Peak shaving offers significant cost savings for industrial facilities by reducing energy consumption during periods of high demand, thereby lowering demand charges. Here are some insights into the cost benefits associated with peak shaving:
- Reduced Demand Charges: Peak shaving primarily helps in decreasing the demand charges, which can account for a substantial portion of electricity bills. By lowering the peak demand, facilities can save money as demand charges are often calculated based on the highest power consumption rate during the billing period.
- Lower Overall Energy Costs: By using alternative energy sources, such as battery energy storage systems, facilities can avoid buying electricity at high prices during peak hours. This approach can lead to savings of up to 20%-30% on energy bills by reducing reliance on grid power during peak times.
- Savings Example: In a specific case, a facility in Ontario saved about $4,890.76 monthly on non-coincident peak charges by implementing a peak shaving strategy using a battery energy storage system.
- Additional Revenue Streams: Facilities can also generate revenue by selling excess stored energy back to the grid during off-peak hours, further enhancing the cost benefits of peak shaving.
- Sustainability and Energy Security: Beyond financial savings, peak shaving contributes to reduced carbon footprints and increased energy security, making it a strategic choice for facilities aiming to optimize their energy management while supporting sustainability goals.
Overall, the cost savings associated with peak shaving depend on factors like electricity pricing structures and the specific demand charges faced by industrial facilities. However, the use of technologies like battery storage and on-site generation can significantly enhance these savings.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-savings-associated-with-peak-shaving-for-industrial-facilities/
