Peak shaving, also known as load capping, is a method of energy management in which load peaks are capped in order to keep grid consumption within a defined value. The aim is to reduce electricity consumption at peak load times and to keep it as even as possible. Peak shaving can have a direct impact on grid stability, the reduction of electricity costs and the need for generation capacities.
If a load peak occurs above a defined limit, it is capped by the large-scale battery storage. The storage system provides the correspondingly required electricity. This keeps grid consumption below the defined value. At times of lower load, the battery storage system can then store excess electricity again.
Peak shaving caps load peaks at times of high demand by reducing energy consumption. Load shifting does not reduce energy consumption, but instead shifts it from times of high demand to times of low demand. Both methods serve to relieve the load on the grid and are often combined.
Power grids are always dimensioned for the time of year when the highest load is reached. In principle, electricity consumers must be reliably supplied. If network load peaks are buffered, the power network can be better utilized. In this respect, peak shaving is a useful instrument for reducing consumption and, correspondingly, the costs incurred. In case of doubt, cost-intensive grid expansion can be postponed or prevented.
Until now, storage facilities have been financially rewarded for reducing a network operator's peak loads. Grid operators were able to save costs. These savings were passed on to the generator that reduced the load peak - in this case the battery in generator function. On 01.01.2023, according to §18 StromNEV, the financial remuneration for the reduction of network load peaks will expire. Due to this legal change, new battery storage systems commissioned after 01.01.2023 will no longer have an economic incentive to reduce grid load peaks. Kyon Energy is engaged in the industry for a suitable successor regulation. From Kyon Energy's point of view, a dynamic mechanism should be aimed at, in which battery storage is used to serve the grid exactly when the grid components are really overloaded.