- Short-term demand spikes can significantly increase grid fees. Targeted peak shaving reduces fixed costs and stabilizes energy supply.
- Unlike load shifting, peak loads are managed in real time, for example using batteries or power-to-heat systems.
- Models such as heat-as-a-service enable peak demand management without on-site assets, making it accessible for mid-sized companies.
- This approach not only improves cost control, but also strengthens decarbonization efforts and security of supply.
Electricity costs are not only driven by how much is consumed, but also by when it is used. Short-term demand peaks can drive up grid fees for an entire year. For industrial companies with highly variable load profiles, managing these peaks becomes a key economic lever. Unlike load shifting, the focus is not on rescheduling processes, but on absorbing unwanted peaks in real time.
Why demand peaks are more costly today than in the past
Until a few years ago, electricity was a predictable factor for businesses, with fixed tariffs, calculable levies and a stable grid structure. Today, the situation is different. Volatile wholesale power prices, weather-dependent generation and regulatory frameworks such as Redispatch 2.0 or Section 14a of the German Energy Industry Act (EnWG) are increasing the pressure on companies to align their consumption with grid requirements.
For energy intensive industries in particular, the key question is how to control short-term load spikes without disrupting production. The answer lies in peak shaving, meaning measures that absorb extreme demand peaks before they translate into higher annual grid charges.
What is peak shaving and how does it differ from load shifting?
In operational energy management, different forms of load control are distinguished. While load shifting focuses on deliberately moving processes to more favourable time windows, peak shaving addresses very short-term, unwanted spikes in power demand.
These peaks often occur spontaneously, for example when several systems ramp up at the same time, due to sudden temperature changes or external control signals, such as grid-related interventions. They may last only minutes, but can have a lasting impact on grid fees. For metered customers, the highest average load measured over a 15-minute interval in a year often forms the basis for grid charge calculations.
Peak shaving targets exactly this. It aims to decouple these temporary peaks from the grid by using storage, controllable loads or intelligent load management systems.
Technical requirements: how can demand peaks be detected and managed?
Avoiding demand peaks requires precise data and automated responses. What matters is not only understanding energy consumption, but being able to identify emerging peaks in real time and take corrective action.
Battery storage as a short-term buffer
Industrial battery systems are typically charged during off-peak periods using lower-cost electricity and discharged when needed to smooth power demand. Their key advantage lies in fast response times. A few seconds can be enough to avoid a peak that would affect billing. In many facilities, these systems are directly integrated into the energy management system and respond automatically to predefined thresholds.
Thermal storage with power-to-heat systems
In many industrial settings, heat processes can be controlled with a high degree of flexibility, for example in food production, drying or heating applications. When electricity is temporarily inexpensive or readily available, it can be converted into heat via power-to-heat systems and stored in thermal storage units such as the ThermalBattery™. This stored energy can be used later without putting additional strain on the grid at critical moments.
Why peak shaving makes economic sense
Demand peaks do not only create short-term cost spikes. They often affect the entire annual bill. In industries with high base load demand, even a few minutes of peak load can increase fixed costs by five-figure amounts. At the same time, requirements for grid usage are tightening in many regions. Companies that do not offer controllable loads or actively reduce their impact on the grid may face higher charges or additional restrictions.
There is also a strategic dimension. A stable consumption profile makes planning more reliable, enables more favourable procurement on forward markets and opens up options such as flexibility trading or asset pooling. In the context of ISO 50001, ESG targets and long-term decarbonization strategies, targeted peak demand management is becoming increasingly relevant, both for cost control and for meeting corporate climate goals.
Heat-as-a-Service: reducing grid fees without on-site assets
For companies that do not want to invest in their own storage infrastructure, service-based models such as heat-as-a-service offer an alternative. An external provider supplies the required process heat and operates power-to-heat systems and storage in the background based on current market conditions. Energy is generated when electricity is inexpensive or grid load is low and made available when it is needed in operations.
From the customer’s perspective, day-to-day processes remain unchanged. What changes is the power drawn from the grid and, as a result, the level of grid fees. These models reduce complexity on site and make peak demand management accessible for mid-sized companies or facilities with limited control capabilities.
Digitalization as an enabler: system integration is essential
Successfully managing demand peaks requires more than storage and sensors. It depends on a strong digital foundation. Energy management systems need to operate with live data on prices, grid conditions and production. Interfaces to plant control systems are required, along with automated decision-making processes. Only when these layers interact seamlessly can demand peaks be avoided rather than simply analyzed after the fact.
Increasingly, such systems are no longer treated as stand-alone solutions. They are integrated into broader operational platforms, for example within MES, ERP or production control systems. The result is that energy is no longer managed in isolation, but as part of an overall operational strategy.
Peak shaving is more than a technical solution. It is risk management
In an electricity system shaped by uncertainty, whether driven by weather, market prices or regulation, the ability to remain flexible at short notice is becoming increasingly important. Peak shaving is an effective way to limit cost risks, strengthen security of supply and create room for more sustainable energy strategies.
Whether implemented through on-site storage, power-to-heat systems or service-based models, controlling demand peaks gives companies a tangible advantage on financial, operational and strategic levels.
