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Levelized Cost of Energy

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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
  • 2,221 items added with 1,295,111 views
  • Oct 12, 2020

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These days a long list of energy related options is potentially available for industrial, commercial and institutional energy users. They range from purchasing energy as commodities (power, gas, biomass, etc.), developing energy efficiency projects (inside the fence) and power projects such as generation, cogeneration and high voltage access (to the fence and/or inside the fence).

The # 1 challenge, according to my consulting experience, is “touching base with the clients’ decision makers”. It means that usually CEOs, COOS, VPs and even upper managers are not really at ease with the energy business. It is super difficult for them to set an energy strategy even considering that it is a Top 10  cost or in many cases a Top 5 one. Simply put because they are not familiarized with energy. But…. I was able to show simple facts and numbers, not using jargon, and most importantly, opening discussions by comparing energy related options,  their costs, advantages, disadvantages, associated risks, structured formats to make them happen, etc.

This is my idea right now. In order to help these high level executives to go for well informed decisions in the energy arena, start using a simple (but very powerful) table of cost references including: short term and long term power prices, energy efficiency costs, power projects (on-site and off-site).By looking at this table these high level guys would easily see where it makes sense to ask their teams to prospect value added solutions.  

This table would be crafted per location because most of the prices depend on geography. Each location is served by a local utility company so the wire fees are specifically established by the regulator. The cost of a list of options depend also on location.



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Thank Rafael for the Post!
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