With growing reliance on electricity to power transport, heating and industrial operations, and greater grid volatility, many businesses are facing disproportionately high costs and additional operational pressure. As a result, operations are needing to reshape their approach to energy management.  

That’s where peak shaving comes in.

An increasingly important strategy designed to help businesses manage demand spikes, peak shaving helps businesses reduce running costs and optimise how energy is consumed across their operations. 

What is peak shaving?

Peak shaving is the process of reducing electricity demand during high-consumption periods and is typically supported through battery energy storage systems (BESS), on-site generation or an intelligent load management system (ILMS). These methods allow organisations to reduce reliance on grid electricity and improve overall energy flexibility. 

How does peak shaving work?

For distribution centres, manufacturing sites, cold storage facilities, and logistics operations, short periods of concentrated electricity demand can significantly increase operational energy costs.  

With a peak shaving strategy, these sectors can identify and reduce these periods of high demand across a site or operation.  

1. Identify periods of peak energy demand

For many commercial and industrial organisations, these demand spikes may be linked to activities like EV fleet charging or simultaneous operational processes. 

Monitoring patterns allows you to identify periods where energy usage is disproportionately high and find opportunities to improve efficiency and reduce demand-related costs. 

2. Use battery storage during demand spikes

Battery Energy Storage Systems (BESS) are increasingly being used to support peak shaving strategies. Electricity can be stored during low-demand periods or when on-site renewable generation is high and then deployed during peak consumption periods. This reduces the amount of electricity needed to be drawn from the grid at critical times. 

For organisations investing in a renewable energy infrastructure, battery storage can also help maximise your on-site electricity generation. 

3. Reduce pressure on the grid

As more organisations electrify operations, pressure on the UK grid continues to grow. With a peak shaving strategy, this strain is reduced during high-demand periods.

What causes energy demand spikes?

For commercial and industrial organisations, common causes of peak demand include: 

• Manufacturing and processing equipment starting simultaneously 
• Cold storage and refrigeration systems 
• HVAC infrastructure operating during busy periods 
• EV fleet charging infrastructure 
• High occupancy commercial operations 
• Large-scale operational processes running at the same time 

Although these demand spikes may only last for short periods, they can have a significant impact on costs. 

Peak shaving vs load shifting

Peak shaving and load shifting are closely related, but they support energy management in different ways. 

Peak shaving focuses on reducing electricity demand during periods of highest usage, typically by using self-generated or stored energy. 

Load shifting, by comparison, involves moving energy-intensive activities to periods where electricity demand is lower. This may involve scheduling charging, manufacturing or operational processes outside of peak tariff periods. 

Many organisations combine both strategies as part of a wider commercial energy optimisation approach. 

What are the benefits of peak shaving?

For businesses managing large or variable electricity demand, peak shaving can provide several operational and financial benefits: 

Improved energy cost predictability

Reducing exposure to demand-related charges can help businesses improve cost forecasting and reduce the impact of fluctuating electricity costs. 

Reduced peak demand charges 

By lowering periods of exceptionally high electricity demand, organisations may be able to reduce charges linked to peak consumption levels. 

Improved operational resilience

Battery storage and intelligent energy management can help improve resilience during periods of grid stress or supply volatility. 

Support for sustainability goals

Peak shaving can support wider sustainability and net zero strategies by improving energy efficiency and helping organisations maximise the use of renewable electricity. 

Reduced grid dependence

Using stored energy during peak demand periods reduces reliance on grid electricity. 

Improved energy flexibility

Businesses with greater visibility and control over electricity demand are often better positioned to respond to changing operational and energy market conditions. 

Peak shaving and Battery Energy Storage Systems (BESS)

Battery Energy Storage Systems are becoming an increasingly important part of commercial energy infrastructure strategies. 

As electricity demand grows and organisations continue to invest in electrification and renewable generation, battery storage provides greater flexibility in how and when electricity is used. 

Alongside supporting peak shaving strategies, BESS can help organisations optimise renewable energy generation, improve resilience and reduce exposure to periods of high electricity pricing. 

For businesses operating energy-intensive sites, battery storage is increasingly being viewed not only as an energy-saving measure, but as part of a broader long-term operational and infrastructure strategy.  

How Centreco can help

At Centreco, we work with businesses to develop tailored energy strategies that support operational efficiency, resilience and long-term cost management. 

Get in touch with Centreco to discuss how peak shaving and battery storage could support your organisation’s wider energy strategy.