Peak shaving to reduce peak demand charges

For many businesses it is important to look at using battery storage to reduce peak demand charges.  Often, even one large energy spike can greatly increase total energy bills with this drawdown increasing the energy charge for all power usage. If the peak demand needed can be reduced then the overall electricity charges can be reduced.

Peak demand usually occurs when several high energy using pieces of machinery come into use at the same time, particularly if this machinery has large initial starting energy draws.

Peak demand is usually calculated based on the highest 15 minute average usage over a given month, even if it only occurs once a month (some energy retailers actually use the maximum usage over a yearly period, again even if this maximum only occurs once a year).  These demand charges are also often charged on a tiered scale with higher charges the higher the peak is.

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