What is peak shaving?

How does peak shaving work?

Peak shaving is based on the idea that you actively try to reduce the highest peaks in your energy consumption. As soon as the system registers that a peak is about to occur, it automatically intervenes to reduce consumption or redistribute energy.

When energy consumption in a building or facility suddenly increases, it can lead to higher energy costs, especially if you have a contract that includes peak loads in the price. With peak shaving, these peaks are actively managed. In this way, you not only stabilize your own energy consumption, but also reduce the load on the power grid.

There are several ways peak shaving can be applied, depending on the specific situation and needs. Below we explain the methods:

Use of batteries/energy storage

By harnessing (stored) energy from batteries during peak times using an energy storage system, you can reduce consumption from the grid. The battery recharges when the energy demand or rate is lower. As soon as a peak threatens to occur, the battery immediately supplies energy, reducing your total offtake from the grid. This results in efficient and cost-effective use of electricity.

Distribution of energy consumption (load management)

With load management, you spread out your energy consumption over a longer period of time, so that heavy devices are not all running at the same time. The system recognizes when a peak in use is imminent and postpones other processes or switches them on earlier. In this way, you manage the total energy demand and prevent extreme peak loads.

It is also interesting to read our article on load shedding.

Deployment of local energy sources

Local generation, for example with solar panels or wind turbines, is another way to relieve the burden on the grid. After all, energy generated locally does not have to be taken from the public grid. During peak times, you can deploy local energy directly, reducing off-take from the grid and smoothing out the peak.

Use of smart devices

Smart appliances allow you to manage energy consumption automatically. Think of devices that only turn on when the energy price is low or when there is enough of your own energy available. These devices communicate with each other, tuning your energy use together to avoid peaks.

The benefits of peak shaving

Peak shaving offers numerous benefits to both businesses and grid operators. By reducing peaks in energy consumption, operational costs decrease and grid capacity is better utilized. For example, peak shaving offers the following benefits:

• Cost savings: by reducing peaks, you pay less for peak capacity and can save significantly on energy costs over time.
• Increased reliability: lower peak consumption stabilizes the grid, leading to fewer outages and a reliable power supply.
• Sustainable impact: by being more energy conscious, you reduce carbon emissions and contribute to a more sustainable society.
• Optimal grid load: energy consumption is better distributed, reducing the load on the power grid and allowing it to operate more efficiently.

Optimize your energy consumption through peak shaving!

Peak shaving is a crucial step in sustainably and efficiently managing your energy consumption. By actively reducing peak moments and making smart use of technologies such as battery systems, you can not only save substantially on energy costs but also reduce the load on the electricity grid.

With Frax's plug-and-play energy storage systems, you immediately have the right tools to successfully implement this strategy. Our innovative, user-friendly and fully integrated solutions make it possible to optimize energy consumption while increasing grid reliability.

By choosing Frax's systems, you are investing in a future-proof approach that will help your business or project grow while contributing to a more sustainable world.

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