Energy Decision #11 - Peak Shaving Explained | Energy Answers by TEG

C&I Peak Shaving is the set of strategies commercial and industrial facilities use to cut the most expensive line on many power bills: demand charges based on the single highest kilowatt interval. This episode breaks down how demand charges are built, what levers you actually have, and how to decide whether batteries, generators, or operational changes give you the best return. This is Energy Decision #11 in the complete C&I energy management series from Tactical Energy Group. 100 decisions. Every one that matters. In this episode, Daniel Burke covers: • The core difference between kW and kWh and why demand charges exist • How demand charges can reach 30%–70% of a large C&I electricity bill • The three mechanical levers for peak shaving: load shedding/shifting, onsite generation, and battery energy storage systems • Practical tactics: HVAC setpoint adjustment, process rescheduling, pump scheduling, and smart EV charging • When to use generators, when to use batteries, and when CHP or hybrid solar‑plus‑storage fits • Key metrics: demand charge rate ($/kW), peak demand (kW), load factor, peak duration and frequency, round‑trip efficiency • Capital and operating cost ranges, typical 3–7 year payback targets, and stranded‑asset risk • How regional programs and demand response incentives stack on top of demand charge savings Who this is for: plant managers, facility managers, superintendents, COOs, and energy managers at commercial buildings, industrial facilities, manufacturers, hospitals, universities, and data centers who want to know “how to reduce demand charges on an industrial electricity bill” without disrupting operations. If you're trying to decide what the most cost‑effective peak shaving strategy is for your facility to mitigate demand charges and operational risks, this episode is built for you. Read the full breakdown on C&I Peak Shaving at tacticalenergygroup.com/c-i-peak-shaving. If you're an Indiana C&I operator actively evaluating this decision, get your free Energy Decision Blueprint at blueprint.tac-nrg.com. Visit tacticalenergygroup.com for more practical tools and the Energy Decision Blueprint for qualified Indiana C&I operators. Timestamps: 0:00 – What C&I peak shaving actually is and why it’s on your bill 3:20 – kW vs kWh and why demand charges are so large 7:30 – The three levers: load, onsite generation, and batteries 12:10 – Sizing, economics, and when the math works 18:25 – Technology choice by use case and common misconceptions 23:40 – Decision framework and questions for your team