Peak shaving

What is peak shaving?

Peak shaving is the deliberate and temporary flattening of peaks in energy consumption. This means preventing electricity consumption from exceeding a predetermined maximum. Instead of drawing extra power from the grid during busy periods, energy is stored intelligently or consumption is actively controlled.

This approach reduces the highest consumption moments of the electricity grid, also known as peak load and associated peak voltage. This results in lower costs for peak capacity, more efficient use of available energy, and better utilization of the existing grid connection. At the same time, you contribute to a more stable and reliable electricity grid.

How does peak shaving work?

Peak shaving works by continuously monitoring energy consumption and automatically intervening as soon as a peak threatens to occur. Smart systems store energy, spread consumption, or use local generation to limit peak loads.

In practice, this is achieved in various ways, often combining multiple techniques. The applications below show how peak shaving is used in practice to effectively prevent peak loads.

Use of batteries/energy storage

By harnessing (stored) energy from batteries during peak times using a battery storage system or energy storage system, you can reduce consumption from the grid. The battery is charged 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.

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.

Importance of peak shaving

Peak shaving is playing an increasingly important role these days due to growing demand for electricity, rising energy costs, and increasing pressure on the power grid. The electrification of business processes, mobility, and heating means that peak loads are occurring more and more frequently. At the same time, grid operators are struggling with grid congestion, and capacity tariffs are becoming an increasingly significant factor in energy costs.

This makes it necessary to use energy more intelligently and efficiently. By actively limiting peaks, companies and organizations can make optimal use of their existing grid connection, control energy costs, and reduce their dependence on the grid. In addition, peak shaving helps to prevent future expansions or upgrades of the grid connection, saving time, costs, and complex licensing processes.

Who might be interested in peak shaving?

Peak shaving is interesting for various target groups that are faced with high energy demand, limited grid capacity, or rising costs:

• Businesses and industry: to reduce peak loads, limit energy costs, and keep production processes stable.
• Logistics centers and data centers: due to high and often simultaneous energy consumption.
• Property owners and project developers: to make buildings future-proof without heavier grid connections.
• Installers and energy advisors: as a smart solution for customers with grid restrictions.
• Private individuals with solar panels and batteries: to make optimal use of their own energy and limit grid consumption.

For all these groups, peak shaving offers a practical and cost-effective way to gain control over energy consumption and costs.

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 using energy more consciously, you reduce CO₂ emissions and actively contribute to the energy transition towards 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.

By strategically applying peak shaving, you not only create immediate financial benefits, but you also invest in a stable and future-proof energy supply. This makes it a smart choice for organizations that want to save costs and grow sustainably.

Peak shaving in combination with Energy Management System (EMS)

An Energy Management System (EMS) is the central brain behind effective peak shaving. The EMS continuously monitors energy consumption, grid consumption, local generation, and the status of energy storage. Based on real-time data and preset parameters, the system recognizes when a peak is about to occur. The EMS then automatically controls batteries, installations, and energy sources to prevent or limit this peak.

Thanks to this intelligent control, peak shaving becomes not only more efficient, but also predictable and reliable. The EMS ensures that all energy flows are optimally coordinated, without the need for manual intervention. This enables organizations to make structural savings on energy costs while at the same time setting up their energy management in a future-proof manner.

Role of (home) batteries in peak shaving

Batteries play a key role in peak shaving. They act as a buffer between the electricity grid and energy consumption. During periods of low energy demand, low rates, or high local generation, the battery is charged. As soon as consumption rises and a peak threatens to occur, the battery immediately supplies energy back to the grid.

Both home batteries and large-scale battery systems ensure that grid consumption is limited and peak loads are smoothed out. In combination with an EMS, batteries can also be used intelligently based on forecasts and historical consumption data. This keeps total energy consumption better balanced, makes optimal use of the existing grid connection, and reduces dependence on the electricity grid.

Optimize your energy consumption with 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.

Frax's plug-and-play energy storage systems provide you with the right tools to successfully implement this strategy. Our innovative, user-friendly, and fully integrated solutions enable you to optimize energy consumption while increasing grid reliability.

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