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Base Load and Peak Load: understanding both concepts

Author: Evelyn

Mar. 07, 2024

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Tags: Energy

What are Base Load and Peak Load?

Load, in electrical engineering, is the amount of current being drawn by all the components (appliances, motors, machines, etc.).Load is further categorised as base load and peak load depending upon the nature of the electrical components connected. As you may be familiar, all electrical appliances at your home do not run at all times.
  • A toaster or microwave oven may be used for a few minutes,
  • A television or computer may be used for a few hours
  • Lighting in the house is only required during the evening and so on.
There are several appliances which keep running at all the times, no matter what. The refrigerator, for example, has to be plugged in at all the times. Another such example are the heating, ventilation and cooling systems in the house (HVAC system).

, in electrical engineering, is the amount of current being drawn by all the components (appliances, motors, machines, etc.).Load is further categorised as base load and peak load depending upon the nature of the electrical components connected. As you may be familiar, all electrical appliances at your home do not run at all times.There are several appliances which keep running at all the times, no matter what. The refrigerator, for example, has to be plugged in at all the times. Another such example are the heating, ventilation and cooling systems in the house ().

Peak Load and Base Load defined

Base load is the minimum level of electricity demand required over a period of 24 hours. It is needed to provide power to components that keep running at all times (also referred as continuous load).Peak load is the time of high demand. These peaking demands are often for only shorter durations. In mathematical terms, peak demand could be understood as the difference between the base demand and the highest demand.Now going back to the examples of household loads: microwave oven, toaster and television are examples of peak demand, whereas refrigerator and HVAC systems are examples of base demand.

A broader perspective of understanding these concepts

Now on a broader perspective, it could be assumed that the electrical grid is a big household. Under normal circumstances, the power required by the electrical grid is fairly constant during various period of the day.This constant power, which is required at all times, is called the base loading. But during a special event, like the final match of World Cup, the demand will be more, as a lot of people will watch TV. This short, high demand period is considered to be a peak loading.Base Load and Peak Load

Base Load and Peak Load power plants

Power plants are also categorised as base load and peak load power plants.

Base Load Power plants

Plants that are running continuously over extended periods of time are said to be base load power plant.The power from these plants is used to cater the base demand of the grid. A power plant may run as a base load power plant due to various factors (long starting time requirement, fuel requirements, etc.).Examples of base load power plants are:
  1. Nuclear power plant
  2. Coal power plant
  3. Hydroelectric plant
  4. Geothermal plant
  5. Biogas plant
  6. Biomass plant
  7. Solar thermal with storage
  8. Ocean thermal energy conversion

Peak Load Power plants

To cater the demand peaks, peak load power plants are used. They are started up whenever there is a spike in demand and stopped when the demand recedes.Examples of gas load power plants are:
  1. Gas plant
  2. Solar power plants
  3. Wind turbines
  4. Diesel generators

is the minimum level of electricity demand required over a period of 24 hours. It is needed to provide power to components that keep running at all times (also referred as).is the time of high demand. These peaking demands are often for only shorter durations. In mathematical terms, peak demand could be understood as the difference between the base demand and the highest demand.Now going back to the examples of: microwave oven, toaster and television are examples of peak demand, whereas refrigerator and HVAC systems are examples of base demand.Now on a broader perspective, it could be assumed that the electrical grid is a big household. Under normal circumstances, the power required by the electrical grid is fairly constant during various period of the day.This, which is required at all times, is called the base loading. But during a special event, like the final match of World Cup, the demand will be more, as a lot of people will watch TV. This short, high demand period is considered to be a peak loading.Base Load and Peak LoadPower plants are also categorised as base load and peak load power plants.Plants that are running continuously over extended periods of time are said to be base load power plant.The power from these plants is used to cater the base demand of the grid. A power plant may run as a base load power plant due to various factors (long starting time requirement, fuel requirements, etc.).Examples of base load power plants are:To cater the demand peaks, peak load power plants are used. They are started up whenever there is a spike in demand and stopped when the demand recedes.Examples of gas load power plants are:

Which companies can benefit from Peak Load Pricing?

Companies that have seasonal demand or non-storable commodities can benefit from this strategy of electricity, transport, security, etc.

How can a company apply Peak Load Pricing?

A company can apply peak load pricing by charging more during the peak season and lowering prices during low demand. It helps ensure that the supply is adequate in terms of demand.

What is the major benefit of Peak Load Pricing?

The primary benefit behind the Peak Load Pricing strategy is to maximize profit. Also, it helps sustain the demand without increasing the infrastructure by shifting or avoiding consumption with higher prices.

What is a major drawback of Peak Load Pricing?

Peak Load Pricing depends on the correct predictions by the managers. If these estimates are incorrect, it can render the entire exercise wasteful.

What can be a peak load pricing example?

Electricity demand is often higher during the summer season. The companies can charge higher per unit to earn more and entice people to conduct their electricity-heavy exercises during the night. It allows for an adequate supply and increased profit for the company and customers.

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