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worldwide - which is equal to the entire annual outputof the world metropolises of Hong Kong, London, NewYork, Tokyo, Delhi and Singapore. More efficient traffic is particularly important for cities. From São Paulo and Mexico City to New York, the megacities of this world share one problem:traffic is on the verge of collapse - and it is responsiblefor roughly 16 per cent of greenhouse gas emissions.As just one response to this challenge, Siemens has added electric motors to London's double-decker buses that make use of stored braking energy. This Siemens development is expected toreplace all of London's 8,000 conventional buses over the long term. It is currently being used in many countries around the world, from the UnitedStates and Brazil to China and Germany. The success of this hybrid technology: up to 40 per cent lower emissions and about 30 per cent less fuel consumption.Yet mass transit is not the only area where cities willlessen environmental impacts. We will be seeing anever greater number of electric vehicles on the streets.Electric motors use energy about three times moreefficiently than internal combustion engines. And theydo much more: when wind and solar power plantsproduce too much energy at times of low demand,electric cars can temporarily store this energy in theirbatteries and profitably feed it into the grid as needed.Renewable energy sources will guarantee that theoperation of electric cars is extremely environment-friendly - and the cars, in turn, will ensure that theshare of renewable energy in the power mix can grow.This is a real win-win situation!However, intelligent power grids are needed to makethis future a reality. These so-called smart grids, whichwill control the complex power flows of the future andpermit greater transparency as well as flexible billingmodels, are an important piece in the energy supplypuzzle of the future. In the future, buildings will also be integrated into theintelligent energy grids. Heating, air conditioning,ventilation and lighting account for roughly 40 per centof energy consumption and just under 20 per cent ofall greenhouse gas emissions. The New York TimesBuilding in Manhattan demonstrates that this does not have to be the case. An automatic buildingmanagement system from Siemens controls the airconditioning, water cooling, heating and powergeneration functions. It takes into account not only theinternal and external temperature, but also buildingoccupancy, the angle of incident sunlight, and thepresent capacity of the combined heat and power andsolar plant. A network of hundreds of sensorsthroughout the complex determines all of thisinformation in real time. What is remarkable is thatintelligent building technologies like this can cutenergy consumption by up to 40 per cent.INNOVATION 054TECHNOLOGYRight: Shining brightly,thanks to 12,000OSRAM LEDs, the arch ofthe stadium in Durbansymbolises the newSouth Africa anddemonstrates the multi-faceted possibilitiesassociated with energy-efficient urban design.Below:Peter Loescher,CEO Siemens Large-scale projects of this type are not luxuries in rich industrial countries, but even less affluentmunicipalities can afford to modernise their buildingtechnology. The Siemens solution for this type ofmodernisation is known as performance contracting.The first step is to define the energy saving goals. If thesavings justify the investment, an energy managementagreement is concluded. The investment is paid for ininstallments using a portion of the contractuallypromised savings in energy and operating costs.Therefore the customer does not have to invest a singlecent of their own money. Performance contractingsolutions have also become recognised for other typesof modernisation work, like converting traffic lightsystems from incandescent bulbs to the much moreefficient and longer-lasting light-emitting diodes.Climate protection is likely to be most evident in thegeneration of clean energy than in any other segment.Wind power plants offer a practically inexhaustiblepotential in this area. As the market leader in offshorewind power, with a current order volume worth roughlyPhotos: Siemens AG

this prediction: the city of the future will be green. nFor more information please THE AUTHORPeter Löscher has been President of the ManagingBoard and Chief Executive Officer of Siemens AG since2007. In 1985, he became a Senior ManagementConsultant in the Kienbaum Consulting Group. From1988, he held various positions in the Hoechst Group.In 2000, he became Chairman, President and CEO ofAventis Pharma Ltd., Japan. In 2002, he becamePresident of Amersham Health and then ChiefOperating Officer at Amersham plc. In 2004, he joinedGeneral Electric as President and CEO of GEHealthcare Bio-Sciences. In 2006, he becamePresident of Global Human Health at Merck & Co., Inc.ABOUT SIEMENS AGSiemens AG (Berlin and Munich) is a globalpowerhouse in electronics and electrical engineering,operating in the industry, energy and healthcaresectors. For over 160 years, Siemens has stood fortechnological excellence, innovation, quality, reliabilityand internationality. The company is the world'slargest provider of environmental technologies. Infiscal 2010, which ended on September 30, 2010,revenue totalled 76 billion and net income 4.1billion. At the end of September 2010, Siemens hadaround 405,000 employees worldwide. INNOVATION TECHNOLOGY055" "CITIES ARE THEMAIN SOURCES OFEMISSIONS. THEYACCOUNT FOR 75PER CENT OFGLOBAL ENERGYCONSUMPTIONAND FOR 80 PERCENT OF THEGREENHOUSE GAS EMISSIONS GENERATED BYHUMAN ACTIVITY?10 billion, Siemens is clearly set on growth. As aresult, the company is building the world's largest windfarm off the coast of Wales. When it is completed in2014, this plant in the Irish Sea is expected to supplygreen power to around 400,000 British homes. Transporting electricity with low losses to destinationsover thousands of kilometres away is just as importantas climate-friendly power generation. A successfulproject has recently been completed in China. Thehigh-voltage direct current (HVDC) transmissionsystem from Siemens connects hydroelectric powerplants in Yunnan Province with the megalopolises ofGuangzhou and Shenzhen. This system has roughly 50per cent lower losses than a conventional three-phasetransmission system. Solutions of this type will becrucial in the future for transporting "green" electricityfrom solar power plants in the desert or wind turbinesat sea to large cities.One municipality that will combine nearly all existinggreen solutions in one location is Masdar City. Thisplanned green city in the Emirate of Abu Dhabi has afuturistic appearance, and will serve as a model for theurban landscape of tomorrow. Cutting-edge technologieswill produce Masdar's entire energy supply locally andemission-free. In just a few years, 50,000 people areexpected to live in this green desert metropolis. With theinstallation of smart grids and other technologies,Siemens is a strategic partner to Masdar City and onceagain a pioneer in environmental progress.Masdar City is still a model project, yet everyoneinvolved will do whatever they can to begin transferringthis concept to as many other cities as possible. Thanksto projects like Masdar City, today we can already make