I hold about equal values of two stocks.
Calpine (USA) - is the leader in combined cycle and cogeneration in the USA. Calpine's competition bought old fuel guzzling fossil fuel
plants and simple cycle gas turbines, hoping to corner the energy trading market. Calpine stayed the course, building new plants that are 30-40% more efficient. It is a true American innovator.
Mosenergo (Russia) - Provides electricity, and district heat for Moscow region. It's majority shareholder is RAO EES which is majority owned by the Russian Government. Russia needs to reform it's energy sector and is now beginning to install combined cycle power plants. This combined with improvements in insulation and new building automation systems promise to improve efficiency about 30%. This translates into increased energy exports, and economic improvement.
The stakes: The energy efficiency of America's power plants has improved little since the 60's until Calpine came along. The USA imports more than 50% of the country's oil supply and increasing amounts of natural gas. Large scale LNG imports may be necessary in the years ahead. The effects of corporate intrigues in the Enron era and the lack of a US energy strategy are now becoming apparent. Waste of energy and resources is a big problem.
Russia is a energy exporter with large reserves
of oil and natural gas. Russia is hindered by lack of capital and corruption in the recent era.
They have ample technical resources and a low wage skilled workforce. The energy sector remains to a great extent, a central state controlled subsidised monopoly. |
