Schaltbau has described NExT Factory not just as a milestone for the company, but for the industry. What makes it so significant in your view?

Helmut Pusch: To me, it represents a functioning model of what the future of industrial production could — and should — look like. The factory is built around a new energy logic. Instead of relying on conventional AC grids, we have implemented a DC microgrid that allows us to operate more efficiently, reduce conversion losses, and integrate renewable energy far more effectively. In doing so, it aligns perfectly with the vision of the All Electric Society – a world in which energy is generated renewably, used efficiently, and distributed intelligently across sectors. NExT Factory proves that this is not an abstract idea. It is already possible today, even in a complex manufacturing environment.      

If you were to summarize the first two years in a nutshell, what would you say?

We have been able to demonstrate that it is entirely possible to run a manufacturing site powered by direct current. That in itself is a pioneering achievement, and I commend the entire team for turning this vision into reality. NExT Factory is a testament not only to Schaltbau’s engineering excellence, but also to the unwavering grit and perseverance in working with authorities and grid operators.

No stumbling blocks?

Of course, we faced some initial challenges, including fine tuning the interaction between our DC grid and the public AC grid, and adjusting automation processes to run smoothly in a DC environment. But we addressed them by working closely with our technology partners, investing in employee training, and making incremental improvements. Within a short time, we were able to stabilize operations and ensure seamless production. 

 

Let’s talk numbers: What were your initial energy saving targets for NExT Factory and have those been achieved?

When NExT Factory began operations, our goal was to save up to 15% in energy annually with our direct current (DC) microgrid. The photovoltaic system on the factory roof generates around 1.3 MWp of energy per year which is directly fed into the DC microgrid without being converted into alternating current, as is typically the case. In practice, we have exceeded this target: thanks to reduced conversion losses and higher system efficiency, our PV systems deliver an 8% efficiency boost compared to AC, and DC-coupled battery systems avoid a further 3–4% in energy losses.

In addition, we have set up the factory to function like a kind of circular economy for energy. By implementing the DC grid alongside intelligent energy management and storage, we targeted a 35% annual reduction in energy costs — and this is exactly what we are achieving today. Our average annual self-sufficiency rate currently stands at around 66%, based on renewable electricity sourced and consumed on site.

You mentioned the vision of the „All Electric Society” earlier. In what way is the factory exemplary to it?

First of all, the All Electric Society envisions a shift away from fossil fuels, with energy supplied primarily from renewable sources. In line with that, we operate a fully electrified production facility with minimal CO₂ emissions. The second key principle is increasing energy efficiency and achieving energy savings. We significantly reduce AC/DC conversion losses and manage energy far more intelligently to maximize self-consumption, for instance, by directly reusing recuperation energy in our logistics warehouse system, which has reduced peak loads by up to 85%. We also saved 25% in materials during construction, such as copper, because higher voltages in DC allow for significantly smaller cable cross-sections. And thirdly, I believe that NExT factory shows that sector coupling is possible on a factory scale.

What do you mean by that?

In the context of the “All Electric Society”, sector coupling refers to the integration and coordination of different energy sectors, such as electricity, heating, transportation, and industry, so they can exchange energy and make more efficient use of available resources. At the NExT Factory, these sectors do not operate in isolation but are interconnected. We generate electricity from solar power. We store excess power not only in our DC battery storage system, but also in heat – the factory has a thermal storage capacity of 10 MWh. The factory’s DC grid also supplies power to the charging infrastructure for electric vehicles, forklifts and electric industrial trucks. In other words, we are maximizing the use of renewable energy by linking it directly to our various energy demands.

What’s next for the NExT Factory?

NExT Factory sets a benchmark and serves as a scalable model for sustainable manufacturing. We hope to see broader adoption of similar DC microgrid systems — more “NExT Factories” — which could significantly reduce CO2 emissions across the sector and help advance the vision of the All Electric Society. Since our opening, we have welcomed more than 20 international visitor groups from across the globe, including many industry peers. I am confident we will see growing interest in and adoption of DC technology in industrial production environments – and we are happy to support these initiatives by sharing our experience, consulting on projects, and supporting others with our pioneering AI-driven EMS solution or our contactor and smart circuit breaker portfolio. 

Learn more about the NExT factory, DC microgrids and intelligent EMS here. 

With energy efficiency and sustainability at the forefront of everyone’s mind, industries are seeking innovative solutions for their manufacturing needs. The emphasis on optimizing energy consumption and reducing carbon footprints becomes more and more pressing. As the global community rallies behind initiatives to combat climate change and foster sustainable development, industries are tasked to rethink their operational frameworks and integrate new technologies that prioritize environmental responsibility without compromising productivity. So how can we do that? Two words: direct current. 

Direct current (DC) microgrids are here to change industry as we know it. By decentralizing power generation and storage as well as reducing the number of energy conversion stages, resulting in minimized energy losses, DC microgrids not only enhance operational efficiency but also empower manufacturers to navigate through fluctuating energy demands with resilience and agility. What’s more, their compatibility with renewable energy sources drives sustainability efforts and fosters eco-friendly practices while reducing dependency on traditional power grids. 

DC microgrids leverage unique features such as reduced points of failure, energy storage integration, islanding capability, advanced control systems, distributed generation, and predictive maintenance, to offer uninterrupted power supply. Let’s dive deeper into these benefits and learn more about how DC microgrids are leading us into a new era of innovation and sustainability: 

Reduced Points of Failure

DC microgrids significantly reduce points of failure compared to traditional AC systems by simplifying the overall architecture and minimizing conversion stages. With fewer components involved in energy transmission and distribution, the risk of system failures and downtime is greatly reduced, enhancing the reliability of manufacturing operations. This streamlined approach not only improves system efficiency but also lowers maintenance requirements, resulting in cost savings and increased operational uptime.

Energy Storage Integration

DC microgrids are well-suited for integrating energy storage systems such as batteries. By storing excess energy during periods of low demand or high renewable generation, these microgrids can ensure a constant power supply even when renewable sources like solar or wind are not producing electricity. 

This integration enhances flexibility and resilience, allowing manufacturing facilities to better manage energy costs and optimize their power usage. Additionally, energy storage integration facilitates smoother integration of intermittent renewable sources, ensuring a reliable and consistent power supply for critical manufacturing processes. 

Islanding Capability

One of the key features of DC microgrids is their ability to operate autonomously or in "island mode" when disconnected from the main grid. In the event of a grid outage or disruption, DC microgrids can easily transition to island mode, ensuring uninterrupted power supply to critical loads within the microgrid's network. 

This ensures uninterrupted operation of critical equipment and processes, minimizing disruptions and preventing costly downtime. Islanding capabilities enhance the resilience of manufacturing operations, safeguarding against external power disturbances and increasing overall system reliability. 

Enhanced Control & Monitoring 

DC microgrids feature advanced control and monitoring systems that provide real-time insights into energy generation, consumption, and distribution. Utilizing sophisticated sensors and communication technologies, these systems collect data from various microgrid components, enabling operators to access comprehensive dashboards and visualization tools displaying key performance indicators and energy flows. This visibility empowers operators to identify inefficiencies, detect abnormalities, and optimize energy distribution to meet demand while minimizing waste. 

Additionally, DC microgrid controllers employ advanced algorithms and machine learning techniques to analyze incoming data, dynamically adjusting generation levels, prioritizing loads, and implementing demand response strategies. In the event of grid disturbances, the control system swiftly reconfigures the microgrid to maintain stability by autonomously isolating faulty components, rerouting power flows, and implementing load shedding measures to prevent system-wide failures. 
 

Distributed Generation Integration

DC microgrids can easily integrate distributed generation sources such as solar panels or small-scale wind turbines. By leveraging distributed generation, microgrids can diversify their energy sources and reduce reliance on centralized power plants, thereby increasing overall system reliability. 

By efficiently harnessing renewable energy at the point of generation, DC microgrids reduce reliance on the traditional grid and enhance the resilience of manufacturing operations against power disruptions. 
Distributed energy integration in DC microgrids fosters energy independence and sustainability for manufacturing facilities. By optimizing the use of renewable resources and storage capabilities, these microgrids minimize reliance on fossil fuels and reduce greenhouse gas emissions, aligning with both environmental goals and cost-saving objectives. 

This comprehensive approach to distributed energy integration empowers manufacturing facilities to achieve greater energy efficiency, resilience, and sustainability, ultimately driving long-term operational benefits. 

Predictive Maintenance

With advanced monitoring and analytics, DC microgrids deploy predictive maintenance strategies by continuously assessing the health and performance of critical components like power electronic units and energy storage systems. Sophisticated algorithms analyze historical data and sensor readings to detect subtle changes, while machine learning enhances predictive capabilities by identifying patterns and correlations. When issues are detected, alerts prompt proactive maintenance actions, allowing operators to address problems before they escalate. 

This approach minimizes downtime, lowers repair costs, and extends component lifespan, ensuring continuous operation and reliability for enhanced system performance and customer satisfaction. 

As you can see, DC microgrids are transforming the manufacturing landscape. By decentralizing power distribution, integrating renewable energy sources, enabling real-time monitoring and more, DC microgrids not only enhance operational efficiency but also future-proof industry, building resilience against fluctuating energy demands and external disruptions. We’re entering a new era of innovation and sustainability, where industries can thrive while prioritizing environmental responsibility. 

Want to read more about DC microgrids and Eddicy solutions that can help meet your needs? Click here to learn more about Schaltbau contactors for microgrids.  

Schaltbau, a global leader in direct current (DC) technology, has been awarded the prestigious German Innovation Award 2024 with Gold distinction in the “Excellence in Business to Business” category for innovative energy solutions. This esteemed accolade celebrates Schaltbau’s outstanding commitment to innovation and its impact on the future of manufacturing with the NExT Factory, the world’s first DC factory and a pioneering project for an energy-efficient, and carbon-neutral production.

The German Innovation Award recognizes products, projects and pioneering achievements that sustainably improve life through innovation and progress. Each year, nominees are selected for creating added value in society, the environment or the economy through their innovative processes and ideas.

“We are very honored to win the German Innovation Award 2024,” said Steffen Munz, CEO at Schaltbau. “This recognition speaks to our commitment to innovation and our passion to push the boundaries of direct current technology. We are passionate about setting new standards in green production for a better, more sustainable future.”

Schaltbau’s relentless pursuit of excellence and innovation in DC technology has positioned the company as a pioneer of carbon-neutral production, aiding the industrial transition to renewable energy. The NExT Factory has redefined the standard of manufacturing, with advanced smart grid components and intelligent energy management, battery and thermal storage, it sets a new standard for energy-efficient, carbon-neutral and electrified production.