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How to cut energy costs by up to 30%

Posted on February 12, 2025

Two microgrid scenarios for peak shaving and increased grid autonomy
Executive summary

What

Manufacturing plant with three-shift operations leading to a load profile with a daily peak during office hours. Annual electricity demand 37.000 MWh and peak electricity demand 9.3 MW.

Where

Germany

Why

Germany has among the highest rates for on-grid energy in the world. Energy savings of up to 30% can be a decisive factor for commercial success.

Main benefits

Energy cost optimization; Reduction of CO2 emissions; Increased grid independence

For energy intensive businesses such as manufacturing plants, saving on the energy bill can be a decisive factor for commercial competitiveness. This German manufacturing use case provides two scenarios on how to significantly reduce energy costs:
      —     by producing and using cheaper energy from photovoltaics (PV) and a battery energy storage system (BESS) for up to 23% savings (peak shaving case)
      —     by adding gas gensets to achieve grid independence and highest savings of up to 30% (self-sufficiency case)

Optimizing energy costs with microgrids

To demonstrate the potential for savings with microgrids, we have calculated two business case scenarios for a manufacturing plant in Germany using HOMER Grid® simulation software.

Continuous  plant operation

Because the manufacturing plant in this example employs three shift operations, the load profile is continuous with a peak during office hours. As a result, undisrupted electric power is vital for the success of the plant’s operations and a strong reliability on the energy system is just as important as the costs of the energy itself. In this example, reliability is provided through the continuity of energy guaranteed from a back-up grid connection.

Results of the use case

For this use case, we compared two microgrid scenarios with a conventional case of on-grid power.

Investing in a microgrid

Conventional case
For the manufacturing plant in our example, investing less than one year of the energy bill allows for savings that will pay back the investment within 4 years.

Microgrid solution
The microgrid solution involves PV solution of 2000 kWp and a BESS of 1000 kWh. When considering energy optimization and improving the carbon footprint by medium capital investment, this configuration represents an optimal solution.
Total capital investment: € 2.34m

Yearly operating savings

The energy costs of the manufacturing plant in the initial situation consists of the following components: energy consumption charges (generation costs, grid costs, taxes and levies) and demand charges. In the peak shaving case, the PV panels provide a reduction in the grid consumption charges, while the BESS reduces the peak load, thereby reducing demand charges.
This amounts to total savings of € 54k per year.

In the increased autonomy case, only a reduced grid consumption charge is due because a major share of the energy is generated on site. The new bulk of the costs comes from gas usage.  
Total savings: € 74k per year.

Payback period

In scenario 1 (Peak shaving case), the manufacturing plant invests in PV for low-cost renewable energy and energy storage through peak shaving.  
The payback period is 4.2 years.  

In scenario 2 (Self-sufficiency case), the manufacturing plant invests in gas gensets as well as PV and energy storage to become entirely self-sufficient.  
The payback period is 4.8 years.

Microgrid services, system integration and smart control

Our microgrid systems offer a wide variety of solutions and services. Each can be individually designed to serve specific needs. Special microgrid services we offer include consulting, planning, the single-source supply of hardware and software as well as installation and maintenance.

Start saving costs with microgrids

Are you curious if microgrids can help your facilities save on energy costs?

Contact us today at
info@ps.rolls-royce.com
Or call +49 7541 90-77777

Your benefits:
— Energy cost optimization
— CO2 avoidance
— Increased grid independence

Rolls-Royce Groupwww.mtu-solutions.com

Rolls-Royce provides world-class power solutions and complete lifecycle support under our product and solution brand mtu. Through digitalization and electrification, we strive to develop drive and power generation solutions that are even cleaner and smarter and thus provide answers to the challenges posed by the rapidly growing societal demands for energy and mobility. We deliver and service comprehensive, powerful and reliable systems, based on both gas and diesel engines, as well as electrified hybrid systems. These clean and technologically advanced solutions serve our customers in the marine and infrastructure sectors worldwide.

Within its Net Zero at Power Systems program, Rolls-Royce has set out to sustainably reform its product portfolio so that by 2030, new technologies can save 35% of greenhouse gas emissions compared to 2019. This near-term target plays a significant role in Rolls-Royce Group’s ambition to achieve net zero by 2050 at the latest. A key element in achieving these goals is the release of the highest volume mtu engine products and systems to run on sustainable fuels as quickly as possible.

How to cut energy costs by up to 30%

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