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Gas vs. electricity

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...

  • Member since 2003
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  • Jan 28, 2021

Gas vs. electricity

For a first assessment, the cost in $/m³ of natural gas, divided by 10 is the equivalent cost of $/kWh in electricity.

Thus, if the cost that an industry, a commerce, or an institution pays for gas is $ 4/m³, the equivalent price of electricity is $ 0.4/kWh.

In this case, if the consumer pays an electric bill above $ 0.4/kWh, it will be worth considering the use of gas to partially or totally replace electricity. And vice versa too!

The first step is evaluating the efficiency of the gas and electric conversion processes, the taxation involved, the need to invest in the "retrofit" and the cost of the associated amortization, etc.

Another relevant aspect is discovering the electricity and gas costs that should be used to evaluate the results. Each case has its peculiarities, and the list of variables is long!

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