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Emission reduction: how to engage consumers?

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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  • Feb 3, 2022
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Emission reduction: how to engage consumers?

A global trend is the reduction of emissions to be considered in energy consumption in homes and companies/institutions.

How to encourage this behavior?

Creating an energy cost model that favors renewable energy. Currently, the energy consumer pays at the end, a value that reflects the Brazilian energy matrix. That is to say that even if a deregulated energy user contracts 100% renewable energy, he will still have - automatically - the support of the thermal plants dispatched by the National System Operator to meet the demand when rivers, sun or wind can't handle the job!

In the end, everyone ends up paying this "back up", and the charge is through an apportionment. My proposal is to enable a system that reflects the energy matrix and associated costs for each client (automatically of course).

The idea is simple. The consumer would contract a volume of 100% of energy. Normally, in Brazil, let's say in a year, 70% is renewable (water, sun, wind) and 30% non-renewable (diesel, gas, oil, etc.). If the customer consumes up to 70% of the contracted volume, he would pay the price of renewable energies, much cheaper than non-renewable ones . The additional volume would be charged at the price of the non-renewable. If you don't pay any attention to this matter, you'll end up paying the same as today!

And then comes the automatic stimulus. The client would seek to enable actions aimed at exceeding the level of renewable as little as possible. Whether through energy efficiency actions, local or remote renewable generation.

There is a great opportunity to be explored as non-renewable energy in Brazil costs about three times as much as renewable energy per MWh consumed!

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Thank Rafael for the Post!
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