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Power: how to produce and consume better?

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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  • Aug 11, 2021
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Power: how to produce and consume better?

The global agenda is focused on reducing emissions. Countries around the globe put on their agendas challenging goals to reach and maintain sustainable levels.

In the same token it will be interesting and convenient to evolve the billing system which has been essentially the same for over a century.

The reason is very simple, even obvious! With the system in place, countries need to have an installed generation capacity in GW that is around twice the maximum demand they physically register, to meet their market's demand.

If the requirement is to be more efficient, one of the paths to follow is also being able to reduce this "distance" between maximum demand and installed capacity. If we succeed, the world can benefit, and a lot, either in costs (amortization of investments) and in emissions.

To achieve this goal, the easiest and most efficient way is to make the tariff system evolve, favoring the amortization of costs linked to investments in the electric power value chain.

Currently, the focus of tariffs on all sectors (residential, business and institutional) favors the $/kWh tariff,. If it is primarily in $/kW of demand, consumers would have a clear incentive to adopt energy efficiency measures, program usage, create a portfolio of sources to arbitrate costs as the benefits would be way more attractive than they are today..

If you would like to consider this line of conduct, I am available to show the concept and associated analytical calculations.

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Thank Rafael for the Post!
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