Commercial
Distribution facility: demand charge reduction with controlled peak caps
Situation
The site experienced short, high peaks caused by overlapping forklift charging, dock equipment start-ups, and HVAC cycling. These peaks were infrequent but drove a disproportionate share of monthly demand charges. The operational requirement was to reduce the top end of demand without constraining warehouse throughput, and without relying on manual operator intervention.
Approach
We designed a dispatch policy that caps grid import above a defined kW threshold. The system charges during low-tariff periods and maintains a reserve so that unexpected peaks later in the day can still be covered. Instead of targeting every spike, the policy prioritizes sustained peaks that influence billing, and it limits cycling on mild days to protect long-term performance.
Observed operational checks
- Peak cap adherence and number of cap events per week
- Battery state-of-charge at the start of the highest-risk window
- Power quality alarms and inverter temperature trends
Outcome range (typical)
When peaks are driven by a handful of overlapping loads, peak capping can reduce the highest monthly demand readings by a measurable margin. Actual savings depend on the tariff design and how often the cap activates.
- Peak reduction
- 10% to 25% (scenario-based)
- Daily cycling
- Partial, targeted to peaks
- Key success factor
- Stable threshold and reserve policy