What is the concept of 'peak shaving' in energy management?

Peak shaving is a strategy employed in energy management to reduce the maximum (peak) demand for electricity on the grid during periods of high energy consumption. This approach is particularly beneficial because excessive peak demand can strain the energy infrastructure, leading to increased energy costs and potential outages. By lowering consumption during these high-demand periods, peak shaving helps stabilize the grid, enhances reliability, and can lead to cost savings for both energy providers and consumers.

This can typically involve tactics such as encouraging users to switch to alternative energy sources, utilizing energy storage systems, or implementing demand response programs. The essence of peak shaving lies in managing and reducing the load during peak times instead of generating more energy, which aligns closely with the principle captured in the answer choice.