Boston Strategies International

Oil, Gas & Power Generation Supply Chain Leadership

Power Generation




Boston Strategies International deals across the entire range of activities, including Financing, Planning, Construction, Operation, and Disposal stages of:
  • Coal-fired Thermal Power Plants
  • Natural Gas-fired Thermal Power Plants
  • Cogeneration (CHP) Plants
  • Integrated Power and Desalination Plants

BSI's Power Generation Solutions
In addition to our core solutions, we offer these solutions for Power Generation clients:

Project viability assessment
Due to long investment cycles, such as for power plants, decision-making must account for a high degree of uncertainty. Moreover, demand varies over time as demographics and economic conditions change, and equipment and service prices change over extended capital and construction timeframes. BSI deploys proven financial and risk management tools to support capital investment decision-making.

Technology cost-benefit analysis

New technologies, such as turbine heat recovery, have little cost or benefit history, but can yield substantial benefit. BSI’s highly-qualified economists address complex issues involving sophisticated costing and indirect benefit assessment methods to support decisions with broad impact, such as technology selection.

Equipment lifecycle costing

Initial cost is rarely the most reliable indicator of lifecycle cost for capital-intensive and highly engineered equipment and systems such as steam turbines. Moreover, small improvements in reliability can be extremely valuable if they increase operating efficiency or reduce downtime. BSI combines advanced economic methodologies and engineering expertise to help you make the best long-term technology and vendor choices.

Product or solution “should-cost” analysis
The prohibitive cost of outages makes reliability imperative. BSI uses its seven-step methodology to derive how much products, services, and solutions should cost.

Structuring revenue and profit-sharing agreements with governments

Many power generation contracts are based on performance guarantees, with penalties and incentives based on standards established in charters and contracts . This can align both parties on the benefits, but should the benefits then be split between the buyer and the seller, and if so, how? BSI has 20 years of experience in structuring complex agreements.

Negotiating framework agreements with suppliers
Partnerships for critical inputs such as feedwater treatment, should yield far more than cost reduction. They should result in enhanced innovation and a more agile response to changing market and regulatory conditions. Long-term partnerships should combine the best of both parties’ strengths and achieve dramatic results. BSI brings to bear its proprietary optimization models to determine the optimal number of suppliers and contract term, and its industry experience to help negotiate fruitful long-term partnerships.

Evaluating bundled purchase and operating/maintenance agreement proposals

The interrelationship between components, such as in a smart grid, requires a systems view, but it can be difficult to compare system bids if they are different on many dimensions. BSI uses its proprietary market intelligence and cost and price benchmarks to credibly evaluate bundled bids.

Optimizing inventory levels

The value of inventory depends on the urgency of the need (for example, it is worth more if a plant is down), complicating the issue of how many spares are optimal, where they should be located, and how much they are worth. BSI’s inventory management optimization aligns processes, systems, and data to ensure inventory is available at the right time and place.

Featured BSI Articles on Power Generation
Balancing Economic Risks: Tips for a Well-Structured Deal
The amount of infrastructure development currently underway worldwide is impressive by historical standards, and seems to be about to crest in the Middle East. The current wave of investment will drop off, starting in 2015, and when that happens there may be pressure to revisit some economic aspects of the agreements. This article proposes tools and techniques for owners and operators to minimize the economic risks of large capital projects in the Gulf Co-operation Council (GCC).

Click here for free download.



Owner and Contractor - Managing the Balance of Power and Risk

David Jacoby, President of Boston Strategies International, participated in a panel discussion at the PowerGen conference's Strategic Power Track in Doha, Qatar. The topic was how to manage the balance of power - and of risk - between owners and contractors.

Click here to read this brief synopsis of the panel's discussion.



Electric Utilities Worldwide through 2014
Sales of electric power in the Middle East will nearly double between today and 2014, and other areas are increasing consumption at fast rates. This report analyzes the global market and delivers recommendations to help utilities, equipment providers, and commercial buyers adapt and succeed in this dynamic environment. It explores the market for Electric Utilities worldwide through 2014, providing regional forecasts of demand for electricity. It also includes a cost breakdown covering generation costs, materials, and labor. Tables include a ranking of the world's top 10 electric utilities, as well as price trends by region and segment, and the outlook for capital investment.


Natural Gas Utilities Worldwide through 2014
Growing demand for Natural Gas in Asia will drive even more capital investment there over the coming decade. This report analyzes the global market and delivers recommendations to help both utilities, equipment providers, and commercial buyers adapt and succeed in this dynamic environment. It explores the market for Gas Utilities worldwide through 2014, providing pricing and demand forecasts for natural gas and gas utilities. Tables include a ranking of the world's top 10 natural gas utilities, price trends, and the outlook for capital investment.


Transmission and Distribution (T&D) Equipment Worldwide through 2014
Sales of electric power in the Middle East will nearly double between today and 2014, and other areas are increasing consumption at fast rates. This report analyzes the global market and delivers recommendations to help utilities, equipment providers, and commercial buyers adapt and succeed in this dynamic environment. It explores the market for Electric Power Transmission and Distribution Equipment worldwide through 2014, providing regional forecasts of demand for generators, transformers, cable, line poles, and related accessories. It also includes a cost breakdown covering major components, cable, iron and steel parts and accessories, and labor. Tables include a ranking of the world's top 10 T&D equipment manufacturers, price trends by region and segment, and the outlook for capital investment.


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