Yes, peak shaving with energy storage can significantly help reduce energy costs for large consumers. Here’s how:
How Peak Shaving Works
Peak shaving involves reducing electricity consumption during peak hours to lower demand charges. It typically uses energy storage systems (like batteries) or on-site generation to cover energy needs during these periods.
Benefits for Large Consumers
- Cost Savings: Electricity rates are higher during peak hours compared to off-peak hours. By using stored energy or on-site generation, large consumers can avoid these higher rates and save on their monthly bills.
- Avoid Demand Charges: Utility companies often charge based on the highest peak power consumption within a billing cycle. Peak shaving helps reduce these demand charges by lowering the maximum power draw during peak times.
- Energy Independence: Investing in energy storage or generation allows businesses to reduce their reliance on the grid, providing a stable power supply even during peak demand periods. This also acts as a backup during grid outages.
- Renewable Energy Integration: Combining peak shaving with renewable energy sources can enhance sustainability efforts while further reducing energy costs and carbon footprint.
In summary, peak shaving with energy storage is a valuable strategy for large energy consumers looking to mitigate high energy costs, especially those facing significant demand charges and seeking to improve their environmental impact.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-peak-shaving-with-energy-storage-help-reduce-energy-costs-for-large-consumers/
