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Annual Savings (Brazil) - Are you interested?

image credit: Hourly demand (Brazil) of a weekday

R$ 1 Billion Annual Savings (Brazil) - Are you interested?

A suggestion that does not involve investments in physical projects - but requires a new view from the electric utilities.

It is very simple conceptually: It is a platform sponsored by the local utility where companies and institutions that contract demand transact among themselves differences in contracted demands. Thus "surplus" demands from certain customers are "posted" to be "captured" by those others who wish to increase them.

This format (zero-sum "game") has the great merit of enabling a more efficient system with fewer demand leftovers and shortages than the current one. The results are interesting to all participants:

  • Those who switch positions better adjust their demands thus reducing costs.
  • The utilities will meet system expansion without the need for infrastructure investments. 

Considering the graph of national consumption (above), it will be reasonable to make a reduction that would lead to an aggregate savings of R$ 1 Billion/year (USD 250 MM/year).

For those who are interested in transforming this concept that I created into a business reality for utilities, just contact me and we will explore the possibilities. My goal is to transfer knowledge for an entrepreneur to "make it happen".

Rafael Herzberg's picture

Thank Rafael for the Post!

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Gary Hilberg's picture
Gary Hilberg on Sep 19, 2019 3:02 pm GMT

Rafael - would a good first step be time of day pricing for electricity to incentivize those who can shift load to move to lower cost periods?  I am not sure of the implementation of smart meters in Brazil, but in many areas these meters allow for 15 minute reading increments that could try to shift behavior.  I suspect that this could be implemented first for the industrial and commercial users.  

Rafael Herzberg's picture
Rafael Herzberg on Sep 19, 2019 6:10 pm GMT

Hi Gary, of course your suggestion is great.

However in Brazil the powerclearinghouse a key player for demand response programs (when it comes to settlemenrts) is in a very difficult situatuion (USD Billions in default). So no credibility "to go for it".

The proposed concept I came up with (demand exchange is an alternative because it would not depend on the power clearinghouse, just the utility companies) is a feasible alternative. Not exactly the same but which could bring hefty benefits as well!. 


Dr. Amal Khashab's picture
Dr. Amal Khashab on Sep 20, 2019 1:25 pm GMT

Demand exchange between customers behind utility back ? Does it envolve ?

Thanks in advance.

Rafael Herzberg's picture
Rafael Herzberg on Sep 21, 2019 10:06 am GMT

Hi Amal, the concept behind the demand exchange is: the local utility company sponsoring it! Meaning that it is a win-win situation. The clients involved in the transactions will benefit (because they are better adjusting their contracted demands vis-à-vis their physical demands) and and the utility will increase its load factor, potentially postponing infrastrucuture related investments.

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