What is peak shaving?
In many countries, electricity prices for large-scale consumers are set according to their maximum peak load. The reason for this is simple: the electricity network must be calculated to handle the amount of energy required and designed to handle peak loads. And this involves sky-high costs.
The development of commercial solar parks and the increasing use of solar panels by residential customers are placing an increasing load on the network. Peak shaving or peak smoothing is a way to smooth these peaks and reduce the load on the grid.
What is peak shaving or peak smoothing?
In the power sector, peak shaving or peak smoothing refers to smoothing the peaks in electricity consumption by industrial and commercial power consumers. These peaks in power consumption greatly affect the stability of the power grid. Frequent peaks can adversely affect power purchase costs.
Peak smoothing versus load shifting
In peak smoothing, a consumer reduces power consumption ("load shifting") quickly and for a short period of time to avoid a spike in consumption. This is possible by temporarily reducing consumption, activating its own 'closed' energy system, or by using a solar battery.
Load shifting, also known as "demand shifting" or "load shifting", is the process of shifting electricity consumption from peak to off-peak hours. The purpose of load shifting is to level out the demand for electricity during the day, thereby reducing or preventing peak loads.
Peaks and grid costs
Network operators are not happy with energy peaks on the power grid. Developing a network that can cope with such energy peaks involves sky-high costs. They have to pass these costs on to their customers, who in turn also face high costs.
Yet everyday activities at many industrial companies - such as the energy-consuming start-up or increase of a production process - can cause fluctuating loads on the network.
By actively monitoring power consumption, it is possible to detect the source of a sudden increase in load. Depending on the grid operator, these spikes are used to calculate grid charges for certain power consumers.
Practical application peak shaving
Peak shaving, or user-side energy management, can be done by better distribution of energy consumption or by energy storage. When it comes to managing peak loads, there are several approaches.
Peak smoothing in businesses
Peak load monitoring involves tracking and regulating energy consumption by time section according to a predefined peak load. If the monitor predicts that the peak load in the next time section will exceed the predefined threshold, certain processes are scaled down from power consumption. This allows a company to regulate maximum power consumption and avoid high peaks.
If load reduction is not desirable or impossible, a company can also supply its own additional power to avoid peak loads. This additional power can come from sources such as own energy storage or production. Through solar batteries and/or a generator, a more constant energy consumption of the network is ensured.
Another way businesses can benefit from peak shaving is by using a combination of solar panels and a separate energy supply. Companies can use solar panels to generate electricity during the day and use an alternative energy supply to supplement this energy at times when there is little sunlight.
In this way, companies can ensure a constant energy supply. In this scenario, in-house energy supply is only available for situations where consumption exceeds available energy.
Ultimately, this can help reduce the need for expensive peak power and help companies continue operations without interruption.
Peak shaving with a battery
With the huge increase in the use of solar panels, peak shaving for consumers is also becoming increasingly topical. One way both individuals and businesses can engage in peak shaving is by purchasing batteries.
By using batteries, individuals and businesses can store excess energy generated for a later time, thus reducing feed-in to the grid. In this way, the grid is prevented from taking a huge load on sunny days.
Thus, peak shaving allows consumers to benefit from more efficient energy use and avoid energy peaks in the grid.
Peak shaving for grid operators
For grid operators, peak shaving is a beneficial way to keep grid costs down. This also translates into lower costs for businesses and households. An efficient network requires lower costs of power lines and distribution points.