global adjustment

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Why Global Adjustment avoidance assets may turn into stranded assets and how to avoid this

Companies that buy new equipment to avoid Global Adjustment charges face risk of having stranded assets. Business case for investments in GA avoidance equipment - generators and batteries - relies on current GA model, which resulted from a political decision. GA regime is based on politics, which are reliably unreliable As we all know, [...]

By | 2020-06-09T17:00:28-04:00 June 10th, 2020|Categories: Energy management|Tags: , |0 Comments

Is Ontario GA a blessing or a curse?

Should global adjustment (GA) exist or should it not? This is billion-dollar question.  Leaving methods of calculation aside, I think GA is the best option Ontario ratepayers can have given our market realities. Here are the conditions that form Ontario electricity market: Demand varies through the day, week and year.Power generation technologies have different fixed, variable [...]

By | 2020-06-03T10:33:15-04:00 May 15th, 2019|Categories: Energy management|Tags: , |0 Comments

To generate or not to generate – a multi-million dollar question

In the view of growing electricity prices and time-sensitive tariffs numerous vendors around offer on-site electricity generation and storage. Should your company do it? Are you in business of electricity generation? Prior to going into technical and financial details of different power generation solutions, I suggest you ask yourself a strategic question: Are you [...]

Options to reduce Global Adjustment for Class A: natural gas generator, batteries and mathematics, curtailing

What’s the best way to fight global adjustment cost? Omitting numerous details, three options are available: behind the meter generation, batteries and curtailing. Below is a quick comparison of pros, cons and risks of these solutions. Natural gas generators – switch to own source of power during peak hours Vendor promise Install a behind the meter [...]

Fighting Global Adjustment with batteries and mathematics

At a recent energy conference and tradeshow, #ESX2108, among other interesting presentations, one caught my attention - a serious approach offered by Peak Power Inc to reducing Global Adjustment charges by switching demand during peak hours to huge batteries. They consider peak chasing a mathematical game, and rightly so. Peak Power uses big data and machine learning to [...]

By | 2018-07-27T10:13:50-04:00 July 27th, 2018|Categories: Energy management, Profitability|Tags: , , |2 Comments

What is kWh worth at your plant?

A trivial question, which does not have a simple answer without the context. Consider a plant that in the last month used 1,000,000 kWh to produce 10,000 units and paid $15,000 for electricity. Does kWh cost $0.15? Is energy cost per unit $1.5? Yes, No and Maybe. Cost or value of a kWh depends on [...]