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Peak Shaving

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In the energy industry, peak shaving refers to the strategy of realizing peak load shaving for industrial and commercial electricity consumers. These peak loads, also known as “peaks,” are important for both grid stability and electricity procurement costs. The grid usage fees, which make up a significant portion of the total costs, are based, among other things, on the highest power consumption during the billing period. A more even distribution of electricity consumption can significantly reduce the costs for grid usage, in particular the capacity price.

Functionality of Peak Shaving

Peak shaving is achieved by consumers reducing their electricity consumption quickly and in the short term to avoid peak loads. This is done either by throttling production or by using on-site generation plants and battery storage systems to use self-generated electricity in critical times. The load reduction is often carried out by so-called “peak load monitors,” which control the power consumption every fifteen minutes and intervene during peak load times.

Differences between Peak Shaving and Load Shifting

In contrast to load shifting, where electricity consumption is increased at a later time to take advantage of more favorable prices or lower grid utilization, peak shaving focuses on controlling the loads and the battery system in real time. Here, electricity consumption is reduced immediately to avoid the impending peak loads.

Reasons for Peak Shaving Measures

The reasons for implementing peak shaving are varied:

  • High grid costs: Companies often struggle with rising fees for using the electricity grid.
  • Fluctuations in the power supply: The integration of renewable energies can lead to irregular load profiles.
  • Industrial processes: Many industrial companies cause fluctuating loads due to their production processes, which can generate peak loads.

Consequences of Peak Shaving

  • Cost savings: By avoiding peak loads, companies can achieve significant savings in grid usage fees. Targeted measures can achieve savings of up to 80% of the grid usage fees.
  • Grid stability: Peak shaving helps to avoid overloads in the power grid and promotes general stability.
  • Environmental impacts: More efficient use of electricity can reduce CO₂ emissions and thus be more environmentally friendly.

Strategies for Implementing Peak Shaving

  • Energy storage solutions: The use of battery storage systems can help to balance peak loads by storing energy during times of low demand and using it during peak load times.
  • Demand Side Management: This concept includes various approaches to control electricity consumption during peak load times. The use of electricity storage and on-site generation plants can help to absorb peak loads.
  • Load management systems: These systems enable companies to monitor and control their energy consumption in real time.

Advantages and Disadvantages of Peak Shaving

Advantages of Peak Shaving

  • Cost reduction: Companies can achieve significant cost savings, especially in grid usage fees.
  • Flexibility and integration of renewable energies: Flexible grid usage facilitates the integration of renewable energies and contributes to the energy transition.

Disadvantages of Peak Shaving

  • Investment costs: The implementation of energy storage systems and modern load management systems can require high initial investments.
  • Risk of undersupply: Improper control during peak load times could lead to a temporary shortage of energy.

Summary of Peak Shaving

Peak shaving is an effective method for reducing peak loads in electricity consumption, which offers companies numerous advantages, including significant cost savings. Well-thought-out management and the use of modern technologies are crucial to ensure grid stability and increase efficiency. Companies should make full use of the opportunities to optimize their grid usage and reduce costs through peak shaving.

Note: Please note that the Wiki entry Peak Shaving is for information purposes only and does not replace legal advice. be.storaged GmbH assumes no guarantee for the completeness, accuracy and timeliness of the information in this entry.

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