From kWh to kW
- Aug 25, 2022 9:24 am GMT
From kWh to kW
The community around the globe, formed by the electricity sector, is realizing that the great challenge is to focus efforts on the ability to serve the market.
In other words: ensure the required capacity in kW.
Our tradition has always been to focus on kWh. It is so true that the largest portion of the collection of electricity bills from all customers, whether business, institutional or residential, is the kWh. And from afar!
In order to align this finding with a realistic posture of seeking efficiency and robustness in serving the market, it will be imperative to change the pricing system. So that it aligns with reality.
The way out is to center the charge in $/kW of capacity for each customer. Then, the tariff signal will reflect the cost of service for each customer. And, in the same vein, it will encourage the customer to demand less (which does not happen today because the measurement is primarily by kWh).
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