Peak Shaving
Peak Shaving: Cut Peak Demand and Lower Demand Charges
Peak shaving specifically reduces the demand peaks in a building's electricity consumption, without compromising comfort or operations. Many commercial electricity tariffs include a demand charge: a fixed price per kilowatt that can make up a large share of the electricity bill. It is based on the highest peak demand in the billing period, not on total consumption, so a single peak can set the cost for the entire billing period, in some tariffs for a full year. AI-based automated capping of peak loads reduces these costs over the entire billing period.
Peak Demand and Demand Charges: How Single Peaks Drive Up Your Electricity Costs
Demand peaks occur when many devices in a building require high power at the same time. In commercial buildings, this happens regularly, for example when chillers, ventilation systems, elevators, and EV charging points draw power simultaneously. For you as an owner, energy manager, or asset manager, this means:
- The highest peak demand at a single point in time determines the demand charge your utility bills for providing grid capacity.
- Even if you operate your building efficiently for most of the billing period, you pay higher demand charges than necessary without peak shaving.
The main challenges in load management:
Without data on how power demand is distributed, the cause remains unclear: only real-time data shows which systems trigger peak demand and when.
Demand peaks can only be avoided proactively: once a peak has occurred, it is billed.
Peak Shaving at a Glance
Peak shaving, also known as peak load management, is a control strategy that reduces peaks in a building's power demand. In this context, “load” means the electrical power required at a given moment to supply all consumers. The goal of peak shaving is to limit a building's maximum electrical power and thus reduce demand charges. This does not necessarily mean consuming less energy. What matters is when energy is needed and which consumers can be controlled flexibly. Consumers are all systems and devices that draw electricity. For some of them, such as chillers, heat pumps, or EV charging stations, power consumption can often be shifted in time without occupants noticing.
To cap demand peaks, peak shaving uses energy storage and controllable consumers in the building:
Thermal Storage
Building mass, heating and cooling circuits, and buffer tanks absorb heat or cold. This allows heat pumps and chillers to operate predictively to avoid demand peaks without compromising comfort.
Electrical Storage
Battery storage and, in the future, bidirectionally charging electric vehicles cover demand peaks with previously stored energy.
Shiftable and Controllable Loads
Other consumers such as mechanical ventilation or charging stations are shifted in time during critical periods or throttled within defined limits.
The Benefits of Peak Shaving
Lower Demand Charges
Reducing peak demand lowers the demand charge for the entire billing period, not just for the moment of the peak.
Automated, Forecast-Based Control
Peak shaving requires no manual intervention and causes no loss of comfort.
Existing Flexibility Is Put to Use
Peak shaving takes into account existing battery storage, the flexibility of HVAC systems, and the thermal inertia of your building, and uses them to shift loads.
Grid-Friendly Operation
A steady power draw with smoothed peaks relieves the grid and can reduce your building's carbon footprint when loads are shifted to lower-emission hours.
Smooth Demand Peaks in Three Steps
Demand peaks can be avoided if they are predicted from historical load profiles and regulated automatically. The basis for this is data-driven building operations.
01
Connect Energy Systems
aedifion.dynamics intelligently connects all existing energy systems, creating the foundation for efficient operation.
02
Forecast Load Development
In a second step, aedifion.dynamics forecasts your building's load curve. If a new peak is imminent, the control system can respond early.
03
Shift Non-Critical Loads Proactively
Chillers, heat pumps, and ventilation systems are controlled based on demand before the peak occurs, for example through targeted pre-cooling.
Which Buildings Benefit From Peak Shaving
Peak shaving pays off where your peak demand is actually measured and billed. You can see this on your electricity bill: if it shows a demand charge per kW, you are billed based on your measured peak demand.
A potential check is particularly worthwhile if
- your commercial building reaches significant demand peaks.
- demand charges make up a noticeable share of your electricity costs.
- large electrical loads sometimes run in parallel.
- battery storage is in place or planned.
- flexible loads are available for load shifting.
- you want to control building operations automatically, cost-effectively, and in a grid-friendly way.
Frequently Asked Questions
In most cases, yes. Whether peak shaving pays off depends mainly on the height of your demand peaks, your demand charge, and the flexibility available. Capping peaks is particularly attractive for properties with flexible loads and existing battery storage.
Demand-based charges are an important lever. Peak shaving limits the maximum power drawn from the grid. Depending on the load profile, flexible loads can also be shifted or battery storage used in a targeted way.
No. Battery storage can absorb demand peaks, but it is not a requirement. Often, the flexibility of the installed systems and the thermal inertia of the building are enough: chillers, heat pumps, and ventilation systems are operated predictively within defined limits. Existing storage can be integrated as well.
Peak demand is the highest power value measured within the time interval relevant for billing. It is expressed in kilowatts (kW) and determined from the power draw over time. Billing is based on the highest of these values in the billing period, multiplied by the demand charge per kW.
Plan Intelligently and Reduce Electricity Costs
With aedifion.dynamics and its AI-based control, you achieve greater efficiency with less manual intervention.
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