Siemens Building Technologies Renewable Energy Laura Berland-Shane Siemens Building Technologies OCBC Presentation July 14, 2009

Agenda  Introduction  Laura Berland-shane, Alternative Energy BDM  About Siemens Building Technologies, US  Discussion on Renewable Technologies  Case Study: Solar  Financial Options  Regions for Best Opportunity  Questions

How we help our customers Building Automation Building Automation Energy & Environmental Energy & Environmental Fire Safety Security Siemens Building Technologies HVAC

About Siemens Building Technologies, United States National Leadership – Local Presence Customer Satisfaction is our core value We improve facilities by making them comfortable, safe and secure, and less costly to operate Energy and Environmental Solutions  Market leader in energy savings performance contracting  Extensive experience in key vertical markets – Government, Public Housing, Education Building Automation and Controls  Full featured, customized solutions  Integration of multiple building systems  Industry’s first wireless system Security Systems and Solutions  Seamless systems integration and management  Remote location monitoring  Diverse product and solution portfolio Fire Safety  Seamless integration with existing building management systems  Broadest product line in industry  High risk and specialty applications

North Region Siemens Building Technologies U.S. Locations West Region South Region Headquarters: Buffalo Grove, IL

Siemens Building Technologies U.S. Employees (thousands) Sales (billions of US$) Locations Customers (thousands) HQ Buffalo Grove, IL

Siemens Qualifications Siemens and Energy  Over 275 energy professionals nationally  Over 2 Billion dollars in guaranteed energy savings for projects implemented since 1995  Over 6,000 energy related patents  Thousands of energy audits and LEED assessments performed annually throughout US  Global Presence

The Challenges: Clean Energy Generation Water Filtration/Reclamation Green Buildings Emissions Control Output Efficiency Energy Star Lighting Waste to Energy Energy Management Consulting Intelligent Traffic Systems Mobility Communications Hybrids/Green Diesel Research/Modeling Our Answers: What We Offer: Innovation, Efficiency, Sustainability Fresh Water Clean Air Energy Supply Saving Resources Mobility

Renewable Energy: Project Types Solar Wind Biomass Landfill Gas Digester Gas Waste-to- Energy

Solar Electric Power  Recognizable environmental commitment/reduces carbon footprint  Uses local resources, reduces demand for imported fossil fuels (NG, Oil)  Solar panels have a 25-year warranty, 35+ year life  Solar power provides peak power, offsets most expensive electricity  Warranties backed by substantial companies, e.g. BP, Shell, Sharp, Kyocera  Low maintenance (~1% total project cost/yr)  Available in various configurations (rooftop, parking canopy, ground mount)

Solar Power Rule of thumb: 1MW solar power needs 80,000 square feet of roof space Technology improvements – thin film, increased panel efficiency, storage Project costs continue to decline

Solar Economic Incentives Federal tax incentives (30% now avail as a grant per ARRA) 5 Year MACRS accelerated depreciation available + 50% Bonus Depreciation (ARRA) California Solar Initiative - SoCal Ed step 5 at 0.15/kwh Some examples of Municipal utility rebates available - Anaheim: $2.80/watt AC or $.39/kwh - LA DWP: upfront 20yr payment $.11- $.14/kwh.( Equiv. of $4.50/watt AC) - Glendale: 4 year PBI $.49/kwh - Pasadena: 5 year PBI ($ $.632/kwh) Renewable Energy Certificates (RECs) As a tax-exempt institution, you can not monetize most incentives …unless you go with a Power Purchase Agreement (PPA)

Financial Options for Solar-Tax Exempt Entity PurchaseCapital LeasePPA Upfront Cash Outlay √ xx Monetize Federal Tax Incentives xx √ Monetize Accelerated Depreciation xx √ Maintain Equipment x √ x Contract Term x years15-20 years Ownership √√ Buyout available after 7 yrs. REC Ownership √√ maybe

Benefits of a Power Purchase Agreement (PPA)  Allows tax-exempt institutions to monetize tax credits and depreciation  Green power for less cost than “brown power”  Fixed price hedge against significant utility cost increases  All the benefits of solar power without the hassles of ownership  No capital required  No complicated rebates and tax credits to manage  No maintenance and repair responsibilities  Highly visible solar project drives green marketing  Solar power reduces fuel price volatility impact on electric costs

PPA Model Host Customer Project Developer SIEMENS Manufacturer& Installer Investor  Purchases electricity services at a fixed price schedule  Provides legal access to facility  No capital requirement  Receives revenue from sale of panels, inverters  Provides warranties for equipment and performance  Receives low risk ROI from electricity sales, state & federal incentives  Provides capital and owns equipment  Arranges financing, system design and construction On-site solar PV system Solar Services Agreement Equipment, installation, & warranties Sales and O&M revenues Financing Solar Services

1.16 MW Solar PV Project

Case Study: Solar Energy Installation Siemens Transportation Services Sacramento, CA Key Challenges Need for additional parking to accommodate growth Support corporate-wide sustainability initiatives Address need for greater predictability in energy pricing Solution 180 new parking stalls Expedited permitting process with solar component 1 MW solar project; over 5,000 panels, supplying ~50% of building load Weekend generation sold back to electricity grid Prevents over 700 tons of CO 2 annually

Siemens/ Shaw Waste to Steam Plant

Carpet and wood to energy – Project has been completely operational for 2 years on July 1 – 10,000 tpy of both carpet edge trim and wood waste are shredded and gasified to produce 50,000 pph of steam – Carpet plant has the lowest energy cost of all Shaw carpet plants – Two people per shift operate and provide day to day maintenance – Plant has 85% uptime – Plant utilizes almost 80% of waste

Questions?