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Evolution example

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
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  • Jan 25, 2022

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!.


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Thank Rafael for the Post!
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