Peak shaving improves energy efficiency by reducing overall energy consumption and optimizing grid resource utilization. Through strategies like battery storage integration and on-site renewable energy use, it minimizes reliance on grid power during high-demand periods, leading to systemic efficiency gains.
Key Efficiency Impacts
- Reduced Grid Dependency
By discharging stored energy (e.g., batteries) or using on-site renewables during peak hours, facilities avoid drawing power from the grid when generation is least efficient (e.g., fossil fuel peaker plants). This lowers fossil fuel consumption and associated transmission losses. - Demand Charge Mitigation
Shaving peak demand reduces costly demand charges, but it also smooths energy usage patterns, improving a facility’s load factor. Higher load factors correlate with better energy-use efficiency, as consistent consumption reduces wasteful spikes. - Integrating Renewables
Pairing peak shaving with solar/wind enhances efficiency by storing excess renewable energy for later use, reducing curtailment and improving self-consumption rates. This maximizes clean energy utilization and minimizes reliance on carbon-intensive grid power. - Operational Optimization
Energy audits and real-time monitoring during peak shaving help identify inefficiencies, enabling businesses to eliminate wasteful consumption and streamline operations.
Broader Grid Benefits
By flattening demand peaks, peak shaving reduces strain on grid infrastructure, cutting energy losses during transmission and distribution. It also supports grid stability, which is critical for integrating variable renewable sources at scale.
In summary, peak shaving enhances energy efficiency both at the facility level (through smarter consumption) and across the grid (via optimized generation and reduced waste).
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-peak-shaving-impact-overall-energy-efficiency/
