Do you really understand how electricity companies charge your business?
In certain provinces in Canada, such as Ontario and British Columbia, you do not pay only for electricity consumption. Demand charges make up a significant portion of many business electricity bills. These charges are based on the highest level of power your facility uses during a billing period, even if that peak lasts only a few minutes.
Because of demand charges, businesses are encouraged to reduce power usage during peak hours. The challenge is that most companies operate during those same peak periods. This often leaves business owners asking the same question. How do you avoid demand charges without sacrificing daily operations or productivity?
This is where Peak Shaving becomes important. Moreover, Peak Shaving is simply about preventing those high-demand spikes from happening again.
Peak Shaving does not mean using less electricity overall. It means managing energy more intelligently when demand rises faster than expected.
Learn more about demand charges below:
What Peak Shaving Looks Like For Canadians in Real Life
Canada’s electricity pricing places strong emphasis on demand. In Ontario, time-based pricing magnifies peak usage and increases costs during high-demand periods. Alberta’s market-driven system introduces price swings when demand rises. Other provinces follow similar pricing patterns in different ways.
As more equipment becomes electric, peak demand becomes harder to avoid. Heating systems, EV charging, and automation often overlap during the same hours. Without Peak Shaving, businesses pay for those overlaps. With Peak Shaving, they gain control over them.
Peak Shaving limits how much power a facility draws from the grid when usage rises quickly. Instead of allowing demand to spike, the system keeps electricity use below a defined threshold.
In some cases, equipment timing is adjusted to minimise power usage. In others, stored energy or solar energy fills the gap. Most of the time, nothing looks different on the facility floor. Operations continue as usual. The only noticeable change appears on the utility bill.
There is also a broader benefit. When many facilities use Peak Shaving to manage demand, electrical grids experience less stress during extreme weather events and seasonal demand surges.
How Peak Shaving Is Usually Done
Most Peak Shaving setups rely on battery energy storage systems (BESS).
The energy management system within a BESS tracks electricity demand in real time. When usage begins to rise too quickly, the battery automatically supplies power instead of drawing it from the grid. This helps keep demand charges lower while maintaining normal operations. Battery energy storage systems add flexibility for businesses, and these adjustments are usually small enough that no one notices any change.
As AI technology continues to develop, some BESS platforms now use artificial intelligence to read and analyze business power consumption patterns. These systems optimize energy usage by reducing reliance on the grid and maximizing the value of both solar energy and battery storage.
In Canada, Peak Shaving is often combined with solar energy. Solar production during the day helps power operations during peak hours. Excess solar energy is stored in batteries, also known as behind-the-meter systems, and then used during the next demand peaks to avoid exceeding power demand charges.
Benefits Beyond Monthly Savings
Lower electricity bills are the most obvious benefit. When peaks are controlled, demand charges shrink. Stored clean energy can replace grid electricity during peak periods without disrupting operations or reducing productivity.
Predictability is another key advantage. Energy costs become easier to forecast and manage. Stored energy also adds resilience during grid constraints, outages, or sudden price fluctuations.
From a sustainability perspective, this approach supports ESG goals (Environmental, Social, and Governance) by demonstrating responsible energy use and long-term corporate commitment.
Making Peak Shaving Work Long Term
No two facilities behave the same. Effective Peak Shaving starts with understanding when demand peaks occur and why they happen. Energy storage size and control settings must be based on real usage patterns rather than assumptions. Professional guidance is often essential to ensure the business adopts a sustainable and long-term strategy.
Many Canadian businesses use energy storage systems that continue learning over time. As operations evolve, Peak Shaving adapts alongside them, supporting informed and long-term business decisions.
Closing Thought
Peak Shaving is not a trend or a technical experiment. It is a practical way to manage rising demand charges and respond to the global change, which is increasing electrification. It is not about cutting power. It is about controlling the moments when power becomes expensive. Talk to the experts and make it happen for your business.
