Peak Shaving is an energy management strategy where a facility (like a factory, commercial building, or even a home) intentionally reduces its electricity consumption during short periods of high demand, known as "peak demand."

The goal is not to eliminate energy use, but to strategically "shave" the top off the highest points of consumption. This is done to avoid steep financial penalties from utility companies and to improve the stability of the electrical grid.

Peak Shaving is a proactive financial and operational strategy that reduces electricity costs and supports grid reliability by lowering a facility's maximum power demand during critical periods. It is a cornerstone of modern energy management and a key application for the growing battery storage industry.