Grid threats increase daily - from foreign foes, terrorists, criminals and hackers. Utilities are tasked with guarding against a rising tide of potentially disruptive intrusions into their power grid and electronic networks. What will it take to keep the power more...
Monday Jun 24, 2013
- Tuesday Jun 25, 2013 -
Philadelphia, Pennsylvania - USA
Data Informed´s Marketing Analytics and Customer Engagement provides marketing, sales, and customer support managers with the information they need to create an effective data-driven customer strategy. more...
Is the managing director of Interact Ltda., an energy consulting company (since 1982) based in São Paulo, Brazil specialized in energy contracting (from the public grid and on-site), to the fence power projects and inside the fence energy savings for industrial, commercial and institutional energy users.
Regulated rates have become one of the most expensive in the world. The spot price is oscillating as never before, from the minimum to the maximum there is a factor of 1:10 and deregulated firm long term prices are also showing a lot of volatility. The range is an astonishing 1:2.
Despite the world's financial and economic crisis, electric energy consumption in Brazil is growing at 5% a year. The current installed generating capacity is 101 GW. Since supply and demand are balanced these days, it means that the required expansion is 5 GW/year just to make sure the market is supplied in the years to come. However, the approved, licensed and under construction power plants add up to 4 GW/year. There is a 1 GW/year deficit.
Under traditional regulatory structures, utility earnings are tied to the volume of electricity and natural gas that customers use. So, even a small reduction in consumption can make a large cut into a utility's profitability. This presents a strong financial disincentive for those companies to push energy efficiency.
Everywhere around the globe economies are driven by growth. The supply side is obviously interested in growth because it is what they do for a living: selling goods and services, as much as they possibly can. The demand side is eager to consume more and more.
With GNP growing at 5% in 2007 and potentially in the next years, Brazil would need 5 GW/year of new electric generation, transmission and distribution on top of the current 100 GW to cope up with the demand.
End users around the globe are increasingly concerned about potential shortages in the energy supply from the public grid. This is a global challenge that could become a real problem in selected areas in the US, Brazil or China. Who knows where?
There is a tendency to look and treat energy as a commodity. After the recent massive blackouts in the US and other countries as well, new questions have been raised.
Is there enough generation available?
Are the transmission lines reliable?
Are distribution companies able to properly handle the peak summer load?
This article presents a real case involving Proceda (an MCI company) and a negotiation with the local distribution company, which resulted in a significant cost reduction, in a highly regulated environment. Proceda is an IT service provider based in São Paulo, Brazil. Clients such as major credit card companies use Proceda’s services. Millions of financial transactions are processed on a daily basis. Reliability is a major concern. Energy is vital.
In the middle of 2002, Nextel hired an energy consulting company to help them reduce their electric energy bill. The business arrangement was based on a shared savings contract, under which the consulting services would be paid upon actual, verified result$. This paper will present the initial results that were achieved.
Corporate energy users pay bills that are kW demand and kWh energy denominated. In Dollar values, roughly speaking, 60% is kWh and 40% kW. A lot of products and services are there when it comes to the energy portion of the bill. This paper will discuss a new concept, for the demand portion of the bill.
Up to the 80’s the Government was able to invest about US$ 4 Billion/year in the expansion of the system (generation, transmission and distribution) and accordingly meet the market’s needs for energy in a heavily regulated environment.
In the 90’s, the electric sector began changing towards a competitive model. Distribution companies were privatized and it is expected that in the next couple of years, the generating companies will be privatized as well. With this de-regulation process, there is room for new, private, investments associated with 4 GW/year expansion. The recently lifted energy rationing only indicates how badly this additional capacity is needed!