Unlocking the Mystery of Electric Demand

For those new to the energy industry, understanding the concept of electric demand is crucial. While it's closely related to energy consumption, it's a distinct factor that plays a significant role in electricity costs, especially for commercial and industrial users. Let's break it down.

Demand vs. Consumption: What's the Difference?

It's common to confuse electric demand with energy consumption, but they aren't interchangeable.

Electric Demand is the rate at which electricity is being used at any given instant. It's measured in kilowatts (kW) and indicates the "load" on the electrical grid at that moment.
Energy Consumption is the total amount of electricity used over a period of time. It's measured in kilowatt-hours (kWh) and represents the overall quantity of electricity consumed.

To illustrate, imagine filling a swimming pool. The demand is how fast you're filling it (gallons per minute), and the consumption is the total gallons of water it takes to fill the pool.

Why Does Demand Matter?

Electric utilities must have the capacity to meet the highest demand placed on the grid at any instant. This requires them to maintain power plants and infrastructure that can handle these peak loads. To recover the costs associated with this, utilities often charge larger customers a demand charge in addition to the charge for total energy consumed.

Peak Demand: The Driver of Costs

Peak demand refers to the highest level of electricity demand recorded during a specific billing period. It's this peak that primarily determines demand charges.

Here's why it matters:

Even if your overall energy consumption (kWh) is reasonable, a high peak demand (kW) for even a short period can lead to substantial charges.
Utilities use peak demand to assess the necessary infrastructure and generation capacity required to serve their customers.

Managing Demand for Cost Savings

For businesses, managing and reducing peak demand is a key strategy for lowering electricity costs. This can involve strategies like:

Load Shifting: Distributing energy-intensive activities across different times of the day to avoid simultaneous peaks.
Energy Efficiency: Upgrading equipment and systems to reduce overall energy usage and demand.
Demand Response: Participating in programs where you reduce your demand in response to signals from the utility, often in exchange for incentives.

By understanding and actively managing electric demand, businesses can optimize their energy usage and achieve significant cost savings.

DemandQ's Intelligent Approach to Demand Mitigation

DemandQ employs a technology that optimizes how systems and appliances draw power from the grid, significantly reducing demand for our customers. Here's a breakdown of how it works:

Intelligent Energy Management Schema: DemandQ's system uses a combination of AI-driven predictive analytics and a patented energy management control schema (EMS) to optimize HVAC power and mitigate demand peaks.
Data-Driven Optimization: The system uses various data inputs, including historical operations, equipment specifications, weather conditions and forecasts, and thermostat setpoint ranges, to model a building's thermal envelope and load profile.
Predictive Modeling: Genetic algorithms are used to generate predictive models that calculate the maximum demand capacity needed for each building, adapting to local ambient weather conditions.
Real-time Control: EMS, the system's control hub, intelligently manages the cycling of electrical loads in a building in real time. It uses live sensor data from the building's automation system (BAS) to ensure compliance with predicted demand capacity and thermostat settings.

Unlocking the Mystery of Electric Demand

Demand vs. Consumption: What's the Difference?

It's common to confuse electric demand with energy consumption, but they aren't interchangeable.

Electric Demand is the rate at which electricity is being used at any given instant. It's measured in kilowatts (kW) and indicates the "load" on the electrical grid at that moment.

Energy Consumption is the total amount of electricity used over a period of time. It's measured in kilowatt-hours (kWh) and represents the overall quantity of electricity consumed.

To illustrate, imagine filling a swimming pool. The demand is how fast you're filling it (gallons per minute), and the consumption is the total gallons of water it takes to fill the pool.

Why Does Demand Matter?

Peak Demand: The Driver of Costs

Peak demand refers to the highest level of electricity demand recorded during a specific billing period. It's this peak that primarily determines demand charges.

Here's why it matters:

Even if your overall energy consumption (kWh) is reasonable, a high peak demand (kW) for even a short period can lead to substantial charges.

Utilities use peak demand to assess the necessary infrastructure and generation capacity required to serve their customers.

Managing Demand for Cost Savings

For businesses, managing and reducing peak demand is a key strategy for lowering electricity costs. This can involve strategies like:

Load Shifting: Distributing energy-intensive activities across different times of the day to avoid simultaneous peaks.

Energy Efficiency: Upgrading equipment and systems to reduce overall energy usage and demand.

Demand Response: Participating in programs where you reduce your demand in response to signals from the utility, often in exchange for incentives.

By understanding and actively managing electric demand, businesses can optimize their energy usage and achieve significant cost savings.

DemandQ's Intelligent Approach to Demand Mitigation

DemandQ employs a technology that optimizes how systems and appliances draw power from the grid, significantly reducing demand for our customers. Here's a breakdown of how it works:

Intelligent Energy Management Schema: DemandQ's system uses a combination of AI-driven predictive analytics and a patented energy management control schema (EMS) to optimize HVAC power and mitigate demand peaks.

Data-Driven Optimization: The system uses various data inputs, including historical operations, equipment specifications, weather conditions and forecasts, and thermostat setpoint ranges, to model a building's thermal envelope and load profile.

Predictive Modeling: Genetic algorithms are used to generate predictive models that calculate the maximum demand capacity needed for each building, adapting to local ambient weather conditions.

Real-time Control: EMS, the system's control hub, intelligently manages the cycling of electrical loads in a building in real time. It uses live sensor data from the building's automation system (BAS) to ensure compliance with predicted demand capacity and thermostat settings.

In essence, DemandQ's technology anticipates and manages power usage to minimize spikes in demand, leading to lower electricity costs for customers.