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How much is 1 MWh worth?

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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How much is 1 MWh worth?

This question is essential for anyone responsible for deciding on alternatives to achieve and maintain competitiveness in the electricity bill.

The challenge is intriguing because a value must be set. And there are so many criteria I've seen employed:

1. Looking in the "rear view mirror"

The most common is to average a period considered representative.

2. Using ongoing, current prices and rates

Those that appear in the invoices received from contracted suppliers

3. Aiming at the future

Estimating the marginal cost of expanding supply to meet demand

According to the criterion, the value to be considered varies, and potentially, a lot. And the decision of what to choose too!

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Thank Rafael for the Post!
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