Introduction
Electricity consumption is on the rise these days, with peaks occurring during certain times of the year, particularly in summer and winter. Today, there is a particular need for infrastructure development and power supply to handle peak loads, and peak shaving is one of the solutions to these problems of increased energy demand and peak loads.
1. Increased Energy Demand and Peak Load Issues
■ Increased Energy Demand
There are three main factors that explain why electricity demand is increasing.
The first is economic growth. With global economic growth, there has been an increase in industrial, commercial, and residential electricity consumption. Particularly in developing countries, urbanization and industrialization are rapidly increasing energy demand.
The second is the rapid increase in demand for data centers and servers due to the spread of technologies such as digitalization and technological innovation (IoT) and artificial intelligence (AI), which in turn is increasing power consumption.
And the third is climate change countermeasures. In Japan, various efforts to expand the introduction of renewable energy have been underway since before COP28 in 2023, while new forms of energy consumption, such as electric vehicles and heat pumps used for air conditioning, are also increasing.
■ Peak Load Issues
In addition, peak demand is also an issue. Electricity demand surges at certain times of the year (e.g., summer afternoons and winter nights), and if power supply cannot keep up during these times, there is a risk of power outages and supply shortages. The power grid and power plant infrastructure must be strengthened to cope with such peak loads, but this comes at a significant cost. In addition, power plant operations can become unstable.
2. what is peak shaving? Definition of Peak Shaving
Peak shaving, by the way, refers to reducing peak electricity consumption during specific time periods. This improves the stability of the power supply and reduces the burden on the power grid. In addition, the supply of electricity must instantaneously meet demand, and since shortages of supply during peak hours increase the risk for each power company, peak shaving with storage batteries reduces risk by balancing supply and demand, thereby promoting the efficient use of energy.