On-site generation systems play a crucial role in peak shaving by providing an alternative source of power during periods of high demand. These systems help reduce the amount of electricity drawn from the grid, which in turn lowers the peak demand charges that energy consumers face. Here are key ways on-site generation systems contribute to peak shaving:
Role of On-Site Generation Systems
- Alternative Energy Source:
- Natural Gas Generators: These can supply power directly to the facility during peak hours, reducing reliance on grid electricity.
- Solar Panels: Excess energy generated during the day can be stored in batteries for use during evening peaks, helping to offset peak demand.
- Wind Turbines: Similar to solar, wind energy can be used to supplement grid power during peak periods.
- Combination with Energy Storage:
On-site generation often works in tandem with battery energy storage systems (BESS). Energy generated during off-peak times is stored and then used during peak hours to maintain operations without drawing heavily from the grid. - Reducing Demand Charges:
By using on-site generation, businesses can limit the maximum peak load they draw from the grid. This reduces their demand charges, which are often calculated based on the highest peak usage during a billing cycle. - Grid Stability:
By reducing peak demand on the grid, businesses help maintain grid stability. This is especially important during hot summer days or cold winter nights when energy demand tends to spike. - Operational Flexibility:
On-site generation provides businesses with the flexibility to adjust their energy usage without drastically altering operational schedules or production levels.
Implementation and Benefits
- Cost Savings: Reducing peak load can lead to lower energy bills, as demand charges are minimized.
- Energy Security: Having a backup power source ensures continuous operations even during grid outages.
- Sustainability: Using renewable energy sources like solar or wind can align with business sustainability goals.
In summary, on-site generation systems are vital for achieving peak shaving by offering a reliable alternative to grid power during high demand periods, reducing costs, and contributing to grid stability.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-role-do-on-site-generation-systems-play-in-peak-shaving/
