What is Peak Shaving? Also known as load shedding or peak demand reduction, Peak Shaving is a strategy to avoid high peak demand charges on the electrical grid by quickly reducing electricity consumption during periods of high demand.

BENEFITS FOR BUSINESSES:                                           

  • Save on high-tier electricity costs

  • Increase the stability of local and transmission power systems

  • Maximize the utilization of available renewable energy


  • Bakeries, when the ovens start-up in the morning

  • Car dealerships, when several electric charging points are in use at once

  • Metal manufacturers that use welding equipment and other energy-intensive machines

  • Dairy farmers who use a robotic milking system, and many more

Are you looking for solutions like Peak Shaving (PS)?

At VAS, our team of skilled engineers is ready to advise you on optimizing your power systems with solutions like Peak Shaving, which plays a crucial role in the future of the electrical grid.

How Peak Shaving Works


To avoid overload and surpass the optimal power consumption curve of a plant while avoiding high electricity costs during peak hours, developed countries employ two main strategies: Peak Shaving and Load Shifting.

Peak Shaving is a strategy where electricity consumption is temporarily reduced to prevent demand peaks by reducing production or sourcing additional power from local sources like rooftop solar systems, batteries, or even bidirectional electric vehicles.

In contrast, Load Shifting is a strategy where electricity consumption is temporarily reduced and shifted electricity consumption to periods with lower electricity prices or lower grid demand. This is suitable for flexible loads that can be easily switched without impacting operations, such as electric vehicle charging.

Peak Shaving can be implemented through either demand-side management or supply-side management.
The goal of demand-side management is to reduce demand by deploying various strategies. For example, in the case of electric vehicles, an energy management system can automatically limit the power allocated to EV charging infrastructure. In industrial settings, non-essential or non-critical heavy machinery that is not in use can be turned off.
Supply-side management involves utilizing local power sources to reduce dependence on the grid during peak periods. Integrating energy sources such as solar power systems, batteries, or fuel cells is crucial. Fossil fuel-powered sources, like backup generators, can also be used, but they produce more emissions.
Demand-side and supply-side management can be applied individually or in combination. All methods reduce load at the grid connection point, successfully cutting peak demand.

How Utility Companies Can Manage Demand : Optimize Operations with Advanced Distribution Management System EcoStruxure™ (ADMS)

In the era of digitization and transition to clean energy, advanced distribution management systems (ADMS) are crucial in addressing the challenges utilities face. With rapid renewable energy growth and increasing demand variability, EcoStruxure™ ADMS provides powerful digital technology to optimize operations and manage power systems. ADMS helps utilities manage demand, optimize investment and operating costs, and significantly improve grid reliability and performance.

To learn more about EcoStruxure™ Grid solutions, visit For more on EcoStruxure™ ADMS, explore