Success story I in energy

Success story I in energy

The CEO of the client – a leading group in the packaging industry – told me that he wanted to discover opportunities in the energy area. I accepted the challenge, which was posed with compensation for my work based on the results!

I followed the method I always use.

(1) Gather information on energy use and energy supply contracts,

(2) Analyze the information with a view to modeling alternatives, and

(3) Present the alternatives to the CEO, considering the technical, financial, legal, and management issues that are always associated!

The result was surprising. I discovered that the main “problem” was the unplanned interruptions – grid of the concessionaire that supplied one of its units in the interior of São Paulo. There were more than 60 hours of interruptions per year that generated huge losses due to production and revenue losses, since the operation was 24×7.

I suggested migrating the current voltage from 13 kV to 138 kV. It would require the installation of a 12 MVA step-down substation and the construction of a 138 kV line connecting the customer to the concessionaire. And the great news is that, given the tariff differences, there would be significant savings in monthly electricity bills.

The CEO agreed to the condition that the project would be entirely outsourced (investments, operation and maintenance) and that the investor would be paid 90% of the savings, and the contract terms and conditions would be then negotiated.

I sought out the investor, a contractor company, and worked with the concessionaire to align the project with the technical and regulatory requirements involved. The deal was closed in a BOT type arrangement (buind, operate and transfer)! 6 months later, the project, which required  investments of USD 2 million, was inaugurated.

The CEO was so pleased with the results that my consultancy was then extended to the other units of the group!