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Peak Shaving

Peak Shaving is similar to load leveling and is designed to reduce the peak demand on the electricity network. As most large energy users will know, peak demand charges can make up more than 70% of the total power bill and makes power saving methods like conventional grid connected Solar PV ineffective due to the low kWh consumption charges. The other reason solar PV on it’s own may be considered ineffective is because the peak demand can either occur out of sunlight hours or even if it does occur in sunlight hours the variability of the solar performance due to external factors like weather makes it impossible to guarantee savings.

If we look at the graph below it is clear that the customer has a peak in the middle of the day around 2:00pm and then again a steady rise in the afternoon. The battery system in this case reduces the maximum demand from 375kW to 25okW. In doing this we can not only reduce the amount of billed energy but we can also reduce the total demand charge each month by 125kW which can mean savings of up to $31,000 per year. It is not always essential to have solar in order to charge these batteries. In some situations the batteries can be charged from cheaper off-peak power in the evenings. In other cases the solar will be designed to run the property during the day and the excess solar generation that occurs on weekends and during the middle of the day will be used to recharge the batteries.

Peak Shaving


The batteries would come installed in a 20 or 40ft specially designed container and carefully integrated by Gem Energy into your electrical infrastructure. Some of these systems are warranted for 6-8 years and have a much longer life expectancy.

Gem Energy - Commercial Battery Storage


When it comes to the end of the life cycle the renewing the batteries will cost about 30% of the initial total capital cost. This is assuming battery technology and pricing remains consistent with the prices of today. We already know that batteries are expected to reduce 30% – 40% in price by 2020 so replacing the battery component of this system will be very economical.

Some believe that they are better waiting until this anticipated price drop before investing into the technology but the cost of waiting will be substantially higher than the savings made on future investment. Continuing to pay network charges and demand charges will be more expensive than the savings made.

The Large-Scale Energy Storage units will not only provide you with stored energy as and when you need it but they will also supply the KVAR and KVA demand whilst improving the Power Factor. 4 birds with 1 stone. To read more about KW, KVAR and KVA visit out Power Factor page by clicking here http://www.gemenergy.com.au/power-factor-correction.

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