Welcome to the new Energy Central — same great community, now with a smoother experience. To login, use your Energy Central email and reset your password.

Rafael Herzberg
Rafael Herzberg
Expert Member
Top Contributor

Evolution example

Evolution example

Two free business consumers purchase electricity and pay the same final market price in $/MWh.

One of them closed a contract with a run-of-river hydroelectric power plant and the other from a power plant with a large reservoir.

The run-of-river plant produces less kWh per year for each installed kW of capacity than the reservoir plant.

It means that for the company that bought all the energy from the run-of-river plant will also need to be supplied by other power plants.

And then there is a cost that in the current system is just "prorated by all consumers".

It is high time to differentiate, in terms of costs, the energy supply contracts to reflect this reality. This will allow the possibility of minimizing costs!.