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Innovation: flexible kW demand

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...

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  • Apr 15, 2020
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Innovation: flexible kW demand

1) A win-win proposal!

Customers gain flexibility to adjust their contracted demands and concessionaires keep their revenue unchanged.

2) How so?

Through an exchange of contracted demand positions between customers of the same concessionaire who present opposite situations (one wishes to increase and the other to reduce)

3) Concessionaires get a valuable "extra"!

Its "contracted" load factor will increase, benefiting its economic and financial indicators, since (a) investments in the expansion of its capacity may be postponed and/or (b) more energy may be sold through the same grid.

4) Is it fair?

The benefit will be offered to everyone respecting the existing limitations of the local grid of the concessionaires

 5) Is it an evolution or a revolution?

Evolution. Maintains the principle of contracting demand, but opens up potential flexibility

6) How to classify this initiative?

It is a form of proactive demand adjustment. The concessionaire offers a tool for its customers and when using them they manage their contracts more efficiently/competitively

7) Is it doable?

It only requires a platform to exchange demand positions - a tool that does not involve investment in the physical infrastructure of the grid. A non-wire-alternative.

8) What are the numbers?

The postponement of about 50 USD Million in the expansion of the concessionaires' grid /GW contracted with its demand customers.

9) How will the customer perceive this value?

By reducing the payment of your contractual "idleness" and/or fines for exceeding the contracted demand. Whether it is the typical fixed demand arrangement or the ratchet.

10) How to make it happen?

I am at the disposal of concessionaires and/or investors interested in considering this business development opportunity! I have already conceived the format and am ready to consult to "make it happen".

Rafael Herzberg's picture
Thank Rafael for the Post!
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