Benefits of On-Site Generation for Peak Shaving
1. Cost Savings
- Reduced Demand Charges: Many utility companies charge based on the highest demand during a billing cycle. On-site generation can lower this peak demand, reducing costs even if overall energy use remains the same.
- Cheaper Energy: Electricity costs are often lower during off-peak times. By using on-site generation during peak hours, businesses can avoid higher rates.
2. Energy Independence
- Reliability and Backup: On-site power generation systems act as reliable backups during grid outages or instability, ensuring business continuity.
- Stable Operations: This independence helps maintain operations even when external grid power is unavailable or unreliable.
3. Operational Flexibility
- Better Resource Management: By managing peak loads internally, businesses can optimize operations and schedule energy-intensive tasks more efficiently.
- Strategic Scheduling: Energy usage can be planned around peak times, improving overall operational flexibility.
4. Environmental Benefits
- Sustainability: Peak shaving can be combined with renewable energy sources (e.g., solar or wind) to reduce environmental impact. This approach minimizes reliance on non-renewable sources during peak periods.
- Lower Carbon Footprint: Reducing grid demand during peak times can lower greenhouse gas emissions.
5. Predictable Utility Costs
- Consistent Pricing: By reducing peak demand, businesses can stabilize their energy costs, making budgeting easier.
- Avoid Peak Pricing: The ability to manage and smooth out peak energy use avoids the financial impacts of high peak-hour pricing.
6. Grid Stability
- Reduced Strain: By lowering peak demand, on-site generation helps reduce strain on the electrical grid, supporting grid stability.
7. Additional Revenue Opportunities
- Sellback and Incentives: Depending on the region, businesses can participate in demand response programs or sell excess energy back to the grid, generating additional revenue.
On-site generation is a versatile tool for peak shaving, offering a range of economic, operational, and environmental benefits that enhance the efficiency and sustainability of energy management for commercial and industrial users.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-benefits-of-using-on-site-generation-for-peak-shaving/
