Low-cost, high-energy batteries are beginning to do some really cool things such as replace gas peaker plants, power mainstream vehicles and kick-start electric aviation. Here’s another application to add to the list: slash electric vehicle (EV) demand charges.
Say what? Demand charges are a fee that a utility charges for electricity use, based on the highest rate at which the electricity is drawn during a monthly billing cycle. These are fees beyond just the cost of electricity, and they’re thought of as paying for the overhead of the grid gear.