When it comes to paying for power consumption, private customers are billed based solely on their kWh usage. However, for business customers, the billing process is a bit different. Apart from the kWh used, another crucial piece of information is considered – the highest load peak recorded over the past year.
As an energy network operator, ensuring a stable power delivery at all times is vital. However, dealing with load peaks from high-consuming companies poses a massive challenge. Consequently, these companies are also charged for these load peaks. Typically, load peaks are assessed within a year-long timeframe. This means that a single load peak can result in significantly higher costs for the entire year, easily amounting to tens of thousands of euros in additional expenses for an energy-intensive company.
To prevent companies from incurring substantial expenses due to isolated load peaks during the year, the concept of "Peak Shaving" comes into play. As the name suggests, Peak Shaving aims to eliminate load peaks from the power consumption profile. These peaks often occur when heavy machinery starts and results from the simultaneous startup of multiple machines with high inrush currents.
This was precisely the scenario that unfolded for one of our customers in the plastic production industry. One morning, all employees simultaneously started their machines, inadvertently creating a new load peak that cost the company tens of thousands of euros.