Siemens 2010 Annual Report Download - page 42

14 Foundation 4 Introduction 26 Structure
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duction. The demand for CO
2
-neutral power genera-
tion is also growing. Over the last few years, we’ve
expanded our portfolio in this area, too. In every
case, our acquisition strategy is the same: to be
No. 1 or No. 2 in all our technologies and markets.
Why? Because it’s the only way we can drive profit-
ability and growth in order to achieve a sustainable
increase in our company’s value. In the field of solar
technology, for instance, we’re a major supplier of
steam turbines, electrical and control technology
and inverters as well as generators and cooling sys-
tems for solar power plants. Our electrical and auto-
mation technologies are also facilitating the effi-
cient production of high-quality solar mirrors and
receivers. In the spring of 2009, we acquired a
roughly 30 percent stake in Italy’s Archimede Solar,
enhancing our portfolio with key components for
the solar thermal systems of tomorrow. Our acquisi-
tion of Solel Solar at the beginning of fiscal 2010
made us a full-range provider for the solar thermal
power industry.
As a member of an industrial consortium, we’re in-
volved in planning large-scale solar thermal power
plants and wind farms in the deserts of North Afri-
ca. The clean electricity generated by this project –
known as the DESERTEC Industrial Initiative – will
cover most of the power needs of the producing
countries and, in the project’s final stage, also meet
about 15 percent of Europe’s electricity require-
ments. We’re bringing our extensive knowhow in
the fields of solar thermal technology, wind energy
and power transmission to bear in this promising
future market. But projects such as DESERTEC pose
new problems for power grids. In the future, sub-
stantial amounts of electricity will be generated
from fluctuating sources of energy like the wind,
the sun and a growing number of small, decentral-
ized power producers. This electricity will then have
to be integrated into smart grids that can balance
power generation and distribution. To capitalize on
excellent market opportunities in this area, we’ve
established a company-wide smart-grid applica-
tions project. Bundling our expertise, this project
aims to further boost our revenue from intelligent
grid technologies. Other sources of tremendous po-
tential include buildings, which are increasingly
evolving from mere energy consumers to active par-
ticipants in the power market. These so-called smart
buildings can store energy and even generate elec-
tricity that is fed back into the grid.
As our Environmental Portfolio demonstrates, we’re
already well positioned in all these fields. Generat-
ing revenue of about €28 billion, the Portfolio has
not only made us the world market leader in green
technologies; it’s also driving progress on three
fronts: for our customers, by enhancing their busi-
ness success through lower energy costs, higher
productivity and profitable growth; for society, by
implementing our technologies to help protect the
environment and improve living conditions; and for
our company, by enabling us to penetrate attractive
markets and generate profitable growth. As a green
To meet 15 percent of Europe’s electricity requirements
with renewable energy –
That’s the ambitious goal of an industrial consortium
of which we’re a founding member and technology partner.