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. 

Schaltbau, a global leader in direct current technology (DC), opened its NExT Factory flagship site for sustainable and intelligent manufacturing in Velden, Germany. The factory has been in full operation since September 2023, serving as a production site for the company’s advanced electromechanical components and systems for DC power applications, which are distributed to energy, e-mobility and energy customers worldwide.

“We are very honored that our NExT Factory has been recognized on Germany’s TOP TENs Energy Efficiency List. Energy efficiency, digital innovation, and direct current technology are at the heart of competitive, sustainable and more resilient industrial production,” said Helmut Pusch, CEO of Schaltbau GmbH Group. “No company can travel the road toward the All Electric Society alone. It requires knowledge and technology transfer, as well as pioneering projects like NExT Factory. It is a scalable model that will hopefully inspire many more solutions for smart, efficient and green industry.”

Energy and resource efficiency are central to NExT Factory’s design. It integrates a 1.3 MWp roof-top photovoltaic system directly into a DC microgrid, combined with an intelligent AI-supported energy management system and battery (300 kWh) and thermal storage (10 MWh). This innovative approach eliminates conversion losses between alternate and direct current, reduces peak loads by up to 85%, and allows the facility to operate with 66 percent renewable energy of its own generation (net annual basis) –

all resulting in up to 35% annual energy cost savings.

Schaltbau’s NExT Factory has previously been recognized with multiple awards, including the German Innovation Award 2024, Dena Energy Efficiency Award 2024, the German Excellence Award 2025 as well as the FREDDIE AI Industrial Award 2025. These accolades reflect the company’s commitment to driving energy efficiency, sustainability, and innovation in DC power solutions and manufacturing.

Schaltbau, a global leader in direct current (DC) technology, has received the FREDDIE AI Industrial Award in the “Sustainability” category for the AI-based energy management system at the NExT Factory, the world’s first DC factory in Velden, Germany. The award recognizes how the system intelligently connects a wide range of energy sources, consumers, and storage systems, setting new benchmarks in industrial energy supply performance and sustainability.

“AI, sustainability and economic impact go hand in hand. Because no suitable energy management system for DC fed industrial power supplies existed, we developed one ourselves, just as we did when creating the world’s first DC factory,” said Helmut Pusch, CEO of Schaltbau GmbH Group. “This double pioneering spirit defines who we are: when solutions don’t exist, we create them. And then we share them. Our NExT Factory and its AI-driven EMS form a blueprint for the All Electric Society, helping drive the global transition toward smarter, cleaner, and more resilient industrial power systems.”

The idea for an AI-driven energy management originated during Schaltbau’s pioneering project to build the world’s first DC factory. With no existing solution available, the company built its own, extending its innovation from factory concept to the intelligent systems that power it. By directly coupling energy generation from a rooftop photovoltaic system, storage, and consumption on a DC microgrid, conversion losses are minimized, significantly increasing overall system efficiency and reducing costs. Managing such a system, however, is highly complex and cannot be handled with static, rule-based algorithms. Thousands of data points must be processed every second — from power flows and production schedules to weather forecasts, load shifting to sunny periods, and variable electricity tariffs.

The NExT Factory’s EMS, supporting both DC and AC networks, uses artificial intelligence to dynamically learn, recognize patterns, forecast future power consumption, and enable predictive, efficient control of the entire DC energy supply network. The scalable system was developed in-house with a cloud-based backend and a local edge application, and it received funding from the Federal Ministry of Research, Technology and Space under the SynErgie3 project.

The FREDDIE Industrial AI Award, initiated by publish-industry and UnternehmerTUM, recognizes outstanding applications of artificial intelligence in manufacturing and industrial environments. It honors projects that demonstrate how AI can transform industrial processes, enhance efficiency, and deliver measurable value. Award-winning solutions typically stand out for their technical excellence, industrial relevance, scalability, degree of innovation, business impact, and future potential. With both factory concept and the in-house AI-based EMS, Schaltbau continues to share insights and best practices with partners and the wider industry – because advancing DC technology is a collective mission toward a more sustainable future.

Schaltbau today celebrates the two-year milestone of its NExT Factory, a flagship site for sustainable and intelligent manufacturing. Since opening in 2023, the 22,000 m² facility has demonstrated how a DC-powered plant combined with AI-driven energy management can set new standards in industrial performance and sustainability. The factory has already earned global recognition, including awards such as the German Innovation Award and the German Energy Agency’s Energy Efficiency Award as well as a recent nomination for the Freddie Industrial AI Award.

“The NExT Factory is more than a production site – it’s a blueprint for The All Electric Society and the future of sustainable industry,” said Helmut Pusch, CEO Schaltbau GmbH Group. “We’ve demonstrated that energy efficiency, digital innovation, and high-performance manufacturing can go hand in hand. This combination not only makes our production more sustainable, it also provides customers and partners with a concrete example of what the transition to the All Electric Society looks like in practice.”

Energy and resource efficiency are central to the NExT Factory’s design. The facility operates with 66 percent renewable energy of its own generation (net annual basis), thanks to cost-efficient heat pumps that replace the gas systems of the previous site. At the core is an AI-based energy management system (EMS) that controls the factory’s grid. Together with battery and thermal storage, this enables predictive control and continuous optimization. The result: up to 35 percent in annual energy cost savings, while PV systems deliver an 8 percent boost in efficiency compared to AC configurations. DC-coupled battery systems reduce energy losses by an additional 3–4 percent.

Digital innovation rounds out the factory’s achievements. The site features a digital twin of the DC grid and the EMS. These technologies not only improve performance but also provide the flexibility and resilience needed to meet growing customer demands.

As part of Schaltbau’s global production footprint, the NExT Factory also plays a strategic role and international demand while aligning with political and ESG requirements. With 2,000 m² of open office space and 64 assembly lines across custom, small-to-mid-series, and large-series production, the facility produces 38,500 custom pieces, 167,000 small-to-mid-series, and 760,000 large-series products each month. Since its launch, the NExT Factory has implemented several continuous improvement projects, alongside major automation milestones such as a fully automated pre-assembly line for drives, a final assembly line for contactors, and a laser welding machine.

The factory’s supply chain and logistics operations have also advanced rapidly. Demonstrating a commitment to continuous business excellence, several key process improvements have been rolled out with average implementation times of just 12 weeks. At the same time, our sourcing philosophy carefully balances economic, ecological, and social considerations to ensure responsible and sustainable outcomes. Ongoing logistics optimizations continue to lower environmental impact, further reinforcing the site’s commitment to sustainability.

Over the past two years, the NExT Factory has hosted delegations from leading international companies seeking insight into sustainable manufacturing practices and DC factory concepts. By sharing practical expertise and proven approaches, Schaltbau continues to position itself as a trusted partner in helping industry realize the transition to DC-based production. Looking ahead, the facility will remain a cornerstone of innovation, efficiency, and responsible growth.

“We are proud to share our knowledge and experience with other companies seeking to establish DC-based factories,” added Pusch. “Actively supporting this transition is part of our responsibility to accelerate the move toward green industry and sustainable production."

To read more about DC microgrids, EMS, and NExT Factory, visit us here.

“When we planned our NExT Factory with a DC microgrid and smart energy management, we wanted to minimize energy losses that happen when direct current is converted into alternate current and vice versa. But we also wanted to minimize the ‘conversion losses’ that happen when teams don’t have the working environment or the fast mutual exchange they need,” said Dr. Michael Ettl, Senior Director Operations, Schaltbau. “We are very honored to receive this award. It shows that the principles of New Work, collaboration and transparency can very well transcend to manufacturing sites.”

The 2.000 m² open office space in the NExT Factory was designed on the basis of both qualitative workshop and quantitative survey data on the working methods and communication relationships of the various teams in the factory. It allows “activity-based working”, namely, provides inviting space for individual work and concentration as well as discussions and creative team meetings. The respective “home zones” of departments in the open space concept were arranged based on the communication relationships between the different teams, facilitating both transparency and smooth collaboration. 

The NExT Factory has been in full operation since September 2023. With its advanced DC components, photovoltaic energy generation, intelligent energy management as well as battery and thermal storage, the NExT Factory saves up to 35% in annual energy costs. As a result, the facility is significantly less reliable on the conventional power grid and sets a new standard for carbon-neutral and electrified production. 

“When we decided to expand our production capacity in 2019, we faced all the challenges manufacturers are being confronted with today,” said Steffen Munz, CEO at Schaltbau. “But we seized it as an opportunity to break new ground. We decided to use our direct-current technology expertise and product portfolio to create the world’s first direct current factory. We are very honored to win the Energy Efficiency Award and hopeful that other companies feel encouraged to explore the economic and environmental benefits DC grids can bring to their production sites.” 

Schaltbau’s NExT Factory represents a pioneering leap in sustainable manufacturing and energy efficiency. Built with the future of energy transition in mind, the NExT Factory leverages the natural advantage of renewable energy sources like solar power to produce direct current. Unlike traditional factories that convert DC into alternating current (AC) for distribution, the NExT Factory maintains a DC-based infrastructure that efficiently delivers electricity generated from its expansive rooftop photovoltaic (PV) system directly into the plant’s operations. This streamlined approach bypasses the energy losses associated with DC-to-AC conversion, resulting in an energy savings of up to 15%. 

In addition, the factory integrates intelligent energy management systems that monitor, optimize, and balance energy use in real-time, further enhancing efficiency. Through this advanced energy management and DC grid approach, the NExT Factory achieves a total reduction in energy consumption and costs of up to 35% annually. This not only reduces the factory’s operational costs but also minimizes its environmental footprint, setting a powerful example for the manufacturing industry’s path toward climate neutrality. 

The Energy Efficiency Award stands for responsibility, innovation and entrepreneurship and has been showcasing concrete successes for the energy transition and climate protection since 2007. It recognizes projects for energy and CO2 savings as well as concepts that demonstrate how the path to climate neutrality and the transformation of industry can succeed.

Learn more in the video below (in German). 

Schaltbau, a global industry leader specializing in direct current (DC) technology, has received the German Award for Sustainability Projects in the “Technology – Energy” category. The company received the award as creators of the world’s first direct current, resource-saving and carbon-neutral factory in Velden, Germany. The manufacturing facility, which has been in full operation since September 2023, can serve as a blueprint for energy-efficient and green supply chains in Europe. 

The German Award for Sustainability Projects recognizes outstanding sustainability endeavors which create social, economic and environmental impact in line with the United Nations’ Sustainable Development Goals. 

“We are very proud to take the German Award for Sustainability Projects home this year,” said Steffen Munz, CEO at Schaltbau. “The NExT Factory is a pioneering showcase for resource-saving and carbon-neutral production. We are passionate about setting new standards in green production for a sustainable future. And we hope to encourage others to follow suit – it is rewarding.” 

The NExT Factory’s DC microgrid is a pioneering technology for effectively integrating renewable energies into production, not least because it eliminates conversion losses and increases energy efficiency. With its advanced DC components, photovoltaic energy generation, an intelligent energy management as well as battery and thermal storage, the NExT Factory functions like a circular economy for energy and saves 35% in annual energy costs. As a result, the facility is significantly less reliable on the conventional power grid and sets a new standard for carbon-neutral and electrified production. 
 

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.

The NExT Factory at a glance: 

• 100% electrified
•  0% CO2 emissions in factory operation 
• Generated PV energy p.a. 1,600 MWh 
• Battery storage capacity 1 MWh 
• Thermal storage capacity 10 MWh 
• 15% increase in efficiency by reducing conversion losses in the DC grid 
• 35% lower annual energy costs 
• 70% degree of self-sufficiency on an annual average 
• Reduction of peak load in the logistics warehouse system by up to 85% through recuperation 
• 25% material savings during construction (e.g. copper) 
• 9,500 m² production, 5,300 m² warehouse and 2,000 m² offices 
• 60 million Euro investment costs 
• Get to know the NExT Factory on September 16, 2023

Picture material: Under the following link  you will find pictures for download.  The reprint of all pictures is free of charge for editorial purposes with the mention “Photo: Schaltbau”.