General
Peak shaving is an energy management strategy that involves reducing electricity use (or using alternative power sources) during periods of highest demand to avoid peak charges or alleviate stress on the grid. For businesses or buildings, peak shaving might involve using battery storage or backup generators to supply power when grid electricity is most expensive or when demand charges apply. In renewable energy contexts, battery systems can charge when energy is cheap or abundant (like midday solar) and discharge during peak times, shaving off the demand spike. Peak shaving can lower electricity bills for consumers on time-of-use or demand charge rates and helps utilities reduce the need for peaking power plants.