At a recent energy conference and tradeshow, ESX2108, among other interesting presentations, one caught my attention – a serious approach offered by Peak Power Inc to reducing Global Adjustment charges by switching demand during peak hours to huge batteries.
They consider peak chasing a mathematical game, and rightly so. Peak Power uses big data and machine learning to recommend time to engage on-site batteries to shave peaks.
With all the smarts they estimate that their solution captures 90% of possible value of demand reduction. This year Peak Power has successfully covered all 5 peaks, though it took engaging batteries 21 times per year.
Several other companies offer similar solutions on the Ontario market.
Ducking demand peak hours has become a serious mathematical task
With growing number of participants, provincial peak demand does not follow weather anymore, it follows what people think the weather will be and how other players will react.
We are approaching time when provincial demand will behave like stock market: short term forecast will not follow fundamentals, but rather what each player thinks that other players will do.
It’s a game now. This year two peaks happened at 6 pm during January weekend. Who would expect this just a couple of years ago??
Companies that expect to succeed in this game by watching Weather Network are destined to pay dearly.
Disclosure: GreenQ Partners has no interest in Peak Power.