- Reduce demand charges by automatically shedding non-essential loads to avoid setting peaks.
- Qualify for lower tariffs by cooperating with utilities to reduce demand when a request is issued.
- Load shedding solutions are suitable for medium to large electricity consumers with significant non-essential loads
- Load shedding schemes can be programmed to provide peak demand avoidance. This is suitable when there is a supply tariff that includes demand charges .
- The scheme can also be programmed to support a supply tariff that includes a demand curtailment agreement.
Energy Efficiency value proposition for peak demand avoidance
- Utility rate structures often include several components. The actual consumption in the billing period may be combined with another component based on the peak usage at some point during the preceding period, which could be twelve months or another period such as a season. If a customer can avoid peaks and troughs in their energy usage, they can minimize the part of their energy bill driven by the peak consumption, even if their total consumption remains the same.
- Customers who even out their consumption and avoid setting a peak can make considerable savings on their demand charge.
- Providing the customer has enough non-essential loads to be able to impact their peak consumption, a customer may be able to reduce their demand charge by as much as 10% to 30%. Demand charge can be up to 60% of the bill.
Energy Efficiency value proposition for demand curtailment
- Utilities implement demand curtailment agreements if they have difficulty in supplying all customers when energy consumption is very high – e.g. during hot summer months. They offer an incentive scheme for customers to temporarily reduce consumption for a short period while the network is heavily loaded
- Return on investment for demand curtailment will vary depending on local tariff rates. Reduction of up to 30% of the consumption rate can be achieved. For example, if the customer has enough non-essential loads to be able to impact peak consumption, he may be able to reduce tariff from 0.22 €/kW to 0.15 €/kW.
- In either case the application usually pays for itself in one year or less.
- Meters can be programmed to offer a simple solution suitable for a user with relatively few sheddable loads. The number of loads is constrained by the number of IO points on the meter and how those points are used to connect the load. The sequence of shedding is programmed into the meter and there is no interface for an end-user to change the priorities without reprogramming the meter or rewiring the IO.
- Using a PLC the scheme can offer a flexible solution suitable for a user with many sheddable loads. In this case the sequence of shedding is programmed into the PLC. An interface allows an end-user to change the priorities of load shedding.