Peak shaving
How it works
The system monitors current power draw and forecasts an incoming peak. Once a set threshold (target) is crossed, shaving actions fire: discharging energy storage (BESS), ramping up local generation (PV, generators) and/or curtailing or shifting flexible loads (demand response). As a result grid draw stays below the defined limit while local resources cover the gap. During demand troughs the storage is recharged (usually from the grid or PV surplus) to prepare for the next peak. BESS is the preferred resource thanks to its very short response time (on the order of milliseconds).
Problem solved
Demand charges and limited connection capacity mean a facility's cost and ability to connect depend not on average but on instantaneous peak draw. Upsizing the connection is often expensive, slow or impossible (interconnection queues), while peaks are short-lived. Peak shaving serves these short spikes without enlarging the connection.
Components
Battery storage that discharges during the peak and recharges during demand troughs. Its millisecond-scale response time makes it the primary peak-shaving resource.
Demand-side management layer: curtailing or shifting flexible loads during peak hours to lower grid draw.
Metering of current draw plus forecasting of an incoming peak, determining when and how strongly to react against a set power threshold.
On-site generation (PV, generators) that ramps up during the peak, reducing grid draw.
Real-time adjustment of demand — temporary curtailment or shifting of consumption in response to a price or grid signal.