What Is Generator Peak Shaving?
Peak shaving refers to leveling out peak electricity use by power consumers in the industrial and commercial sectors. Peak shaving reduces the amount of energy purchased from the utility companies during peak energy demand hours.
Monitoring these power consumption peaks is essential for power grid stability and also affects utility costs. These costs will usually be billed in reference to the maximum peak load, which means that due to the grid load and amount of power necessary to be produced, costs will be incurred to accommodate these peak loads and power requirements.
Depending on location, there can be up to give peak energy usage days in the year that help determine the price of electricity. Businesses will try to save energy on these days to influence their energy costs. Essentially, companies will lower power consumption incrementally to avoid hitting a peak load. To achieve this reduction, companies must lower production rates or use a backup power source.
How Does Peak Shaving Work?
Peak shaving allows consumers to reduce power consumption (known as “load shedding”) for intermittent periods to avoid a spike in power consumption. These spikes help influence the cost of energy, mainly because your supplier works with numerous companies. All those entities pay so each company has enough power to accommodate all its partners.
Peak shaving can be achieved by using a commercial on-site generator. Often, rental equipment companies and power plants will implement the use of prime power generators to offset power provided by utility companies or when power is not available at their sites. You could also:
- Scale back operations
- Use a battery system
- Incorporate energy-efficient equipment
- Install an on-site energy supply.
Many businesses choose to rely on a generator.
Shaving is usually done during peak times of usage, and it is also sometimes known as load management. These processes help keep costs down during peak times.
What Is the Difference Between Peak Shaving and Load Shifting?
With peak shaving, your business finds ways to reduce power consumption for short periods using one of the methods listed above. These processes help you avoid spikes.
Instead of peak shaving, some companies choose to participate in load shifting. While each process has a similar premise, load shifting reduces energy consumption by shifting it to a later time. When demand or prices are lower, your company will increase production again.
The Benefits of Peak Shaving Systems
Peak shaving is one of the best ways to reduce energy consumption. Additional benefits of the process include:
- Fewer utility costs: Fuel and energy costs can be high, especially if you operate during peak hours. Peak shaving will help prevent charges from increased demand, keeping energy costs consistent throughout the entire year. These predictable, lower prices allow you to estimate and budget utility costs.
- Increased reliability: Avoid electrical surges by engaging in peak shaving. Your proactive energy consumption monitoring ensures better performance with fewer power delays or interruptions.
- Maximized operations: Keep your operations on schedule by using peak shaving as part of your energy consumption. Choosing energy-efficient equipment, generators and batteries can help you plan ahead and avoid downtime.
Additional Applications for Peak Shaving Generators
Peak shaving isn’t just beneficial to avoid incurring costs from utility companies. Peak companies can also potentially benefit from Demand Response incentive programs, which are always looking to reduce regional energy demand during periods considered “peak load.”
Demand Response programs may or may not be a viable option depending on region and locale, as EPA Tier requirements and regulations vary from state to state. All generators must meet specific EPA emissions requirements and adhere to regulations depending on their intended application.
If you are interested in peak shaving but unsure if your generator qualifies, please contact us for consultation. We have emissions upgrades available that may help you meet the regulations and requirements set forth by the EPA.
Take Advantage of Peak Load Shaving
If your generator meets the criteria for Demand Response incentives, then you will be able to take advantage of a strategy known as “sellback.” This process allows you to make a profit based on the unused energy by selling excess power back to the market.
You can find more information about Demand Response here: Demand Response Incentives for Commercial Properties.
The Woodstock Power Company Experience
At Woodstock Power Company, you will find industry experts who understand commercial backup power generators and how they relate to peak shaving. Our team is standing by, prepared to help you decide which generator will work best for your peak shaving application.
Our team has experience supplying generators for several commercial and industrial applications, including:
- Commercial or industrial real estate property
- Data centers
- Hospitals
- Commercial business facilities
We are prepared to answer your questions about generators and help point you in the right direction. Our team can accommodate several preferences, such as:
- Natural gas or diesel
- Portable or stationary power sources
- Peak and average power requirements
- Space and exhaust restrictions
- Prime, continuous and standby generators
Our goal is to help you find high-quality used, new and surplus generators that will work for your application. Woodstock Power Company carries top-rated power generator sets, allowing us to get you the right product within your budget.
We thoroughly inspect, service and verify all the generators we sell because we want to help you find a reliable product. If we notice something about the generator that leaves it below industry standards, we will make repairs or modifications. We then test each generator before selling it to you.
At Woodstock Power Company, you will find a wide selection of generator sets, ensuring we can help you find the right model for your operations. If you’re looking to sell a generator, we can also help you there!
Optimize Your Energy Usage With Woodstock Power
If you want to start using peak shaving to reduce your company’s utility costs, you need the right generator. That’s where Woodstock Power Company comes in. We can help you find more information about peak shaving or help you find a generator to use for peak shaving initiatives.
You can give us a call or send us an email at 610-658-3242 or sales@woodstockpower.com. Or you can fill out our contact form to ask about our full-service commercial generator supply, services and advice.