Consulting since 1992
What is Peak Shaving?
Peak shaving can be achieved by shedding load or by using onsite standby generation facilities during peak times. When reducing usage at peak times it can enable you to stay within your contract’s maximum demand and optimise network and retail tariff costs.
Peak shaving with batteries typically has a return on investment between three and five years. Batteries typically last 15-20 years so reduction in utility costs results in savings for ten plus years on a peak shaving project.
Using batteries for peak shaving is not as simple as deciding to peak shave and switching to batteries to transfer load during peak hours. A financial analysis should be completed to ensure that peak shaving will meet the financial goals of the organization.
There are several factors to consider including equipment cost, installation cost, coordination, and planning. The planning stages of a peak shaving project should include engineering support, utility company participation, electrical contractors, generator and distribution supplier, as well as the local facility team. Getting the right people involved early in the process can help the project remain on time and on budget, getting the best return out of the investment.
If an organization has high utility expenses, peak shaving should be investigated every few years as the organization grows. While it may not make sense initially, it might make sense as utility expenses and power demand increase.
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