Maximum Demand (MD) is one of the most misunderstood — and most expensive — aspects of industrial electricity billing. For many factories, MD penalties account for 15-25% of their total electricity cost.
What is Maximum Demand?
Maximum Demand is the highest amount of electrical power (measured in kVA) drawn from the grid during a billing period, typically measured in 15-minute intervals. Your electricity provider sets a Contract Demand (CD) — the maximum power you’ve agreed to draw.
Exceed it, and you pay hefty penalties.
Why Does MD Spike?
Common causes of MD breaches include:
- Simultaneous machine startups — Starting multiple heavy loads at the same time creates massive inrush currents
- Poor load scheduling — Running all production lines during the same shift
- Reactive power — Low power factor increases apparent power (kVA) even when actual work (kW) stays the same
- Lack of visibility — Without real-time monitoring, you don’t know MD is spiking until the bill arrives
How IoT Helps Control MD
Real-time MD Tracking
StatStream’s dashboard shows your current demand in real time, along with a prediction of where it’s heading. When demand approaches your contract limit, the system sends immediate alerts.
Load Staggering Recommendations
The AI engine analyzes your production schedule and suggests optimal startup sequences. Instead of starting 5 compressors simultaneously, stagger them across 15-minute intervals.
Predictive Alerts
Using historical patterns and current trends, the system predicts MD breaches up to 30 minutes in advance — giving you time to shed non-critical loads.
Power Factor Optimization
By monitoring power factor in real time and coordinating with APFC panels, StatStream helps maintain PF above 0.95, reducing the kVA demand for the same kW output.
The Bottom Line
A factory with 500 kVA contract demand paying ₹300/kVA penalty can save ₹1.5 lakhs per month just by avoiding MD breaches. With IoT monitoring, this becomes achievable within weeks of deployment.
