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Power tariffs and prices will rise

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Nov 10, 2021

Power tariffs and prices will rise

There is a list of well-known reasons that support the statement that gives the title to this post.

There is, however, one that is little dealt with and that should become important. It is associated with the increasing introduction of "intermittent" energies. I'll give an example of what happens with an average home, which requires 5 kW of power. In round numbers.


Monthly consumption of 500 kWh
Monthly bill paid to the local utility company of USD 100


Monthly consumption of the 300 kWh public network
Monthly bill paid to the local utility company of USD 60
2 kW installed PV system

The public grid needs to instantly attend this home even when the day is cloudy and there is practically no sun shining.

That is, the capacity to be served by the local utility, with or without a solar system, is 5 kW. In other words, the investment in infrastructure is the same with or without a photovoltaic solar system

In other words, the same 5 kW will have energy sales revenues of 300 kWh/month and not 500 kWh/month. The difference will be apportioned among all in the next tariff review.

Gareth  Young's picture
Gareth Young on Nov 10, 2021

Absolutely agree 

Rafael Herzberg's picture
Thank Rafael for the Post!
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