Ten Steps to Lower Peak Demand Charges

Key Points

• Peak demand is the maximum amount of electricity your facility uses at a specific time.
• For many facilities, peak demand charges can be a significant part of their electricity costs.
• A successful demand strategy should include a mix of operational changes and targeted equipment upgrades.

Source: www.energy.gov

If you are looking to reduce your energy costs, it is important to look beyond overall electricity use. Most facilities are charged for both consumption — measured in kilowatt-hours (kWh) — and demand — measured in kilowatts (kW). High energy loads strain the electricity grid, and customers are asked to share in the burden of providing more expensive power through peak demand charges. Demand meters record energy use in 15- or 30-minute intervals, and one energy-intensive interval can result in a high demand charge for the entire month.

Demand reduction strategy

 

Demand charges can be a particular problem during the summer, as electricity use for air conditioning intensifies. When developing a demand reduction strategy, however, it is important to consider annual energy use patterns and focus on lighting and operating equipment, as well as air conditioning.

The following 10 steps include low-cost operational changes, as well as target equipment upgrades and building system retrofits:

1. Reduce overall cooling needs by setting room temperatures as high as 78°F and allowing employees to wear appropriate clothing to ensure their comfort.
2. Adjust work schedules to reduce energy use during peak periods; generally between 12 p.m. and 5 p.m.
3. For forklifts and other battery-powered equipment, schedule usage to avoid the need for fast charging.
4. In office areas, turn off printers, copiers and other equipment when they are not in use. Use power management settings on computers and all equipment.
5. Make sure lights are turned off in unoccupied spaces such as restrooms and conference rooms. Install occupancy sensors to automate the process and optimize demand reductions for lighting.
6. Incorporate window films, solar screens or awnings on south- and west-facing windows to reduce the need for cooling.
7. Use an energy management system (EMS) to schedule equipment and building system operations to reduce demand.
8. Prevent high-energy-use processing equipment from operating at the same time by installing automatic sequencers on the equipment power supply.
9. Use backup generators to handle large electrical loads during peak periods.
10. Consider installing an energy storage system, which creates chilled water or ice at night to be used for cooling during the day, when peak demand is at its highest.

Every facility has unique energy-use patterns. By gathering information about your building, energy-using equipment and your operating characteristics, you can find the right demand-reduction strategies to meet your needs.
 

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