A load management strategy where utilities or large industrial consumers reduce their grid power draw during high-demand periods. This is typically achieved by temporarily switching to on-site generation, discharging battery storage systems, or curtailing non-essential equipment. It helps grid operators avoid firing up expensive peaker plants and saves commercial consumers money on demand charges.
The facility manager scheduled the heavy crushers to run at night for peak shaving, saving us thousands on demand fees.
Also heard as
- load shedding
- peak lopping
Related terms
Time-of-use rates
A pricing structure where electricity costs vary based on the time of day and season.
Storage station
A large-scale facility that banks electrical energy to discharge it back to the grid during peak demand.
Rolling blackout
An intentional, temporary disruption of electrical service to different geographic areas to prevent a grid collapse.