Senior decision-makers come together to connect around strategies and business trends affecting utilities.


Death spiral

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
  • 1,898 items added with 1,113,105 views
  • Nov 29, 2021

Your access to Member Features is limited.

Death spiral

Distributed generation is being super encouraged.

Photovoltaic solar energy is one example increasingly present on Brazilian rooftops. I mean, the consumer is producing locally as much as possible and the local utility sells "the difference" of what is needed to complete the total volume.

The more consumers go for this solution, the more pronounced the reduction in the utility's sales, for the same infrastructure in the electricity sector's value chain.

The regulator's response is, in the next tariff review, to recalculate the values now considering the same amortization of the investment, but with a smaller volume of energy delivered.

Thus, it is consumers who do not invest in distributed generation are the ones who actually subsidize those who invest.

It is high time to evolve the rate structure, so that it promotes a balance necessary!

Rafael Herzberg's picture
Thank Rafael for the Post!
Energy Central contributors share their experience and insights for the benefit of other Members (like you). Please show them your appreciation by leaving a comment, 'liking' this post, or following this Member.
More posts from this member
Spell checking: Press the CTRL or COMMAND key then click on the underlined misspelled word.

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »