How Peak Shaving Helps
- Reducing Peak Demand: Peak shaving involves reducing power consumption during peak periods by using stored energy from sources like battery energy storage systems (BESS). This can prevent grid overload, which often necessitates costly upgrades.
- Avoiding Grid Congestion: By storing energy during off-peak hours and using it during peak times, peak shaving helps maintain a more stable grid load. This is particularly beneficial in avoiding grid congestion, which is a common reason for upgrading grid infrastructure.
- Optimizing Resource Usage: Peak shaving encourages more efficient use of existing infrastructure. By shaving peak loads, businesses and utilities can prolong the life of their current grid infrastructure, delaying the need for expensive upgrades.
Benefits for Utilities and Operators
- Lower Grid Fees: Reducing peak demand directly impacts grid fees, as these are often based on the highest demand intervals.
- Increased Grid Reliability: By stabilizing peak loads, peak shaving contributes to a more reliable and resilient grid, reducing potential downtime and operational costs.
- Cost Savings: Avoiding expensive upgrades is a significant financial benefit. Peak shaving allows operators to manage energy costs effectively without incurring additional infrastructure costs.
In summary, peak shaving is a cost-effective strategy that can delay or avoid the need for grid upgrades by efficiently managing peak loads and optimizing resource usage.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-peak-shaving-help-reduce-the-need-for-expensive-grid-upgrades/
