The terms “peak avoidance” and “peak shaving” are becoming more and more common in relation to efficient energy use. Both strategies have a common objective: the aim is to reduce the burden on the electricity grid in times of high demand and to reduce energy costs. But how exactly do the two approaches differ? Below, we explain the key differences in a comprehensible way, supplemented by realistic scenarios and practical examples.

Peak avoidance – controlling electricity consumption intelligently

Peak avoidance means that high load peaks do not occur in the first place. With this proactive strategy, electricity consumption is controlled in a targeted and forward-looking manner.
This is how it works in practice: companies try to avoid electricity peaks by using electricity for large loads/consumers as evenly as possible, so the peaks don’t all occur at the same time. This can be achieved through approaches such as intelligent demand side management (DSM), in which consumption processes are controlled flexibly and automatically.

Scenario:
Imagine an industrial company that is located in a region where grid utilization is often high. In order to reduce costs and support grid stability, energy-intensive processes are distributed in such a way that high loads are handled sequentially behind the meter. This prevents high peak loads that would burden the grid and your budget equally.

Practical example:
An automobile manufacturer relies on intelligent control systems. Machines and systems are automatically regulated in such a way that energy-intensive work steps are evenly distributed. This significantly reduces costs.

The innovative battery storage systems from ADS-TEC Energy allow peak shaving to be optimized efficiently and sustainably. Our high-performance storage systems offer optimal properties for complex installation conditions.

How does peak avoidance work?

Peak avoidance is applied through the targeted management of electricity consumption. This can be achieved using different techniques:

1. Shift in consumption: Energy-intensive appliances are used at times of lower local consumption.
2. Use of energy storage systems: If energy is available, cheap and local consumption is below the threshold, it is stored in battery storage systems and used at a later point to meet demand at peak times.
3. Demand side management (DSM): In this case, energy consumption is actively controlled, for example by intelligently managing devices and systems that are not time-critical and can be moved flexibly.

For example, a battery storage system with a capacity of 500 kWh could offset a peak load of 100 kW for five hours – saving a medium-sized company several thousand euros a year.

Benefits of peak shaving for companies

Peak shaving has a positive impact on the company in question as a result of:

• Lower grid charges: Reducing peaks reduces the demand charge.
• Optimized use of storage: The intelligent use of batteries can make the use of energy more flexible.
• Protecting the power grid: More balanced electricity consumption reduces the strain on the public power grid.
   

Benefits of peak avoidance for companies

Below you will find the benefits of peak avoidance:

• Cost savings: By avoiding peak loads, companies can reduce high grid usage charges and surcharges for peak load times.
• Efficient energy consumption: Electricity consumption is distributed more evenly, resulting in greater predictability, increased flexibility and lower operating costs.
• Sustainability: Peak avoidance reduces CO₂ emissions and promotes the use of green energy.
• System stability: Reduced grid load helps to ensure the local stability of the grid.

For example, a company that avoids peak loads through targeted management could reduce their grid usage charges by up to 15% per year.

Peak shaving – everyday application locations

Various sectors benefit from peak shaving, including the following:

• Bakeries: In the morning, when ovens heat up at the same time, high peaks occur.
• Car dealerships: Charging several electric cars at the same time increases 
  electricity consumption rapidly.
• Metalworks: Welding devices and milling machines generate high peak loads.

With the right system and an efficient battery storage system, companies can significantly reduce their costs and increase performance.

Peak avoidance – everyday application locations

The following are areas in which energy efficiency can be optimized through peak avoidance:

1. Private households
   Shifting energy consumption at peak times: Households can consciously shift over to using their washing machines, dishwashers or dryers at times when electricity demand is lower (e.g. at night or on weekends).
2. Industry and commerce
   Shifting production processes: Companies that operate machines or production lines can produce during less energy-intensive periods and reduce or postpone production during peak loads.

Conclusion – intelligent solutions for your company’s success

Peak avoidance and peak shaving follow different strategies, but complement each other perfectly. While avoidance relies on forward planning to avoid peak loads in the first place, shaving reliably cushions short-term power peaks.

Clever use of modern battery storage systems, strategic use of your grid connection and targeted expansion of your infrastructure reduces more than just your energy costs. They also tap into new business areas and sources of income. Companies that actively rely on peak shaving today will ensure clear competitive advantages and strengthen their position on the market over the long term.

With battery storage systems from ADS-TEC Energy, you have just the right solution to effectively reduce peak loads and make your company fit for the future. Because those who act today benefit twice – from lower energy costs and lasting economic success.