Peak Consumption - Origins, Implications for Energy Contracts and Solutions with IoT Sensors from EL-Watch

Peak consumption, also known as peak load, is when energy consumption within a company suddenly rises to levels significantly higher than average consumption. These peaks can have significant financial consequences and negatively impact energy use efficiency. It is therefore important for companies to understand their peak consumption and take measures to control it. In this article, we discuss how peak consumption occurs, the implications for energy contracts, and how IoT sensors from EL-Watch can help monitor and reduce these peaks through techniques such as peak shaving and load shifting.
How Do Peak Consumption Occur?
Peak consumption occurs due to a sudden increase in energy demand within an organization. These spikes can be caused by several factors:
When multiple appliances or machines are turned on simultaneously, this can lead to a sudden increase in energy consumption.
During periods of increased production, energy consumption can increase substantially, especially if additional machinery or equipment is used to meet demand.
The intensive use of heating, ventilation and air conditioning (HVAC) systems during extreme weather conditions can lead to spikes in energy consumption.
Consumers such as lights or appliances left on unnecessarily also contribute to peak loads.
Impact of Peak Consumption on Energy Contracts.
Peak consumption can have a significant impact on the cost and terms of energy contracts:
Energy contracts are set up based on the highest peak load recorded within a given time period. High peaks can lead to higher energy rates because energy suppliers charge extra for these peak times.
Peak consumption can contribute to overloading the power grid, which can lead to additional transmission costs or even penalties for companies that contribute significantly to this overload.
Energy suppliers may include stricter terms in energy contracts if a company regularly exhibits high peak consumption. This can negatively affect the flexibility and cost-effectiveness of the energy contract.
Understanding Peak Consumption with IoT Sensors from EL-Watch
Gaining insight into peak consumption is the first step toward reducing it. IoT sensors from EL-Watch play a crucial role here:
IoT sensors from EL-Watch provide real-time monitoring of energy consumption, giving companies immediate insight into when and where peaks occur. This enables companies to respond quickly and take corrective action.
The sensors collect detailed energy consumption data, which can be analyzed to identify patterns and causes of peak consumption. This insight is essential for developing effective strategies to manage peak consumption.
Through continuous monitoring, unaware energy consumers, such as equipment left on unnecessarily, can be quickly identified and addressed.
IoT sensors can be set to provide alerts when energy consumption exceeds a certain threshold. This helps companies intervene in a timely manner and minimize spikes.
Reducing Peak Consumption: Peak Shaving and Load Shifting
Once peak consumption is understood, companies can take targeted measures to reduce it. Two commonly used techniques for this are peak shaving and load shifting.
Peak Shaving
Peak shaving is the process of reducing peak load by reducing the consumption of energy-intensive equipment or shifting it to times of lower demand. This can be achieved by:
Preventing simultaneous startup of the largest energy-intensive devices. Deliberately not starting energy-intensive devices simultaneously can reduce high peak consumption.
Using batteries to store energy during off-peak hours and use that energy during peak hours reduces dependence on the grid during peak times.
During peak hours, companies can switch to emergency generators to reduce demand for electricity from the grid.
By deploying smart automation systems, the consumption of certain equipment can be reduced during peak hours, such as by automatically dimming or lowering lighting or HVAC systems.
Load Shifting or Time Shifting
Load shifting / Time shifting involves shifting energy use from peak to off-peak hours when energy demand is lower and costs are often lower. This can be achieved by:
By shifting certain production processes to off-peak times, the company can reduce peak loads and cut energy costs.
By taking advantage of time-varying energy rates, companies can save by conducting energy-intensive activities when rates are lower.
By carefully planning and coordinating production activities, companies can spread their energy consumption and avoid peak loads.
Conclusion
Peak consumption can cause significant costs and inefficiencies within a company. By using IoT sensors from EL-Watch, companies can monitor their energy consumption in real-time, gain insight into the causes of peak consumption and implement targeted strategies such as peak shaving and load shifting to reduce these peaks. This not only leads to direct cost savings, but also to an improved energy efficiency and sustainability within the organization. With the right technology and approach, companies can regain control of their energy consumption and effectively manage their energy costs.