Smart Demand Control

Peak demand management does not necessarily decrease total energy consumption, but could be expected to reduce the need for investments in networks and/or power plants to meet peak demands. On average, in California, charges for peak demand may account for between 40% to 70% of the total annual bill. The highest percentages occur for accounts that have high daytime peak demands but low kWh usage (e.g., inefficiently air conditioned office buildings).

What is a demand charge?

Demand charges are based on the highest 15-minute average usage recorded on the demand meter within a given month. If your facility tends to use a lot of power over short periods, your demand charges will comprise a larger part of your bill. If you use power at a more consistent rate throughout the month, your demand charges will generally make up a smaller part of your bill. Demand charges cover electric utility companies’' fixed costs of providing a certain level of energy to their customers. Energy costs can be found in the variable costs portion of the bill. The challenge is that utility companies have to maintain enough capacity to satisfy all their customers' energy needs at once. Utility companies have to maintain enough power plants to do so, and this requires them to keep a vast array of expensive equipment on constant standby, including transformers, wires, substations, and generating stations.

How does SDC reduce demand?

Utility companies determine the maximum demand (kW) rate of its customers by remotely measuring in 15 minute intervals from the meter, which accumulates to about 2800 – 3000 measurements (in a month?). The monitoring device in the SDC will be reading the same maximum demand rate as the utility company, and a goal will be set according to demand monitoring to decrease the maximum demand rate. Then, the SDC's proprietary algorithm programmed into a Programmable Logic Controller turns ON/OFF the preset priority or main equipment/devices – mainly the Packaged Unit A/C system - to avoid peak demand.

SDC System Configuration


  • Enables to visualize energy consumption
  • Enables to control major electrical equipment and operation processes
  • Payback period: Less than 2 years overall

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