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Data analytics from the client’s prospective

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Industrial, commercial and institutional energy users typically pay their monthly power bills without checking what’s really going on with respect to two important metrics: $/kWh and kWh/physical activity.

$/kWh reflects the purchasing cost of electric power. It includes the “wire fees” and the “commodity fees”. kWh/physical activity is associated with the “energy conversion”. It may be kWh/tons produced, kWh per ft² of the building being used, or others.

If the energy user starts monitoring these two metrics, easily and quickly it is possible to start asking a lot of questions and most importantly, explore alternatives to improve them. It will be learned that there is a lot to do about power contracting and its efficient use.

At this point in time data analytics may be of value because the energy user will be interested in narrowing down the strategies that might be of interest to achieve and sustain better energy related results.

There is a huge potential, especially from the utility’s view point. As opposed to “just sending the monthly power bill” there could be a very consistent but simple set of metrics showing what is going on with the two proposed metrics and also compare them with other energy users of the same category. When one company or institution is compared with others there is more drive to “go for it” in comparison to metrics “just” about a specific case.

The real challenge comes from the top of the companies. The C level should take the lead to stimulate the team to use these metrics and of course have the goal to improve them. There is a whole new world there to be discovered, explored and results to be conquered.

Rafael Herzberg's picture
Thank Rafael for the Post!
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Mo Kamuss's picture
Mo Kamuss on Nov 28, 2020

Great article Rafael! Yes, there is a lot scope through data analytics to understand usage, benchmark performance and explore ways to reduce costs.

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