Innovation in Substation Ethernet Networks How to Achieve

Advantages of Digital Substation & Smart Grid Digital Substation • Improved measuring accuracy & performance • Increased safety & lower environmental impact • Improved cost of ownership by elimination of copper wires Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 2 2014 -07 -22 Smart Grid • Improved reliability & efficiency • Enabling of renewables & cleantech apps • Increased consumer engagement

The Drivers – Digital Substation and Smart Distribution Grid Communication Requirements & Goals Fully digital high voltage substations and smart distribution grid require robust, reliable, secure and flexible communications infrastructure. Smart Grid implies replacement of analogue signals, large amount of copper wires and legacy systems by transition to digital data transmission over standard Ethernet and IP communications. The long term goal is to reduce costs while increasing efficiency by migrating all operational services and mission-critical applications to use a unified all-IP communications network. Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 3 2014 -07 -22

The Challenge - Need for Flexibility in Substation Ethernet Networks The Challenge Move the Utility communications network to make digital substations and smart distribution grid real, without: • Making current operating capital investments obsolete • A massive investment in new technology, procedures and training • Expanding physical facilities. Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 4 2014 -07 -22

The Challenge - Evolution Path From the Legacy Environment to the Future The Solution Introduce new technology that provides utilities with a simple, cost-effective evolutionary path. This technology should allow customers to handle higher data rates, adopt new standards and meet new regulatory requirements; • Gracefully, in a deliberate, controlled manner • Without massive “forklift upgrades” • Without battles for rate increases Solution must be flexible, future-proof, robust, with a low -cost of ownership, high-density and handle gigabit speed. Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 5 2014 -07 -22

Reliability – Extremely Rugged Hardware and Resilient Software Utility Grade Requirements – a standard of today • Fully IEC 61850 -3 Compliant • IEEE 1613 Class 2 performance • No mechanical rotating parts • Extended operating temperature: -40 to +85°C • High reliability: MTBF > 1, 000 hours • High availability: > 99. 9999% • Immunity to extreme EMI • Immunity to extreme environmental conditions • Guaranteed Zero-packet-loss • Cut-through, low latency, bumpless redundancy Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 6 2014 -07 -22

Flexibility – Future-proof, Modular, Field Upgradable, Third-party APPS Ready Utility Grade Requirements – Recommendation for the future • Powerful Gigabit cut-through switching fabric • High density, modular design, field upgradability or/and hot-swappability • Universal module design to allow increased processing capacity or upgrades to future hardware/software interfaces • Interchangeability of modules between members of same product platform • Application processing capability with programming API • Rich set of legacy interfaces – serial, timing IOs, etc. • Rich set of L 2, L 3 protocols and software features • Embedded cyber security features Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 7 2014 -07 -22

IEEE 1588 Precision Time Sync • IEEE 1588 v 2 precision timing protocol over Ethernet • Synchronize substation IEDs to sub microsecond accuracy • Accurate time stamping of system events and data • Migration strategy by deploying IEEE 1588 capable network and doing local conversion to legacy timing protocols such as IRIG-B or PPS • Critical future applications such as Synhcrophasors or Process Bus that require precision time sync Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 8 2014 -07 -22 Substation LAN (Ethernet)

Enhanced Redundancy High Availability Ethernet: IEC 62439 • Parallel Redundancy Protocol (PRP) • Guaranteed Zero-Packet-Loss™ for any single point of failure • HSR/PRP included in IEC 61850 for mission critical substation networks Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 9 2014 -07 -22

RUGGEDCOM Most Comprehensive Solution RUGGEDCOM RSG 2488 • The RSG 2488 is innovation in the field of utility grade switching in a robust, cost-effective 1 U form factor. • The RSG 2488 offers • 28 non-blocking 1 Gig ports • 100 M & Gig ports can be mixed (granularity = 2) • Fiber & copper can be mixed (granularity = 2) • IEEE 1588 (PTP) GM, BC, TC, OC • Legacy timing IO interfaces (GPS, IRIG-B, PPS) • Increased Network Availability • Reduced Sparing Costs • Minimal Time To Repair • Lowest Overall Cost Of Ownership Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 10 2014 -07 -22

RUGGEDCOM Most Comprehensive Solution RX 1500 Multi-Service Platform • Modular Layer 2 and Layer 3 Switch and Router • Field replaceable modules, hot-swap power supplies • Interchangeable modules between all different RX 15 xx product family • High immunity and emissions ratings • WAN – T 1/E 1, EVDO, HSPA, Frame Relay, PPP • Routing – OSPF, BGP, RIP, VRRP, MPLS • Serial Server – RS 232 / 422 / 485 • Application Processing Engine • Wide selection of port interfaces including M 12 Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 11 2014 -07 -22

Smart Grid Apps RUGGEDCOM APE Line Module • Intel Atom E 660 CPU @1. 3 GHz • 1 GB DDR 2 (up to 2 GB supported) • 8 GB SATA (up to 16 GB supported) Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 12 2014 -07 -22 3 rd Party Applications: • Utilities • System Integrators • Engineering Firms • Consultants

Conclusions – Innovation to Achieve Flexibility for Utility Communications • Highly reliable rugged hardware for utility environments • Flexible, modular, field upgradable and hot-swap design • Security against cyber attack • System wide time synchronization ( < 1 us) • Superior redundancy with guaranteed zero-packet-loss • Support for advanced and critical applications (e. g. Synchrophasors, Process Bus, Teleprotection, Line Differential) • Support for IEC 61850, SCADA, AMI and Mobile Workforce • Support for L 3 protocols and multiple WAN interfaces • Support for Legacy interfaces • Media conversion and protocol translation • Application processing engine Unrestricted / © Siemens AG 2014. All Rights Reserved. Page 13 2014 -07 -22