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.