Managing electrical peak demand
Peak demand management reduces a site's highest electrical demand by shifting, shedding or staggering loads so that large consumers do not all draw power at once. Because network and capacity charges are often set by the single highest demand interval, flattening that peak can cut electricity cost without reducing total energy used.
What it is
Many electricity tariffs include a charge based on the maximum power a site draws in any short interval, not just total energy. Peak demand management watches the rolling demand and acts before it sets a new maximum — delaying a non-urgent load, staggering motor starts, dispatching on-site generation or storage — so the recorded peak stays low even though the same work eventually gets done.
Why it is done
A demand peak can be created by a few large loads coinciding for minutes, yet it can set a charge that applies for a whole billing period. Because the energy is the same whether spread out or concentrated, reshaping when it is drawn is effectively free saving. Managing the peak also relieves strain on transformers and supply, and supports demand-response participation.
How it is done
The demand profile is analysed to find what drives the peaks — which loads coincide and when. Controllable loads are identified and ranked by how much they can be shifted or shed without harming production. A demand controller monitors the rolling demand against a target and acts automatically as it approaches the limit, with on-site generation or storage dispatched where available. The achieved peak reduction is then verified against the tariff's measurement interval.
- Analyse demand profile
- Identify peak drivers
- Rank shiftable loads
- Set demand target
- Automate load control
- Verify peak reduction
What to watch for
Shedding a load that production actually needs trades a demand saving for lost output — only genuinely deferrable loads should be controlled. Setting the target against the wrong averaging interval means the controller acts on a peak the tariff does not even measure.
Related practices
Running a compressed-air leak survey programme
Retrofitting waste-heat recovery
Retrofitting variable-speed drives
Related topics
Demand Response · Specific Energy Consumption (SEC) · Power Factor
Common in: Steel & Metals · Cement · Chemicals · Food Processing · Paper & Packaging