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2020 Predictions and Trends: the decision making process turnaround

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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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  • Jan 29, 2020

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For many decades Industrial, commercial, and institutional energy users have become accustomed to follow power rate and other energy sources signals emanated by the respective regulators.
Accordingly, in this environment, it was up to managers - close to the operations floor - to identify energy related opportunities that would bring a hefty benefit and present them to the upper management to “go for it or not”.
A silent and important change is occurring: a comprehensive list of energy related opportunities is there. Most of them are market driven. A new scenario. Demand response programs,  distributed generation projects, on-line energy management, contracting power, gas, biomass, etc. on the deregulated markets, higher voltage connection to access the public power grid, energy efficiency retrofits and the list goes on and on!
It is a new “puzzle”. As opposed to waiting for providers knock on the client’s doors to present their offers and show the associated benefits, nowadays upper managers, VPs, COOs, CEOs and board members come up with a “new” question: what’s the challenge?
In these new times well-educated decision making processes is the name of the game. Much more emphasis on “the whole picture”, less on “specifics”. An important shift in the way clients will lock deals is to be expected. Contracting structured solutions that include financial, technical and management aspects and not necessarily assets.
Welcome to this vibrant and new era.

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Thank Rafael for the Post!
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Matt Chester's picture
Matt Chester on Jan 30, 2020

In these new times well-educated decision making processes is the name of the game. 

What do you think those decision-makers should be doing to get all the education they need, if they're so motivated?

Rafael Herzberg's picture
Rafael Herzberg on Jan 30, 2020

Hi Matt!

These decision makers should do exactly the same thing they do for other accounts of the same financial size. 

It is funny to see that in the energy arena, for many years, the energy cost has not been given the proper treatment. 

Education in this case is,in my opinion,the drive to ask the right questions. Such as:

  1. What are the bounday (technical, financial, legal and management) conditions for a project (whatever that is) to fly for that specifi client?
  2.  What is the decision making process to be used?
  3.  Who should be in charge?
  4.  Is there a timeline oif activities, deadlines and persons involved?

It is a fascinating new world!

Dr. Amal Khashab's picture
Dr. Amal Khashab on Jan 30, 2020

Hi Rafael , it looks that you consider an energyy's modern decicion makers as a clever brokers. It is true since a broker makes a lot of estimations about a specific deal ( price , buyer , payment , and terms of conditions).

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