22.7.2025

What is peak shaving? How companies reduce energy costs with smart peak shaving

A typical morning in an industrial company: Machines start up, conveyor systems run, vehicles are loaded - and suddenly electricity consumption shoots up. Many people are unaware of these brief power peaks, but they can significantly increase annual energy costs.

The electricity consumption curve is usually relatively stable throughout the day, but at certain times there are steep peaks. These peaks are precisely registered by the energy supplier - and cause additional costs.

 

Why electricity peaks are expensive

In addition to the energy price (for the energy consumed), the electricity tariff also includes a demand charge, particularly for industrial customers. This is based on the highest measured power peak within a 15-minute window in the year. Even a single short peak can increase the costs for the whole year.

For example:
A business has an average power requirement of 50 kilowatts, but a peak of 80 kilowatts for 15 minutes one morning. The 80 kW then determine the power costs for the entire month.

 

Cost example at CHF 150 / kW / year (calculated over the year):

  • Without peak shaving: 80 kW × 150 CHF = 12,000 CHF
  • With peak shaving (peak limited to 50 kW): 50 kW × CHF 150 = CHF 7,500
    Savings: CHF 4,500 per year

 

What is Peak Shaving?

Peak shaving means smoothing out these load peaks without reducing overall electricity consumption. The aim is to reduce individual power peaks in a targeted manner. This is achieved by:

  • Intelligent control and time shifting of loads
  • Use of battery storage systems that release energy at peak times
  • Forward-looking consumer planning

Important: It's not about switching off, but about smart load management.

 

CLEMAP solution: How peak shaving works automatically

With CLEMAP, we detect load peaks in real time using precise measurement technology at the grid connection. We use our intelligent algorithms to dynamically control energy flows and reduce peaks - without manual intervention or production downtime.

Battery storage or controllable loads can also be integrated on request. This allows industry, logistics and energy-intensive processes in particular to benefit from efficient peak load reduction.

Example: Savings with Peak Shaving

A company consumes 150,000 kWh per year and pays:

  • Working price: 0.18 CHF / kWh
  • Power price: CHF 160 / kW per year

Without peak shaving, there are brief peaks of 80 kW in the morning, although the average is 50 kW. The energy costs thus amount to around CHF 39,800 per year.

CLEMAP limits the peak to 60 kW - without sacrificing production. This reduces the power costs from CHF 12,800 to CHF 9,600, an annual saving of CHF 3,200.

 

Investment:

  • CLEMAP Load Management, load management software and commissioning: CHF 4,000-6,000
  • Optional service: CHF 300-600 per year
    Amortization: after just 1-2 years

 

Advantages of Peak Shaving at a glance

  • Reduced electricity costs due to lower power prices
  • Avoidance of expensive increases in connected load
  • Calculable energy costs, fewer surprises when it comes to billing
  • Fast return on investment (ROI), especially with high performance prices
  • Contribution to grid stability and recognition by energy suppliers

 

Even more effective with PV and battery storage

In combination with photovoltaics and battery storage, peak shaving offers even more advantages

  • Excess solar power is stored
  • Storage is discharged during peak loads to reduce the load on the grid
  • Energy costs continue to fall, self-consumption increases
  • Ideal for large roofs in logistics centers, shopping malls or production halls

 

Conclusion

Peak shaving is an easy-to-implement but effective lever for reducing energy costs and protecting grid connections. CLEMAP offers the complete solution from measurement and analysis to automated control - without any effort for your company.

In the next article we explain: What is an EMS (Energy Management System)?

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