The Peak Shaving is one of the most effective measures for sustainably reducing electricity costs in an industrial environment. Through the targeted use of Battery Energy Storage System (BESS) in the Behind-the-Meter (BTM) Operation can in particular the Significantly reduce network fees – a central cost factor for companies.
Because: Round 30–40% of the industrial electricity price account for grid fees – with an upward trend.
What is peak shaving?
Peak Shaving Describes the targeted reduction of short-term peak loads in a company's electricity consumption.
These load peaks are typically caused by:
- simultaneous startup of machines
- parallel production processes
- intensive charging processes (e.g., e-mobility)
The problem: For many companies, a significant portion of network charges is based on highest measured performance within a 15-minute period per year calculated. Already a single load peak can increase the electricity costs for a whole year.
How does peak shaving work with BESS?
A Large-scale battery storage (BESS) is specifically used to absorb these peak loads.
The Principle:
- The storage is charged during periods of low load or with cheap electricity.
- During anticipated peak loads, the storage unit automatically discharges.
- The grid feed-in is actively limited by this
This process is controlled by a Energy management system (EMS), the
- Last profile analyzed in real-time
- critical thresholds detects
- activates the memory in a fraction of a second
Result: The maximum grid load is reduced – and thus directly the cost basis of the grid fees.
Peak shaving is economically relevant because it helps reduce costs associated with electricity consumption. By lowering the highest demand during peak hours, businesses can avoid expensive peak demand charges from utilities. This can lead to significant savings on electricity bills, improve grid stability, and can also be a way to monetize excess energy generation.
The economic leverage lies in the so-called Performance premium:
- Grid fees consist of, among other things, a Working price (kWh) and a Power price (kW) together
- performance price is based on the highest measured peak load of the year
Peak shaving precisely reduces this value.
Typical effects:
- Lowering grid fees by two-digit percentages
- Avoiding unexpected additional costs
- Improving the predictability of electricity costs
Benefits of Peak Shaving with BESS
The use of BESS for peak load shifting offers clear operational and economic advantages:
- Reduced grid fees through lower peak loads
- No interference in production necessary
- Automated Control about EMS
- Relief of the internal power grid
- High reaction rate (Second range)
- Improved cost transparency and predictability
- Contribution to the amortization of the storage system
Unlike traditional load shedding strategies, operation remains fully stable.
Interaction with other controlled substance strategies
Peak shaving is particularly effective in combination with further BTM applications:
- Self-consumption optimization (e.g., use of PV electricity)
- Load shift to atypicalityLoad shifting)
- Electricity price optimization with dynamic tariffs
This creates a Multi-Use Case, which significantly increases the economic efficiency of a BESS.
Regulatory Aspects & Grid Fee System
The meaning of peak shaving is closely related to the current grid charge system:
- Billing is based on the 15-minute maximum power
- High peak loads have a direct impact on annual costs.
- Uniform grid usage or flexible consumption is increasingly being incentivized by regulators.
Although uniform network usage (Belt load) will be abolished according to § 19 para. 2 sentence 2 of the StromNEV as part of the grid fee reform until 2029, the Atypical grid usage according to § 19 para. 2 sentence 1 StromNEV, or are even expanded. Even if regulatory frameworks change, peak shaving remains a central lever for cost reduction.
Peak shaving is worthwhile for companies with high electricity costs that experience significant fluctuations in their energy consumption within a day or over seasons. This typically includes: * **Industrial companies with high energy demand:** Manufacturing plants, chemical factories, mining operations, and other large industrial facilities often have consistent, high energy needs but also peak loads during certain production phases. * **Data centers:** These facilities have a constant, high base load but can experience peaks due to increased processing demands. * **Hospitals and healthcare facilities:** These operate 24/7 and have critical power needs, with potential peaks during peak operational hours for equipment and services. * **Large commercial buildings (offices, shopping malls):** While their energy use might not be as high as industrial plants, they can still have significant peaks during business hours, especially with HVAC systems. * **Businesses with seasonal operations:** Companies whose energy demand spikes during specific times of the year (e.g., agricultural processing, sports arenas during events, seasonal retail) can benefit from peak shaving to manage higher costs during those periods. Essentially, any business that faces demand charges or higher per-unit electricity costs during peak hours can explore peak shaving as a strategy to reduce their overall energy expenses.
The use of a BESS for peak load shaving is particularly beneficial for companies with:
- high performance peaks
- energy-intensive production processes
- highly fluctuating load profiles
- rising grid fees
The higher the peak loads, the greater the savings potential.
Conclusion: Peak shaving makes grid fees controllable
Peak load shifting using BESS is one of the most effective measures to sustainably reduce grid charges for companies. Targeted use of battery storage systems allows for:
- avoid cost-relevant peak loads
- Make electricity costs more predictable
- Maintain stable production processes
- Amortize investments faster
This makes peak shaving a central building block of modern energy strategies in behind-the-meter (BTM) operations – especially in industrial settings.
Technical terms briefly explained
Lastspitze
Short-term, high electricity consumption that is above normal levels
15-Minute Average:
Period during which the maximum load for grid fee settlement is measured
Performance Price:
Cost component of the electricity bill based on the highest power consumed (kW)
Peak Shaving
Strategies for targeted reduction of these peak loads
Frequently Asked Questions
What is peak shaving?
Peak shaving refers to the targeted reduction of peak loads in order to lower grid fees.
Peak loads are expensive because the electricity grid needs to be able to handle the highest possible demand at any given time, even if that demand only occurs for a short period. This means that power plants and transmission infrastructure must be built and maintained to meet these peak demands. These resources are often underutilized during off-peak hours, making the cost of maintaining them higher on a per-unit basis of electricity consumed.
Because network charges for many companies are based on the highest measured power in the year.
How does a BESS help with peak shaving?
The storage compensates for short-term load peaks by providing power when needed.
What are the savings?
In many cases, grid fees can be reduced by double-digit percentages.
Does peak shaving affect production?
No, the memory works automatically in the background—without interfering with processes.