Peak energy shaving: how it saves you money and helps lower emissions

As Atlantic Canada enters its coldest season, there are still ways homeowners and businesses can save money and contribute to reducing greenhouse gas emissions when electricity demand hits its peak.

Peak demand occurs when homes and businesses use the most electricity at the same time, typically on the coldest days and during certain times of day. There are challenges for utilities to maintain reliability with the increase in electricity demand.

By shaving peak demand, fewer fossil fuels are burned, and less electricity will need to be imported. Thereby, improving reliability of the grid, saving money for customers, and reducing greenhouse gas emissions (GHGs).

What is peak demand?

The demand for electricity differs throughout the day as well as by season, which creates peaks and valleys for power generation. In the mornings, demand increases as homeowners wake up and use energy to get ready for their day. During the afternoon, demand evens out, but increases again in the evening as homeowners finish their workday and operate different household appliances, such as dishwashers and laundry machines.

In New Brunswick, electricity demand is much higher in the winter months to heat homes and businesses compared to in the summer; approximately twice as high. Since about 60% of homes and businesses are heated with electricity, the extreme cold days put a lot of demand on the grid, which means that utilities must use the most expensive and least green energy to meet the demand.

For example, a spokesperson from Saint John Energy noted in 2021 that “during the peak, we tend to see almost double the CO₂ emissions due to the fact that we have to use fossil fuels to be able to produce enough energy for the peak.”

Source: NB Power’s 2-Peak Challenge

In 2023, peak demand was typically in the mornings of the coldest days and was at its highest in February 2023. Heading into February of 2024, it’s important to understand the ways in which customers can help lower demand peaks for themselves to reduce costs while also reducing the amount of CO₂ emissions produced.

How can customers help lower demand peaks?

Fortunately, customers can help utilities reduce demand peaks to help ensure reliability of the grid, as well as lower costs and emissions with behavioural changes. These changes include:

Temporarily lowering the temperature of your electric home heating system and wearing warmer clothing.
Being aware of the best times to shower, and if you have an electric water heater, limiting the use of hot water as much as possible.
Shifting non-essential activities, such as clothing dryers and dishwashers, to non- peak times; and,
Unplugging unnecessary appliances and lights, or charging your vehicle in the middle of the day (if customers have an EV or hybrid)

By customers focusing on these tips, energy can be conserved, and the grid can maintain reliable while also minimizing billing costs and reducing GHGs.