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Auxiliary power units (APUs) are used in mobile applications to supply electrical power in the range of 3 to 10 kW. The state of the art generators are driven by a diesel engine at constant speed. They have a low efficiency (high fuel consumption) as they operate mostly in partial load conditions. A higher efficiency for partial loads is feasible by adjusting the speed of the diesel engine to its optimum efficiency. A frequency converter provides a constant electric frequency at variable speed of the generator. The resulting higher investments for such a variable speed generator (VSG) need a proof of economics, which is demonstrated by this investigation.