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Innovating with energy sources

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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  • Feb 13, 2021
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Innovating with energy sources

The vast majority of companies and institutions use electricity as the single source of energy.

Is this choice the best in view of other sources that could also be used?

Here is an example of an medium sized manufacturing industry, located in the city of São Paulo, Brazil.

CURRENT SITUATION

* 100% of the energy consumed is electric through the local concessionaire
* The total power bill cost referred to the MWh consumption is R$ 500/MWh

GAS OVEN SIMULATION

* It would replace 35% of electricity consumption
* Natural gas cost R$ 2.2 /m³
* Gas ​​cost, R$ 220/MWh
* Weighted cost 35% gas and 65% electric, R$ 400/MWh
* Energy bill savings of R$ 100/MWh (20%)

This saving (20%) may justify the investment in a gas oven or even in retrofitting the existing electric oven.

This concept might be extended to a list of possibilities such as the use of biomass, solar, among others, always considering the type of activity developed in that specific location and the alternative sources commercially available.

Discussions
Bob Meinetz's picture
Bob Meinetz on Feb 13, 2021

Rafael, it would be considerably worse for the environment to switch to burning fossil fuel in a country that obtains 70% of its electricity from carbon-free hydropower.
By your calculation it looks like it would save the manufacturing company some money. But whether saving money at the expense of the environment is "best" is an ethical (and personal) judgement.

Rafael Herzberg's picture
Rafael Herzberg on Feb 15, 2021

The local gas distribution company operates according the established regulations and therefore is allowed to sell gas. Accordingly it is possible to legitimately lock gas deals to purchase gas. 

Here in Brazil there are no restrictions to switch from electric power to natural gas, so unfortunately, yes you are right: it depends "only" on a ethical judgement. And again, unfortunately ethical judgement is a super scarce resources these days here in Brazil.

Rafael Herzberg's picture
Thank Rafael for the Post!
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