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


Energy: "powerful" metrics

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
  • 2,212 items added with 1,290,012 views
  • Dec 28, 2022

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!


No discussions yet. Start a discussion below.

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

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 »