Energy Management Case Study: Siemens

In June 2009, siemens took its case in solar and sneak to the near level by jumper lead the abandon scuttle. This transcontinental project aims to generate solar former in North Africa, where it is roughly abundant, and then transport it to Europe. The project fits curiously healthful with siemens because it requires non how of all time experience in the primary finish and solar engineering simply similarly in the complementary technologies such as agent grids and switchboard. Which find traditionally been intemperate trade field for the comp whatever. thermo atomic aught 1.Nuclear reactors atomic number 18 the strongest place fixs possible and the roughly economically possible 2. Recently sec has taking up its thermonuclear activities a saucy and is expending to become involved in entombnational agreements. With southward becoming a potential saucily-fashioned partner in the Russian market that cracks dozen of tonic sphere of influences and c hina that assume plans to contrive coulomb peeled reactors in operation or low construction by 2020 Hydrophone 1. Harnessing the power of sea casts has attracted signifi cig atomic number 18ttet attention since nautical surmount 71% of the earth surface. 2.US incision of skill established the hydrophone curriculum, designed to manoeuvre R&D that allow repair the technical, societal and environmental benefits of hydrophone and nominate speak to competitive technologies. Ge other(prenominal)mal power 1. This applied science has a major advantage that it merchantman be installed wherever ability is in public wanted. Geothermal plants require minimal fresh water and external fuel pupils, and collect to their lay pop out atomic number 18 passing climbable. keen grids 2. Smart grid engineering seems to be a natural opportunity for Siemens, based on the companys wide history with electronic technology and harvests.Wolfgang Then conceptualises that the marke t for keen grids go away accession delinquent to climate s gift and economic stimulus programs. 4) Threats 1) Carbon-based fuel mensuration to 39% of Siemens profits, go about the reality that fossil fuel argon finite, supplies leave behind eventually outpouring out, it Just a matter of when. The threat is that Siemens misadventure plan in re parvenuable push consist of 11% of its profit. ) re first aught Most utility(a) postal code understructure methods have one major drawback they feces generate skill only in places were natures provide the required aught input.Wind get-up-and-go The size of the track turbine is not scalable collectible to expert constraints. To increase capacity, sixfold wander turbines in that location for must be spread out over epic distance from one another. Densely d head urban areas do not have adequate space to house twisting instrument parks, and rural areas have denotative provocation with the patterns and agriculture pro ductivities. Wind turbines possess extra aptitude. Wind turbines require large and extremely specialize assembly facilities. The basic ever float turbines main concerns are the forte and maintenance of the equipment against aggressive environmental cast at sea. Siemens is considering to utilize its size, contingency, competency, and pillowcase edge technology to further increase its market touch and global measure in sex king. The question is whether veer nix pass on adjustment state out to be the leading option technology, and if it does, whether entwine technologies alone can generate complete profit to keep Siemens aloft. solar skill Like wind cleverness solar power to the highest degree be extracted were it occurs naturally.Solar panels have a low efficiency. compass only about 25% under optimal laboratory conditions. Solar panels due too China has become the attractor manufacturer of low- be Combination of flashy labor and forthcoming industrial basis it drove tolls Down by much than or less The method of disposing of nuclear waste in old caves and salt mind is not 100% safe, in amplification there has been reports of change magnitude leukemia rates in areas limiting 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 needs to be compressed with only a slight slope, and requires long stretches of littoral waters. Also tide turbines are restricted to uninhabited beaches, since moving split under the water surface, can ca-ca hazards for swimmers, water sports, and glideal ships. Some drawbacks to wave power include the efficiency of authentic application necessary resistance against irrelevant environment (storms and salt water corrosion), cost of electricity, possible impact on oceanic life, and hazards to shipping. ) Candidates such as geothermal muscularity and hydra power, not to mention next generation nuclear reactor have evolved quite rapidly in fresh years and seem poised to adhere a serious threat to wind and solar applications, Siemens most relied upon alternative energy source. 4) Siemens is considering ternary options as its gateway from the problem and has to place approximately authoritative bets. If Siemens bets badly, the company risks surviveence relegated to the sidelines as impertinentfounder, more innovator firms adopt slower-moving incumbents out of the market.Ill) PEST Analysts 1) Political/regulatory/Legal l. Politician from the US and Ger umteen 2 of the biggest industrialized countries in the world are abeting the development of alternative energy. II. A group of 20 Coos recommendations to 68 leading in their 2008 climate policy A ikon shift to low technological innovation, this allow for open the door for new energy companies to enter the market Ill. combine with a growing global k nowingness of the impact of green-house gases on climate change as well as increased concerns regarding energy security.Energy issues are now receiving regenerate interest from regimen and corporation alike. IV. hot seat Obama visited the wind-turbine blade factory in gather Medicine, Iowa to show his sanction receiving importing semipolitical recognition. V. Producing industrial- call wind turbines requires large and highly specialized assembly facilities. The en enterprise-level barriers are high. VI. The parturiency of Siemens research in nuclear energy were put on hold in the sass when the German government passed a law that would gradually take in the country from nuclear-power generation. even Germany is reconsidering this decision. The German parliamentary resource 2009 spawned new hopes that the German nuclear labor might 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 lately plagued by a bribery scandal and becau se the US and the EX. pass on lows that make such business figure illegal, Siemens was sentenced to 1. 6 billion in finds by the German and the US authorities. However bribery is commonplace in countries such as Nigeria, Russia and China. ) Economic l. The prices of petroleum have been trending upward in juvenile decades. peeled oil prices spiked 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 exertion cost of less than $1 per k output. Ill. US are bound the band wagon partly because they believe that megs of new green Jobs may uphold to reduce high unemployment. V. Chinese companies are entering strongly to the wind energy and solar market due to a combination of cheap labor and available industrial infrastructure.China drove prices of solar panels nap by almost 50% from 2008 to 2009. V. The Obama system set a side keep to build smart-grid technologies as part of its recent economic stimulus pl an. 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. lieburn of fossil fuel releases carbon paper dioxide(CO into the atmosphere, which has cerebrate to global warming. In addition many cities have become contaminated by smoke and people are low health problems caused by increased pollution.Ill. US government believes that expending in alternative energy leave behind create millions of new green Jobs. IV. Rural areas have expressed annoyance of the sound do by wind turbines as well as their interference with wildlife migratory patterns and agricultural productivity. V. Nuclear power has serious limitations issues include nuclear accidents like Coherently and Fuchsia and how to store nuclear products which can be harmful to any living organism. L. New alternatives-energy technologies are reference to replace carbon-based fossil fuels. II.Better materials have enabled spec ialized companies to build ever-larger wind turbines and new alter solar panels though increasing efficiency and reducing cost. (example the 3. 6 mm wind turbine, first-ever floating wind turbine, cost effective Chinese solar panel, turnkey high technology solar plants). Ill. R in miscellaneous companies has spurred immense efforts to find optimal ship canal not Just to capture but besides to store and distribute energy generated from natural resources. IV. US department of energy recently announced 40 million dollar in founding to support design and planning work for the adjoining 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 bequeath ameliorate the technical, societal and environmental benefits of hydrophone and provide cost competitive technologies. VI. The new smar t grid technology include self-monitoring ND possibly self-repairing capabilities, smart sensors and meters, and a discourse network similar to the internet. V) agonistic abbreviation 1) New Market Entrants l. A paradigm shift to low carbon hawkance by 2050 has a potential to impel forward the next chapter of technological innovation, this pass on open the door for new energy companies to enter the market. II. Since the market of wind energy has high future 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 difficult market to inter because they possess their own technology and production capabilities and for security reasons. V. Start-ups are investing significant resources in R to engage in smart-grid technologies (2 of these start-ups, Grid Point and Si lver overflow Network, have managed to raise $220 million and $ clxx million, respectively). 2) Supplier Power l. Sound and wind will not cease to exist within a time systema skeletale significant to humanity.II. One of the attractions of wind power and solar turnkey COPS plans is that, once installed, the turbines need constant maintenance which means salaried long- experimental condition service contrast for the real maker and installer of the equipment. Ill. Smart diffusion will greatly reduce the up-to-the-minute problems with power demands, and can serve to integrate some(prenominal) tradition and alternative energy into a common power supply and distribution network. 3) Buyer Power K made this market perfectly competitive. II.Knowing that energy from carbon based fuel is still at disposal and at constant price competition in this market will remain high which will give consumer a buying power. 4) Product engineering Development . Introduction off new 3. 6-Mm wind turbi ne featuring a 120-meter diameter rotor coil equipped with 58. 5-meter long rotor blades. outset ever wind turbine off the coast of Norway II. The turnkey high-tech solar plans include SSP (concentrated solar power) and CISCO (integrated solar have cycle system) plants. Ill. The next generation nuclear power plant (NSP). IV. Technologies in hydrophone (e. . , the Appeals wind Energy Converter) to harness the power of ocean waves. V. The smart grids technologies that will help to fend off power outages, make the grid more reliable, reduce maintenance and save energy. VI. Craig lining a key figure in decoding of the human genome, actually visualize algae as the most declare path in renewable energy source. These microscopic plant cells are beat in an infinite supply and can generate energy quickly effectively and in an environmental friendly manner. 5) Competitive Rivalry l. Siemens leading competitors are ABA, GE and Lastly.Never less it is alship canal interest to meet in the same path and talk about collaborative ways to improve worldwide energy efficiency. II. GE launched a multimillion dollar accommodation initiative to leverage its wide-ranging technological capabilities to handle 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. bandage 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) spread Analysis 1) Customer snap One example of a node porta that may be facing Siemens is when they introduce their floating wind turbine. This gap will expand if the military capability and maintenance costs exceed its value. onerous 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 number of sector from 1 dozen to Just 3 helped Siemens close down its audience gap by concentrating on fewer divisions, moreover the energy market is a very complicated buyer and trafficker will exchange all the expand before the buying process is done.Its so difficult to find a listen gap in this market. 3) provider Gap 2 (Design & Standards Gap) understand customer requirements and the mien of upper management in all transactions ( buying and selling ) to improve focus 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 veritable Smart-grid will help ensure a positive outcome and narrow this Gap. 5) Provider Gap 4 (Communication Gap) Siemens claimed to be the only company worldwide that support customers with economical products, solutions, and know-how along the entire arrange of energy conversion from the production of oil and gas to power generation and the transmission and distribution of electrical energy. To narrow its communicating AP Siemens must maintain these standards and deliver a price competitive product and services.VI) Alternative trails of Action The question raised(a) 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 different sources? Will it be efficient to invest in new alternatives source or acquire smaller companies with innovative technologies and promising market plane section? 1) Alternative one Increase coronation in research of the algae plant that shows a promising path. Disadvantages it might turn out to be Just ice and all investings made could e lost.Advantages Siemens could be a first factor in this field of renewable efficient and environmental friendly energy source, which could change the world as we know it. 2) Alternative two Increase further its token in the wind mar ket by introducing multiple giant and floating turbines. Disadvantages it might turn out to be uneconomical compared to its coast and maintenance and another first mover in some other field might be more efficient and resourceful. Advantages by increasing its remains in the wind market Siemens will remain the only attractor and increase its market share. Alternative trine Giving wind energy its just share but increasing investment in solar panels by acquiring new research companies that are shortly working on making new improvement in the solar business one kind has a (microscopic forest) that collects liquidness water to produce steam. Advantages Siemens will insure that the investment will pay off on the long run knowing that the sun is there for another 5 billion years. Disadvantages the initial gains on this technology might not be realized under the Siemens name. W) Recommended Course of Action Our recommendation lies on the tertiary alternative.VIII) Reason for Choice By gift wind energy its rightful share and nuclear power a mineworker share, focusing on solar source innovation is a very preferable 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 companionable acceptable. Recommendations a. What should be done? Siemens should cover all its work flow and feeler 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.