Peak Load Management
As a consumer of electricity from the grid, you pay for both the actual energy you consume (kWh) and the amount of energy that needs to be available to serve your account based on your peak load (kW demand). This peak kW, or peak load contribution / capacity tag / cap obligation (various names depending on market), can comprise up to 50% of your supply bill and more than 30% of your total electricity bill (supply + delivery). Through conscious management of your load, or Peak Load Management (PLM), you can clip these peaks and significantly reduce your electricity costs, both in the current period (delivery) and during the next capacity period (supply).
Use eReveal Energy Management Software to Manage Your Peak Load
Efficient Power Tech’s cloud-based energy management solution, eReveal, can help your peak load management plan with:
Monitoring and Alerts: Predictive analytics monitors the grid’s consumption and weather in real-time and predicts when peak load hours are likely to occur. In this event, we alert you through day-ahead and day-of emails, giving you enough time to take action to reduce your demand when its most important.
Energy Procurement Strategies: To ensure full advantage of your peak load reductions when managing your RFP for electricity supply, we can:
- Pass through capacity, rather than hedging for the contract term. When you hedge beyond the capacity period, and the supplier is absorbing the risk of capacity tag and price fluctuations, then you will not be able to realize the reduced capacity payments costs when you have reduced your capacity tag until a new contract is signed
- Negotiate capacity adjustment clauses in the supply contract. If you’re actively reducing peak demand, but want to hedge capacity for a period longer than 12 months, then negotiate that suppliers will adjust the capacity tag when new tags are released
- If you’re reducing peak load through load shifting strategies such as battery or ice storage, pass through energy costs as well in order to take advantage of the difference between on-peak and off-peak hourly pricing. If you’re contracted under a fully fixed rate, then the only advantage is the peak demand savings, and you’re not realizing the value of the arbitrage between on- and off-peak LMPs
Measurement & Verification: eReveal can measure & verify all of your peak load capital improvements and operational strategies to ensure your plan is effective.
Let Efficient Power Tech Manage Your Peak Load
It is not only imperative to focus on how much energy is used, but also when it is being used (Peak Load) as this can affect your annual costs. With our Peak Load Management Program, Efficient Power Tech helps you to manage your consumption during grid peak hours to help you save on your total energy costs. Efficient Power Tech will manage your usage and determine if you are approaching an anticipated peak. Then the Efficient Power Tech team will work with you to implement a plan to curtail your usage and diminish your overall annual energy cost. Contact us to find out how we can manage your Peak Load.