Peak Shaving: What is it and how can you save on energy costs?
What is Peak Shaving?
Peak shaving is a strategy where businesses and organizations reduce their energy consumption during peak hours to save costs and reduce strain on the electricity grid. This can be achieved by shifting energy-intensive processes to off-peak hours, utilizing batteries, or using decentralized energy sources such as solar panels and combined heat and power (CHP) systems.
Why is Peak Shaving important?
1. Cost savings with peak shaving
Many energy suppliers use a capacity tariff, where companies pay based on their peak load. By flattening peaks, companies can reduce their network costs.
2. Preventing power grid overload
The Dutch electricity grid is becoming increasingly congested due to the growth of electric vehicles, heat pumps, and sustainable energy sources. Many regions are already experiencing grid congestion, making it difficult for businesses and households to obtain new or larger connections. Peak shaving helps to utilize the grid more efficiently and prevent expensive grid reinforcements.
3. Achieving sustainability goals
By combining peak shaving with sustainable energy sources and energy storage, companies can reduce their CO2 footprint and contribute to a more stable and greener energy system.
How does Peak Shaving work?
1. Monitoring and data analysis
It starts with understanding your energy consumption. Smart meters and energy management systems like EnergyGrip provide real-time insight into peaks and valleys.
2. Flexible energy use
Companies can optimize processes such as cooling, heating, or production by scheduling them outside peak hours.
3. Battery storage and energy management
Batteries can store excess energy and release it during high-demand periods, reducing direct grid consumption.
4. Own generation and smart control
Combining solar and wind energy with smart software helps to use generated energy as efficiently as possible and avoid peaks.
5. Dynamic energy contracts
With dynamic energy contracts, businesses and consumers can benefit from low rates during electricity surplus periods. By shifting energy consumption to these moments, they can not only save costs but also help balance the grid.
Who is Peak Shaving relevant for?
Businesses with high energy consumption
Factories, data centers, and logistics hubs often have large power peaks due to machinery, servers, and transportation equipment. Through peak shaving, they can reduce their peak load, directly impacting their energy costs and grid connection tariffs. This is especially important for businesses with large cooling installations, production lines, or electric vehicle fleets.
Property owners and facility managers
Office buildings, shopping centers, and hotels often experience fluctuations in energy consumption, for example through climate control systems and lighting. Through smart energy management and peak shaving, they can reduce energy costs and better respond to energy market dynamics. This becomes increasingly important with the growing electrification of buildings.
Energy cooperatives and collectives
Local energy cooperatives and business collectives can apply peak shaving by better aligning generation and consumption collectively. For example, by using shared batteries or by distributing energy flows more intelligently between participants.
Peak shaving for consumers and households
Not only businesses but also households can benefit from peak shaving. More and more consumers have solar panels, electric cars, and heat pumps, which demand significant power. By controlling these smartly with timers or energy management apps like EnergyFlip, households can reduce their energy costs and contribute to a more stable grid. For example:
- Charging an electric car or home battery during off-peak hours.
- Running the dishwasher or washing machine when there’s excess solar or wind energy.
- Using smart thermostats to align the heating system with energy prices.
Practical tips: What can you do now?
- Analyze your energy consumption with smart meters and an energy management system.
- Shift energy-intensive activities (such as EV charging or production processes) to off-peak hours.
- Consider battery storage to absorb energy peaks and increase flexibility.
- Use dynamic energy contracts and align your consumption with price fluctuations.
- Look into sustainable generation and smart control, such as solar panels combined with software-controlled energy planning.
Conclusion
Everything starts with insight. You can’t control what you don’t measure. Measuring is knowing – and only when you truly understand your energy consumption can you effectively take measures to apply peak shaving.
Would you like to gain insight into your energy consumption and discover how your organization can apply peak shaving? We’re here to help! Contact us to explore the possibilities.
Want to learn more about peak shaving and grid congestion? Check out Netbeheer Nederland’s report on the challenges and solutions for the electricity grid.