Peak Shaving (Demand Charge Reduction)
The battery reduces short-duration power peaks, lowering demand charges or peak procurement costs. The battery discharges only during the highest consumption periods to flatten the demand profile.
Example:
A factory spikes to 500 MW for 30 minutes every evening. A battery discharges 125 MW during that period, reducing billed peak demand to 375 MW.
Value Created:
- Lower demand charges (especially for C&I customers)
- Reduced maximum contracted demand penalties
- Better load profile management