Acrel Provides Maximum Demand Monitoring and Management Solution

08 12, 2025

What is Maximum Demand?

Demand refers to the average rate of electricity consumption over a specific time interval, typically measured in kilowatts (kW) or megawatts (MW). This interval—known as the demand period—commonly spans 15, 30, or 60 minutes, reflecting the instantaneous load placed on the power system.

Maximum Demand represents the highest average power value recorded during a billing cycle (usually one month) within these demand intervals. While the standard interval is 15 minutes, this can vary by utility or region.

Demand Period: Typically 15 minutes (varies by location)

Demand: The average power during that period, expressed in kW

The calculation typically works as follows: the meter records power every second. After 60 readings, these values are summed and divided by 60 to produce a one - minute average. This process repeats across the demand interval—for example, 15 one - minute averages are then summed and divided by 15 to determine the demand value.

How to Monitor Maximum Demand?

Acrel offers numerous products equipped with maximum demand monitoring capabilities:

How to Manage Demand?

Fundamentally, demand management involves reducing power consumption by avoiding simultaneous operation of large loads. By scheduling these loads across different time slots, peak demand decreases.

The grid's load capacity—determined by transformers and distribution lines—establishes the maximum permissible power level. Exceeding this threshold risks overheating lines or damaging transformers.

Electricity bills consist of two components: a basic charge based on transformer capacity or contracted demand (representing fixed costs), and an energy charge based on actual consumption (representing variable costs). Effective demand management directly reduces the basic charge.