How Utilities Can Reduce Peak Demand Charges
Peak demand charges, incurred by utility companies during periods of highest energy usage, are expensive and avoidable additions to power purchasing costs. Traditional demand response systems have been moderately effective in shifting demand under emergency scenarios; however, blackouts still cost US taxpayers more than $80 billion annually and are also costly for utilities. Integrating telecommunications with the power grid allows innovative demand-side management systems to replace antiquated demand response strategies. Demand-side management enables utilities to cut peak demand charges by providing insight and transparency into energy consumption and giving utilities the ability to shift demand from periods of peak usage to less expensive off-peak hours.




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