Demand
The rate at which your facility draws electricity at a given moment, measured in kilowatts (kW).
Definition
Demand is the instantaneous or short-interval rate of electricity consumption, as opposed to total energy consumed over time.
Detailed explanation
If energy (kWh) is the total volume of electricity you use, demand (kW) is how fast you use it. Utilities record demand in short intervals (often 15 minutes) and typically bill based on your highest interval during the billing period.
Why it matters
Two facilities can use the same total energy yet pay very different amounts if one has sharp demand spikes. Understanding demand is the first step to controlling demand charges.
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