Peak shaving, also known as load peak capping, is an energy industry method in which load peaks are capped in order to keep the network connection within a defined value. The aim is to reduce power consumption during peak load times and to keep it as uniform as possible. Peak shaving can therefore have a direct impact on grid stability, the reduction of electricity costs and the demand for generation capacities.
If a load peak occurs above a defined limit value, it is capped by the large battery storage device. The storage system provides the required electricity. The network connection is thus kept below the defined value. In times of weaker load, i.e. lower demand, the battery storage system can then store excess power again.
Peak shaving reduces load peaks in times of high demand by reducing energy consumption. When load shifting, energy consumption is not reduced, but is instead shifted from periods of high demand to times of low demand. Both methods serve to relieve the network and are often combined with each other.
The power grids are always designed for the time of the year when the highest load is reached. In principle, electricity consumers must be supplied reliably. If network load peaks are buffered, the power grid can be used better. In this regard, peak shaving is a useful tool for reducing consumption and, accordingly, the resulting costs. In case of doubt, this can postpone or prevent cost-intensive network expansion.
Until now, storage systems have been financially remunerated by a network operator for reducing peak loads. Network operators were thus able to save costs. These savings were passed on to the generator, who is reducing the peak load — in this case, the battery in generator function. According to §18 StromNEV, the financial remuneration for reducing peak network loads expires on 01.01.2023. As a result of this legal change, new battery storage systems that will be put into operation from 01.01.2023 no longer have an economic incentive to reduce network load peaks. Kyon Energy is committed to appropriate succession planning in the sector. From Kyon Energy's point of view, a dynamic mechanism should be sought in which battery storage systems are used to serve the grid precisely when the network components are really overloaded.
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