Businesses with intermittent renewable energy sources, such as solar PV or wind turbines, can significantly benefit from peak shaving by leveraging energy storage and intelligent energy management to balance fluctuating generation and reduce energy costs.
How Peak Shaving Benefits Businesses with Intermittent Renewables
1. Balancing Renewable Generation and Load
- Intermittent renewables produce energy variably depending on weather conditions and time of day. Peak shaving allows businesses to store excess renewable energy generated during low-demand or high-generation periods (e.g., solar energy midday) in battery energy storage systems (BESS).
- This stored energy can then be dispatched during peak demand times, when renewable generation may be lower or when grid electricity is expensive, effectively “shaving” the peaks of grid demand and reducing dependence on the external grid.
2. Reducing Demand Charges and Electricity Costs
- Commercial electricity tariffs often include demand charges based on the highest power consumption within a billing interval. Peak shaving reduces these peak demands by using stored renewable energy or onsite generation to reduce grid draw during expensive peak hours.
- This leads to substantial cost savings, as energy consumed from the grid during peaks is typically priced higher. Businesses can avoid high demand charges by strategically deploying stored energy when grid demand peaks.
3. Enhancing Grid Stability and Energy Reliability
- Using peak shaving reduces strain on the electric grid during peak periods, contributing to overall grid stability and reducing the risk of outages.
- Battery storage also provides backup power during outages or low renewable generation, enhancing the reliability of power supply for critical operations.
4. Enabling a Hybrid and Flexible Energy System
- Peak shaving integrates with renewable energy sources and on-site generation (solar, wind, or even diesel generators) to create a hybrid system. It allows businesses to dynamically match energy consumption with renewable generation peaks and store surplus energy for later use, smoothing out the intermittency issues.
- Real-time monitoring and IoT-based controls optimize energy use patterns and automate peak shaving actions, increasing effectiveness.
Key Strategies for Businesses
| Strategy | Description | Benefit for Renewables Integration |
|---|---|---|
| Battery Energy Storage | Store renewable energy off-peak, release during peaks | Balances intermittent supply, avoids peak grid usage |
| On-site Generation | Use solar, wind, or other generators during peak hours | Reduces grid dependence during peak, complements storage |
| Load Management/Load Shifting | Adjust or schedule energy-intensive loads to off-peak times | Reduces peak demand, aligns usage with renewable output |
| Demand Response Programs | Participate in incentives to reduce demand during peaks | Helps grid and reduces costs simultaneously |
| IoT and Real-time Controls | Automated control of consumption and storage | Enhances peak shaving precision and adapts to changes |
Summary
Businesses with intermittent renewable energy sources benefit from peak shaving by storing excess renewable power when available and using it during peak demand periods, thus reducing expensive grid consumption and demand charges. This approach improves energy cost efficiency, grid stability, and power reliability while enabling more effective use of renewables despite their intermittency. Modern energy storage systems combined with smart monitoring and control further optimize these benefits.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-can-businesses-with-intermittent-renewable-energy-sources-benefit-from-peak-shaving/
