One of the most significant components of a commercial energy bill is the demand charge, which can make up a substantial portion of the total cost. These charges are designed to cover the costs of maintaining the electrical grid infrastructure by ensuring there is always sufficient capacity to meet peak demand. In this blog, we’ll explore the importance of demand charge management for energy storage systems (ESS) and how Acumen EMS™ optimize the way organizations handle their energy demands.
What is Demand Charge Management?
Demand charges are fees imposed by utilities based on the highest average power usage recorded during any 15-minute interval within a billing cycle. This peak usage incurs a surcharge on top of standard electricity rates and typically represents a substantial portion of the bill. Demand charge management strategies often involve utilizing an energy management system on an ESS to shift the peak demand to off-peak hours when demand charges are less costly (load shifting) or using energy storage technologies to reduce the peak demand (peak shaving). While load shifting can be a useful strategy, not every business can effectively utilize it since it can disrupt business operations due to adjusting energy consumption habits. Peak shaving doesn’t have these sorts of limitations, which is what makes energy storage systems so attractive.
Peak shaving involves monitoring real-time metered demand against a preset threshold. If the demand exceeds this threshold, the energy management software (EMS) will discharge stored energy from the battery to bring the average site-net-PV demand back below the threshold. This strategy has the added benefit of allowing the site to remain operational without having to make any adjustments to business operations as is often required for load shifting. By discharging energy from the battery at the opportune time, peak shaving keeps the customer’s demand in check and can greatly reduce the costs that come from excessive demand charges. Peak shaving is a demand charge management strategy that every business can take advantage of, so long as they have the right EMS.
Choosing the Right EMS for Demand Charge Management
Demand charge management strategies are only as effective as the EMS that controls them. Acumen EMS offers a powerful solution for managing demand charges through advanced analytics, real-time monitoring, and automated optimization. Acumen EMS’s integrated advanced predictive analytics, coupled with AI and machine learning, optimize charge and discharge cycles, allowing users to simulate different scenarios and make data-driven decisions. Also, Acumen EMS ingests real-time data to regenerate a new 24-hour dispatch forecast every 15 minutes to maximize value capture. When paired with our real-time monitoring software, ETB Monitor, users have complete insight with full transparency into the real-time operation and performance of any solar + storage projects. Finally, Acumen EMS’s control features fully optimize any energy asset for maximum economic performance with value stacking by combining multiple value streams like demand response programs, grid services, and various EMS controls applications.
Acumen EMS Project Deployments Utilizing Demand Charge Management
Our Acumen EMS device is installed at the following sites, all of which leverage the EMS application of demand charge management. Review each in more detail below:
To learn more about how Acumen EMS can help your organization manage demand charges and optimize energy usage, schedule a call with our team today.
