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Battery storage for peak shaving

When might a battery reduce demand peaks and improve the economics of a site?

Demand peaks and tariffs

Savings depend on how the grid tariff bills peak demand. A peak needs to be reduced at the right interval and the battery must have adequate available energy.

Power versus capacity

Storage inverter power in kW limits the instantaneous reduction, while battery energy in kWh limits how long it can be sustained.

Business case

Assess real load data, charging cycles, efficiency, degradation, replacement and operating costs rather than relying on a single example peak.

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When a peak-shaving calculation is meaningful

Start with interval load data

Use measured quarter-hourly or finer-resolution load data to identify peak frequency and duration. One isolated annual maximum is rarely enough to size a battery.

Power and energy are different

Battery power in kW determines how strongly a peak can be reduced; usable storage capacity in kWh determines for how long it can be reduced. Account for efficiency, state-of-charge limits and ageing.

Economic model

Compare expected demand-charge savings with investment, operating costs, losses, financing and battery degradation. Network tariff design and site restrictions may materially change the result.