What does Peak Shaving mean?

Explanation

Peak shaving is the practice of reducing the maximum power draw at a charging site to avoid high demand charges on the electricity bill. Since demand charges are based on the single highest power peak during a billing period, even a brief spike can be expensive. Peak shaving strategies aim to flatten these spikes.

The most common peak shaving approaches include load management (spreading charging across time), on-site battery storage (the battery absorbs peaks by supplementing grid power), and scheduled charging (shifting sessions to off-peak hours). Some sites combine all three for maximum effect.

Battery-based peak shaving works by storing energy from the grid during quiet periods and discharging it to supplement grid power during peak demand. A 200 kWh battery at a charging site can absorb a 100 kW peak for about 2 hours, significantly reducing the site's maximum grid draw. This can save the operator thousands of euros per month in demand charges.

For current specifications, see OpenADR Alliance.

Where you'll see this

• In charging network apps

Common confusion

Peak shaving does not mean drivers get less power. Clever peak shaving redistributes power over time so that the same total energy is delivered without expensive power spikes. Drivers may not notice any difference.

Example

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