Peaker Plant
A power plant that operates only during periods of peak electricity demand — typically natural gas simple-cycle turbines that can start up in 5-15 minutes. They run a few hundred hours per year and charge premium electricity rates.
Why It Matters
Peaker plants are the most expensive electricity on the grid and are increasingly being replaced by battery storage, which can respond even faster and at lower operating cost.
Related Topics
Related Terms
Combined Cycle Gas Turbine (CCGT)
A power plant that uses natural gas in two stages: first burning it in a gas turbine, then using the waste heat to produce steam for a steam turbine. This two-stage process achieves 55-63% thermal efficiency — the highest of any thermal power plant.
Demand Response
A program where utilities pay customers to reduce electricity usage during peak demand events, often by cycling AC units, adjusting thermostats, or discharging batteries to the grid.