What Is the Difference between Maximum Demand and Contract Demand

As described below, allows us to optimally manage contract performance: an example of the monthly energy consumption and (blue) bills of a (other) business customer based on examples of green button data imported into Aurora Solar`s solar design and sales software; The portion of the invoice that consists of a claim fee is shown in light blue. As we have progressed, the objective of maximum demand control is not to exceed the contractually agreed service limit. To archive this goal, we recommend that you install a system that can separate non-critical loads over different periods of time and avoid connecting loads at the same time to reduce instantaneous performance. Utilities charge an on-demand fee based on the maximum amount of electricity a customer has consumed at any interval (typically 15 minutes) during the billing cycle. How to calculate the efficiency of the diesel generator? What information is needed to identify diesel generator sets running with 1000 kVA and 180 kVA? New MDC series to control and control maximum demand The main objective of the new CIRCUTOR MDC series is to control and control the maximum demand of a factory. To achieve this goal, the device connects and disconnects certain (non-critical) loads to ensure that the maximum demand is never greater than the contracted power, thus avoiding surprises in the electricity bill. In addition, the extended MDC 20 series allows tariff control to adjust charges for connection in lower price periods, thus avoiding high consumption due to the simultaneity of charges during periods of high tariff prices. The contractual request is the request where we enter into contracts with the government so as not to exceed the value of the contractual request. The maximum demand is the demand at which we use the maximum amount of electricity in a certain period of time. Nevertheless, it is important to understand this element of customer billing in order to understand what part of the customer`s costs solar energy can compensate.

It is necessary to understand the different terms that appear in a utility bill to know where we can act to reduce them. Of all the concepts, the most important are: the concept of active energy, the concept of reactive energy and, in some countries, the period of maximum demand, which is the last topic of this article. To determine the on-demand charge for a given month, the maximum demand for electricity is multiplied by the charge rate of the current supply tariff. While the exact billing approach varies by utility, some fee structures include several types of on-demand charges, with higher fees during peak periods and lower fees during „partial peaks“ or „off-peak“ (usage time rates). For customers whose ancillary costs they include, application fees can contribute significantly to monthly electricity bills. For the specific case of Spain, depending on the maximum value of the application, the penalty may include a very significant increase in the invoice, as described in the table below: Regardless of the reasons for the application fees and their effectiveness, they do not disappear, so it is important to have a good understanding of how they work. Understanding on-demand charges allows solar installers and customers to accurately assess how much of a monthly bill can be offset by solar power and provides a starting point for exploring additional options to reduce peak demand. As a solar energy professional, if you want to accurately articulate the value that a solar system provides to a business customer, it`s important to understand the application fees and their impact on your customer`s electricity bill. As the graph shows, the user pays a 20% increase in the maximum duration of the request if the maximum value of the request exceeds 10% of the contractually agreed service. However, if the maximum value of the request exceeds 20% of the contractually agreed service, the user pays a 50% increase in the maximum duration of the request. The contract requirement is the total power (KW or KVA) required by customers and a written agreement with the supplier, while the maximum demand is the peak load recorded for intervals of a certain time such as 15 minutes or 30 minutes. This is the calculation of the maximum demand for a defined interval (usually every 15 minutes).

Once the data is recovered, one minute wait to start a new calculation of 15 minutes (this time may vary depending on the country). This means that every minute (this time may depend on the meter), a maximum demand value of the last 15-minute period is recorded. These 60 registers are measured every hour. Fidel Marquez, ComEd`s senior vice president, discussed in 2015 comments to Midwest Energy News a proposal to apply application fees to Illinois residential customers, summarizing the reasons for the demand to „correct the inequality that can cause low-consumption customers to subsidize high-consumption customers.“ He also noted that „the cost of providing electricity is determined by the demand customers put into the system whenever they need it, and ComEd builds and maintains its delivery system – masts, wires and transformers – to meet everyone`s maximum energy needs.“ Due to the constant increase in the price of electricity, all types of customers must find new formulas to reduce their electricity bills. To do this, we present our new power management system to control maximum demand: MDC series (MDC 4 and MDC 20). Unfortunately, when it comes to application fees, solar power doesn`t offer consistent cost savings. Because solar power generation varies depending on weather conditions and time of day, periods of high solar energy do not always coincide with the times when a building has its highest electricity needs. This means that solar customers cannot rely on their solar systems to reduce application costs. A random rainstorm at a time when the plant is consuming energy at the highest rate during the month would result in as high an application fee as before the solar energy was installed. In addition, MDC 4 has an internal power analyzer to calculate the maximum demand (it also records electrical parameters such as voltage, current and power). Whenever the MDC 4 detects excess power, multiple lines with non-critical loads are disconnected, automatically reducing instantaneous power. This ensures that the system does not exceed the maximum demand limit and thus avoids penalties for the next electricity bill.

I think the length of time the maximum performance is used is also important in defining the contractual demand. In the state of Maharashtra, the maximum demand for a continuous duration of 30 minutes is recorded in the meters and charged as a contractual requirement. More complex tariff structures may include different application rates at different times (e.g. B peak and off-peak hours). For example, a utility might set peak hours as 6 a.m. .