Peak shaving is a method used to reduce utility costs. Peak shaving is a technique that is used to reduce electrical power consumption during periods of maximum demand on the power utility. Thus saving substantial amounts of money due to peaking/demand charges. Peak shaving also helps the utility provide maximum base load power without starting an expensive to operate peaking generator. By installing on site generation (CHP), utility costs will be reduced year round. A facility participating in peak shaving may experience a net energy savings of between 10% – 30% of their electricity bill.
Peak shaving systems use generators allowing the generator to monitor the electric grid, startup as necessary and synchronize power with the grid. An added benefit of this equipment would be backup power in case of grid outages or disruptions.