Demand Charge
A fee on a commercial electricity bill based on the highest amount of power (kW) drawn during a 15-minute interval in the billing period.
Technical Details
Distinct from energy charges (kWh). One spike in power usage can determine the cost for the entire month.
Fleet Applications
Unmanaged charging of 50 buses simultaneously creates a massive power spike, leading to exorbitant demand charges. Smart charging flattens this peak.
Related Terms
Dynamic Load Balancing
Real-time distribution of available power capacity across multiple active charging stations to preventing grid overload.
Peak Shaving
Strategy to reduce electricity consumption during intervals of maximum demand to lower demand charges.
TCO (Total Cost of Ownership)
A full-cost view of buying and operating a vehicle or fleet over its lifecycle, not just the purchase price.
OPEX (Operational Expenditure)
Ongoing operating costs such as energy, maintenance, labor, and administration.
Dynamic Load Management (DLM)
Real-time adjustment of charging power based on available site capacity and operational constraints.
Demand Response
Shifting or reducing electricity consumption in response to grid signals or price incentives.