What is peak shaving?
Peak shaving is a strategy to smooth out temporary peaks in electricity consumption by purchasing less power from the electricity grid at those times. This is often done with temporarily stored energy, for example from a battery, or by smartly controlling consumption.
Reducing peak loads mainly reduces fixed energy costs, such as the costs for connection capacity, and puts less strain on the electricity grid.
Peak shaving is often used in companies with high or simultaneous consumption, such as production processes, charging plazas for electric vehicles and large-scale installations.
Why is peak smoothing important?
Peak smoothing plays an increasingly important role in an energy system that is under pressure. High simultaneous power demands not only increase costs, but also burden the electricity grid and reduce energy use efficiency.
Actively limiting peaks creates space to use energy in a smarter, more sustainable and more predictable way.
1. Reduce grid load
Peak consumption places a high load on the electricity grid, especially when many installations require power at the same time. This increases the risk of grid congestion and limits the space for new connections or expansions.
By flattening peaks, the network is loaded more evenly. The infrastructure remains more stable and there is more flexibility within the existing network capacity.
2. Reduce energy costs
High peaks in electricity consumption lead to higher energy costs, mainly due to costs for connection capacity and peak-dependent rates. The higher the peak, the heavier the connection and the higher the fixed costs.
By limiting peak consumption, the required connection capacity decreases. This immediately results in lower structural energy costs, without having to reduce total energy consumption.
3. More efficient energy use
Without peak smoothing, energy assets are often deployed at times when consumption is already high. This leads to inefficient use of the available capacity and unnecessary burden on the system.
By smoothing peaks, energy is distributed more evenly over time. Own generation, storage and consumption are thus better coordinated and available energy is used more effectively.
4. Reduce CO₂ emissions
High peaks in electricity consumption are often met with additional, less efficient energy production that is dependent on fossil fuels. This leads to higher CO₂ emissions at times when the energy system is under pressure.
By smoothing peaks, the need for such peak production decreases. This makes the energy system not only more stable, but also more sustainable.
In what ways is peak shaving possible?
Peak shaving can be applied in different ways, depending on the technical capabilities of an installation and the degree of control. In practice, these forms range from simple measures to fully automated solutions.
Peak shaving with batteries
Energy storage is one of the most effective ways to apply peak shaving. Batteries are charged outside peak times and provide power at times of high consumption.
This means that less power is drawn from the grid at peak times and the maximum power demand decreases.
Smart control with an EMS
The most efficient form of peak shaving combines multiple techniques via an energy management system. storage, consumption and any own generation are automatically coordinated.
The system only intervenes when peaks threaten and thus maximizes the effect, without manual intervention.
Behavioral and process management
Peak shaving is also possible without additional hardware, by organizing processes differently. Scheduling energy-intensive activities outside of peak times reduces the concurrent load.
This form is simple, but highly dependent on discipline and predictability.
Who can benefit from peak smoothing?
Peak smoothing is applicable in both commercial and residential energy installations, but the scale, purpose and effect differ.
Companies and organizations
Peak shaving is especially interesting for organizations with high or simultaneous electricity consumption. The larger and more irregular the power peak, the greater the benefit of peak smoothing. In practice, the following benefits in particular:
- companies with production processes that cause peaks in consumption;
- charging plazas and EV infrastructure with simultaneous charging;
- multi-tenant business buildings and utilities with multiple users;
- organizations with a limited grid connection or congestion restrictions;
- companies with solar panels or batteries that want to use their assets more intelligently.
Households with a home battery
Power peaks can occur, especially in homes with solar panels, electric cooking, heat pumps or charging points for electric cars. By using a home battery smartly, peak consumption is smoothed and dependence on the grid at peak times decreases.
This ensures a more stable energy profile and more efficient use of self-generated energy. The financial benefit is generally smaller for households than for companies, but the effect of peak shaving is comparable.
Smartbox
Smartbox: automated peak shaving for maximum benefit
Effective peak shaving requires continuous monitoring and direct control of energy assets. Smartbox combines proprietary software with smart control of small and large energy installations, continuously developed by our R&D team in the Netherlands.
The system connects consumption, generation and energy storage with real-time data and only intervenes when peaks threaten. Peak shaving is not a manual intervention, but a structural part of smart energy management. Why is Smartbox indispensable?
- Full remote control via the Smartbox Portal.
- Smart, automated control of all energy assets within a project.
- Fast switching within 20 milliseconds based on real-time data.
- Active trading opportunities on EPEX, the imbalance market and other energy markets.
- Integration with solar panels, charging plazas, battery systems and wind turbines.
As an energy company or energy installer], do you want to achieve maximum returns for your customers? We are happy to tell you everything about the Smartbox and the opportunities within the market.