Consumption vs Demand

Understanding the differences between consumption (kWh) and demand (kW) can help members manage energy costs and improve efficiency.

What is the difference between  CONSUMPTION & DEMAND?

Consumption and demand both impact energy use but in different ways. Consumption (kWh) is the total electricity used over time, like the number of gallons of water used in a day. Demand (kW) is the rate at which electricity is used at any moment, similar to how fast water flows from a faucet. High-demand appliances can cause spikes even if they don’t run continuously. While consumption affects overall energy use, demand influences infrastructure and peak load management, making strategies like peak shaving essential for controlling costs for both members and the cooperative.

A Speedometer and Odometer

A Car's speedometer is like the demand meter and the odometer is like a consumption meter.  Two cars could travel the same 100 mile road, one at 10 miles per hour for 10 hours and the other at 100 miles per hour for 1 hour.  It takes a much more capable and expensive engine to power the car at 100 miles per hour than the one going only 10 mph.   So, in this example consumption (kWh) is the distance traveled in a specific timeframe and demand (kW) is the speed at which that distance was traveled.

Car (Con vs Dem)

Flow Rate vs. Consumption: A Bucket Filling Speed Analogy

To fill a bucket with water, one can use an inexpensive hose connection that provides 1 gallon of water per minute, or one can use a more expensive large faucet that provides 5 gallons per minute. The flow rate is equivalent to demand, and the amount of water in the bucket is equivalent to consumption. Each bucket has the same amount of water, but one was filled 5 times faster. This is like two members using the same number of kWh, but putting different demands on the system.

water-bucket-illustration