Peak Shaving

Peak Shaving (Demand Charge Reduction)

The battery reduces short-duration power peaks, lowering demand charges or peak procurement costs. The battery discharges only during the highest consumption periods to flatten the demand profile.

Example:

A factory spikes to 500 MW for 30 minutes every evening. A battery discharges 125 MW during that period, reducing billed peak demand to 375 MW.

Value Created:

  • Lower demand charges (especially for C&I customers)
  • Reduced maximum contracted demand penalties
  • Better load profile management