Signs of
recovery from the recent economic downturn are increasingly becoming noticeable
in many of the world's economy. The South East Asia and Gulf Cooperating Countries,
for instance, with its new-found economic and social buoyancy, is showing
renewed aggressiveness in infrastructure projects and massive commercial and
residential developments. Its neighboring region, the Indian Sub-continent, is
also enjoying an upturn. According to a recently published market report from
the Asian Development Bank, the South Asian region, to which the Indian
Sub-continent belongs, is predicted to grow by 5.3% in 2014 and by 5.8% in
2015. In fact, India alone is forecast to achieve growth rates of anywhere
between 5.5% and 6%.
Since the
industrial revolution, power has always been identified as a key factor in
encouraging economic growth, and that has not changed till today. As the demand
for energy exponentially increases in an expanding economy, with the spike in
construction and utility infrastructure projects, and the rise in population
and household and commercial consumption, the need to support the
Sub-continent's power requirements becomes ever more urgent. In order to
sustain the region's momentum, an ample supply of clean, viable and affordable
energy is imperative. In this light, the Indian Sub-continent should be able to
explore new energy sources and technologies that do not only promote energy
efficiency but also environmental stewardship.
Facing
power shortage
It is worthy
to note that some countries in the Indian Sub-continent are still experiencing
challenges in the context of supporting electricity demands. Power failure,
owing to several factors, including limitation in resources, low generation
capacity, extreme levels of demand, and derated capacity of power station
machinery, among others, has become an acute problem in several areas.
Take
Bangladesh as an example. An article from the Journal of Selected Areas in
Renewable and Sustainable Energy, titled “Power crisis and its solutions
through renewable energy in Bangladesh”, by Khairul Anam and Husnain Al Bustam
of the Islamic University of Technology, reports that only 10% of Bangladesh's
rural households has access to electricity, and that some parts of the country
will not be connected to the national grid until 2030. Despite the effort of
the national government to add power generation units to the national grid, the
areas that are connected to power sources are still suffering from severe load
shedding.
Even India
is not saved from power distribution woes. Majority of the country's supply is
derived from thermal or hydroelectric sources, and with the country's rapidly
growing economy and population, power generation facilities are increasingly
finding it difficult to cope up with the requirement. A manifestation of this
was the reported failure of the Northern and Eastern grids, which put
activities in cities such as Delhi to a halt. The negative effects of the
two-day partial power outage was reportedly felt across several segments, most
notably in the industrial sector.
Moreover,
several reports in national and regional publications cite that approximately a
third of India's population is not connected to electricity and that those that
are experience regular power interruptions.
Now,
what can be done
Unstable
electricity production and regular power interruptions bring about myriad
negative impacts to a country's economy, business and people. In today's world,
power is a fundamental element for any economy to function, as every sector of
the modern society, be it domestic, commercial or industrial, is heavily
dependent on electricity. Nowadays, a power interruption affecting critical
facilities, like hospitals, airports, telecommunications towers, data centres
and oil & gas installations, has the potential to put an entire country or
region to a standstill, and in light of globalisation, the consequences may
transcend national or regional borders.
AltaaqaGlobal CAT Rental Power, the global provider of temporary solutions, recognizes
not only the economic opportunities in the Indian Sub-continent but also the
pressing need to provide innovative and creative solutions to the region's
pressing power needs.
Altaaqa
Global offers state-of-the-art interim power generation solutions that are
viable, cost-effective and environment friendly. For instance, the company's
diesel generators are equipped with a fuel management technology that maximizes
fuel efficiency while minimizing plant shut downs by ensuring that sub-standard
fuel does not affect the system. Additionally, Altaaqa Global provides power
generators with gas, diesel or dual-fuel technology, specifically developed to
reduce fuel costs, hence a reduction in customer expenditure for electricity. It’s
dynamic blending dual-fuel technology, combining 70% gas and 30% diesel interim
power plants, not only cut back on power cost but also decrease operational
emissions.
The
key word is 'now'
Hiring
interim power generation plants as a stop-gap measure yields many advantages,
particularly when there is a foreseeable delay in the construction of permanent
power generation facilities or when the spike in electricity demand proves to
be seasonal.
In
the context of the above-mentioned case studies, countries in the Indian
Sub-continent are looking to mitigate the observed deficiency in power supply
by harnessing alternative sources of energy, including geothermal, solar, hydro
and nuclear. While the afore-mentioned alternative sources have recognized and
acknowledged merits and potential, they may require further research, legislation
and physical facilities to be operational; and this may take time.
In
a study conducted by the Federation of Indian Chambers of Commerce and
Industries in 2012, 61% of the companies that participated in the survey
reported more than 10% in production short-fall due to power interruptions.
Moreover, the participant companies also cited revenue losses between INR 1,000
and INR 40,000 per day, due to power cuts. The set-backs caused by power
fluctuations are similar. Naturally, businesses may not be able to survive
operational losses of this magnitude while waiting for permanent power
generation facilities to be functional. Needless to say, the situation calls
for an urgent solution.
Rental
power companies, like Altaaqa Global, are capable of providing solutions as
needed, when needed. Utility companies can hire temporary power plants in times
when demand outpaces the supply, when the electrical grid is unstable or when
power distribution networks are unavailable. This will allow them to bridge the
supply deficit without waiting for another day. Hiring power generators can
prove to be a viable solution to power supply inefficiency, while the permanent
power infrastructure is constructed.
'Falsus
in unum, falsus in omnibus'?
Not
all rental power companies are the same: 'False in one, false in all' does not
apply in choosing an interim power partner. While the selection of the
temporary power technology to be required may be indicated by operational
tendencies and budget allocation, the choice of a service provider may entail a
keener investigation and a more discriminating process of evaluation and
elimination.
In
choosing an interim power plant partner, utility companies in the Indian
Sub-continent should consider a provider's experience, support system, rate of
deployment, and equipment reliability and sustainability before signing an
agreement with it.
Experience:
A
provider should have a proven track record in delivering executable, measurable
and sustainable solutions to multifarious projects. The exercise of hiring a
temporary power company will be counter-productive if the company does not have
the technical experience to deliver what it promises.
Support
system:
The
rental company should have the spare parts and the human resources to carry out
after-sales support to installed and commissioned projects at any given
location.
Rapid
deployment:
The
interim power provider should have the capability to react, deploy, mobilise
and commission temporary power plants at a moment's notice. This means that the
provider should have available equipment and manpower on the ground to carry
out a rapid delivery.
Equipment
reliability and sustainability:
The
service provider should have the adequate technology to address the unique
needs of different clients. In addition, in light of an increasingly rigid set
of licensing and sustainability regulations of most of the governments in the
world, the rental company should be capable of providing technologies that
encourage environmental stewardship, while maximising fuel efficiency. Systems
that operate on liquefied natural gas (LNG) and on compressed natural gas
(CNG), for instance, are already available.
Load Shedding
Altaaqa
Global can provide the optimal solution to customer’s energy needs.
Load
shedding is detrimental to progress wherever and whenever it is applied.
Switching off power in key areas to reduce the demand for energy is an
inconvenience that can be avoided by hiring interim power plants to support
existing power grids or at the site itself (factories, for instance). This
allows day-to-day activities in the business and urban sectors to continue.
Load
shedding can be avoided by hiring an interim power plant either for the utility
provider’s power grid or directly for the consumer’s business sites.
Load
shedding is a necessary, though inconvenient, procedure where electricity is
shut down to avoid overloading the system, which, in turn, results in a total
blackout. This usually happens when the demand for electricity outstrips the
ability of the system to supply for it. These blackouts generally occur
locally, but may even spread to large areas, such as a whole country or even a
continent. There are two causes for blackouts: Lack of generation volume and
deficient infrastructure to distribute enough power to the locale where it is
needed.
Load
shedding normally happens in countries where the energy distribution is
hampered by poor and inadequate infrastructure. The opposite happens in
advanced countries due to well-managed systems and adequate infrastructure.
All in all,
load shedding has the capability to incapacitate the daily activities of a
country. The negative effects are numerous and may lead to economic
instability.
Load
shedding (also known as rolling blackout, brownout or electricity
interruption), is commonly utilized in industrial, large commercial, and
utility operations. While waiting for the permanent solution, the quickest way
to end load shedding is to hire a temporary power plant.
Facility Shutdown or Power Plant
Maintenance
A proactive temporary power plant
reduces risks and costs during shutdown/maintenance
There are
times when utility providers need the support of supplementary power when
current power facilities undergo maintenance; are under replacement or are
being upgraded to the latest, more efficient technologies. Altaaqa Global’s interim
power solutions represent a reliable alternative during these scheduled periods
of outages with the aim of minimizing interruption in electricity supply.
A period of
interruption, especially of electric current, means that the utility
infrastructure and its associate power facilities are disrupted for a period of
time.
A shutdown
is a planned general outage of equipment used by a business for production or
delivery of service, usually caused by maintenance or upgrading. All main power
and other utilities are cut off for a given amount of time, disrupting the activities
of normal business, which may lead to customer inconvenience. That is why
minimizing the effects of a shutdown is critical.
Managing Risks
Managing
shutdowns is a precise operation. Steps must be taken to ensure the proper flow
of procedure. Altaaqa Global manages not only internal risks but also external
risks. This list guarantees a well-orchestrated shutdown:
• Packaged
and turnkey temporary power equipment (generators, fuel tanks, transformers,
switchgears and all power ancillaries)
• Materials management & spare
parts
• Utility supplies
• Engineering services
• Utility company engineering
departments
• Regulatory compliance and insurance
• Qualified & CAT certified
manpower
• Work permissions from authorities,
neighboring shared services or properties
• Shutdowns
should be planned before implementation, a necessary action that will reduce
the time the facility is non-operational.
Shutdowns should be planned
before implementation. This is a
necessary action that will reduce the time when the facility is
non-operational. The shutdown plan and Altaaqa Global’s temporary power
solution is divided into three specific stages:
• Pre-shutdown – Site preparation and
commissioning of the temporary power plant
• Shutdown – Temporary power plant is
running continuously, 24/7
• Post-shutdown – Temporary power
plant demobilizes
The above approach
is vital because maximizing the maintenance will shorten downtime.
Resourcefulness, creativity and collaboration between everyone involved is
important in minimizing the outage period.
Peak Lopping
Avoid being
charged a premium or being asked to lower power consumption
during peak production
Hiring a temporary
power plant during times when peak production is high, to augment the existing
power supply, is an option industrial companies can choose to take. There are
also times when utility companies set ceiling caps for electricity consumption
or when they charge you extra during peak hours. It is then more economical to
hire a temporary power plant to ensure production is continuous.
In your peak
production month, the utility company tells you: “Lower your power consumption
or you will pay a hefty penalty!” Will you sacrifice opportunity? We can
provide a load lopping solution that will guarantee the continuance of your
production without paying a penalty.
Reasons to
hire a temporary power plant:
- Industrial companies have the option to hire a temporary power plant when power demand is high during peak production if the permanent utility power provider could not supply extra power
- When utility companies set a ceiling cap for electricity consumption but one requires more power
- If utility increases its tariff rate during peak hours and it is more economical to run an alternative power source
- If the company incurs monetary losses due to stiff penalties imposed by utility companies for over-consumption of electricity
- Peak lopping is used to describe how utility companies lop- or cut-off electricity when a consumer reaches the peak of consumption. This affects domestic and industrial users. However, the latter is affected more. Industries are penalized when they exceed a certain cap by being charged extra. For example:
Factory A
uses the same amount of power as Factory B. The difference is that Factory A
uses in two days what Factory B uses in a month. Therefore, Factory A will pay
more because they will require more energy in those two days and the utility
company has to get pricier, higher capacity equipment to be able to supply the
needed power.
Emergency Power
Altaaqa
Global understands that every minute counts during a power outage
When
factories, industrial zones and tourism areas experience interruptions in
electricity, the serious effects to the economy can adversely affect growth and
eventually lead to severe losses. Causes of emergency power generation may be
attributed to natural disasters, accidents and situations where the human
factor is involved. Whatever the cause of the power interruption, Altaaqa
Global can rapidly deliver a temporary power plant on short notice.
Emergency
power is required when the current power supply is inaccessible and a quick
solution is immediately due.
We provide
temporary power in all types of emergency cases, such as:
- Weather calamities
- Man-made errors or accidents resulting in power outages
- Natural disaster
- Post-conflict
- There are cases where utilities experience energy shortages because of reduced power from a next-door country. This may happen due to technical failure or an unexpected contractual change. Whatever the case is, consumers urgently require additional electricity either for base load, continuous operation or for emergency back-up and, hopefully, manage the situation.
Altaaqa
Global’s temporary power products and technologies are the most efficient
solution for a fast-track capacity application because their modular design has
been custom engineered for rapid mobilization and start-up.
We guarantee
energy when you need it. Fast.
Case Study
CAT® rental power provides
strong, coordinated response to customers after Hurricane Sandy.
On October
29, 2012, Hurricane Sandy reached New York City, flooding streets, tunnels and
subway lines, causing massive power outages. When devastation like this occurs,
quick response is essential. The Electric Power team and the Cat® Dealer
Network supported the recovery efforts by sending equipment, personnel and
other resources to help the affected areas.
After the
storm hit, more than 1,400 generator sets — creating an astounding 1.1 GW of
power — were deployed to customers, including gas stations, hospitals, and
commercial and industrial facilities. In addition to the generators, dozens of
transformers and fuels tanks, 2.5 miles of power cable and hundreds of light
towers, pumps and heaters were also sent. CAT Rental Power responded directly
to customer demand or sent equipment and personnel in support of the recovery
effort.
Back up or Standby Power
Don’t let
the lack of power slow your company down
From planned
shutdowns to unplanned power load shedding, a temporary power plant providing
backup power to your facilities is critical to ensuring the power you require
is there when you need it. Altaaqa Global is always ready to get you set up and
running quickly with the largest fleet of generator sets and ancillary
equipment.
Shutdowns
are a costly, but necessary step to maintain equipment and ensure that it is in
the best condition. Petrochemicals, pharmaceuticals, refineries and other
industries that heavily rely on equipment can have their production severely
affected by long periods of shutdowns. Imagine a long line where the product
must pass through several stages and you could already imagine how difficult it
is to stop a certain stage without affecting the others. That is why scheduling
and minimizing the time it takes to do maintenance is vital to the flow of
production. Hiring generators is essential to avoid prolonged downtime. This is
most true in industries that use refrigeration as part of the production stage.
Some products have to be kept at a certain temperatures, so maintenance
operations have to be properly scheduled to prevent spoilage or deterioration.
Altaaqa
Global can provide multi-megawatt power generators that suit your large industrial
power needs.
- Scheduled power shutdowns
- Remote construction sites
- New or expanded facilities
- Seasonal peak load needs
- Unscheduled downtime on equipment
We can
rapidly deploy anytime, anywhere and fulfill power requirements. We’ll help you
find solutions and keep your production going.
Peak Shaving
How to maximize your production
without paying a higher price
Most
companies usually reduce the amount of energy used during peak operating hours
to avoid paying the higher rates. The increased charges are usually applied
during noon until 6pm where consumption is highest although it may vary
depending on location. At Altaaqa Global, we realize that peak shaving
solutions are part of a portfolio of services we can offer to clients.
Temporary power plant companies like Altaaqa Global can help maximize the full
production potential of a company.
Demand for
electricity is at an all-time high. As more and more industries develop, there
are markets where the need for power exceeds the supply. The demand varies
according to seasons, caused by temperature extremes or lack of rainfall in
hydro dependent countries. With peak shaving solutions, a temporary power plant
is hired to supply electricity during peak demand periods.
Many
industries and businesses often pay for consumed electricity on a need-to-use
basis. Usually, this means they are charged more during peak operational hours
from noon until 6:00pm and less for the rest of the day. That is why Altaaqa
Global can supply you with the necessary solutions to avoid peak shaving and
allow your facility to perform optimally when you need it to. This
cost-efficient way of getting power without having to resort to peak shaving is
vital to productivity.
Altaaqa Global is more than
capable of providing long or short term, cost-effective peak shaving solutions
when you need it most. Along with technologically advanced generators and power
specialists to assist you every step of the way, it is our assurance to help
you and your facility maximize productivity.
Conclusion
To maintain the
momentum that it is presently enjoying, it is imperative that the Indian
Sub-continent take steps and measures to mitigate the economic and industrial
impact of the present power shortage. Foraying into the domain of renewable
sources of energy, like geothermal, solar, hydro and nuclear, has the potential
to be a long-term solution, but waiting for the facilities to be operational
may take time, owing to legislative and infrastructure requirements. Rental
power companies, like Altaaqa Global, proposes solutions that address the
issues of urgency, cost-efficiency, reliability, energy-efficiency and
environmental safety. In recognition of the indispensable role of electricity
in today's modern society, it is advisable that utility companies should
provide for a contingent and power solution in cases of power interruption that
may lead to operational delays and, ultimately, negative economic and financial
consequences.
End
*The foregoing article was originally published in the May 2014 issue Power Watch India.
About
Altaaqa Global
Altaaqa
Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc. to
deliver multi-megawatt turnkey temporary power solutions worldwide. The company
owns, mobilizes, installs, and operates efficient temporary independent power
plants (IPP’s) at customer sites, focusing on the emerging markets of
Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South
East Asia, the Middle East, and North Africa. Offering power rental equipment
that will operate with different types of fuel such as diesel, natural gas, or
dual-fuel, Altaaqa Global is positioned to rapidly deploy and provide temporary
power plant solutions, delivering electricity whenever and wherever it may be
needed.
PRESS
INQUIRIES
Robert
Bagatsing
Altaaqa
Global
Tel: +971 56
1749505
READER
REQUESTS
Altaaqa
Global
Marketing
Department
P.O. Box
262989
Dubai,
United Arab Emirates
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