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What are capacity tariffs and how do they affect the business?

Capacity tariffs are a crucial component within the Swedish electricity network system, aimed at managing consumption peaks and promoting a more efficient use of the electricity grid. For electricity consumers, especially within the industrial sector, it's essential to understand how capacity tariffs work and how they can impact costs. Let's delve into the topic and explore potential solutions to reduce unnecessary consumption peaks. This not only leads to cost savings but also helps businesses operate in a more sustainable manner. 

Why are capacity tariffs implemented? Capacity tariffs are a response to the need to avoid overloading the electricity grid and reduce the necessity of expanding grid capacity. By pricing electricity consumption based on maximum capacity, capacity tariffs incentivize electricity consumers to reduce their consumption peaks, thereby contributing to a more sustainable and efficient use of the electricity grid.

Different capacity tariffs: In Sweden, two common types of capacity tariffs are usually applied: capacity fee and capacity surcharge. The capacity fee is based on the highest power consumed during a specific period, with varying tariffs depending on the time of day and the grid's load. Capacity surcharges might apply to electricity consumers with very high power demand or those exceeding a threshold value for power consumption.

Managing electricity consumption

For businesses and larger electricity consumers, it's crucial to monitor and manage their power consumption to avoid unnecessary expenses. By implementing energy efficiency measures and spreading out electricity consumption over time, companies can minimize their consumption peaks and reduce their costs associated with capacity tariffs.

Implement energy monitoring and become more efficient

A key factor in optimizing electricity consumption and managing capacity tariffs is to implement energy efficiency measures. By identifying and addressing inefficiencies in the company's processes and systems, it's possible to reduce overall power consumption and consequently avoid high costs associated with capacity tariffs.

With our DAZOQ EI system, you can reduce unnecessary peak loads and work more sustainably in your operations. Measurement is knowledge, and if you don't measure to assess how they appear, how can you improve and eliminate them?  

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