How businesses can use load shedding for energy savings

September 13, 2024

Looking for a way to cut energy bills and boost efficiency? Load shedding might be a new strategy for you to try. Load shedding allows businesses to manage energy consumption during peak times, helping them avoid expensive electricity rates, reduce strain on the power grid, and even qualify for incentives. 

Sounds great right? Let’s take a closer look at how businesses can implement load shedding to unlock energy savings.

What is Load Shedding?

Load shedding is a strategy in which businesses reduce or shift their electricity usage during periods of high demand on the power grid. Typically, utility companies charge higher rates during these peak times, so by curbing energy use when electricity is at its most expensive, businesses can cut their energy costs significantly. Load shedding can be done manually or automatically, depending on the equipment and systems a business has in place. This practice not only reduces energy bills but also helps maintain grid stability, which can be crucial during peak demand periods when power supplies are stretched thin.

Benefits of Load Shedding for Businesses

Energy prices fluctuate throughout the day based on demand. During peak hours—such as late afternoons or hot summer days when HVAC systems are working overtime—electricity can be much more expensive. By reducing consumption during these periods, businesses can achieve several benefits:

  • Lower Energy Bills: Shifting or cutting down energy usage during peak periods can lead to significant savings on electricity bills.
  • Avoiding Peak Demand Charges: Many utility providers impose additional fees for exceeding certain demand thresholds during peak hours. Load shedding helps businesses stay below those thresholds.
  • Improved Energy Efficiency: Load shedding encourages businesses to be more mindful of their energy use, leading to more efficient operations overall.
  • Environmental Benefits: Reducing energy consumption during peak periods can lower a business's carbon footprint, helping them meet sustainability goals.

How to Implement Load Shedding for Your Business

There are several strategies businesses can use to implement load shedding and maximize energy savings. Depending on the size and nature of your business, you can tailor these methods to fit your operational needs.

1. Identify Peak Demand Times

The first step in implementing load shedding is to identify the peak demand times for your specific region. These periods typically coincide with the times when electricity is most expensive, such as early mornings, late afternoons, or during extreme weather events. Businesses can access this information through their utility providers or use energy monitoring tools, such as the CleanPQ smart meter, to track real-time energy usage.

2. Prioritize Non-Essential Equipment

Once peak times are identified, businesses can determine which equipment is non-essential during those periods. Non-critical systems—such as certain lighting, HVAC, or production equipment—can be powered down or run at reduced capacity during peak hours. For example, factories may stagger the use of heavy machinery, or offices might dim non-essential lights during peak demand times.

3. Automate Load Shedding with Smart Technology

Automation is key to making load shedding effective without disrupting day-to-day operations. Smart meters and energy management systems can automatically adjust power usage based on pre-set criteria, making it easier to shed load during peak periods. These systems monitor electricity consumption in real time and can automatically turn off or scale back energy-hungry systems, optimizing usage without requiring constant oversight. Electripure’s CleanPQ smart meter, for example, provides businesses with detailed insights into their energy use, allowing them to automate load shedding for maximum efficiency and cost savings.

4. Engage in Demand Response Programs

In some cases, businesses can participate in demand response programs offered by their utility providers. These programs incentivize businesses to voluntarily reduce power consumption during peak periods in exchange for lower rates or financial incentives. Businesses enrolled in these programs may receive advance notice of peak periods, allowing them to plan load shedding strategies in advance.

5. Use Energy Storage Solutions

For businesses that cannot afford to shut down critical systems during peak periods, energy storage solutions—such as batteries—can be a valuable tool for load shedding. These systems store energy during off-peak times when electricity is cheaper and then discharge it during peak demand periods, reducing reliance on grid power. Although an investment in energy storage solutions may be needed upfront, they can help businesses achieve long-term energy savings while ensuring uninterrupted operations.

Load shedding is a powerful tool that can help businesses manage their energy consumption, reduce costs, and improve overall efficiency. By identifying peak demand periods, prioritizing non-essential equipment, and automating energy management through smart technology, businesses can unlock significant energy savings. 

If you’re ready to explore how load shedding can benefit your business, Electripure can help. Our CleanPQ smart meter provides the insights and automation needed to effectively manage your energy use. Contact us today for a free consultation and discover how we can help you reduce your energy bills and boost your operational efficiency.