There are TWO solution sets available for Demand & Capacity Management:

♦  Demand Management through EMS
♦  Thermal Mass Capacity Management Software

Demand capacity management centers around the concept that the right resources can (and should) be utilized in both the right way at the right time in order to better align real and expected demand with a given business’s throughput.

With energy, capacity charges are the cost of ensuring the electric grid maintains reliability at times of highest demand.

For example, when a building needs to be cooled, other businesses and facilities on the same transmission grid will also likely need similar levels of electricity for cooling as well.  On very hot days, that electricity demand will typically be the highest.  So the utility company measures that building’s energy usage on those very hot days and then applies a “capacity tag” that reflects that energy usage. The higher the usage, the more that building will pay in capacity charges.

A Building Management System can be relatively simple, involving a sensor that triggers preset settings for heating and cooling, lighting, or appliance operation, or they can be highly sophisticated.

More sophisticated Building Management Systems can actually learn business operations, calibrate actions based on multiple inputs, and communicate directly with utilities to identify optimal times to purchase energy. These systems can also greatly improve the execution of demand response and capacity reduction.

♦  A capacity charge basically serves as insurance against power outages, which sometimes occur in times of high demand. The charges are based on peak hour usage costs, as established during a given year’s usage cycle. The price determined by one year’s usage figures is used to determine the following year’s capacity charges.

♦  Electricity capacity charges are among the most important costs for businesses to manage. To cut down on costs and increase the bottom line, it is crucial to know what a building’s capacity costs are and identify ways to bring them down.