Peak Shaving

Peak shaving is a technique used to reduce electrical power consumption during periods of maximum demand for power utilities that can save substantial amounts of money from peak charges.

Why diesel compressors are used to manage peak shaving:

Electricity and compressed air are two main utilities used in the manufacturing and process industry. Some industries have diesel generators/co-gen system which can parallel with utility and can go offline from grid to peak shave. By using diesel driven equipment, there is no interruption to your processes which can increase efficiencies, productivity and ultimately profits.

Peak Shaving and Global Adjustment (GA) in Ontario, Canada:

­ The Global Adjustment (GA) is a line item charge on Ontario electricity bills. The GA accounts for the difference between the market price and rates paid to regulated and contracted generators as well as conservation and demand management programs. The GA charge has become one of the highest component charges on electrical bills in Ontario.

It is estimated that Ontario power demand peaks about five times during the year. In 2016, the total GA for the calendar year was approximately $10 billion for Ontario, resulting in an average cost of $450,000 per MW (measured during the top 5 Ontario peaks for Class A consumers). If customers can peak shave and reduce load through on-site generation by 1 MW for all 5 Ontario peaks, the estimated savings would be $450,000 for the year.

Why using Tier 4 technology is important:

When using diesel compressors, users need to closely monitor emissions. Because of this, diesel compressors with Tier 4 engines are preferred. Not only do Tier 4 compressors have environmental and health benefits by reducing emissions, but they also can cut costs by reducing the chance of hefty fines and save with fuel efficiency. In some cases, up to 25% more fuel efficient than non-tier 4 compressors. This is a huge advantage for longer service intervals.

For more information on Tier 4 compressors and why they might be the best choice, check out our related blog article here.