peak demand monitoring manufacturing

How Real-Time Peak Demand Monitoring Reduces Electricity Tariff Costs

In many manufacturing plants we work with, peak demand charges represent 30–40% of the electricity bill. Yet load profiles during peak windows are unknown. Processes run as scheduled; non-essential equipment runs anyway.

Focus AreaManufacturing — All sectors
Assets28 production machines
Operating Shifts2 per day

The Challenge

A manufacturing facility's electricity tariff structure included 40% premium charges for peak demand during peak windows. Peak demand was being driven by simultaneous operation of production machinery AND non-essential loads.

What Became Visible

Real-time load profiling revealed that peak demand spikes were driven by three factors: scheduled production machinery (unavoidable), cooling systems cycling at full load during peak windows (unscheduled), and auxiliary equipment left running during peak periods (unplanned). The facility was paying peak charges for loads that could have been deferred by 30 minutes.

What Changed

Automated load shedding during peak demand windows — non-essential equipment shut down automatically 5 minutes before peak, restored 5 minutes after.

How it worked: Production machinery continued uninterrupted. Cooling systems were pre-cycled before peak windows. Auxiliary equipment had scheduled ramp-down times. The facility's peak demand dropped by 15%, reducing tariff charges immediately.

Results

Peak demand reduction
−15%

during peak windows

Peak hour tariff charges
−₹12.4 lakhs

annually

Production impact
Zero

no change to production

Non-essential loads deferred
Automatically scheduled

per peak windows

Key Insight

Peak demand charges are the most manipulable part of the electricity bill. When load profiles during peak windows become visible, the interventions are straightforward: defer what can be deferred, schedule what can be scheduled.

Operational Reality

Most facilities waste 10–20% of peak demand charges through loads that could be deferred. The fix requires data and simple automation.

Related topicspeak demand monitoring manufacturingindustrial peak load managementdemand response manufacturingelectricity tariff optimizationpeak hour load sheddingdemand forecasting industrial

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