Working paper

Methodology to build a power sourcing strategy

Power sourcing for energy intensive industries has changed since many countries began to restructure their electric power sectors. Before, energy sourcing was limited to a set of products offered by electronic companies under regulation. However, deregulation of electricity markets provides costumers significant choices in energy sourcing for the first time; changing the way electricity is purchased increasing the need to develop energy sourcing strategies. The main objective of this paper is to explain the process to develop a methodology, which should help industries to better decide how to source their power requirements. In order to do so, this paper seeks to first understand new markets factors influencing the sourcing strategy,; as well as an analysis of the current power sourcing options- After market conditions are described, the model on which methodology is based will be explained. As part of this, each step for building up the model will be described. Finally, implementation and monitoring will be presented as complements for methodology appliance.

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