All-Electric Quarter:
3–5.5M EUR CAPEX Savings
A historic industrial site on a southern German river becomes a forward-looking mixed-use quarter — with a radically simplified energy concept that saves millions.
Site Area
Historic Industrial Site
Total Power Demand
approx. 5 MW
CAPEX Savings
3–5.5M EUR
Own Generation
up to 4,500 MWh/a
An Industrial Monument Before Its Restart
Built in the 1860s, the industrial site sits directly on a southern German river. Production continued until 2020 — after which the site faced a fundamental realignment: a forward-looking mixed-use quarter for living and working, with areas for gastronomy, culture and retail. The project was selected as an official project for a supra-regional architecture and building exhibition program.
The existing power supply was extremely complex with four voltage levels (10 / 5 / 0.5 / 0.4 kV) and three hydropower turbines. Documentation was only fragmentary, many system components had reached or significantly exceeded their service life. Immediate action was required at several points.
The Conventional Concept: Expensive and Complex
An external planning office created a comprehensive power supply concept. Total power demand was approx. 5 MW (with simultaneity approx. 4.2 MW). The largest shares were charging infrastructure (2.1 MW) and a central large heat pump (1.2 MW). The rough costs for the energy distribution network alone amounted to approx. 4M EUR.
Conventional Grid Costs
Radically Simplified: All-Electric Without Central Heat Pump
Frank Hummel Consulting analyzed the existing concept and developed an alternative approach: All-Electric — without the cost-intensive central large heat pump with its elaborate heat distribution network.
Infrared Heating Instead of Central HP
Modern infrared panels replace the central large heat pump. No heat distribution network, no transfer stations, no underfloor heating — CAPEX reduction of 60–80% compared to the conventional approach.
Decentralized Hot Water
Instantaneous water heaters and small heat pump boilers instead of central hot water supply. Each unit self-sufficient, no legionella risk, minimal installation effort.
Realistic Charging Infrastructure
Instead of the oversized 2,100 kW, 300–500 kW are realistically dimensioned — based on actual usage behavior and intelligent load management.
Hydropower and Photovoltaics: Two Sources, One Goal
The site has three existing hydropower turbines with a total capacity of 776 kW and annual generation of around 2,500 MWh. Supplemented by photovoltaic systems with 800 kWp (expandable to 2,000 kWp), this creates a complementary generation profile: hydropower delivers consistently, PV supplements in summer months.
With a self-consumption rate of over 70%, the average electricity mix is 8–11 ct/kWh — a decisive competitive advantage over pure grid supply and the basis for an attractive energy flat-rate model for tenants.
776 kW
approx. 2,500 MWh/a
3 turbines, existing
800–2.000 kWp
approx. 800–2,000 MWh/a
Roof + optional open area
Total Generation
up to 4,500 MWh/a
Electricity Mix Cost
8–11 ct/kWh
The Numbers Speak for Themselves
The all-electric approach saves not only on initial investment but also in ongoing operations. Savings are distributed across several areas:
CAPEX Savings in Detail
New Investments
Net CAPEX Savings
3–5.5M EUR
Economics: CAPEX
OPEX Savings per Year
50,000–120,000 EUR
Economics: OPEX
Why Investors Benefit
Less Technical Space
Without central heat pump and heat distribution network, large technical rooms are eliminated. These areas become rentable usable space — a direct added value for the investor.
Faster Rentability
Infrared panels and decentralized hot water are installed in weeks instead of months. The quarter is ready for occupancy faster, rental income flows earlier.
Energy Flat-Rate Model
With an electricity mix of 8–11 ct/kWh and over 70% self-consumption rate, an attractive flat-rate model can be offered to tenants — a USP compared to conventional quarters.
Faster ROI
Lower initial investment + lower operating costs + faster rental = significantly shorter payback period. Break-even is reached years earlier.
Transferable Insights
This project exemplifies how the all-electric approach works in quarter conversions. The core theses are transferable to comparable projects:
Central heat pumps are often oversized and uneconomical in quarters with own generation.
Infrared heating combined with well-insulated buildings is a serious alternative — not only in new construction.
Charging infrastructure is regularly oversized by a factor of 4–7x. Intelligent load management drastically reduces grid expansion.
Hydropower and PV complement each other seasonally — the combination maximizes the self-consumption rate.
The entrepreneur-for-entrepreneur approach questions planning office concepts from the investor perspective — and often finds simpler, more economical solutions.
Similar Project?
Let us check in a non-binding sparring session whether the all-electric approach also works for your project.