Rose Morrison is a freelance writer with a passion for sustainable building and innovative construction technologies. She comes from a family of contractors who have helped instill her love of...
Conventional peak shaving leverages energy storage systems to level out peak electricity use. Their modern alternatives utilize algorithm-driven prediction systems and renewable integrations to optimize consumption reduction. Could they help utilities professionals manage demand in an increasingly electricity-reliant age?
The electric utilities industry is struggling to keep up with rising demand from resource-intensive applications like cryptocurrency mining, data centers and automated manufacturing facilities.
In Georgia, experts expect industrial demand will reach record highs. The new projection for electricity use within the next decade is 17 times higher than the last estimate. Arizona Public Service -- the state's largest utility -- struggles to keep up. Unless it implements major upgrades, it will be out of transmission capacity before the decade's end.
Stress placed on the aging grid during peak periods could lead to blackouts. The consequences of unscheduled power loss include emergency service interruptions, data loss, safety hazards and irreparable hardware damage.
American electricity customers already experience lengthy outages. These outages averaged around 5.5 hours in 2022, according to the United States Energy Information Administration (EIA). Utilizing peak shaving is important for managing demand spikes to improve grid reliability.
Advanced peak shaving strategies leverage cutting-edge generator technologies and power storage systems to manage demand.
Modern generators leverage rule-based or artificial intelligence for day-ahead demand predictions. Anticipating peak periods and disruption likelihood enables accurate, dynamic adjustments, improving grid reliability.
Notably, implementing generator peak shaving is not as simple as integrating an emergency backup model. The generator and switchgear equipment are more complex, so careful consideration is required. Conventional generator capacity ranges from 1.2 to 270 kilowatts, depending on size and portability. Utilities professionals must calculate how much power they need.
Photovoltaic generators use inverters to convert sunlight into usable alternating current. While they aren't as common as their diesel counterparts, they are catching on. Experts predict solar and wind energy will make up 96% of clean electricity consumption by 2028.
Even though renewables are inexhaustible, they are less reliable than fossil fuels. However, a storage system solves this problem. In regions with high solar capacity, daily cycling batteries can store electricity during the day and discharge during peak hours in the evening when the sunlight diminishes.
Technological advancement moves rapidly, so some advanced strategies have yet to be implemented. However, real-world trials indicate they could be superior to current approaches.
Utilities professionals can repurpose electric vehicle (EV) batteries by developing vehicle-to-building systems and machine learning tools for peak shaving. This setup produces day-ahead demand predictions, aligning the charge-discharge cycle with preplanned driving schedules and minimum state of charge requirements.
Storing electricity in EVs during off-peak hours and discharging into buildings during peak hours can reduce reliance and alleviate stress during peak periods. The researchers who proposed it reduced peak demand by 36% with just two EVs, one stationary battery and a 40 kW photovoltaic setup.
In late 2024, researchers proposed a distributed heating peak shaving solution. The primary network reduces return water temperature, while the secondary network acts as a heat exchange hub. It distributes low-temperature, low-pressure hot water to end users. It is ideal for municipal pipeline networks in areas dependent on traditional sources.
The setup comprises photovoltaic panels, waste heat from power plants, electric thermal storage tanks and absorption heat pump units integrated into a conventional heat exchange station. It satisfies a building's heating needs while reducing peak power.
The research team found that it reduces combustion emissions by almost 40% because it achieves a high primary energy ratio. Most global energy consumption is attributed to heat generation, and most sources are nonrenewable, so it is a practical alternative to conventional solutions. In addition to improving sustainability, it alleviates electricity consumption during thermal demand fluctuations.
Leveraging any one of these advanced tools for peak shaving would be beneficial. On top of alleviating stress by supplementing the grid, they have a positive return on investment because they reduce utility costs for decades before needing a replacement. For instance, standby generators typically last around 20 years if their operators maintain them well.
Although conventional generators rely on fuel and are thus unsustainable, modern versions use portable photovoltaic panels. Some can even run on green fuels. Unlike diesel, these alternatives are not prone to price fluctuations.
These systems aren't exclusive to utilities, so business owners and homeowners can utilize them, improving grid independence. Microgrids and stand-alone power generation tools can help alleviate strain as the country's electricity demand rises.
Most utilities professionals already use generators and energy storage, so they are familiar with the technology. Integrating modern versions capable of machine learning predictions or renewables integration won't require extensive upskilling. However, implementation will still take time.
The first step is to assess battery infrastructure. Most utility-scale units installed in the 2010s were short-duration models meant to discharge for minutes or seconds at a time. That trend is changing, however. According to the U.S. EIA, those used only for grid services have an average capacity of around three hours when fully charged. Daily cycling models last between four and eight hours to supplement peak periods.
Decision-makers will need to evaluate whether upgrading is cost-effective. They should also consider compatibility and cybersecurity to avoid mismatches between legacy and modern hardware.
Even if these modern peak shaving strategies don't have a place in the public sector, their future outlook is still positive. The hardware is accessible enough that business owners and homeowners will adopt it eventually.
Leveraging advanced generator and storage technology for optimal peak shaving could help create a more reliable and secure grid. Since local and federal governments have been considering upgrading electric infrastructure for some time now, it would be strategic to implement these solutions within the next few years.
Electric utility professionals should still consider implementation factors to optimize forecast accuracy and peak demand reductions. Like any modern invention, these tools have a learning curve. While their real-world trials are promising, their efficacy may vary depending on location, power consumption and seasonality.