More power related maths

From the previous post on fuels (Petrol or Diesel) 3.2 GJoules of energy costs, let’s say, $150. It follows if, assuming that the fuel is burnt most efficiently by a very good generator – giving say 30% conversion of fuel energy to electricity, then that 3.2GJoules*0.3=960 MJoules of electrical energy can be had from that fuel with that generator.

From experience small sites (such as the caravan park at Douglas Daly Waters) typically need ~ 10 KVA (to keep the bar and kitchen fridges and pumps going). Working backwards 960Mj will last 27 hours @10KVA so on that basis 270 kWh cost $150 – to keep the maths simple I’ve assumed a power factor of 1 – hence, excluding maintenance and depreciation, their per kWh cost is $0.56 – around double the utility price!

Of course, if they offer “powered sites” they may need to run a second generator!

Obviously, subsidised diesel ($1.20 per litre I believe) would makes the cost of a kWh $0.44 (almost twice what ‘townies’ pay!) – and that too excludes maintenance and depreciation costs.

Let’s not forget that at such diesel-powered remote sites electricity also comes with noise and pollution – which is weird given that peace and quiet surely must be the imagined reward for living far away from the convenience of town-life?

That’s costing the business $219,000.00 per annum – not allowing for maintenance, depreciation or ‘hot days’ (when even more diesel is used) – and that’s assuming they get the $1.20 (subsidised) price – and ignores the cost they’ve got to pay to get it there!

It’s not like they don’t get enough Sun for PV to work for them.

Published by Malcolm Duffield

Malcolm Duffield provides advanced high-level sales coaching, ‘basic sales training’ and sales training for pre-sales and post-sales engineering staff. In ways markedly different to the typical classroom lecture approach. Like the game of ‘Go’ – selling is strategically complex, nuanced and more dependent on intuition than process. Sales – process alone is no guarantee of success because customers are humans, are fiendishly complex, intuitive and need to be met on their terms. Humans need to interact rather than merely transact. They have many needs, wants and aspirations – not all clearly stated. Having a proposal that is a good fit to the stated need is a start. Having a price that’s in the ball park will also help – but what will invariably make the difference between success and failure will be our ability to understand, connect with and provide value to the customer as a person. Focused primarily on IT sales, where solution and value, but above all human connection through respect, integrity and empathy, have to be brought together to win high-value deals - it would appear that other 'capital acquisitions' benefit from a similar approach. I have 30 years experience in such sales, and know what works and what doesn't work.