Load shifting is a valuable strategy used by businesses to reduce peak demand on the electric grid. Here’s how it helps:
How Load Shifting Reduces Peak Demand
- Timing Adjustment:
- Load shifting involves adjusting the timing of energy-intensive activities from peak hours, when demand is high, to off-peak hours, when demand is less intense.
- This timing adjustment helps smooth out the demand curve, reducing strain on the grid during peak periods.
- Cost Savings:
- By consuming energy during off-peak periods, businesses can take advantage of lower energy prices, thus reducing their overall energy costs.
- Lower energy costs not only benefit the company financially but also help avoid high demand charges associated with peak usage.
- Grid Stability:
- Load shifting contributes to grid stability by balancing energy demand across different times of the day.
- This balance is crucial for integrating intermittent renewable energy sources into the grid, supporting broader sustainability goals.
- Technological Support:
- Technologies such as battery energy storage systems (BESS) are pivotal in facilitating load shifting.
- BESS can store energy during off-peak times and discharge it during peak hours, reducing peak demand charges.
Key Differences from Peak Shaving
While both peak shaving and load shifting aim to reduce peak demand, they differ in approach:
- Peak Shaving involves reducing the overall demand at peak times, often using energy storage or on-site generation to lower grid reliance.
- Load Shifting focuses on redistributing energy use from peak to off-peak times without necessarily reducing total energy consumption.
Load shifting is particularly beneficial for businesses with flexible operational schedules and in regions with time-of-use (TOU) pricing.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-load-shifting-help-in-reducing-peak-demand/
