The service price for 15 minutes: What does that mean?

Understanding the demand charge in the electricity bill

A central component of a company’s electricity bill is the demand charge. This price reflects the costs for the provision of the maximum required electrical power by the electricity supplier. The capacity price is determined by taking the highest capacity called up in a 15-minute period as the basis for calculating the price. It is irrelevant whether this peak output occurred regularly or only once. The capacity price is therefore seen as an indicator of the maximum capacity that the supplier must maintain for a consumer.

This can result in high costs for companies with irregular electricity consumption or production peaks. This is because each time the highest peak capacity measured to date is exceeded every 15 minutes, the capacity price for the entire year can increase. Consequently, the efficient handling of peak loads becomes an important starting point for reducing costs.

Companies can take various measures to minimize the peak load and thus the power price. Optimizing work processes and using energy-efficient machines are the first steps towards reducing peak loads. There are intelligent control systems specifically for the compressed air sector that help to reduce energy consumption and the associated peak loads. Such systems are able to optimize the consumption of compressed air during operation and thus avoid peak loads.

The aim is to keep the power peaks as low as possible in order to positively influence the power price and thus reduce electricity costs.

The importance of 15-minute power intervals

Energy billing for companies is heavily dependent on the so-called 15-minute power intervals. These short time windows are crucial because the peak energy consumption within these quarter hours determines the power price for the billing period. The determination of precisely these peak values and their recording are decisive for the level of energy costs.

Precise monitoring of the 15-minute intervals enables companies to gain an insight into consumption structures. Specialized measuring devices and intelligent software solutions, such as the AnalyzAir® offered by WRS Energie, record the relevant data precisely and provide important information that can be used to initiate targeted measures to optimize consumption.

The fact that power peaks determine the power price for a longer period of time makes it all the more important to minimize consumption peaks within these 15-minute intervals. Precise planning of energy-intensive processes outside these critical time windows, known as load shifting, can help to reduce costs.

Effective operational management aims to closely monitor consumption peaks and, where possible, smooth them out. This means that analyzing and controlling the 15-minute intervals plays a key role in energy cost management.

How peak loads influence energy costs

Peak loads in energy consumption have a direct impact on a company’s energy costs. These peaks are brief moments in the operating process when energy consumption rises dramatically. These peaks require the energy supplier to provide high levels of power at all times, which in turn results in additional costs for companies.

As the power price is based on the highest power used, every peak load, even if it occurs at short notice, results in increased power costs. Even a one-off event therefore has a long-term impact on energy billing, as the grid usage fees are adjusted accordingly. This creates a financial incentive to make energy consumption more even in order to avoid such peaks.

In the context of compressed air systems, such load peaks can occur particularly during peak production times. Demand-oriented and forward-looking control of compressors and other energy-intensive components therefore plays a decisive role in cost-optimized operation.

Strategies for reducing the demand charge

Given the significant impact of peak loads on the demand charge, companies are developing strategies to optimize their energy consumption. An important goal is to reduce energy demand during the critical 15-minute window. Increased energy efficiency and intelligent energy management are key to this.

One frequently used method is peak shaving, in which companies specifically try to reduce their peak loads. This can be achieved through the use of energy storage systems such as batteries, which supply additional energy when required and thus reduce the amount drawn from the grid. Alternatively, or in addition to this, the production load can be controlled in order to operate large consumers when the grid is under less strain.

Innovative companies are also using data analysis and artificial intelligence to predict and adjust energy consumption accordingly. Systems such as WRS Energie’s AnalyzAir® are able to identify consumption patterns and optimize the use of compressed air systems accordingly. Technologies such as peak load monitors can also help to regulate power peaks and thus the associated costs.

Another step towards reducing the price of power is to invest in energy-efficient technologies and machines that generally consume less energy. This combination of innovative control technology, forward-looking energy planning and efficient use of technologies can significantly reduce power peaks and therefore energy costs.

The role of compressed air systems in energy management

Compressed air systems play an important role in industrial energy management, as they are among the largest energy consumers in many companies. Efficient design and control of these systems is therefore essential in order to reduce overall energy consumption and, in particular, power peaks.

By using modern control and monitoring systems, compressed air systems can be controlled in such a way that they precisely meet demand without wasting energy unnecessarily. Intelligent control systems, such as those offered by WRS Energie with the AnalyzAir®, can react in real time to changes in compressed air demand and thus increase the efficiency of the entire system.

Monitoring energy consumption also makes a significant contribution to identifying inefficiencies and potential savings. By continuously recording and analysing the operating data of compressed air compressors and distribution networks, weak points can be identified and optimized.

Proactive management of compressed air systems is therefore an effective approach to reducing energy consumption in the long term, thereby reducing peak performance and the associated costs.

Measurement and control of power peaks with AnalyzAir®

The AnalyzAir® tool from WRS Energie is an advanced system for measuring and controlling power peaks that has been specially developed for compressed air systems. It uses artificial intelligence to analyse the energy consumption of compressed air systems and derive potential for optimization.

The software continuously records the consumption data and compares it with the company’s performance limits. Precise measurements can be used to identify the exact moments when performance peaks occur. Based on this information, AnalyzAir® not only enables a real-time response, but also a predictive adjustment of compressed air production to actual demand.

Seamless integration into existing energy management systems or compressor control systems makes AnalyzAir® an efficient tool for companies that want to minimize their power peaks. The visual presentation of the analysis results also makes it easier to make the right decisions for cost-saving operational management.

Companies that use AnalyzAir® benefit from improved transparency of their energy consumption and targeted control of their compressed air systems, which makes a significant contribution to reducing the price of performance.

Peak shaving and load shifting as cost optimization

The terms peak shaving and load shifting refer to effective methods within load management that aim to reduce or smooth out the energy consumption peaks that are relevant for power charges. Significant savings in energy costs can be achieved through targeted adjustments to the operating process.

Peak shaving is the targeted reduction of peak loads at times of high energy demand. This can be achieved, for example, by briefly switching off non-critical consumers or using energy from alternative sources such as battery storage. This practice helps to reduce the measured peak load and therefore the demand charge.

Load shifting, on the other hand, focuses on shifting the consumption of energy-intensive processes to times when there is a lower overall energy demand in the grid or when the electricity price is lower. This can mean, for example, shifting production processes to night hours or planning the use of energy storage systems in order to minimize the load on the grid at expensive peak load times.

The strategies of peak shaving and load shifting are not only of central importance for improved energy management, but also support flexible and future-oriented operational management in the course of the energy transition.

Calculation example for demand charges and grid usage fees

A concrete calculation example helps to make the influence of load peaks on demand charges and grid usage fees more tangible. Let’s assume a company has a constant power consumption of 4,000 kW and the associated power price is EUR 50 per kW and year. This results in annual costs of 200,000 euros.

Power consumption (kW)	Service price (€/kW/year)	Annual costs (€)
4.000	50	200.000

If an additional load peak of 500 kW occurs within a 15-minute interval, the annual costs increase by EUR 25,000, as the grid usage fees are adjusted to the new maximum power consumption. The total costs therefore rise to 225,000 euros.

This example illustrates that even short load peaks over the course of a year can result in considerable additional financial burdens.

Technologies to avoid peak loads

Various technologies are used to avoid cost-intensive peak loads. These include electricity storage systems and peak load monitors in particular, which contribute to more effective load management.

Electricity storage systems, such as battery storage systems, can supply short-term energy to absorb peak loads. The energy is loaded into the storage system at more favorable times and is available when needed, i.e. precisely when a peak load is imminent. This reduces the amount of energy drawn from the grid at peak times, which can have a positive impact on the power price.

Peak load monitors are another important instrument. These devices continuously monitor energy consumption and intervene to regulate it by temporarily shutting down certain systems or machines or activating the energy supply from a connected electricity storage system when a peak load is imminent. The precise regulation of power peaks takes place every quarter of an hour.

With the increasing integration of renewable energy sources, combined heat and power (CHP) systems are also becoming increasingly important, as they can react flexibly to energy demand and reduce the load on the grid.

The use of these technologies enables companies to reduce energy costs by optimizing the power price through the efficient design of load profiles and the avoidance of peak loads.

The impact of the energy transition on the demand charge

The ongoing energy transition poses new challenges for companies’ energy management. The increasing share of renewable energies is leading to volatile energy prices and requires greater flexibility in energy consumption.

This also has an impact on the demand charge, as flexible adjustment of consumption can be rewarded in future. In order to do justice to the changed conditions, reforms in the area of grid usage fees are being discussed, which should not burden flexible consumers with high demand charges, but rather promote their adaptability.

Associations such as the German Renewable Energy Federation (BEE) are campaigning for companies that actively manage their consumption and thus contribute to stabilizing the electricity grid to be given financial relief. Such a change in regulation would create a further incentive to invest in technologies that facilitate the management of peak loads.

In a sustainable energy future, the demand charge could thus be seen not only as a cost factor, but also as an incentive system for intelligent and flexible energy use.

Conclusion: Efficient use of compressed air to reduce the price of services

Reducing the power price through the efficient use of compressed air is an exemplary approach to cost savings and energy efficiency in industry. Modern control technologies such as AnalyzAir® from WRS Energie support companies in optimally managing their compressed air systems and smoothing out energy consumption.

The resulting reduction in energy peaks has a direct impact on the performance price and leads to a noticeable reduction in costs. By incorporating measures such as peak shaving and load shifting, energy demand is not only covered but also intelligently adapted to the grid and the price structure.

All of these factors – efficiency in use, advanced technologies and a conscious approach to energy consumption – make a decisive contribution to reducing the power price. Companies that invest in appropriate systems and processes can thus sustainably optimize their operating costs in the course of the energy transition and beyond.

Frequently asked questions: Power price in the energy bill

What is the demand charge in the electricity bill?

The demand charge is a part of the electricity bill for commercial customers that is based on the highest power measured over a defined 15-minute interval within a billing period. It covers the costs for the provision and maintenance of the required grid capacity by the electricity supplier.

How are 15-minute intervals taken into account in electricity billing?

The energy suppliers record the peak load, i.e. the highest power consumption of a customer, in the 15-minute intervals. The highest measured peak is used to determine the power price for the entire billing period.

What impact do peak loads have on energy costs?

Peak loads can significantly increase energy costs as they influence the demand charge. The highest peak load measured in a 15-minute interval can lead to an increase in the demand charge for the entire billing period.

How can companies reduce their peak loads?

Companies can reduce peak loads through energy efficiency measures, load management, peak shaving and load shifting. They use technologies such as energy storage, peak load monitors, CHP plants and intelligent control systems.

What advantages does an intelligent control system like AnalyzAir® offer?

Intelligent control systems such as AnalyzAir® from WRS Energie can use artificial intelligence to analyse compressed air-specific measurement data, predict and optimize peak loads in order to reduce the power price and lower energy costs.