Boston Strategies International

Oil, Gas & Power Generation Supply Chain Leadership

Renewable Energy




Boston Strategies International deals across the entire range of activities, including Financing, Planning, Construction, Operation, and Disposal stages of renewable power facilities, particularly those operating in:
  • Wind Power
  • Solar Power
  • Biomass-fueled Power Plants
  • Municipal Solid Waste
  • Methane

BSI's Solutions for Renewable Energy Providers
In addition to our core solutions, we offer these solutions that are tailored specifically to the unique challenges of wind, solar, and other renewable energy companies.

Project viability assessment
Due to the long-term nature of investments in wind farms, 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 monopile vs. tripile installation, 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 high-capacity generators. 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 turbines, blades, and towers 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 those needed for deepwater offshore wind farms, requires a systems view, but it can be difficult to compare supplier bids if they are different on many dimensions. BSI uses its proprietary market intelligence and cost and price benchmarks to credibly evaluate bundled proposals.

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 Renewable Energy
Green Supply Chains by 2020
For nearly 30 years, companies have been doing everything they can to improve efficiency both within and between organizations, which was in large part responsible for the global growth throughout the 1990s and early 2000s. Now the returns are diminishing and the very success that has enabled complex multinational supply chains is under attack for wasting energy and creating pollution. It is time to put supply chain in the public political agenda by asking governments to front major subsidies and tax incentives to help make supply chains truly green.

Click here for free download.




Energy Prices Reshaping the Supply Chain: Charting a New Course? (2007 State of Strategic Sourcing Study)
Would a doubling of transportation or inventory carrying costs change your supply chain strategy? Would a 70% increase in the cost of Chinese-sourced products cause you to re-evaluate your sourcing plan? Can your supply chain flex to adjust to major changes in input costs? Energy volatility appears to be here to stay, and companies that are good at managing supply risk will have more cost-effective and resilient supply chains. Boston Strategies International's fourth annual State of Strategic Sourcing Study explores these issues and more.
©2007 Boston Strategies International

Click
here for free download.



Planning your Carbon Footprint
If you’ve never thought much about your carbon footprint, you may think of it as the direct pollution emitted by your productive assets. The reality is that the carbon footprint is much wider than your direct costs, and making an effective program requires analysis, forward technology vision, and a pilot program.

Click here to download the article.



To request more information on our firm or our products and services, please click here.