Malaysia’s industrial users cut power bills by trimming peak demand
Industrial users can cut power bills by up to 30% by capping maximum demand during grid peaks, according to energy consultants citing Malaysia’s Time-of-Use tariffs.
Source: Genetec Technology Berhad · August 2, 2026 at 10:56 PM · AI-assisted report
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KUALA LUMPUR, 3 AUGUST 2026 —
Industrial users can cut power bills by up to 30% by capping maximum demand during grid peaks, according to energy consultants citing Malaysia’s Time-of-Use tariffs.
Market Impact
The peak-shaving strategy uses on-site batteries or controlled load cuts to prevent short spikes that drive demand charges, which can reach RM20 to RM50 per kW depending on the tariff tier. Under the national Time-of-Use structure—peak hours 2 pm–10 pm—users charge batteries overnight at RM0.35/kWh and discharge during peaks priced at RM0.45/kWh, yielding a net saving of RM0.10/kWh on the discharged load while avoiding demand charges on the highest 30-minute interval.
Energy-management systems monitor demand in real time and trigger battery discharge when the preset cap is approached, ensuring the facility never exceeds the target while the grid sees only the capped load. Typical installations—such as factories that saw monthly demand charges drop from RM18,000 to RM12,600 after installing a 500 kWh battery—show payback within 3–5 years.