Peak shaving
Dispatching stored energy during a site's peak-demand windows to reduce the peak component of the electricity bill.
Peak shaving is the practice of using stored energy (typically from a battery) during a site's highest-demand windows so the site draws less power from the grid at exactly the moments the grid charges the most.
Most industrial electricity bills are split into two large components: a volume charge (per kWh consumed) and a demand charge (based on the highest 15-minute or 30-minute average draw during the billing period). Peak shaving targets the demand-charge component. A single 20-minute battery discharge during the site's peak can reduce the demand-charge portion of a monthly bill by 15 to 35 percent, depending on the local tariff structure.
Peak shaving does not reduce total electricity consumption. It shifts when the site draws power. The battery is recharged during off-peak windows when both energy prices and demand-charge exposure are lower.
In Singapore
Under both MSSL and Contestable tariff structures, peak windows are pre-defined and priced at a differential to off-peak. Peak-shave dispatch targets those windows explicitly.
In Australia
Network demand charges in the NEM are set on kVA or kW peak, and vary by distribution network operator. Peak-shave modelling must reference the specific tariff schedule of the distribution business serving the site.