IW Gussputz boosts profits through peak shaving and energy trading, saving €45,500 annually

Metal Industry Battery Storage

The Challenge: Inefficient Energy Use and Rising Costs

IW Gussputz, a prominent metalworking company near Darmstadt, Germany, faced rising production costs due to its high energy demands. As electricity prices increased, so did their operating expenses, making it crucial to find a way to secure stable and predictable energy prices for the long term.

The company had already taken steps toward energy independence by installing a 490 kW solar panel system. However, they quickly realized that a large portion of the generated energy was being fed back into the grid rather than being used on-site, limiting their potential cost savings.

To address this, IW Gussputz partnered with HIS-Energy to optimize their energy consumption and reduce the high costs associated with peak shaving. The goal was to maximize the efficiency of their solar PV self consumption system and significantly lower their energy expenses.

The Solution: Smart Battery Storage and Energy Management

HIS-Energy recognized that solar power alone would not be sufficient to achieve Gussputz’s energy-saving goals. To optimize self-consumption and reduce peak loads, we at HIS decided to integrate a battery storage system and an intelligent energy management system.

Key Components of the Solution by HIS-Energy

The Battery Storage System (HISbatt): A 184 kVA / 466 kWh battery storage system efficiently stores excess energy generated by the photovoltaic (PV) system, preventing it from being fed into the grid. This storage system can then be used to meet peak energy demands or optimize self-consumption, reducing reliance on grid-supplied electricity.
Energy Management System (HIS-EMS): This advanced system monitors and controls energy flows within the company, dynamically optimizing the generation, storage, and consumption of electricity. It ensures that any surplus energy produced by the PV system is not wasted, but is instead utilized to charge the battery storage or meet immediate energy needs.
PV Self-Consumption, Peak Shaving and Energy Trading (Stacking Applications): By integrating the battery storage system with the energy management system, the company has greatly increased its self-consumption of solar energy. This allows more of the electricity produced by the PV system to be used on-site, reducing the need to buy power from the grid. Additionally, demand charges were significantly lowered by reducing short-term power peaks. Moreover, the battery generates extra revenue during the night by participating in electricity trading markets, such as Intraday and Day Ahead.

Technical Overview & Calculations

HIS-Energy’ Battery Storage System: Optimized Self-Consumption of Gussputz

Before the battery storage system, IW Gussputz faced a challenge with their solar panels. While they generated substantial electricity, much of it went unused during periods of low production activities. This excess energy was sold back to the grid at a low rate, resulting in financial losses.

The installation of a battery storage system has significantly improved the efficiency of IW Gussputz’s solar power utilization. This allowed excess energy to be stored for later use, meeting the Gussputz’s demand during peak production times or periods of high energy consumption. This reduces the need to purchase electricity from the grid at higher prices.

By using the battery storage system,  IW Gussputz can self-consume an additional 80,610 kWh from their 490 kWp solar power plant. Without the battery system, this 80,610 kWh would have been fed into the grid, earning the customer a  benefit of €0.07 per kWh. However, by using this energy themselves, the customer reduces their need to purchase electricity from the grid, resulting in a higher cost benefit of €0.18 per kWh (€0.25 per kWh grid cost minus the €0.07 feed-in benefit). This translates to annual savings of €14,509 (0.18 x 80,610).

HIS-Energy Peak Shaving: Reduced Power Prices for Gussputz

Previously, IW Gussputz incurred significant costs due to peak energy loads, which reached up to 345 kW at times, resulting in electricity expenses of €5,875 per month.

With the implementation of the HISbatt energy storage solution and HIS-Energy management system, this issue was effectively resolved. By optimizing energy usage and reducing peak loads to 240 kW, the company now saves €1,790 per month. This amounts to annual savings of €21,480.

When combined with the savings from improved self-consumption, the total annual cost reduction reaches €35,989.

Results: Efficient Energy Supply

IW Gussputz’s decision to invest in a battery storage system was a well-considered one, driven by years of rising electricity costs, a challenge many companies in the industry face. While installing a photovoltaic (PV) system was a positive step, it became clear that the savings potential was limited due to the lack of energy storage and the need to manage peak loads during production.

To maximize the efficiency of their PV system and reduce reliance on expensive grid power, IW Gussputz partnered with HIS-Energy. HIS’s team of experienced engineers and energy management experts conducted a thorough analysis of the company’s specific needs and developed a tailored solution.

“Our goal wasn’t just to deliver a technical solution, but to help IW Gussputz secure its long-term energy supply while transforming the battery storage system into a profitable strategic investment,” said Jonas Mechler, energy management specialist at HIS-Energy. By thoroughly analyzing the company’s production peaks and energy consumption patterns, HIS designed a solution that integrates seamlessly with the existing solar power system, maximizing energy self-sufficiency. This approach ensures that the solar energy generated is used as efficiently as possible, reducing reliance on costly grid electricity during peak demand and enabling the battery storage system to participate in energy trading during the night. This is an excellent example of combining cost-saving and profit-generating strategies for industrial customers.

The partnership between IW Gussputz and HIS-Energy went far beyond the sale of a battery storage system. HIS provided full support throughout the entire project, from initial planning and implementation to ongoing maintenance and optimization.

Optimizing ROI with HIS-EMS Multi-Use Topology

The return on investment for this project is remarkable. IW Gussputz expects to fully recoup its initial investment within just a few years, followed by annual savings of around €36,000. Additionally, the company plans to use the battery storage system for nighttime energy trading (Intraday, Day Ahead), potentially earning an extra €9,500 annually by participating in the APEX spot markets. This strategy, known as application stacking—using both front-of-the-meter and behind-the-meter applications—could boost total annual savings to €45,500. This is accomplished with just a 184kW/466kWh Battery Energy Storage System (BESS) and intelligent energy management systems from HIS Renewables GmbH.

Beyond these immediate financial benefits, the investment also brings long-term advantages such as increased energy independence, improved energy efficiency, and a reduced carbon footprint.

By combining the solar PV system with battery storage, IW Gussputz is not only equipped to meet its current energy needs but also prepared to handle future fluctuations in production demands and grid electricity prices. This flexibility and resilience form a solid foundation for the company’s long-term energy strategy.

Conclusion: A Model for Energy Efficiency

IW Gussputz is a perfect example of how a company can effectively reduce energy costs, improve operational efficiency, and generate profits by strategically integrating a solar power system, battery storage, and intelligent energy management.

With annual savings nearing €45,500, the long-term benefits of this investment are clear. This case shows that economic efficiency and environmental sustainability can go hand in hand.

Looking for a battery storage solution that can reduce energy costs and enhance ROI? Get in touch with our specialists for personalized guidance.

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