Peak Shaving
Definition: Peak shaving is a strategy that involves reducing energy consumption during peak demand periods to minimize the maximum load drawn from the grid. This is typically achieved by using alternative energy sources, such as on-site generators or energy storage systems like batteries, during these times.
How It Works: Peak shaving often involves storing energy during off-peak hours and using it during peak periods. This strategy can significantly reduce demand charges, which are a substantial part of commercial electricity bills. It allows businesses to maintain operations without impacting their critical systems since it supplements the grid with alternative sources rather than curtailing use.
Pros:
- Cost Savings: Reduces demand charges.
- Grid Stability: Helps maintain grid stability by reducing peak demand.
- Flexibility: Allows for operational continuity without altering schedules.
Cons:
- High Initial Costs: Requires investment in energy storage or generation.
- Maintenance: Systems need regular maintenance.
Load Shifting
Definition: Load shifting is a strategy that involves moving energy consumption from peak hours to off-peak hours when electricity prices are lower and demand on the grid is reduced.
How It Works: Load shifting involves scheduling energy-intensive activities during periods of low demand, such as early morning or late evening. It doesn’t reduce overall energy consumption but changes when energy is used, thus optimizing energy costs.
Pros:
- Lower Operational Costs: Takes advantage of lower energy rates during off-peak times.
- Ease of Implementation: Doesn’t require significant infrastructure investments.
- Improved Energy Efficiency: Optimizes energy use timing.
Cons:
- Operational Disruptions: May require changes in operational schedules.
- Limited Applicability: Only suitable for businesses with flexible operational schedules.
In summary, while peak shaving focuses on reducing peak demand by supplementing grid energy with alternative sources, load shifting involves adjusting the timing of energy use to off-peak periods to take advantage of lower rates. Both strategies aim to reduce energy costs but through different approaches and are suited to different business scenarios.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-load-shifting-differ-from-peak-shaving/
