What is Peak Demand?

Benefits

Significant reduction in Utility bill
Improved power quality and stability
Reduce the cost for backup capacity
More predicable and manageable bills

Many commercial/industrial energy users find themselves in the position that their actual energy usage can be as little as 50% of their total electricity bill due to their demand charges. These demand charges are based on the utilities need to be capable of supplying sufficient power on demand at any time. Businesses and institutions have two major components to their electricity bill, one being the actual kWh’s they use and the other for the peak power they consume at any one time, which is measured in kilowatts (kW).

Demand charges exist because utilities are required to maintain a vast array of expensive equipment on constant standby in order to meet sudden surges of electrical demand from larger energy users. Utilities penalize clients for the cost of this equipment in the form of peak demand charges.

How to manage it

There is a combination of two major components that are used to reduce and manage the peak demand charges through reducing the peaks of a business’s energy usage.

The first option, is the Automated Intelligent Load Management of non-essential devices such as heat pumps, geysers, boilers, air conditioners, refrigeration units, pumps, etc. Substantial peak power reductions can be achieved without any inconvenience to the business or its clients by managing the starting and stopping of certain equipment and appliances.

The second is an Intelligent peak demand energy storage system that constantly monitors your energy usage and discharges from a battery bank when surges are required. During low energy usage periods, Solar recharges the battery bank with the excess power available. This flattens the spikes in power usage, which reduces your demand charges by up to 50%. This is an intelligent way to save on your electric bill without turning off equipment or changing building occupant behavior.

 

An example of infographic for peak demand