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 begin running, vehicles are loaded—and suddenly, power consumption skyrockets. Many people are unaware of these brief power peaks, but they can significantly increase annual energy costs.

The electricity consumption curve usually shows a relatively stable pattern throughout the day, but steep peaks occur at certain times. These peaks are precisely recorded by the energy supplier—and result in additional costs.

Why power peaks are expensive

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

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

Cost example at $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 × 150 CHF = 7,500 CHF
  Savings: 4,500 CHF per year

What is peak shaving?

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

• Intelligent control and temporal shifting of loads
• Use of battery storage systems that release energy during peak times
• Forward planning by consumers

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

CLEMAP solution: How automated peak shaving works

With CLEMAP, we detect peak loads in real time using precise measurement technology at the grid connection. Our intelligent algorithms enable us to dynamically control energy flows and reduce peaks—without manual intervention or production downtime.

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

Example: Savings with peak shaving

A company consumes 150,000 kWh annually and pays:

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

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

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

Advantages of peak shaving at a glance

• Reduced electricity costs thanks to lower power prices
• Avoiding costly increases in connected load
• Predictable energy costs, fewer surprises when the bill arrives
• Fast return on investment (ROI), especially with high service 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 grid load
• Energy costs continue to fall, own consumption rises
• 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 a complete solution, from measurement and analysis to automated control—at no cost to your company.

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

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