Power Contract Optimization

The global trend to restructure and deregulate Power Markets has resulted in increasingly complicated power contracts for TMP mills. To stay competitive in the current market, TMP mills must take full advantage of possible cost savings in their Power Contracts.


Common power contracts include elements like:

  • Real Time Pricing - Power prices that vary with market conditions
  • Load Limits - Daily, monthly, on/off peak, etc load limits which when exceeded result in large financial penalties
  • Load Variation (sometime called Load Factor) - Incentives for low load variability

The Power Contract Optimizer can be configured to address any or even a combination of these issues. For variable pricing contracts, the optimizer includes Valmet’s patented Time of Day Pulping Application which combines a dynamic pulp mass balance with a power price ranking model customized for each mill’s power market. The solution managers production and inventory to meet the requirements of the paper machines wile minimizing power costs.
In addition to this, Valmet can customize a production/energy optimization strategy to minimize the power cost for many other power contract formats. This typically includes techniques like peak load avoidance, load shaping, and production/load maximization.


  • Power savings at one site resulted in 30% power cost savings