Ace the Certified Energy Manager Exam 2026 – Power Up Your Career Potential!

Peak shaving is a strategic approach used in energy management to reduce the maximum electrical demand during peak usage periods. The primary goal of this practice is to lower demand charges on energy bills, which are typically incurred when consumption exceeds a certain threshold during peak times. By reducing this peak demand, organizations can save on costs associated with electricity consumption, lower the burden on the electrical grid during high-demand times, and contribute to overall energy efficiency.

This technique does not aim to eliminate electricity use entirely, which would be impractical for most facilities, nor does it inherently increase overall energy consumption. The focus is on managing and optimizing energy use to smooth out demand curves, rather than intensifying consumption during critical times. Additionally, while it relates to financial aspects through cost savings, peak shaving is fundamentally a plan directed at managing energy demand rather than being a financial strategy on its own.