Peak Shaving & Demand Response

Reducing Energy Costs & Managing Demand Charges

Demand charges can represent up to 30% to 50% of a commercial or industrial facility’s monthly utility expenses, often dictated by the single highest 15-minute or one-hour consumption spike during a billing cycle.

To mitigate these volatile operational expenditures, electrical engineers and facility managers can utilize on-site peak shaving and demand response strategies to level out the facility’s grid-demand curve.

By integrating highly dispatchable distributed energy resources (DERs), such as fast-responding Cat® natural gas gensets, facilities can seamlessly transition a portion of their critical production loads off the grid during localized peak events or extreme weather-driven seasonal surges. This localized generation not only minimizes exposure to exorbitant demand charges, but it also enables facilities to capitalize on utility-sponsored demand response incentives, generating new revenue streams via capacity payments or energy sellback programs.  

Cat® AMP: Peak Load Management

Implementing advanced peak-shaving strategies requires automated precision to accurately capture fast-moving utility peak windows before expensive penalties are locked in.

Through advanced technology like Cat® AMP software, facility managers gain real-time, predictive insight into grid health and economic trends. The software automatically handles economic dispatch, orchestrating a synchronized response between gensets, renewable assets, and Battery Energy Storage Systems (BESS). This level of control ensures that on-site capacity is dispatched precisely when the grid peaks—reducing unnecessary engine runtime, optimizing fuel efficiency, and strictly adhering to local EPA non-emergency stationary emissions standards, all while maintaining total facility reliability without core operational disruption.

Engineering, Controls, and Overall Power System Support

Successful peak shaving and demand response solutions require careful system planning, load analysis, and controls integration. Cleveland Brothers provides engineering support, generator solutions, and other power system expertise to help electrical engineers and other power professionals develop reliable strategies aligned with operational goals, utility requirements, and long-term energy management plans.