page_title: Smart grid
section_title: Peak curtailment/leveling and time of use pricing
hierarchical_section_title: Smart grid / Features of the smart grid / Efficiency / Peak curtailment/leveling and time of use pricing
caption_attribution_description: English: The case of smart charging
context_page_description: A smart grid is an electrical grid which includes a variety of operation and energy measures including smart meters, smart appliances, renewable energy resources, and energy efficient resources. Electronic power conditioning and control of the production and distribution of electricity are important aspects of the smart grid.
  Smart grid policy is organized in Europe as Smart Grid European Technology Platform. Policy in the United States is described in 42 U.S.C. ch. 152, subch. IX § 17381.
  Roll-out of smart grid technology also implies a fundamental re-engineering of the electricity services industry, although typical usage of the term is focused on the technical infrastructure.
context_section_description: To reduce demand during the high cost peak usage periods, communications and metering technologies inform smart devices in the home and business when energy demand is high and track how much electricity is used and when it is used. It also gives utility companies the ability to reduce consumption by communicating to devices directly in order to prevent system overloads. Examples would be a utility reducing the usage of a group of electric vehicle charging stations or shifting temperature set points of air conditioners in a city. To motivate them to cut back use and perform what is called peak curtailment or peak leveling, prices of electricity are increased during high demand periods, and decreased during low demand periods. It is thought that consumers and businesses will tend to consume less during high demand periods if it is possible for consumers and consumer devices to be aware of the high price premium for using electricity at peak periods. This could mean making trade-offs such as cycling on/off air conditioners or running dishwashers at 9 pm instead of 5 pm. When businesses and consumers see a direct economic benefit of using energy at off-peak times, the theory is that they will include energy cost of operation into their consumer device and building construction decisions and hence become more energy efficient. See Time of day metering and demand response.
caption: Peak load avoidance by smart charging of electric vehicles
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