Every business feels the impact of rising utility bills—especially during periods of high energy demand. These “peak” usage times can cause electricity prices to spike, leaving facilities with unexpected and inflated costs. That’s where peak shaving comes in.
What Is Peak Shaving?
Peak shaving is a strategic method that businesses use to lower electricity use during the most expensive hours of the day. Utilities typically charge commercial and industrial customers based on their highest level of energy demand, even if it only occurs for a short period. With peak shaving, facilities can limit their reliance on the grid during these periods by using alternative power sources—like a standby natural gas generator.
How It Works
When power demand hits a predetermined threshold, your facility’s system automatically switches to its natural gas generator, supplying some or all of the building’s electrical needs. This temporary “load shedding” reduces your draw from the grid, keeping your demand levels and associated costs in check. Once the peak pricing window ends, operations shift seamlessly back to utility power.
Why Use Small Natural Gas Generators for Peak Shaving?
Small natural gas generators—ranging from 40 kW to 500 kW—are a smart, scalable option for peak shaving in a variety of settings. They're compact enough to fit into tight spaces yet powerful enough to carry critical loads. Here’s what makes them a strategic choice:
- Consistent Fuel Supply: Natural gas generators provide a dependable fuel source via underground pipelines, eliminating the need for onsite storage and reducing the risk of fuel degradation or delivery delays. This continuous supply minimizes operational disruptions and simplifies logistics. For added flexibility, some gensets have a dual-fuel capability using propane to ensure reliable performance even in areas without pipeline access or during emergency conditions—keeping critical systems running when reliability matters most.
- Lower Emissions: From an emissions standpoint, natural gas generators significantly outperform diesel. When compared to diesel, units emit up to three times fewer nitrogen oxides (NOx) and virtually no sulfur dioxide, aligning your facility with tightening environmental regulations and long-term sustainability targets.
- Cost-Effective Operation: Natural gas burns cleaner and is often cheaper, leading to lower operating costs and less frequent maintenance. The Cat® DG40–80 natural gas gensets can deliver up to 35% in fuel cost savings compared to competitive systems at 100% load, based on factory data. With lower maintenance needs and cleaner-burning fuel, these generators offer one of the most cost-effective power strategies available for commercial and industrial operations.
- Automatic Load Management: For facilities using peak shaving strategies, integrating small natural gas generators with an energy management system enables seamless, automated load response. When energy usage approaches a utility-imposed threshold, the system signals the generator to start instantly—shaving peak demand, reducing exposure to demand charges, and avoiding costly penalties. The Cat® DG40–80 models enhance this capability with high power density and a footprint up to 15% smaller than comparable systems, making them ideal for sites with limited space or plans for future expansion.
The Business Benefits of Peak Shaving
Incorporating peak shaving into your facility’s energy strategy offers significant business advantages. By using small natural gas generators to offset grid usage during periods of high demand, facilities can reduce their exposure to costly demand charges and seasonal utility rate hikes. This proactive approach not only helps lower utility bills but also supports grid stability by easing the overall load during peak hours. Operational resilience is another key benefit—when power demand surges, your facility can seamlessly shift to an on-site generator, maintaining productivity without disruption. Additionally, with more consistent and predictable energy costs, peak shaving makes it easier to plan annual budgets with greater accuracy, giving your business a stronger foundation for financial and operational planning.
Let Cleveland Brothers Help You Plan Ahead
Whether you're trying to manage rising utility costs or improve your site’s energy resilience, Cleveland Brothers can help you implement a peak shaving strategy tailored to your operations. As an authorized Cat® dealer, we provide expert guidance, top-tier small natural gas generators, and end-to-end support.
Talk to our team today and start building a smarter, more efficient energy strategy for your facility.
