Coal, Combined Cycle, Gas

Siemens secures service agreements for power plants in Germany, Portugal and the United Arab Emirates

March 22, 2004 — The Siemens Power Generation Group (PG) has posted long-term maintenance agreements for three combined cycle power plants.

The total order value amounts to approximately EUR440 million. The plants for which these agreements were made include the BASF AG Ludwigshafen site in Germany; the CPPE – Companhia Portuguesa de Produção de Electricidade-Grupo EDP plant in Central Termoeléctrica do Ribatejo, Portugal; and the Shuweihat O & M Limited Partnership plant in the United Arab Emirates. PG will perform an extensive maintenance program for the combined cycle power plants for terms ranging between 12 and 16 years.

Under these long-term contracts Siemens PG will oversee scheduled and unscheduled maintenance and repair, and also provide program management for servicing a total of nine state-of-the-art gas turbines, two steam turbines and generators and the associated instrumentation, controls and electrical systems. The owners also will benefit from contractual guarantees for power output, heat rate and availability.

In today’s competitive power generation environment, plant availability, risk management and predictability of costs play a decisive role in the award of gas turbine service contracts. Long-term programs (LTPs) ensure the power plant operators a comprehensive solution for spare parts delivery, repair work and the performance of major overhauls and inspections.

Siemens has developed advanced, remote monitoring centers that are an essential part of the maintenance strategy. Remote diagnostics provides key operational information that may lead to future performance issues. By recognizing these trends early, Siemens can provide recommendations for corrective actions. As a result plant performance and availability improve significantly.

Siemens Long-Term Programs also offers plant owners other benefits. One such benefit is having access to technical support for future improvements and modifications of their power plants. From a financial standpoint, LTPs also provide owners with a more predictable cash flow, which makes a project more attractive.

Long-term maintenance programs have been widely used since the last half of the 90s. For example, Siemens PG sells almost all new power plants in a package with long-term service agreements. To date, Siemens has entered into nearly 100 such agreements worldwide for more than 200 gas turbines.

The Power Generation Group (PG) of Siemens AG is one of the premier companies in the international power generation sector. In fiscal 2003 (which ended September 30), Siemens PG posted sales amounting to approximately EUR 7 billion and received new orders totaling EUR 7.3 billion. Group profit amounted to EUR 1,171 million. On September 30, 2003, PG had a workforce of more than 30,000 worldwide.