Local energy solutions pave the way into the future

Combining security of supply with new business models for municipalities and utilities

In times of increasingly fragmented energy markets, customer retention becomes ever more important, even more so for municipalities and utilities. Both also need to fulfill their supply obligations and at the same time optimize their cost structure. At the same time, market opportunities are arising due to the integration of heating and cooling as well as mobility and gas. The interconnection of these factors for public utilities establishes the ideal conditions for getting the most out of excess generation through sector coupling and with the help of distributed energy solutions.

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Retain customers, exploit market opportunities

Municipalities and utilities can use a large number of solutions to improve their competitiveness in order to retain their customers. This also allows to optimize energy costs while supporting the transformation to a more sustainable energy system.

Our solutions for municipalities and utilities comprise hybrid power plants combining a customized mix of renewable and fossil generation technologies – e.g. wind farms, photovoltaic plants, and combined heat and power (CHP). We also provide appropriate storage solutions and grid connections as well as enable sector coupling. Siemens’ sophisticated energy management solutions can be securely connected to MindSphere, the cloud-based, open IoT operating system. This allows you to integrate prosumers to your business and to develop and exploit new business models that are based on data analytics. To facilitate implementation specifically for your individual project, we provide consulting and financing services based on Siemens’ decade long experience in electrification.

The right solution for your situation

Municipalities and utilities in many regions are facing declining margins, increasing expenditure, and losses on the revenue side due to the ongoing decentralization of the energy system.


For Stadtwerke Wunsiedel, a German municipality, part of the solution to master these challenges is sector coupling. This means connecting power, heat and cold, mobility, and gas in combination with energy storage, and developing a regional, independent energy supply system. Exceeding power can be sold to the energy market and – because photovoltaic and wind power plants are financed by the municipality – all generated profit benefits the region.




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Municipalities and utilities have to fulfil their obligations – even under difficult circumstances. For example, the Mediterranean island Ventotene is not connected to the Italian main grid and relied upon a combination of diesel generators and photovoltaics to generate power.


Another characteristic is the fluctuation of power consumption. While there are only 700 permanent inhabitants on the island, the number grows to more than 3,000 people during tourist season in summer. This results in a major challenge when it comes to providing a scalable, low emission power generation that’s also reliable and secure. Therefore, the solutions comprise converters, batteries, low-voltage and medium-voltage switchgear, and the control unit, all integrated into a modern control system.




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Protecting the environment and at the same time stabilizing a weak power grid becomes possible by installing a local energy solution.


For islands like Isabela, the largest of the Galápagos islands, a new hybrid power plant based on photovoltaic and biofuel gensets replaced the old diesel gensets that were not only loud, but also required the diesel fuel being shipped from the Ecuadorian mainland to the island. The new solution is designed for biofuel, which is easily degradable and gensets are only being used when there’s no solar power available and when the battery storage system is empty.




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Further solutions for municipalities and DSOs

Specific business models for municipalities and distributed system operators

New business models for municipalities and DSOs

Discover how Siemens technology can help to leverage the potential of sector coupling for public utilities.

Financial solutions for your local energy solution

Siemens Financial Solutions

Financing is playing an increasingly important role in facilitating investments in the areas of energy, industry, healthcare, and infrastructure.


An intelligent solution for a reliable, sustainable, and efficient energy supply

The transformation of the energy system provides new opportunities for municipalities and utilities to strengthen their market position. Self-generation of power, heat and cold, digital control systems, and storage solutions are the means to achieve sustainable improvements.

Economic Intelligence

Sustainably increase customer retention through new business models and new energy offerings, based on data analytics. Additional benefits come in the form of energy cost optimization thanks to increased transparency over consumption patterns and new opportunities to control generation and demand. Moreover, participation in the electricity market provides the opportunity to generate additional revenue by selling excess power.

Supply Intelligence

Distributed energy solutions allow for a reliable energy supply even in remote locations or districts with specific demands regarding energy source and quality. For instance, a defined share of renewable energy can be ensured to meet the respective contractual demands of the consumers. Furthermore, grid stability increases when energy storage systems are integrated to help balancing power fluctuations.

Sustainability Intelligence

As customers are requesting both attractive pricing and clean power, this solution provides the ability to offer an economically reasonable combination that also improves the image thanks to a shift toward a more sustainable energy mix.


Distributed energy solutions at work

Find out more about how municipalities and DSOs can benefit from local energy sources.
Find your solution

Discover our local energy solutions

Your requirements are as specific as your competitiveness – and so is our offering. The Siemens portfolio for distributed energy solutions covers the entire lifecycle and is suitable for all markets.
Standardized and proven technology for highest flexibility of your distributed energy solution

Key technologies for your project

What makes a sophisticated local energy solution? Explore our portfolio to see how it works.

Business and financing models for your local energy solution

Business and financing models

Complete project support based on digitalization expertise, domain know-how and customized business models.


Get in contact with our energy experts

Setting up a local energy solution will be a lot easier with the help of an experienced partner. You can contact our energy experts 24/7. We are looking forward to your message and the opportunity to support your project.

Our local energy experts are looking forward to support your project