Divide and Conquer: How Decentralized Power Generation Can Alleviate Sub-Saharan Africa’s Electricity Challenges

Decentralized power facilities, sources that generate electricity much closer to the consumers, are touted to be vital in improving Sub-Saharan Africa’s power supply situation. We take a close look at their benefits.

It has been highlighted, time and again, that Sub-Saharan Africa is home to close to a billion people without access to reliable electricity. The region’s electricity challenges may be attributed to several factors, most notably to insufficient connectivity particularly in rural areas, and intermittent power supply.

A recent study by Afrobarometer, a pan-African research network, illustrates that only 45% of rural areas enjoys access to the electric grid across 36 African countries considered. In fact, countries like Burundi, Burkina Faso, Sierra Leone, Niger, Guinea, Liberia and Mali have extended the electricity grid to only a third or less of their territories. The inadequate grid extension and connectivity is stark in the West and East African countries, and in a number of Southern African countries, including Zimbabwe, Namibia, Zambia, Mozambique and Malawi.

But, even as various areas in Sub-Saharan Africa are connected to national power network, they are still not guaranteed to receive a constant reliable supply of electricity. For instance, 14% of grid-connected consumers in South Africa, 44% in Zimbabwe, 33% in Zambia, 23% in Botswana, 19% in Namibia and 15% in Kenya, say they still suffer from regular power outages and load shedding. This can be largely attributed to inadequate power generation, high transmission losses, and limitations in power distribution.

A case for Decentralized Power

Decentralized power generation systems can help countries in Sub-Saharan Africa alleviate their present power generation and transmission challenges. Several technologies can be implemented as a decentralized power generation system, including solar, wind, hydro, and temporary power plants running on diesel or gas.

Courtesy www.gineersnow.com

Decentralized power generation systems will prove beneficial on several levels to Sub-Saharan African countries. Below are some of the highlight advantages of decentralized power generation technologies:

Flexibility

Decentralized power generation systems, like rental power plants, can be easily mobilized, installed and operated anywhere in the world, even in the remote areas of Sub-Saharan Africa. They can even be installed in areas without sub-stations, and can be directly connected to the grid regardless of its quality or age.

They can be completed and powered on in a matter of days, and can be rapidly demobilized once the area of service is already connected to the permanent centralized power plant. They do not require a huge upfront investment, and as such, do not have long payback periods. Instead, governments or power utility providers can pay for the rented electricity in regular intervals over a contracted term.

An example is Altaaqa Global’s natural gas temporary power plants in Douala, Cameroon, which were installed and powered on in as little as 21 days from the time the equipment arrived at the intended sites. The power plants, because they comprised modular and containerized power equipment, were easily delivered from the point of origin in the Middle East, to the port in Douala, to the power plant sites, and were successfully installed despite space limitation.

The power plants have been consistently producing a combined 50 MW since they were turned on, easing the pressure on the main grid and reducing electricity demand at peak times. They have been instrumental in lessening the power supply deficiency and reducing the instances of load shedding in Douala.

Scalability

Temporary power plants, as a decentralized power generation system, are highly scalable in that their output can be increased or decreased depending on the prevailing requirement. The power provider can simply add or subtract generators to or from the power plants to customize their output. The result is that the rental power plants generate the exact amount of electricity as demanded, so the power plants do not inefficiently run on part-load, and that the governments or the power utility providers do not pay for unutilized capacity.

Diversity

As above, there are several technologies that can be implemented as decentralized power generations systems. The good news is these technologies may complement each other to ensure their efficiency and reliability. For example, temporary diesel or gas power plants can support solar or wind energy sources at times when sunshine or wind is insufficient to produce the desired amount of electricity. Rental power plants can also take up the electricity load during low-rain or dry seasons, when the hydropower systems have limitations in producing electricity.

Efficiency and Reliability

The US Energy Information Administration reports that up to 7% of the electricity generated by central power plants is lost in transmission and distribution. Turning to decentralized power generation technologies, like temporary power plants, can reduce the transmission and distribution losses because they are installed nearer to the consumers.

Moreover, rental power plants are regularly serviced and maintained by trained and qualified service engineers and technicians, and monitored and evaluated by competent certification bodies so their optimal energy performance and reliability is guaranteed.

For instance, Altaaqa Global’s 50 MW natural gas power plants in Cameroon have recently been awarded an ISO 50001:2011 certification for energy performance, making Altaaqa Global the first and only rental power company to have received the recognition. The plaudit was a testament to the power plants’ energy efficiency, cost-effectiveness and environmental stewardship.

In addition to the above, decentralized power generation technologies can support various environmental initiatives in vigor in several Sub-Saharan African countries due to their environmental conscious operations. As a case-in point, temporary power plants running on natural gas comply with worldwide emission standards, while solar or wind power sources are completely renewable and contribute in conserving natural energy resources.

For example, Altaaqa Global’s natural gas temporary power plants in Cameroon was handpicked by Eneo to support its existing power facilities, owing to their reliability, energy efficiency and environmental consciousness, which perfectly fits Cameroon’s sustainable energy initiatives.

Electricity and Africa’s Development Agenda

As an emerging region, Sub-Saharan Africa needs electricity to support its economic priorities and other development areas. At present, even as the economic focus of governments in Sub-Saharan Africa are in areas directly related to basic issues of livelihood (employment, healthcare, water supply and agriculture), they are gradually working on various initiatives to ensure the region’s energy future. While their long-terms plans are coming to fruition, decentralized electricity technologies, like rental power plants, can supplement existing centralized power facilities to provide the electricity when and where needed.

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A Case for Distributed Power Systems in Southeast Asia

The observed inadequacy in the region’s current electricity infrastructure have prompted Southeast Asian countries to find power solutions in various forms of distributed power generation

Rapid economic development, a continuous growth in population, and increased domestic and foreign investments across key industries have all contributed to the remarkable increase in Southeast Asia’s power consumption in recent years. The region’s power demand has risen by 2.5 times in the past 20 years, and by 2040, Southeast Asia’s electricity requirements is likely to triple, for which an additional power generation capacity of approximately 400 GW is said to be required.

Courtesy www.gineersnow.com

In the interest of maintaining a healthy economy and attracting further foreign investment and activities, countries in Southeast Asia have ramped up their spending in infrastructure, including in roads, railways, and residential and commercial facilities. This, among other factors, has caused the region’s power demand to exponentially expand. And while Southeast Asian governments and allied stakeholders are also funding the building of new or the refurbishment of existing power facilities to support long-term electricity requirements, the current shortage in power supply within the region, not helped by constrained transmission and distribution facilities, is making it challenging to satisfy the immediate electricity demand.

The observed inadequacy in the current power infrastructure, delays in the construction of permanent power generation facilities, and the heightened need to fulfill the region’s immediate power requirements have prompted Southeast Asian countries to find solutions in distributed power generation. 

Distributed Power Generation in Southeast Asia

According to global research and consulting firm Frost and Sullivan, the overall installed capacity of the distributed power generation market in Southeast Asia is in the area of 20,450 MW in 2015, which can scale up to 34,747 MW by 2020.

Among the countries in Southeast Asia, the Philippines, Indonesia, Myanmar, Thailand and Vietnam are considered to be high-potential territories for distributed power based on market potential and available resources. For instance, in the Philippines and Indonesia, distributed power generation facilities can rapidly bring power to provinces that are currently not connected to the countries’ national grids due to isolation and remoteness. While in Myanmar, distributed power generation systems can provide electricity to smaller load centers, considering that the country’s overall electrification rate is only 26% and the transmission line losses stands at 25%.

Moreover, more than 60% of the land in Thailand, Myanmar and Vietnam are greatly suitable for large-scale solar farms, with substantial irradiance levels between 1,200 kWh/m2/year and 2,000 kWh/m2/year. Overall, Southeast Asia is touted to have an annual global horizontal irradiance ranging from 1,200 kWh/m2 to 1,800 kWh/m2, making the region highly ideal for developing solar power plants.

Key Types of Distributed Power Systems Installed in Southeast Asia

The key types of distributed power facilities installed in the region include biomass and waste-to-power, solar photovoltaic, and diesel/HFO/gas temporary rental power plants. Hybrid power plants and micro-grid systems are reportedly also being developed.

Biomass and waste-to-power plants are ideal to supply the captive power needs of small- and medium-scale industries. This type of distributed power system enjoys wide government support across Southeast Asia, and benefits from abundant biomass resources, particularly in Indonesia, the Philippines and Thailand.

Solar PV facilities, on the other hand, are gaining ground across the region, thanks to policy support and incentives. Thailand is at the forefront of the solar PV market in Southeast Asia, with an estimated capacity additions of approximately one GW in 2015 alone.

Temporary power plants running on diesel or HFO still dominate the rental power segment in Southeast Asia, owing to significant cost-savings, rapid installation, wide availability of fuel, and inherent flexibility of use. Temporary power plants running on gas are also gaining popularity in the region, in recognition of their cost and environmental benefits.

By going for the rental power option, one avoids the need for a significant upfront investment, and the long lead times associated with the construction of permanent power generation facilities.
Industry studies conducted across Southeast Asia reveal that a permanent centralized power plant may take around five to ten years to become fully operational due to the obstacles created by environmental laws in the region and land acquisition requirements, compounded by overall construction delays. While waiting for the power plants to be constructed and activated, power companies in Southeast Asia, the likes of Meralco and the National Power Corporation in the Philippines, or the Perusahaan Listrik Negara in Indonesia and the Vietnam Electricity Company, will find numerous benefits in setting up temporary rental power plants to meet the immediate power demands of their countries.

Temporary power plants are also scalable, in that its output can be tailored to the existing electricity demand of a community, a city or a province. They can also be installed even in areas with limited power infrastructure, say where substations are absent, because they can be directly connected to the grid having been equipped with the latest protection systems and advanced transformation and switching equipment.

When the permanent power plants are completed, the rental power plants can be easily and completely demobilized, thus leaving no power facility not used or that will require further maintenance and servicing.

For more information on temporary power plants on diesel, gas or bi-fuel, please visit: http://www.altaaqaglobal.com

The Growth of Distributed Power in Southeast Asia

As Southeast Asian economies continue to grow in the coming years, the region’s demand for electricity will proportionally increase. While the region’s governments are implementing long-term programs to respond to future power needs, power utilities in Southeast Asia, including Tenaga Nasional in Malaysia or the Electricity Generating Authority of Thailand, can take advantage of the availability of distributed power generation systems, like temporary power plants. Distributed power facilities can help overcome topographical challenges in delivering power, circumvent power transmission and distribution limitations, and boost the electrification rates of various countries in Southeast Asia.



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Sources consulted:

https://ww2.frost.com/news/press-releases/vast-opportunity-distributed-power-generation-solutions-demand-power-southeast-asia-soars/

“Distributed Power Generation Enables Power Plants to Rapidly Address the Demand for Power in Southeast Asia”. Frost & Sullivan.

https://renewablesnow.com/news/se-asia-to-hit-34-7-gw-of-distributed-generation-by-2020-528745/

https://www.iesingapore.gov.sg/~/media/IE%20Singapore/Files/ASIR/PreConference_workshop_Sharad_Somani.pdf

http://powerstruggle.discoursemedia.org/deepdive/southeast-asia-access-to-energy-research-brief/

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The Electricity Rat Race (Part 1): Strategies of the Middle East Power Sector to Keep Pace with the Energy Demand

The Middle East power sector has been striving to satisfactorily match the region’s power demand. And while the requirement is exponentially growing, investment in the sector is observed to remain incremental. Altaaqa Global, a leading global provider of multi-megawatt temporary power solutions, shares its thoughts on the current regional power market and sheds light on some of the region’s strategy to stay in, or even win, the so-called “race”. 


The demand for electricity in the Middle East has been steadily increasing in the past several years. It can be ascribed to several general factors, including constant population growth with the arrival of tourists and new residents, rapid urbanization, a remarkable spike in consumption during peak summer months, low electricity prices and gradual improvements in income levels among households and businesses. As the demand is expected to continue rising in the coming years, the need to expand the region’s current generating capacity is growing ever more urgent.

In order to satisfy the projected power demand from now till 2020, the GCC alone, which represents 47% of 148 GW of the current power generating capacity of the region, needs to ramp up its power capacity by an average of 8% year on year. This will entail an investment of USD 85 billion to add 69 GW of generating capacity, on top of USD 52 billion to construct transmission and distribution facilities.

A close look at the region’s power demand

To better understand the state of the region’s power market and the scale of expansion that needs to be done in the near future, let us throw the spotlight on the current power situations of the major countries that comprise it.

The power consumption the United Arab Emirates has more than doubled in the past 10 years. According to estimates, the UAE’s gross domestic electricity consumption will reach 141 TWh in 2020, up from 103 TWh in 2014. The considerable growth in power consumption in recent years can be largely attributed to the country’s preparations for the World Expo in 2020, during which about 25 million tourists are expected to visit the UAE.

With its current electricity demand, Saudi Arabia needs to invest at least USD 140 billion by 2020 to uplift its generating capacity from 51.5 GW to 71 GW. The persistent rise in power demand in the country is attributed, to a large extent, to its continuous investment in several sectors, including public infrastructure, utilities, healthcare and education, to name a few. Thus, the sustained construction and industrial activity, coupled with an increasing electricity demand from its residents and businesses, cause the country’s power requirements to grow.

Qatar is experiencing a period of heightened construction activity, as the country gears up for the upcoming FIFA World Cup 2022. The related infrastructure development (building of eight new stadiums, renovation of three existing stadiums, and the establishment of Lusail City), expanding transportation network (building of Doha Metro Rail and expressways), surging public and private investments, and booming hospitality sector are driving the growth of the electricity requirement in the country.

According to a recent report released by the Oman Power and Water Procurement Company (OPWP), Oman’s peak average annual growth in power demand for the next seven years will be approximately 8%, rising from 5,565 MW in 2015 to 9,529 MW in 2022. OPWP ascribed the increase in demand for power to continuous residential growth, overall economic expansion, and the rapid development in industrial estates or free zones and tourism projects.

Kuwait’s peak electricity requirement is set to almost double by 2020. From the current demand of around 15,000 MW, Kuwait’s Electricity Ministry estimates that in 2020, the country’s electricity requirement will jump to 17,000 MW. The Ministry attributes this notable growth trend to the country’s harsh weather conditions, particularly during the summer months, and the highly subsidized energy tariffs. With one of the highest rates of energy consumption per capita in the world, meeting electricity demand has become a growing concern for Kuwait.

Amidst population growth and industrial expansion, Bahrain’s electricity demand is continuously increasing. Bahrain’s available generation capacity at the moment is 3,922 MW during peak summer months, with around 600 MW of spare emergency import capacity through GCC’s interconnected grid. For the country to satisfy the projected rise in power demand, its power generation capacity needs to be expanded by an average of 6%.

It is worth noting that electricity demand is also projected in increase in other countries in the region, like Yemen, Iraq and Syria, as they embark on infrastructure rebuilding and rehabilitation, and re-establishment of a reliable power connection. As the governance and the economic climate in these countries become more stable in the coming years, their power consumption is expected to exponentially rise.

The outlook of the region’s power market

Amidst the current economic challenges experienced not only in the GCC but also in the entire region, the governments are looking towards the development of new cost-effective and efficient sources of electricity, and sustainable opportunities and approaches to reduce overall energy consumption.

For instance, countries in the GCC have set an objective that a minimum of 10% of their overall power production by 2020 should come from renewable sources of energy. A vital component of the region’s overall renewable energy mix is solar, with sunshine available across the region for the most part of a year. Industry experts estimate that 85 to 90% of the region’s investment on renewable energy is poured into the development of solar power facilities, with UAE, Saudi Arabia, and Kuwait leading the way.

Alongside the intensive drive to harness renewable energy sources is the push to develop “Smart Cities” – urban projects that capitalize on digital technology and information and communication technologies to improve the quality of life of the citizens and better manage public services, such as power, water, transportation, healthcare and waste management.

In essence, in the face of decreasing revenues from oil, governments are realizing the benefits of partnering with the private sector and independent power producers (IPP) to boost the region’s available electricity capacity. Industry experts estimate that IPPs can contribute as much as 20 GW to the region’s power supply. At present, countries in the region are rolling out various initiatives within the power sector, which aim to allow competition at the power generation level, establish separation in the market to introduce more competition, and liberalize domestic energy prices over the medium-term.

In Part 2 of this feature, we will zero in on the available power generation technologies that respond to the current requirements of the governments in the Middle East. We’ll take a close look at how these innovations can satisfy the region’s demand for reliable power, support its current drive to harness renewable energy and contribute towards the minimization of initial costs and related expenses.


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Sources consulted:

“GCC Power Market Report 2017”. Ventures Onsite for Middle East Electricity.

“Saudi Arabia’s Unstoppable Utilities Market”. www.utilities-me.com.

“Oman forecasts annual power demand growth at 8% until 2022”. www.timesofoman.com.

“Bahrain’s Power Sector Embarks on a New Era of Development”. www.startupmgzn.com

How Can Rental Power Plants Support the Predicted Growth in Electricity Demand?

We now live in a world where virtually everything requires energy, and where a momentary interruption in its supply can throw economies and societies into disarray. And as the world will need more of energy, industry stakeholders should, therefore, keep a close watch on its efficient production and utilization to ensure that it will be sufficient for the coming generations.  

Experts predict that global energy demand will continue to grow through 2050. In a recent article, McKinsey and Company, a global research and information firm, revealed that the global requirement for energy will grow by an average of 0.7 percent a year through 2050. This growth rate is notably lower than the current two percent, owing to digitization, slower population and economic growth, greater efficiency, the decline in demand in Europe and North America, and the global economic shift toward services, which use less energy than the production of goods. Despite this decline, it cannot be ignored that there is still a critical need to meet the future demand if the world is to have a continuous and reliable supply of energy.

Electricity will account for a quarter of all energy demand by 2050. McKinsey predicts that more than 75 percent of new electricity capacity will come from wind and solar. Thus, wind and solar power generation are expected to grow four or five times faster than every other source of electrical power.

As a global temporary power solutions provider, we see this as a welcome development in increasing the availability of electricity in areas that require it, and in diversifying the energy mix to encourage long-term energy security.

Multi-megawatt temporary power technologies are primed to work in tandem with renewable energy sources to help surmount issues of power supply unpredictability and intermittency, especially in power-intensive industries like oil & gas, construction, and utility power generation, transmission and distribution.

Temporary power plants can also provide supplemental power to renewable energy facilities during planning, manufacturing, installation, commissioning, operations and maintenance. Temporary power plants can help ensure that renewable energy plants are constructed and delivered on time and as planned, and that they remain efficient, reliable and in optimum condition at all times.

As a global player in the rental power industry, we recognize the ever-important role that electricity plays in the promotion of progress and development in countries around the world. As such, we continuously work on innovating and engineering power generation systems that efficiently responds to the energy needs of the times. For more information on rental power plants and how it can help power your industry, please visit http://www.altaaqaglobal.com

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Insights on the Power Rental Market in the Middle East

The performance of the power rental market in the Middle East remains strong, riding high on the region's continued economic growth and sustained industrial and infrastructure activities. Peter den Boogert, CEO of Altaaqa Global, shares the company's perspectives on the road map ahead of the temporary power market in the Middle East.

Which factors are leading to the rise in power rental market in the Middle East region? 

The power rental market has been constantly growing in the Middle East, owing to the region’s continuous economic growth, sustained industrial and infrastructure activities, rapid growth in population, improvement in the standards of living, occasional utility shortages in key areas, and observed unreliable electricity connection in various cities and provinces. 

The above mentioned factors lead to the requirement for alternative power sources, such as multi-megawatt temporary power plants, to support the region’s existing power infrastructure. For instance, the intense industrial and construction activities, coupled with a massive electricity requirement on the part of residents especially during summer months put a heavy load on the region’s utilities, so that occasionally they are unable to supply the required power. This is where turning to temporary power becomes beneficial, particularly in maintaining the productivity of construction or industrial operations, and in avoiding power interruptions, load shedding or peak shaving.  

Furthermore, temporary power plants are also employed to bring electricity to areas where power connection remains unreliable or absent, like in remote locations or mountainous regions. 

Which is the biggest genset market in the region? Recent reports suggest Saudi Arabia, the UAE and Qatar are leading the way. What are the countries, you think, follow the list?

We observe that Saudi Arabia, UAE and Qatar remain the biggest markets for multi-megawatt temporary power solutions in the region. 

Although the decrease in oil prices has had, to some extent, an effect on the economy of Saudi Arabia, economic experts agree that it has not restricted the country’s investments in various projects. The experts recognize the country’s extensive cash reserves for the continuous development in Saudi Arabia’s public infrastructure, utilities, healthcare and education, to name a few. Thus, the sustained construction and industrial activities in the country, coupled with a constantly increasing electricity demand from its residents and businesses, are spurring the buoyancy of the power rental market in Saudi Arabia. In fact, market research firm 6W Research estimates the CAGR of the power rental market in Saudi Arabia to be at 12.6% from 2015-2021.

Similarly, the demand for electricity has, over the years, tremendously increased in the UAE. The constantly increasing public and private infrastructure, together with an expanding population, has caused the country’s electricity requirement to surge in the last decade. The same research firm predicts the CAGR of the temporary power market in the UAE to be at 16.8% from 2015-2021, taking into keen consideration the upcoming World Expo 2020, during which about 25 million tourists are expected to visit the country. Preparations for the global event, including the construction of trade centers, hotels, hospitals, rail networks and airports are seen to be driving the growth of the rental power sector in the country.

The rental power market in Qatar is heavily influenced by the country’s preparations for the upcoming FIFA World Cup 2022. The increasing infrastructure development (building of eight new stadiums, renovation of three existing stadiums, establishment of Lusail City), expanding transportation network (building of Doha Metro Rail and expressways), surging public and private investments, rising hospitality sector and continuous economic reforms are driving the growth of the temporary power business in the country. Research firm 6W Research pegs the growth of the rental power sector in the country at 23.3% from 2014-2020. 

Other significant markets for multi-megawatt rental power solutions in the region include Kuwait, Oman and Bahrain, which are also economically and industrially viable countries.

It is worth noting that temporary power solutions can also prove beneficial for countries that may require infrastructure rebuilding and rehabilitation, or re-establishment of a reliable power connection, like Yemen, Iraq and Syria. As the governance of these countries become more stable in the coming years, we believe that they will represent excellent market opportunities for temporary power providers.

Between gas and diesel gensets, which has a better growth prospect and why? With solar generation being tapped in a big way today especially in Saudi Arabia, the UAE and Egypt, do you think it may affect the genset industry?

It is expected that the diesel generator market will continue to grow in the next several years, owing to easy availability, safety and economy of fuel, and ease of installation of diesel equipment.

However, we are noticing a gradual increase in the requirement for natural gas and dual-fuel power generation technologies, largely influenced by the increasing availability of fuel resources and government initiatives towards reducing carbon emissions. 

In the past, fuel availability and the costs of installing safe and reliable fuel delivery infrastructure have been limitations on the growth of the natural gas generator market. Today, however, gas is becoming increasingly available and gas generation technologies are progressively finding application in bigger and longer-duration projects, making the upfront investment for the gas infrastructure economically sensible. The availability of dual-fuel generators (which significantly simplifies the transition from diesel-run to gas-run generators), is also helping overcome these obstacles.

As for the observed gradual shift in solar and other renewable power generation technologies, we see this as a welcome development in increasing the availability of electricity in areas that require it, and in diversifying the energy mix to encourage long-term energy security. 

Multi-megawatt temporary power technologies are primed to work in tandem with renewable energy sources to help surmount issues of power supply unpredictability and intermittency, especially in power-intensive industries like oil & gas, construction, and utility power generation, transmission and distribution.  

Temporary power plants can also provide supplemental power to renewable energy facilities during planning, manufacturing, installation, commissioning, operations and maintenance. Temporary power plants can help ensure that renewable energy plants are constructed and delivered on time and as planned, and that they remain efficient, reliable and in optimum condition at all times.

What are the preferred ranges that are most popular in the region and the industries that are catered to? Which are Altaaqa Global’s most popular genset ranges and contracts it has been awarded in the region?

The amount of required power vary from industry to industry. For instance, construction projects may require a few hundred kVA during the building phase to a few MW during the commissioning stage. Refinery maintenance and rehabilitation often requires several MW of power. The utility industry has the biggest demand, usually requiring power plants of tens or hundreds of MW to provide supplementary power to the grid. 

For our part, we provide multi-megawatt temporary power plants, focused on utility markets, extractive industries such as mining and oil and gas, large process industries and major construction infrastructure projects.  

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How much does it cost to operate and maintain a permanent power plant?

Whatever the energy source, be it fossil fuel, nuclear or renewable, expenses for operation and maintenance (O&M) form a vital part of the life cycle cost of power plants. Though O&M cost differs among various forms of power generation, it plays an important part of any power plant’s business case. Guided by the information provided by the International Energy Agency’s World Energy Investment Outlook 2014, we present an overview of the estimated average O&M costs for six of the most common power generation methods.

1. Gas Turbine (USD 20 per kW)

Gas-fired power generation is popular for having a relatively low O&M cost compared to other power generation procedures. For instance, power plants installed with simple-cycle combustion turbines have been shown to have an average annual O&M cost of just around USD 20 per kW, making such technology the most economical O&M option in the power industry. The maintenance of an effective lubrication system for gas turbines plays an integral component of O&M expenditure in gas-fired power plants.

2. Large-scale solar photovoltaic (USD 25 per kW)

Thanks to the ongoing development of solar photovoltaic (PV) technology, large-scale PV installations are among the most economical power generation technologies for O&M, at just about USD 25 per kW. Because solar PV is a relatively simple technology, maintaining it often only involves cleaning and removing debris from PV cells, together with monitoring of inverter units and AC subsystems.
Concentrated solar power (CSP), on the other hand, being a more sophisticated and complex technology, demands a much higher O&M cost, estimated at USD 290 per kW.

3. Subcritical coal power (USD 43 per kW)

O&M costs for coal vary depending on the type of plant. For instance, the cheapest subcritical plant has an O&M cost of approximately USD 43 per kW, even higher for supercritical and ultrasupercritical coal combustion technologies, and about USD 88 per kW in the case of integrated gasification combined cycle plants. A major component of the O&M costs of coal-fired power plants is monitoring and servicing the numerous moving parts involved in the generation process, including turbines and generating sets, coal yard conveyors and handling systems.

4. On-shore wind power (USD 46 per kW)

There is a notable disparity between O&M costs for onshore and offshore wind farms, mainly owing to access-related issues. While O&M costs for onshore wind power sites are almost at part with those of the simplest coal technologies, and are even expected to fall below those of coal by 2020, O&M expenditure for offshore wind technologies are approximately four times as much, sitting at around USD 181 per kW.

5. Large-scale hydropower (USD 53 per kW)

Large-scale hydroelectric power is considerably cheaper to operate and maintain compared to smaller-scale projects. However, the O&M costs for maintaining large installations like dams and barrages are predicted to increase in the future, matching those of small-scale hydro by 2035. At present, the O&M costs for small hydro projects stands at USD 70 per kW. According to IEA, ageing equipment in need of replacement at hydroelectric dams, on top of the complexity of running and maintaining new equipment along with dated components may be factors that contribute to the predicted increase.

6. Nuclear power (USD 198 per kW)

Nuclear power plants do not only command a hefty capital expenditure, they are a long shot from being cheap to operate and maintain. Major contributors to the steep O&M cost include the processing, enrichment and fabrication of uranium into fuel elements; waste disposal; and maintenance of a large number of pumps, valves, cables, circuit breakers and other mechanical and electrical components.

When permanent power plants become less efficient and less reliable...

Naturally, O&M costs, as illustrated in our discussion on large-scale hydropower facilities, are expected to increase as power plants age and become less efficient and less reliable. When old power plants continually shut down or become increasingly expensive to operate and maintain as they age, power utilities may be compelled to do a major refurbishment on existing power plants or build new ones as they rest the old ones.

While permanent power plants are being optimized or new ones are being constructed, power utility providers can turn to reliable and fuel-efficient temporary power solutions for supplemental electricity.

Temporary power plants can be swiftly transported from and to anywhere in the world, and can be installed in a matter of days as soon as the power equipment arrived at the site. Rental power plants do not require a huge capital expenditure and major civil works before they can be installed, and have been proven to deliver exceptional performance and outstanding fuel efficiency. Power utilities can pay for the “hired” electricity from their OPEX,

Rental power plants are scalable in that power utilities can choose to increase or decrease the power plants’ power output depending on the existing requirement. This means that in case the power requirement rises, they do not have to build another permanent power plant to satiate the demand. Once the need for additional electricity passes, power utilities can simply end the contract, and the temporary power plants will be demobilized, leaving no permanent facility idle or requiring continuous maintenance.

Temporary power plants are operated and managed by a team of certified and expert engineers, so clients can rest assured that the power plants will be running smoothly and will be providing sufficient electricity anytime it is needed.

For more information on temporary power solutions, visit www.altaaqaglobal.com

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Global Warming Worsens Power Crisis in Africa

Africa is home to nearly a billion people – over a sixth of the world’s population – but the region only generates four per cent of the world’s electricity. Of that, three-quarters is utilized by South Africa, Egypt and a handful of other North African nations, with only 30% of the population of the continent with access to power.

Though most of the continent have constantly been facing challenges related to electricity, it is the hydropower-dependent countries that are presently being extremely burdened by power shortages. Spurred by erratic rainfall patterns and an increased frequency of droughts, these hydropower-dependent countries have seen an exceptional, drastic fall in the water level in major dams, forcing their governments to introduce a load shedding schedule that involves up to 18 hours of power interruption. The reduced level of water in the dams have provoked relevant authorities to advise power utilities to reduce generating capacity.

“The unprecedented energy crisis,” said one of the leaders of the countries, echoing the opinion of the other leaders of hydropower-dependent nations, “has already cost our countries dearly in terms of productivity, jobs and revenue.” He said that the power crisis had exacerbated the challenges that developing countries were still grappling with, including poverty, high unemployment, limited access to education, slow industrial development, inadequate infrastructure, poor quality health services and low industrial productivity. “The current energy crisis we are facing has a clear strong connection to global warming,” he said, “and as such, new strategies to alleviate the situation has to be proposed to address the effects of climate change.”

Diversifying energy sources
The leader said that a sound strategy to combat the current power crisis was to diversify energy sources to reduce dependency on hydroelectric stations. “Our country”, he said, “is blessed with abundant sunshine, which can be harnessed to increase energy supply to consumers. Adopting solar energy technologies, and to some extent wind, could reduce the pressure of demand for electricity on the national grid and over-dependence on hydro and thermal power.”

The aggressive drive of Africa’s hydropower-dependent countries towards diversifying their energy sources is laudable, especially because it does not only seek to resolve the power supply challenge, but also combat global warming and climate change. Moving away from the traditional sources of energy, like hydro and fossil fuels, and venturing into renewables, like solar or wind power, will not only encourage an increase in power generating capacity, but also a more sustainable use of conventional primary energy sources.

Shifting to renewable energy sources
A reservation, however, is that transitioning from conventional power sources, like hydro and fossil fuel, to alternative sources, like solar and wind, may not be immediately possible, as it may require the buy-in of several entities, including several branches of government, financial institutions, investors and industry stakeholders. With the procedures involved in obtaining approvals for such an initiative, the process of fully shifting to alternative sources of power may take years, or even decades, to complete.

Another concern is the observed insufficient reliability and predictability of renewable sources of power, like solar and wind. Industry experts claim that, though holding tremendous potential, solar and wind power still have room for improvement and optimization before they can assume the role of absolute primary sources of energy.

Urgent power supply support
The hydropower-dependent countries suffering from power shortage urgently need a reliable alternative source of energy now – not in a few years, not in a decade. In times of drought and low-rain seasons, load shedding and regular electricity outage, governments, utilities and large industrial operations in hydropower-dependent countries will find an immediate effective power solution in hiring the services of temporary electricity providers. Reliable electricity is essential in powering a country’s economic and social development, and renting large-scale power plants while the process of effectively integrating renewable energy sources into the energy mix is underway can guarantee a constant supply of power even to expansive regions, provinces and cities without the need to spend scarce CAPEX. Rented power plants offer economy and flexibility, because governments, utilities and allied stakeholders can pay for the electricity produced by hired power plants as the generators run, and they can choose to add power modules to the rental power plants as their requirements increase.

Rental power plants are not only reliable and fuel efficient, they also have less impact to the environment, supporting the government’s drive to combat climate change. Modern rental generators boast of cleaner operations, being able to run on a variety of fuels, including natural gas or a blend of gas and diesel. Studies conducted in different rental power plants sites around the world show that temporary power stations, like those running on natural gas, can surpass the worldwide NOx emission requirements, emitting only 250 mg/Nm3 even without after treatment.

Final Word
The prolonged low-rain season and drought in hydropower-dependent countries, which resulted in alarming low water level in major dams, are indubitably related to global warming and climate change. The stand of hydropower-dependent countries to diversify energy sources and reduce their dependence on conventional sources of power has its merits, especially when coupled with initiatives geared towards energy conservation and efficient use of electricity. While the process of shifting to renewable energy sources is moving forward, governments, utilities and allied stakeholders can find an immediate solution to their countries' power woes in hiring rental power providers. Ultimately, however, the solution to the power supply challenges and climate change will depend on the principled actions of the countries’ leadership and people.

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Encouraging Outlook for the Middle East Rental Power Market

The rental power market in the Middle East has remained buoyant, and is predicted to go on expanding in years to come. Buoyed by the development of new rental power technologies, interim power stations will continue to find application in a variety of sectors, including utility markets, extractive industries like mining and oil & gas, large process industries and major infrastructure construction projects.

Among the rental power technologies available, diesel generators will continue to dominate the market, largely due to the wide availability of fuel, fuel safety & economy and ease of installment. However, it is helpful to note that generators running on other fuels, such as natural gas and dual-fuel (a combination of diesel and gas), are progressively gaining ground. The market expansion of such technologies is spurred by the increasing availability of inexpensive locally extracted natural gas and the strict emission regulations in many countries around the world.

There have been observed limitations on the growth of the natural gas generator market, including fuel availability, and the prohibitive cost of installing safe and reliable fuel delivery infrastructure. Today, these are gradually being mitigated by the availability of cost-effective natural gas resources, and the application of natural gas technologies in bigger and longer-duration projects. In addition, dual-fuel generators simplifies the transition from diesel-run to gas-run generators.

There is also a growing trend towards the use of renewables in the region, particularly solar. As technology here develops, it is inevitable that they will play an increasingly important role in the future energy mix, and in the development of hybrid solutions with diesel or natural gas generators.

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Temporary Power: Keeping the Mining Industry Buoyant Through the Trying Times

The present times have not been favorable to the mining industry.

Many mine operators in Africa, Asia and South America have been facing myriad production-related challenges, owing to power shortages, not helped by the longer and stronger than expected El Niño phenomenon. El Niño, a cyclical meteorological phenomenon, brings extreme weather to parts of South America, Southeast Asia, Australia and Africa. For instance, mining operators in Indonesia, a major nickel and copper producer, have been facing consistent output drops as hydroelectric power facilities fail to generate enough electricity. In Peru and Chile, persistent heavy rains not only cause extreme flooding into zinc mines, affecting their production and triggering price spikes, but wide spread blackouts and damage to power infrastructure.

Then, there is the gradual decline of prices of commodities for the past several years. Prices of gold, silver, iron ore, coal and copper have all been negatively affected by stringent credit restrictions, weak global demand and a growing supply from new low-cost projects. As a result, mining companies, established and start-ups alike, are struggling to maintain a profitable production, resulting in job cuts and tighter cash flows and limited expenditures.

In such a case, mine operators can find huge benefits in hiring the services of temporary power providers. Electricity plays an undeniably essential role in mining operations, be it in exploration, production, climate control or workplace visibility, and rental power plants can provide the necessary electricity without the operators spending scarce CAPEX. As opposed to investing in permanent power infrastructure, mining companies can pay for the electricity produced by hired power plants from their operating revenues. As their operations expand and their power requirements increase, mine operators will be able to add additional power modules that will increase the rental power plant’s generation capacity. The investment in temporary power plants have been proven to be marginal compared to the cost of foregone opportunities, lost production time, or wasted man-hours.

As rental generators are modular and containerized, they can be rapidly delivered to and installed anywhere in the world, and can be tailored to the requirement of any mining site. They are fully able to function even in remote locations and in sites where traditional power infrastructure, like grids and substations, is outdated, damaged or absent. They can be fully constructed and powered on in a matter of days, and can be ramped up or scaled down depending on a site’s power usage demand.

Modern rental generators boast of a cleaner operation, being able to run on a variety of fuels, including natural gas or dual-fuel (70% gas and 30% diesel). As a case in point, Caterpillar’s natural gas-powered generators surpass the NOx emission requirements, emitting only 250 mg/Nm3 even without after-treatment.

Caterpillar’s gas generators are also capable of converting coal mine methane to electric or thermal power, which contributes to the reduction of greenhouse gas emissions. The gas generator technologies have the ability to utilize gas with variable concentrations of methane.

The global mining industry is going through challenging times triggered by natural and economic circumstances. Temporary power technologies can give mine operators a sustainable competitive advantage, as they can enhance a site’s productivity and optimize its processes without the need for a sizeable capital expenditure.

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Temporary Power Plants Support Hydropower Generation

Many countries around the globe whose electricity generation is mainly dependent on hydropower are being adversely affected by the extended and intense El Niño phenomenon. El Niño, a cyclical meteorological phenomenon, brings droughts in a number of regions in the world, causing hydropower facilities to fail to generate enough electricity for residential and industrial consumption.

In cases like this, utility providers or governments of hydropower-dependent countries can find merit in hiring large-scale temporary power plants. Rental power plants can instantly fill in the gap in electricity supply without the need to heavily invest in permanent power infrastructure or wait years or decades for the completion of one. As large-scale rental generators are modular and containerized they can be rapidly delivered to and installed anywhere in the world, and can be configured to the requirement of any city, region or even an entire country. They are fully capable of working in remote locations and in areas where grids or substations are outdated, damaged or absent. They can be fully constructed and operated in a matter of weeks, and can be ramped up or scaled down based on the customer’s consumption.

Aside from proven reliability and ease of installation and operation, large-scale temporary power plants also boast of sustainability and environmental stewardship. Modern large-scale rental generators are able to run on a variety of fuels, including natural gas or dual-fuel (gas and diesel) and thus surpass worldwide emission standards.

By virtue of their economy, dependability and environmentally friendliness, renting large-scale temporary power plants as a solution for seasonal electricity requirements yields many benefits to governments, utilities, industries and residents.

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Load Shedding, the Pharmaceutical Industry and the Quest to Save Lives

In light of the constant increase in electricity demand and a relatively moderate investment in the construction or refurbishing of power infrastructure, many countries around the world face the problem of regular load shedding and continual power outages. The effects of load shedding and power interruptions are felt by almost all sectors of the society and economy, including residents, the government, primary resource businesses and manufacturing/processing industries. One sector that has been ailing from constant power outages is the pharmaceutical industry.

Industry spokespersons cite that constant load shedding has been making it difficult for their companies to manufacture drugs and other pharmaceutical products, including potentially life-saving medicines for serious diseases, including cancer and hepatitis. “Shortage of power,” says one pharmaceutical facility operator, “is not only affecting our production, but has also been making the lives of patients around the world more difficult.” He said that power outages render more challenging not only meeting the local demand for medicines, but also fulfilling export requirements. “Before load shedding,” he continues, “we have been satisfactorily meeting the domestic pharmaceutical requirements, but now, we have found it increasingly difficult to meet our targets here and abroad.”

Industry players have been clamoring for the pharmaceutical sector to be exempted from daily rounds of load shedding and peak shaving, but the governments and the utility providers cannot always guarantee this. “There are days when we experience continuous power,” says another operator, “but most of the time, power is cut at unexpected times, and the outage lasts for hours.” He understands that residents, businesses and industries all share a limited supply of electricity, and a privilege of a continuous supply of power extended to the pharmaceutical industry will be at the expense of another industry or the residents. “We know that it is very difficult at this time for the utility providers to exempt us from load shedding or peak lopping,” the same operator continues, “so we have installed local power generation facilities within our sites.” The problem, however, is that their power production is not always reliable, and is not always sufficient for large-scale production.

Pharmaceutical facility operators may find benefits in supporting their local power generation facilities, like renewable sources, with large-scale standby power equipment, like rental power plants. Rental power plants are capable of providing a reliable and consistent electricity supply to industry-scale operations, and generating the exact amount of power as they are designed to produce. They can be ramped up or scaled down depending on the precise need of the customer, hence precluding instances of under- or over-sizing. So, for instance, if the local power facility produces sufficiently, then the rental power plants go on standby mode; but once the electricity supply diminishes, the temporary power plants activate and ensure that the desired amount of electricity is supplied.

As constructing rental power plants do not require a huge capital expenditure, implementing them does not mean an additional burden for pharmaceutical companies. The companies can pay the electricity supply as they go, and do not have to think of the maintenance and servicing of the plants.
 
With rental power plants, pharmaceutical production facilities can continuously operate to meet the local demand for medicines, and fulfill their export requirements. They can go on creating life-saving medicines for the most pressing illnesses of the world. While the governments and the utility industries construct and improve power infrastructure to eliminate load shedding, temporary power plants can ensure that life goes on not only for patients but also for the pharmaceutical industry.

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Do Renewable Energy Facilities Have a Negative Impact on the Environment?

Every year, the number of countries that pledge to incorporate renewable energy in their overall energy mix is gradually going up. Be they incited by a constantly increasing demand for electricity, a keen interest to augment electrification rates or by the desire to conform to strict efficiency and environmental stewardship standards, the plans to “go green” are projected to come into fruition in 10 to 20 years.

In recent years, the world has seen a notable increase in the number of constructed and in-progress renewable energy facilities. In 2014, 64% of the global installed renewable energy capacity is hydro, 24% is wind, 8% is solar, 3% is bioenergy and 1% is geothermal (www.altenergymag.com). The facilities are indubitably geared towards the amplification of energy reserves and the reduction of the environmentally harmful effects of conventional energy generation, but are such facilities really as friendly to the environment as they are billed to be?

We have investigated some of the negative effects of renewable energy facilities towards the environment, and here is what we found:

Hydro

Though hydropower facilities do not cause any direct air quality impact, their construction and operation can influence the flow of rivers, which, in turn, affects wildlife and people.

Hydro facilities can cause flooding in and around the area where they are situated. When the water stored within the dam is suddenly released, it can lead to immediate flooding of the river downstream. The flooding may result in the destruction of agricultural land and forests.

Wind

Wind energy facilities are mostly scrutinized due to their impact on birds and other species. A recent release from the National Wind Coordinating Committee reflects that collisions with wind turbines, and the change in air pressure owing to spinning turbines are responsible for a number of deaths among birds and bats.

Solar

Complaints about solar facilities are often motivated by issues in land use, water use, habitat loss and materials used in the manufacture of solar panels.

Case-in point, to build a large-scale power facility, a vast area of land is needed. Experts suggest that the use of many acres of land may result in clearing and grading of land, leading to soil compaction, erosion and alteration of drainage channels.

Solar energy systems can also negatively affect the land during the process of materials extraction, exploration, manufacturing and disposal.

Bioenergy

Bioenergy feedstock, and the way it is harvested, may not only impact land use but also contribute to global warming emissions. For instance, human and animal waste utilized to power engines may increase harmful methane emission.

In addition, using tree or tree products to create biomass requires vast forest lands to be cleared, which causes topical changes and damages animal habitat.

Geothermal  

Aside from being known as capital intensive, constructing geothermal facilities may cause poisonous gases to escape during the drilling of holes. Geothermal facilities are also, under extreme circumstances, known to cause earthquakes.

While renewable energy facilities bring about observed negative impacts to the environment, one cannot deny the fact that they make a considerable difference in reducing carbon emissions largely associated with conventional electricity generation, among other processes. The onus is now on the R&D sector, manufacturers, implementing agencies and governments to mitigate (or eradicate) the impact the above-mentioned harmful effects.

In Part 2 of this article, we will take a look at other alternative energy sources that can support the power demand while renewable energy technologies and infrastructure are enhanced and optimized.

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