Business

Many alternative approaches for determining a useful definition of combined heat and power fossil power plant efficiency have been proposed, although most fail to produce a universal definition. This follow-up report to our February story on plant efficiency shows how an exergy analysis supplies the elusive solution.

For the past 26 years, Cambridge Energy Research Associates (CERA) has hosted an annual CERAWeek conference in Houston that is renowned for high-profile attendees from around the world. During the week of March 8, security was tight as oil ministers from the Middle East and CEOs from the largest oil and gas companies and electric utilities rolled into Houston to exchange ideas and forecasts. More than 1,200 delegates from 55 countries attended to hear more than 100 distinguished speakers discuss a business that seems to have renewed optimism about the future.

Mexico, one of the few countries in Latin America that has resisted the tide of liberalization, retains a monopolistic state player in the electricity market. In treading its own path by maintaining the government’s predominance in the sector, Mexico has an important question to answer: Is this path sustainable?

Mexico enjoys considerable fuel diversity for powering its generating plants, and its goal is to become even more diversified.

Mexico has already developed substantial large hydro and geothermal resources. However, without policy changes and government-sponsored financial incentives, unconventional renewable sources are taking the equivalent of baby steps.

Mexico’s federal government retains almost total control over who builds and owns what electricity infrastructure. But if you know how to work within the strict constraints, it is possible to engage in profitable projects.

NAFTA was both good and bad for Mexico. In both cases, it required a different approach to doing business, and the effects of that shift are still playing out.

Despite the political kerfuffle over Obama administration loan guarantees for new nuclear generating plants, the ubiquitous hand-wringing about fossil fuels and climate change, and the hype about wind and solar renewable power generation, the new reality of natural gas may be a game-changer.

State control of the electricity sector may mean fewer customers, but it also can mean clearer expectations.

Employee communications is one of the hardest management jobs. It puts the burden of truthfulness on both management and its employees.