Peaking – Peak Shaving

A peak shaving (reducing your peak) or peaking (producing excess electricity) plant, or existing standby generation plant can help reduce your electric bills. Many local utility or regional transmission independent system operators (ISOs) offer incentives to reduce peak demand or produce excess electricity for export back onto the grid.

Application Fit

If you think peaking or peak shaving may be a fit for your application, you should consider:

  • Does your utility or ISO offer programs that incentivize peak reduction?
  • Is a purchase power agreement (PPA) needed for peaking?
  • What prime mover will work best for your application?
  • What are the interconnect requirements to operate in parallel?
  • What is the fuel source ? Are you prepared to deal with price volatility and delivery problems?
  • What are the challenges associated with obtaining an environmental permit given your existing emissions profile?
  • How many hours per year do you expect to operate?
  • Who decides when you operate and for how long?
  • Do you have enough space to site the equipment?
  • Will you need a transformer to match incoming utility voltage.
  • Do you have the expertise to operate and maintain the equipment (i.e., is it part of your core business)?

Project Feasibility

If peaking or peak shaving looks like a fit for your project, contact IEA and one of our experts can guide you through the project screening and development processes .

Financing / Ownership / Outsourcing

IEA can own, operate and maintain your peaking or peak shaving project or provide a turnkey solution with asset management services to support ongoing operations and maintenance for projects owned directly by customers.

peak shaving
The primary equipment choices for a peaking or peak shaving application are similar to those for prime power (i.e., combustion turbines or reciprocating engines). While solar and wind may help supplement the energy supply they are not generally sufficient in their supply or reliability to serve as a peaking or peak shaving power alternative, unless a storage system is also employed.