Peak shaving significantly impacts electricity costs for businesses by reducing demand charges and overall energy expenses. Here’s how it affects businesses:
Impact on Electricity Costs
- Reduced Demand Charges: Demand charges, typically based on the highest electricity usage within a billing cycle, can account for 30-70% of a business’s energy bill. Peak shaving minimizes these charges by reducing peak power consumption, thus lowering the demand charge applied to the entire bill.
- Cost Savings: Businesses can achieve substantial cost savings by using energy storage systems to consume electricity during off-peak hours and store it for use during peak periods. This strategy avoids higher electricity rates associated with peak demand.
- Increased Reliability: Energy storage systems, commonly used for peak shaving, provide backup power during outages, ensuring business continuity and reliability.
Methods Used for Peak Shaving
- Energy Storage Systems (ESS): These systems store energy during off-peak hours for use during peak times, thereby reducing reliance on the grid when electricity is more expensive.
- Commercial Solar with ESS: Combining solar power with energy storage allows businesses to store excess energy generated during the day for use during peak periods, further reducing demand charges.
- Load Curtailment: Temporarily adjusting energy consumption by reducing non-essential use during peak periods can also contribute to lowering demand charges.
Benefits Beyond Cost Savings
- Grid Stability: By managing energy consumption effectively, businesses help stabilize the electricity grid, reducing stress on utilities during peak periods.
- Sustainability: Peak shaving often involves renewable energy sources, contributing to a more sustainable energy use profile for businesses.
In summary, peak shaving offers businesses a strategic approach to managing electricity costs, enhancing energy reliability, and contributing positively to grid stability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-peak-shaving-impact-electricity-costs-for-businesses/
