The 7,000-Hour Rule: Detailed Explanation for Companies

The 7,000-Hour Rule: Detailed Explanation for Companies Use battery storage for maximum efficiency and reliability.

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What is the 7,000-Hour Rule?

The 7,000-hour rule is a legal regulation in Germany that relieves energy-intensive companies of high grid charges. This regulation states that companies whose facilities reach at least 7,000 full load hours per year must pay reduced grid charges. Additionally, a minimum annual consumption of 10 GWh is required. Full load hours are calculated by dividing the annual consumption by the maximum peak load. This regulation is particularly relevant for companies with high energy intensity, meaning that a certain percentage of their gross value creation is derived from electricity consumption.[kWh] [kW]  

Why is the 7,000-Hour Rule important?

For companies operating in energy-intensive sectors such as metal processing, chemicals, or glass manufacturing, grid charges can represent a significant cost factor. The 7,000-hour rule offers these companies the opportunity to significantly reduce energy costs. By reducing the grid charges, companies can remain competitive while controlling operating costs.  

How is the rule applied?

Application of the 7,000-hour rule requires companies to prove that their facilities achieve at least 7,000 full load hours per year and have a minimum annual consumption of 10 GWh. This is verified through regular operational and consumption data records. Full load hours are calculated by dividing the annual consumption by the maximum peak load. Reducing the grid charges helps companies lower their energy costs and remain competitive.[kWh] [kW]  

Example Calculation: Savings through the 7,000-Hour Rule

Description Values
Annual energy consumption 15 GWh
Maximum peak load 2,100 kW
Electricity price €0.15/kWh
Capacity price €160/kW
Full load hours 7,142
Regular grid charges €2,586,000
Reduced grid charges (20%) €517,200
Savings: €2,068,800

Assuming a company has an annual energy consumption of 15 GWh and a maximum peak load of 2,100 kW. The electricity price is €0.15 per kWh, and the capacity price is €160 per kW. Without the 7,000-hour rule, grid charges would amount to €2,586,000 per year. By reducing the grid charges by 80% through the application of the 7,000-hour rule, annual costs could be reduced to €517,200, resulting in savings of €2,068,800. In the example, full load hours amount to 7,142. If the peak load rises to 43 kW, the company would fall out of the 7,000-hour rule. A single peak load can result in losing the benefits of the rule. If you’re just under 7,000 hours, using battery storage to cap peak loads can ensure compliance with the rule.  

Benefits of the 7,000-Hour Rule for Companies

– Cost Savings: Reduced grid charges lead to significant cost savings. This is achieved by calculating grid charges based on the actual use of the grid infrastructure. For companies, this means that they only pay for the grid infrastructure they actually use, leading to especially significant savings for high-capacity usage.
– Competitiveness: Lower energy costs improve competitiveness. Companies that can reduce their energy costs have a clear advantage over competitors. Lower operating costs allow products and services to be offered at more competitive prices while investing in further business growth.
– Planning Security: Clear regulations give companies security in financial planning. With the 7,000-hour rule, companies can better plan and budget, knowing they will benefit from reduced grid charges under certain conditions. This creates financial stability and facilitates long-term investment in business development.  

Why do battery storage systems help with the 7,000-Hour Rule?

Why do battery storage systems help with the 7,000-Hour Rule?  

Benefits of Battery Storage:

1. Peak Load Management: Avoiding grid overload and reducing peak loads. Battery storage systems can store energy and release it when needed to avoid peak loads. This helps optimize grid usage and prevent overloads that could lead to higher grid charges.
2. Emergency Power Supply: Ensuring continuous operation during grid disruptions. Battery storage systems can serve as emergency power supplies and minimize outages. This is especially important for production processes that require constant power supply.
3. Energy Efficiency: Storing surplus energy for later use. Surplus energy, which is produced during periods of low demand, can be stored and used later when demand is higher. This improves overall energy efficiency and reduces the need for additional grid infrastructure.  

Application Areas:

Metal Processing Industry: Continuous operation of smelters and rolling mills.
Chemical Industry: Continuous supply for reactors and production plants.
Glass Manufacturing: Constant power supply for melting and forming processes.
Automotive Industry: Securing production processes and charging infrastructure for electric vehicles.
Food Industry: Stable energy supply for cooling and production plants.
Data Centers: Reliable energy supply for servers and data processing facilities.  

Conclusion

The 7,000-hour rule offers energy-intensive companies an effective way to reduce grid charges and achieve significant cost savings. The use of battery storage can help meet the requirements of this rule while increasing energy efficiency and supply security. Companies should leverage the potential of battery storage systems to optimize their energy costs and remain competitive. For more information on implementing battery storage systems and using the 7,000-hour rule, we are available to assist you. Secure a free consultation now and optimize your energy supply.  

Sources:

[1] MVV Energie AG. (2023). 7000-Stunden-Regel: Keine finanzielle Mehrbelastung für stromintensive Unternehmen. URL: https://partner.m https://www.bmwk.de/Redaktion/DE/Downloads/klimaschutz/3-impulsvortrag-1-ag-sitzung-01-06-2023.pdf?__blob=publicationFilev=4

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