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Tariff evolution proposal

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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  • Aug 18, 2022

Tariff evolution proposal

The world is moving towards primarily renewable sources such as sun, wind and water.

In this context, the most important cost to generate, transmit and distribute electric power is associated with investments (CAPEX).

And the best-represented renewable cost structure is $/kW installed. This is in contrast to the current one that privileges $/kWh.

The most efficient and robust trend will be to evolve the billing format to $/kW as well.

And in this line, create virtual environments, sponsored by the local concessionaires, in which consumers, whether companies, institutions or residences, could adjust their kW capacities.

By being able to adjust their contracts, they would - potentially - always seek to maximize their efficiency so as to minimize their costs.

A real win win. Consumers who pursue efficiency , the nature would win big because there will be less emissions and the local concessionaire that would be able to meet more clients  with the same total demanded capacity!



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Rafael Herzberg's picture
Thank Rafael for the Post!
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