Manufacturers in British Columbia navigate a complex energy landscape defined by an aging grid and unpredictable costs. For these businesses, managing operational expenses is a top priority. While many operations focus on total energy consumption (kWh), the key to effectively controlling energy costs often lies in a less-understood line item on a facility's utility bill: peak demand charges.

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Demand charges can account for a huge portion of your electricity bill, but with the right strategy, this large expense can turn into a valuable opportunity to improve operational efficiency. This article explains how your facility can use a battery energy storage system to cut costs, improve reliability, and prepare for future growth. 

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How can we reduce demand in peak periods?

To find the right solutions, we first need to understand what drives up energy costs for manufacturers in BC. 

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Understanding Demand Charges

What are demand charges? Simply put, demand charges aren’t based on how much total electricity you use in a month. Instead, they’re based on the single highest point of electricity your facility pulls from the grid at one time. 

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For many industrial plants, this one charge can be 30–70% of their entire monthly bill. Utilities like BC Hydro apply these charges to cover the cost of reserving enough capacity to meet that peak demand at any moment. Since that reserved power can’t be used elsewhere on the grid, the cost is passed on to the business.

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For industrial and commercial operators, addressing these short-term spikes is key to controlling long-term electricity costs. Learning to manage this peak is the first step to controlling volatile energy prices.

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The Risks of Relying on the Grid

Relying solely on the power grid creates three main challenges for businesses that want to grow and protect their profits.

• Volatile Costs: Peak demand charges make energy bills unpredictable and high, making it hard to budget for your operations.
• Operational Risk: Power outages can stop production, result in lost inventory, and even damage equipment. This makes strong industrial plant power reliability a must-have. 
• Growth Barriers: If you want to expand, add new machines, or electrify fleets, you might have to wait years and pay significant upfront costs for a utility upgrade. This can slow down your growth and innovation.
  
  

How can my facility control volatile energy prices?

The solution isn't just about using less energy; it's about using energy in a smarter way. A commercial battery energy storage system is a powerful asset that stores electricity and uses it intelligently to save you money and give you peace of mind. Here are three ways a BESS can change your facility’s relationship with energy.

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Strategy 1: Lower your monthly bill with peak shaving.

The most direct way a BESS saves you money is with a process called peak shaving. When your demand is about to hit a costly peak, the BESS releases stored energy to "shave off" that spike. By flattening these peaks, you directly lower the demand charges on your bill. This simple function has a huge impact on your energy bill.

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Additionally, the stored energy used to manage energy peaks can be drawn from non-grid assets. BESS products like the Luna BESS can be paired  with other energy sources, like solar, wind, or diesel generators, to further increase energy efficiency and independence.

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Strategy 2: Improve reliability with backup power.

Facilities can also utilize BESS for industrial backup power systems. In the event of a grid disruption, the system can switch over to support essential loads such as control systems, conveyors, or safety equipment. This helps maintain operational continuity, reduce scrap or spoilage, and protect both equipment and personnel during power disruptions.

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Strategy 3: Get more power for facility expansion.

Instead of waiting for utility infrastructure upgrades, a process that can take several years, a BESS allows you to get more power for facility expansion quickly and affordably. This removes major roadblocks, letting you add new equipment, pursue electrification targets, and other operational upgrades on your own schedule. 

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You can invest in growth without being held back by the grid. Better yet, there are powerful financial incentives available that answer the question of how to get funding for a BESS, making these projects more accessible by offsetting upfront costs.

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How do I get started with an energy storage solution?

For BC manufacturers, a battery energy storage system is a strategic investment in cost control, resilience, and growth. To better understand the project requirements, applications of BESS, and how to mitigate demand charges for commercial and industrial facilities, join our upcoming webinar Cut Your Manufacturing Facility's Peak Energy Costs in Half.

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Why should you consider Moment Energy's battery energy storage systems?

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Moment Energy is North America's leading EV battery repurposing company creating clean, affordable, and reliable battery energy storage systems (BESS) by repurposing electric vehicle batteries. Moment Energy works with major automotive companies, including Mercedes Benz Energy, to support circular economy goals and ensure their batteries are safely used in second-life applications before they are recycled. The team supports utilities, microgrids and commercial customers to improve grid reliability, power EV charging stations and reduce demand charges, all with a sustainable and performant BESS solution made from repurposed EV batteries.

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