Strategies for Managing Electricity Demand for Buildings in Denver

Denver’s growing population is one reason energy demands are skyrocketing, leading to increased electricity costs. As of 2024, the estimated cost of electric bills for a single household was about $130 per month.

Implementing effective strategies reduces electricity costs and contributes to a greener environment by reducing the strain on the local grid. While Denver’s electricity prices are among the highest in the United States, there are multiple strategies that can reduce the ultimate cost for customers.

Of course, construction and maintenance of power plants and other general infrastructure can be costly, but demand management can reduce these costs in the long run.

Load Shifting

Load shifting helps lower energy costs by relieving the stress on the electric grid at peak demand hours. Typically, it involves switching off energy-intensive machines at peak demand periods and switching them back on at off-peak hours if a machine was to run early in the morning or late in the evening when electricity demand is at its peak, load shifting means running it at off-peak periods.

With this strategy, the energy consumed changes little, but the demand is redistributed from peak to off-peak hours, meaning you’ll avoid the extra charges that your usage would surpass at peak demand hours.

Peak Shaving

Increased electricity demand on the grid sometimes causes blackouts and power outages because the electricity supplied does not match the growing demand. Peak shaving, therefore, involves reducing power usage during the high demand periods.

To achieve this, you switch off the power-using equipment, connect it to a different power-generating source, or use a battery storage system. In doing so, the secondary power system can only power specific energy-demanding equipment at peak hours.

Unlike load shifting, peak shaving allows energy-intensive equipment to run even during peak periods. Using other power generation methods lowers the high demand for grid power below the level where additional peak demand charges apply.

Peak Shaving vs. Load Shifting: Choosing The Right Strategy

The choice between peak shaving and load shifting depends on the specific production goals and the circumstances around electricity demand. The load flexibility and the variability of the electric prices with either strategy also matter.

However, while load shifting reduces consumption at peak demand, it does not reduce the overall energy used. This is because the consumption is moved to off-peak periods. Peak shaving, on the other hand, cuts off the excessive charges and energy used when demands are high.

Check on the following to ensure peak shaving:

Energy Storage System

Batteries are the most reliable tools for effective peak shaving. They can recharge when electricity demand is lower and give out power when demand is high. So, with appropriate battery capacities, any critical equipment can be run without additional prices or strain on the grid.

On-site Power Generation

If you can generate power with solar, wind turbines, or natural gas around the facility, it is easier to use this electricity at peak periods, lowering the stress on the grid. For more efficient results, incorporate battery storage for the generated power to reduce reliance on the grid even further.

Electricity Demand Challenges in Denver

Denver’s growing population and expanding city status directly affect the electrical grid. As a result, high electricity prices and environmental concerns are pushing Denver to find better solutions to effectively manage its electricity demand.

Balancing its environmental goals and growing electricity demand has proved challenging, as it is in many cities. However, in Denver, the strain is felt more on the grid because of the population growth and economic development. So many people are moving to the city and increasing the stress on the grid, leading to power blackouts and outages.

One of the many challenges is high electricity costs. Denver residents and businesses alike struggle with the burden of higher electricity prices in the US. This is partly a result of relying on natural gas to produce electricity.

In conclusion, managing electricity demand ensures residents don’t struggle with hefty energy bills. This also ensures a safe, sustainable environment for everyone at all costs. So whether integrating renewable energy or taking advantage of battery storage systems, strategic planning and management are important to ensure efficient energy supply. Contact ElectriCall for Professional Electrical Services.