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, [...]
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 [...]
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 [...]
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 [...]
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 [...]
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 [...]
