Peak shaving has a significant impact on electricity costs for commercial consumers by reducing demand charges, which are a substantial component of their utility bills. Here’s how peak shaving affects these costs:
How Peak Shaving Reduces Electricity Costs
- Demand Charges Reduction: Commercial consumers often face demand charges based on their highest power consumption rate during specific intervals (usually 15 minutes) within a billing period. By reducing peak demand through peak shaving, businesses can avoid high demand charges, thereby lowering their overall electricity expenses.
- Use of On-Site Energy Sources: Peak shaving involves using on-site energy generation, such as solar panels, diesel generators, or battery storage systems, to supplement grid power during peak periods. This reduces reliance on the grid and avoids high electricity prices during peak hours.
- Energy Storage Benefits: Battery energy storage systems (BESS) are particularly effective for peak shaving. These systems store energy during off-peak hours and discharge it during peak times, reducing the strain on the grid and lowering costs.
- Financial Predictability: By controlling and optimizing energy consumption, businesses can better predict and manage their energy costs, avoiding unexpected spikes in electricity bills.
Suitable Loads for Peak Shaving
Peak shaving is particularly effective for commercial and industrial facilities with high demand energy needs, such as:
- Electric Vehicle Charging Stations: These can significantly strain the local grid during peak hours, but using battery storage systems for peak shaving can minimize this impact.
- HVAC Systems: These can consume significant power, especially in large commercial buildings, and their operation can be optimized to reduce energy usage during peak times.
Overall, peak shaving is an effective strategy for reducing electricity costs by managing high demand periods and leveraging alternative energy sources or storage solutions.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-peak-shaving-impact-electricity-costs-for-commercial-consumers/
