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Demand Side Measures
Demand side measures, such as shifting usage to off-peak times, reducing peak loads, and participating in voluntary load shedding programs, can significantly impact energy costs.
How much are you paying for demand?
- The two primary components of most electricity bills are energy charges (per kWh) and demand charges (per W or kva).
- Energy charges are based on the cost per unit used (kWh).
- Demand charges are based on maximum power consumed at one time.
- For commercial and industrial customers, demand charges may be 50% or more of the total cost of electricity.
- Demand charges vary by utility, region, and usage. Typical charges range from a few dollars per kW up to $20 or more depending on your time of use and rate structure.
- What does your load profile look like? A load profile is a graph showing consumption versus time. It can give you clues as to where to look for savings opportunities. For example:
- Lower the baseload on nights and weekends by turning off equipment that is not needed,
- Reduce peaks by staggering equipment start times, and/o
- Lower costs by shifting loads to off-peak hours.
- Many electric utilities offer demand response programs. These are programs in which a utility or third-party vendor enters into a contract with a customer to shed a given amount of load for a specific period of time when called upon by the utility to do so. Payments, penalties and contract terms vary.
RPM can help characterize your consumption and look for opportunities to reduce demand charges. Measures often include no cost/low cost activities, large scale projects, and participation in income generating demand response programs. RPM can help you find and take advantage of these cost-effective opportunities in your facility.
Remember: Efficiency first. Renewables second.