Peak Shaving: Definition and How It Works

Peak shaving is the targeted capping of load peaks in a site's electricity draw, usually with a battery storage system. The battery discharges when a load peak approaches and thereby reduces the measured maximum power draw, the basis of the demand charge. Swiss grid operators typically measure the highest 15-minute average of the month for this purpose.

The goal of peak shaving is not to consume less electricity but to lower the maximum power draw within the billing period. An energy management system monitors the electricity draw in real time and discharges the battery before the 15-minute average exceeds the defined target value.

For businesses with pronounced load peaks, for example from production start-ups, compressors or charging infrastructure, peak shaving is the economically strongest use case for a commercial battery. The saving follows directly from the reduced demand charge.

How peak shaving works in practice and what businesses save is shown in the article Peak shaving for commercial operations with the reference project Kuny AG.