Peak demand charges are often levied by local electric utilities or grid operators based on the maximum electricity demand of a commercial and industrial (C&I) customer within a defined time interval. These charges often account for a significant portion of a C&I customer’s bill and the costs associated with demand charges have been difficult to manage. With the advent of energy storage technology, the reduction of these charges serves as the foundation of the business case for deploying C&I energy storage systems (ESSs). 

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