Reduction in Grid Congestion Costs
Load shifting alleviates peak demand, directly reducing congestion-related expenses. This prevents reliance on expensive backup power sources and lowers the need for infrastructure upgrades, cutting costs for both grid operators and end-users.
Optimized Renewable Energy Utilization
By shifting demand to periods of renewable overproduction, load balancing enhances grid efficiency. This mitigates curtailment of solar/wind power and improves their market value, reducing wasted investments in renewables.
Lower Energy Prices
By flattening demand peaks, load shifting reduces price volatility caused by congestion. Lower peak prices benefit businesses through reduced operational costs, while avoiding penalties from demand spikes.
Deferred Infrastructure Spending
Effective load management delays costly grid expansions, freeing capital for other investments. Businesses avoid connection delays and fees linked to grid capacity limits.
Enhanced Economic Growth
Reduced congestion enables industries to expand operations without grid-related constraints, fostering job creation and innovation in energy-intensive sectors.
Improved Reliability Savings
Fewer outages and voltage fluctuations lower downtime costs for manufacturers, data centers, and healthcare facilities, protecting revenue and supply chains. Energy storage synergies (e.g., hybrid solar+storage plants) further stabilize prices.
Support for Sustainability Goals
Efficient load alignment with renewable output accelerates decarbonization, helping companies meet ESG targets and avoid carbon pricing penalties.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-economic-impacts-of-load-shifting-on-grid-congestion/
