Peak load is the maximum demand on an electrical system, occurring during high usage times such as evenings and hot weather. Base load plants provide constant energy, while peak load plants are smaller and less efficient, running on more expensive fuels. Peak load pricing is used to cover costs, and users can reduce bills by shifting usage to off-peak times.
Peak load refers to the maximum possible load on an electrical system. It can refer to the immediate load on a single circuit or a high sustained load on a feeder or power plant. Peak load also represents the energy demand at a given time or season.
Electricity generators have to cope with peak loads at times when the most people are using electricity. An example of this is in the late afternoon when most people come home from work and start using electricity to power appliances, cook, and light their homes. Peak load also occurs in hot weather because most air conditioning systems run on electricity. Peak power load problems are less common in extremely cold conditions because heating systems use a variety of fuels such as gas, oil, and wood, in addition to electricity.
Electricity cannot be stored like oil or gas. Electricity must be produced as needed. As a result, electricity producers are responding to demand by building structures to specifically address peak loads.
Power plants that produce the majority of an area’s energy needs on a regular basis are referred to as base load plants. These facilities involve huge capital investments, are built for the long term, and run on process-intensive but low-cost fuels such as coal and nuclear power. Baseload plants are designed to operate constantly and produce a constant flow of electricity. These facilities take longer to be online and offline for maintenance and repairs.
Peak load power plants are designed to operate only when demand exists. They are generally smaller and less efficient than base-load plants and run on more expensive fuels such as natural gas. The startup and shutdown process of these plants is faster. Small hydroelectric plants can also be used for this purpose because they are also easier to stop and start. Electricity producers need to deliver power in response to immediate demand to avoid problems such as brownouts, and surge generating plants are one way to meet this demand.
To cover the cost of peak-load electricity generation, electricity producers sometimes charge peak-load pricing where businesses are charged a higher rate for electricity during certain periods of time. If large electricity users, such as producers, can adjust production schedules to run during off-peak hours, they can reduce their costs substantially. Some electricity suppliers include residential customers in peak load prices. In this case, residential users can reduce their bills by shifting the use of appliances such as dryers and dishwashers to off-peak times and by changing thermostat settings to minimize peak-hour use.
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