End-to-end intelligence and dynamic control of electricity across the grid has become the defining function of the smart grid.
These characteristics will allow the power grid to absorb large amounts of renewable energy without compromising reliability. They will also reduce costs and enhance service quality. It turns out that the smart grid will also enable solutions to the complex operational challenges associated with many industrial applications under extreme conditions.
In 2010, Siemens introduced the world's first integrated sub sea power grid and changed the game for deep-water oil and gas production everywhere from Brazil, to Malaysia. The sub sea power grid encompasses pumps and compressors and large variable speed drives to transport the oil and gas from the wellhead to a processing facility.
More importantly, the sub sea smart grid set the stage for large-scale sub sea processing, which will reduce the costs of developing deep-sea fields dramatically. Until recently, oil and gas produced from deep-water fields has been brought to the surface and transported to onshore processing facilities.
Bringing offshore oil to the surface, transferring it to an oil tanker and transporting it to an onshore refinery is very expensive. As a result, "sub sea processing" is often considered to be a critical enabling technology for tapping deep-sea oil and gas fields.
Siemens has also developed sub sea control systems for Statoil´s Snorre project and transformers for developing a field off the coast of Brazil.