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Energy: "powerful" metrics

image credit: Rafael Herzberg
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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  • Dec 28, 2022
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Energy: "powerful" metrics

I particularly like using two metrics to monitor the evolution of strategies for my clients: $/MWh and MWh/activity.

$/MWh is the total amount paid, month-to-month, for the energy bill, divided by the amount of MWh consumed.

MWh/activity is the consumption, from month-to-month, referred to a magnitude that mirrors the activity carried out.  Each company or institution needs to discover the parameter to be used.

And next, comes the most important step: discovering actions that improve these metrics, as it will result in cost reduction.

In the item $/MWh, it will be necessary to evaluate:

(1) better contracting formats, 
(2) tariff for the use of the system ("wire fees"),
(3) elimination of fines by power factor,
(4) elimination of fines for exceeding demand or contracting idleness,
(5) transfer of peak consumption to off-peak,
(6) demand control,
(7) connection to the public grid at a higher voltage and
(8) onsite generation/cogeneration.

In the MWh/activity item, it will make perfect sense to take a critical look at:

(1) energy conversion processes - using more efficient technologies,
(2) waste reduction (so common),
(3) cost arbitration considering other energy sources,
(4 ) outsourcing strategies and/or in-house production processes.

I can assure you that this "recipe" is a great one!

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Thank Rafael for the Post!
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