Discover how the power generator market supplies gensets that run during periods of high utility demand, reducing a facility's peak demand charges and lowering electricity bills.

For a large commercial or industrial customer, the electricity bill includes a demand charge based on the highest average power used during a billing period. The power generator market offers peak shaving gensets that run during the times of day when demand is highest (e.g., summer afternoons), reducing the facility's draw from the grid and lowering the demand charge. For a cold storage warehouse, a peak shaving genset runs when the compressor loads are high, cutting the peak demand. For a data center, the UPS batteries can be used for short peaks, but a genset can run for hours, covering the entire peak period. For a manufacturing plant with large motors (e.g., injection molding machines, fans), peak shaving can significantly reduce the monthly bill. For a university campus, a genset can be dispatched by the utility as part of a demand response program, earning revenue for the campus. For a hospital, peak shaving is less common because the backup genset is already sized for emergency loads; adding peak shaving requires a larger genset.

The economics of peak shaving depend on the utility rate structure. The power generator market offers gensets optimized for part-load operation (since peak shaving often involves running at less than full capacity). For a facility that peaks for only a few hours per day, a smaller genset (sized for the peak above a base level) may be sufficient. For a facility that can predict its peaks (using historical data), the genset can be started by a controller. For a facility with a load management system, the controller can also shed non-critical loads before starting the genset. For a site with an existing standby genset, adding peak shaving requires additional metering and control, but no new genset. For a utility, allowing customers to peak shave reduces the need for peaker plants. For a facility manager, a peak shaving genset can pay for itself in a few years through demand charge reduction.

Pairing the power generator market with the industrial generator market shows the crossover. The industrial generator market supplies gensets for factories, which are prime candidates for peak shaving. For a large factory, a peak shaving genset may be integrated with the plant's energy management system. For a smaller industrial facility, a portable genset (towed to the site) may be used for peak shaving if the grid connection is limited. As smart meters and time-of-use rates become more common, the demand for peak shaving gensets will grow. The power generator market will provide the on-demand power that helps facilities manage their electricity costs.

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