Introduction to Peak Shaving
Peak shaving is an energy management technique used by businesses and industries to reduce their electricity usage during periods of high demand, known as peak demand times.
Peak shaving involves both reducing overall energy consumption during peak times and shifting that consumption to more cost-effective or sustainable energy sources. By strategically managing when and how you use energy, you can significantly cut down on energy costs, avoid demand charges, and contribute to a more stable energy grid.
Benefits of Peak Shaving
During peak demand times, the cost of electricity often rises due to the increased strain on the power grid. Utilities charge higher rates during these periods to manage the higher operational costs, which can lead to expensive electricity bills for large consumers. Peak shaving involves adjusting your use of grid-supplied electricity when prices are highest, ensuring you avoid excessively high energy costs.
- Cost Savings: Reducing energy consumption during peak periods can lead to significant cost reductions on electricity bills.
- Avoidance of Demand Charges: Many utilities impose demand charges based on the highest level of energy used during peak periods. By shaving these peaks, businesses can avoid these additional costs.
- Enhanced Grid Stability: Contribute to a more balanced energy grid, helping to prevent grid congestion, blackouts and other grid instability issues.
- Sustainability: Lowering energy consumption, especially during peak times, can reduce the carbon footprint of a business and support sustainability goals.
How Peak Shaving Works
Peak shaving can be achieved through various strategies, depending on the specific needs and operations of a business. Common methods include:
- Load Shifting
Load shifting involves moving energy-intensive processes to off-peak times when electricity demand and prices are lower. This can be done manually or automated through advanced energy management systems.
- Energy Storage Systems
Batteries and other energy storage systems can be charged during off-peak hours and discharged during peak periods to reduce the amount of energy drawn from the grid.
- Demand Side Response Programs
Participating in Demand Side Response (DSR) programs rewards businesses with incentives for reducing their grid-supply energy usage during peak times, which can lead to additional cost savings.
- On-Site Generation
Installing on-site power generation systems, such as solar panels or backup generators, enables businesses to produce their own electricity during peak demand times, reducing reliance on the grid.
Implementing Peak Shaving in Your Business
Implementing these techniques manually can be a complex process that requires careful planning and analysis of your energy usage patterns. However, with an end-to-end solution from Volstora it’s easy to achieve a peak shaving strategy.
Our revolutionary Volstora battery energy storage systems, combined with our proprietary energy management software DAV3, provide everything you need to minimize your company’s energy bills. Our systems go beyond helping you to monitor and manage your energy usage in real-time – they can also help you to optimize energy trading, selling surplus electricity to the grid for maximum profit.
Contact our team today to learn more about how peak shaving can benefit your business and to explore customized solutions tailored to your energy needs.