Peak Load Management
Peak load management is defined as an "economic reduction of electric energy demand during a utility's peak generation period." Peak load management strategies may be undertaken either independent of or in collaboration with a company's utility or independent system operator (ISO) / regional transmission organization (RTO).A company's electric bill consist of two major components: demand charge and energy consumption charge. Demand charges are reset monthly and are based on the highest rate at which electricity is consumed during periods that are peak-utility-service hours. Demand charges are measured in kilowatts and, depending on the utility service provider, the highest consumption rate is measured in 15- or 30-minute intervals during peak hours. Demand charges form a significant portion of a company's monthly electric bill. Peak load management strategies that lower a facility's demand during times when the peak demand is measured can result in significant facility cost savings, especially for commercial, industrial and institutional clients.
CPower's knowledgeable and experienced team can help to reduce utility cost by designing customized strategies that lower a facility's peak load demand in conjunction with other measures for energy efficiency improvement. CPower also helps clients obtain the best regional energy and peak load management incentives available for improving the return on investment for their energy and load management projects.
Many energy services companies provide energy cost savings to end-users for lowering facility demand charges and energy consumption, but CPower helps its clients earn additional market revenue for reducing facility demand when the electric grid is under stress and when the load reduction occurs during utility, RTO or ISO peaks. Payments are based on the amount of demand reduction, congestion on the grid, facility location, locational marginal real-time energy prices, compliance and the type of market-based programs available. Peak load management opportunities are available for clients in the following sectors: commercial, industrial, retail, institutional, and large residential. Peak load management projects and strategies, which are robust in nature, require a capital outlay.
CPower provides incentives and project management services for clients to maximize the local and regional compensation available from peak load management projects and to improve the rate of return on projects.
CPower has also won exclusive aggregate peak load management contracts, such as the NYSERDA PON 967 contract for $8.9 million in incentives for various peak load reduction projects resulting in more than 14 megawatts of peak load reduction in New York City and the surrounding areas. These exclusive contracts can provide clients with incentives that are up to 25% higher than direct applications under other programs. Projects eligible for peak load reduction include permanent demand reduction projects such as lighting, air conditioning system equipment and motor upgrades. Load shifting or load curtailment projects include HVAC control system programming and upgrades, bi-level lighting controls, demand-limiting controls, load cycling, industrial PLC based load shedding control systems and thermal storage as well as the use of clean emergency generation for load shifting, cogeneration and distributed generation. CPower also holds exclusive rights to permanent demand reduction projects in certain load areas in New York City for a total of 20 megawatts of demand reduction which are significantly higher than any other market offering.