Glossary

Peak Demand

Peak demand is the highest level of electricity demand recorded over a given period, often used to determine capacity charges or infrastructure requirements.

Definition

Peak demand is the maximum instantaneous demand recorded during a billing period or defined time window. Many commercial tariffs include a capacity or demand charge based on this peak figure, meaning a single brief spike can materially affect cost regardless of average consumption.

Why It Matters

Reducing peak demand — through load shifting or equipment staggering — can lower costs even without reducing total energy consumption, since many tariffs charge specifically for peak capacity.

How ecolyptus Helps

ecolyptus flags peak demand events per site, helping identify load-shifting opportunities that reduce demand-related charges.