Energy storage contributes to peak shaving primarily by storing electricity during off-peak periods and discharging it during peak demand times, thereby reducing the amount of power drawn from the grid when demand and prices are highest. This process helps “shave off” the peaks in energy consumption that otherwise place stress on the grid, cause higher energy costs, and necessitate costly infrastructure upgrades.
How Energy Storage Enables Peak Shaving
- Storing Energy Off-Peak: Battery Energy Storage Systems (BESS) store energy when electricity demand and prices are low, often during night or midday periods when renewable generation like solar is abundant or grid demand is minimal.
- Discharging During Peaks: During peak hours—when industrial, commercial, or residential demand spikes—stored energy is discharged locally to supply power. This reduces the peak load drawn from the grid, effectively flattening the demand curve.
- Reducing Demand Charges: Many commercial and industrial customers face demand charges based on their highest short-interval (e.g., 15-minute) power consumption. Using stored energy to reduce these peak draws directly lowers these charges and results in significant cost savings.
- Supporting Inflexible Loads: Some processes cannot be shifted to off-peak times due to operational constraints (e.g., continuous manufacturing lines). Energy storage allows these loads to remain on while reducing grid demand by supplying local stored power during peaks.
- Enhancing Renewable Integration: Excess energy from intermittent renewables like solar PV and wind can be stored and dispatched during peak demand, increasing self-consumption of clean energy and avoiding fossil fuel use during high-price times.
- Automated & Responsive Control: With intelligent energy management systems, batteries can rapidly respond to grid price signals or demand spikes, discharging energy precisely when needed to maximize economic and operational benefits.
Benefits and Outcomes
- Grid Stability and Reliability: Smoothing peak demands reduces the risk of grid overloads, blackouts, and the need for expensive grid reinforcements.
- Cost Optimization: By avoiding expensive peak-time electricity and demand charges, organizations reduce operational expenses and improve financial predictability.
- Energy Autonomy: Consumers gain more control over their energy usage and can maintain critical operations during grid disturbances by relying on stored energy.
- Environmental Impact: Peak shaving with storage increases the utilization of renewables and decreases reliance on fossil-fuel peaking plants, moving toward greener energy consumption.
Summary Table
| Aspect | Role of Energy Storage in Peak Shaving |
|---|---|
| Energy Timing | Charges during off-peak; discharges during peak demand |
| Cost Reduction | Lowers demand charges and peak electricity costs |
| Load Flexibility | Supports non-shiftable loads by supplementing grid power |
| Renewable Integration | Stores excess renewable generation for use during peak periods |
| Grid Impact | Reduces peak load, defers infrastructure upgrades, enhances grid stability |
| Control | Enables real-time management and automated peak response |
In essence, energy storage systems are a critical tool for peak shaving by acting as a buffer between variable energy demand and supply. They enable consumers to optimize their energy costs, improve grid resilience, and support sustainable energy transitions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-energy-storage-contribute-to-peak-shaving/
