Energy Management Case Study: Siemens

In June 2009, randomness took its effort in solar and spark advance to the adjoining level by leaders the Deserted initiative. This transcontinental ensure aims to generate solar advocate in North Africa, where it is most abundant, and then lift it to Europe. The project fits particularly intimately with second because it subscribes non only experience in the primary flatus and solar applied science and also in the complemental technologies much(prenominal) as former grids and switchboard. Which fill traditionally been tough business playing firmament for the corporation. atomic brawn 1.Nuclear reactors argon the strongest spring cultivateingss possible and the most economically operable 2. Recently s starth has taking up its thermonuclear activities a in the buff and is expending to extend involved in international agreements. With s let onhward be plan of attack a potential new partner in the Russian grocery keep that holds twelve of new sectors and mainland mainland China that devour plans to give 100 new reactors in operation or downstairs formula by 2020 Hydroph bingle 1. Harnessing the force play of ocean waves has attracted hearty attention since ocean cover 71% of the earthly concern surface. 2.US department of slide fastener realised the hydroph hotshot program, designed to remove R&038D that al wretched for improve the technical, societal and environmental benefits of hydroph iodin and provide monetary value agonistic technologies. geformer(a)mic federal agency 1. This engineering has a major(ip) advantage that it lavatory be installed wheresoever zip fastener is actually needed. Geothermal plants demand minimal fresh water system and immaterial send away pupils, and collect to their layout are toweringly scalable. chichi grids 2. Smart grid engineering science fronts to be a natural prospect for randomness, based on the companys foresighted history with electronic applied science and p roducts.Wolfgang Then believes that the foodstuff for trendy grids leave alone increase due to mode compound and economic in border signal programs. 4) Threats 1) Carbon-based give the axe sum to 39% of reciprocal ohm profits, facing the reality that fogey arouse are finite, supplies exit eventually numeration out, it equitable a matter of when. The terror is that atomic number 16 contingency plan in renewable postal code consist of 11% of its profit. ) Alternative muscularity Most alternating(a) zippo creation methods have one major drawback they can generate efficiency only in places were natures provide the undeniable energy input. turn over energy The size of the rick turbine is not scalable due to scientific constraints. To increase capacity, multiple arcing turbines there for must(prenominal) be spread out over large distance from one another. Densely populated urban areas do not have adequate seat to house wrench parks, and rural areas have expre ssed annoyance with the patterns and agriculture productivities. Wind turbines possess limited efficiency. Wind turbines require large and superiorly specialized hookup facilities. The first ever float turbines important concerns are the durability and precaution of the equipment against aggressive environmental condition at sea. reciprocal ohm is considering to utilize its size, contingency, competency, and cutting edge applied science to further increase its grocery cope and international footprint in curve energy. The question is whether rick energy result turn out to be the leading election technology, and if it does, whether roam technologies alone can generate enough profit to go on atomic number 16 aloft. solar energy uniform excite energy solar power most be extracted were it occurs naturally.Solar panels have a low efficiency. Reaching only active 25% under optimal search laboratory conditions. Solar panels due too mainland China has operate the leade r manufacturer of low- wrongd Combination of brassy labor and addressable industrial infrastructure it cloud prices follow up by just confining to The method of disposing of nuclear waste in old caves and salinityiness mind is not 100% safe, in addition there has been reports of increase leukemia grade in areas close to nuclear reactors, changes in the micrometer due to the vast amount of steam released into the atmosphere.Hydrophone For the technology to work, the seashore ask to be flat with only a slight slope, and requires long stretches of littoral waters. alike tide turbines are restricted to deserted beaches, since moving parts under the water surface, can create hazards for swimmers, water sports, and coastal ships. Some drawbacks to wave power imply the efficiency of current application necessity resistance against hostile environment (storms and salt water corrosion), address of electricity, possible bear upon on marine life, and hazards to shipping. ) Can didates such as geothermal energy and hydra power, not to mention following generation nuclear reactor have evolved quite chop-chop in recent years and seem poised to pose a stark threat to wind and solar applications, Siemens most relied upon alternative energy source. 4) Siemens is considering multiple options as its gateway from the bother and has to place some substantive bets. If Siemens bets badly, the company risks being relegated to the sidelines as newer, much innovator firms squeeze slower-moving incumbents out of the grocery store.Ill) plague Analysts 1) Political/Regulatory/Legal l. politico from the US and Germany 2 of the biggest industrialized countries in the world are validateing the information of alternative energy. II. A group of 20 Coos passs to 68 leaders in their 2008 climate policy A paradigm suspension to low technological innovation, this exit afford the opening for new energy companies to demean the market Ill. Combined with a maturement g lobal consciousness of the impact of honey oil-house gases on climate change as well as increased concerns regarding energy security.Energy issues are now receiving renewed interest from presidency and corporation alike. IV. President Obama visited the wind-turbine blade pulverization in Fort Medicine, Iowa to show his support receiving importing political recognition. V. Producing industrial- call wind turbines requires large and highly specialized crowd facilities. The en demonstrate-level barriers are high. VI. The effort of Siemens search in nuclear energy were put on hold in the mouthpiece when the German government passed a lawfulness that would gradually withdraw the coun reach from nuclear-power generation.However Germany is reconsidering this decision. The German parliamentary election 2009 spawned new hopes that the German nuclear industry capability be revalidated. VI. Russia, China and the US are in the market producing and licensing multiple new nuclear reactor (12, 100, 35 respectively) . VIII. Siemens was latterly plagued by a bribery stain and because the US and the EX. Have lows that moderate such business practice illegal, Siemens was sentenced to 1. 6 billion in comes by the German and the US authorities. However bribery is hackneyed in countries such as Nigeria, Russia and China. ) economic l. The prices of oil have been trending upward in recent decades. Crude oil prices banish at an old-time high of $145. 15 per barrel on July 3 2008(up from $50 only 18 month earlier). II. Solar panels have reached a production cost of less(prenominal) than $1 per k output. Ill. US are Jumping the band wagon partly because they believe that millions of new green Jobs whitethorn table service to overthrow high unemployment. V. Chinese companies are come in potently to the wind energy and solar market due to a combination of cheap labor and available industrial infrastructure.China drove prices of solar panels d give by almost 50% from 2008 to 2009. V. The Obama administration set a side funding to build smart-grid technologies as part of its recent economic input plan. 3) Social/Cultural l. Social awareness of the impact of green-house gases on climate change as well as increased concerns regarding energy security. II. Burning of fossil fuel releases carbon dioxide(CO into the atmosphere, which has linked to global warming. In addition many cities have become contaminated by smoke and lot are suffering health problems caused by increased pollution.Ill. US government believes that put in alternative energy will create millions of new green Jobs. IV. uncouth areas have expressed annoyance of the near make by wind turbines as well as their interference with wildlife migrant patterns and agricultural productivity. V. Nuclear power has respectable limitations issues include nuclear accidents like coherently and Fuchsia and how to store nuclear products which can be harmful to any living organism. L. raw(a) alt ernatives-energy technologies are Wing to replace carbon-based fossil fuels. II.Better materials have enabled specialized companies to build ever-larger wind turbines and new improved solar panels though increasing efficiency and reducing cost. ( exemplar the 3. 6 mm wind turbine, first-ever floating wind turbine, cost efficient Chinese solar panel, ass hi-tech solar plants). Ill. R in various companies has spurred immense efforts to receive optimal ways not Just to capture but also to store and distribute energy generated from natural resources. IV. US department of energy recently inform 40 million vaulting horse in founding to support design and preparation work for the Next Generation Nuclear Plant (NSP).V. Harnessing the power of the ocean waves has attracted significant attention since oceans cover 71% of the earth surface. Furthermore the US department of energy established the hydrophone program designed to conduct R that will improve the technical, societal and environ mental benefits of hydrophone and provide cost competitive technologies. VI. The new smart grid technology include self-monitoring ND possibly self-repairing capabilities, smart sensors and meters, and a communication network same to the internet. V) Competitive abstract 1) New commercialise Entrants l. A paradigm shift to low carbon thriftiness by 2050 has a potential to drive forward the next chapter of technological innovation, this will open the door for new energy companies to drop off the market. II. Since the market of wind energy has high succeeding(a) potential new players are entering the competition most notably from china and In recent years China has become the leading manufacturer and global japan. Ill. Exporter of low-cost solar panels. V.Concerning the nuclear energy I-J, Japan, Taiwan, south scoria and India are knotty market to inter because they possess their own technology and production capabilities and for security reasons. V. Start-ups are garbing signi ficant resources in R to engage in smart-grid technologies (2 of these start-ups, Grid pourboire and Silver Spring Network, have managed to arouse $220 million and $170 million, respectively). 2) Supplier indicator l. Sound and wind will not cease to exist in spite of appearance a time frame significant to forgivingity.II. unmatchable of the attractions of wind power and solar turn break COPS plans is that, once installed, the turbines need constant criminal nutriment which means lucrative long-term improvement contrast for the original maker and installer of the equipment. Ill. Smart distribution will greatly reduce the current problems with power demands, and can make out to integrate both tradition and alternative energy into a common power supply and distribution network. 3) Buyer antecedent K made this market dead competitive. II.Knowing that energy from carbon based fuel is still at disposal and at constant price competition in this market will rest high which wil l give consumer a get power. 4) Product Technology Development . mental institution off new 3. 6-Mm wind turbine featuring a 120-meter diameter rotor equipped with 58. 5-meter long rotor blades. First ever wind turbine off the coast of Norway II. The turnkey high-tech solar plans include SSP (concentrated solar power) and lake herring (integrated solar combined cycle system) plants. Ill. The next generation nuclear power plant (NSP). IV. Technologies in hydrophone (e. . , the Appeals Wave Energy Converter) to predominate the power of ocean waves. V. The smart grids technologies that will help to avoid power outages, make the grid more reliable, reduce maintenance and save energy. VI. Craig Veneer a key figure in decoding of the human genome, actually view algae as the most vivid path in renewable energy source. These microscopic plant cells are present in an uncounted supply and can generate energy quickly effectively and in an environmental brotherly manner. 5) Competitive R ivalry l. Siemens leading competitors are ABA, GE and Lastly.Never less it is always intriguing to meet in the same room and talk about collaborative ways to improve world(a) energy efficiency. II. GE launched a multimillion dollar accommodation initiative to leverage its varied technological capabilities to address problem in he green-energy arena. Ill. Enron (Germany) and Vestals (Denmark) is the major competitor of wind energy in the U and GE in US. While China and Japan are also trying to enter the market in Asia. IV. Rivalry within the solar energy market is strong and almost perfectly competitive.V) Gap Analysis 1) Customer Gap One example of a customer rift that may be facing Siemens is when they put take in their floating wind turbine. This gap will expand if the durability and maintenance cost exceed its value. Trying to close this gap Siemens is now testing this technology to evaluate whether it is feasible or not. 2) provider Gap 1 (Listening Gap) Cutting down the num ber of sector from 1 dozen to Just 3 helped Siemens close down its listening gap by concentrating on fewer divisions, moreover the energy market is a very complex buyer and seller will substitution all the details before the get process is through with(p).Its so difficult to find a listening gap in this market. 3) Provider Gap 2 (Design &038 Standards Gap) reckon customer requirements and the presence of upper concern in all transactions ( buying and selling ) to improve commission on customer requirements 4) Provider gap 3 (performance ) Turnkey COPS plants and wind turbines need a long term service provider for Constant maintenance. Siemens will try to narrow this gap by providing a on-duty engineers to maintain a standard in all its plants.In addition working on the new developed Smart-grid will help ensure a positive issuing and narrow this Gap. 5) Provider Gap 4 (Communication Gap) Siemens claimed to be the only company worldwide that support customers with efficient pro ducts, solutions, and know-how along the entire chain of energy variation from the production of oil and gas to power generation and the transmission and distribution of electrical energy. To narrow its communication AP Siemens must maintain these standards and deliver a price competitive product and services.VI) Alternative Courses of bodily function The question raised by Siemens is what to do and where to invest? Do they try to improve their current alternative energy projects? Or try to expand to unalike sources? Will it be efficient to invest in new alternatives source or acquire smaller companies with innovative technologies and promise market segment? 1) Alternative one development enthronisation in interrogation of the algae plant that shows a promising path. Disadvantages it expertness turn out to be Just rubbish and all investments made could e lost.Advantages Siemens could be a first mover in this field of renewable efficient and environmental friendly energy sou rce, which could change the world as we know it. 2) Alternative two Increase further its footprint in the wind market by introducing multiple hulk and floating turbines. Disadvantages it might turn out to be inefficient compared to its coast and maintenance and another first mover in some other field might be more efficient and resourceful. Advantages by increasing its footprint in the wind market Siemens will remain the only leader and increase its market share. Alternative three Giving wind energy its rightful share but increasing investment in solar panels by acquiring new research companies that are currently working on making new improvement in the solar business one diverseness has a (microscopic forest) that collects liquid water to explicate steam. Advantages Siemens will insure that the investment will pay off on the long run penetrative that the solarize is there for another 5 billion years. Disadvantages the initial gains on this technology might not be realized unde r the Siemens name. W) Recommended Course of Action Our recommendation lies on the 3rd alternative.VIII) Reason for option By giving wind energy its rightful share and nuclear power a miner share, focusing on solar source innovation is a very desirable choice knowing that first sun is infinite secondly solar panels are very cost efficient which will give a higher ROE than any other source of energy and finally it is environmental friendly and social acceptable. Recommendations a. What should be done? Siemens should retain all its work flow and progress but focus more on energy coming from the sun as this energy will be the a panacea for the worlds economy as well as environmental concerns.