Peak Shaving: transforming energy conservation

9 December, 2024

Nowadays, people consume electrical energy as if it were an infinite resource. For example, whether in a shopping mall, in the office or in a factory, it is common to see several lamps, TV screens, laptop PCs and other equipment such as air conditioners or factory motors running at the same time. The problem behind this is that the generation and distribution of electrical energy is a complex and costly process for the companies in charge of supplying it. This situation becomes even more difficult during peak hours, when grid saturation can affect power supply, especially for large industrial consumers.

That is why, in countries such as Mexico, the Federal Electricity Commission (CFE) has established differentiated schedules and tariffs for energy consumption. During peak hours, when demand is higher, the cost of electricity rises considerably. This represents a challenge for industries, which are looking for ways to reduce their operating costs without compromising their production, and one of the most effective solutions is to implement BESS systems that perform peak shaving and load shifting.

What is peak shaving?

Peak shaving is a strategy to manage electricity demand during peak hours. In Mexico, the CFE has identified that the average time of highest network usage is concentrated between 6pm and 10 pm. Additionally, in the summer and winter seasons, the hours of highest consumption are from 8pm to 10pm and from 6pm to 10pm, respectively.

The objective of peak shaving, then, is to reduce the demand peaks that make the grid more expensive and generate instability. By leveling consumption, companies can optimize their energy costs and contribute to a more efficient electricity system.

What is load shifting?

Load shifting, or load shifting, is another alternative used to manage electricity demand over the time of consumption. When the load shifting strategy is used, what is done is to adjust consumption schedules. Thus, a factory, for example, instead of turning on all the production or manufacturing lines at a peak hour, it does so at an off-peak hour, since demand and energy prices are lower.

By shifting the electrical load, the pressure on the grid is reduced and lower tariffs are taken advantage of. This practice benefits both consumers and the electricity system in general.

Peak shaving strategies and best practices

Some common techniques to reduce the cost of energy during peak hours are as follows:

  • Energy storage: this involves storing energy, both thermal (hot water, steam) and electrical (batteries, supercapacitors), at times of low demand, for later use during peak usage hours.
  • Use of solar panels and battery banks in industrial environments: the combination of solar panels and battery banks offers a double benefit: the generation of clean, renewable energy, which reduces the carbon footprint, and the ability to store this energy for later use. By harnessing solar energy during peak irradiation hours and storing it in batteries, companies can significantly reduce their grid power consumption, especially during peak hours. This strategy can generate electricity bill savings of up to 60-80%, depending on the case and other factors such as geographic location and energy consumption.

BESS: battery energy storage system

In peak shaving strategies, battery energy storage systems (BESS) play a key role. Using lithium-ion battery technology, BESSs store energy generated during low usage and therefore lower cost hours (base hours), releasing it later during peak demand times, which are the highest cost times. This helps to smooth the load curve and stabilize the power grid.

Thanks to this storage capacity, the BESS offers a flexible, customizable and efficient solution for managing energy demand, reducing costs and making the most of renewable energy sources. This is how companies can use the energy stored in batteries instead of relying entirely on the grid, reducing their costs and contributing to greater energy sustainability.

In summary, peak shaving and load shifting are a fundamental strategy for companies and users seeking to optimize their energy consumption, reduce costs and contribute to sustainability. By implementing the right tactics and technologies, significant savings can be achieved that help companies position themselves as leaders in energy efficiency.

If you are interested in learning more about these solutions, you can contact our knowledgeable team. Remember that at Industronic we can advise you to obtain the option that best suits your industrial energy consumption needs.

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