Blog > 4 Tips To Survive Peak Demand Charges

Throughout the history of the manufacturing industry, energy usage has been a story of transition marked by progress and challenges. Processes have become more demanding on finite resources as manufacturers juggle increased demand and cost reduction. As we’ve become more aware of the impacts of energy usage, there are promising avenues for manufacturers to achieve a more sustainable and energy-conscious approach to their operations that will save money. One of those ways is by reducing your peak demand charges.

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This blog post explores how manufacturers can leverage real-time monitoring, automated alerts, and data-driven insights to optimize energy consumption, reduce peak demand charges, and achieve a more sustainable and profitable future.

Utility companies use peak demand charges for the highest energy usage during specific periods, which can quickly inflate utility bills. These charges are designed to encourage consumers to manage their energy effectively during peak times to reduce the strain on the power grid. However, you may not know you’re paying so much in peak demand charges. Or if you do, it’s already too late – after the bill comes.

So, how do you get ahead of peak demand charges? Energy intelligence.

Energy intelligence uses real-time data and analytics to optimize energy consumption and reduce costs. It empowers manufacturers to understand their energy usage patterns, identify improvement areas, and proactively implement energy-saving measures. By leveraging energy intelligence, you can make informed decisions about your energy management strategies, mitigate the impact of peak demand charges, make data-driven decisions, improve operational efficiency, stay compliant with evolving regulations, and enhance brand reputation.

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1.) Real-Time Monitoring: Implement systems capable of monitoring energy usage in real time. This will allow you to identify peak demand events and take immediate action to reduce energy consumption and avoid costly charges.

2.) Automated Alerts: Set up automated alerts to notify you when energy usage approaches a predefined threshold. This way, you’ll be able to take preemptive measures to curb energy consumption before it escalates into a peak demand event.

3.) Monitoring and Analytics: Use energy monitoring and analytics tools to track energy usage patterns, identify large energy waste, and pinpoint opportunities for peak demand reduction. This data-driven approach allows you to make informed decisions about energy management strategies.

4.) Load Shifting: You may not realize that many or all of your machines are being turned on simultaneously, creating a massive surge of energy consumption. Running too many different processes, particularly those that require a lot of energy, can also cause peak demand charges. Start machines in phases and shift energy-intensive processes to off-peak times when electricity rates are lower. This could involve rescheduling production activities or using automated systems.

Energy intelligence offers you a way to avoid peak demand charges, shifting a money black hole into cost savings. With real-time data and analytics, you can get more control over your energy usage, reduce your environmental footprint, and enhance your bottom line.

The experts at R+IQ can help you implement energy intelligence into your operations with industry-leading solutions like FactoryTalk® Energy Manager™. Contact us today to learn more or get started.

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