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Peak Demand In Buildings & Demand Response

1.0 Hour


Buildings account for 40% of total energy demand and demand does not follow a predictable pattern, especially for commercial and industrial facilities. It is costly and preferred to store electricity, which is why power companies choose to deliver their generated energy immediately in order to reduce the additional expense of storing electricity.

To accomplish this goal, utilities encourage building owners to use grid energy more uniformly, rather than demanding most of the needed energy at certain times of the day. They use such strategies, such as pricing electricity according to the time of the day and the season of the year. There are many advantages of reducing power peaks for both building owners and utilities.

Demand management offers a variety of environmental benefits. These include reducing emissions, reducing urban air pollution, lower total usage, responsiveness to fluctuating supply, reducing transmission losses, and restricting the capital and land-clearing required for infrastructure to meet peak demand.

Learning Objectives

  • Learn what peak demand is, and why is it important for the buildings and utilities as demonstrated in LEED V4 O+M EA Credit: Advanced Energy Metering.
  • Learn Why LEED V4 BD+C and LEED V4 O+M rating systems encourage participation in demand response programs.
  • Learn how LEED V4 BD+C and LEED V4 O+M projects can achieve LEED v4 EA Demand Response credit points.
  • See how Demand response programs are put into use by reading a few case studies.