparation for the prosthesis, says Siemens Corporate Technology Senior Staff Scientist Dr. Tong Fang, an expert in manufacturing technologies whose work has made it possible to automate the assembly of hearing aids in the virtual world (see Pictures of the Future, Fall 2009, page 89). When the software becomes commercially available, users will be able to verify each step the system has planned. But later, as they become familiar with it, the program will be able to run through all of this automatically, says Fang. After the orthopedist has approved the surgical plan, the data is translated into manufacturing instructions for production of the
custom patient-matched jig. Produced with a novel technology called additive manufacturing also known as 3-D printing in which minuscule grains of plastic are sprayed in overlapping layers at high temperature and pressure to produce exquisitely precise and complex features, personalized jigs can be rapidly and inexpensively manufactured (see Pictures of the Future, Spring 2013, page 31) One of the key steps in this entire process is the creation of families of 3-D CAD models that are used as templates for the custom plastic jigs produced with additive manufacturing, as well as the metal implants produced with 5-axis computer-numerically-controlled machine tools. NX, a computer-aided design, manufacturing and engineering analysis (CAD/CAM/CAE) software application from Siemens PLM Software, is used to generate these models (see Pictures of the Future, Fall 2012, page 55). Whats more, NX can automatically simulate associated machine tool paths in order to create the best match between a patients anatomy and the implant. The numerically-controlled program is then transferred to a milling machine with a view to achieving perfect surface quality while minimizing machining time.
It still smells like fresh paint in the office of Chet Kaletkowski, the President and CEO of the Inspira Healthcare Network, an association of hospitals and practices in southern New Jersey that was formed in November 2012. His move to a new office is part of the merger that created Inspira, a move designed to create an expanded network of providers to deliver high-quality and cost-effective care for the community. The U.S. Affordable Care Act is very challenging, and many aspects of it are still unclear, says Kaletkowski. However, the Acts goal is to build up a nationwide healthcare system in which patients can be quickly identified, caregiving personnel have access to patients medical files, and doctors can quickly get an overview of each patients health condition.
Healthcare experts agree that this kind of system could save time and money. But the higher quality of healthcare envisioned by the Act can be achieved only if players in the healthcare sector especially doctors and hospitals are more effectively connected. Thats the opinion of Kaletkowski, who relies on IT solutions from Siemens in his own organization. For example, thanks to MobileMD, a cloud-based healthcare information exchange service, doctors can receive information about their patients within seconds. And Soarian Clinicals, a workflow-driven healthcare information system from Siemens, supports treatment from the very start throughout the treatment process. According to Kaletkowski, the basis of the Soarian Clinicals system is an electronic patient file, the Electronic Health Record (EHR),
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Integrated Systems | IT Solutions
Integrated Systems
that is accessible to everyone involved. Continuity can be achieved in the treatment process only if all of the information about the patient, from the first visit to the doctor to complete recovery at home, comes together in a single file, he says. Kaletkowski, who is responsible for over 5,000 employees, knows this is not an easy task. Inspiras catchment area covers more than 1,500 square miles. Whats more, New Jersey is the most densely populated state in the U.S. Most of its doctors work independently and have their own systems for compil-
able to take care of almost everything online, he says. Shields is already working closely with Inspira and encouraging his patients to ask for copies of their electronic patient files every time they go to a doctor. He admits that of course there are also patients who dont like to have their personal information electronically stored and shared. Thats why the issue of data protection is discussed with every patient. Shields assures them that the data is securely stored and that it is forwarded to other doctors only with the patients permission.
coordination and reduced healthcare disparities. There are a few hard months when this takes up a lot of time, says Shields, but then the data exchange becomes increasingly smooth. I think you can easily achieve quality and efficiency with EHRs, and I think were almost there, says Shields. Right now we have a bunch of people that are doing meaningful use to cut costs and improve efficiency, but we need to put everybody together. And I think thats where the hospital system comes into play because, since theyre connected with all providers, they can be the bridge to bring everybody on the same page. Inspira and Siemens are increasingly adapting the system to the doctors needs, he adds. For example, when a patient is seen in the hospital, as a gastroenterologist I dont need all of the test results generated during the admission or visit. Instead, I can choose the ones that are important for my treatment of the patient, and these results are sent to me. The program can be tailored to every individual doctor. If that werent the case, we would drown in a flood of data. A major advantage of this system is that it makes it possible to prescribe medications electronically. Doctors handwriting is notoriously illegible. But when doctors migrate to electronic prescriptions, this problem is solved. A medication can be selected with a mouse click and the dose can be entered the same way. The prescription is then transmitted electronically to a pharmacist, who assembles the order. At the same time , the system medication database alerts the physician against wrong doses and interactions with the patients other medications. Complete Overview. Shields now wants to improve his work still further by pushing ahead with the integration of various systems in a uniform platform. I hope that hospitals and doctors will be connected via a single interface as early as next year, so that all of us can see whats being done for every individual patient. Theres still too much redundancy in the healthcare sector. When a patient has to go to several doctors, not every one of those doctors has to order a computer tomography (CT) scan. Today I can see on an EHR which examinations a patient has already had, he says. Shields is convinced that a properly implemented electronic system can significantly reduce the costs of the U.S. healthcare system. A study by the University of Michigan in Ann Arbor confirms Shields impression: in outpatient treatment in particular, healthcare
IT can help providers lower costs by up to five percent, according to the study leader Julia Adler-Milstein. Shields daily practice provides him with plenty of examples. One of my coworkers can be with a patient in the examination room while I study the patients file on a computer. That wasnt possible with the old paper documents. This way we can save a lot of time, he points out. Solutions for Mobile Applications. Tom Pacek, Chief Information Officer at Inspira, is responsible for the healthcare networks IT strategy. He is making every effort to further improve the current status of the information network. Under his supervision, Inspira is being extensively re-equipped with new, expanded modules from Siemens Soarian and MobileMD product offerings, which doctors can use by means of mobile tablets. Were very lucky to have Siemens as a partner, says Pacek, an information technology strategist. The Siemens solutions are helping us not only to understand where we can save on costs, but also to implement the transition to fully digitized services as quickly as possible. Together with two other healthcare systems in the state, Inspira has helped to create the New Jersey South Health Information Exchange (NJSHINE). Here, Siemens Soarian and MobileMD are providing solutions for the exchange and ceentralized storage of southern New Jersey customer data. In the future, the data is to be networked with other similar health data systems all over the U.S., meaning that Siemens IT solutions will play a major role in the process. But by no means every doctors office in New Jersey uses electronic data sharing systems. Many doctors are just a few years from retirement, and they dont want to change the system they are used to, says Shields. Other colleagues of his find it difficult to share their information, because it makes them feel their work is being supervised. Nonetheless, Shields feels that the future belongs to healthcare systems that are connected via computer networks. Inspira also wants to enable patients to be more active participants in their own treatment. A patient portal that Inspira is introducing in coming months will give patients access to their files, as well as tips as to how to recover faster and have a healthy lifestyle. Theres still a lot to do, says Pacek. We have to carefully convince doctors and patients that the IT revolution is to their advantage. Siemens is an indispensable long-term partner for us in this process. Roman Elsener
In Brief
Increasingly, individual systems have to be combined into a coherent whole. In the case of energy generation, for example, a few hundred power plants supplied Germany with heat and electricity in the 1990s. Today the country has around two million small, medium-size, and large energy producers. In addition to these plants, hardware, software, buildings, and power grids are also increasingly being integrated into a large system. (p. 14) The model city of Aspern near Vienna is a perfect example of systems integration. The citys buildings and electricity supply systems are closely networked to generate synergies. (p. 16) A growing number of sensors, microprocessors, and wireless devices are becoming integrated with objects in our surroundings, says entrepreneur Assaf Biderman in an interview. To enhance safety and security, Siemens has integrated various fire and break-in prevention tools into a single system. (pp. 20, 35) The Future Internet for Smart Energy project shows that the integration of individual systems requires communication to be improved. The project examines how energy producers and consumers can communicate via the Internet. Communication is also the focus of the Inspira Health Systems network. Close links between doctors and hospitals are a precondition for the planned healthcare reform in the U.S. (pp. 22, 41) The SPES_XT project demonstrates how products are tested in the virtual world before they are manufactured in reality. For example, a desalination plants operation is completely created in a computer. At the Decentralized Poly-Generation Development Center in Erlangen, developers are creating small smart grids in order to discover the networks strengths and weaknesses. (pp. 24, 32) Interviews: Integration also plays a role in the use of surplus wind and solar energy. As the RWE Wind Heating project demonstrates, storage heaters can absorb excess amounts of eco-electricity. (p. 28) eSieFusion integrates information from pre-existing 3-D CT images with real-time ultrasound images to create detailed interior views of the human body (pp 37) Image2Implant software creates 3-D templates from joint patterns. The templates serve as the basis for customized prosthetics. (pp. 39) Assaf Biderman, MIT Kristian Kloeckl, MIT Carlo Ratti, MIT http://senseable.mit.edu LINKS: Aspern: www.aspern-seestadt.at/en FINSENY: www.finseny.eu TIA Portal: www.industry.siemens.com/topics/global/de/ tia-portal/seiten/default.aspx PEOPLE: Aspern: Dr. Bernd Wachmann, Corporate Technology bernd.wachmann@siemens.com Dr. Monika Sturm, Corporate Technology monika.sturm@siemens.com Power grids and their communication: Dr. Kolja Eger, Corporate Technology kolja.eger@siemens.com Guido Helbich, Infrastructure and Cities guido.helbich@siemens.com Smart grids: Sebastian Nielebock, Corporate Technology sebastian.nielebock@siemens.com Dr. Jochen Schfer, Corporate Technology jochen.js.schaefer@siemens.com Wind heating: Thomas Werner, Infrastructure and Cities thomas.werner@siemens.com Controlling robots with TIA: Carsten Meier, Industry Automation, meier.carsten@siemens.com Virtual facility planning: Dr. Ulrich Lwen, Corporate Technology ulrich.loewen@siemens.com Dr. Jan C. Wehrstedt, Corporate Technology janchristoph.wehrstedt@siemens.com Building security: Peter Lffler, Infrastructure and Cities peter.loeffler@siemens.com eSieFusion imaging: Ankur Kapoor, Corporate Technology ankur.kapoor@siemens.com Mamadou Diallo, Corporate Technology mamadou-diallo@siemens.com Image2Implant: Dr. S. Kevin Zhou, Corporate Technology shaohua.zhou@siemens.com Sabine Fietz, Industry Drive Technologies sabine.fietz@siemens.com
About 70 percent of healthcare providers in the U.S. already use electronic patient data. One of them is Inspira in New Jersey (top left). The goal is to be able to call up all the essential data with a mouse click and act quickly wherever and whenever its necessary.
ing patient files and working with hospitals. When they share information they use lots of paper, and much time is wasted as people wait in telephone queues. Inspiras primary challenge is therefore to persuade doctors that a better IT network can help everyone involved to organize their work more efficiently. Treasured Data. Dr. David Shields, a gastroenterologist, is setting a good example in his practice, which is only a few steps away from Inspira Medical Center Vineland, New Jersey. In the future I want my patients to be
Today, about 70 percent of healthcare providers throughout the United States use electronic patient data. But in certain regions, such as southern New Jersey, some doctors are still behind the curve. The government is promising financial support to doctors willing to make the change, and those who dont will soon have to reckon with remuneration cuts. Meaningful Use is the name of the government initiative to accelerate the adoption of healthcare information technology among providers. It is considered to be part of the foundation of health reform in the U.S., helping to achieve goals such as improved care
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Pictures of the Future | Rural Healthcare
In Mexico, traditional and modern medicine co-exist. Some patients want both healing ceremonies with sacrifices of animals, and angiographs at highly specialized clinics.
The floor is covered with pine twigs, and the air is saturated with the smell of incense. Hundreds of candles fill the church of San Juan de Chamula with a celebratory glow. Entire families are squatting on the floor. Every group has stuck candles on the stone floor in front of it with drops of wax. Murmuring fills the arched hall. Here sick people are praying for healing of body and soul, healthy ones for protection from disease. Wooden statues resembling Christian saints watch over the rituals of the people who live here in the highlands of Chiapas, in southern Mexico. One statue looks like a crucified Jesus but wears a bright yellow skirt. Other figures wear colorful clothes and mirrors around their necks to distract the Evil Eye. For local inhabitants the statues do not represent catholic saints, but rather in their syncretistic system of beliefs traditional gods, of which there are many. For instance, there is Yajvalel Banamil, god of space; Yajvalel Vinajel, god of the sky; and Chonbolom, god of animals. Most of the peo-
tems, including imaging equipment from Siemens, such as the latest generation of computer tomographs (CTs). Relatives of patients who are being treated here are squatting in front of the hospital. Some of them camp out on their colorful wool blankets day and night. Inside the building, Dr. Ishbi Arubi Buneder Poblete is preparing a patient for an examination. A young woman will soon be wheeled into the cylinder of a CT for the first time in her life. Weve identified liquid in her lungs on the Xrays. However, we dont know if it is water or blood. A CT examination will help us to make a diagnosis. Previously, we would have had to puncture the lung, and thats a potentially risky intervention, Dr. Buneder explains. Buneder did her medical training in Mexico City. In her experience, the patients there live in a different century than those who are treated here, she says. In Mexico City, many patients have already searched for their diagnoses on the Internet before they go to a doctor, and they demand specific treatments. By contrast, here in Chiapas we sometimes get
Many cases of end stage breast cancer are also diagnosed something that is unusual in Mexicos large cities, where carcinomas of the breast are often discovered at stages that can be effectively treated. Thats because preventive programs have been routine for many women for years. Prevention for All. Gradually, more and more of the five million inhabitants of Chiapas are gaining access to preventive healthcare programs. Pijijiapan, a town of 50,000 inhabitants located near the Pacific coast, is an example. Thousands of bicycle taxis wend their way through the traffic, past open-air kitchens and taco stands that play loud music to attract customers. The womens clinic of Pijijiapan, like seven other clinics throughout Chiapas, uses stateof-the-art ultrasound or X-ray-based mammography systems from Siemens. Today, on average, it takes indigenous women only a few minutes to get to the clinic for a preventive checkup. But only a few years ago, most women from Pijijiapan had to journey to
From Animal Sacrifices to Science

As diseases of affluence such as diabetes spread to emerging economies, healthcare needs and costs are rising sharply. The state of Chiapas in Mexico is not only coping with these challenges, but is bringing better care to even its most remote areas. Reliable medical technology is one part of the solution; another is a changed concept of medicine from animal sacrifices to science.
The Hospital de las Culturas integrates traditional remedies with
ple in the church of San Juan de Chamula descendents of a 4000-year-old civilization that included the Mayas have brought with them, wrapped in newspaper, special herbs that they stroke their bodies with in order to cleanse themselves. They have also brought eggs and live chickens for ritual sacrifices. According to the natives, many diseases can be prevented or healed only by means of traditional ceremonies. In their view, socalled modern or conventional medicine would be useless for such conditions. However, if sacrifices and rituals fail, some local people are starting to agree that a trip to the Hospital de las Culturas, which is located a half hours drive away in San Cristbal de las Casas, may be necessary. In fact, the hospital is equipped with a range of advanced sys-
modern medicine. Dr. Ortiz from Medica Sur has over 50 years of experience.
patients who have never seen a doctor before, she says. Unfortunately, Buneder is often confronted with conditions that have reached an advanced stage. Thats because many indigenous patients come to her only after local healers have failed. I sometimes see swollen, infected gallbladders that have been treated by healing ceremonies for a long time, she says. The patients allow themselves to be stroked with twigs, meaning that their condition just grows worse and worse. In many cases we ultimately have no other choice than to operate.
Tuxtla, the capital of Chiapas, to get a checkup. Few patients had the time or money to do so. Between 40 and 50 women visit Pijijiapans clinic every day. Many women are still not very well informed, reports Mireya Quen Martnez, who runs the clinics mammography systems. They believe that they only need to come for breast cancer checkups after they reach menopause, or they dont come regularly. And its not unusual for husbands to object to their wives having their breasts examined by other men. In remote villages, husbands sometimes accompany their wives to gynecological examinations with their machetes in their hands ready for anything. The mammography systems used in Pijijiapan are the same kinds of top-quality de-
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vices that can be found in private clinics in Mexico City. The images are sharp and offer a high level of resolution, even when enlarged. This enables us to avoid repeated examinations, reduce the womens exposure to radiation, and simply work more efficiently, says Martnez. New patients register for Seguro Popular, the state healthcare system, in the clinics main building. The program was introduced in 2008 in order to provide healthcare to all those who had previously slipped through the cracks. Millions of Mexicans had not been insured and thus had to pay for all of their examinations and treatments themselves. As a result, a cancer diagnosis represented a threat not only to patients lives but also to their families economic survival. In some cases, uninsured patients had to sell all of their property and take their children out of
afford treatment. But since the introduction of Seguro Popular, the percentage of patients discontinuing therapy has declined to practically zero. Clinics are being built one by one in order to offer patients the treatment guaranteed by the system. In March 2012, almost all the inhabitants of Chiapas were registered in Seguro Popular. The system is financed entirely by taxes. In areas where inhabitants speak hardly any Spanish, advertisements for the program are broadcast on radio and TV in local languages such as Tzotzil. Nevertheless, in spite of insurance programs, there are still plenty of people in Mexico with cancer who die without receiving treatment or even a painkiller. More Chronic Conditions. In Chiapas, a large proportion of the population, including the growing middle class, consumes too
the number of fatalities worldwide due to noninfectious diseases will increase by 15 percent between 2010 and 2020. In Africa and Asia, this number may increase by as much as 20 percent, while in China, the number of people with diabetes is expected to double by 2025, and in Mexico an increase of 30 percent is expected. Mexicans are already among the most obese people anywhere. A total of 70 percent of the population is regarded as being overweight an even larger share than in the United States. Mexicans drink more sugary soft drinks per capita than any other people on earth. And according to government statistics, nowhere in Mexico do people drink more soft drinks per capita than in Chamula in the highlands of Chiapas in part because of local rites that have included carbonated soft drinks for decades. Trends such as
In remote communities in Chiapas, small healthcare centers have therefore been equipped with X-ray equipment for the first time ever, and even the smallest settlements are regularly visited by mobile clinics. Trucks bring doctors and ultrasound devices into the jungle. And in all of these cases, imaging systems from Siemens are employed. This con-
system, says Ortiz, who has been a practicing physician for more than 50 years. A few meters from the clinic, people live in a slum a ciudad perdida, or lost city in the middle of the metropolis. For the inhabitants of this urban jungle, access to healthcare can be just as difficult as for the inhabitants of the jungle in Chiapas.
reliable operation would cause havoc with our economic calculations, says Ortiz. His hospital has CTs, MRI equipment, and even positron emission tomographs. There are approximately 5,000 radiologists in Mexico, and 600 of them work in Mexico City alone. There are only about 30 in Chiapas. Its not enough just to set up great equipment; we also need doctors who know how to use it and then make the appropriate diagnoses, he says. Profitable Private Patients. Its difficult to attract well-trained doctors to remote regions such as Chiapas. Many doctors dont want to do without the amenities of life in a big city. Besides, there are more private patients in the major cities. Mexican doctors report that 20 treatments of privately insured patients can earn them as much money as a month of work in a public hospital. Dr. Victor Javier Flores Cruz, a pediatrician, nonetheless decided to work in Chiapas at the Hospital de las Culturas in San Cristbal a decision that may have made all the difference in the world for six-year-old Luz. A neighbor had accidentally shot the little girl in the head with a 9 mm rifle as he was cleaning it. Dr. Flores remembers the day as though it were yesterday. The girl was brought immediately to the intensive care ward and received artificial respiration. CT images helped us determine the severity and the exact location of the damage to the brain. Nonetheless, we could only watch as her vital signs deteriorated from minute to minute. We were sure she would die, he says. However, after 14 days Luz her name means light in English began to breathe on her own again. Today she is playing at home with her brother and the neighbors children. Luzs mother and grandmother are sitting in the inner courtyard of their house in the afternoon sun and once again examining all of the images that were made by the clinics Siemens tomographs. If the clinic were not so near and so well-equipped, Luz might be dead today, says her mother. Thanks to Seguro Popular, Luz received treatment free of charge. She now jumps about in the inner courtyard of her home, wearing a pink ribbon in her hair. Luz has not yet regained all of her faculties; she doesnt talk very much, is quickly irritated, and seems withdrawn most of the time. A boy from the neighborhood picks up a dry leaf and hands it to Luz through the fence. The little girl grabs it, and for a short moment a smile lights her usually expressionless face. Her journey back into life has begun. Andreas Kleinschmidt
You have to improve the system as a whole. Making improvements only in isolated areas does no good. Thats why we are also investing in high-tech equipment.
certed campaign has been a success. For a long time, Chiapas had the highest rate of child mortality in Mexico, but between 2002 and 2012 this figure has been reduced by approximately 50 percent. Every Peso Counts. These successes are partly due to work performed by Dr. James Gomez, the former Minister of Health in Chiapas. Its not easy to build up a cost-efficient healthcare system in a relatively poor and thinly populated region such as Chiapas, he says. There are about 20,000 villages in this region, and a quarter of them have fewer than 100 inhabitants. Fernando de Jess Velasquez Montes, who is responsible for the planning of new hospitals and the maintenance of public clinics in Chiapas adds: We have to improve the system as a whole. Making improvements only in isolated areas does no good. Thats why we are also investing in high-tech equipment. His mindset: budgets are limited, so every Peso counts. In Chiapas we use many imaging processes from Siemens, says de Jess Velasquez Montes. This is primarily due to their high quality. Cheaper devices often have their first breakdowns after a year. If the supplier doesnt even have a representative in Mexico, it can take weeks to get replacement parts. The reliability offered by Siemens means that we can have a sustainably high flow of patients. Chiapas is not a wealthy region. And thats exactly why we cant afford to buy cheap devices. One of our sayings is Lo barato sale caro buy cheap, pay dearly. This is also the opinion of Hernndez Ortiz, the Medical Director of the Medica Sur Hospital in Mexico City. The clinic is widely reputed to be one of the countrys top private clinics. You dont have to go to Chiapas to observe imbalances in Mexicos healthcare
A local clinic in Pijijiapan, a mid-sized town in Chiapas, offers
Mexicos Seguro Popular insurance program paid for Luz treatment.
school simply to pay their doctors bills. Often, even that was not enough. A complete breast cancer treatment can cost more than $25,000. According to the World Health Organization (WHO), every year approximately 100 million people all over the world slip under the poverty line because they have no health insurance. In Mexico, a large number of diseases, as well as treatments such as chemotherapy and dialysis, are not covered by Seguro Popular. However, the system stands ready to help patients who have conditions whose treatment promises at a moderate cost large gains in terms of longevity and quality of life. The systems successes are clear. Until not too long ago, more than 30 percent of women discontinued breast cancer therapy because at some point they could no longer
breast cancer detection programs. Women can now avoid long trips to the capital.
much fat and sugar and gets insufficient exercise. Many people also smoke. Moving hand-in-hand with these trends is a growing incidence of cancer and chronic illnesses such as diabetes. On the other hand, improved hygiene, education, and vaccination programs have reduced the number of infections. The same trend can be seen in almost all developing countries and emerging economies: fewer infectious diseases, more chronic ones. Economic progress leads to changes in peoples habits and a generally less healthy lifestyle. The WHO estimates that
these have resulted in considerable challenges for the Mexican healthcare system, which is facing an explosion in treatment costs for a range of chronic illnesses as more and more people live to see old age. By contrast, it is relatively inexpensive to prevent, diagnose, and treat many infectious diseases such as measles, malaria and diarrhea. Vaccination campaigns, insecticides, and educational campaigns concerning the advantages of washing ones hands dont cost very much, nor do many antibiotics. On the other hand, the installation and operation of modern imaging equipment requires considerable initial investments. All the same, comprehensive healthcare requires good diagnostic devices, especially when noninfectious diseases are on the increase, as they are in Mexico.
Mexico invests slightly over six percent of GDP in healthcare, which reflects a considerable increase over the past few years. However, in comparison to other countries this is still a low percentage, explains Ortiz during a tour of radiology and imaging departments. In Germany, 11 percent of the GDP is spent on healthcare; in the U.S. the figure is 18 percent. Only about 3.4 million Mexicans out of a total population of over 120 million have private health insurance. For many of them, Medica Sur can be a healthcare provider of choice. We offer patients high quality imaging. Our equipment is the best available on the market. However, it needs to run reliably, which means a minimum of breakdowns. Un-
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Highlights
53 A World of Risks Extreme weather phenomena are challenging the lifelines of many cities and energy systems. Protecting these lifelines and making them crisis-proof is one of the most important tasks of the future. Solutions range from smart and robust power grids in the U.S. to new energy supply concepts for entire countries, such as Japan. Pages 53, 62, 66, 69 How to Keep the Lights on According to the International Energy Agency, fossil fuels will remain important in the future. In order to extract oil from the sea floor, Siemens is developing a power grid that can handle the extreme conditions experienced at depths of 3,000 meters. Renewable energy sources are also gaining in importance and placing special demands on power grids. Pages 60, 64, 69, 71 Resisting Times Ravages Decades after they were commissioned, some Siemens technologies still work as well as ever. One of these is the century-old Comet tram line in the Slovakian region of the High Tatras. Page 78 Datas Appetite for Energy Demand for computing power is increasing, as is computer centers demand for electricity. Siemens is responding with failsafe systems. Pages 80, 82
Resilient Infrastructures | Scenario 2050
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2050
Forty-five years after Hurricane Katrina, 85-year-old
Aaron looks back at the past and tells his granddaughter Melinda how his home town of New Orleans aims to protect itself against extreme storms in the future. An early warning system, levee sensors, and a sophisticated power grid will ensure that the city is more secure and that its inhabitants are warned in good time. He now feels safe and comfortable as he sits on his veranda overlooking the Mississippi River.
Protective Island
Forty-five years after Hurricane Katrina, 85-year-old Aaron tells his granddaughter Melinda how his home town of New Orleans is protecting itself from climate change and future storms and why he wouldnt live in any other city.
Aaron shuffles across the veranda with small, stiff steps. One hand is holding fast to the railing, the other clutches a newspaper. Every afternoon he comes here to read the paper, because here he has the best view of his beloved garden. Bushy dwarf palms cast shadows on the neatly mowed lawn, and blooming hibiscus bushes, lilies, and sunflowers create spots of color everywhere. His
small paradise extends down to the levee, behind which the Mississippi River murmurs. In the distance, the high-rises of New Orleans central business district impressively stretch up into the sky. Aaron notices that the river has risen quite a bit after the storms of the previous week. New Orleans is being hit by storms more and more often. Thats one of the results of cli-
mate change that are especially visible here. The sea level around the city has also risen steadily. However, nothing can faze Aaron any more. After Katrina swept away his parents house, he built a new house for himself on top of the ruins, and he has held the fort here ever since. Aaron unrolls his digital newspaper and downloads the current issue. Today hell start with the local news. An arti-
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How Ideas Mature | Scenario 2050
Resilient Infrastructures | Trends
As Hurricane Sandy demonstrated, disasters can incapacitate vast areas, such as Fukushima (bottom) and New York City.
cle about a new municipal information system immediately attracts his attention. The city government wants to provide citizens with even more precise and up-to-date information about impending storms in the future. In case of an emergency, it also wants to issue customized evacuation plans that are based on a comprehensive database. Its interesting to see just how much data they have access to nowadays, Aaron thinks to himself. They probably also know that right now Im sitting on my veranda and reading the paper. A familiar voice wakes him from his reverie. Grandpa, grandpa, calls his granddaughter Melinda, who has just gotten out of school and is now racing across the veranda to hug her grandfather. Not so fast, sweetie! Im not as young as I used to be, Aaron says, laughing. Melinda smiles and plops down on a chair next to him. Youre right. Today Ms. Mitchell told us all about Hurricane Katrina and what things were like back then. I told her you had experienced everything yourself. So that means you must be very old! Aaron leans back and his face becomes serious, as it always does when he thinks about the catastrophe that occurred 45 years ago. That really was a long time ago, he says. Melinda too has suddenly grown serious, and Aaron senses what shes going to ask next. Grandpa, can something like that happen to us again? Cause we live right next to the river Dont worry about that. A lot has changed since then, says Aaron, pointing to the Mississippi. For example, look at the levees. Thirty years ago they were not just completely rebuilt but also equipped with thousands of tiny sensors. These sensors constantly measure the water level in the river. They also record the water pressure, the humidity in the levees, the temperature, and whether the levees are shifting. City officials can call up the data any time they want. In other words, they know just where the weak spots are and where repairs must be carried out to ensure that the levee remains safe. That means well have no bad surprises if a storm comes. Melinda nods, satisfied. But then she thinks of another question: Grandpa, Ms. Mitchell told us that today there are standalone power systems all over the city. What do they do, exactly? Oh, thats very simple, Aaron replies. Katrina caused blackouts in many neighborhoods. Thats why they couldnt pump the water out of the city. But today weve completely rebuilt our power grid. Let
me explain it this way, Aaron says as he swipes the display of his digital newspaper to put aside the article about evacuation systems. On the display, which is now blank, he starts to draw a series of circles. Imagine that all of these circles are tiny islands, he tells Melinda. These islands generate much of their own power, and they either use it themselves or store it. We are one of these islands too we generate electricity with our wind turbine in the garden and our photovoltaic panels on the roof. We can either sell the electricity we dont use or store it in our battery in the shed. That way well still have power even if the big power plants fail or if the land lines are damaged. Melinda obviously likes the idea of living on an island. So we can make everything ourselves, without depending on anyone else? she asks with shining eyes. Not quite, Aaron says with a smile as he starts to connect the rings with lines. Imagine that theres a blackout in the supermarket and all of the frozen food thaws out, or in an old-age home where the old people depend on important equipment. In that case of course well send our electricity to the places where people need it most. That sounds pretty smart, says Melinda. Her grandfather laughs. Its so smart that other cities now want to learn from us. Dont forget that the ocean is rising and threatening other coastal cities like New York, Miami, and Shanghai. The authorities want to protect the people living in such places and prepare them more effectively against the storms, which keep getting stronger. Melinda is thinking about everything she has heard and learned about the levees, the islands, and the many people who died during the storm or fled the city and never came back. Grandpa she says and briefly hesitates. Why didnt you just move away after Katrina? Now its Aarons turn to hesitate. His gaze once again sweeps over the garden and over the citys skyline, which has changed so much in recent years. Dark storm clouds are piling up in the distance, and he can hear a deep, faraway rumbling. He thinks of his friends of former times those who moved away, and also those who came back and built up a new life, just as he did. He also thinks of his family, his children and grandchildren, who fortunately never have had to experience a catastrophe like that one. Maybe its our nature to be a little foolish. But this is my home, thats all there is to it. I dont want to live anywhere else, he says. Nicole Elflein
A World of Risk
In recent centuries, people have increasingly settled in parts of the world that are vulnerable to extreme natural phenomena such as storms, floods, and earthquakes. Whether its a question of tsunamis in Japan or hurricanes in New York, only with the help of smart and robust infrastructures can cities arm themselves against future catastrophes.
$3 billion in the coming 20 years. By contrast, if investments are made in technologies that make the electrical grids smarter and more robust, the damage could be reduced by as much as $2 billion. New York has already taken the first of such measures. Since June 2013, a high-voltage direct-current back-toback link from Siemens has connected the New York and New Jersey grids. Its purpose is to ensure that an additional 660 MW of electrical power flowing from New Jersey via a high-voltage direct-current cable under the Hudson River will reinforce the Big Apples power supply. Meanwhile, grid operators on the U.S. mainland, as well as Hawaii, count on Siemens technologies to make their electrical grids more robust. For instance, Siemens smart network management system helps to instantaneously identify faults within networks, isolate them, and safely reroute electricity, thus avoiding blackouts (p. 58, 62, 69). But a blackout is only the fastest route to chaos. What would happen if, for example, Googles search engine or the online banking system were to break down for a day? Such events could push a citys inhabitants to the limit. Thats why computer center operators rely on Siemens systems to safeguard their power supplies. And thats not all: A Google computer center in Texas even relies on renewable energy sources. Several Siemens wind turbines of the 2.3 MW class supply it with power (p. 84). Renewable Energy in Japan. Similar threats are being faced around the world. Long-term statistics compiled by Geo Risks Research at Munich Re document the fact that, in addition to the U.S., there is another region that is especially vulnerable: Asia-Pacific. Around 40 percent of the natural disasters that have occurred since 1980 have hit this region. One event in particular caused the world to hold its breath: the mega-disaster in Japan in March 2011, in which a severe earthquake and a tsunami claimed some 16,000 lives. In addition, they brought the Fukushima Daiichi nuclear power station to the edge of a nuclear inferno. Today only two nuclear reactors are in operation in Japan, which used to draw a third of its energy from nuclear power plants. Until recently, the country operated 54 such plants. Even though Prime Minister Shinzo Abe argues that the countrys nuclear power plants should be switched on again, Japan intends to significantly expand its renewable energy sources. According to the Japanese Wind Energy Association, the country plans
Short-lived mayflies can only dream of old age, but the Antarctic giant sponge Scolymastra joubini seems to have laid claim to a kind of immortality. It can live to be 10,000 years old. Researchers attribute its longevity to the fact that it consumes little oxygen and thus has a very slow metabolism. In effect, the sponge grows in slow motion. Then too, it lives in ice-cold temperatures. It is one of the creatures that has learned over centuries to adapt to its environment. Like the giant sponge, human settlements are long-lived organisms. However, not only do they represent a growing proportion of the worlds population, but they are poor learners when it comes to adapting to their
environments. According to the United Nations, 1.2 million people died from the effects of extreme weather between 2000 and 2012. According to British economist Lord Nicholas Stern, the damage caused by the end of this century could reach 20 percent of the global gross domestic product, says Prof. Peter Hppe, Head of Geo Risks Research at Munich Re, the worlds largest reinsurance company (p. 56). He adds that North America is particularly at risk: In the past 30 years, North America experienced almost a fivefold increase in the number of harmful events. One of these events was recently experienced by New York City. At the end of 2012, Hurricane Sandy caused a blackout that shut
off the lights of the famous skyline. Only a tiny speck of the metropolis was spared: Coop City in the Bronx. When Sandy hit New York, a 40-megawatt (MW) combined cycle power plant from Siemens continued to supply Co-op Citys 60,000 inhabitants with electricity and hot water (p. 53, 73). The key element here was a micro-grid a substantially independent electrical network. In 2013 Siemens helped to create a scenario for New Yorks electrical grid in cooperation with the New York City Planning Department and the Arup consulting company. According to this scenario, if no protective measures are taken, the costs resulting from natural disasters such as Sandy could rise to
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Resilient Infrastructures | New York City
New York was briefly knocked out by Sandy. Now, the city is equipping itself against future disasters.
to boost its installed wind power output from todays level of approximately 2.6 gigawatts (GW) to 11 GW by 2020. By 2050 Japans wind power output is to increase to around 50 GW. Some of the best locations for generating electricity from wind are in Hokkaido, in the northern part of the country, says Shoji Kobayashi, Deputy Director of the Planning Department of the Environment Authority of Tokyos city government. Japan is one of the most attractive markets for wind energy in the Asia-Pacific region, adds Kay Weber, CEO of the Asia Pacific Business Unit of Siemens Wind Power. Starting in the summer of 2014, six gearless wind turbines from Siemens with an output of 3 MW each are to enter service on the northwest coast of the Japanese island of Honshu (p. 66). A Dragon in the Earth. Power is also being tapped from deep within the earth. According to the Japanese Department of the Environment, the country could potentially harvest 34 GW of power from geothermal
Siemens researchers are also working on an improved real-time evaluation process for the sensor data generated by turbines and locomotives. The resulting information helps to determine mechanical loads, predict breakdowns, and identify problems before a structural component breaks down (pages 74, 80, and 82). Europe too is rapidly adding renewable sources to its energy mix. For example, in its national energy plan Italy has set itself the goal of increasing the proportion of renewables from five percent today to 17 percent by 2020. However, when unreliable energy sources such as the sun and wind are connected to the power grid, fluctuations in supply are inevitable. Thats why, in the future, energy storage systems such as Siemens Siestorage could help to ensure a stable energy supply. A Siestorage system is currently in operation at Enel, Italys largest energy supplier. The system has a capacity of 500 kilowatt-hours and an output of up to 1 MW. Our system is
serves on land are waning, and new deposits, for example in the depths of the ocean, must now be tapped at great effort and expense (see Pictures of the Future, Fall 2011, p. 108). With this in mind, Siemens experts in Norway are working on new technologies that can cope with extreme conditions. One of them is a reliable power supply that operates flawlessly even at depths of 3,000 meters below sea level (p. 60). According to the IEA, the growing demand for petroleum has resulted primarily from the growth of road traffic, which generates 22 percent of global carbon dioxide emissions, making it the second-largest source of such emissions after electricity generation (see Pictures of the Future, Spring 2013, p. 92). In view of this, it is essential to reduce traffic congestion, develop more efficient drive systems, and cut CO2 emissions. Environmentally oriented traffic management systems from Siemens could help here, as pilot projects in a number of German cities are already demonstrating.
Securing the City

Superstorm Sandy managed to put the City that Never Sleeps in temporary snooze mode last October. In the storms wake, however, this city of eight million is taking measures to ensure its five boroughs are capable of facing the challenges posed by climate change.
Resilient systems are becoming ever more important, whether they are in Hawaii (left), in the deep ocean (center) or in geothermally active areas.
sources; the installed nominal output of geothermal energy in Japan is currently just over 0.5 GW. Theres a problem, however. According to a Japanese myth, a dragon lives deep under Japan. If he is in a bad mood, he spits fire and shakes the earth. In other words, in regions where volcanoes seethe and tectonic plates clash, there is frequent seismic activity. These challenging geographic conditions require specially adapted steam turbines. Consequently, a Siemens team is working on optimized turbines that are equipped with an automatic shutoff system, for example. In case an earthquake occurs, they can be quickly and safely switched into idle mode in order to avoid damage (p. 71).
the first big lithium-ion storage system in Europe, says Uwe Fuchs, Sales Manager for Advanced Power Systems and Storage at Siemens. Its control electronics constantly measure the grid voltage and frequency. Depending on the level of demand, Siestorage either stores energy from the grid or releases it. (p. 64). Investing in Holistic Solutions. According to the International Energy Agency (IEA), fossil fuels will continue to be a key part of the worldwide energy mix for the foreseeable future. Due to their importance for the world economy, they were subsidized to the tune of $523 billion in 2011 30 percent more than in 2010. Nevertheless, petroleum re-
However, experience has shown that these goals can be reached only if cities invest in comprehensive solutions. In other words, technologies of this kind must go hand in hand with the expansion of mass transit systems, carsharing offers, and the development of low-emission vehicles (p. 76). This package seems to be essential, in view of the fact that some 9.5 billion people will inhabit the earth in 2050. Well over 6.5 billion of them will be living in urban centers, and many of them, like people today, will be settled on coastlines and in regions that are plagued by extreme weather events. It will then be even more important than it is today to have infrastructures that are as robust and efficient as possible. Hlya Dagli
Union Square is usually bustling. On a typical day, swarms of subway commuters pass by at a brisk pace. University students make use of the park during a break between classes. Street performers of all sorts demonstrate their varied talents, while young children play chess on the sidewalk. Businessmen and women pause for a breath of fresh air or a smoke. Tourists wander past in a steady stream, absorbing the vibrancy of the atmosphere, and perhaps snapping a few photos. When New York University student Alyssa Torske and some friends ventured out of their dorm the evening after Superstorm Sandy hit the Big Apple, Union Square had changed. The city was dark. There were no cars. No people, either. Road signs, ripped from their
steel poles, and tiles and branches littered the ground. The only sounds to be heard were the screaming wind and emergency sirens. The dark and lifeless streets resembled what one would expect the effects of a zombie apocalypse to look like like in the film World War Z, recalls Torske. Superstorm Sandy took the lives of 41 New Yorkers. The storm left over 800,000 New York City residents without power. A four-meter-high storm surge swept 500 million tons of seawater over the edge of the citys waterfront, inundating Lower Manhattan. Flooding damaged bridges, tunnels, and roads, and the subway system was out of service for nearly a week. Businesses were forced to shut down. The New York Stock Exchange was closed for two consecutive days.
And the cost? Approximately $19 billion in damages and lost economic activity. Sandy was unprecedented. Nevertheless, in recent years, NYC, comprising the boroughs of Manhattan, Queens, the Bronx, Brooklyn, and Staten Island, has been experiencing an increase in extreme weather. There was Hurricane Irene in August 2011. Tornadoes have been whipping the city more frequently since 2007. And, increasingly, summer heat waves are lasting longer (p.56). The hottest year recorded in United States history was 2012. And scientists warn that average temperatures will continue to increase. According to experts convened by Mayor Bloomberg, sea levels in the region could rise by more than 75 centimeters by 2050. The number of New Yorkers living in
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Left: An HVDC back-to-back link will stabilize power grids in New York City and New Jersey. Right: Co-op Citys combined heat and power plant.
Siemens is helping to make One World Trade Center (left) and the New York Metro more resistant to system failure.
designated flood zones is thus expected to more than double to 800,000. In the same time frame, the percentage of the citys power plants in vulnerable regions will soar from 53 to 97 percent. In 2050, a storm like Sandy would take a $90 billion bite out of the Big Apples budget, predicts global reinsurer Swiss Re. Sandy demonstrated New Yorks need to enhance the resilience of its infrastructures. In order to achieve this goal Mayor Bloomberg released a $20 billion plan to invest in resilience measures to fortify NYC. The report outlines plans for improved building codes to protect critical infrastructures and investing in flood protection measures such as floodwalls, levees, and bulkheads, to protect the citys 520 miles of coastline. Piece by piece, over many years and even decades, we can build a city thats capable of preparing better, withstanding more and overcoming anything, the Mayor said. Giant floodwalls will help keep water out of the city, but building resilience also requires investments in technology to allow for
more redundancy, communication, decentralization, and quicker response times during an emergency. NYC is working with Siemens on a range of resilience-building projects. One major project that has already improved the NYC areas resilience is Siemens high-voltage direct-current (HVDC) technology, which can transmit electricity over long distances in a low-loss manner. An HVDC back-to-back link supplied by Siemens has been connecting New Jerseys electrical grid to the Big Apples grid since June 2013, providing an additional 660 MW of power to the city as needed. While there are existing transmission interconnections between the NJ grid and NYC, the back-to-back link facilitates both additional capacity and quick response functionality. In other words, it can stabilize both grids and reduce the risk of blackouts. A similar project was completed in 2007, when Siemens supplied an HVDC transmission link to help stabilize Long Islands power supply. Since then, Long Island has been getting 20 percent of its energy from NJs grid, benefit-
ting from access to diverse, lower-cost energy, including renewable energy. One World Trade Center (1 WTC), when it is completed in early 2014 will be a shining example of resilience-building technology. The Centers electrical power distribution system from Siemens, including 1,443 meters of space-saving Sentron Busway instead of conventional power cables and conduit, as well as circuit protection, will help to ensure that the energy supply for the citys tallest building is stable and secure. In addition, it will be possible to immediately switch the power supply off in the event of an overvoltage. Siemens switching technology has also been installed in 1 WTC and the train station that serves the new World Trade Center has been equipped with low-voltage switchgear and automation technology that will operate the buildings emergency ventilation system even under critical circumstances. Intelligent Power Grids. Sandy put tremendous strain on NYCs electrical grid, knocking out power in most of Lower Manhattan for days, and in some neighborhoods for weeks. In Alyssas case, no power meant several days of no lights, no heat, no running water, and 20-story treks to her dorm room. Other critical facilities were also affected. Failed emergency generators forced major hospitals such as New York Universitys Langone Medical Center and the Bellevue Hospital Center to evacuate hundreds of patients. But one community was better prepared: Co-op city, a housing development in the Bronx. The community relied on its own 40MW combined heat and power plant (CHP), installed by Siemens, to keep things running during the storm. Thanks to this solution, residents had electricity, heat, and running water, while much of the surrounding areas were without power. Co-op city was able to
The Hard Facts about New Yorks Natural Disasters

Damage to the Metro grid of New York, according to an NYC Metro Grid investigation
2010: Tornadoes, 200 km/h winds
2011: Heat wave, temperatures up to 40 C
Event
Source: Hazards and Risk Review, NYC Metro Grid
2010: Blizzard 100 km/h wind gusts, 50 cm snow

Year
Sandy 4-meter-high storm surge, 130 km/h wind gusts 2012 Over $400 million damage to power grid
2010
2011 Outages, closure of subway lines
Damage and power loss: 45,000 customers affected
Outages: 139,000 customers affected
Costs/ damage
depend on its own micro-grid to keep the power on. In the future, intelligent grids should prove to be just as reliable. Since August 2011, Siemens has been working with Con Edison, NYCs largest utility, on a Smart Grid Integration project. Thanks to special integration software, standardized data interfaces, and sophisticated visualization technology, Con Edison employees can gain an overview of the grid situation and the capacity of available demand response resources, such as back-up generators. Whats more, the information is available in real time. As a result, the operator can quickly decide whether load relief is necessary. If demand peaks on a hot summer day, for instance, the operator is able to send a targeted curtailment request to a demand-response asset, such as a commercial building. Together with Con Edison, Siemens is currently working on an extension of the solution. According to Mayur Rao, who manages the Enterprise Integration and Cyber Security Services group within Siemens, NYCs grid would benefit from improved demand-response integration and enhanced diversification of electrical generation capacity, which could mean greater integration of renewable energy. Manhattans infrastructure can be expanded only so much. Integrating more demand-response-based Smart Grid sources to meet growing demand and relieve grid overloads is important, Rao said. A day without power would cost NYC $1 billion, according to the RUI Report, which was drawn up in 2013 by Siemens, the Regional Planning Association, and the Arup consulting company. The same study calculates that the cost of repairs to the citys electrical grid from storms like Sandy could total $3 billion over the next 20 years. Investing the same amount in smart technology, however, would
reduce this by $2 billion, as well as generate $4 billion due to higher efficiency. NYC Subways: Riding on Technology. A robust infrastructure is also necessary when it comes to getting from place to place. Gwen Shockey lives in a part of Manhattan that is close to Harlem. She needs to get to Midtown, where she works as a medical illustrator, every day of the week. To make the commute, Gwen relies on the subway. When subway service was suspended as a result of Sandy, Gwen was unable to get to work for a week. It made me realize how insanely dependent I am on the subway, she said. Gwen is one of some 5.7 million people who rely on NYCs subway system daily. The system, which entered service over 100 years ago, is one of the oldest in the world and
moved ahead of time if there is a flood alert, as was the case during Sandy. Another technology from Siemens that was put into service in 2008 now controls one third of the subway system by tracking up to 220 trains simultaneously in real time. The greatest advantage of the technology is the information it provides. As a result, operators can closely monitor events and respond quickly in an emergency for example, by evacuating a train in a tunnel or re-routing trains away from affected lines. These technologies work together to create a communicative, centrally controlled system that is prepared for hazardous situations. How can NYCs subway system be made even more resilient? Paul Eliea, who manages Rail IT projects at Siemens Mobility in New York, believes that a centrally-controlled
A one-day power failure in New York cost an estimated $1 billion money that would be better spent investing in intelligent infrastructures.
must continually be upgraded. Since 1999 Siemens has played a major role in this process. For example, the L line, which runs between Chelsea (Manhattan) and Canarsie (Brooklyn), now uses train control technology from Siemens. This radio-based signaling system allows trains to communicate with one another and with the control center. This system makes it possible to increase train frequency. The technology also reduces the need for trackside equipment and uses a fiber optic network for communication with critical wayside equipment. This results in higher resilience because the equipment can be placed in safer locations. Radio equipment that is located along the track can be rethreat detection system could be a key element to a system-wide solution. As water enters the system in any operationally-significant quantity, sensors will indicate the problem in a control center and provide real time information that makes it possible to observe how the situation is developing, he says. All of this shows that top-performance and robust technologies are playing an important role in stabilizing NYCs critical infrastructures, from its electrical grid to its transit system. And on a smaller scale, its residents are also making resiliency investments. After the storm I bought a fold-up bicycle, says Gwen. Now I have my little bike so Ill never be stuck again. Sara Sauer
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Resilient Infrastructures | Interview
In recent years, the U.S. has experienced superstorms Sandy and Katrina, and Germany has seen severe flooding once again in 2013. Are these once-in-a-century events now occurring more frequently or is the media merely covering them more extensively than before? Hppe: There can be no doubt that more information about extreme weather phenomena is available today via the Internet and mass media. As a result, we have the feeling that such events are becoming more frequent. However, its also clear that
increase in severe weather events that can only be explained by changes in the atmosphere. Are weather patterns becoming less stable because the atmosphere is getting warmer? Hppe: Climate change is defined by the change in average global temperature. The damage we see mainly results from the fact that a warmer climate means warmer oceans. For example, the ice sheet in the Arctic Ocean melts significantly in the summer. In 2012 this ice cap receded to an ex-
masked by other anthropogenic processes, such as the particulate emissions that caused the pollution. What has been happening during the past ten years? Hppe: Global temperature is not increasing as sharply now as it did in the 1980s and 1990s. Weve experienced a disproportionate number of La Nia events in the past decade. La Nia and its opposite condition, El Nio, are phenomena of the southern Pacific, but they have an impact on nearly every part of the world. These are
teractions involved make all of their theories somewhat uncertain. Can fluctuations in solar radiation have a significant effect on temperatures? Hppe: Solar radiation is subject to cycles; the shortest last around 11 years. Were currently in a phase of maximum solar activity, which is nevertheless very weak. Solar cycles have very little influence on average global temperature; they account for less than 0.1 degrees Celsius. Studies have also shown that even if this low level of solar activity continues during the next few
years. We will also see an increase in thunderstorm activity in the summer. On other continents, climate change will primarily have an impact on tropical storms for example, hurricanes in the U.S. and typhoons in Asia. There are clear indications that these storms will become more extreme due to climate change, which will cause them to gather more energy from the higher levels of water vapor in the air. That doesnt mean they will necessarily become more frequent, but it does mean that the share of very severe storms as a percentage of all storms will increase.
As CO2 Levels Increase

Professor Peter Hppe, 59, studied meteorology and human biology and obtained a Ph.D. in physics. Prof. Hppe currently serves as Head of the Geo Risks Research / Corporate Climate Center at Munich Re, the worlds largest reinsurance company. He previously held several positions in the fields of bioclimatology, applied meteorology, and occupational and environmental medicine at Ludwig Maximilian University in Munich. Dr. Hppe has also conducted research at Yale University in the U.S. and at the University of Natural Resources and Life Sciences in Vienna, Austria. He has served as a member of the Global Warming Advisory Board of the Bavarian State Government since 2007.
weather events that do a lot of damage are in fact on the rise. According to our global database of natural disasters and the damage they cause, the number of extreme weather events has roughly tripled over the last 30 years. Particularly significant is the increase in floods. There has also been a slightly smaller increase in storms; since 1980, the number of storms has increased by around 250 percent. On the other hand, there has been no significant increase in geophysical events, such as earthquakes, volcanic eruptions, and tsunamis. Can all of this be blamed on climate change? Hppe: We cannot categorically say that a certain weather event was caused solely by climate change. Nevertheless, its true that weather conditions have been continually changing over the last 30 years. These changes cannot be explained by pointing to a natural climate cycle or at least not to any cycle we know about today. In other words, there are strong indications that man-made climate change is playing a role here. Other factors are involved as well; they include population growth and the movement of more and more people into areas that are susceptible to extreme weather events. But even if you take these factors into account, youre still left with an tremely low level, far below what had been expected. Changes in ocean surface temperatures lead to greater evaporation, and this water vapor is what revs our global weather machine up a notch. The whole system now has more energy, because the vapor releases its evaporation heat when it condenses and forms clouds. This energy is the fuel that drives tropical storms, severe thunderstorms, and heavy rains. There are indications that the increase in global temperature has paused during the last 15 years. How is that possible? Hppe: Were dealing with a complex system in which several natural climate cycles are interacting with a more or less linear increase caused by humans. This means there are repeated phases in which the anthropogenic increase is not discernible, or in which global temperatures actually decline slightly over a period of several years. In some cases this decline is due to other anthropogenic influences. For example, the decrease in average global temperature in the 1960s and the early 1970s is usually attributed to the high levels of air pollution during that period. Smog above Europe and North America blocked some solar radiation, thereby triggering a slight cooling effect. As a result of this, many countries then introduced more stringent environmental legislation and air quality improved. In other words, the increase in temperature was
Extreme Weather Events Proliferate

natural fluctuations in which water upheavals either lead to colder (La Nia) or warmer (El Nio) ocean surfaces. The La Nia years result in a slight decline in the average global temperature. However, there are increases from one La Nia year to another. Last year was actually one of the warmest La Nia years on record. In other words, weve had a situation in which natural climate cooling cycles overlap with the anthropogenic increase, and thus conceal it. When this La Nia cycle ends, we can expect to see global temperatures rise once again. In short, the oceans have a major impact on the weather we experience? Hppe: Yes. Some studies show that the worlds oceans have absorbed more heat during the past few years than ever before. That means part of the excess energy produced by humans has made its way into the oceans. As long as this continues to take place, it offers us an advantage at the moment, because it means the atmosphere isnt warming up so quickly, and that slows down the processes caused by global warming. However, the heat still remains in the system its just stored in the oceans. When warmer water from the lower depths rises to the surface, it will release this heat back into the atmosphere. So you can gain some time, but theres no way to stop the overall process. Still, there are some question marks surrounding all of this. Climate researchers are aware that the complex indecades, its impact will be marginal. Basically, a low level of solar activity will never be able to offset global warming. How many severe floods and storms similar to Sandy can we expect to see in the future? Hppe: Thats difficult to predict. Its very clear that a lot has changed in North America in the past 30 years. This is the continent with the biggest increase in extreme weather events that cause severe damage. Damaging weather events have increased nearly fivefold in the past 30 years in North America. That includes all kinds of extremes, ranging from snowstorms to forest fires, tornados, tropical storms, flooding, and droughts. Tornados are more common in the U.S. because there are no mountain ranges to keep cold Arctic air and warm subtropical air masses apart, as is the case in Asia and Europe. North America is thus a climate change lab where you can see the effects of change in their most extreme form. What should people in Europe and Asia be worried about? Hppe: After South America, Europe has recorded the lowest increases in extreme weather events. These two continents will mainly experience an increase in heat waves and droughts, although there will also be more heavy rainfall. This is already apparent. One study has found that onceevery-50-year floods will become onceevery-20-year floods over the next 30 What is the extent of damage predicted for the rest of the century? Hppe: The damage will remain manageable in Europe; the insurance system will be able to handle it. Experts believe the cost of damage caused by summer storms in Germany will increase by around 30 percent over the next 30 years or by one percent per year. The situation will be different in regions where the climate is already unstable. For example, there are concerns in India that climate change might fundamentally alter the nature of monsoons. More specifically, it would be a huge catastrophe if monsoons were to become more extreme, or not occur at all. The British economist Lord Nicholas Stern estimates that global damage caused by extreme weather events could total up to 20 percent of gross world product by the end of the century if we dont take ambitious measures to fight climate change. At the moment, it doesnt look as though well be taking such measures. People in developing countries are suffering the most, because the climate is already extreme in many of these nations. Even slight changes could therefore threaten the survival of entire populations. In addition, people in these countries dont have the means to make necessary adjustments. The Munich Climate Insurance Initiative (MCII) that weve established is making insurance solutions part of climate negotia-
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Resilient Infrastructures | Facts and Forecasts
tions, and such solutions can help developing countries make adjustments. What else can affected regions do in order to be better prepared? Hppe: Even if very ambitious climate protection measures were established tomorrow we would not be able to prevent climate change at this point. We can only slow down the process and adapt to the changes we expect to see. A lot needs to be done in terms of flood protection measures, for example. We also need to establish heat wave warning systems and invest more in building management and air conditioning systems in places such as hospitals and senior citizen homes. Youll recall that 70,000 people died during the massive heat wave in Europe in 2003. The U.S. should tighten its building codes in a way that will ensure better protection in storms. In addition, people should be discouraged from building houses near the ocean, where special buffer zones should be established instead. If I were to fall asleep and wake up in 50 years, what kind of world would I find in 2063 if global warming continues at the present rate? Hppe: If you woke up in Germany, the first thing youd want would be an air conditioner, because extreme heat waves like the one in July 2003 would have become the norm in Europe. The temperature distribution in July 2003 was a weather event that used to take place around once every 500 years. However, current climate models project that the probability of a summer like the one in 2003 will increase so much by mid-century that we can expect it to occur once every two or three years. Things would be worse in southern regions, where climate change is already making agriculture more difficult. If things dont change much in these regions as well, the survival of whole populations could be endangered over the long run, and many people will be forced to flee. They will head to places where the quality of life is still relatively good. That in turn will lead to political tension and security problems in the regions they travel to. Food production is also a major issue, as crop cultivation will migrate away from the U.S. and toward Canada, for example. Russia could benefit greatly from climate change. It might become the breadbasket of the world due to its huge land mass, most of which isnt being used for farming today because its too cold. Interview by Florian Martini.
A Growing Spectrum of Risks

Urban infrastructures are increasingly facing challenges as a result of weather-related disasters, cyber attacks, and a broad spectrum of other hazards. According to calculations carried out by Munich Re, a reinsurance company, natural disasters caused economic damage totaling $160 billion worldwide in 2012. About 67 percent of this damage occurred in the United States. The disasters included a major drought in the Midwest, several tornadoes, and most importantly, Hurricane Sandy, which caused $50 billion in damage. According to the respective regional authorities, in 2011 earthquakes resulted in reconCyber attacks are also being increasingly recognized as a threat to major cities. For example, in a recently published study called Global Corporate IT Security Risks, IT security supplier Kaspersky Lab concludes that cyber attacks against major companies with more than 1,500 employees in Europe result in direct costs of 495,000 on average per attack. That includes the costs of filling security gaps, eliminating disruptions, and installing appropriate preventive measures, which cost 63,000 on average. For small and medium-sized companies, these costs can amount to as much as five percent of annual turnover.
cording to an analysis conducted by ARUP and Siemens in 2013. A 2012 study carried out by Frost & Sullivan concludes that industry and governments will have to continue working together closely in the future in order to develop new systems. A city with inadequate flood protection will find it increasingly difficult in the future to find new investors and new business opportunities, says Steven Webb, Vice President Aerospace, Defense & Security at Frost & Sullivan. It is therefore crucially important that the relevant authorities and decision-makers receive the information they require in good time. That requires high-quality data analyses in real time and the use of these analyses for simulations and forecasts. New sensors, analytic processes, and models help decision-makers to identify potential floods and assess their possible effects. At the same time, faster com-
munication and dialogue-capable networks enable early and effective reactions. According to a 2012 Frost & Sullivan study, investigation should focus on the stability of dams and dikes and the monitoring of water levels in rivers and water reservoirs. Progress in the performance of sensors and decreasing prices will lead to greater use of more powerful sensors in regions at risk of floods. One example of this is the EU-sponsored Urban Flood project (Pictures of the Future, Fall 2012, p. 96). In this project, sensors are being used in Boston, UK, to identify changes in temperature, humidity, and movement of the ground and thus to provide information about possible instability within flood protection systems. San Francisco has had to deal with the consequences of six massive earthquakes over the past 100 years. In the period up to 2016, about $4.6 billion will
be invested in the renovation of the Bay Citys water system, which includes dams, reservoirs, pipelines, pumping stations, and water processing facilities. The goal of these steps is to create an integrated system that will remain relatively intact in the event of an earthquake and will be capable of delivering water to 2.4 million people. Houston, Texas reacted to Hurricane Ike with measures that included a pilot project to enable communication between traffic lights and vehicles in order to organize necessary evacuations more smoothly and quickly in the future. Here, data from smart phones in vehicles is aggregated in order to receive information in real time about the number and speed of the vehicles on the streets. During a possible evacuation, drivers will receive data via their smartphones so that they can choose the fastest route to safety (Pictures of the Future, Spring 2011, p. 91). Sylvia Trage
The Growing Impact of Climate Change on GDP

Losses to GDP (e.g. interruptions in production) in % due to climate change
1
Growing Incidence of Natural Disasters

Estimated damages due to hazards (in billions of US$)
Expected Increases in Natural Disasters

Flooding
Source: EM-DAT: The International Disaster Database, 2013
200 Today Scenario 2030 10 8 12 Florida n/a 9 5 Guyana 3 2 India 0 Tanzania 2 4 1 19 1

Source: McKinsey, Shaping Climate-Resilient Development, 2009
Hurricane Katrina
Drought
Heat Wave
Storms
(noreaster, hurricane)
180 160 140 6 2 China 120 100 80 60 40 20 year 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Earthquake in Kobe
1 in
Historical trend (19702000)
1 in
1 Storm per year
UK
100
years 1 in
100
years unclear
2 8
per
years more often
Mali
Expectations for the future
years
15
per year
Samoa
The Biggest Natural Disasters of 2012: USA and Asia Hit Hardest
Natural disasters Selected significant natural disasters Severe storms USA April 2829 Severe storms USA June 28July 2 Flooding United Kingdom November 2127 Winter storm Andrea Flash floods Europe Russia January 56 July 68 Cold snap Cold snap Eastern Europe Afghanistan January JanuaryMarch February
Based on analyses of selected regions in each of the countries (i.e. Mopti, Mali; Georgetown, Guyana; Hull, GB; northern and northeastern China; Maharashtra, India; central regions of Tanzania; southeastern Florida, USA) and on worst case values that studies and experts consider to be possible for the year 2030.
struction costs of eight to nine percent of the gross domestic product in New Zealand and about 220 billion in Japan. These disasters impressively demonstrate the kinds of events we will probably have to deal with more frequently in the future, explains Prof. Peter Hppe, Head of Geo Risks Research at Munich Re. He points out that in the future there will, for example, be more droughts in North America and more tornadoes in the northern part of the U.S. East Coast. According to a recent analysis carried out by University of Tokyo scientists, Southeast Asia, India, East Africa, and South America may be affected more often by floods in the future. According to UN calculations, the number of people exposed to flood risks in East Asia alone will grow from 18 million in 2000 to between 45 and 67 million in 2060.
However, many cyber attacks can be avoided if companies take early preventive measures. Examples of such measures include investing properly in secure software as well as hardware and training programs for employees. The extensive damage due to weather-related disasters shows that greater preventive efforts are necessary, says Torsten Jeworrek, a member of the Munich Re Board of Management. Here, cost-benefit analysis is an important aid to decision-making. It compares the costs of potential damage and losses with the costs of preventing or minimizing damage. For example, the Thames barrier in London that was built in 1953 after a flood cost the present-day equivalent of five billion British pounds. Without this measure, a new flood would cause damage costing about 30 billion British pounds six times as much ac-
Hail, severe storms Canada August 1214 Drought USA Summer Severe storms, tornadoes USA, March 24 Flooding Columbia MarchJune Geophysical events (earthquake, tsunami, volcanic eruption) Hydrological event (flooding, landslide) Climatological events (Extreme temperatures, drought, forest fires) Meteorological events (Storm)
Hurricane Sandy USA, Caribbean October 2431
Hurricane Isaac USA, Caribbean August 2431 Earthquake Mexico, March 20
Flooding China July 2124 Earthquake Italy May 2029 Typhoon Haikui China August 89 Typhoon Bopha Philippines December 45
Total:
905 disasters
Flooding Nigeria JulyOctober Flooding, hail South Africa October 2021
Flooding Pakistan September 327 Flooding, flash floods Australia JanuaryFebruary Flooding, flash floods Australia FebruaryMarch
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Source: Mnchener Rck, Illustration: Spiegel Online, 2013
Earthquake Iran August 11
Source: NYC Panel on Climate Change 2009, ClimAID, NYSERDA, 2012
Frequency of occurrence for New York City
Resilient Infrastructures | Subsea Technology
Self-sufficient oil and gas extraction factories on the ocean floor will start up by 2020. A Siemens grid could provide them with power.
Resilient Infrastructures | Subsea Technology
Research in Uncharted Waters

At a unique lab in Trondheim, Norway, Siemens researchers are examining how power network components behave when subjected to extreme water pressures. In 2020, such a system will begin supplying energy to large oil and natural gas production sites at a depth of 3,000 meters.
test the components for a power network that will supply energy to future deep sea factories. Beginning in 2020, the Norwegian energy company Statoil plans to use such self-sufficient oil and gas extraction factories on the ocean floor. Siemens technology will supply the pumps and compressors with electricity. By then, individual network components will have to demonstrate that they can withstand the extreme conditions found at depths of at least 3,000 meters under the sea. This is a huge challenge, as researchers have had no experience with network components at such depths, where they will have to withstand 300 kilograms of pressure per square centimeter in perpetual darkness. Transformers, frequency converters, and switchgears have to operate flawlessly in such environments. Whats more, they have to do so for 30 years, because it would be difficult to service them down there, says Lystad. Only if electricity flows with absolute reliability will it be possible to relocate todays production platforms to the ocean floor. Operating on the Ocean Floor. Such selfsufficient deep-sea factories with their own power supply systems are not yet available. Although there are already a few facilities that operate on the ocean floor, they are connected to floating platforms and have to be individually supplied with electricity through dozens of cables (Pictures of the Future, Fall 2011, p. 108). And the raw materials that the facilities pump out of the ground are still processed on the surface as well. Subsea technologies currently work only in shallow waters. Moreover, they are expensive and complex. As a result, the majority of the oil and natural gas produced offshore today is still pumped by traditional production platforms. Only a small percentage is extracted
directly on the ocean floor. Lystad believes that in the future this ratio will be reversed. The trend is toward previously unexploited deposits in the deep sea and the Arctic, which are difficult to reach with conventional technology, he says. Self-sufficient underwater factories would thus make sense in such areas. Although conditions on the ocean floor are extreme compared to those on the surface, they are also stable. Temperatures stay at around 4 C and there are no storms or icebergs, Lystad explains. This makes deep-sea facilities much less prone to faults and more cost-efficient than conventional systems. Their only connections to the surface would be a power cable and a pipeline, which could
each door hangs a laptop showing diagrams and rows of numbers on its display. One of the doors is open, revealing a silver cylinder in the middle of the cell. Several cables jut out of the ends of a tube that is about two meters long. These are our pressure vessels, says Lystad as he knocks on one of the cylinders. Each cylinder consist of 150 kilograms of solid metal. If we want to test a component, we put it in the cylinder. We then fill the cylinder with oil and seal it shut. The pressure is raised to as high as 460 bar. According to Lystad, the oils purpose is to distribute the enormous pressure. Before the grid component is actually lowered underwater, its entire housing is filled with oil, he
At a depth of 3,000 meters, every square centimeter of a component must withstand 300 kilograms of pressure.
reach land whenever the facilities are not too far offshore. A deep-sea-compatible power supply could also boost a facilitys production capacity for example, by ensuring that many more pumps could be in constant operation. The new technology would enable us to exploit around 60 percent of a reservoir. We cant achieve more than 40 percent with current subsea technology, says Lystad. A soft hum can be heard in the torture chamber. Cables and connectors are clearly arranged on the floor. The researchers have been able to use the brand-new Pressure Test Lab for about a year; previously the building housed an electric heating system factory. After donning protective goggles, Lystad walks slowly through the hall. Next to him is a series of 19 reinforced concrete chambers. Each of these small cells has a blue metal door. On says. This allows us to make the system more compact than conventional air-filled containers. Whats more, we wont need any complex cooling systems, since the oil dissipates heat. Lystad walks three steps to the other end of the chamber. The cell surrounding the cylinder is open at the top and serves as a safety barrier. If anything goes wrong during the pressure tests, the energy will escape through the open top and the pieces will fly against the inside wall, he says. Transistors, connectors, and other components are tortured for up to six months during continuous operation inside the tube. The engineers not only check to see if the components can withstand the high pressures and remain functional; they also want to determine if the parts wear out after 20 years of operation. To conduct such an endurance
Jan Erik Lystad says that pressure doesnt bother him much. A glance at the 60-year-old Norwegian engineer, who joined Siemens 12 years ago, makes you believe him. With his jeans, blue checked flannel shirt, and handsin-pockets stance, Lystad looks as though nothing could faze him. He has spent all his life in Trondheim, where he went to college and raised his children. He perfectly reflects the qualities of this picturesque city of 180,000 inhabitants, where meter maids ride
bicycles and continuity is important. However, Trondheims sedate facade hides a veritable volcano of bright ideas and innovations, powered by scientists such as Lystad, dozens of research institutes, and thousands of students at the citys technical university. The epicenter of this volcano is often the Siemens research center in Bratsbergveien, just a few kilometers from downtown Trondheim. In 2012, researchers here developed the worlds first electric ferry. And now another eruption
is imminent, as Lystads lab is literally operating under high pressure (Pictures of the Future, Spring 2013, p. 110). We have a kind of torture chamber for technical components, he says. We put parts under enormous pressure. The technology has to withstand up to 460 bar thats how high the pressure is at a depth of 4,600 meters. However, Lystads unique torture chamber is not so much a place of agony as of pioneering work. In the lab, ten engineers
A transformer that has passed its shallow water test. Before that, its components were tested in pressure vessels (right).
Siemens researchers test deep-sea power network components such as switchgear elements (left) in a pressure test lab in Trondheim, Norway.
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Resilient Infrastructures | Power Grids
A Siemens solution can reroute electricity for power grid operators like PJM Interconnection (above), ensuring supply for customers (below).
test, the engineers equip the cylinder with a heating loop that keeps the temperature at a constant 95 C to simulate the aging process. Once the Siemens experts are done torturing the components, they take the parts out of the pressure vessel and clean off the oil, which is then filtered and reused. This is followed by a mechanical inspection, says Lystad. Basically, we take the components apart and look for tiny cracks or deformations. The technology isnt considered deep-sea compatible until the inspectors cannot discover any faults with their trained eyes. However, Lystad points out that parts are not always up to scratch. Its a major challenge to find components that can withstand such extreme conditions, because no manufacturer offers products that are especially designed for such depths. We are continuously entering uncharted territory. Eternal Darkness. Once all the parts have passed the tests, they are combined into a network component and firmly screwed onto a platform that is covered with zinc plates to protect it from salt water corrosion. Finally the engineers cover the system with a housing. They have already completed their first deep-sea transformer and dipped the huge container into the sea, even though this bath was only a test conducted in Trondheims harbor. Lystad and his team want to finish assembling a 35-ton switching station this year. The half-finished giant stands next to the pressure lab in the hall, looking like a submarine in dry dock. A frequency converter, which ensures that oil pumps or gas compressors are supplied with the right operating voltage, is to be completed by the end of 2014. At that point the assembly will weigh around 100 tons. We will then combine all three components into a single network for the final test, says Lystad. During the test they will be submerged into the seas eternal darkness for the first time. Lystad scratches his beard in satisfaction. Its fascinating to work in regions most people regard as totally inaccessible, he says. He is delighted by his young colleagues progress. Were a big happy family and we work closely with the Norwegian University of Science and Technology in Trondheim. I studied there and so did all my engineers. Continuity and progress also play a big role in Lystads life beyond the Siemens research center in Bratsbergveien. He has a little farm on a small island near Trondheim. He often goes fishing there with his grandchildren and thinks about his other passion: the dark depths of the sea. Florian Martini
Keeping the Lights on

In the U.S., Siemens is helping to create more robust power grids that will be able to better cope with hurricanes, heat waves, and drought. Thanks to unique smart-grid energy management systems, it is now possible to automatically reroute power within seconds of a grid failure.
PJM Interconnection is the largest power grid operator in the U.S. The company manages the transmission of electricity to more than 58 million customers in Pennsylvania, New Jersey, Maryland, the District of Columbia and ten other states. But in late October 2012, the company faced a formidable challenge: Hurricane Sandy. The storm was heading directly toward the north Atlantic seaboard, packing winds of more than 150 kilometers per hour and threatened to leave a swath of destruction behind in New York City, New Jersey, and Pennsylvania. The stakes were high, since PJM manages the transmission of electricity from more than 1,300 power plants to regional operators. If this supply were to break down, customers of local utilities would literally be left in the dark. Hurricane Sandy, in fact, caused enormous damage. The lights went out in eight million households, five million of them in the area covered by PJM Interconnection. More than 140 overhead power lines and transformer substations were damaged, and it took weeks until all electricity connections had been restored.
According to a report published by the U.S. Department of Energy in July 2013, the U.S. faces not only more storms in the future, but also more flooding, heat waves, and droughts. These developments will have an especially severe impact on the U.S. power grid, which encompasses more than 9,200 power plants and almost half a million kilometers (300,000 miles) of overhead lines. The consequences are already visible. Power plants in the arid Southwest often have to cut back electricity production because there is not enough cooling water. Moreover, low levels of water in canals cause ships laden with oil or coal to make only slow headway. While rising temperatures reduce the power grids performance, severe storms disable drilling platforms in the Gulf of Mexico and snap power lines from Florida all the way up to Maine. The associated flooding not only ruins houses but also destroys transformers and power lines. For these reasons, the U.S. Department of Energy has come to the conclusion that the power grid must be fortified against the effects of severe weather.
This assessment is also shared by PJM Interconnection. The company installed an energy management system from Siemens in November 2011 that is designed to provide an overview and control of the electric grid even when failures occur. It employs dual control centers that simultaneously manage the power grid. If one of the centers should break down or lose communications in an emergency, the other one can continue to manage operations on its own. This is exactly how the system functioned when Hurricane Sandy struck, so PJM was constantly aware of conditions in the transmission grid. The innovative grid management system is based on an integration platform developed by Siemens Infrastructure & Cities and PJM Interconnection. Various applications, such as energy, market, and distribution network management systems can be combined on the platform. The advantage of this architecture is that it integrates not only new applications but also old ones with less effort, says Ravi Pradhan, VP of Technology Strategy at Siemens Smart Grid Division in Minneapolis. With the simultaneous operation of two
control centers, the security of the grid is heightened, especially in exceptional circumstances such as a hurricane. Whenever there is an interruption in the grid, the fault has to be quickly offset by rerouting electricity or feeding power from alternative energy sources into the network. However, the location of the disturbance must be found first, and this can take time. The associated risks are particularly high for hospitals, which is why smart grid applications can be helpful for them as well. Every Second Counts. The Riverside Shore Memorial Hospital is the only medical center in the Nassawodox region of eastern Virginia. Until recently, whenever the region had a power outage, technicians needed up to an hour to locate the fault. The regional power company A&N Electric Cooperative has now installed a Siemens smart distribution feeder automation system (SDFA) that allows the grid to reroute electricity within a fraction of a second after a power outage has occurred. Whenever there is an interruption in the grid, relays from Siemens that are equipped
with sensors and located in the affected segment detect the fluctuation in the line current. This enables the system to localize the fault area within 100 milliseconds and reroute the electricity in less than half a second. In this way, the system can easily mitigate a power outage caused by storms or other external factors. Most power outages are so short that our patients dont notice them, says Michael Canales, who manages the hospitals infrastructure. Our employees can focus on patients, rather than constantly checking to see if the equipment is working. Cities too need to ensure uninterruped power. New York City, for instance, is reviewing its plans for protecting infrastructures against storms. A description of how this can be accomplished for the greater New York area can be found in the Resilient Urban Infrastructure study, published by Siemens in 2013 in cooperation with the Arup consulting company, and the Regional Plan Association (RPA), an independent urban research organization (p. 53). According to the study, New York will need higher dams and levees to protect critical infrastructure systems such as power plants, transformer substations, and switchgear so that the city does not suffer a power outage lasting days when the next hurricane strikes. The report also recommends the use of gas-insulated switchgear units. They take up much less space than air-insulated ones, making it easier to protect them in water-repellent containers. Because they are smaller and lighter, they can also be installed above ground. However, it would of course be even more effective to remove important facilities from flood zones altogether in the long run. This is a major concern, since 18 of New Yorks 61 transformer substations are currently located in high-risk areas. In densely populated Manhattan this may not be an option, but in other boroughs such as the Bronx and Queens it could help to make the grid more resilient. New York could also stabilize its electricity network by introducing a smart grid. By providing customers and electricity suppliers with detailed information, electric meters might reveal ways in which power consumption could be reduced. This is particularly important in times of high demand, such as heat waves. As part of the CoolNYC pilot project, some households are already using smartphones to remotely regulate their air conditioners. Companies can do the same. This would not only lead to cost savings but also improve the grids long-term resilience. Hubertus Breuer
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Resilient Infrastructures | Energy Storage
Siemens and energy provider Enel are testing lithium-ion storage units to store surplus PV electricity in Italy.
Resilient Infrastructures | Energy Storage
Finally, there are the energy storage systems that everyone knows: batteries. Lithiumion cells are currently the best batteries for stabilizing distribution grids because they combine high storage capacity with high charge and discharge rates. If load volatility should occur in the grid, such batteries can take in or dispense power within milliseconds, thus balancing out fluctuations in voltage and frequency. Unlike pumped-storage units, batteries only have to make their power available for a few minutes for example, if temporary cloud cover reduces output at PV facilities connected to a subgrid. Stable Grids with Battery Systems. Siemens began developing energy storage devices several years ago. Siemens Energy Storage (Siestorage) is a modular system that links high-performance lithium-ion batteries with power electronics for connection to the electricity grid. The system enables us to stabilize both low-voltage grids of 400 volts and distribution grids with ten to 30 kilovolts, says Fuchs. The batteries and the control electronics are slide-in units housed in cabinets that can easily be integrated into climate-controlled containers. One such container was placed in the city of Isernia in the Molise region of Italy in February 2012. The area is home to a large number of PV facilities connected to the Enel dis-
Bottled Sunlight
The use of renewable energy requires astute handling of available energy supplies. This is the only way to keep the grid stable and ensure that power is restored quickly after a blackout. Siestorage, a new energy storage system from Siemens, offers a potential solution as is being demonstrated in a pilot project Siemens is conducting with energy provider Enel in Italy.
tribution grid. Our system has the first lithium-ion storage device in Europe; it serves as a powerful energy storage device for the distribution grid, Fuchs explains. Its control electronics continually measure the network voltage and frequency. Siestorage absorbs or dispenses energy in line with the situation. The system in Italy has a storage capacity of 500 kW-hours and can store and release power in the MW output range. Thats enough to keep the rural subgrid stable, even with the fluctuating output of solar cells. Weve been very satisfied with the tests to date, said Paola Petroni, Director of Network Technologies at Enels Network and Infrastructure division, in the most recent Siemens Sustainability Report. Enel, Italys largest energy supplier, has over 32 million customers and operates and maintains more than one million kilometers of power lines. Our Siemens product can handle fluctuations in electricity production as well as the alternating loads caused by several electric vehicle recharging stations, said Petroni. This ability is mainly due to specialized converters. A great deal of expertise from SIPLINK products (Siemens Power Link) flowed into these devices. SIPLINK products have been used for around ten years as grid couplings at industrial facilities, as well as in conjunction with land-based electrical power outlets that provide electricity to large ships. The software
ensures that Siestorage converters can react flexibly to changes in the grid, especially in the event of frequency fluctuations, which involve extremely rapid processes that occur within seconds, says Fuchs. Unique Black Start Capability. When a grids instability reaches critical levels, energy suppliers may cut off entire subgrids from the network. Restarting the grid after such a shutdown is called a black start. During an acceptance test in Italy in 2012, Siestorage was able to restart a rural subgrid with its connected PV facilities within just milliseconds after the connection was cut. From that point on, converters in the battery storage unit maintained a frequency of 50 Hertz and ensured stable voltage of 20 kilovolts in isolated operations. Siestorages black start capability is truly a unique featur, says Fuchs. Siestorage will also play a key role in a project to be launched in the fall of 2014. Siemens will team up with steel manufacturer Arcelor Mittal in Eisenhttenstadt, Germany, and the local energy supplier, VEO, to build a backup system for power outages. Here, a Siestorage device will use an electric motor to start the gas turbine in the steel mills own gas power plant in order to make sure the factory can continue operating with its separate grid if theres a blackout. This scenario is also relevant to the energy transition, Fuchs explains. In the future we will need to have many flexible combined-cycle plants that can be black-started quickly if the grid fails and this is exactly what Siestorage can do. In short, it can be used as an alternative to conventional diesel engines. Siestorage is being continually refined. Our converters and the batteries were now using enable us to absorb or dispense a maximum output of two MW using a storage device with a capacity of one megawatt-hour that is housed in a standard 40-foot container, Fuchs explains. The use of much higher-performance batteries might also be an interesting option for special applications for example, the regeneration of braking energy from container cranes or tire test rigs. Such applications involve handling very large amounts of energy in a short period of time. But not all of this energy can be put into Siestorage yet, due to the systems short recharging cycle. Experts at Siemens are now working to develop an increasing number of combinations that will allow customers to maximize their devices output and their storage capacity. This will ensure that customers grids remain as stable and efficient as possible. Christian Buck
Italy is blessed with plenty of sunshine, so its not surprising that the countrys photovoltaic (PV) sector is booming. The grid operated by energy supplier Enel, for instance, includes PV facilities with a power output of over 11,000 megawatts (MW), most of which are connected to the medium-voltage distribution network. But theres a dark side to all this: When the midday sun is shining, solar cells produce a large amount of electricity that is then fed into the grid, where it needs to find consumers. However, if clouds appear, power output will drop suddenly. In general, the more fluctuating energy sources, such as sun and wind power, are connected to the grid, the more difficult it is to ensure grid stability. Supply and demand have to be balanced at all times. If they are not, the resulting fluctuations in voltage and frequency can disrupt or even destroy electronic equipment. In view of this, it is clear that energy storage systems will become increasingly important in the future. Storage units take in surplus electricity that is not needed at a given time and then feed it back into the grid when
demand rises. For decades now, efficient pumped-storage electrical power stations have been used for long-term storage needs (see Pictures of the Future, Fall 2009, p. 31). Unfortunately, there arent enough suitable locations to build them in, says Uwe Fuchs, Sales Manager for Advanced Power Systems and Storage at Siemens. We therefore need to develop alternatives that can stabilize our power grids. According to Deutsche Bank, the German market for electrical storage devices is expected to at least double between 2012 and 2025. An associated investment of roughly 30 billion euros will be required in Germany alone over the next 20 years. By 2040 at the latest, some 40 terawatt-hours (TWh) of electricity will have to be stored on a regular basis, in some cases over a period of several months. The 40 TWh figure is one thousand times higher than the storage capacity of todays pumped-storage facilities in Germany. By comparison, total German power plant output in 2012 was approximately 618 TWh. Various technologies for dealing with this issue are available. For example, hydrogen
storage devices can take in surplus power from wind farms. These devices use electrolysis to produce energy-rich hydrogen gas from water. The hydrogen can be temporarily stored in underground caverns that are already used to hold natural gas (see Pictures of the Future, Spring 2011, p. 26). If demand for power rises, the energy-rich hydrogen gas can drive turbines that then supply electricity to the grid. Alternatively, the hydrogen can be converted to methane through a reaction with carbon dioxide; after that the methane can be fed into the natural gas grid. Alternatively, the methane can be used as a base material in the chemical industry or as fuel in fuel cell vehicles. Energy can also be stored as compressed air. This approach involves pumping air into hollow chambers such as salt domes and then compressing it to a pressure of up to 100 bar. The compressed air is later used to drive a gas turbine, In other words, combustion still requires a fossil fuel such as natural gas, but the combustion air no longer needs to be compressed (see Pictures of the Future, Fall 2009, p. 31).
Energy Storage Systems by Duration and Power

Days / weeks
Hydrogen (e.g. for combustion in gas turbines) Redox flow batteries CAES* Pumpedstorage power plants Technologies
Chemical storage systems Electrochemical storage systems Mechanical storage systems Electrical storage systems * Compressed-air storage systems ** Superconducting magnetic energy storage systems 10 MW 100 MW 1,000 MW
Hours
Lithium-ion batteries Sodium-sulfur batteries

Minutes
Flywheel storage devices Supercapacitors

SMES**
1 kW 10 kW 100 kW 1 MW
Seconds
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Resilient Infrastructures | Japans Tsunami
The tsunami devastated significant areas on the east coast of Japan. Odaka administrator Yoshiki Konno lost his home town (right).
open up new economic opportunities, such as those Germany hopes to exploit through its energy transition (p.6). In Search of the Right Energy Mix. We need affordable power to keep our industry competitive, says Masakazu Toyoda, Head of the Institute of Energy Economics, Japan (IEEJ). We wont be able to achieve that with fossil fuels alone, as we have to import almost all of them. And renewables are even more expensive than energy imports. Toyoda nevertheless has a clear concept of what Japans energy mix could look like by 2030. Renewables would account for around 20 percent of the mix, nuclear power plants would supply around a quarter, and fossil fuels would cover the rest. Since the accident in Fukushima, electricity prices have risen by up to 20 percent for industries in most parts of Japan. To offset the shutdown of the nuclear reactors, power companies have simply recommissioned old fossil-fuel power plants. As a result, reserve capacity has dwindled from around ten percent to only three percent. A severe earthquake could cause the entire power grid to collapse.
creases energy savings elsewhere. Kobayashis workplace, the Tokyo Metropolitan Government Building, is well-known beyond the citys limits. The upper floors of this 48-story building, which is one of Tokyos landmarks, provide a spectacular view. From here, the megacity looks like a virtually endless sea of lights each evening a view that is unmatched anywhere on earth. With over 35 million inhabitants, Tokyo is the worlds most populous metropolitan area. Although this area covers only about 3.5 percent of Japans surface area, around 28 percent of the countrys population lives here. If everyone set their air conditioners temperature a little higher and switched on the lights a little less often, lots of energy could be saved, says Kobayashi, who is convinced that the best electricity is the electricity that doesnt have to be generated. The air conditioning system in Tokyo City Hall is now set at 28 degrees Celsius and is switched off completely at night. To reduce energy use even further, many fluorescent tubes have simply been taken out. Light switches now have stickers showing a samurai warrior waving a fluorescent tube as if it were a sword and shouting Save electricity! in a speech bubble.
lems on its own, says Kobayashi. Japan must also substantially increase the share of renewable energy in its mix solar and wind power and geothermal energy. Some of the best locations for generating wind power are in Hokkaido in northern Japan. Wind turbines currently account for only 0.4 percent of the electricity produced in Japan; in Germany the figure is around seven percent. Wind and Geothermal Energy. Euros is a Japanese company that operates wind power facilities with an installed capacity of 2,270 MW in eight countries. We are pioneers in Japan, says Euros CEO Masami Shimizu. This field has its risks, but if its done properly, wind power makes a tangible contribution to climate protection. Recently, Euros ordered Siemens wind turbines for the Akita Port wind farm on the northwest coast of the island of Honshu. The turbines have rotor spans of 101 meters and a capacity of 3 MW each. Today there are too many regulations. Relaxing them would help to expand wind power generation, says Shimizu, who points out that if technological feasibility were its only concern, Japan could generate up to 280 GW with wind power systems.
Odaka Revisited
In March 2011 a tsunami up to 15 meters in height hit the Fukushima Daiichi nuclear power plant. The resulting meltdowns caused Japan to shut down all of its nuclear plants. Since then, the Japanese have been asking how they can meet their electricity needs in a way that is cost-efficient, environmentally friendly, and safe. One thing is certain: Japans energy market will change.
Yoshiki Konno thought he would die when the water level reached his neck. He had saved dozens of lives that day when he drove down to the coastal town of Odaka in Fukushima prefecture to warn residents about the tsunami that was heading their way. Konno drove from house to house, urging people to go to higher ground, because the tsunami would hit in a few minutes. He knew that, in spite of the sirens and the public warnings, some people would refuse to leave their homes. But not even Konno thought that the wave would be up to 15 meters high. As one of the administrators of the nearby town of Odaka, 63-year-old Konno is
responsible for disaster protection. On my way back, the wave smashed into my car, filling almost the entire passenger compartment with water, he says. The water reached up to my eyebrows. There was only a small air bubble at the very top that let me take a breath now and then until the tsunami receded. The tsunami was triggered by a seaquake with a magnitude of 9.0 on the Richter scale. The wave left ruin in its wake, stopping just before Odaka, which is on higher ground. Around 16,000 people were killed on March 11, 2011. The quake and the tsunami were followed the next day by multiple meltdowns
in the reactors of the Fukushima Daiichi power plant, around 17 kilometers away. Water had penetrated into reactor buildings, causing the emergency power systems and most of the distribution cabinets to break down. The crisis continued. Like many people in Japan, Konno no longer believes that nuclear power is safe. None of the 54 nuclear power plants that were operational in March 2011 are currently online. Many of the reactors are decades old and are now undergoing thorough safety checks. But the country cannot reach a consensus on which energy mix will ensure Japans competitiveness and perhaps even
A partial solution could be to set up new, highly efficient gas-fired power plants. With around 40 percent of Japans electricity needs already covered by gas-fired power stations, the country is the worlds largest importer of natural gas. But in the two years since the nuclear accident in Fukushima, increased imports of fossil fuels have turned the nations once enviable trade surplus into an unheardof trade deficit. Shoji Kobayashi, Deputy Director at the Bureau of Environment of the Tokyo Metropolitan Government (TMG), is convinced that Japan can afford to have a high percentage of renewable energy in its mix if it also in-
Such electricity-saving measures have enabled Japan to cut its energy demand dramatically since the nuclear accident in March 2011. Peak load dropped by around 20 GW practically overnight equivalent to the output of 14 nuclear power plants. However, simply taking out fluorescent tubes wont be enough in the long run. A more promising solution is the use of smart building technology. For example, a building equipped with energy-efficient technology consumes 30 percent less energy on average than a conventional structure. Saving energy is the right approach to take, but it cant solve Japans energy prob-
Japan also has considerable geothermal potential, which means that it could generate a lot more energy from its hot springs in the future. People have bathed in the water from these springs for millennia. Some day this hot water could conceivably also power steam turbines with a combined output of up to 34 GW. Tidal power is an additional possibility. Here too Japan has very good locations where this technology could be applied commercially and without doing harm to the environment. Siemens is a pioneer in this technology (see Pictures of the Future, Fall 2009, p. 25).
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Resilient Infrastructures | Smart Grids
To reduce the impact of power failures, Hawaiian Electric Company installed Siemens smart technology.
However, a significant obstacle to the expanded use of renewables in Japan is the difficulty of connecting new, environmentally friendly power sources to the grid. The major reason behind this is that there is hardly any competition in Japans electricity market. Ten power monopolies have traditionally divided the countrys electricity market between them. One of these is TEPCO, which operates the nuclear power plant in Fukushima Daiichi. People who live in the TEPCO area can therefore buy electricity only from TEPCO. Another major drawback is that the power grid itself is inadequate. A more integrated grid would stabilize Japans power supply in critical situations; it is also a precondition for expanding the use of renewable energy sources. The technologies needed in order to accomplish this have been available for quite some time, says Kenichi Fujita, Head of Siemens Energy in Japan. For instance, he points out that: high voltage direct current lines would allow us to transmit huge amounts of energy with little loss from the windy regions of northern Japan to metropolitan areas such as Tokyo and Osaka.
most of its sales in the cell phone business. But since the government introduced statutory feed-in tariffs for solar and wind power in July 2012, the firm has been involved: We want to become a leading supplier of green energy in Japan, says Naoki Nakayama, Communications Officer of Softbank. Nakayama admits that it wasnt easy for the company to take this step. All of our board members were initially opposed to the idea of getting involved in the energy business, he says. Son had to convince everybody of his vision, one at a time. Softbank intends to create more than 260 megawatts of solar and wind power capacity in Japan by 2015. After that, he wants to expand abroad by setting up power plants in Mongolia and creating an Asian supergrid that could one day connect electricity networks throughout Asian countries, including Japan. Although such ideas may seem utopian, businesspeople like Son are now encouraging their countrymen to dream big. After 20 years of deflation and economic stagnation, Japans economy is reviving and old struc-
In March 2011 Japans Nuclear Power Plants Were Taken Offline

Energy generated TWh 918
5 74 800 288 600 Fossil fuels Nuclear Hydroelectric Renewables
822 5 67 822 16
400 551 200
734
Source: METI: Agency for Natural Resources and Energy
0 FY 2010/11 (Apr.Mar.) FY 2012/13 (Apr.Mar.) 1.9 0.6 8.2 And in the future?
%
8.0 31.5
0.5
?
60.0 89.3
shows radiation levels of 10 microsieverts per hour a value that is 100 times higher than the natural background radiation in Tokyo. Odaka, which had around 13,000 inhabitants, can now only be visited by day. The rubble hasnt been completely cleared away yet because the town is in a restricted area. Its rather spooky much of the area is still exactly the way it was right after the disaster struck, says Konno. The ruins of homes destroyed by the earthquake dot the landscape; abandoned bicycles have been rusting at the train station for more than two years. Windows are still nailed shut, and corrugated iron walls have popped out of their frames and are flapping in the wind. Wrecked cars lie where the tsunami left them in fields outside the town. Japanese pop songs pour out of tinny-sounding loudspeakers. Konno made sure that music would resound in the ghost town so that people like him wouldnt feel lonely when they visit Odaka a few hours at a time. A womans voice is heard from the loudspeaker, singing of her broken heart. The Geiger counter crackles here as well, but the
Radiation levels around Fukushima are still elevated, and leaks often make headlines. More energy from renewable sources, such as wind energy, could help Japan meet its future power needs in a more sustainable manner. Saving electricity, is also being encouraged sometimes with aggressive images (right).
Keeping Paradise from Going Dark

Utilizing smart technology from Siemens, Hawaiian Electric Company customers on the island of Oahu, are gaining reliability and benefitting from grid enhancements. This will help the company add more renewable resources to its energy portoflio.
Such power lines are still a long way off, and many people think it wont be possible to expand and reorganize Japans power networks until electricity production is separated from grid operation. Other parts of the world unbundled their energy markets in this way a long time ago. In practice, unbundling means that companies that generate electricity cannot also operate power grids, and independent producers must have the right to feed their electricity into the grid. Revolutionary Visions Softbank Chairman and CEO Masayoshi Son has what is probably the most revolutionary vision for the Japanese electricity market. A self-made billionaire, Son sees to it that his company generates
tures are crumbling. This new optimism has spread to the energy sector, says Yotaro Akamine from business consulting firm KPMG. Renewable sources of energy account for just one percent of Japans electricity mix, but this could rise to 30 percent by 2030. The key driver is market liberalization, and the unbundling of power networks. No matter which path Japan decides to take, key steps are already being taken, says Shuji Miyasaka, a partner at KPMG in Tokyo. These steps include coal-fired and gas-fired power plants that are now being planned and built, and gas turbines from Siemens, some of which are located on the island of Okinawa, where Siemens is also responsible for their maintenance.
Japan has also begun to commit to cleaner energy since the disaster in Fukushima. It is investing in efficient fossil fuel power plants, more renewables, and systematic energy conservation. However, it is still not clear where these paths will ultimately lead, and nobody knows what will be done with the countrys nuclear power plants in the years ahead. Even Yoshiki Konno doesnt exclude the possibility that nuclear energy will make a temporary comeback. He sometimes drives back to Odaka and walks along its deserted streets, past his house near the damaged reactor. About 150,000 people had to leave their homes because of the nuclear accident. After a short drive outside the town, his Geiger counter
dose in this part of Odaka is relatively low, at 0.23 microsieverts per hour. The older people in particular would like to return, says Konno. Nuclear power had provided Konnos son with a job. In the past, he often heard in the media that Japan needed nuclear power to keep its economy competitive. But then nuclear power took away his house and his home town. In the long run, we will have to give up nuclear power, he says. But we will probably have to let some reactors run for a few years. The wind wafts through Konnos gray hair, and from a loudspeaker a woman is singing of a lover who is getting on a train. The last time a train stopped at Odaka station was on March 11, 2011. Andreas Kleinschmidt
Hawaii is one of the most isolated population centers on Earth. Nonetheless, this island paradise has been associated with electric power ever since the invention of the light bulb. One of the pioneers of electric power was the Hawaiian monarch King David Kalakaua. Back in the late 1870s Kalakaua decided to learn more about electricity. In 1881 he met with Thomas A. Edison in New York, and five years later a light bulb powered by a generator flashed on in the royal palace at around 7 p.m. A short time after that famous evening, the entire palace began using electricity. This historic event laid the foundation for what would in 1891 become the Hawaiian Electric Company. From the very beginning, the company had to overcome the challenges related to Hawaiis geographic isolation. Like many
other islands that have no fossil fuel reserves, Hawaii imports oil in order to generate electricity. The high transport costs of oil result energy prices that are much higher than those on the U.S. mainland. This is one of the main reasons why Hawaii plans to increase the proportion of renewable sources in its energy mix to 40 percent by 2030. Hawaiian Electric and its subsidiaries, Maui Electric Company and Hawaii Electric Light Company, are on track to meet this goal. As of mid-2013, the three utilities were at 18 percent, exceeding the 2015 milestone of 15 percent. However, the goal is to produce power that is not only more environmentally friendly but also just as reliable. Mountainous terrain, high salt content in the air, and often stormy ocean weather pose severe challenges to the continuity of electric service in the Hawaiian Islands.
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Resilient Infrastructures | Smart Grids
Resilient Infrastructures | Geothermal Power
Iceland offers ideal conditions for generating electricity from geothermal energy.
There are no electrical interconnections between islands. For this reason, the Oahu grid always keeps capacity in reserve in order to be prepared for an emergency. One of Hawaiian Electrics recent challenges was the fact that it had reserve capacity but no means of moving power to the load center that needed it without building new transmission lines. The company has therefore developed a plan for modernizing its power grid. The overall goal is to connect more renewable energy to the system and to utilize existing infrastructure more efficiently. Siemens is supporting this effort with intelligent grid technologies, and Hawaiian Electric is already using one of the companys energy management systems. Such systems quickly provide electricity suppliers with an overview of the grid and enable them to respond to problems rapidly. Connecting Corridors. An example of a recent grid modernization project in Hawaii is the East Oahu Transmission Project. Most of the power generation on Oahu is located in the western part of the island, but the load centers are in the east, mainly in Honolulu. Power is delivered across rough terrain through two transmission corridors along the north and south of the island. These corridors are not interconnected in the eastern service area, which consumes more than half of Hawaiian Electrics power. But without such a transmission line connection, the reliability of service in the eastern area could be at risk as it is only connected to the northern transmission corridor. The project aims to solve this problem in two phases. The phase one project constructed more subtransmission capacity from the southern corridor to the eastern service area. This provided a means for load to be shifted between the eastern and southern corridors to reduce the probability of a transmission line overload due to a multiple transmission line outage. Phase one, however, did not address a reliability concern for pocket areas in the eastern service area. In order to restore power to these pocket areas, primary trouble personnel would be dispatched to manually switch sub-transmission lines in the area to restore power. This manual process was expected to take approximately 2 to 4 hours before service would be restored. To reduce the service restoration time, Phase two was to add a new 80 Megavolt-ampere transformer and three new 1.6 mile (2.5 km) underground sub-transmission lines along a main thoroughfare in a densely populated
Electrical equipment in Hawaii has to cope with mountainous terrain, salty air, and powerful storms.
area of urban Honolulu. The goal of phase two was to automatically restore power to the pocket areas in seconds compared to hours.Due to the estimated cost and construction impacts to the community, Hawaiian Electric modified the second phase of the project to install a smart controller and Supervisory Control and Data Acquisition (SCADA) equipment to restore power to the pocket areas. The goal was to use the already available capacity in the neighboring service areas more efficiently. Intelligent Solution. The main component of the modified solution in the second phase was a Siemens SICAM control unit. The SICAM unit is designed to monitor the transmission lines feeding the transmission substation in the eastern service area. In the case of a complete transmission line outage,
the SICAM unit initiates a predetermined sub-tranmission switching scheme to automatically restore power to the area. The SICAM unit also utilizes information from the Siemens Spectrum Power Energy Management System installed at Hawaiian Electric to ensure that adequate sub-transmission capacity is available in the neighboring service area prior to initiating the switching process. This capacity check is needed to ensure that an overload to the neighboring service area does not occur, which could result in an outage in this area as well. In order to make it possible for SICAM to automatically restore power to the service area, SCADA equipment was installed in eight distribution substations in the primary and neighboring service areas and one sub-transmission line switch. For Hawaiian Electric Company, this modified phase-two project is an example of a self-healing network. This setup gives the electric company enough time to fix the problem. SICAM monitors and controls switching in the event of a disturbance. At the same time, it reports the condition of the grid to the control center. This gives Hawaiian Electric a more secure energy delivery system as well as a better overview of its power grid as a whole, says Ken Geisler, a Vice President at Siemens Smart Grid Division in the U.S. The more transparent the grid is, the more rapidly problems can be localized and eliminated, he explains. Up until now, the typical method for mitigating a reliability concern was to have additional capacity in the service area dedicated to serve transfered loads. This project is a clear example of utilizing smart technologies to utilize capacity in the system to provide reliability across multiple service areas. This innovation not only improves the grids reliability but also increases the utilization and the equipment performance of the existing infrastructure. Hawaiian Electric was fortunate enough to receive about one third ($5.3M) of the $15.4 million it needed for the project from the federal government as a result of the American Recovery and Reinvestment Act. The Siemens project is just one part of a major plan for equipping the entire electrical supply architecture in Hawaii with smart grid technologies. Such intelligent grid management will be particularly important in the future, given that energy from renewable sources, such as the wind and the sun, is not always available in sufficient amounts when it is needed. Hubertus Breuer
Energy from the Earth

Geothermal energy can be used to generate power at many locations. However, each location poses unique challenges related to earthquake risk, corrosive steam, and other factors. Plants tailored to site requirements can exploit this clean, reliable source of energy cost effectively.
Its very hot at the center of the earth. At up to 6,000 C, the temperatures there are comparable to those on the suns surface. The effects of this heat can be felt on the earths surface in the form of volcanoes, hot springs, and geysers. But some of this heat can be tapped for beneficial purposes, such as the generation of electricity. Indeed, geothermal power plants are already generating more than 60 terawatt-hours (TWh) of electricity per year. According to the International Energy Agency (IEA), geothermal energy still has a lot of unexploited potential. By 2050 the output from such power plants could rise to 1,400 TWh per year, or up to 3.5 percent of global electricity production. However, before such increases can be achieved, plenty of improvements will be needed. And thats something that Donald Leger has been preparing for for over 20 years. For a long time, Leger worked on optimizing the design and service of third-party steam turbines for TurboCare, a Siemens subsidiary. Since 2012 he has been involved in a new geothermal steam turbine project at Siemens Energy. Leger has seen many geothermal power plants during his career. Not every location is suited to power production. But along the Pacifics Ring of Fire, at the boundaries between tectonic plates, for example, conditions are particularly good. At such points, energy from inside the earth can easily rise to the surface, where it creates volcanoes as well as very warm water-bearing layers in the earths crust that can be used for power generation. However, a power plant site also has to fulfill other conditions. The best places to develop geothermal power are of course where high temperatures are close to the surface and there is also local demand for electricity, says Leger. Thats why the U.S. West Coast, Indonesia, the Philippines, Iceland, and Kenya offer particularly good conditions. In Europe, Geothermal energy has played a role in the electricity mix for a long time. The first geothermal power plants were built in Italy in the early 20th century. Now other countries such as Germany and Switzerland also use this technology. The problem is that in Central Europe sufficiently hot water can be reached only by drilling extremely deep holes and using very complex processes. In Switzerland this drilling has already caused small earthquakes, which in turn have triggered protests (see Pictures of the Future, Spring 2012, p. 95). Regardless of where a geothermal power plant is located, it always employs the same basic principle. A hole is drilled down to a hot, water-bearing layer of the earth, which is often located more than 1,000 meters underground. In this layer, the water is under pressure generally 3.5 to 15 bar. This pressure causes the water to rise through the borehole to the surface, where it either flows as water or appears as steam. At temperatures as high as 250 C, the steam drives a turbine and its connected generator. After it has cooled, the
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Resilient Infrastructures | Geothermal Power
Resilient Infrastructures | Water Networks
Almost half of the population of Romania still has no access to clean water. The problem is acute in rural areas.
water is pumped back into the hot zone underground. Depending on the waters temperature, various methods are used to generate electricity from geothermal energy. At low temperatures about 150 C the water from underground generally heats a second closed circuit in which an organic liquid with a boiling point lower than that of water is used. This liquid drives a turbine after being vaporized. At higher temperatures, dry steam from the depths of the earth can also be channeled directly into a turbine. This increases the plants overall efficiency and allows electricity to be produced at lower cost. We can use steam as hot as 250 C. The cooler the steam is, the more liquid water it contains. We have to remove this water first so that the turbines permissible steam wetness isnt exceeded, explains Michael Barth, who is responsible for developing Siemens
ten years, depending on the quality of the steam. The geothermal steam turbines from Siemens are well equipped to deal with such conditions even though Siemens only began developing turbines for this application in 2011. After all, the company can draw on its development work on conventional steam turbines and, above all, the extensive experience its subsidiary TurboCare has accumulated through maintenance work on geothermal steam turbines built by other companies. TurboCares maintenance work has taught us how to develop steam turbines for difficult conditions. We now know which materials to use to minimize erosion and corrosion, says Leger. For example, designers use corrosionresistant stainless steel for the turbine blades. We adapt the material and design, depending on the chemical composition of the
challenge: earthquakes. Tremors are common wherever volcanoes rumble and tectonic plates collide. Thats why Siemens steam turbines are equipped with an automatic cut-off system that immediately switches turbines off safely if there is excessive seismic activity. This reduces the risk of damage, because turbines are more sensitive to external shocks when they are in operation. Plant foundations also have to be shockresistant. Despite these challenges, geothermal energy can pay off under the right conditions because it combines the advantages of conventional power plants with those of renewable energy sources. Unlike wind and solar energy systems, geothermal power plants can operate year round and can thus be used to cover base load. In addition, as with renewables, there are no fuel costs. However, planning such plants
Bichisan Viorel is one of the many water inspectors employed by the Romanian water utility company Aquatim. Every day, these inspectors examine facilities throughout the country and request improvements where necessary. Here in Romanias third-largest city, Timioara, we are taking samples at no less than 32 locations, says Dr. Katalin Bodor, the director of Aquatim headquarters. Viorels standard range of equipment includes glass bottles. We put the samples in here, he says, opening one of the bottles. When taking a sample, Viorel makes sure he doesnt touch the inside of the bottle cap. I might otherwise falsify the result, he explains. These samples are taken in order to check a total of 20 quality attributes in the lab. They allow us to draw some conclusions regarding the citys entire water supply network.
Big Savings in the Pipeline

Nearly ten percent of the worlds population does not have access to clean drinking water. One of the reasons for this is the dilapidated condition of many water supply networks. An all-new online platform from Siemens promises to provide help to counteract this problem in the future.
When it comes to geothermal energy, every site is unique. Steam turbines, turbine stages, and materials must be adapted accordingly.
first steam turbines for use in geothermal power plants. We call this process flashing. In most cases flashing involves a kind of centrifuge located upstream from the turbine. In addition to water, other substances also have to be removed from steam. Thats because water-laden steam absorbs hydrogen sulfide, other gases, salts, and small pebbles as it percolates through layers of rock. Systems upstream from a turbine can remove many of these substances, but not all of them, which is a major problem for turbines that use steam that comes directly from the ground. Substances from underground inflict greater damage on turbine blades and other components of geothermal power plants than does the steam in conventional steam turbine power stations. This results in corrosion, erosion, and reduced efficiency. The rate of wear and tear inside a geothermal steam turbine depends on the conditions at the power plants location, says Barth. The turbine must be overhauled every three to
steam at the power plant site, adds Barth. For example, if the steam is more damaging than usual we increase the chromium content of the steel in the blades. To deal with extreme conditions, we use steel that has a 12 percent chromium content. We also use high-grade steel instead of normal steel for the turbine parts that come into contact with the steam. The various model sizes of the Siemens turbines cover outputs ranging from five to 120 megawatts. The number of stages and the length of the blades can be adapted to project-specific conditions, depending on the steams volume and pressure. Because not everything that comes from deep underground is good for the surface environment, the plant and its equipment must be designed to handle non-condensable gases. The aim is to pump almost all of the hazardous substances back into the ground. Shutdown before Earthquakes. In addition to tough steam turbine conditions, developers also have to address another major
is complex. Building a coal-fired power plant is comparatively easy because you can regulate its pressure and temperature as needed, no matter where you get the coal from. But when youre planning a geothermal power plant, you first have to make a geophysical examination of the site to ensure there is enough heat and water, says Leger. After that, developers drill a number of holes to access the steam or hot water. Engineers then adapt the turbine to the impurities, temperature, and other steam parameters. After completion, a geothermal power plant is one of the most cost-effective means of generating electricity. In fact, such plants can already compete with conventional power plants. Lazard Ltd., a financial consulting firm, has calculated that generating one megawatthour (MWh) of geothermal electricity costs around $90. In other words, geothermal energy generally costs less than solar energy. At optimal locations, geothermal systems are even more cost-effective than many coalfired power plants. Andreas Wenleder
According to an EU-funded initiative known as Connect.Euranet, almost half of Romanias population has no access to clean drinking water. Rural areas are particularly hard hit, as only about 10 percent of villages have a water supply network. But the 11 million Romanians who are hooked up to the public water supply network arent much better off, since dilapidated water pipes and bad water quality are extremely common. According to Aquatim, Timioara has a 637-kilometer water supply network that serves around 330,000 people each day. However, up to 41.5 percent of the water (around 61,000 liters) leaked out of the pipes in 2012 and disappeared into the ground. Such problems are not limited to Romania. Italys water supply situation is similar. Due to inadequate investment in water supply networks, 30 percent of the countrys drinking water is lost before it reaches a water faucet. Other European countries are also affected by leaks. France loses 26 percent of its water this way, Spain and the UK 22 percent, and Germany 6.8 percent. In view of
these facts, the European Union launched a research project known as ICT Solutions for Efficient Water Resources Management (ICeWater) in October 2012. The project will run for three years. The projects partners, including companies such as Siemens and water utilities such as Aquatim and Metropolitana Milanese, are striving to improve water quality and supply. They are also focusing on ways to make water pumping stations as energy-efficient as possible and reduce the number of leaks in the water supply network. The Siemens team on the project is headed by Dr. Parag Mogre at Corporate Technology (CT) in Munich. By the fall of
2014, his team is to install test stretches in the Timioara and Milan water networks that are outfitted with sensors that measure water flow rate, pressure, conductivity, turbidity, and chlorine content, thus making the networks intelligent. Sensors mounted on the pipes inner and outer surfaces use ultrasound and magnetic induction to measure the pressure and flow rate of the water. These measurements allow inspectors to draw conclusions about the condition of the pipes and find any leaks (see Pictures of the Future, Spring 2012, p. 64). We also want to install smart meters in residential buildings along the test stretches, says Mogre. Such meters record a buildings water flow rate and generate information that allows utility companies to more accurately plan and ensure the proper supply of water. The results are expected to help participating companies limit water loss when they expand their water supply networks (see Pictures of the Future, Fall 2012, p. 99). The data from the 124 sensors in Milan and the 22 sensors in Timioara is fed to a SCADA
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Resilient Infrastructures | Wireless Sensors
Wireless sensors are easy to install and require little maintenance. On locomotives, they measure tensile and impact loads.
system that monitors and controls processes, stores the data and, if desired, transfers it to the new online platform the ICeWater system. This system makes it possible to create a Smart Water Cockpit an Internet portal that can be accessed by smartphone and tablet PCs. Data transferred from the SCADA system will be abstracted and made available in standardized form. In principle, measurement data could even be delivered in real time but in order to optimize the volume of information and energy use, measurement data will be posted only on demand. Forecasting Water Use. An example of the kind of new service the ICeWater system could provide is a Demand Forecasting Service, software that uses sensor data to make forecasts about water use with extreme accuracy. The goal of the service is to make it possible to adjust the water network to meet fluctuating demand. In addition, the software will send alarm information and suggestions about what action to take to the SCADA system, where final decisions are made and where control of the various elements of the water network (for example, pumps) is located. The Smart Water Cockpit could also be set up to notify registered users of alarms. For example, water supply personnel could be notified of an alarm by e-mail, and then get the necessary information via the Internet portal. In this way, problems in the water network could be identified and dealt with at an early stage. Users could also test selected parameters of the water distribution network on this platform, says Mogre. For example, an individual could call up information on an iPad and simulate changes to the water supply in order to evaluate their effects on energy demand or leakage rate. Milans water utility company Metropolitana Milanese intends to use this technology to reduce its energy use. Operators at the citys control center will be able to use an iPad to determine how much water households actually use. They can determine which pumps will have to operate when, for how long, and at what output. This can save substantial amounts of energy. In fact, it will be possible to base entire pump schedules on a locations actual water consumption, says Mogre. Bichisan Viorel will also have an iPad, but he will keep his glass bottles. As a registered user of the Smart Water Cockpit, he will receive real-time notification of where he should take water samples, and hell continue to use his bottles to take samples to the lab. Susanne Gold / Julia Hesse
Measuring Tons in
Locomotives are subject to dramatic tensile and impact loads. But the sensors measuring these stresses are vulnerable to electromagnetic interference from electric motors and converters in a trains drive system. To solve this, Siemens has developed wireless sensors that operate with a precision of 100 microseconds.
What does a baby monitor have in common with a set of wireless headphones? The answer is, of course, that both of these devices function without a cable. In fact, our lives are full of devices that communicate via radio signals and generally do so quickly, reliably, and without transmission losses. In todays wireless world, cable clutter is increasingly a thing of the past. However, wireless data communications are not in use everywhere. In locomotives, for example, the sensors used to measure tensile and impact loads while the train is moving are all still wired up to a central processor. And the same applies to wind turbines, cars, and aircraft. They all use hardwired sensors, explains Dr. Werner Breuer, Head of System Design and Computation at the Siemens Rail Systems Division. For rail vehicles, this involves a number of drawbacks. To begin with, hardwiring all the sensors in a locomotive is a tricky job. Secondly, an even bigger problem is the electromagnetic interference that emanates from a variety of sources in the motor compartment. Electromagnetically speaking, a locomotive is a dirty area that is affected by interference from a range of sources such as electric motors and converters. In the case of hardwired sensors, this can lead to false readings and problems with data transmission. The traditional solution to this problem is to lay as much of the wiring as possible along the outer body of the locomotive. However, this too can entail problems. For example, the wiring is constantly exposed to the full impact of the elements whether heat, cold, rain or snow and suffers accordingly. Likewise, train cleaning can also lead to defects. Alternatively, if the sensors and wiring are mounted on the underside of the locomotive, they are vulnerable to damage from stones in the track bed. In other words, there is a pressing need for wireless sensors for use in rail vehicles. Modern locomotives consist of an increasing number of components from a range of suppliers e.g., electric motors, current collectors, and step switches for starting resistors. To ensure that all of these elements interact smoothly, it is vital to monitor a variety of mechanical loads. When a locomotive is in motion, the running gear and the superstructure i.e. the body are subject to powerful forces. This subjects components to great stresses, despite their robust design and substantial weight. However, an important design consideration is to cut weight wherever
Microseconds
possible in order to make locomotives as energy-efficient and widely usable as possible. It is therefore vital to precisely monitor the mechanical loads to which components are subjected. Only if the static and dynamic safety of the locomotive is guaranteed can engineers begin to think about using less material. Our goal was to devise a wireless solution to monitor the performance of a locomotive while it is in operation, says Martin Glnzer, a development engineer for high-frequency solutions at Corporate Technology (CT), Siemens central research unit, in Munich. This was likewise the objective of the Akusens project, which was launched in June 2009. Funded by Germanys Federal Ministry of Education and Research, it involved Siemens and six other corporate partners. It was the first time that wireless sensors had been tested in locomotives, explains Dr. Hubert Mooshofer, a project manager at Sensor Technologies, a CT technology field. Mooshofer and his team developed the wireless sensors devices the size of a twoeuro coin that are joined to a hand-sized radio transmitter. Once the sensors had been successfully tested in the lab, it was time to put them through their paces on a rail track. Initial trials were run at the Siemens test track in Allach, near Munich. Following three months of in-house testing, the sensors were ready to undergo trials in everyday operation. Selected for the trial was a route between Rotterdam and Muttenz, a municipality in Switzerland. Over a period of nine months, the sensors monitored a freight locomotive operating in normal service, thereby ensuring that the trial was conducted under realistic conditions. A real packhorse, says Breuer of the Siemens locomotive, which has an output of 6,400 kilowatts and weighs in at 90 metric tons. At 140 kilometers per hour, its top speed is relatively low, but this did not compromise the trial in any way. Locomotives twist and flex even at minimal speeds, Breuer explains. This even occurs when a train crosses a bridge at a walking pace or slowly passes a switch while entering a station. Thats why the researchers were particularly keen to measure the torsion in the vehicle body. In doing this, the sensors record not the actual amount of distortion in terms of millimeters but rather the degree of acceleration at a series of measuring points. In all, 20 sensor nodes were installed throughout the locomotive. By comparing the data received from each one, it was possible to profile the vibrations and loads experienced by the locomotive and, in this way, describe the long-term stresses on individual components. On the basis of vibration data, it could be seen how torsion affects the vehicle body and the running gear. To the human eye, however, such movements remain invisible, since the components affected move only a few millimeters. The measurements made by the wireless sensors are comparable to those made by conventional hardwired sensors, Mooshofer explains. The sensors have to operate with a precision of 100 microseconds so that they can also resolve the sensors opposing movements. Yet their extremely high resolution is not the only special thing about the sensors. Another really clever feature is that they all have an identical timestamp, Breuer explains. This is crucial, because sensor readings are comparable only if they are taken at exactly the same time. To ensure this is the case, each sensor has its own clock generator that determines how frequently it synchronizes itself with the other sensors. Even a millisecond gap between two readings would compromise the result. The Akusens project was concluded in November 2012. Although there are still some problems that need to be ironed out with regard to wireless data transmission, Breuer stated that, We were surprised by just how well the sensors performed. For example, they continued to function reliably and precisely even at temperatures as low as 20 degrees Celsius and as high as 85 degrees Celsius. In the future, the sensors will also be tested in other areas. High-speed trains are one such potential application. The sensors are also of great interest to the automotive industry, says Breuer. Further potential applications include monitoring vibrations in generators and turbines. But this challenge shouldnt present any problem for devices that are sensitive enough to record the acceleration of a 100 ton locomotive within 100 microseconds and communicate it with an identical timestamp. Ulrich Kreutzer
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Resilient Infrastructures | Traffic Management
Traffic management centers, such as the one in Stuttgart, rely on vast amounts of data to generate pollution reduction strategies.
Resilient Infrastructures | Traffic Management
cars. This can be accomplished by shortening green traffic light phases on key access roads into town. We homogenize pollutant emissions, and that reduces the strain on everyone, Ghio explains. These measures have resulted in a roughly four-percent reduction of NO2 emissions from the 44 micrograms per cubic meter that were recorded in the fall of 2012. PM10 emissions also declined during the same period. Still, the annual average level of pollutants in some districts of Potsdam is still four micrograms higher than maximum. The city therefore needs to develop additional ideas. Among the measures being considered are a new parking space management system, better public transport at major traffic hubs, and measures to promote bicycle use. If our initial successes continue up until 2015 and we can reduce pollutant emissions even further, we will introduce our environmentally focused traffic management system throughout the entire city, says Potsdams Director of Traffic Management, Reik Becker.
traffic lights, controls parking guidance systems, and provides data to dynamic traffic signs. This enables us to provide motorists with optimal information about obstacles, detours, and travel times, Rheinemann explains. The new technology has helped Stuttgart prevent several kilometers of traffic jams every day. Induction loops embedded in the pavement provide the traffic management center with information about traffic flows and vehicle waiting times at intersections. Video cameras are also installed on traffic lights to measure and record the volume and speed of traffic. Operators can access this data via software systems. They can look at a street map that shows all the traffic lights, and program them in a manner that efficiently manages traffic using switching recommendations from the system if so desired. However, such a sophisticated traffic management system isnt needed in every town; a single traffic computer is more than enough for any community with fewer than
Because SmartGuard is accessed via the Internet, a special two-phase security concept is needed to prevent unauthorized use. The traffic monitoring system itself is accessed via a user name and a password. Additional protection for security-relevant actions, such as traffic light switching, is ensured through a mobile PIN system similar to those used for online banking. The new software was developed for the world market. It uses open interfaces that can be employed internationally. The four pilot projects that have operated to date in Germany and Austria will be supplemented by additional projects in Norway and Poland beginning in October 2013. New functions are also being planned. The most important of these is a strategy management system that identifies peak traffic in the morning and automatically adjusts the traffic management system accordingly. Also planned is the integration of travel time data with the help of automated license plate recognition units installed at measuring
Cutting Smog with Data

Urban traffic should be fast and energy efficient. Traffic management systems can help by using a variety of information to generate pollution reduction strategies for specific streets and districts. Such systems control traffic lights, parking guidance systems, and dynamic street signs. Siemens has commercially introduced several such systems.
Its often the small things in life that make us happy. However, thats not true of PM10, a particulate thats less than 0.01 millimeters in diameter and therefore very dangerous. Thats because the smaller a particulate is, the deeper it can penetrate into the bodys airways and therefore not be exhaled. It can then damage lung tissue. Ultrafine particles can also move through air sacs into the bloodstream, where they alter blood flow properties and increase the risk of cardiovascular disease. The World Health Organization (WHO) has confirmed this danger; it reports that an estimated 1.3 million people die each year all over the world as a result of polluted air in cities. The situation is particularly bad in major urban areas. On one particularly smoggy day at the beginning of this year, for example, Beijing set a disturbing record by recording more than 800 micrograms of particu-
lates per cubic meter of air. The WHO recommends a limit of 20 micrograms. Plenty of other cities routinely exceed this limit. This is illustrated by the city of Ahwaz, Iran, where the average level of airborne PM10 was 372 micrograms in 2009. Germanys Federal Environment Agency reports that German cities with high traffic volumes also regularly exceed the limits set for particulates. In Potsdam, for instance, the citys Zeppelinstrae measuring station recorded particulate levels above the official limit on 55 days in 2011. In view of these alarming trends, in the spring of 2012 the city of Potsdam and Siemens launched a pilot project designed to reduce particulate and nitrogen dioxide (NO2) emissions. Siemens installed its Sitraffic Concert/Scala traffic management system, which collects traffic data and automatically generates guidance strategies from its analyses. These strategies are designed to ensure
that traffic flows more efficiently and produces fewer pollutants. The system collects up-to-the-minute traffic information (such as number of vehicles and closed streets) from various sensors. It also receives meteorological data regarding temperatures and winds, as well as information about the locations of construction sites. The system uses all of this data to calculate a pollutant profile of individual streets and street segments in real time. The system tries to guide traffic away from places where particulate and NO2 concentrations are too high, says Andrea Ghio, a product manager for environmentally sensitive control systems at Siemens Infrastructures and Cities. It does this, for example, by turning all the traffic lights green on thoroughfares in threatened areas. Alternatively, the system can reduce pollutants by shifting traffic flows to break up slow-moving lines of
Collecting Traffic Data. This has already happened in other cities. In Stuttgart, for example, four operators use a Siemens system to coordinate all traffic on a road and street network with a total length of 1,465 kilometers. The system also has to take into account approximately 14,500 construction sites and 22,500 accidents each year, says Uwe Rheinemann, a sales manager for Siemens traffic systems. The Sitraffic Concert/Scala digital manager is a central component of the Integrated Traffic Management Center, which takes in all traffic data in the city of Stuttgart. The data is collected by the Stuttgart Office of Public Affairs, the Stuttgart Civil Engineering Department, public transport operator SSB AG, and the Stuttgart Police Department. A Siemens computer processes all the information and intervenes in the Stuttgart traffic system as often as 35 times a day. It switches
50 traffic lights. Thats why Siemens has developed new software thats scheduled to be commercially introduced in October 2013. This software, which is called SmartGuard, offers all the basic functions for monitoring and managing traffic in small cities and towns. Those authorized to operate the system can use a private cloud (secured IT environment) in an internal network to access traffic lights, detectors, and parking garages with any HTML5.0-enabled browser on a PC, tablet computer, or smartphone. Moreover, this can be done from any place on Earth. Previous setups that employed client solutions that ran directly on a users computer took up to five minutes to access the systems. By contrast, the private cloud provides users with traffic data in just ten seconds. The goal is to offer a Web-based, user-friendly traffic management center, says Product Manager Michael Dsterwald.
stations. Data protection will be ensured through powerful algorithms that make the license plate data anonymous. Its already clear today that the new technology can make traffic flows more efficient not only in major urban areas but also in smaller cities. It will be possible to reduce CO2 emissions at certain measuring stations by up to 25 percent, predicts Dsterwald, who explains that the idea is to shift traffic jams and all their negative effects to less sensitive spots, such as industrial areas. A variety of approaches, such as the expansion of public transport networks, the further development of low-emission vehicles, and the increased use of bicycles, will all need to make a contribution here. Within this holistic concept, SmartGuard is a small but important part of the overall effort to optimize traffic flows. After all, its often the small things in life that make us happy. Ulrich Kreutzer
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Resilient Infrastructures | History
A 1929 tram in Majorca (top), the 1912 Comet in the High Tatras, an 1896 motor in Tsingtao, and the 1924 Walchensee power plant (right).
Resilient Infrastructures | History
Bratislava supplied electric motors, each of which had a power output of 40 kW, and all the electric equipment. From the start, the train was renowned for its reliability. However, in the 1980s it was sent into semi-retirement and then brought out only occasionally for anniversaries and other special occasions. Just before the trains 100th anniversary, a lightning strike damaged the electric motor and a high-voltage cable. It looked as though the railroad yard in Poprad would be the trains final destination. However, a group of rescuers turned up to save this local hallmark. It consisted of the railroad veterans club of Poprad as well as Siemens, the restoration projects main sponsor. After repairs had been made, the engine once again ran smoothly. The tram was put back on track in August 2013, and today it can transport about 1,000 passengers a day. The Comet received its name in the winter of 1923, when it was equipped with a snowplow. At high speeds, the tram pulled a long tail of snow behind it. The name Comet was born, and it has become firmly established since then.
1916 and World War II, after which Tsingtao passed into Chinese hands in 1945. Eventually, however, it was time for the gleaming black Siemens electric motor of 1903 to begin its well-deserved retirement. It has been resting in the Tsingtao Museum since 1995. But it now has a satisfactory successor: Since 2010, an automatic process control system (BRAUMAT) from Siemens has ensured that Tsingtao beer is still served all over the world. Supplying Power to an Entire Country. No electric motor can function without a power source. Thats why the need for electrical power plants increased worldwide around 1900. In many places this ushered in the era of hydroelectric power plants. One of these places was the Ardnacrusha power plant in Ireland, which entered service in 1929. At 86 MW, it delivered 90 percent of Irelands total power output. Today its power output remains the same, but it represents only two percent of Irelands total. The Siemens-Schuckert company was the general contractor and supplier of the elec-
In the Alpine foothills of Bavaria nature has created the perfect conditions for generating clean electricity and storing it. Walchensee, or Lake Walchen, lies 800 meters above sea level; Kochelsee, or Lake Kochel, is located 200 meters further down. At the turn of the 19th century, demand for electric power increased in Bavaria. In response, Oskar von Miller, a construction engineer and the founder of the Deutsches Museum in Munich, forged ahead with the construction of the Walchensee power plant. The principle behind this plant is simple: A total of six pipes were laid between the two natural lakes. The water coming from Lake Walchen rushes downward through the pipes for 200 meters and onto the eight turbines of the power plant. Connected to the turbine shafts are eight generators that produce electricity. The water subsequently flows further down into Lake Kochel. The turbines started rotating in 1924, and they are still turning today. The eight generators, two of which were manufactured by Siemens-Schuckert, have faithfully served the
Resisting Times Ravages

The triumphal advance of electricity began more than a century ago. Electric railroads and electric motors changed lives, and the first power plants were built in order to satisfy the publics growing need for electricity. Some of these technologies are still being used today. Five examples tell an impressive story of the strength of technology and the durability of innovation.
In the early 20th century, traveling from the harbor city of Palma to the mountainous regions of Majorca was a difficult undertaking. Travelers had to ride in carriages and carts along narrow roads up and down mountains and across the Coll de Sller pass. Along the way, they had to rest several times in order to recover from the stresses and strains of the trip. Nonetheless, this was the only way to bring goods from Palma to Sller. Things did not change until 1907, when construction began on a rail connection between Palma and Sller. Regular service began in 1912 and was supplemented 18 months later with an electric streetcar line to Port de Sller, five kilometers further on. The streetcar line had its own power plant in the Sller train station, where a combustion engine with an output of 48 kilowatts (kW) powered a dynamo made by the German electrotechnical company Siemens-Schuckert. Suddenly, the little town began to benefit from visitors and from goods such as fresh fish transported in a small refrigerated car. Another big step, which eliminated the irritating smoke in tunnels, was the electrification of the train line in 1929. For this purpose, the train lines operator, Ferrocarril de Sller, bought four bidirectional locomotives, each one weighing 33 tons and with a power output of 265 kW. They too were produced by Siemens-Schuckert. About 85 years later, the same trains, numbered 1 to 4, are still climbing hundreds of meters above sea level every day along the 27-kilometer route between Palma and Sller. Railroad experts notice the unusually narrow tracks, which are only 914 mm wide (a normal track is 1,435 mm wide). Passengers enjoy not only the refined interior of the wood-paneled cars but also the view from the old-fashioned sliding windows. The trains travel past olive groves and orange plantations, through a total of 13 tunnels, and across several bridges. Saving a Landmark. Another treasure has not resisted times ravages quite as successfully. In the High Tatra Mountains of Slovakia, a tram called the Comet transported mail, goods, and tourists to mountain spas starting in 1912. The trip was grueling. Along the 36kilometer route the train gained about 700 meters in altitude, sometimes at external temperatures of minus 30 C. The Comets electric locomotive was built in Budapest in 1912. A Siemens-Schuckert factory in Reliable Brewery. Far from the High Tatras, theres another senior that is held in high esteem. One of Chinas first breweries began operating in 1903 in the harbor city of Tsingtao. At the Germania brewery, German and British settlers far from their homelands brewed their favorite drink. From the start, the fermentation process was assisted by the oldest electric machine from Siemens that is still operational today: an electric motor manufactured in Germany in 1896. Almost a century later, Germania Pils has become Tsingtao beer, and the brewery is today one of the largest in China. The antique Siemens motor resisted the ravages of aging for a long time. It did its job faithfully, needing no repairs whatsoever, until 1995. Without suffering any damage, it survived the takeover of the brewery by the Japanese in trical systems for Ardnacrusha. The construction of the power plant, which began in 1925, turned out to be a mammoth undertaking. Irelands construction industry was not yet highly developed, so almost all of the skilled workers and materials came from Germany. This included 30,000 tons of construction machinery and equipment. Irelands humid climate and the sites poor soil stability created additional problems for the builders. The crucial parts of the power plant went into operation in October 1929, and from that point on the country received electricity via a 3,400-kilometer-long cable system. Some of the plants original components are still in operation today. They include excitation dynamos, which have merely been rewound, slip ring motors, the original bearings, and the rectifiers. power plant ever since the start. In the 1960s they were merely rewound and relaminated. Today the plant generates about 300 gigawatt-hours a year a relatively small part of Germanys power supply. It provides about 80,000 households with electricity. However, the operators have little leeway in terms of power generation. They can either let exactly as much water flow through the pipes as has flowed into Lake Walchen, in which case the water level remains constant, or they can dam up the water overnight and open the pipe when electricity demand reaches a given point. Within a few minutes, the system will then run at full capacity. This option balances out periods of peak demand and is thus part of Germanys energy transition strategy. In spite of its age, the power plant is still as modern as ever. Nicole Elflein
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Resilient Infrastructures | Big Data
A Siemens software platform links a variety of databases, thus helping to prevent gas and steam turbines from breaking down.
Resilient Infrastructures | Big Data
Information technology and the Internet are vastly increasing the amount of data that has to be stored worldwide. This data includes not only the information generated on social media such as images, texts, and videos on platforms such as Facebook, but also the data that employees store in corporate networks and the machine data that is produced by sensors, transmitted through the Internet, and collected in databases. According to a study conducted by IT market researchers at Forrester, between 2006 and 2012 the global data volume increased tenfold. In 2012 the data volume rose above 2.5 zettabytes for the first time. Thats an unimaginably large number with 21 zeros. If this data were stored on CD-ROMs, the resulting pile would be ten times higher than the distance from the earth to the moon. The amount of data continues to increase rapidly. According to a study carried out by market researchers at IDC, data volume is expected to rise to five zettabytes in Western Europe alone by 2020. One exabyte corresponds to 1 billion gigabytes and is the equivalent of about 20 billion filing cabinets full of text documents. A zettabyte is a thousand times larger. One reason for this increase is the fact that the Internet is becoming more mobile.
Early Warning Systems for Turbines and Tomographs

Although advanced infrastructures such as energy and transportation systems are making life more comfortable, whenever they break down the consequences can be severe. To prevent interruptions, Siemens is working with partners to evaluate sensor data that helps detect technical problems early on. The objective is to create robust and failsafe systems.
Huge amounts of information are being generated by smartphone programs in particular. Around 2.5 exabytes of data are transmitted through the mobile Internet every day and stored on platforms. To date, this vast amount of data has largely remained unexploited. However, this is set to change, thanks to big data technologies that can analyze large unstructured data volumes. They do this by means of algo-
rithms that can discover unexpected patterns and new interrelationships in what, to humans, appears to be virtual chaos. Companies can turn such information into new insights not only to optimize business processes, products, factories, and customer relations but also to control complex infrastructures and optimize service and maintenance. The aim is to combine sensor data about the condition of machines and equipment with information about error messages and quality assurance statistics. Such a combination would allow smart surveillance systems to detect faults early so that defective components could be replaced and problems could be resolved before a breakdown. In gas-fired power plants, for example, motion sensors would measure turbine values regarding wear, and the sensors would then transmit these values to a computer system. The latter would analyze the data and trigger an alarm if, for example, a critical limit, such as the highest permissible temperature in the combustion chamber, were exceeded. The system already works pretty well, says Dr. Steffen Lamparter, an expert in the Business Analytics and Monitoring department at Siemens Corporate Technology (CT) in Munich. In the future, researchers would like to combine the data with additional information and evaluate it in real time. This information would concern a variety of parameters, including the amount of energy produced and the changes to electric currents within a motor. According to conservative estimates, doing so would reduce the time that technicians need to access relevant data by at least 25 percent. Because an average of 80 percent of technician processing time is spent on collecting data, we estimate that over one million Euros could be saved each year just in the servicing of turbines, says Lamparter. Such real-time analyses are already being conducted for Siemens latest H-Class gas turbines. Siemens commissioning engineers can call up the data from a newly delivered turbine at any time and without delay and evaluate it regardless of their location. Each gas turbine is equipped with 1,500 sensors that precisely measure key operating values, such as temperature, pressure, gas composition, generated output, and much more, down to the second. Whether its gas turbines, combined cycle turbines or other systems, the experience Siemens has gained with the many facilities it services for its customers allows it to obtain additional insights by conducting smart searches in the operating data and error mes-
sages. These insights can then be used to further optimize individual systems. The company plans to create a computer-assisted expert system that will examine the interrelationships between the faults that occur in a facility and the components that are installed there. In the future, designers will be able to access this data when they are selecting components for new facilities. The information will tell them how the components have functioned in practice, explains Lamparter. In this way, facilities could be made more robust from the very start. Spotting Patterns in Complexity. Such methods and techniques are currently also being developed in a European research project called Optique. In this project, ten partners including companies such as Siemens and the Norwegian oil corporation Statoil, as well as researchers at European universities are developing basic technologies for making searches in complex databases more efficient.
service. Energy Services Oil & Gas, as well as our power plant business are accomplishing this through implementation of specialized software platforms, Roshchin reports. Siemens now intends to optimize its preventive maintenance services by linking them to additional data sources. In our part of the project, the main focus is not so much on handling huge amounts of data, explains Lamparter. The turbine maintenance service generates only 30 gigabytes of data per day and the data pool has a total of 10 terabytes. A far greater challenge is posed by the need to integrate different databases and simultaneously link them with a pool of data that is continuously changing and expanding. As a result, we have to continuously update our calculations, says Lamparter. This is a demanding task, especially when you need to obtain the results in real time, if possible. Smart Evaluation Tools. Other methods must be used so that unstructured data, such
The challenge: Various databases have to be integrated and interlinked while the pool of data continuously changes and expands
The projects aim is to link different data sources and databases with one another and to give them a certain amount of intelligence. The plan is to use powerful algorithms to discover unexpected patterns and interrelationships at a speed and a level of quality that would have been considered inconceivable only a short while ago. In the future, a companys employees will ideally be able to use simply formulated questions to search for information in large data pools that consist of hundreds of interlinked and differently-structured databases. The answers employees receive will help them to make decisions. Bringing this about is a major challenge, due to the distributed nature of the information and the lack of a uniform data model. Whereas Statoil is primarily interested in improving database use for the exploration of new oilfields, Dr. Mikhail Roshchin, who represents Siemens application case in the Optique project, hopes to optimize data use for the preventive maintenance of power plant turbines. His objective is to make future power networks more resistant to breakdowns. Siemens is already offering its customers a preventive turbine maintenance as error messages in text form, can be combined with structured data, such as machine values. Semantic text recognition analyses and image analysis procedures can, for example, transform text, audio, video, and image files into analyzable data, making them usable for decision-making for the first time. Here, however, the challenge is that a wide range of data sources and formats must be logically linked to one another in such a way that conclusions can be drawn regarding the causes of faults and breakdowns. To make the analyses more effective, even the individual databases are to be equipped with smart evaluation tools, says Lamparters colleague, Thomas Hubauer, as he explains another of the research projects aims. As a result, the calculation of key statistical figures, for example, might no longer require all the data to be read into the data pool. Instead, only the sample space relevant to the inquiry in question would be needed. This sample space could provide the average value and the standard deviation, among other things. At the moment, however, experts still need the help of their IT colleagues in order to access information from different data-
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bases. Thats because the existing information must first be selected and loaded into special data spaces before searches can be made. This requires special knowledge that would overtax the capabilities of someone who is not well-versed in IT. However, this is set to change as well, because only the experts themselves know what will really benefit them, says Hubauer. As a result, database searches will have to become as simple as those made with Internet search engines such as Google. The Optique research project is still in its early stages. It began in November 2012 and will run until the end of 2016. Siemens has high hopes for the project. We expect the findings to be transferable to other big data applications so that they can be utilized for them as well, says Gerhard Kress from Corporate Technology, where he is responsible for coordinating big data projects running at Siemens. Using an approach similar to that of their colleagues at Siemens Energy Sector, specialists at Healthcare have developed an expert system for calculating the likelihood that a key component such as an X-ray tube in a computer tomograph might become defective. X-ray tubes play a crucial role in determining system availability and image quality. TubeGuard can reliably predict a breakdown early on, says Kress. In view of this, tomographs are being equipped with sensors that monitor key parameters such as the current in the tube, anode rotation, and the temperature of the oil. This monitoring software continuously transmits operating data to a Siemens service center in real time. This data enables our colleagues to use complex algorithms to calculate the likelihood of a breakdown within the next few days, says Kress. This enables service employees to make an appointment with radiologists in good time so that the defective component can be replaced without disrupting operations. The system already works well, says Kress. In the future, huge amounts of data and the combination of different databases could make it possible to develop new business concepts for procedures such as process analysis. We could find correlations in the big data pools and recognize interrelationships that would help improve processes and procedures in doctors offices. This in turn would help to stabilize healthcare costs, says Kress about a possible application for the system. However, a considerable amount of research will be needed before that goal can be achieved. Hans Schrmann
How do you analyze data? Uszkoreit: By posing a wide variety of questions. They can be very precise, such as those we ask when were analyzing trends for consumer research. They can also be less precise, for example when the data fluctuates. Take the increase in drug prescriptions. Here we want to know what causes the increase. When you deal with vast amounts of data, you sometimes get answers to questions you didnt even ask. Where do you think the evaluation of data will generate the biggest economic or social benefits?
for protecting our money. In the real world, we have formal legal concepts for regulating the handling of goods and money. This is something we still lack in the virtual world. However, failing to exploit the potential that data offers us would almost be as though physicists were to stop conducting research because it might lead to the creation of a dangerous weapon even though they would then forgo the possibility of discovering a solution for humanitys energy problems, for example. What do you think the concrete benefits will be?
Uszkoreit: Although we depersonalize and anonymize the data, its also true that the data will nevertheless allow you to draw conclusions regarding specific individuals if it is very diverse and reflects peoples lifestyles, environments, and physical conditions. For example, geneticists can recognize every individual on the basis of his or her gene sequence. But how should one handle such information in view of the great medical benefits it provides? Another example is the use of surveillance cameras in subway stations. Although these cameras film you, they do it to improve public safety. Or imagine you live in a house thats famous for its
What do you mean by that? Uszkoreit: Customers can band together in forums, for example, and put dealers under a lot more pressure than in the past by boycotting certain products or production processes, for example. Consumers can also form purchasing cooperatives, sign petitions, and initiate referendums. The outrage disseminated on the Internet is an unpleasant demonstration of how influence can be exerted here. A major transformation is currently under way in society. Digital democracy is becoming more feasible and will eventually be introduced.
Whats Needed:
Prof. Hans Uszkoreit, 63, teaches computational linguistics at Saarland University. He is also Scientific Director and Head of the Language Technology Lab at the German Research Center for Artificial Intelligence in Saarbrcken. He develops technologies for the machine processing of human language and has co-founded several startup companies. Together with his research team, he has created a process for finding complex interrelationships, facts, and incidents in large texts. The system automatically learns rules from the Web. It often does so on the basis of millions of examples, which it filters using knowledge obtained from Wikipedia and many other sources. In recognition of his work, Uszkoreit received a Google Faculty Research Award in 2012 and a Google Focused Research Award in 2013.
Uszkoreit: The main benefit is that we make not only structured data but also all types of unstructured data, such as texts, images, and voice recordings, usable. In addition, we can find correlations within the data. For example, we can compare weather station data with harvest information or traffic statistics, or nutritional facts with medical data. Society benefits from this knowledge of complex processes and interrelationships, no matter whether its in the healthcare sector or related to the economy. The objective is to find patterns and to create correct digital depictions of the real world. To enable computers to understand language, you also need large amounts of data and in-depth knowledge of the world. What risks do you see? Uszkoreit: Theres a potential risk whenever knowledge about individuals, groups or processes can be misused. For example, it could involve someone who uses medical information to blackmail patients or has detailed knowledge of a bank buildings architecture and gives it to gangsters. What do you recommend? Uszkoreit: You can compare this situation with the financial system. Although there is always a certain risk that money will lose its value, we havent banned it and returned to bartering. Instead, we have created systems
A Legal Framework for the Virtual World

Uszkoreit: In the case of a jet turbine, for example, you can prevent a disaster from happening by evaluating sensor data so that you can detect problems early on before the turbine fails. You can do the same with bridges, as they dont collapse by chance either. Such analyses are also beneficial in medicine; they enable doctors to detect diseases and their causes much earlier than would otherwise be the case. Could the predictions be as far-reaching as those in the movie Minority Report, where crimes are prevented before they are even be committed? Uszkoreit: It would certainly be possible to detect patterns that could, for example, tell us where and when crimes might occur, as well as under what conditions. However, you cant analyze individual cases. It would be a mistake to think you could make accurate predictions regarding such an extremely complex system as a human being. A tiny cause can lead to major changes in behavior. I think that human behavior is subject to nonlinear processes, and thus also to chaos theorys butterfly effect, in which the flapping of a butterflys wings can eventually trigger a storm far away. In many cases, data becomes especially valuable when it can be assigned to specific individuals. What do you think about this development? architecture and you forbid Google Streetview to display the building on the Internet. What right do you have to dictate that the building can only be viewed by a rich Australian who can afford to fly over here in order to take a look at your house, for example, but not by his less wealthy neighbor who would like to simply look at it on the Web? Does that mean that informal selfdetermination has to be reconsidered in todays age of the Internet, social media, and big data? Uszkoreit: Yes. The question is where my rights to my data begin and where they end. To return to the previous example, is the view of a house a right that automatically comes with the property? Or, to give another example, do I own the image made of my broken leg? I neither took the X-ray picture nor did I pay for it. But such images might help to heal other peoples legs. Is it morally justifiable to prevent the image from being used to treat other people? I believe we have to rethink the whole matter. Does all data have to be owned by someone? The legal regulations concerning the Internet are indeed uncharted territory. When should we focus on informal selfdetermination and when on the common good? The courts still have to clarify a lot of issues here. However, we as individuals also have much more power nowadays than in the past. If you take a look into the future say to 2050 what do you think the world of big data will look like? Uszkoreit: The virtual world will become more and more like the real one. Well live in it and with it. An example would be 3-D data rooms that we can actually enter. But, these systems will need security features like those in the real world. For example, not everyone is authorized to open a bank safe, and documents are kept locked away. This is done to protect individuals as well as society at large. However, because the real and the virtual worlds will coincide, nobody will be able to own the view of a house or an X-ray image neither in the real world nor in the virtual one. But the biggest challenge we will face with big data is that of time. A limited amount of forgetting has to be possible in the future, but we dont want a walled-up library either. And how will data remain continuously usable? Imagine that we had the equivalent of all of the data that is produced today for the past 4,000 years. Thats what things will be like 4,000 years from now. Historical research would be done very differently from the way it is today. But without further technological advances this flood of data might inundate us. Interview by Susanne Gold
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Resilient Infrastructures | Computer Centers
Computer centers can dramatically reduce their power demand. Bottom: Googles computer center in Finland.
Resilient Infrastructures
Zero point two grams thats how much carbon dioxide is emitted each time a Google search is perfomed. CO2, a greenhouse gas, is produced because most of the electricity that runs the computers, air conditioners, and lamps in computer centers is generated in power plants. Although 0.2 grams isnt much, the three billion searches made daily add up quickly. In 2011 Google alone consumed 2.7 terawatt-hours (TWh) of electricity. All the worlds computer centers combined consume about two percent of global electricity, and that number is growing. According to the Boston Consulting Group, the server capacity of Internet companies such as Google and Amazon, and of banks and major industrial firms will grow sixfold by 2020. Data storage volume will increase 70-fold. This growth is causing computer centers to use more energy; by 2020 they may produce more CO2 emissions than all the airplanes now in service.
waste heat from computers and ensures that they are always fanned by a cool breeze. 99.999 Percent Availability. The crucial criterion is that all systems must interact as required. Data Center Clarity LC is a Siemens software package that, for the first time, coordinates building systems with IT infrastructures, thus linking them with server operation. For example, if utilization of the computers microprocessor capacity drops, the software reduces the output of the cooling system because less electricity is needed and less heat is produced. The system continuously monitors the temperature and the flow of cooling air. Siemens is a reliable partner for complex projects, says Patrick Eshuys, Managing Director of the computer centers of Dutch cloud computing provider KPN. Siemens also sets standards when it comes to failsafe operation. According to the German Electrical and Electronic Manufacturers Association (ZVEI), power failures account for half of all the data lost at computer centers. Thats why Siemens provides power supplies with so much redundancy that the servers are available 99.999 percent of the time. A relatively recent trend is the provision of a plug-and-play power supply. Computer centers must be able to respond quickly to changes in demand, for example in cloud computing, says John Kovach, Head of Siemens Global Data Center Business. To make computer centers sufficiently flexible and able to increase capacity quickly, operators are increasingly using containerized electricity supply systems. The containers are simply set up on the companys premises whenever demand for energy rises. In addition to offering such containers itself, Siemens also equips the containers of thirdparty suppliers. The containers are full of lowvoltage switchgear and transformers and can be easily hooked up to a computer centers power supply system without requiring extensive installation work. That IT and climate protection arent mutually exclusive is demonstrated by Googles computer center in Houston, Texas, whose electricity needs are partially met by several 2.3-megawatt wind turbines from Siemens. Although Siemens ideally meets computer centers needs with its consolidated expertise in a variety of infrastructure sectors, many customers still have a traditional mindset in which IT management, building management, and power supply are viewed separately, says Kovach. Thats why we have to more effectively explain Siemens holistic approach, he adds. Bernd Mller
In Brief
Extreme weather events, such as hurricane Sandy in New York and the tsunami in Japan, threaten the infrastructures of many big cities. Siemens technologies, ranging from smart grids to demand management and subway control systems, help make city infrastructures resilient and robust . (pp. 50, 53, 62, 66, 69) We can no longer prevent climate change, even if very ambitious climate protection measures were put into effect tomorrow. We can only slow it down. Well have to adapt ourselves to the coming changes, says Prof. Peter Hppe, Head of the Geo Risk Research Department / Corporate Climate Center at Munich Re. (p. 56) Today, 95 percent of oil and gas extraction takes place at the earths surface, only five percent takes place on the sea floor. In the future, this situation will be reversed. Siemens in Norway is developing new technologies that will help exploit natural resources deep below the sea. For example, researchers are working on a power network for undersea extraction facilities that will still function flawlessly at depths of 3,000 meters. (p. 60) Renewable energy sources are making a growing contribution to the energy mix but this poses challenges to electrical grids due to the fluctuating nature of this type of power supply. One solution to this problem is to create energy storage systems such as those that were developed by Siemens and tested in cooperation with the Italian power company Enel. (p. 64) In order to ensure the problem-free interaction of rail components, mechanical stresses are determined with the help of hardwired sensors, which are placed at a number of locations. Because this requires a lot of complicated wiring, researchers at Siemens Corporate Technology have developed wireless sensors. The result is improved data evaluation that is precise to within 100 microseconds. (p. 74) According to Forrester, an IT market research company, the global data volume increased tenfold between 2006 and 2012. Siemens researchers at Corporate Technology are exploring ways to use the information. Their goal is to enable the infrastructures of various systems to identify and report impending failures from within before they occur. This would eliminate the need for lengthy analysis and help to prevent costly downtime. (pp. 82, 84) External: Interview Prof. Peter Hppe: www.michre.com Interview Prof. Hans Uszkoreit: www.hans.uszkoreit.net LINKS: Urban Resilience: www.siemens.com/urban-resilience EM-DAT The International Emergency Disaster Database: www.emdat.be C40 Cities Climate Leadership Group: www.c40.org Geo Risk Research Department, Munich Re: www.munichre.com/geo PEOPLE: Protecting NYC: Mayur Rao, Siemens Smart Grid mayur.rao@siemens.com Paul Eliea, Siemens Mobility paul.eliea@siemens.com Deep sea research: Jan Erik Lystad, Siemens Energy jan.lystad@siemens.com Smart grids USA: Ravi Pradhan, Infrastructure and Cities ravi.pradhan@siemens.com Energy storage: Uwe Fuchs, Infrastructure and Cities fuchs.uwe@siemens.com Geothermal energy: Donald Leger, Siemens Energy dleger@turbocare.com Smart water supply networks: Dr. Parag Mogre, Corporate Technology parag.mogre@siemens.com Wireless sensors for trains: Dr. Werner Breuer, Infrastructure and Cities werner.breuer@siemens.com Dr. Hubert Mooshofer, Corporate Technology hubert.mooshofer@siemens.com Traffic management: Andrea Ghio, Infrastructure and Cities andrea.ghio@siemens.com Siemens history: Florian Kiuntke, Siemens Historical Institute florian.kiuntke@siemens.com Virtual data treasures: Dr. Steffen Lamparter, Corporate Technology steffen.lamparter@siemens.com Failsafe computer centers: Laurent Tognazzi, Infrastructure and Cities laurent.tognazzi@siemens.com
Smart Diet for Energy Eaters

As demand for computing power increases, so does computer centers demand for electricity. Siemens is helping to counteract this trend with smart building management and flexible power supplies. The companys focus is on failsafe operation at all times.
The International Energy Agency estimates that the energy needs of information and communication technology and consumer electronics will more than double to 1,700 TWh between 2011 and 2030. Thats almost three times Germanys total electricity demand. Computer center operators are aware of this problem and are looking for ways to reduce it. Saving energy is a top priority for IT managers, but preventing breakdowns is even more important. After all, if an online shop such as Amazon were inaccessible for several hours, financial losses would be huge. The challenge is therefore to make energy supply and transmission in computer centers as efficient and reliable as possible. Siemens is playing a pioneering role in this area. It offers equipment for supplying computer centers with electricity, and can even plan a centers entire technical infrastructure. Its global team of experts for low and medium-voltage supply systems is coor-
dinated in Erlangen, Germany. Coworkers from Siemens Building Technologies supplement this expertise with their building management skills. Only if many measures act in concert can power usage effectiveness (PUE) be improved. PUE is the term used by the IT industry to describe the ratio between the amount of energy supplied and the amount used by server computers. A ratio of 1 would be ideal. At 1.1, some of Googles computer centers come very close to this value. However, the average value in the sector is above 1.8, and many computer centers simply waste energy. In some cases, half of the electricity consumed is used for air conditioning, says Laurent Tognazzi, a customer service representative who is responsible for low and medium-voltage supply systems at Siemens. The first step in saving energy is to select the right location for a computer center. Obviously, a center in the Arctic will require less
cooling energy than one in the Sahara. Many operators are therefore building new computer centers at high latitudes; some facilities are underground. There is even a trend toward completely automated computer centers that are remotely controlled. This means that the servers operate in rooms without any light or personnel, and energy-wasting office buildings are no longer needed. Even if the facilities are staffed, the building systems operate as economically as possible. This is where Siemens contributes its experience with building equipment that is certified in accordance with the Green Building Councils LEED standard. More than 20 of the companys own properties have already received this certification. Smart software isnt always needed to save energy; simple physics can sometimes do the trick. For example, Siemens can keep computers cool by installing a huge fan in a suspended ceiling. The fan circulates the
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Pictures of the Future | Mandela School
Pictures of the Future | Mandela School of Science & Technology
Ayabonga Msila is an eleven-year-old boy from Mvezo. Like the majority of his community, he is a member of the Xhosa, an ethnic group living in southeast South Africa. Ayabonga means they are grateful. From Monday to Friday, he leaves home at 7 a.m. An hour later, he arrives at school. There is no public transport, so he and his friends walk. The worst days are rainy days. Then, Ayabonga and his friends are soaked to the skin before they even get to school. Mvezo lies on the banks of the Mbashe River in the Eastern Cape province of South Africa. Consisting of six small villages with a total of 2,400 souls, Mvezo is a remote rural area where most local people do not have regular access to water or electricity. What makes Mvezo famous is the fact that this is Nelson Mandelas place of birth. Mandela became a worldwide symbol of resistance, freedom, and peace during the countrys apartheid era and is considered one of the greatest heroes of the 20th century. In 1993,
Starting in 2014, children in South Africas Eastern Cape province will be able to attend the areas first local secondary school. The Mandela School of Science & Technology will accept over 700 children.
South Africas School of Thought

Siemens is financing and building a school in Nelson Mandelas birthplace, the rural area of Mvezo. The first secondary school in this area, the Mandela School of Science & Technology is one of South Africas most ambitious corporate social responsibility projects to date. Based on the motto that Education is Freedom, the school will include computer and engineering labs.
he was awarded the Nobel Peace Prize and one year later he became the first black president of South Africa. In 2010, in order to help celebrate the 150-year anniversary of Siemens business activities in South Africa, former CEO Peter Lscher met with Nelson Mandela in Johannesburg. As a result of that meeting, Siemens committed itself to helping fulfill Nelson Mandelas dream of building a high school in the village of his birth, because the company wanted to give something back to society. The children of Mvezo currently do not have access to secondary education. As a consequence, if they wish to continue their education, they have to leave home and study elsewhere. According to the South African Department of Education for 2010, only every second primary school graduate in the Eastern Cape province attends secondary school, which starts with Grade 8.
Two years after the start of the planning process, the Mandela School of Science & Technology has become one of South Africas most ambitious corporate social responsibility projects. At a cost of 100 million rand (around 7.6 million), Siemens started building the school in collaboration with the Mvezo Development Trust and the community of Mvezo together with South Africas Department of Education. As part of its investment and commitment to the success of the school, Siemens will contribute toward its operational and maintenance costs for three years after the opening. The first high school in the village will make a positive difference to the lives of the children in Mvezo and the surrounding area, as well as the community as a whole. The project embodies Nelson Mandelas belief that education is the most powerful weapon you can use to change the world. Nkosi Zwelivelile Mandela, grandson of the former president, Head of the Royal House of Mandela, and Chief of the Mvezo Traditional Council, is thrilled about the project. Siemens contribution to the new Mandela School of Science & Technology is the most significant investment in education that this area has ever seen, he says. This is the type of initiative that can change the lives of this community forever. The Mandela School of Science & Technology will open in January 2014 in time for the new academic year in South Africa. It will start with Grades 8 to 10 and will be at full capacity by 2016 with pupils in Grades 8 to 12. This will give more than 700 pupils in and around Mvezo an opportunity to continue their education and prepare for university studies. The school will include 25 classrooms, sports fields, a vegetable garden, an administration building, and a school hall. It will also provide accommodation for twelve teachers on the school premises. Recruiting capable and passionate teachers is crucial for the success of the school because they are rare in the Eastern Cape. Another important part of the Mandela School of Science & Technology is its state-of-the-art resource center. It is named after Werner von Siemens and houses two computer labs, an engineering design lab, and a library. Fully embracing the schools motto Education is Freedom, the rooms are equipped with innovative technologies and plenty of research materials. For the first time in their lives, the children of Mvezo will have an opportunity to work with computers. But it is not only the areas children who will benefit from the school. The construction
A Fresh Wind along South Africas Coast

Siemens has entered the South African renewable energy market. In 2012 the company was awarded one of the largest onshore projects in the country: the construction of a 138-megawatt (MW) wind farm in Jeffreys Bay, around 550 kilometers southwest of Mvezo on the windy southern coast of South Africa. The project is part of the Independent Power Producers (IPP) Procurement Program of South Africas Energy Ministry, which aims to promote socio-economic and environmentally sustainable growth and to stimulate the renewable energy industry in South Africa. This year, the countrys utility company, Eskom, also entrusted Siemens with the construction of the 100-MW Sere wind farm in the Western Cape province along the west coast. For the Jeffreys Bay wind farm, Siemens will supply 60 2.3-MW wind turbines to its customer Mainstream Renewable Power. The turbines will provide energy for around 114,000 households. In addition, Siemens will be responsible for maintenance operations on the turbines for a period of ten years. The turbines will start to generate electricity by the end of 2014. For the Sere wind farm, Siemens will supply 46 2.3-MW wind turbines on a turnkey basis. The facility is expected to enter service during the first half of 2014.These onshore contracts for Siemens are important for South Africas expansion of its energy mix. About 95 percent of the countrys energy now comes from coal-fired power plants. The government plans to increase the countrys electricity generation from renewable energy sources to 50 percent by 2030 and decrease the share played by coal accordingly. Renewable sources are mainly biomass, wind, solar, and small-scale hydro. South Africa offers enormous wind resources in its coastal areas, which is why Siemens opened its Centre of Competence for Wind Power for Africa and the Middle East in South Africa in 2011. The company is thus demonstrating that it sees good opportunities in Africa for the wind power business and supports South Africas mission to create jobs in green industries.
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Pictures of the Future | Leipzig Zoo
A power distribution system from Siemens ensures that ocelots and other creatures feel at home.
of the school is also providing jobs for adult members of the community. For this purpose, the Skills Development Program in Mvezo is partnering with the South AfricanGerman Chamber of Commerce and the Construction Education and Training Authority. For the duration of the project, 150 male and female community members will be employed on site. They have received valuable building skills training in areas such as bricklaying, plastering, carpentry, and plumbing. The newfound knowledge of these community members will help the area long after the school has been completed. Siemens is building the school as a model of sustainability. Some of the electricity will come from wind and solar power on site. The school will use energy-efficient lighting, automation systems, rainwater capture, and water filtration technologies. Pupils will be able to experience the science and technology that underpins these sustainable solutions. We are setting an example of environmental responsibility, Siegmar Proebstl, CEO of Siemens in Africa, proudly states. Siemens wishes to actively participate in the development of South Africa. Building a first-class school in a rural area where none existed before is an enormously important and rewarding project. Some of the schools graduates might become the future engineers who build the wind farms and other sustainable solutions that the world so urgently needs. It was very important for Siemens that the schools curriculum focus on science and technology. Engineering is one of the scarce skills in South Africa and around the world. Its a skill that should be cultivated in children from an early age. The Mandela School of Science & Technology will support the pupils interest in future technologies, said Proebstl. For this reason, Siemens and the South African Department of Education have identified four sets of specialized subject streams. All of the pupils, boys and girls alike, will be able to focus on engineering, science, technology or agriculture in their last three years of schooling. In 2014, Ayabonga will be one of the first children from his community to attend the Mandela School. He is very proud and excited. The schools technological focus fits his interests perfectly. His favorite subjects are math, natural sciences, and technology. When I grow up, I want to become a surgeon. I want to stay in my home town and become the first doctor in Mvezo, because I care about other people, he explains. That is my dream. Ines Giovannini
Siemens Infrastructures and Cities Sector. In addition, the use of bars instead of cables saves a lot of material, and is thus in line with the zoos environmentally friendly design concept. A central coupling box links the parallel conductor bars to one another. If one of the bar circuits fails, the control center can send a command signal to the box, telling it to continue serving only one electric circuit. It works like a big light switch and ensures that there is no short circuit, explains Barth. Tropical Conditions. The power supply must be stable so that the air conditioning, ventilation, and lighting systems can function properly in the twilit hall. Gondwanaland also contains additional smart building control systems that keep the temperature at 25 degrees Celsius and the humidity at a tropical 65 percent. Among other things, the water for the tropical rainfall is collected from the precipitation that falls on the huge film-covered roof. The large amounts of water that are collected here are filtered and stored in a 600,000-liter cistern. In the night, the overhead sprinkler system sprays this water onto the indoor jungle. There is also a large artificial tree trunk in the middle of the hall that contains an intake system for sucking in the hot air that collects in the buildings dome during the day. The heat that concentrates near the ceiling is thus
Technologies for the Tropics

Special technology is needed to recreate the sensitive biotope of a rain forest in the middle of Germany. Thanks to solutions from Siemens, the Leipzig Zoo has managed to do just that.
An ocelot wanders through a tropical rain forest, winding its way between royal palms and mahogany branches. High above the cat, squirrel monkeys jump from branch to branch. Sloths hang in the treetops, from where they look down placidly at the lively scene. The air is hot and humid. But just a few meters away, the climate is radically different. The temperature is much colder and the fauna and flora are anything but tropical. After making their way through this lush South American tropical forest, visitors eventually find themselves between Leipzigs main train station and Auwald, a riparian forest in the middle of Saxony. Since 2011, this has been the site of Europes largest tropical greenhouse. Named Gondwanaland, this three-cornered structure rises around 35 meters into the air at the Leipzig Zoo. Measuring 16,500 square meters (bigger than two soccer fields), the building is home to 40 exotic animal species from the sloth to the pygmy hippopotamus. Around 500 tropical plant species from all over the world grow in the gorgeous jungle landscape, where visitors can make all kinds of discoveries. The animals are free to roam around here pretty much as they like. Frogs and birds are not restricted in any way, and the primates from the squirrel monkey island can cavort between the visitors. If you dont watch out, the monkeys will even steal your glasses if theyre in the mood, says Rasem Baban, who heads the zoos department of buildings, maintenance, and construction. Baban was involved in the creation of Gondwanaland from the very start, being primarily responsible for the projects architectural characteristics. The idea of building a discovery zoo arose in 1999, he says. Various experts, including biologists, zoo keepers, curators, architects, and engineers, worked together with the zoos director, Professor Junhold, to develop a concept for a zoo of the future. The center is equipped with sophisticated building control systems and electricity distribution technology from Siemens to ensure that the plants and animals feel at home in the artificial environment. The centers energy supply system is not only impacted by tropical humidity, high temperatures, and other major strains, but also has to remain up and running under all circumstances. Thats why the Gondwanaland development team decided to install the Totally Integrated Power (TIP) concept from Siemens, which ensures an efficient electricity supply system that is tailored precisely to the zoos needs. The reliable supply of electricity is crucial to the survival of the tropical greenhouse. Without electricity, the jungle would quickly turn into a desert, explains Baban. The power distribution system is the zoos bloodstream, except that it transports electricity instead of blood. A person would collapse if the aorta or the secondary blood vessels got clogged so that the blood could no longer be properly distributed. The situation is similar with the power distribution system in our jungle. Almost all of the power distribution components are redundant, which means they are duplicated in order to safeguard the reliable supply of electricity. If one device fails
A reliable supply of electricity is crucial to the survival of the tropical greenhouse. Without electricity, the jungle would quickly turn into a desert.
for whatever reason, the others will keep the power supply going in order to ensure the well-being and safety of the threatened animal and plant species in this small Leipzig ecosystem, says Baban. Thats why the system has two transformers that work in parallel to convert medium voltage into low voltage. A dual busbar trunking system links the transformers to the low-voltage main distribution switchboard, which channels the electricity into the artificial jungles aorta and secondary arteries. This is done through a conductor bar system that runs in parallel lines. The advantage of conductor bars over cables is that the redundant installation and switching ensures that the power supply can be kept going even if part of the system breaks down, says Steffen Barth from extracted and stored in the 100-cubic-meter water tank of a sophisticated heat exchange system. In a reverse process, this heat is released during the night to the heating system. Such heat regulation ensures that the climate is properly balanced throughout the tropical greenhouse. The heat is also used to support the heating system during the evenings and on days with little sunlight. Millions of people have visited Leipzigs tropical paradise in the two years since it opened. Ever since the buildings shell was built, the power distribution system has flawlessly ensured the safety of the visitors as well as of the plants and animals. Thats why the squirrel monkeys that look down saucily from their lianas have every reason to feel at home in their artificial but technologically wellplanned world. Nicole Susenburger
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Highlights
95 From Ideas to Innovations A good idea is just the beginning. But in order to become a success, it needs a good network, an understanding of future trends and, last but not least, a lot of patience.
Deep Vision
New York 2035: Henry Poirets customers commission him to create virtual images of the future. In his holograph lab he is enabling an energy company to experience its plans for a factory thousands of meters under the oceans surface.
Some 2,500 years ago, people made pilgrimages to Delphi in ancient Greece, where they sacrificed goats and in return received prophecies of every kind. Today, people flock to Henry Poirets lab in lower Manhattan and sacrifice part of their bank accounts. Like their predecessors, they receive a vision of what will happen or could happen a glimpse of the future. There is one major difference, however: Poirets oracle in the Big Apple delivers much more precise forecasts, and they are also easier to understand. Bobby, give Mr. Barlow something to drink, I have to take a quick shower, Poiret says to his secretary as he rushes past her with a towel around his shoulders. This wont take long, I just have to rinse off the salt. Peter Barlow sinks into a soft leather armchair while Bobby skips to the coffee machine, her yellow suit rustling at every step. Milk and sugar? she asks with a sweet smile. Barlow knows that the industry regards Poiret and his agency as eccentric, but that has not prevented his company from commissioning him. Thats because hardly anyone else can match the images of the future that Poiret formerly a scientist creates in his holograph laboratory. Such images enable companies to estimate how successful their products or projects could be, what future technologies they should invest in, and what effects their operations will most probably have on the environment. Poirets virtual creations are so realistic that some customers are rumored to have left the lab in a fairly nervous state.
102 Envisioning the Future What technologies will we need in the future? The scenarios of the world of tomorrow that are created by Siemens Corporate Technology have turned out to be very accurate. Distributed power generation, individually configurable products, and digital engineering were predicted a decade ago. A look at the past. 106 El Dorado for Startups Implementing innovative ideas in ones own company thats the dream of many college graduates. Siemens technology scouts are looking for exciting innovations that can be refined in cooperation with the company. 111 Research on Top of the World At their base camp on Mount Everest, researchers are gaining new knowledge about altitude sickness. They are investigating the reasons why some people can manage reduced amounts of oxygen better than others. Their findings have implications for patients in intensive care units.
2035
In his holographic laboratory, Henry Poiret simulates
projects long before they are realized. A large energy company has commissioned him to create the worlds largest underwater factory, which is to autonomously extract and process raw materials on the floor of the Pacific Ocean at a depth of 5,000 meters. In a virtual trip, he joins a company representative and his own digital assistant to see whether the factory he has designed will perform as promised.
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How Ideas Mature | Trends
Sharing ideas is a prerequisite for innovation at specialized conferences, on the Internet, and with research partners and startups.
Barlows company is a major energy supplier. It is planning to build the worlds largest underwater factory, which is being designed to extract oil and gas from the seabed and process it as soon thereafter as possible. Ever since a Norwegian company installed the first autonomous extraction systems on the bottom of the North Sea 15 years ago, deep-sea technology has been continuously refined. Huge drilling platforms on the seas surface have given way to undersea systems over time because they are too vulnerable, too inflexible, and too unreliable. The new factory is expected to extract the previously unexploited reserves of raw materials in the depths of the Pacific Ocean. There, oil, gas, and billions of tons of coveted metals are slumbering in a veritable treasure chest. Poiret is now being asked to show what such a deep-sea factory would look like, how it would work, and what effects it would have on its environment. Accordingly, the company has provided him with a huge amount of data and construction plans, which Poiret has combined with additional information about geology and biology, as well as other bits and bytes. According to the deal, Barlow will be getting a first impression of the results today. Poiret appears, freshly showered, and shakes Barlows hand. Pardon the delay, but I was just in the holo lab to check the settings, he says. Barlow wrinkles his forehead as he looks through the panorama window at the autumnal Hudson River. Has this madman just taken a dip in the ocean, he wonders. Bobby, rev up the quantum computer, were going down now, says Poiret. The secretary gently pushes Barlow into an elevator at the other end of the room. My assistant, Watson, is already waiting for us, Poiret says. Hes an avatar, a hologram, just like the whole laboratory. The elevator door opens, and Barlow steps back in a state of panic. An endless stretch of water opens up before them; it reaches to the horizon and its surface is flecked with white lines of foam. The elevator starts to rock in a gentle swell, and the air suddenly tastes salty. Waves slap lazily against the outer walls of the elevator, which seems to be floating in the middle of the ocean. Its a beautiful view, isnt it? Poiret asks with a smile as he lights his pipe. Welcome to the Pacific. We are now floating directly above your factory 5,000 meters above it, to be exact. He makes a sweeping gesture toward the inky blue water. Lets take a look at the factory complex. Please follow me but dont try to dive in. Poiret disappears into the water with a loud
splash. Barlow closes his eyes and takes a step forward. Go ahead and open your eyes, and please dont hold your breath. Youre already quite red, says Poiret, who is floating in front of Barlow in the water, smiling and gently puffing on his pipe. This is of course not a real ocean. If it were, youd already be soaked to the skin and squeezed out of shape. Were sinking very fast. In the gathering twilight, Barlow notices a huge shadow that is slowly circling them. Not to worry, thats only Watsons white shark, Poiret remarks. Its actually part of an entirely different scenario, which deals with an underwater hotel in South Africa. Suddenly, Barlow once again feels the ground under his feet. Its pitch-dark. Weve arrived, says the scientist. Watson, turn the light on. An eerie blue light penetrates the depths and reveals to them truck-sized bright yellow units that stretch over a distance of several kilometers on the ocean floor. Thats a nice color, isnt it? I was inspired by Bobbys outfit, Poiret says as he pores over a small transparent tablet. Here you can see the energy system that supplies the factory with power. Incidentally, this electricity is also produced down here by means of small tidalflow power plants. Previously one had to transmit electricity over long distances using sea cables. Ah, there you are, Watson! The virtual Watson is sprawling comfortably on top of a transformer. Good morning, sir, Ive checked the pipeline and simulated a small seaquake for it. Everything seems to be watertight, just as we predicted. The deepsea factory installations werent damaged either. However, the subsequent tsunami hit the oil tanker on the coast at the end of the pipeline, he says. Watson looks up toward the oceans surface. It was seriously damaged, sir. Im afraid its going to sink soon. Poiret turns toward Barlow. Weve discovered that this region will be more geologically active than was previously assumed. Maybe you should rethink your plans for the factory site. Those were our initial analyses. Poiret taps a combination of keys on his tablet. The scenery around them slowly dissolves into thin air, leaving behind only a dry white room. Barlow looks around him in a daze. Then his face grows tense and his skin starts to itch under his shirt. Thats just the salty foam we experienced when we dived into the ocean, says Poiret, slapping him on the shoulder. Its just a little gag, Barlow. Bobby will be happy to show you the way to the shower. Florian Martini
Reinventing Innovation
Innovation processes are changing radically. Scientific networks on the Internet, an active start-up scene that is always online, and the growing innovative power of emerging economies are forcing companies to face up to new challenges. In response, Siemens is becoming increasingly interested in collaborations with external partners.
Trip to Pforzheim completed weve safely arrived at Grandmas. This telegram sent from Pforzheim, Germany, to Mannheim in 1888 launched the automobile and a success story that would change the world. Bertha Benz and her sons had climbed into the three-wheeled Patent Motorcar Number 3 of Carl Benz, her husband, in order to show the world that the future belonged to the horseless carriage. She believed so implicitly in her husbands invention that she had asked to have her dowry paid out early so that she could help finance his research. On the way to Pforzheim she bought some fuel, a light gasoline, at a pharmacy. One reason for this storys enduring popularity is that it movingly illustrates the fact that a bright idea is only the beginning of the long process that transforms an idea into a successful innovation. Inventors are driven by ambition, the joy of creativity, and the hope of material gain. Earning money by means of his inventions was
also an important motivation for Werner von Siemens from the very start. In a letter to his brother Carl, he wrote: From the time I was a youth, I have envisioned founding a global business similar to that of the Fuggers, which would give power and prestige not only to me but also to my descendants. In 1847 he invented the pointer telegraph, and in 1866 he demonstrated the principle of electrodynamics, which kicked off the triumphal march of electricity. But even before that he had developed a number of smaller technologies, such as a process for galvanic gilding and silverplating that he sold to a company in England. He urgently needed the proceeds from the sale in order to care for his orphaned younger siblings. Today, Siemens employs 370,000 men and women all over the world, and innovation is still one of the most important drivers of the companys growth. Companies invest a great deal of money in new products that will boost their compet-
itiveness. The Centre for European Economic Research has calculated that in 2013 major German companies will spend approximately 140 billion worldwide on innovation. The exact effect of this expenditure on the sale of new products cannot yet be precisely calculated. The last such analysis, which was carried out in 2011, showed that new products accounted for 14.2 percent of total sales, a slightly lower figure than the previous years. However, following the financial crisis, industry began increasing its R&D expenditures again only in 2011, so there will probably be positive effects. Meanwhile, competitors are coming to the fore. Emerging economies such as China and India are increasingly investing in research and development. In order not to be left behind, the EU is working with companies including Siemens in a number of public-private partnerships to drive research in future-oriented areas such as innovative drugs,
aeronautics, organically based industrial segments, fuel cells, hydrogen technology, and electronics. Industry knows how important it is not to neglect innovations. We are still lagging behind some of the big economies, said EU Commissioner for Research, Mire Geoghegan-Quinn during a kick-off presentation for the public-private partnership program in 2013. The U.S. and Japan, formerly undisputed leaders in terms of R&D investment, have also lost many points in the ranks of innovative economies (p. 96). Switzerland, for instance, shows how important innovations are for national economies. For years it has topped the list of the most innovative countries. It also has one of the worlds lowest unemployment rates and occupies ninth place in the list of the richest countries. Nonetheless, these are exciting times because the very way innovation works is changing radically. For decades, scientists used to share their ideas primarily at special-
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How Ideas Mature | Innovation Strategies
Prof. Marquardt (top) and Prof. Weinhold backed modular current converters. Left: The HVDC PLUS facility in San Francisco.
ized conferences and in professional publications. Industrial researchers formed an important part of these networks. When a topic that had been developed at universities or in research institutes seemed interesting, a cooperative research project was set up. These old networks still exist today, but the Internet has dramatically accelerated the sharing of ideas. For example, Berlin-based startup entrepreneur Ijad Madisch has established a social network for scientists called Researchgate that already has three million members. Madischs aim is to improve and accelerate the sharing of ideas among researchers. The entrepreneurial landscape is also in a state of flux. Garage companies have existed for some 30 or 40 years, but now the number of startups is exploding. Today talented young people, especially students at elite U.S. universities, are trying to realize
ups but also stay abreast of new technology trends. Above all, the scouts must have above-average social skills, because the lifeblood of this sector is the fast and efficient sharing of ideas (p. 106). According to many experts, the entrepreneurial scene will continue to develop steadily in Germany in particular. Its true that London is very clearly the financial center for European startups. However, business angel Alex Farcet is convinced that there are many people in Germany who would gladly invest their money in startups but dont know how to do it and dont have any connection with the young entrepreneurs networks. He believes that creating such links is one of the tasks of his startup boot camps (p. 108). According to Farcet, startups are delightfully uncomplicated. To start a company you dont need any qualification certificates or ti-
Siemens have come about thanks to such excellent links between researchers (p. 95). A Look at the Future. It would be much too risky to rely only on intuition to predict which products will be in demand in ten or 15 years. Thats why Siemens developed a method that like this magazine is called Pictures of the Future. This approach is always used when its necessary to develop clear ideas about future developments. Siemens futurologists conduct interviews with experts; from these interviews, which often number several hundred, they crystallize conclusions about technology trends and market developments. The accuracy of the resulting future scenarios is exemplified by a Picture of the Future of the energy market that was created in 2002/2003. It predicted that small decentralized energy generation units would experience a boom, that renewable energy sources would probably become competitive even without subsidies, and that power plants would have to be operated more flexibly (p. 102). All of these themes are more relevant today than ever before. The power of visionaries and the sharing of knowledge also characterized the beginnings of Siemens history. Werner von Siemens met mechanical engineer Prof. Johann Georg Halske at a lecture given in Berlin at what was later to become the German Physical Society. The two men appreciated each other so much that they decided to join together to promote electrification and communication technology in a company called Telegraphen Bau-Anstalt von Siemens & Halske. Only a few years after the establishment of the company in a small workshop in Berlin, Siemens & Halske started operating internationally, participating in the construction of a telegraph network in Russia and the Indo-European telegraph line. Werner von Siemens believed that one reason for his success was the fact that his factories manufactured products that were based on in-house inventions. This made it possible to stay ahead of the competition, even though it was not yet possible to receive patent protection in all of Germanys individual states. Not until 1877 did the Reichstag pass a uniform German patent law a law whose urgent necessity Werner von Siemens had previously declared in public. Ultimately, this company founder combined all the essentials of an innovative entrepreneur: a spirit of invention, a network, entrepreneurial and strategic thinking, and, last but not least, a nose for successful innovations. Katrin Nikolaus
From Ideas to Innovations

A top-class global research network, farsighted strategies, a willingness to take risks, and perseverance all help to bring innovations to life at Siemens.
An internationally operating company such as Siemens must constantly monitor innovations from around the globe. Our world is full of innovative ideas, and we need to find out about as many of them as possible, says Prof. Michael Weinhold, Head of Technology and Innovation at Siemens Energy Sector. The company keeps up with innovations through research partnerships with universities, institutes, and other firms. Siemens also has its own specialized units that focus on cooperation with startups, including the proverbial garage operations. In addition, a finely structured knowledge and information management system extends throughout the many units and departments within and across the four Siemens Sectors. Many research projects are so extensive that they can only be carried out by a major industrial group such as Siemens. You need to be patient and have a lot of specialized knowledge in several disciplines if you want to develop gas turbine technologies or industrial automation software, says Dr. Norbert Ltke-Entrup, Head of Technology and Innovation Management at Siemens Corporate Technology. Networking is the key here, since even the most brilliant idea wont get anywhere if its not supported by the right people higher up. This was the case with modular multilevel converters an important recent development at Siemens. These high-performance converters, which transform one type of current into another, previously had to be customized for nearly every type of high-powered application for example, in ship engines and industrial motors. I had the idea of developing a strictly modular concept that would make it possible to configure high-performance converters using any number of identical submodules based on a standardized design. Such submodules could be assembled in different ways depending on their requirements, says Prof. Rainer Marquardt, an engineer who worked at Siemens Energy for 16 years before joining the Universitt der Bundeswehr near Munich in 2000, where he is still a professor for Electric Drive Engineering. In terms of the technology and industrial processes involved, he adds, this was a very ambitious goal, especially with regard to high-performance equipment. Thats because it was apparent that much more effective electronic controls and much greater efficiency would be required in the future. Marquardt initially presented his idea to former colleagues at Siemens Industry Sector but the Energy Sector also soon became interested. Michael Weinhold and other experts there at the time were examining the future requirements of the rapidly changing electricity market. Back in 2000, we realized that we would need this technology in just a few years, Weinhold explains. At the time, experts knew that more and more electricity would be generated from distributed energy sources in the future. They also knew that all of this power would have to be handled by converters if it was going to be efficiently transmitted and provide end consumers with a reliable supply (see p. 102). By the turn of the century Marquardt had built a prototype. Even the best experts would have trouble evaluating such a radical innovation solely on the basis of a theoretical concept they have to see how it works in practice, Marquardt explains. By this time he had also registered patents and published his idea in five international journals, but he had not gotten much of a response. He wasnt surprised, though. At least one hundred ideas are published in my field every year, but most of them are not suitable for industrial applications, and a lot of good ideas are lost. This time, however, things proceeded differently. Weinhold presented the idea at the monthly meeting of the Siemens Energy Managing Board, which gave him the green
Technology scouts need to be in touch with industry trends. They also need excellent social skills, because the sectors lifeblood is the fast sharing of ideas.
their ideas in their own companies much more frequently than used to be the case. They are often opting for such a path rather than setting their hopes on a career in a major company. And no international company can afford to ignore this creative external potential. Siemens recognized this fact years ago and successfully sent its own technology scouts to look for promising startups with which it could profitably work in Berkeley, California, and in Shanghai, China. In recent years a lively entrepreneurial scene has also been developing in Europe. Siemens has reacted to this development by establishing its own Technology-to-Business Center at Corporate Technology in Munich, Germany. Its team of four Technology Scouts must not only keep a close eye on new starttles. The only thing you need is to create something that customers want. Of course that also applies to Siemens, but naturally the processes are more complicated in a company that operates in 190 countries. Whats more, developments such as a new gas turbine or new software systems for industrial automation take years to develop and cost a lot of money more than a startup could ever scrape together. The kind of R&D that is performed at Corporate Technology (CT) and in the Siemens Sectors, along with external partners, is therefore indispensable for Siemens success. Before good ideas can become successful products, it is necessary to establish outstanding networks within the company and with universities and other research institutes. Many new developments at
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Roland Berger Strategy Consultants, the emerging economies are the drivers of innovation in many fields. For example, China and India are investing increasing amounts in research and development (R&D), whereas the percentages of worldwide R&D investment made by the United States, Europe, and Japan is decreasing. The global R&D landscape is experiencing a basic structural transformation. Companies from emerging economies are no longer the extended workbench of the industrialized states. Instead, they are investing more and more in research projects and developing their own competitive products, explains Dr. Roland Falb, a partner at Roland Berger Strategy Consultants. However, there is still one European country Switzerland that is leading the way when it comes to innovation. According to the Innovation Indicator 2012, that has been the case for years. The Innovation Indicator, a comparison of the innovation performance of 28 countries with the help of 38 individual indicators, is compiled by the Deutsche Telekom Foundation and the Federation of German Industries (BDI). Switzerland is followed by Singapore and Sweden in second and third place respectively, and after that by the Netherlands, Belgium, Germany, and the U.S. Whats the secret behind Swiss inventiveness? The countrys massive investments in education and research, as well as its strong and innovation-oriented economy, play major roles in its success. In addition, Switzerland gets top marks for all five subindicators: economy, science, education, government, and society and that points to an innovation system that is wellcoordinated and functions effectively overall. This interplay of all the relevant factors and actors is a further element of its success. Swiss scientists conduct the fundamental research on which new technologies are based. The educational system provides people with the knowledge and skills they need to deal with these technologies and to come up with innovations. The government, in turn, can stimulate innovation through expenditures, regulations, and promotional programs. And finally, societys attitude toward new technologies is an important general condition for the success of the economys efforts to bring forth innovations. In the past decade, emerging economies such as those of China and India have also significantly increased their R&D budgets and improved their scientific performance. According to the UNESCO Science Report 2010, the U.S. still leads the worldwide rankings of research accomplishments, but in recent years
The worlds research activities are extremely concentrated in only a few regions: Europe, the U.S., and China account for almost 70 percent of all research personnel. Today, one fifth of all researchers work in China. In terms of the publication of scientific articles, Europe is the leading region and the U.S. is the leading country. However, China has significantly increased its proportion of scientific articles in recent years. More than ten percent of all such publications today come from China. A report published by the World Intellectual Property Organization (WIPO) in 2012 shows that in comparison to the world economy accumulated global know-how in terms of intellectual property is growing rapidly. The indicators here are patents, trademarks, and functional and design samples. In 2011 the number of patent applications passed the two-million threshold for the first time. Chinas share was the largest, at almost 25 percent. Thats a new development, because for the past century either Germany, Japan or the U.S. had occupied the top position. Now China is in the lead, with its 526,412 patent applications (in 2010 and 2011, China posted the highest rate of increase, at 34.6 percent). China is followed by the U.S., Japan, Korea, and Europe. Japan is leading the way with regard to patents that are registered not in the registrants own country but in the countries with the top 15 patent offices. Developing modern technologies is an extremely complex process that often requires cooperation across national borders. Between 2006 and 2011 such cooperation increased for all countries except China. Switzerland participated in the largest number of cooperative projects: 79.3 percent of Swiss patent applications in 2011 involved at least one developer from abroad. By comparison, less than ten percent of Chinese, Indian, Japanese, and South Korean patents involved developers from abroad. An important theme for many countries, including Germany, is the variety of people who are involved in the innovation process. For this reason, the Innovation Indicator 2012 also takes a look at the topic of diversity and its significance for the innovation process. In view of demographic change and the new challenges posed by globalized innovation processes, it is imperative to more strongly involve women, immigrants, and older employees in science and business. Nonetheless, it is still unclear whether the aging workforce is a blessing or a curse for the productivity
Top Countries by Patent Applications and where they File

Source: World Intellectual Property Indicators 2012
Top Countries in Terms of Number of Researchers and R&D Investments

Number of researchers 1,5 mn 178,183
Japan 287,580 China 415,829 USA 247,750 South Korea 138,034 Germany India 48,601 46,986 / 90,590 8,841 / 6,091
18,544 162,741
China
1,0 mn
European Union
USA
0,5 mn
Japan Russia
R&D expenditures (US$ in bn) 100 150 200 250 300 350 400 450
Picturing the Future. The ability to predict what the market may demand in five or ten years is one of the main factors influencing whether new ideas meet with success. Our experts use the Pictures of the Future method to develop scenarios that point us in the right direction, says Ltke-Entrup. For example, as a result of a scenario for power distribution developed eight years ago (see p. 102), we had to start thinking about how we could store large amounts of electricity, Ltke-Entrup explains. Experts quickly agreed that large-scale energy storage could be achieved only if electricity were converted into a chemical energy carrier such as hydrogen. At around the same time, researchers at Siemens CT were working on fuel cells for use in fuel cell power plants. This project did not get very far, but the technology the scientists refined proved to be very suitable for electrolysis. Here, a proton exchange membrane in an electrolyzer separates the electrodes on which hydrogen and oxygen form. Experts at CT built the first prototypes, and today Siemens Industry Sector is responsible for the further development and marketing of electrolyzers, says Ltke-Entrup. Its a classic example of how CT helps the Sectors develop new business opportunities. It usually takes a long time for an idea to mature, says Ltke-Entrup. Almost every scientist has a flash of brilliance at least once in his or her career and if perseverance and the right connections are added to the mix, a revolutionary innovation has a good chance of succeeding. Katrin Nikolaus
Patent applications in own country
Patent applications in other 14 top patent offices
0 0 50
Top Countries by % of Researchers Worldwide total Worldwide total and Publications 733,305 986,099
3,5
Worldwide total 5.811 mn Worldwide total 7.210 mn +0,7 +1,1
Top Countries in Terms of Comparative R&D Expenditures

R&D expenditures at purchasing power parity (in US$ bn) Percentage of global R&D expenditures 35
4,6 27,7 USA
23,1
-3,1
20,0
30
415 Europe*
-3,0
436 338 199
25 20 15 10
32,2
-2,7
29,5
42,5
Source:: UNESCO Science Report 2010
311 China Japan Rest of world India 33

1 2 3 4
149 38 148 45 41
13,9 2,3 2,4 11,1

% of researchers 2002
+5,8 -1,3 -0,1 +0,7
19,7 9,8
% of researchers 2007
2,2 3,1
5,2% 10,0% 2,6 2,3

% of scientific publications 2002
+5,4 -2,4 +1,1 +1,0
10,6 7,6 3,7 3,3
158
5 0
% of scientific publications 2008
R&D expenditures as % 0 of GDP
in %
* EU + Russia + Eastern Europe
2010
2012
Methodology of the Innovation Indicator
The Innovation Indicator examines 38 subindicators that are divided into five subsystems: economy, science, education, government, and society. Every subsystem contributes to a countrys overall innovation performance. The most innovative countries are those that reach the highest possible rankings across all subsystems; this means that they have well-coordinated innovation systems. In 2012 Germany had an indicator value of 56, which put it in sixth place, down two places from its rank in the previous report.
* EU + Russia + Eastern Europe
The Ten Most Innovative Countries

Rank 1 2 3 4 5 6 7 8 9 10 Overall index Innovation Switzerland 77 Singapore 63 Sweden 60 Netherlands 59 Belgium 58 Germany 56 USA 56 Denmark 54 Finland 54 Norway 53 Subindex Economy Switzerland 73 USA 61 Taiwan 60 Germany 55 Belgium55 Sweden 60 Singapore 54 Japan 52 Norway 52 South Korea 50 Subindex Science Switzerland 95 Denmark 87 Netherlands 76 Ireland 74 Finland 74 Sweden 71 Singapore 69 Belgium 65 Norway 64 Austria 63 Subindex Education Taiwan 81 Singapore 77 Switzerland 73 Australia 64 Belgium 61 Finland 60 Canada 58 Ireland 57 South Korea 54 USA 53 Subindex Government Singapore 100 Finland 79 Taiwan 63 USA 63 Switzerland 62 France 62 Netherlands 60 Canada 60 Sweden 58 Belgium 56 Subindex Society Netherlands 98 Sweden 87 Canada 84 Germany 77 Switzerland 73 Norway 72 Austria 72 Australia 67 UK 67 Finland 55
96
97
Source: Innovation Indicator
Source: Battelle, R&D Magazine (2012 Global R&D Funding Forecast)
15,0
15,7
30,9 ROW USA Europe* China Japan India 45,5% South Korea
-3,2
Sources: Number of researchers: figures for 2007 from UNESCO Science Report 2010; R&D expenditures 2012: Battelle, R&D Magazine
light to move ahead with the rapid development of the concept. A project of this scale for power electronics requires a lot of people and capital, says Weinhold. Siemens also had to develop a whole new environment for the converters, including electronic control units. The risk involved paid off, as Siemens became the first company to offer the technology. These days, modular multilevel converters are standard around the globe. Siemens remains the market leader and continually launches updated versions of the technology for example, HVDC-PLUS technology, whose turn-off power semiconductors enable rapid regulation and highly dynamic operation. A compact HVDC-PLUS facility is now efficiently transforming direct current into alternating current at the end of an 88-kilometer undersea cable link between Pittsburg, California, and San Francisco. Another such facility is now being built for the first highvoltage direct-current transmission line between Spain and France.
Leading through Innovation

Innovations are generally regarded as indicators of an economys growth and competitiveness and thus of a countrys prosperity. To date, Europe and the United States have drawn the most attention because of their capacity for innovation. But they are now encountering stiff competition in the marketplace of ideas. According to a recent study conducted by its percentage of the total has decreased more than that of all other countries combined. The report ascribes this drop to the fact that industrial R&D in the U.S. has been strongly affected by the recession and that many researchers have lost their jobs. The EU, which is the leading region in this study, also experienced a decrease. and innovative capacity of a country. Older employees are not necessarily less innovative than their younger colleagues, and vice versa, is the conclusion reached by a study conducted by the University of Rostock, Germany, in 2012 to determine the links between demographic change, aging workforces, and industrial innovations. Companies in many countries are now discovering the potential of teams in which people of various ages work together. In the diversity index, Switzerland is once more at the top, followed by Australia, Sweden, Finland, Belgium, and Ireland. Diversity is obviously the foundation of creativity. Internationality, an interdisciplinary approach, and a multitude of perspectives are other key components of holistic innovation processes all over the world. Gitta Rohling
How Ideas Mature | Patents
For each invention, Siemens patent attorneys decide whether, and in which countries, to file a patent application.
How Ideas Mature | Patents
beyond the current state of the art. It should not have been published, and it must have commercial utility. This applies to materials and machines, operating procedures, business methods, software, and algorithms. As soon as a developer reports an invention, patent attorneys search the databases of the worlds patent offices to determine whether anyone else on our interconnected planet has already had the same idea. Ultimately, a committee decides whether the potential product is worth the expense and effort of applying for a patent. Fleischers carbon monoxide sensor is an example. Things had to go very quickly there, recalls Ahlers. The sensor has the patent number DE102009015121A1, registered at the German Patent and Trademark Office (DPMA) on March 31, 2009 only three days after the invention was reported internally. Competitors would be thrilled to have this technology. This is a key patent,
500. These are followed by steadily-rising annual fees. Furthermore, since patent registration at DPMA provides protection only in Germany, additional registration costs for other commercially-relevant countries are required. Considered over the maximum 20year life-span of a patent, total charges can add up to 100,000 Euros. In the case of Fleishers gas sensor, the German Patent and Trademark Office has been protecting his idea since March 21, 2013, but other countries are still examining the application and that process can take between two and five years. Applying for a patent doesnt always make sense, because applying means disclosing. Experts carefully decide how to achieve the best protection; sometimes Siemens simply keeps a new software or a certain production process under wraps as a trade secret. And shouldnt the company be especially careful with applications in countries such as China,
times called minor patents with a smaller claim to inventiveness. But some minor patents are granted solely in China, because other patent offices consider the inventive element too slight. Chinese companies use this circumstance for a clever trick: They can try to take knowhow that isnt protected by a patent and relabel it by registering an already published invention themselves at the SIPO, the Chinese patent office. The rights are then owned by the Chinese company. In China, technology companies like Siemens therefore pursue a different strategy. We try to protect even small technical changes in high volumes, even if they dont seem particularly clever, says Hilmar Konrad, a Siemens patent attorney in the Building Technologies division, the field in which Fleischers carbon monoxide sensor could be applied. We dont want to risk being sued by Chinese imitators who have applied for intel-
The Business of Defending Ideas

Many of the assets owned by Siemens consist not of real estate, buildings or machines, but of intellectual property. Protecting this property is one of the primary responsibilities of 430 experts at Corporate Technology.
From left: Patent attorneys Wolfgang Zeiler and Thomas Roth,
In terms of external appearances, the offices of Beat Weibel and his team dont look very different from those of the finance department. The work done in them is similar too, because his team also deals with company assets. But Weibels experts are not concerned with financial assets, holdings in companies, real estate, buildings or machines. Instead, their business is intellectual property (IP). Weibel manages a staff of 350 at the largest German corporate department for intellectual property rights. Capitalizing on technical innovations isnt a trivial matter. Protecting them is expensive, and companies need a sound patent strategy. In fiscal year 2012, Siemens employees reported 8,900 inventions within the company itself, and Weibels team submitted approximately 4,600 initial patent applications. This represents about 41 inventions and 21 initial patent applications per day, assuming 220 working days in the year. According to the European Patent Office, Siemens came in
second, behind Samsung, in the European ranking in 2012, ceding the status it held in 2011 as the European champion in invention. Overall, the Siemens Group now holds approximately 60,200 patents. Compared to ten years ago, the Group receives twice as many reports of inventions, on average, from each of the approximately 29,500 employees in Research and Development in large part because of the excellent level of cooperation between patent attorneys and inventors. One of Siemens inventors is Professor Maximilian Fleischer. He is considered to be one of the worlds top sensor experts and is the co-inventor of 120 patent families and 759 individual patents. His sensors sniff out exhaust gases from turbines, detect odors in human breath, and monitor the air quality in buildings. Fleischers inventions are used in a great variety of fields: healthcare, building control systems, power plants, and smart grids. These valuable ideas must be protected
from competitors and from all others who are trying to copy them. One of the legal experts on Siemens IP team is Simon Ahlers. A patent attorney who used to do research on sensors, Ahlers is not only familiar with the legal aspects of his field, but its technical details as well. Each inventor at Siemens is supported by a patent attorney who has experience in the same field. This is the only way that patent experts can achieve broad and meaningful patent protection. They analyze the technological state of the art and the patent situation of competitors and organize invention on demand workshops in which participants look specifically for patentable developments in current subjects of interest. Weibel calls this turning the attention of inventors to areas where the wheels havent yet been invented. But what is a good idea? What kinds of things can actually be patented? The idea has to have a certain flair, says Ahlers. And it has to be new. In other words, it has to go
says Ahlers. The sensor measures the CO content of the air inside buildings and is an important innovation in building control systems. It can be used for fire detection or for measuring air quality, for example. Fleischer wanted to present his idea at a trade show for sensor suppliers, and thus make it public, just a few months after he reported the invention, so Ahlers had to act fast. Cost-benefit Analysis. A patent application isnt always submitted this quickly, and sometimes it isnt submitted at all. The latter might be the case for an invention that should be kept secret, or for which a patent would not be worth the costs. Significant factors in this calculation include how old the patent is and the number of countries in which it was registered. From the moment a patent is filed to the date on which it is granted there are internal costs, as wells as filing, checking, and annual fees. At the German Patent & Trademark Office (DPMA) initial charges are about
sensor expert Max Fleischer, and Erich Schmid, inventor of a process for increasing power production in combined cycle power plants.
where theres a likelihood of product piracy and improper use of intellectual property? Not necessarily, says Dr. Oliver Pfaffenzeller, a patent attorney and expert on Chinese law at Siemens. As it turns out, intellectual property rights have become much more stringent in China in recent years, which has adopted Germanys strict patent system as its model. This is particularly true with regard to the granting of patents, says Pfaffenzeller. In infringement law, theyve based their approach to some extent on that of the U.S. One important difference is the Chinese practice concerning industrial design. In some countries, including Germany, there are two different types of rights regarding technical intellectual property: patent rights and rights for industrial designs. The latter are some-
lectual property rights to the imitated technology. Key patents, such as the one covering Fleischers sensor, are not only viewed as protection for innovations. When properly managed they can be used against competitors, and make it possible to legally challenge potential imitators. Furthermore, with the help of licensing agreements with other companies, they can become the equivalent of a currency. In China there are now consulting centers that provide support for transactions with intellectual property, says Pfaffenzeller. At the European Patent Office, China ranks fourth in terms of the number of applications filed, behind the U.S., Japan, and Germany. Chinese companies are becoming more and more innovative themselves (p. 96). In the increasingly intense competition for technological leadership, it is thus becoming more important for German companies to protect their innovations in China so that they can defend their IP and avoid falling behind in global research. Silke Weber
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How Ideas Mature | Creating Ideas
TechnoWeb (map p. 101) and other Siemens platforms help share ideas. Dr. Bernhard Langs dike sensors (opposite) won an award.
How Ideas Mature | Creating Ideas
In a bid to obtain an 11 million contract for the medical diagnostic equipment of a pharmaceutical company, Siemens employee Alistair Gammie visited the pharmaceutical manufacturers production plant in Brazil after weeks of negotiations. During his tour of the plant, Gammie came across workers who were checking the print quality of bar codes. Around one million bar codes are printed every month and visually checked by our employees, explained the plants director. However, they still miss some printing errors. Such errors can cause expensive logistics problems because they might lead to the incorrect delivery of pharmaceutical products. Even though such problems arent really Gammies domain, he could not stop thinking about them. On Friday evening he sent an urgent request to the TechnoWeb network Siemens online ideas platform. Even though it was a weekend, colleagues from all over
duced Siemens TechnoSearch, the company has the two key elements it needs to exploit its latent potential. To find the right contacts for urgent requests, the system needs smart algorithms that are based on semantic techniques. Algorithms not only look for a questions exact words and tags but also similar expressions, explains Heiss. For example, if network participants have the tag Automobile in their profiles, the semantic technology knows that
petitions. Our Open Co-Ideation competition generates many new ideas because the various bits of knowledge that company participants possess are not only linked but also discussed and enhanced, says Christoph Krois, who has been responsible for innovation management at Siemens Corporate Technology for a year now. The Open Co-Ideation competition invites researchers from different departments to share their knowledge. The competition has been held seven times
Dr. Bernhard Lang, whose dike monitoring product is one of the worlds most modern early warning systems for floods. At Livedijk, near Eemshaven, Netherlands, the devices sensors measure the temperature and water pressure in the ground. The resulting data is evaluated by adaptive software, which displays the dikes weak points and provides early warning of a possible break. When the competition was held, Lang already had the concept prepared and only had
Focus Areas of the Current Service Contest

Benefits for the customer
R an isk d av se o cu ida rit n y ce Pe rf o in rm cr an ea ce se
Benefits for Siemens

op tim P r iz od at uc io t n pe rf P or ro m ce an s ce s O pt im sa ize le d s
C re ost du ct io n
gy er ncy n E ie fic ef
Distribution of Siemens TechnoWeb members
Knowledge-Sharing Culture
Knowledge increases when it is shared. Thats why Siemens has invested in a platform that contains the companys consolidated expertise. It has also launched an internal search engine. These steps have set the stage for an open and cooperative knowledge-sharing environment.
the world sent Gammie 23 replies in no time at all. After holding his diagnostics presentation on Monday morning, Gammie described four concepts for automating the inspection of bar code print quality. Gammies listeners were impressed and asked him how he had managed to solve this problem so quickly despite having no expertise in this field. He replied that within a few hours he had mobilized the combined expertise of 33,000 Siemens employees who actively participate in the companys global TechnoWeb. Sharing Ideas. Siemens experts are no longer restricted by national boundaries, as online idea databases and competitions link the research and development community worldwide. They enable employees to discuss problems, identify the best ideas, and bring their concepts to market maturity. Siemens already had social media long before anyone had heard of Facebook, explains Michael
Heiss from Siemens Corporate Technology (CT). The TechnoWeb online platform, which was founded in 1999, can be used by all Siemens employees worldwide to share ideas and research trends. Many of the topics that are hotly debated here will eventually become future trends, says Heiss, who comes from Austria. To work on a new topic, employees create a network in which ideas are gradually developed. If nobody follows up a suggestion, it means that the topic is rather uninteresting, says Heiss. However, if it attracts many participants, this demonstrates that the topic is of future relevance. Employees can submit urgent requests to the TechnoWeb in order to quickly find solutions for hot topics. In these requests, the user describes the problem, provides an estimate of its value to the business, and adds tags to link it to specific topics. The system then automatically selects the answers that might match the request. Users leave a digital trail on the TechnoWeb whenever they
work in networks or on specific topics. We use these trails to handle urgent requests, although we make sure that everything is done in conformity with data protection regulations, explains Heiss. Users who give their approval leave such a trail by pursuing a technology topic, commenting on a post, or assigning a tag to a request. If the trail matches the inquirers problem, the system will notify the user who submitted the request. Experience has shown that most inquirers receive several replies. Over 90 percent of the inquiries receive replies, with the first one often arriving within 30 minutes, says Heiss. TechnoWeb has evolved into a far-reaching platform that contains Siemens consolidated expertise. For a long time now, we have wanted to develop a kind of knowledge Google for Siemens, explains Heiss. It will consist of a search engine that creates lists that allow users to quickly find recent trends and experts within the Siemens network. Thanks to TechnoWeb and the newly-intro-
automobile and vehicle have almost the same meaning. However, this technique only works if the system knows all of the associated technical terms. The system is always learning new things, and as a result its collection of linked terms is steadily growing, explains Heiss. Winning Ideas. Researchers have also develop innovations with the help of idea com-
to date, and has met with an enthusiastic response from the Siemens community. The current competition (Data-driven Services@Siemens) was launched in the summer of 2013. Within six weeks, the competitions more than 1,200 active participants had generated almost 190 ideas, which were evaluated almost 1,000 times. A competition can quickly generate far more high-quality ideas than a small research team could possibly come up with in the same period, says Krois. Today you no longer have three researchers meeting in a small room to develop groundbreaking innovations on their own. Back at the companys online platform, participants can either submit their own ideas for the search field or support, comment on, evaluate, and expand on the ideas of their colleagues. The competition increases each participants knowledge and puts his or her skills to the test. After six to eight weeks, a panel of experts judges the ideas that have been submitted. Competition sponsors promote the best ideas and their creators receive awards. However, far more interesting for employees and developers than an award is the fact that their ideas are turned into good products and services for inclusion in the Siemens portfolio. The competition held in June 2010 is a good example. The best contribution in the Sustainable Portfolio Ideas category was submitted by Corporate Technology researcher
to submit it for consideration. After winning the competition, he was released from his duties at his department and given an extra budget so that he and his project team could turn the idea into a reality. TechnoWeb and the Open Co-Ideation competition exemplify new approaches for the generation of ideas, and they are causing Siemens corporate culture to change. Its no longer a case of my knowledge, your knowledge, or my precious secrets, because knowledge is the only thing that increases if you share it, says Krois. Its fascinating to exploit the huge amount of potential harbored by all of the companys departments. Many of the people who take part in TechnoWeb or an idea competition are looking for new challenges that go beyond their own topic areas. Moreover, they all know that you never stop learning, says Heiss, who points out, While it may be cheating to ask others for the solution to a question in school, asking the right questions and obtaining the knowledge one lacks is actually a strength! The right questions, quick replies, and unconventional methods of sharing knowledge also helped Gammie to gain a competitive edge. After all, a sales representative who is able to come up with a solution by tapping the expertise of his entire company is exactly the sort of contact to whom you can happily award an 11 million contract. Nicole Susenburger
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How Ideas Mature | Pictures of the Future
Energy technology scenarios developed by Siemens in 2002/2003 have turned out to be very accurate in many cases.
Future trends predicted: The Picture of the Future of manufacturing that was painted in 2002/03 portrayed much that is a reality today.
Wind farms on the open sea
Operating machinery via tablet
Logistics with RFID chips
Low-loss power transmission
Additive manufacturing
Smart power grids Security monitoring Combined cycle power plant Virtual product planning
Digital engineering
Predicting the Next Big Thing

Pictures of the Future is the name of this magazine and also of a method of investigating future trends and their effects on Siemens business operations. Ten years after the method was first applied, it is apparent that the conclusions it led to back then were fairly realistic.
In ancient Greece, people wishing to know about the future went to Delphi. In the Temple of Apollo, the Pythian priestess would deliver her oracles, most of which could be interpreted in various ways for example, concerning the outcomes of battles or Oedipus murder of his father. These insights were not produced by divine inspiration but most probably by the ethylene gas that seeped up through a crack in the earth under the altar and induced the Pythias clairvoyant trance. Today, people who want to predict the future dont need an oracle. Researchers toolboxes are filled with methods for picking out trends from surveys of experts or customers. One common process is road mapping, the extrapolation of existing business operations
and technologies into the future. Another popular method is the scenario, which assumes future technological, social, and political developments and then develops future scenarios and recommendations about the technologies that must be developed today in order to make such scenarios a reality. This method is a retropolation from the future. The results become even more precise if these two methods are combined. And it was exactly this combination of ideas that was developed by a team at Siemens Corporate Technology (CT) at the turn of the millennium. Their goal was to put technology trends into a business context that is, to find out how researchers and developers at CT and the research departments
of the companys business units could contribute to Siemens corporate development. For this purpose, the team invented a method that is among the best in their profession: Pictures of the Future (PoF). PoF is a well-known brand today, says Dr. Heinrich Stuckenschneider from CT in Munich, who has been a key developer of the method. PoF, the abbreviation used by Siemens employees, has acquired many admirers and imitators. Companies such as Samsung and Hyundai send their forecast experts to Munich to acquire PoF know-how. Other companies and organizations from all over the world have approached Siemens in order to create joint PoFs with their colleagues.
When Stuckenschneider is asked about the secret behind PoFs success, he always answers, Its close cooperation with the companys business units. Other futurologists pore over books and interview external experts in order to reach conclusions that are likely to elicit a consensus. By contrast, Siemens business units are always involved in formulating PoF predictions from the word go. We take our customers in the Siemens Sectors along with us on a trip to the future, says Dr. Falk Wottawah, who heads the PoF team at CT. And the clear target scenario that develops within the framework of the PoF process is our North Star. This is essential if the results are to be accepted and the recommendations are to be implemented. Tomorrows World in Detail. For this reason, PoFs are created at Siemens only if they are commissioned by a Division or a Sector. In 2002/2003, the first PoFs were developed for the Siemens working areas at the request of the Managing Board. After that, word of their success spread quickly, and in the following years PoFs were developed for building technology, industrial automation, energy transmission, and the lighting business.
Nonetheless, the PoF process cant be rushed. Experts at Siemens CT need at least six months to deal with a theme. They often conduct over 100 interviews, compile the results, and discuss them in several rounds with everyone concerned. It takes time to reach a consensus, says Wottawah. His team creates about three PoFs a year. For us, it never gets boring, he adds. The method also owes its success to a brilliant idea: PoF was meant to not only be a trademark but also literally live up to its name. From the very start, graphic artists translated PoFs into real pictures. The birth of the method was accompanied by the magazine of the same name, which today is published worldwide in nine languages and with a total print run of about 100,000 copies. As a method of forecasting the future, a PoF shows what the world will look like in ten years or more. Consequently, 2013 is a good time to test the conclusions that were reached in 2002/2003 and presented in Pictures of the Future. The scenarios created back then were good, says Stuckenschneider with a mixture of pride and modesty. And indeed, many of the PoF theses that were formulated ten years ago for the Energy and In-
dustry Sectors have turned out to be accurate. For example: Coal-fired power plants must be cleaner Power plants must operate more flexibly Gas turbines remain an important part of the energy mix Renewable energy sources are becoming competitive even without subsidies Distributed, decentralized electricity producers are being combined into virtual power plants Products and factories are being planned digitally Digital engineering is the key technology for global cooperation and faster market entry Products are being individually configured and provided with specifications Research and development, as well as training, are increasingly taking place in virtual worlds. These theses and many others have turned out to be accurate, some sooner than others, and some in a slightly altered form. The estimates arrived at in the Industry scenario Engineering 2010+ have been particularly accurate. They are based on very foreseeable technical trends that give the
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How Ideas Mature | Electric Mobility
calculations a stable framework. Here, the two most important trends are Moores Law, which says that the processing speed and storage density of microchips increase at a constant rapid rate, and the increasing digitization of many areas. Questions about Market Forces. Quite a few PoF conclusions have had concrete effects on the companys business operations. One of them was the prediction that renewable energies would experience a boom. This caused Siemens to buy the Danish company Bonus Energy in 2004 and to very successfully expand its wind energy business in the following years. In 2006 it became clear that the energy sector would experience many more key changes. The concept of the smart grid was a hot topic, and Italy introduced smart electric meters on a large scale. We realized there would be tremendous changes in the electricity market, recalls Prof. Michael Weinhold, chief technologist at Siemens Energy Sector. In 2006 the management of the Power Transmission and Distribution Division decided to commission a PoF of its own at CT. Corporate Technology then conducted more than 100 interviews with scientists, companies, and regulators all over the world; some of them lasted up to two hours. We asked open questions, had no preconceived theses, and began by simply listening, says Weinhold, who conducted some of the interviews himself. This approach yielded a very consistent PoF. Decentralized energy generation, customers growing awareness of sustainability, and the strong expansion of renewable en-
ergy sources all have come to pass, in some cases sooner than expected. However, Weinhold has changed his mind regarding the thesis that electric car batteries would serve as buffers for the smart electric grid. Today I no longer hold that belief, he admits. Thats because of new alternatives such as stationary electric storage units, load management, and thermal storage units for heating and cooling buildings. Another PoF finding that results vary significantly from region to region turned out to be very accurate, although no one could have predicted the details. Indeed, one need only compare Europes commitment to renewables with the U.S. boom in gas fracking to see this. The 2006 energy supply PoF also illustrates the fact that once a picture of the future has been created, it is not sacrosanct. There is a clear orientation toward certain goals, but the scenario has to be adjusted as circumstances change. This is necessary, for example, when society sets new priorities, as it did after September 11, 2001 (with profound effects on trends in security) and after Fukushima (with profound effects on nuclear energy). In another example, statements about industries that are very dependent on IT must be readjusted often. Trends such as big data, social networks, and mobile apps are revolutionizing many areas of daily life as well as the energy, traffic, and industrial infrastructures. In the area of energy, Weinhold is convinced that a new PoF that focuses less on technologies and more on market mechanisms will have to be created at some point. Thats because legislative amendments, such
as those affecting the German Renewable Energy Sources Act, have a considerable influence on the success or failure of a technology. Here it is obvious that, in addition to the technical feasibility and economic usefulness of a technology, social trends and political decisions also play a major role. However, these latter influences are difficult to predict. The Goal: Bringing People Together. At many Siemens business units, the PoF approach now often influences technological and business decisions that have strategic significance. It also promotes contacts with customers and partners, if only because of the illustrative pictures for the scenarios, which can give rise to interesting discussions. This approach has also inspired companies such as Royal Dutch Shell, one of the pioneers of the scenario approach to strategic business planning. Shell contacted Siemens because it had heard only good things about the PoF method and expected to gain useful input for its own approach. The observation that at Shell we move molecules and at Siemens you move electrons led to a guest PoF in which both partners investigated trends in future clean energy delivery. According to Wolfgang Hass, an innovation manager at Siemens Building Technologies, the greatest achievement of the PoF process is probably its ability to bring people together. He reports that the PoF his team conducted together with their colleagues from CT five years ago enabled them to easily enter into discussions with many customers, for example some from Saudi Arabia and Dubai. Its amazing the kinds of things they talked about with us after they had seen the PoF pictures, he recalls. For example, they talked about the organizational and logistical difficulties presented by the construction of the worlds tallest building, the 830-meter Burj Khalifa, and the need to label construction elements with RFID chips before they are delivered to a construction site. In this way we learned things that were much more exciting than the actual PoF theses, Hass says. In 2010 Siemens Industry discovered a surprising fact through a PoF. One of the PoFs findings was that recycling would become more important for Siemens. According to Robert Lock, head of the Advanced Development team at Siemens Industry, this led the experts to try to find out which companies were the key players for recycling. They arrived at an astonishing result. The global market leader in the recycling industry was none other than Siemens. We hadnt realized that, Lock admits. Bernd Mller
From concept to finished car, Siemens developed an electric version of the Volvo C30 in just a few months.
Test Drive in Sweden

For new ideas to be successful, customers have to be able to afford them. With its concept for the new C30 Electric, Siemens is entering the field of electric vehicle mass production.
Vision to Action: How the PoF Process Works

Pictures of the Future (PoF) is based on a method developed in 2000 by former Siemens managers Michael Mirow and Carsten Linz. This is the first method that combines the extrapolation of current business operations with a retropolation of comprehensive future scenarios. The future scenarios are based on stable frameworks megatrends such as demographic change, urbanization, globalization, and climate change as well as a database of approximately 1,000 identified individual trends from the areas of society, politics, business, and the environment. On the basis of these trends and their interactions, the researchers produce a convincing picture of the possible development of the current business environment of the area under investigation. Experts from Siemens Corporate Technology (CT) and their colleagues from the business units use this picture to create a most likely scenario and to precisely formulate hypotheses that are then discussed with external experts. The resulting PoF enables them to identify the most important technological levers and the scenarios effects on Siemens core business operations. That, in turn, indicates the tasks that must be accomplished today, such as which new technologies need be developed or which markets should be emphasized. The CT team has developed this method into a general framework that includes instructions about the PoF process itself. In addition, the Vision to Action concept is expected to further accelerate the practical implementation of future recommendations. This was first put into practice for a PoF that focused on the logistics of replacement parts.
I throw caution to the wind for a moment and floor the accelerator pedal. The motor kicks in powerfully and extremely smoothly, propelling the vehicle to 70 km/h in less than six seconds. The speedometer quickly climbs to 90 km/h. After that, caution returns. Youre not allowed to drive any faster than this here on the country roads outside Gothenburg in western Sweeden. Besides, Ive come here not to set a new speed record, but to test an electric car the new Volvo C30 Electric, the first vehicle built by a major automaker whose complete drive system technology comes from Siemens. Just like the vehicle, the engineers who developed the C30 Electric have also demonstrated their ability to get off to a quick start. The partnership between Volvo and Siemens, which was sealed in August 2011, was only a few months old when the first prototype hit the road. Normally, development of control software alone takes at least a year, since all possible driving situations must be taken into account. Things moved so quickly with the C30 Electric because Siemens used a tried and tested control system concept. The core of this concept is an algorithm weve been continually developing for years, says MalteMichael Ewald, who is managing the project at Siemens Inside e-Car. The algorithm is also used to control industrial units, mine vehicles, and hybrid bus drive systems. Most of the cars hardware, which consists of an electric motor and an inverter, also includes proven Siemens components. Here, a permanently excited motor is used a type of motor that works with permanent magnets. It has a continuous output of 89 kilowatts, which can be temporarily stepped up to 110 kilowatts. Its maximum torque is 250 newton meters. Compared to the first-generation C30 Electric drive, whose technology was not supplied by Siemens, output has increased by 20 percent and torque by 10 percent, even as the drive systems outer dimensions have remained the same. Still, it wasnt as if the cars developers could simply pull parts off a shelf and install them. Instead, they had to adapt components to ensure they would comply with the automotive industrys stringent quality standards. In addition, the drive system is housed in the front of the vehicle precisely the area where kinetic energy is converted into deformations in a crash. Although comparatively few units were produced, Volvo conducted its crash tests as meticulously as it would have done with a high-volume model. The country road is empty, so its time for the next test. I floor the accelerator and re-
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How Ideas Mature | Technology to Business
Munich is one of Europes leading centers of innovation. Siemens newest Technology to Business Center is in the thick of it.
Volvos drive systems will be standardized across all models. As a result, the company will use three and four-cylinder diesel and gasoline engines in only a few output classes in the future. It will adopt a similar approach with its electric models, which will also be equipped with standardized systems for use in different output classes. The range of vehicles will not be limited to battery-electric cars. Volvo is currently focusing on plug-in hybrids equipped with a combustion engine and an electric drive system with a battery that is rechargeable from an electrical outlet. Tried and Tested Technology. The Volvo C30 Electric wasnt originally planned as an electric vehicle or designed specifically to accommodate an electric drive system. The body was built at the Volvo plant in Ghent, Belgium, and was then shipped to Gothenburg, where the electric drive system was installed. This system includes a lithium-ion battery with a nominal capacity of 24 kilowatt-hours, which translates into a range of at least 120 kilometers in practice. Using tried and tested automotive technology is the right strategy when youre dealing with low unit volumes, says Konnberg, who points out that only 100 new C30 Electric models will be built initially. Half of these will be tested in Sweden and Norway. Siemens will make the other half available for use at various facilities. All of the cars will be equipped with a data-recording device that will collect information on driving profiles. This will provide us with important knowledge for the further development of the vehicles, says Ewald, who will use three of the cars himself for testing purposes. The data they provide will be utilized to refine components and software. Among other things, plans call for the inverter, which still consists of typical industrial electronic components and systems, to be modified for mass vehicle production applications. I park the C30 Electric on the outskirts of Gothenburg, in front of a hotel and right next to a Siemens charging station. Konnberg plugs it in. The battery will be fully recharged by the time we get back from lunch, he promises. An onboard charging device developed by Volvo enables the C30 to make full use of its 22-kilowatt charging power the maximum an alternating current charging unit is capable of delivering. Just ten minutes of recharging results in an additional range of 20 kilometers, Konnberg says, beaming with pride. However, even in Sweden, people dont eat their lunch that fast. Johannes Winterhagen
Instead of a fill up, recharge at a rate of 22 kW
lease, over and over again. Then I accelerate with my right foot and brake with my left at the same time. Finally, I repeatedly tap the accelerator at a speed of 30 km/h. All of these moves are completely illogical; only a driver whos distracted or panicky would make them. But nothing happens not even a jerk, and thats a good sign. Its almost as if the C30 Electric is saying to me, Go ahead, I wont lose my cool! But the Volvos stoic calm is not a given. Its a true art to design a drive control system that produces no surprising results, even when its operated in a completely haphazard manner. In the worst case, a flawed design could destabilize the entire control system, Ewald explains. Engineers from Volvo, who programmed the vehicle control system, worked with the Siemens development team to find a variety of solutions. One of these was to level out input signals. This ensures that the development and reduction of torque is always smooth, even during rapid load changes. Volvo manager Johan Konnberg, who is responsible for electric drive development, emphasizes how well the components of the onboard electronics system work together. He also praises the fact that everyone involved in the project learned from one another. As a relatively small premium manufacturer, we need strong supplier partners, he says, adding that he considers the C30 Electric just the first project in a far-reaching partnership. Indeed, Volvo plans to convert its entire product portfolio over the next few years. The goal is a uniform platform that will include a Scalable Product Architecture (SPA). Thanks to SPA, the automaker will be able to offer various vehicle body types from compacts to SUVs at competitive prices, even in small unit volumes.
An El Dorado for Startups

In Germany, as in Silicon Valley, recent college graduates are increasingly transforming their ideas into new companies. Siemens Technology to Business Center in Munich is constantly on the lookout for interesting technologies that need a little help to get off the ground.
Its Monday evening on the outskirts of Munich, and the offices and labs at Siemens Corporate Technology (CT) are slowly emptying out. Employees are heading toward the subway or to their cars or bicycles. Dr. Martin Prescher says good night to his colleagues but his working day is not yet over. Hes about to spend the evening, like many other
evenings, at a networking event called eMonday for budding entrepreneurs. Its the third Monday of the month, so the meeting will take place at the Hofbrukeller, a popular pub in the trendy Haidhausen district of Munich. But rather than guzzling beer, most of the one-hundred participants are drinking mineral water. After all, Prescher and the e-
Monday crowd have come not just to socialize but also to talk about new developments in the electric mobility sector. The evening is probably the biggest German networking event for electric mobility. Anyone with a good idea for a new technology that might solve one of the many problems associated with electric mobility is likely
to show up. Prescher is looking for such people, since some of them may have come up with ideas that could be of interest to Siemens. He and three colleagues are internal Siemens technology scouts who work for the Technology to Business Center (TTB) in Munich, which opened last year. The scouts establish contact with startups that are involved with technologies, products, or services related to Siemens, or that Siemens might deal with in the future. The scouts job therefore involves frequent attendance at networking events, congresses, and conferences for entrepreneurs. Siemens established its first TTB in Berkeley, California, back in 1999. A second one opened in Shanghai in 2005. Both of them have established numerous partnerships with startups. But there has also been a startup scene here in Germany and all over Europe for around ten years, and it is still growing rapidly, Prescher explains. We need to learn all we can about it. This explains why Siemens has established a third TTB in Munich. Dr. Stuart Goose, who worked for eight years at TTB Berkeley, is providing the new center with assistance. Most startups are still in Silicon Valley, says Goose, adding that the scene in Europe is not as advanced as its California counterpart Still, there are many reasons to believe that the startup boom will become more dynamic in Germany. For one thing, there are many government subsidy programs. Its now quite easy to get financing from the government, says Goose. Even more important are the many universities and research institutes that continually produce talented, highly educated graduates. The team in Munich has studied the innovation landscape in Europe and identified the most promising startup centers for the TTB. These include Munich, Berlin, Paris, Scandinavia, and the London-Oxbridge golden triangle. Siemens interest in startups is part of a strategy that is designed to enable it to work effectively with new companies, because talented individuals dont necessarily want to implement their ideas within a major industrial group. Even undergraduates at Stanford are focused on establishing startups, Goose explains. This trend has also been apparent for years at German universities, Prescher adds. Entrepreneurship has long since become more than just a buzzword; it is now a career option that is taken seriously. TTB scouts visit hundreds of startups in search of technologies that can help Siemens develop innovative products. You cant necessarily tell at first glance whether the tech-
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nologies that are being developed by entrepreneurs fit in well with Siemens business activities, Goose explains. Thats why the visits often resemble quick brainstorming sessions in which projects are discussed and certain catch phrases are dropped. In some cases, a remark might click for a scout, who will then realize which Siemens unit might be able to utilize the technology in question. The scouts are currently searching on behalf of the Siemens Rail Automation Business Unit for a company that can develop a rail monitoring system. The company has to have the hardware, such as sensors and wireless communication systems, and the software for processing and evaluating the signals, Prescher explains. The goal is to create a new system that can be used by rail operators to immediately detect and localize obstacles and other problems on tracks. The obstacles might include people or fallen trees. The system also must be able to determine whether components such as cables and metal parts are missing, because such items are often stolen from rail lines. We looked at many potential partners, but it was very difficult to verify their claims, says Prescher. TTB Munich therefore staged a kind of casting call at a Siemens rail test track near the Dutch border. The companies invited to the event set up their equipment while Goose and Prescher created potential scenarios for their systems. For example, they walked on the tracks, placed tree trunks on them, and even loosened some bolts. After we were done, we knew which company had the technology Siemens needed, Prescher explains. A cooperation phase then began,
with Siemens engineers explaining to the startups developers how they should refine their technology in order to enable it to meet the requirements of the Siemens rail automation systems portfolio. Our goal is to configure an externally developed technology in a way that will give Siemens not only the best solution but also one that is like no other in the world, says Goose. As a welcome side effect, startups that partner with Siemens immediately become much better known after they begin working with the company. In order to find the right business partners, the TTB team first has to know what Siemens divisions and units are looking for at a given time. We learn a lot through personal contacts inside the company, Prescher explains. In an effort to bring an even greater number of potential partners together, TTB also staged a DemoDay for Siemens Mobility and Logistics (IC MOL) Division. This event brought 40 Siemens development engineers together with representatives from some 25 startups. TTB selected the companies and matched them in advance with different development departments at IC MOL. For example, Augmensys, an Austrian startup, met with a team at IC MOL that focuses on service innovations. Augmensys specializes in linking data with a users actual location. The companys innovation makes it possible to display a buildings emergency exits, maintenance instructions, or circuit diagrams on a users mobile terminal. This technology, which is known as augmented reality, enriches the real environment with computer data an innovation that might interest Siemens Servicetools, for example.
Greenway, a startup based in Hanover, Germany, has developed service software in the form of an app that calculates the fastest route for a road user by determining the position and speed of all vehicles equipped with the app. It does this via GPS. An algorithm then determines which routes are at risk of becoming congested; after that the app recommends alternate routes. As Greenway founding partners point out, this feature also helps to prevent traffic jams, provided that ten percent of the cars on the road are using the app. A company called Carriva in Berlin has digitized traditional ride-sharing services. More specifically, it has refined ride-search criteria in a way that enables drivers and passengers to be precisely matched, even for short trips or daily commutes. Smokers, for example, can find drivers who smoke, and travel times can be precisely aligned. Its still not clear how, or even if, such new ideas can be incorporated into Siemens projects. However, it's important for Siemens experts to know that these companies exist, and what theyre working on. As Goose explains, You dont always have to reinvent the wheel. Sometimes theres potential for cooperation even when a startups technology doesnt appear at first glance to be closely related to Siemens business activities. The Vigour.io company is a good example of that. Vigour.io has created an online platform for further refining apps, and experts from Mobility and Logistics are very interested in this innovation. The new technology enables mobile terminals to share data without being connected to one another. Instead, all of the applications are configured in the cloud at lightning speed in a way that ensures that they can be run seamlessly on any terminal. The possibilities here include an infotainment system that asks passengers entering a train if they want to link up with the system. Once passengers confirm they want to participate, they begin receiving multimedia content or information such as offers to peruse the trains dining car menu or rent an electric car at the station where they are getting off. Of course all the startups weve approached have worked very hard to get Mobility interested in them, says Prescher. Many even brought along prototypes of their developments to the first meeting. Siemens Healthcare and Building Technologies Sectors also plan to stage DemoDays. After all, what could be better for a young and ambitious firm than to team up with a major global player one with a lot of stamina? A company like Siemens, for example. Katrin Nikolaus
What is the idea behind Startupbootcamp? Farcet: Startupbootcamp is a startup accelerator. As opposed to an incubator that protects startups, were like the rocket booster on the space shuttle; we give an intense short burst of energy and launch startups into orbit. Around 400 startups apply to each program and we select the best ten. They relocate to the program city and receive 15,000 euros in micro-funding, six months of free office space and connection
don, is still the European capital of Venture Capital and the government is very focused on incentivizing more private investment through, for example, special plans, such as the Enterprise Investment Scheme, which gives a 50 percent tax break on venture investments. Some European countries are very far from that. What qualifications does an entrepreneur need in order to be successful? Farcet: Thats the beauty of entrepreneur-
Finding Where the Fear Curve and the Experience Curve Meet
Alex Farcet (46) worked for a startup in San Francisco before joining the corporate world and traveling the globe for DHL for 12 years. Since 2007 he has gone back to the startup scene. Farcet is now the cofounder and Managing Director of Startupbootcamp, a European startup accelerator founded in 2009 with programs in Amsterdam, Berlin, Copenhagen, Eindhoven, Dublin and Haifa. He is also a partner at Rainmaking, a company factory with ten on-going startups and operations. He recently cofounded Angelsbootcamp, whose objective is to motivate and educate new angel investors in Europe. Farcet holds an MBA degree with a major in Operations Research & International Business from Tulane University in New Orleans.
to over 100 mentors most of whom are serial entrepreneurs. Why should an entrepreneur pick Startupbootcamp? Farcet: Were building the biggest network in six cities: Amsterdam, Berlin, Copenhagen, Dublin, Eindhoven and Haifa. We plan to be in Africa, Latin America, and Asia in a couple of years. In 2013 alone were producing 70 new startups. Is the culture of entrepreneurship different in Europe compared to the U.S.? Farcet: Generalizations are always risky, but I would say that in Europe there is still some stigmatization of entrepreneurs, especially those who have failed before. In the U.S., if you rise from the ashes youre an even bigger hero than if you were successful the first time around. In Europe there is still a conservatism pushing young talents toward traditional careers. Can you see regional differences within parts of Europe? Farcet: Regarding Europe, when we talk about internet and software entrepreneurs, there are more commonalities than differences they even get their news from the same blogs. Finally, there are 300,000 active angel investors in Europe but according to one estimate we have over three million individuals with the financial means to be active private venture investors. Thats a big upside to go after. The UK, particularly Lonship no diploma or qualifications are required. All you have to do is build something customers want to use. That being said, there is certainly a skill set to entrepreneurship. When we select teams to join Startupbootcamp we of course look at the originality of the idea or product and its market potential. But at this early stage we know its mostly about the quality of the team. Being an entrepreneur is such an uphill battle that we focus on a lot of soft skills such as persistence, receptiveness to coaching , communication and sales ability, and raw as well as emotional intelligence. Next youll ask me how we spot those we just know it when we see it. Are there any differences between entrepreneurs who focus on internet business ideas and those who prefer to deal with hardcore technology fields? Farcet: The entrance barrier to internet startups is lower, especially with developments such as socially-enabled viral marketing, cloud storage and distributed tools, which have dramatically lowered the cost of developing, launching and distributing software solutions and services. Today its quite feasible for a couple of co-founders with no technical skills to build a highly successful internet-based product. Still, when we select teams, we expect at least one of the cofounders to have technical skills, as we want them to be able to at least start building the product internally.
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Has Germany produced any outstanding startup ideas in fields such as environmental technologies and factories of the future? Farcet: I just attended the annual conference of Target Partners, a German Venture Capital firm. They were celebrating the recent exit of Joulex, which was acquired by Cisco Systems Inc. for $107 million. Joulex enables companies to manage the energy use of all their networked devices from printers to data centers. The fact is most people have never heard of Joulex but its a great German story. The founders started in Germany but built a global team with headquarters and sales in the U.S. Most of the engineers, however, were and still are based in Germany. They are now a key component of the Cisco network strategy. Do you have any advice for young entrepreneurs? Farcet: Theres a sweet spot in your life
where your experience curve and your fear curve are at the optimal meeting point, and the art is to find it. What I mean by experience curve is that many successful entrepreneurs start by solving a problem they have observed in the market. By fear curve I mean that the older we get the more is at stake. We tend to have a family to support, maybe a mortgage to pay. In general I would err on the side of start as young as possible. I love this quote by William Shatner aka Captain Kirk: The idea behind saying yes is it's easier to say no especially as you get older. It's easier to say no, I will not entertain that idea. No, I will not take a fresh look at something. No, I will not meet that new person. It's easier to stay at home. It's easier to insulate. It's more difficult and more dangerous to say yes to opportunity. But saying yes to opportunity is saying yes to life.
What is your vision for the world of startups in Europe by 2030? Farcet: More distributed, more global teams. Less barriers, more internet enabled technology. You will see startups with a British marketing team, a South African development team, and a German CEO, whose main market is China. They will be crowd-funded by hundreds of thousands of individual investors from dozens of countries. I am a French citizen, was born in Spain, went to boarding school in England, married a Danish woman, have worked in Eastern Europe and live in Berlin it doesnt get much more European than that. I hope we finally are able to rally our institutions around the Euro so that we have a truly integrated, more competitive and open market. That means one patent application, one company incorporation, one work contract, one set of taxes, etc. Interview by Hlya Dagli
Researchers are developing insights into altitude sickness using Mt. Everest as a living laboratory.
Siemens and Startups: Many Mutual Benefits

How is the expanding startup scene influencing major companies such as Siemens? Scheuble: Small innovative companies offer large corporations a look into the future. Such firms are sources of innovation, early indicators of new markets, and sometimes even the rivals of tomorrow. Many of them also are able to test technical innovations and new business models more quickly and flexibly than well-established companies can. Conversely, the international presence, global market access, and manufacturing capacities of large companies can help startups break through onto the international scene. As a result, theres great potential for cooperation between new companies and major companies like Siemens. How is Siemens reacting to these developments? Scheuble: Cooperation with startups is becoming more and more important to Siemens. Weve already made more than 150 investments in startups around the world through Siemens Venture Capital, and the Siemens Technology Accelerator (STA) now has ten years of its own experience with startups in Europe and the U.S. Our Technology to Business Centers in Berkeley and Shanghai have been successfully networking in local innovation clusters for more than ten years now. We also began applying this concept in Europe nearly a year ago in order to establish contact with the active and attractive startup scene on the continent. What new forms of cooperation are being established? Scheuble: Weve met with a very positive response in Europe, especially here in Munich, and weve already established many good relationships. One recent example is the Satellite Co-Location Center in Munich, which we established together with fortiss, the Technical University of Munich, and the European Institute of Innovation and Technology (EIT). The center is meant to serve as an innovation hotspot for business and science, with a focus on information and communication technologies. Here, people and companies with innovative ideas can work with us on research issues that are relevant to Siemens and demonstrate their own expertise. Interview by Katrin Nikolaus.
Cutting-edge Research at the Top of the World

During the summer of 2013, Mount Everests base camp was transformed into a research lab. Together with 200 volunteers, a team of scientists used the camp to study the effects of altitude sickness. The results might soon be used to develop new treatments for patients in intensive care.
Dr. Sven Scheuble is the Head of the Technology to Business Center at Siemens Corporate Technology.
Nothing but ice and rock as far as the eye can see. A huge glacier soars above the rugged landscape. At night, temperatures drop as low as 30 degrees Celsius below zero. The air is so thin that humans cannot survive for extended periods. It doesnt sound like an agreeable location to pitch a tent; yet this is the perfect location for research that might one day revolutionize the treatment of patients in intensive care. In the summer of 2013, a British-American research team set up their tents here at Mount Everests south base camp, 5,300 meters above sea level. They came 60 years after mans first ascent to the top of the worlds highest mountain, to learn more about how oxygen deficiency, also known as hypoxia, affects humans. This knowledge could help to increase the survival rate of patients in intensive care. The projects name, Xtreme Everest 2, says it all. Eleven doctors and researchers from University College London, the University of Southampton, and Duke University (North Carolina) spent 83 days at this inhospitable location, 49 of them at the base camp. The scientists were accompanied by around 200 volunteers willing to make the arduous climb to serve as test subjects. The doctors conducted thousands of tests on themselves and the other participants, taking more than 4,000 blood samples in the process. The scientists findings could save the lives of many people suffering from heart or lung disease. In 2011 Germany recorded more than two million cases that required intensive care. In the UK, one fifth of the population will spend time in intensive care at some point during their lives. Two fifths of these patients will die, in many cases as a result of oxygen deficiency, or hypoxia. Human beings can adapt to oxygen deficiency, although they do so at different rates, explains the expeditions leader, Dr. Daniel Martin, Senior Lecturer in Anaesthesia and Critical Care Medicine at University College London. For example, if 100 people get pneumonia, 25 of them will shake it off within a week. Half of them will have to be hospitalized and will take about four to six weeks to get better. The remaining 25 patients will be dead within a week, despite intensive care and the administration of oxygen. At the Mount Everest base camp, the atmospheric pressure is only half of what it is at sea level. This means that only half as much oxygen enters the lungs during inhalation. At sea level, oxygen saturation (i.e. the
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proportion of red blood cells carrying oxygen) is 100 percent, but at the base camp it drops to only 70 percent. This is equivalent to that of a person suffering from hypoxia. The human body responds to decreasing atmospheric pressure by producing more red blood cells so that a greater amount of oxygen can be carried in the blood. As with Dr. Martins hypothetical pneumonia patients, 25 percent of those who travel to this altitude suffer no problems as a result of the low atmospheric pressure. Around half contract altitude sickness and require additional oxygen. The remaining 25 percent experience extreme nausea, headaches or dizziness. Why some people can adapt to high altitudes better than others is a medical mystery. But this knowledge could play a key role in improving the treatment patients receive while in intensive care.
entists working on the Xtreme Everest project subjected 200 healthy people to oxygen deficiency, simulating the hypoxia suffered by hospital patients. The project team had already gone to Everest in 2007. Together with several other participants, Dr. Martin climbed all the way to the summit where, at an altitude of 8,848 meters, there is only one third as much oxygen as at sea level. The researchers took blood samples from one another only a few hundred meters from the peak. The level of oxygen in Dr. Martins blood was the lowest that has ever been measured in a healthy person.
well as identical twins and individuals who had taken part in the 2007 expedition. A group of native Sherpas also took part. Sherpas tolerance for hard labor and their ability to carry heavy loads at high altitudes made them an important part of the experiment. Scientists used to think that Sherpas can transport more oxygen in their blood than lowlanders, says Dr. Martin. But thats not the case. Their hearts function the same way as ours, and their oxygen supply is the same as well. The answer is that Sherpas can process oxygen better than we can. In fact, the researchers found out that the Sherpas micro-
Scientists hypothesized that the more nitric oxide a persons body contains, the better he or she can cope with high altitudes.
As was the case in 2007, expedition participants were examined using blood gas analysis devices from Siemens, which are robust and weigh approximately 11 kg. The expedition was accompanied by Siemens employee Steve Carey, team leader for blood gas systems maintenance at Siemens Healthcare in the UK. When Carey learned of the project he immediately took advantage of this opportunity to test his measuring devices on the worlds highest mountain. In addition to making sure that all of the instruments worked smoothly during the expedition, Carey served as a test subject. The conditions on Mount Everest were challenging not only for participants but also for the measuring devices. Prior to the expedition, Siemens simulated the mountains temperature and atmospheric pressure in an altitude chamber so that various systems could be calibrated to deliver accurate results. The instruments faithfully performed their tasks during the expedition, even though they occasionally needed a little assistance. We sometimes had to put an electric blanket underneath the devices so that the liquids they contained wouldn't freeze, says Carey. Early Morning Exercises. More than 60 tests were conducted on the volunteers. We got up at 6 a.m., conducted various blood tests, measured participants respiratory rate, and did a prescribed series of early morning exercises, says Carey. One impression remains particularly vivid for him. Many of the Sherpas had never before seen an exercise bike, he says. They had to do the same exercises as the rest of us, but some had to have their feet taped to the pedals because they kept falling off! The ongoing research project is being funded by donations. More than 850,000 has been collected to date, and an additional 250,000 is needed so that the data can be fully analyzed and all of the information and findings compiled in a comprehensive database. Thats why it is still too early to say anything definite about the final outcome. Initial results are expected in early 2014. However, the scientists have already made some surprising discoveries. Women seem to be able to handle high altitudes better than men, while older men are less affected by altitude sickness than younger ones. But Dr. Martin has a simple explanation for these findings: Young men tend to want to climb the mountain too fast, and that makes them more likely to suffer from altitude sickness, he says. On mountains as elsewhere, slow and steady wins the race. Nicole Elflein
In Brief
Without innovation there is no growth, and without growth there is no prosperity. But competition for new ideas is big. Emerging markets are increasingly investing in research and development. There is also a start-up scene on the Internet. No longer limited by national borders, it is sharing information at incredible speed. But how does an idea become a successful reality? The process requires a good network, a feel for trends, good business sense, start-up capital, and a lot of stamina. Two examples that illustrate this are an innovative power converter and an electrolyzer. (pp. 92, 95, 96) Anyone searching for new ideas will find it hard to ignore start-ups. Equipped with knowledge of the scene, Technology Scouts at Siemens search for interface opportunities for the company. How do you spot a promising start-up? We consider the originality of an idea or a product. We also look at its market potential and the quality of the team, says Alex Farcet, cofounder, President, and CEO of Startupbootcamp, in an interview. Likewise, tomorrows trends are not just a matter of speculation a fact that is demonstrated by Corporate Technologys scenario technique. For ten years this method has served as a reliable basis for making decisions about future developments. (pp. 102, 106, 108) The best way to quickly bring together as many bright minds as possible is to utilize the Internet. Siemens TechnoWeb is a platform for sharing ideas and researching trends across departmental and national boundaries. Idea competitions give this exchange additional momentum. (p. 100) External: Unusual approaches generate new insights. A research team relocated its activities to Mount Everest in order to study the effects of oxygen deficiency on 200 volunteer test subjects. The goal was to develop new treatments for intensive care patients. (p. 111) Successful partnerships lead to successful results. Within just a few months, Siemens and Volvo got an electric model of the C30 on the road. Proven components from the Siemens portfolio were modified to meet the quality standards of the automobile industry. (p. 105) Good ideas have to be protected. Siemens applies for around 40 patents each day. But which inventions are worthy patents? And in which countries? Does receiving a patent justify its cost? Patent attorneys at Siemens are confronted by such questions every day. (p. 98) LINKS: European Patent Office: www.epo.org Siemens Technology-to-Business Center: www.ttb.siemens.com Startupbootcamp: www.startupbootcamp.org Xtreme Everest 2: www.xtreme-everest.co.uk World Intellectual Property Indicators 2012: www.wipo.int/ipstats/en/wipi/ Siemens Innovation: www.siemens.com/innovation Alex Farcet, Startupbootcamp af@startupbootcamp.org Prof. Rainer Marquardt, Universitt der Bundeswehr Mnchen rainer.marquardt@unibw.de PEOPLE: Patents: Beat Weibel, Corporate Technology beat.weibel@siemens.com Simon Ahlers, Corporate Technology simon.ahlers@siemens.com Oliver Pfaffenzeller, Corporate Technology oliver.pfaffenzeller@siemens.com TechnoWeb/innovations management: Michael Heiss, Corporate Technology michael.heiss@siemens.com Christoph Krois, Corporate Technology christoph.krois@siemens.com Pictures of the Future: Dr. Falk Wottawah, Corporate Technology falk.wottawah@siemens.com Dr. Heinrich Stuckenschneider, Corporate Technology heinrich.stuckenschneider@siemens.com Siemens Inside e-Car: Malte-Michael Ewald, Industry malte-michael.ewald@siemens.com Technology-to-Business Center: Dr. Sven Scheuble, Corporate Technology sven.scheuble@siemens.com Dr. Martin Prescher, Corporate Technology martin.prescher@siemens.com Dr. Stuart Goose, Corporate Technology stuart.goose@siemens.com Blood gas measuring device/Xtreme Everest 2: Stephen Carey, Healthcare steve.carey@siemens.com
A typical day at the lab (left), Siemens Steve Carey exercises (center) and meets with Dr. Adam Sheperdigian (center) and Dr. Daniel Martin.
Patients in an intensive care unit suffering from hypoxia are always given additional oxygen, usually by means of artificial respiration. However, increased oxygen inhalation is not without risk. The treatments high respiration pressure can damage blood vessels in the retina, and breathing in too much oxygen can damage the lungs if done over an extended period. Instead of pumping patients full of oxygen, blood, and medication to enhance heart rate, we might find a way to slow down physiological processes so that the body has more rest and time to heal itself, suggests Dr. Martin. In their search for answers, scientists are faced with the dilemma that severely ill patients in intensive care can hardly be subjected to extensive medical tests. Simulations in altitude chambers are also inadequate for such large-scale research. Thats why the sci-
Magical Nitric Oxide. The scientists on the 2007 expedition were also accompanied by 200 healthy volunteers. At the base camp, the researchers used blood gas analysis devices from Siemens to examine the subjects. One of the first findings was that the human body seems to exhale more nitric oxide when there is little oxygen in the air. Nitric oxide gas expands blood vessels, causing blood to flow more strongly and thus improving the supply of oxygen to the body. However, the first expedition left many questions unanswered questions Xtreme Everest 2 set out to resolve. As a result, in 2013 some 200 participants once again climbed to the Mount Everest base camp and were examined at temporary labs that were set up at various altitudes. The participants included children aged eight to 17, who trekked to a lab located 3,500 meters above sea level, as
circulation is much better than that of other people and their blood contains far more nitric oxide. Whenever there is too little oxygen, Sherpas seem to respond by producing more nitric oxide. In samples taken at 3,500 meters, the breath of one of the normal participants contained 16.4 ppb of nitric oxide, while that of a Sherpa contained 77.8 ppb, added Martin. Nitric oxide increases blood flow and changes the way in which mitochondria process oxygen. Put simply, it enables them to make better use of the small amount of oxygen they get. The scientists hypothesized that the more nitric oxide a persons body contains, the better he or she can cope with high altitudes. As a result, patients in intensive care could conceivably receive medication that changes the nitric oxide level of their blood in the hope of increasing their chances of survival.
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We would be glad to send you more information. Please check the box next to the publication you wish to order and the language you need, and fax a copy of this page to +49 (0)9131 9192-8513 or mail it to: Publicis Publishing, Susan Grnbaum-S Postfach 3240, 91050 Erlangen, Germany, or contact us via e-mail at: publishing-address@publicis.de. Please use Pictures of the Future, Fall 2013 as the subject heading. Books: Life in 2050 How We Invent the Future Today (19.95) and Innovative Minds (34.90). More information is available at: www.siemens.com/innovation/lifein2050 or via the book trade Available issues of Pictures of the Future: (free of charge): Pictures of the Future, Fall 2013 (German, English) Pictures of the Future, Spring 2013 (German, English) Pictures of the Future, Fall 2012 (German, English) Pictures of the Future, Spring 2012 (German, English) Pictures of the Future, Fall 2011 (German, English) Pictures of the Future, Spring 2011 (German, English) Pictures of the Future, Special Edition Green Technologies (English) German Green City Index, analyses of 12 major cities (German) European Green City Index, analyses of Europes major cities (English) Your Pictures of the Future, youth issue 2012 (German) Additional information about Siemens innovations is available on the Internet at: www.siemens.com/innovation (Siemens R&D website) www.siemens.com/innovationnews (weekly media service) www.siemens.com/pof (Pictures of the Future on the Internet also in Spanish, Chinese, French, Portuguese, Russian, Romanian, and Turkish) Pictures of the Future is also available as a free iPad app at the App Store.
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> Home > Innovation > Technology Fokus > Innovations > Cooperations > Pictures of the Future > About Research & Development Innovation News Sep 13, 2013 | Mobile System for Railroad Switch Maintenance Thanks to a mobile inspection system developed by Siemens' global research unit Corporate Technology, railroad operators ... > Sep 13, 2013 | Special CT Improves Radiotherapy Planning A computer tomograph (CT) with special software solutions is helping to improve the planning of radiotherapy, thus ... > Sep 13, 2013 | Automated Comfort for Free-Range Hens A new control system from Siemens is providing free-range hens with more comfort and also reducing their risk of ... > > more News
Our Technology Focus
Pictures of the Future Which technologies will shape our lives over the next ten to twenty years? Siemens' Pictures of the Future magazine reports twice a year on major technology trends and looks at the latest research in the company's laboratories. >
Industry 4.0: From Powders to Finished Parts
Scenario 2060: Research into Underground Economy Alzheimer's: Village of Forgetfulness
Innovation Website
Enjoying the panoramic view from the top of an offshore wind turbine or watching the production of the worlds most efficient gas turbines close up these experiences are made possible by the new Siemens 360 feature. You can find this interactive format, which enables you to virtually dive into the world of innovations, on the pages of Siemens new innovation website at www.siemens.com/innovation. The site also offers an overview of the technology areas that are the focus of Siemens R&D activities, as well as a link to Innovation News, Siemens weekly media service that looks at new technologies. The online edition of Pictures of the Future magazine features more than 1,200 articles, photographs, graphics, and films, which together offer a comprehensive insight into Siemens laboratories and technology trends: www.siemens.com/pof
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The Energy Transition in Germany
The key to a successful energy transition is sustainability. If such a transition is to succeed, a series of interconnected measures must be taken. Thats because in the future the structures of energy systems will be much more complex, more networked, and more flexible than they are today. If all of these measures, together with the appropriate political framework, are carefully planned and implemented, the transition will be a model of success for others. Together with Siemens, corporate consulting firm McKinsey & Company conducted a research project to find out what Germany can learn from the tried and tested measures being taken by other countries. The study is available free of charge on the Internet at: www.siemens.com/future-of-energy/publications.html
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Publisher: Siemens AG Corporate Communications (CC) and Corporate Technology (CT) Otto-Hahn-Ring 6, 81739 Munich, Germany For the publisher: Dr. Ulrich Eberl (CC), Arthur F. Pease (CT) ulrich.eberl@siemens.com (Tel. +49 89 636 33246) arthur.pease@siemens.com (Tel. +49 89 636 48824) Editorial Office: Dr. Ulrich Eberl (Editor-in-chief) Arthur F. Pease (Executive Editor, English Edition) Florian Martini (Managing Editor) Hlya Dagli Nicole Elflein Susanne Gold Dr. Ulrich Kreutzer Katrin Nikolaus Additional Authors in this Issue: Dr. Fenna Bleyl, Dr. Hubertus Breuer, Christian Buck, Catharina Bujnoch, Nils Ehrenberg, Roman Elsener, Urs Fitze, Ines Giovannini, Julia Hesse, Dr. Andreas Kleinschmidt, Bernd Mller, Gitta Rohling, Sara Sauer, Bernd Schne, Hans Schrmann, Nicole Susenburger, Dr. Sylvia Trage, Sebastian Webel, Silke Weber, Andreas Wenleder, Johannes Winterhagen Picture Editing: Judith Egelhof, Irene Kern,Stephanie Rahn, Jrgen Winzeck, Publicis Munich Photography: Kurt Bauer, Oliver Beckmann, Max Etzold, Ivan Fleischer, Jrg Glscher, Axel Griesch, Claudia Guadarama, Martin Hangen, Heiko Jahr, Simon Katzer, Jens Ksters, Domingos Marques, Arthur Pease, Stefan Speidel, Volker Steger, Jrgen Winzeck Internet (www.siemens.com/pof): Florian Martini, Stefan Schrder Historical Information: Dr. Florian Kiuntke, Siemens Historical Institute Address Database: Susan Grnbaum-S, Publicis Erlangen Graphic design / Lithography: Rigobert Ratschke, Seufferle Mediendesign, Stuttgart Illustrations: Wolfram Gothe (pp.12-13, 90-91, title), Arnold Metzinger (pp.48-49) Graphics: Jochen Haller, Seufferle Mediendesign, Stuttgart Translations German English: TransForm GmbH, Cologne Translations English German: Karin Hofmann, Publicis Munich Printing: Bechtle Druck&Service, Esslingen Picture Credits: LanzaTech (4 r.), Portal da Copa (5 b.l.), gettyimages (14-15), Wien 3420 AG (16), schreinerkastler.at / Wien 3420 AG (16-17), MIT (20), private (21 t.), Lars Krger (21 b.), bab.ch (28 l.), Fotex (28 r.), Ultima Hora (32 b.), Arthur F. Pease (37 & 38 t.) laif (36 b.l., 45 m., 50-51, 53 b.), Mauritius (44 a., 44 b.l., 53 t.), F1online (52 l., 52 r., 70 m., 71, 78), Munich Re (56), 2012 PJM Interconnection (63 t.), dpa/picture alliance (68 l., 77 r., 84 t., 84 b.l.), Hans Sautter (68 r.), Corbis (69), Hawaiian Electric Company (70 t.), imago (73 t., 84 b.r.), Katalin Bodor Aquatim (73 b.), Stadt Stuttgart (77 m.r.), DFKI (82), Hawkeye Photography (95 l.), Fotolia (100), Volvo (105 t., m.r., m.l., b.l., 106), ddp (109) Illustrations: Ken Jatho, Hannah Stolz (106-107 background) All other illustrations: Copyright Siemens AG. Pictures of the Future, eSieFusion, eSieGuide, ACUSON S3000 etc. are protected brands of Siemens AG or associated companies. Other product and company names mentioned in this magazine may also be registered trademarks or product designations of their respective companies. Not all of the healthcare products mentioned in this issue are commercially available in the U.S. Some are investigational devices or are under development and must be approved or reviewed by the FDA and their future availability in the U.S. cannot be assured. The statements by Siemens customers described herein are based on results that were achieved in the customers unique setting. Since there is no typical hospital and many variables exist (e.g. hospital size, case mix, level of IT adoption), there can be no guarantee that other customers will achieve the same results. The editorial content of the reports does not necessarily reflect the opinion of the publisher. This magazine contains forward-looking statements, the accuracy of which Siemens is not able to guarantee in any way. Pictures of the Future appears twice a year. Printed in Germany. Reproduction of articles in whole or in part requires the permission of the editorial office. This also applies to storage in electronic databases or on the Internet.
2013 by Siemens AG. All rights reserved. Siemens Aktiengesellschaft Order number: A19100-F-P200-X-7600 ISSN 1618-5498

Siemens - Pictures of The Future

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www.siemens.

Pictures of the Future

Solutions for Tomorrows World

Resilient How Ideas Infrastructures Mature

Pictures of the Future | Editorial

Pictures of the Future | Contents

Joe Kaeser is President and Chief Executive Officer of Siemens AG.

Success Factor Innovation

How Ideas Mature

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148 150 153 156

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Pictures of the Future | Short Takes

Pictures of the Future | Short Takes

Biofuels from Steel Plant Exhaust Gases

S. Koreas Combined Cycle Power Plant Sets World Efficiency Record

New ceramics are helping to shrink transformers.

Ceramics Are the Key

Efficiency in the Arena

Vegetable Oil: Much More than Just a Salad Dressing

Bacteria make biofuels from steel mill exhaust gas.

Man Garrincha Stadium in Braslia.

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Pictures of the Future | Transition to Renewables

Germanys Energy Future

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Pictures of the Future | Transition to Renewables

Pictures of the Future | Africa

Challenges from the Customers Perspective

Angolans Come Home

Opportunities for the Energy Transition

Af fo rd Se ab cu ili rit ty y of su En pp er gy ly ef fic Cl Eu i i m ro en at pe cy e m -w pr at ide ot e e e c Su pro ne tio bs t r n id ect gy io an ie n d sa Hi p nd o cli gh in licy er no sh v ar at e io of ns re ne w ab le s

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Pictures of the Future | Africa

Pictures of the Future | Africa

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Integrated Systems | Scenario 2062

To commemorate the 2,500th anniversary of the

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Systems Integration | Scenario 2062

Integrated Systems | Trends

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Integrated Systems | Trends

Integrated Systems | Urban Energy Efficiency

The City Next Door

Actionable Energy Information for Cities

Municipal Data Center

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Smart meters, smart grids

Pictures of the Future | Fall 2013

Pictures of the Future | Fall 2013

Integrated Systems| Urban Energy EfficiencyAspern

Integrated Systems | Urban Energy Efficiency

Cities and Citizens: Benefitting from Systems Integration

Weather statistic during outage (+ -1 day)