Have you ever experienced a power cut?
If so, it may have been linked to peak energy demand. For businesses, this can lead to disrupted operations, reduced productivity and potential financial losses. That's why managing your energy is essential to avoiding these risks, protecting your business from costly disruptions.
What is peak energy demand?
Peak energy demand refers to the highest level of energy consumption within a specific period. This demand can fluctuate daily, weekly, yearly and seasonally, and is influenced by regular patterns and irregular events. For example, extreme weather conditions can significantly increase energy demand, as people use more electricity for heating or cooling.
What are the peak demand periods in the UK?
In the UK, peak demand periods typically occur during weekday mornings from 7:00 am - 10:00 am and evenings from 5:00 pm - 7:00 pm. These times correspond with when people wake up, have breakfast and get ready for their day, and when they come home, cook dinner and get ready for bed. However, these times can also be the busiest for businesses in certain industries, such as hospitality and retail.
What are the impacts of peak demand periods?
There are various impacts of peak demand periods, from financial to environmental. These include:
Grid stability
Grid stability can be hugely impacted by peak demand periods. As energy demand increases, it can put a strain on the generation and distribution infrastructure. If demand surpasses supply, it can lead to disruptions across the country. In this situation, your business could experience outages that impact your operations. It could cause your lights, phones, computers and machines to turn off, which could affect your employee productivity.
Energy costs
Energy costs can be a lot higher during demand periods. To meet demand, traditional forms of energy generation may need to be utilised. This energy is often more expensive and less efficient, leading to higher bills. If this happens, you could see a spike in your monthly outgoings. This could put a strain on your finances, forcing you to reallocate funds from other areas of your business. It could also impact your investment in growth opportunities, putting a pause on your plans for expansion.
Carbon emissions
Carbon emissions often increase during peak times. To meet demand, energy providers may need to use fossil fuel power plants. These traditional forms of energy generation produce more greenhouse gases, contributing to climate change. For businesses, this could make it challenging to reach their sustainability targets. It could even damage your reputation, as customers and stakeholders continue to prioritise sustainability.
What can businesses do to manage their energy during peak hours?
There are a number of ways that you can manage your energy use, to help reduce the strain on the grid. These include:
Conduct an energy audit
An energy audit is a good place to start when managing your energy. This involves assessing your energy bills and consumption patterns, identifying the equipment using the most energy. Recommendations from an audit can include upgrading to energy efficient equipment. Alternatively, you can schedule some tasks can be completed during off-peak hours.
Use a smart meter
Smart meters provide real-time data on energy use, revealing when your business consumes the most energy. This insight can be used to take proactive measures to manage your energy during peak periods. Smart meters can also be used to assess the effectiveness of measures. This means you can make data-driven decisions to ensure your energy saving efforts are successful.
Install solar panels
Solar panels can help to reduce the amount of electricity you draw from the grid during peak demand periods. By generating your own electricity, you can contribute to the overall stability of the grid, helping to reduce the likelihood of disruptions. Installing solar panels can also reduce your carbon footprint, helping your business to reach net zero.
Implement battery storage
Battery storage enables businesses to store energy during off-peak periods when rates are lower, and use the energy during peak periods when demand is higher. This can decrease your reliance on the grid, as well as provide backup energy during disruptions. Battery energy storage can also be integrated with renewable energy sources, such as solar panels.
Participate in demand side response
Demand side response is a way for businesses to help stabilise the grid. Network operators and energy providers send signals to businesses during peak demand periods. You can then choose to reduce your energy consumption in response, balancing supply and demand.
At SSE, we have a Virtual Power Plant service. This brings together all types of energy assets, including demand side response, solar panels and battery storage. By adding your assets to the system, you can support network operators and trade on energy markets. You can even earn money from contributing to the grid, opening your business up to new revenue streams.
What tools can businesses use to optimise their energy during peak hours?
There are a selection of tools that you can use to manage your energy during peak periods. However, to support our business customers, we've created our own tool that comes included with our energy plans.
SSE Clarity is an energy management platform, helping you to take control of your energy usage. Using data from your smart meter, SSE Clarity provides interactive reports that offer insight into your consumption. Using these reports, you can monitor your usage of electricity, gas, water and heat. You can even analyse historical data, helping you to identify patterns and review the impact of energy management measures.
Get involved with demand side response
Demand side response can empower businesses to make informed decisions about energy consumption, reducing energy costs and supporting grid stability. If you would like to learn more about demand side response, get in touch with our team or your dedicated account manager. We're here to help you unlock the full potential of your energy.