Average electric power costs for industry

Average power costs for industry for various countries are shown in the graph below. However, it must be emphasized that power cost varies quite significantly depending on following factors even in a same country

  • Location – Depending on geographical location, power cost varies significantly. In the US, power costs tend to be low in Midwest and South Central while it is high in New England as shown here.
  • Timing – The capacity of power plant required is dependant on the peak power demand, not the average demand. In order to reduce the fixed cost to build additional power plants, government and power companies tend to imply surcharges to discourage the power usage during peak time. Therefore, the peak water treatment time can be manipulated to take advantage of low power costs at certain time or to avoid peak power costs, if redundant capacity exists in equalization tank.
  • Contract power – To make the power consumption more predictable while preventing power demand surge, each end user may be allocated with maximum power, perhaps with time variations. If power consumption is beyond the contracted level, hefty surcharges are often imposed.

industryElectricity prices for industry including and excluding taxes in 2009 for a selected number of countries. Prices excluding taxes in blue and taxes added in red. (from theoildrum.com) 


© Seong Hoon Yoon