ROI Analysis: 2MW Gas Power vs. Variable Grid Tariffs ($0.15 - $0.25)

The Power of Arbitrage: 2MW Gas Power ROI vs. Variable Grid Rates
Jan 21, 2026

For a 2MW continuous load (generating 15.84M kWh annually), the cost of self-generation remains relatively stable at approximately 0.075/kWh. This creates a massive "Spark Spread" as grid tariffs rise.

Below is a breakdown of how your investment recovers under three typical market conditions, based on a 1.2 Million USD total system CAPEX (including equipment, installation, and grid integration).

Scenario 1: Grid Price at 0.15 USD/kWh

  • Annual Grid Cost: 2.38 Million USD

  • Annual Gas Power Cost: 1.19 Million USD

  • Annual Savings: 1.19 Million USD

  • Payback Period: ≈ 1.0 Year

  • Verdict: At this price point, the system pays for itself in just 12 months. It is a highly efficient cost-reduction strategy for any manufacturing plant.

Scenario 2: Grid Price at 0.18 USD/kWh

  • Annual Grid Cost: 2.85 Million USD

  • Annual Gas Power Cost: 1.19 Million USD

  • Annual Savings: 1.66 Million USD

  • Payback Period: ≈ 0.7 Year (8–9 Months)

  • Verdict: In high-tariff markets, the ROI accelerates into the "Rapid Payback" zone. You recover your capital in less than three quarters of a year.

Scenario 3: Grid Price at 0.25 USD/kWh

  • Annual Grid Cost: 3.96 Million USD

  • Annual Gas Power Cost: 1.19 Million USD

  • Annual Savings: $2.77 Million USD

  • Payback Period: ≈ 0.4 Year (approx. 5 Months)

  • Verdict: At this price level, gas generation is no longer just a "savings plan"—it is a powerful cash-flow engine with an ROI that outperforms almost any other industrial asset.

Investment Performance Summary

Grid Price (/kWh)Annual Savings (USD)Payback Period (Years)
$0.15$1.19 Million1.0 Year
$0.18$1.66 Million0.7 Year
$0.25$2.77 Million0.4 Year

Executive Conclusion

The financial logic for 2MW continuous loads is clear: The higher the grid price, the faster the ROI. 1.  The Threshold: Once grid prices exceed 0.15/kWh, natural gas power becomes an essential investment with a 12-month recovery time.

2.  Exponential Returns: As tariffs climb to $0.18 or $0.25, the payback period shortens exponentially, allowing factories to secure long-term energy independence and lock in low operating costs for the next 15+ years.


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