Peak Shaving

The most precise method involves discharging Lithium-ion BESS during peak windows. The system monitors real-time building load and injects stored power to cap grid draw at a programmed setpoint.

• Response Time: < 1 second for grid-forming inverters
• Typical Duration: 2-4 hours to cover the utility's peak window
• Key Metric: Depth of Discharge (DoD) management to preserve cycle life

On-site diesel or natural gas generators are automatically started and synchronized to the busbar to assume a portion of the facility load. This is often used in grid-parallel mode to avoid a full transfer switch operation.

• Requires precise synchronization of voltage, frequency, and phase angle
• Often governed by EPA runtime restrictions in non-emergency scenarios
• Common in hospitals and data centers with existing backup infrastructure

Also known as Conservation Voltage Reduction (CVR) , this technique lowers the distribution voltage on a feeder to the lower bound of the ANSI C84.1 standard range (e.g., 114V instead of 120V). Many loads behave as constant impedance, so power draw drops proportionally.

• Reduces peak demand without any customer action
• Requires advanced Volt-VAR Optimization controllers
• Typical savings: 1-3% total feeder load reduction

Chillers produce ice or chilled water during off-peak hours. During the peak window, the thermal storage tank is discharged to provide cooling, allowing electric chillers to be shut down entirely.

• Decouples cooling demand from electric demand
• High efficiency in facilities with large HVAC loads
• Shifts, rather than sheds, energy consumption

A Building Management System (BMS) or PLC executes pre-programmed scripts to turn off non-critical loads when a demand threshold is approached. This is a last-resort, fast-acting control.

• Tier 1 Shed: Non-essential lighting, decorative fountains
• Tier 2 Shed: Selected HVAC air handlers, electric water heaters
• Tier 3 Shed: Elevators, non-critical production machinery
• Requires closed-loop feedback to prevent undershoot

For fleets with predictable routes, smart charging algorithms modulate the charging rate or delay charging sessions to avoid overlapping with the facility's peak demand period.

• Uses ISO 15118 or OCPP protocols for direct charger control
• Maintains state-of-charge targets for departure time
• Aggregated fleets can provide significant demand flexibility

A fully automated system where a utility signal directly controls customer loads based on pre-programmed permissions, eliminating manual intervention. Unlike manual curtailment, ADR uses OpenADR protocols to dispatch signals that adjust HVAC setpoints, dim lighting, or cycle industrial equipment without human decision-making. This enables sub-second response to grid frequency deviations and forms the technical backbone of modern peak shaving programs.

A statistical calculation of what a customer's energy consumption would have been in the absence of a demand response event. CBL is the critical measurement foundation for peak shaving settlement. Common methodologies include:

• 10-of-10 baseline: Average of the 10 highest usage days in the prior 10 non-event days
• Weather-adjusted baselines: Regression models accounting for temperature sensitivity
• Meter-before-meter-after: Simple pre/post comparison for short events Accurate CBL prevents both underpayment and gaming of incentive structures.

A cloud-based aggregation of decentralized energy resources—batteries, smart thermostats, EV chargers—coordinated to provide grid services equivalent to a traditional power plant. VPPs execute peak shaving by simultaneously discharging hundreds of behind-the-meter batteries during the top 50-100 grid stress hours annually. This orchestration transforms passive consumers into active grid participants, displacing the need for fossil-fuel peaker plants.

The process of rescheduling energy consumption from peak demand periods to off-peak periods without necessarily reducing total energy usage. While peak shaving focuses on absolute reduction, load shifting maintains total consumption volume. Examples include:

• Pre-cooling buildings during off-peak hours and floating through the peak
• Delaying industrial batch processes to overnight periods
• Charging thermal storage systems when electricity prices are low Load shifting preserves operational output while avoiding capacity charges.

A dynamic rate overlay that imposes a significantly higher electricity price during a limited number of critical peak event hours to drive extreme load reduction. CPP is a price-based peak shaving mechanism where rates may jump from $0.10/kWh to $1.00+/kWh during declared events. Customers receive day-ahead or day-of notification and respond by curtailing non-essential loads. This tariff structure directly exposes end-users to wholesale scarcity pricing, creating powerful economic incentives for demand flexibility.

The rigorous analytical process of quantifying actual load reduction delivered by a demand response resource against its baseline to determine financial settlement. M&V protocols—such as IPMVP and NAESB standards—ensure that peak shaving performance claims are auditable. Key considerations include:

• Adjusting for weather and occupancy variations
• Accounting for non-routine baseline adjustments
• Statistical precision requirements for capacity market qualification Without robust M&V, peak shaving programs cannot participate in wholesale capacity markets.