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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...

  • Member since 2003
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  • Apr 16, 2020
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  • I was consulting for two right next door neighbors at the same time: a 2 500 kW mall and a 3 000 kW industrial plant
  • The mall wanted to increase its contracted demand by 500 kW and coincidentally the plant wanted to decrease its contracted demand by 500 kW
  • The power distribution company required the mall to wait a year because the grid was already operating at its nominal capacity. They would have to reinforce it.
  • The plant was told to ask for the reduction and accordingly pay for the 500 kW idle demand for 6 months (regulations)
  • If the proposed exchange was there, the mall and the plant could have traded their demand differences right away (no need to wait)
  • The power distribution company would increase its energy sales (for the same total contracted demand) with no extra investments
  • The two clients would be “happy”
  • But in reality: the mall had to rent diesel gen sets and run them for a year to cope with the new load until the power distribution company was able to increase the contracted demand
  • The mall paid a lot higher for the kWh because the variable cost of a gen set is about 3 times the regulated power rates
  • The plant paid the “idle” 500 kW demand for 6 months
  • It was the opposite of a win-win situation and most importantly the power distribution company was a looser as well
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Thank Rafael for the Post!
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