A peak load is a spike in consumption which can drive up electricity bills. Peaks put a strain on the electricity provider as the grid load and the necessary amount of power production need to be designed to accommodate them. To account for this, providers raise their demand charge rate. Your highest peak power level sets your price, and depending on the billing period, this charge can be incurred for up to one year. Peak Loads are common in many operations and industries .e.g. dairy farming, bakeries, metal working industries etc.
Peak shaving can be done when energy consumption peaks above the base demand load for shorter periods. A BESS can detect when your operations require an extra load of electricity and discharges the battery to limit your load on the grid. This reduces the demand charges, and thus greatly reduces your electricity costs.
