Record-setting power consumption is visible in states across the country

September 10, 2015

Commercial facilities consume massive amounts of electricity annually. As a trend, this surge in energy consumption across the country has lasted for several decades - the U.S. Energy Information Administration pointed out that consumption is 13 times greater in 2013 than it was in 1950. Collectively, commercial facilities are responsible for 35 percent of that consumption.

Space cooling is one of the leading factors behind this commercial energy use, so facility managers who are interested in managing their electricity costs should focus on improving their buildings' HVAC performance. Given that electricity use has risen steadily, it makes sense to anticipate even greater energy use worldwide and subsequently higher rates for customers going forward as population grows.

A closer look at the locations where this consumption is ramping up most rapidly and the high financial costs of peak demand reveal why thermal energy storage is such a fitting solution for commercial facilities.

States across the country seeing greater strain on their grid
The summer has brought with it heat waves and subsequent influxes of energy consumption. In climates that routinely experience sunny weather, this trend has been even more visible.

Temperatures in Phoenix, for example, broke several records for hottest high temperatures during the month of August. Some locations approached 119 degrees Fahrenheit during the warmest part of the day. Arizona residents responded by turning up the dials on their air conditioners, and a local utility Salt River Project saw record-breaking peak demand numbers as a result. Aug. 14 marked the state's new all-time record at 6,808 megawatts, a jump from the previous record of 6,716 megawatts set during July of 2014.

Texas, Arizona's neighbor in the Southwest, has experienced similar jumps in energy use as a result of this summer's heat wave, reported the Houston Chronicle. Several days of record-breaking heat impacted the state in July. Texans responded by cranking up the air conditioners in commercial and residential spaces, pushing peak demand toward record-breaking numbers. According to data collected by the Electric Reliability Council of Texas, all-time peak demand in the state was measured at 68,305 megawatts in August 2011. The state saw peak demand hit 67,624 megawatts just last month, suggesting that the state's growing adoption of renewable energy like wind power has not done much to lower peak electrical demand.

High rates of energy consumption are also causing problems for communities outside the Southwest. In Florida, for instance, summer heat waves have encouraged the populace to increase the use of their air conditioners. Notably, the state predicts that energy costs are expected to increase with demand despite the fact that the community had sufficient generation capacity to meet this demand. On the other side of the U.S., electricity demand has reached a six-year high in Hawaii. Already forced to deal with a delicate balance of electricity generation and demand due to the island's geographic limitations, Hawaiian utilities have turned to asking customers to actively limit energy consumption as a means of taking pressure off the grid.

Higher use translates to steeper peak demand rates
Higher temperatures often translate to inflated cooling costs, and much of the reasoning behind this trend revolves around peak demand. As noted before, commercial cooling activity sees an increase each summer. Electricity use increases the most during the middle of the day, when temperatures are at their hottest and interiors are most uncomfortable. Diverting and distributing electricity across the grid becomes considerably more expensive when entire communities ramp up energy use all at once. As a result, the cost of electricity for consumers is noticeably higher during these periods of peak demand.

Buildings consume energy cost-effectively with thermal energy storage
Companies can circumvent much of the extra costs and hassles associated with peak demand rates by changing the way that their facilities use and consume electricity. The Energy Storage Association highlighted thermal energy storage as a key solution that facilities can use to limit energy consumption when rates are at their highest.

Peak demand management is often achieved by deploying thermal energy storage solutions designed to freeze water into ice, such as CALMAC's IceBank energy storage tanks. The ice made at night is used to cool building occupants during the day. As a result, facilities can minimize energy consumption during peak times and significantly reduce the cost of electricity consumption, even as electricity use continues to increase.