Peak demand
Encyclopedia
Peak demand is used to refer to a historically high point in the sales record of a particular product
. In terms of energy use, peak demand describes a period of strong consumer demand
.
describing a period in which electrical power
is expected to be provided for a sustained period at a significantly higher than average supply level.
Peak demand fluctuations may occur on daily, monthly, seasonal and yearly cycles. For an electric utility
company, the actual point of peak demand is a single half hour or hourly period which represents the highest point of customer consumption of electricity.
There are off-peak time-of-use (TOU
) rate
s.
Peak demand may exceed the maximum supply levels that the electrical power industry
can generate
, resulting in power outage
s and load shedding. This often occurs during heatwaves when use of air conditioners and powered fans raises the rate of energy consumption
significantly. During a shortage authorities may request the public to curtail their energy use and shift it to a non-peak period.
s providing power to electrical grids for peak demand are called peaking power plant
s or 'peakers'. Natural gas
fueled power stations can be fired up rapidly and are therefore often utilized at peak demand times. Pumped storage type dams such as Carters Dam
are used to meet peak demand as well.
Product (business)
In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...
. In terms of energy use, peak demand describes a period of strong consumer demand
Supply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
.
Peak load
Peak demand, peak load or on-peak are terms used in energy demand managementEnergy demand management
Energy demand management, also known as demand side management , is the modification of consumer demand for energy through various methods such as financial incentives and education...
describing a period in which electrical power
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...
is expected to be provided for a sustained period at a significantly higher than average supply level.
Peak demand fluctuations may occur on daily, monthly, seasonal and yearly cycles. For an electric utility
Electric utility
An electric utility is a company that engages in the generation, transmission, and distribution of electricity for sale generally in a regulated market. The electrical utility industry is a major provider of energy in most countries. It is indispensable to factories, commercial establishments,...
company, the actual point of peak demand is a single half hour or hourly period which represents the highest point of customer consumption of electricity.
Off-peak
Peak demand is considered to be the opposite to off-peak hours when power demand is usually low.There are off-peak time-of-use (TOU
Tou
King Tou or Toi is the name of a king of Hamath, a city located in Syria. He is only mentioned in 2 Samuel 8:9-10 and 1 Chronicles 18:9-10.-Biblical text :9 Now when Tou king of Hamath heard how David had smitten all...
) rate
Rate
In mathematics, a rate is a ratio between two measurements, often with different units. If the unit or quantity in respect of which something is changing is not specified, usually the rate is per unit time. However, a rate of change can be specified per unit time, or per unit of length or mass or...
s.
Response
Electrical power industry
The electric power industry provides the production and delivery of electric energy, often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid connection. The grid distributes electrical energy to customers...
can generate
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
, resulting in power outage
Power outage
A power outage is a short- or long-term loss of the electric power to an area.There are many causes of power failures in an electricity network...
s and load shedding. This often occurs during heatwaves when use of air conditioners and powered fans raises the rate of energy consumption
Energy consumption
Energy consumption is the consumption of energy or power. It is covered in the following articles and categories:* World energy consumption* Domestic energy consumption* Fuel efficiency in transportation* Electric energy consumption* Electricity generation...
significantly. During a shortage authorities may request the public to curtail their energy use and shift it to a non-peak period.
Power stations
Power stationPower station
A power station is an industrial facility for the generation of electric energy....
s providing power to electrical grids for peak demand are called peaking power plant
Peaking power plant
Peaking power plants, also known as peaker plants, and occasionally just "peakers," are power plants that generally run only when there is a high demand, known as peak demand, for electricity.-Peak hours:...
s or 'peakers'. Natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
fueled power stations can be fired up rapidly and are therefore often utilized at peak demand times. Pumped storage type dams such as Carters Dam
Carters Dam
Carters Dam is an earthen embankment dam located south of Chatsworth in Murray County and west of Ellijay in the U.S. state of Georgia. The dam is 445 ft tall and is situated above the mouth of the Coosawattee River. The drainage area is 376 square miles .The dam took 15 years to build...
are used to meet peak demand as well.
See also
- Congestion pricingCongestion pricingCongestion pricing or congestion charges is a system of surcharging users of a transport network in periods of peak demand to reduce traffic congestion. Examples include some toll-like road pricing fees, and higher peak charges for utilities, public transport and slots in canals and airports...
- Demand shortfall
- Electricity marketElectricity marketIn economic terms, electricity is a commodity capable of being bought, sold and traded. An electricity market is a system for effecting purchases, through bids to buy; sales, through offers to sell; and short-term trades, generally in the form of financial or obligation swaps. Bids and offers use...
- Energy storageEnergy storageEnergy storage is accomplished by devices or physical media that store some form of energy to perform some useful operation at a later time. A device that stores energy is sometimes called an accumulator....
- Peak oilPeak oilPeak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. This concept is based on the observed production rates of individual oil wells, projected reserves and the combined production rate of a field...
- Price elasticity of demandPrice elasticity of demandPrice elasticity of demand is a measure used in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to a change in its price. More precisely, it gives the percentage change in quantity demanded in response to a one percent change in price...
- V2G