The cost savings for commercial buildings using peak shaving can be substantial, particularly when integrating energy storage systems (ESS) like battery energy storage systems (BESS) or commercial solar with ESS. Here are some key points regarding these savings:
Overview of Peak Shaving
- Peak Shaving Basics: It involves reducing electricity demand during peak periods to lower demand charges. These charges are often the most expensive part of a utility bill, determined by the highest electricity usage over a short interval, typically 15 minutes.
- Strategies and Technologies: Commercial buildings can achieve peak shaving through various methods, including using battery energy storage, commercial solar systems, and automated demand management systems to smooth out power consumption.
Cost Savings Factors
- Demand Charges Reduction: The primary cost savings come from reducing or avoiding demand charges. These charges are directly tied to the peak power usage within a billing cycle. By shaving off peak demand, commercial buildings can significantly lower these components of their utility bills.
- Renewable Energy Integration: When combined with renewable sources like solar, peak shaving becomes more effective. During off-peak hours or when solar energy is abundant, energy can be stored in batteries for later use during peak hours, reducing reliance on the grid and lowering energy costs.
- Flexibility and Automation: Modern energy storage systems use AI-powered software to predict and manage peak demand automatically. This automated approach ensures that energy usage is optimized without manual intervention, reducing operational risks and costs.
Case Studies and Examples
- NYPA Project: A recent project by the New York Power Authority demonstrated significant peak shaving capabilities using a battery energy storage system, showcasing potential cost reductions for commercial and industrial sites.
- Solar Design Studio Case: A case study at a large commercial facility showed that implementing solar PV with storage could lead to impressive savings by lowering demand peaks, even with a partial reliance on solar power.
Key Applications
- Electric Vehicle Charging Stations: Peak shaving is particularly beneficial for high-power applications like DC fast charging stations, where peak demand can be reduced using on-site energy storage, ensuring a more stable and cost-effective power supply.
- HVAC Systems and Energy-Intensive Appliances: Large commercial HVAC systems and other energy-intensive appliances can also benefit from peak shaving by optimizing energy usage during peak hours.
By implementing peak shaving strategies, commercial buildings can achieve substantial cost savings by reducing their demand charges and optimizing energy use, especially when integrated with renewable energy sources and advanced energy management systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-cost-savings-for-commercial-buildings-using-peak-shaving/
