peak shaving

Peak shaving is a strategy used to reduce electricity costs and manage demand by lowering energy consumption during times of highest usage, known as peak periods. When energy demand spikes, utility providers often charge higher rates. By temporarily shifting or reducing electricity use during these times—such as using stored energy from batteries or postponing non-essential loads—businesses and consumers can avoid these higher charges and help prevent strain on the power grid. This results in cost savings and contributes to a more stable and efficient energy system.