Improving worldwide energy efficiency facing a high demand on efficient and renewable energy sources. The problem facing Siemens CEO Wolfgang Dehen is on where to put the emphasis, improving old fashioned alternative energy sources or working on new renewable energy sources.
Siemens, from a humble telegraph company in 1847 to a world leading company 150 years later. With around 427,000 employees worldwide. Siemens diversified its businesses, focusing on its early days on heavy-current engineering (electric lightning, electric cable cars and locomotives, radios, motion picture projector, vacuum cleaners…) Electrical engineering expertise helped Siemens to expand its activities to include electrical power generation and thus operating numerous electrical power plants. This helped Siemens to invest in R&D of alternative energy sources. Now Siemens is Proud to be recognized as a member of the Energy Industry Partnership Program which includes word leading energy companies in various energy sources.
Siemens energy claimed to be the “the only company worldwide that support customers with efficient products, solutions, and know-how along the entire chain of energy conversion from the production of oil and gas to power generation and the Transmission and distribution of electrical energy”.
Siemens claimed to be the fifth-largest installer of wind turbine power in 2009, and aims to become number 3 in 2012. The company’s portfolio includes all stages of wind turbine development which earned the company nearly 19 billion euros in revenues for the 2008 fiscal year. Siemens introduced a new 3.6 mw wind turbine featuring a 120-meter diameter rotor equipped with 58.5-meter-long rotor blades and a first-ever floating wind turbine of the coast of Norway in late 2009.
Siemens is the market leader in turnkey CSP plants, an area where the company can effectively leverage its size, experience in power-plant development, and reliabilities as a long term service provider. In 2009 Siemens acquired 24% stake in the Italian solar-thermal specialist Archimede Solar Energy (ASE)
Siemens has been involved in nuclear energy since 1955.
Siemens has been a strong player in hydroelectric power dams since 1881. Siemens acquired a contract for complementary high-voltage gas-insulator transmission line technologies for Chinas second largest hydropower plant.
Siemens has recently plagued by a bribery scandal that reached high into the management and directorate ranks, placing it to a temporary disadvantage compared to GE it major competitor. Moreover Siemens were sentenced to more than 1.6 billion US dollars in fines by the Germans and US authorities and it had to forgo bidding on any word bank contract.
RE generated just 11% of the revenues but nearly 21% of the profits in 2009. Compared to 39% profits from oil and gas power generation. •
Siemens effort in the nuclear energy research was put on hold in the 1990 by the German government which made a drawback compared to its competitors ho continued in this field of research. •
Even though Siemens is a strong player in hydro electrical power dms it has no stake in any other alternative hydropower technologies. •
Siemens currently has no stake in geothermal technologies.
Not only does Siemens have to put up with GE its major competitor but also with third party competitors such as Chinese manufacturers of wind technology products.
The upward increase of oil prices in recent decades in a dramatic roller-coaster fashion created a need of innovation to increase energy efficiency both in improving existing technologies and new breakthrough...
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