The Evolving Role of Temporary Power Plants

Temporary power plants are among the most popular solutions to provide electricity to communities, events, businesses and industries around the world. Temporary power plants can be quickly delivered, installed and powered on, and they do not require a huge capital expenditure on the part of the customer. They are efficiently managed and maintained by the engineers and technicians of the temporary power provider, and can be completely demobilized at the end of the contract.

It is easy to think of temporary power plants in short-term projects of a few megawatts, like in sporting events or concerts. But while temporary power providers cater to such requirements, their scope is more extensive than just “temporarily” providing electricity.

In recent years, the role of rental power plants has transcended being merely “temporary”. The industry is now witnessing projects with contracts of longer duration and of capacities that, at times, can make up a sizable fraction of the grid’s demand. Rental power plants are increasingly being utilized in baseload operation, and modern rental power plants are now able to perfectly integrate with the existing permanent power infrastructure. In certain applications, rental power generation technologies are supplying electricity to entire cities or provinces, or even countries, and are powering thousands of businesses and millions of people.

Rental power suppliers, like leading global rental power company Altaaqa Global Caterpillar Rental Power, are primed to serve projects with longer contract durations and of multi-megawatt capacities. They are able to cater to multi-year, larger-scale requirements from a wide range of industries, including utilities, oil & gas, mining, and manufacturing, to name a few. They are able to supplement a country’s grid capacity; provide on-site power for oil & gas and mining facilities; and supply electricity to process industries, for example.

Let us take a close look at utilities. Utility providers around the world partner with rental power providers for a variety of reasons. They seek the assistance of rental power suppliers when they need a speedy supply of supplemental electricity. Utility providers also collaborate with rental power companies in times of significant power supply constraint, like in hydropower-dependent countries or cities in times of drought or low-rain seasons. Utilities also avail of rental power services while waiting for permanent power plants to be completed, or when they are still in the process of raising capital for the construction of facilities or the expansion of existing grid supply. There are also utilities that hire power plants in times of seasonal shifts in electricity demand, for instance during summer.

On the other hand, mining and oil & gas facilities, being remote from the national grid, hire power plants to provide electricity at every stage of their operations throughout their lifetime. Rental power plants support the electricity needs of mining and oil & gas facilities from the nascent stages up to the most power-intensive processes. Thanks to the scalability of rental power plants, their capacities can be increased (or decreased) according to the needs of the sites.

Process industries, like consumer and industrial manufacturing, turn to rental power not only to provide electricity to their facilities during peak production season but also to ensure the reliable supply of electricity, especially in areas where load shedding is implemented and power outages are frequent. With rental power plants consistently power their operations, manufacturing companies can fulfill their production commitments and delivery obligations to their customers.

As the world’s economies grow, electricity demand will continue to increase and electrification efforts will only intensify. In recognition of this trend, rental power providers, like Altaaqa Global, are continuously working to further improve the technologies of their systems in order to cater a wider range of power requirements of varying contract duration and capacities.

If you have a multi-megawatt rental power requirement, talk to us to find out how our rental power plants can work for you. E-mail us at info@altaaqaglobal.com or at sales@altaaqaglobal.com. Alternatively, you can call us at +971 4 880 8006.

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How to Prevent Electricity Disruption during Peak Summer Months

In many countries around the world, power shortages, blackouts, load shedding and unscheduled electricity interruption are common during peak summer months. There are several reasons why they occur, but perhaps two of the most prominent are the spike in power consumption among residents and businesses, and not having enough power supply.

During the hottest days of the year, it is not uncommon that residents, businesses, and industrial operations use air conditioning more often. In homes and offices, multiple air conditioning units usually run all at the same time at full power to cool the temperature and keep a healthy living or working environment. In addition, in many countries schools are on break during these months so children are likely staying at home and consuming electricity as they watch TV, play with their game consoles or surf the Web on their computers. These are just a few of the reasons why power consumption notably increases during summer months.

On the other hand, in some countries, especially those that rely on hydropower, the summer months also see a reduced availability of electricity supply due to drought, prolonged absence of rain and the drying up of water reservoirs. When electricity consumption went up while the supply gradually decreased, one could imagine that what would follow are more frequent power interruption, longer blackouts, and unplanned load shedding. This would, in turn, result in massive inconvenience among residents, hampered business operations and lower levels of industrial production.

Good thing interim power supply solutions are available. Many power utilities prevent the occurrence of widespread blackouts and power disruption during the peak summer months by hiring multi-megawatt temporary power plants.

For instance, in the summer of 2013, the Sultanate of Oman hired a 24 megawatt (MW) rental power plant through the leading global temporary power provider Altaaqa Global Caterpillar Rental Power to boost its electricity supply. As the country needed an immediate solution to supplement its existing power supply, Altaaqa Global delivered the project in record-time, completing the installation, powering on and supplying electricity in just 96 hours. Altaaqa Global offered a complete turnkey power solution comprising power generators, transformers, fuel tanks, distribution panels, electrical accessories, and manpower – certified power engineers who will operate, manage and maintain the temporary power plant.

In 2014, Eneo, the integrated power utility provider of Cameroon, opted to partner with Altaaqa Global in installing a 50 MW natural gas power plant in Douala to increase its electricity supply and decrease the instances of power outages and load shedding in the city. Altaaqa Global’s gas power plants, comprising state-of-the-art power generation equipment, started supplying electricity after only 21 days from when the equipment arrived at the site. Till date, the gas power plants have been consistently producing reliable electricity to the residents, businesses, and industries of Douala.

Even as some countries may experience power supply limitation during the summer months, temporary power generation technologies are available to boost their electricity supply so they can prevent power outages and instances of load shedding. Temporary power plants are swiftly delivered, reliable and fuel-efficient, and does not require a huge capital investment. Power utilities can conveniently pay for the rented electricity from their operating expenses over a regular contracted period. Once the need for supplemental electricity passed, rental power plants could be easily demobilized, so no permanent power facility would be left unutilized or would require constant maintenance.

These are just some of the general benefits of choosing to rent power plants in times of short- to medium-term multi-megawatt power requirements. We invite you to talk to us to find out how temporary power plants can help solve your electricity challenges. Call us at +971 4 880 8006 or e-mail us at info@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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Maximum Power: Mega Trends in the GCC Regional Temporary Power Industry

From smart solutions to energy efficiency, the value addition curve for rental power plants is always on the rise. Altaaqa Global shares its insights about mega trends that the regional temporary power industry must align itself with. 

• What is you overview of the current Genset market in the GCC?

The temporary power industry is largely dependent on the prevailing market situation and activities. In the context of the GCC, the rental power market is conditioned by several factors, including:

• Utility shortages, particularly in KSA and Kuwait, especially during peak summer months 
• The gradual recovery of the construction industry in UAE and Saudi Arabia
• Absent or unreliable electricity connection in various areas in the region
• Regional growth in population and improvement in the standards of living
• The availability of diesel, and the nascent increase in the supply of natural gas
• Large industrial customers/companies turning to rental power to maintain the effectiveness/productivity of their operations in times of power interruptions or peak shaving
• Opportunities for infrastructure rebuilding and development 

KSA, Qatar and the UAE have consistently been the biggest market for gensets in the region, be it for rental or for sales, as they have been demonstrating high economic growth rates buoyed by industrial and commercial development. At present, however, we see a slight decline in the interest on temporary power services owing to the suppressed prices of oil and other commodities.

• What are the new trends shaping demand for Gensets (across all types)? What is your projection of the region’s Gensets market in the next five years?

We are noticing the gradual expansion of the natural gas and dual-fuel genset markets, particularly where inexpensive natural gas is available. The growth of such markets are supported by the increase in unconventional gas resources and by stringent emission regulations in effect in many countries around the world.

Fuel availability and the costs of installing safe and reliable fuel delivery infrastructure have traditionally posed limitations on the growth of the natural gas generator market. Today, gas is becoming increasingly available and gas generation technology progressively finds application in bigger and longer-duration projects. The availability of dual-fuel generators (which significantly simplifies the transition from diesel-run to gas-run generators), is helping overcome these installation and operational obstacles.

• How is your company geared up to meet the new demand trends?

The temporary power services that we offer vary from industry to industry and site to site.
In recognition of the changes in the market’s demands, we will continue to offer the most fuel efficient, reliable and technologically advanced generators and power systems to our clients to reduce their overall operating costs. We will combine it with consistent technical support and expert advice on equipment selection.  

The diesel generator market will continue to grow in the next several years, so we will continue to have diesel generators readily available in our fleet. As natural gas becomes increasingly available, and gas power generation technologies progressively find application in bigger and longer-duration projects, we will ensure to offer natural gas generators where it is appropriate.

• What is the region’s uptake on smart technologies? What solutions does your company offer to that end? What are some of the latest innovations in Gensets to enhance user experience?

There is an intense interest in the GCC in technologies that aid in the provision of reliable and efficient electrical power, resource conservation and environmental stewardship. The relevance of such technologies cannot be overstated in the GCC’s modern environment, which sees high levels of power consumption that takes a toll on the generation, transmission and distribution facilities.

In this light, here are some of the smart technologies available in our power generations systems:

• Our generators are equipped with state-of-the-art control and protection systems that allow them to change operational modes (island, grid or standby) in just a push of a button. Because of this, our generators can provide the precise electrical power at the exact time it is needed, in whatever mode required. 
• Our generators are also equipped with local control systems that provide power metering, protective relaying, and engine and generator control and monitoring. They are integrated with digital voltage regulators, which works to enhance system monitoring. They offer the ability to view and reset diagnostics of all networked controls, eliminating the need for separate service tools for troubleshooting. They also have real-time clocks which allow for date and time-stamping of diagnostic and events.
• To enhance user experience, our generators are equipped with engine operator interface featuring graphical display with positive image, transflective LCD and adjustable white backlight/contrast. Additional features include engine cool-down times, engine cycle crank, three engine control keys and status indicator (run/auto/stop), lamp test and alarm acknowledgement keys. It has warnings/shutdowns with indicating text for low oil pressure, high oil temperature, emergency stop, over speed and over crank, on top of an emergency stop push button and shortcut keys for engine and generator parameters. 

• What are the latest innovations on Bi-fuel portable generators? 

Our dual-fuel power generators are specifically developed to reduce fuel costs and decrease emissions. They are equipped with a dynamic gas-blending technology that optimizes output, while being environmentally considerate. Our bi-fuel generators automatically adjust to changes in fuel quality and pressure to allow engines to run on a wide variety of fuels, including associated gas and vaporized LNG, with no loss of performance integrity. Owing to this, no customer input or gas analysis is required during operation, and no re-calibration is needed when the equipment is moved or the gas supply changes.

• How will the shift towards renewable energy impact the Gensets market in the GCC?

Owing to the rapid depletion of the world’s fossil fuel resources, in addition to greater requirements in carbon reporting, many countries around the world are looking to diversify their energy mix to encourage long-term energy security. A crucial component of this initiative are renewable energy sources.

While renewable energy technologies are being optimized, continued dependence on traditional sources of electrical power is needed to bridge the power gap and maintain a continuous and reliable supply of electricity. Temporary power solutions, for instance, can work in tandem with renewable energy sources to help mitigate the issues of unpredictability and intermittency.

Aside from supporting renewable energy facilities in producing electricity, temporary power plants can also provide power to renewable plants throughout their life cycle. Temporary power plants can provide supplemental power to renewable 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.

• Comment about the market for Genset spare parts?

In addition to our own in-house capabilities, as an authorized Caterpillar dealer, Altaaqa Global has access to the wide range of technical, engineering, logistical and service/maintenance resources of other Caterpillar dealers around the world.

In mobilizing for a project, for instance, we may tap the power generation resources, technical & engineering expertise and logistical facilities of the local Caterpillar dealers where we operate, or of any Caterpillar dealer around the world. We also have access to locally available parts and can call for local maintenance service or technical support. Thanks to this synergy, we are able to provide for a quick and efficient installation of power plants and ongoing support for projects anywhere in the world.

• What are the major challenges in the GCC Gensets industry? How is the slump in oil prices impacting the market?

While the fact that the prevailing oil price makes generators cheaper to run is an advantage in theory, we have to remember that the requirement for generators is proportional to the rate of economic activity. At present, the prices of oil and commodities are suppressed, and this is having a negative impact on the interest on power generation services. We, however, expect the industry to rebound quickly as and when economic conditions improve.

• How is the 5% VAT proposed by GCC countries likely affect the Gensets market?

The introduction of VAT in the region was largely prompted by the drop in revenues in the face of plummeting oil prices. With VAT, businesses and industrial companies must grapple with increased production and higher capital costs. Economists, however, predict that the benefits of VAT to the region will outweigh the financial burdens that come with it.

One positive scenario we see is that with the introduction of VAT, governments in the GCC can have additional revenues that they can use to build additional infrastructure, refurbish existing facilities, and overall improve services to their citizens. These represent excellent business opportunities for temporary power providers. As we have mentioned above, the temporary power industry is conditioned by the prevailing market situation and activities, and if GCC countries intensify their economic and social activities, the industry will continue to thrive in the region.

• With competition in the market growing, what will industry players need to do to retain their clients and also win over new ones? What steps are you taking towards driving efficiency? How is this likely to give you a competitive edge? What is your company doing to have a competitive edge?

As an authorized Caterpillar dealer, we work closely with the Caterpillar product development team to share perspectives of customer requirements in the power rental business. We continually work on improving the efficiency and reliability of our equipment, and we constantly revisit our procedures and processes with the aim of improving the way we do things in every project.

The role of temporary power has evolved from being a local, short-term, transactional activity to a major global project-based industry. To keep abreast of the opportunities in the coming years, we will continue to hone a highly skilled, motivated & experienced, world-class, power projects team. At Altaaqa Global, we strive to lead the evolution of the industry, and to be recognized as the premier source of innovative technical solutions and the highest level of customer service and support.

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This is a solution to Venezuela’s Electricity Crisis

Is Venezuela a victim of its own economic success?

The government has recently announced the shifting of Venezuela’s time by 30 minutes – an effort aimed at reducing the amount of electricity used for lighting. This is the latest of the drastic measures launched by the government to curb power consumption, which also included implementing load shedding for four hours a day across multiple states, enforcing leaves for public-sector employees for three days a week, closing of schools on Fridays, mandating malls and hotels to generate their own electricity for nine hours a day, and requiring heavy industries to cut electricity usage by 20% else they could face hefty fines.

Because of this scenario, there is tension between the government and the people. The people of Venezuela are calling for more than palliative solutions: They are clamoring for an urgent definitive resolution of the power crisis that has aggravated the country’s precarious economic situation. If the escalating tension is any indication, Venezuela will continue to reel from the effects of a deteriorating public security, social stability and economic viability, unless the severe power shortage is urgently redressed.

Electricity Minister Luis Motta looks at the massive Guri Dam, virtually dry because of the drought.
Courtesy Reuters.

How did things get so bad?

Venezuela heavily relies on hydroelectric power from the Guri Dam, which, according to estimates, provides more than 60% of the country’s electricity. While hydropower is usually a clean and reliable source of electricity, a prolonged drought or a persistent absence of rain can cause water levels in reservoirs to fall below what is necessary to spin the turbines in dams. This is what is happening to Venezuela in the face of the El Niño weather phenomenon. Reuters reported that in early April 2016, the water level at the Guri Dam is already at its historic low of 797 feet.

Countries that rely on hydroelectricity need a sufficient back-up power infrastructure that will support the supply of electricity when the water in reservoirs run dry. Unfortunately, Venezuela does not have one that can respond to its present electricity requirement. But, that is not to say that the country did not invest in its electrical infrastructure. In fact, according to Victor Silverman, historian at the Pomona College, in an interview published by www.wired.com, Venezuela invested around USD 10 billion in electrical generation under the presidency of Hugo Chavez. The problem, however, is that electricity consumption fast outstripped the available supply.

Courtesy Energy Information Administration

During the presidency of Chavez, Venezuela saw a notable decline in poverty, as the World Bank reports that the country decreased its poverty rate from 50% in 1998 to 30% in 2013. This meant that a great number of Venezuelans enjoyed an improvement in their standard of living, and an increased availability of money, which allowed them to purchase items that consume electricity, like TVs, refrigerators, air conditioners, and blow dryers, among others.

During that time, Venezuela, which has one of the world’s largest oil reserves, was also reaping the economic advantages of high oil prices. Wired reports that the country channeled the revenue from oil exports into social programs that improved the quality of life of its citizens. Not only did the government made healthcare and food more affordable, it subsidized fuel and electricity, and froze power rates. This prompted Venezuelans to consume electricity at a higher rate compared to other countries in Latin America.

Numbers from the US Energy Information Administration supports this: Between 2003 and 2012, Venezuela’s electricity consumption increased by 49%, largely owing to the economic and social improvement under the presidency of Chavez. However, installed capacity expanded by only 28%. This wide disparity took a toll on the country’s power grid.

The drought of 2009-2010 caused the water level at the Guri Dam to nosedive. According to www.vox.com, what ensued was a power shortage that forced to government to implement rolling blackouts, forced holidays and fines for heavy electricity users, like businesses, factories and mines. In the months after, added Vox, the government spent USD 1.5 billion to procure and install back-up generators throughout the country. But, owing to a lack of maintenance, the supplemental generators were not properly utilized, leaving the country’s transmission lines overburdened and unable to handle major electricity fluctuations.

Analysts say that the electricity crisis in Venezuela was never genuinely resolved from that point on. Further blackouts hit the country from 2012 to the present, and the people of Venezuela are losing hope of ever seeing an end in sight.

How can the power crisis be resolved?

Quoting energy experts, to provide a long-term resolution to Venezuela’s power crisis, the country needs to upgrade its existing dams, install reliable sources of back-up power plants in times of drought and prolonged low-rain seasons, and refurbish its transmission and distribution grid. This can be achieved through a well-executed investment plan, which requires a sizeable amount of financial resources and a competent oversight.

Unfortunately for Venezuela, the country’s economy has been severely hit by the collapse in oil prices over the past few years.  The days of buoyant revenues from oil exports have sailed, and now the government finds itself cash-strapped and deeper into debt. The country is now struggling with food shortages, and scarcity of basic goods and medicines, and with the prevailing power crisis, analysts predict that the country’s economy will deteriorate even further.

What Venezuela needs are viable power solutions that will provide reliable electricity to its industries and, consequently, spark a sustainable economic recovery. What Venezuela needs are affordable power solutions that will not require millions of dollars to buy, construct and maintain. What Venezuela needs are immediate power solutions than can be rapidly delivered and installed, and can supply consistent and reliable power within days and not years.

Multi-megawatt temporary power solutions can pave the way for a decisive resolution of the power crisis in Venezuela.  

In this time of economic recession and a devastating power crisis, Venezuela and its heavy industries will find considerable benefits in hiring the services of temporary power providers. By choosing temporary power plants, there will be no need for the Venezuelan government nor for industrial companies to spend scarce resources on capital expenditure, which is usually the case when procuring power equipment or building permanent power facilities. The government or the industrial companies can conveniently pay for the rented electricity from their operating revenues. As operations grow and the requirement for electricity increases, the government or the industrial companies can simply choose to add more power modules to the existing power plant, precluding the need to buy additional equipment or build other permanent facilities. Likewise, in case the power requirement decreases, the load of the temporary power plant can be proportionally adjusted.

The latest temporary power plants do not require heavy civil works, and can be connected to the grid regardless of its quality or age. There will be no need for extensive site preparation nor for the refurbishment of the transmission and distribution grid prior to operating temporary power plants. Owing to this, as soon as the generators and other equipment arrive on site, they can be installed, commissioned and powered on within days. In a matter of days, the country and its industries will be supplied with consistent and reliable electricity.

Temporary power providers offer a full range of service that includes the operation, maintenance and servicing of temporary power plants. The government or the industrial companies will be relieved of any responsibility in running or maintaining the power plants, thus can focus on their more essential functions. Temporary power providers have expert in-house engineers that will ensure that the power plants run at the optimal level at any given time.

As soon as the requirement for supplemental power passes, the government or the industrial companies can simply choose to end the contract with the temporary power provider. The entire temporary power plant will be demobilized, leaving no idle power equipment nor permanent power plants that will require constant maintenance.

There is a solution

Such a debilitating power shortage is not unique to Venezuela. Hydropower-dependent countries around the world are suffering from the same problem, and are struggling to find a viable solution. At times, governments and power utility providers are content with merely mitigating the effects of the power crisis, thinking that curative solutions will take enormous amounts of resources and years, sometimes even decades, before completion. There are sustainable answers to the world’s most pressing power problems, and one of them are temporary power solutions. Paradoxical as it may, turning to temporary power solutions can open doors to a long-term resolution of even the most severe of power challenges hounding our world today.

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Sources consulted:

“The roots of Venezuela’s appalling electricity crisis”, http://www.vox.com/2016/3/17/11254860/venezuela-electricity-crisis 

“Venezuela’s economic success fueled its electricity crisis”, http://www.wired.com/2016/04/venezuelas-economic-success-fueled-electricity-crisis/

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There Is an Immediate Solution to Sub-Saharan Africa’s Power Challenges

Access to reliable electricity is essential to human development and to a country’s sustainable economic progress. Today, having electricity is vital in providing basic social services to people, conducting business and running industrial operations. Unfortunately, billions of people around the world still do not have access to reliable electricity, with a great number of them living in the rural areas of Sub-Saharan Africa.

In its publication World Energy Outlook 2015, the International Energy Agency (IEA) reveals that there are approximately 634 million people in Sub-Saharan Africa without access to electricity, and that the average national electrification rate in the region only stands at 32%.

It also reports that although electrification efforts are underway in Sub-Saharan Africa, electrification in urban areas has widely outpaced that in rural areas since 2000. In fact, the latest figures show that the average urban electrification rate in Sub-Saharan Africa stands at 59%, while that of rural, in contrast, stands at only 17%.

By virtue of the above observations, IEA says that Sub-Saharan Africa has now become the “most electricity poor region” in terms of the total number of people and the share of its overall population.

In a separate release, the World Bank ascribes the region’s energy poverty to various factors, including low access and insufficient capacity, and poor reliability. It notes that the electrification rate in Sub-Saharan Africa is lesser than other low-income countries, and that the entire installed generation capacity in the region (excluding South Africa) is only 28 GW, comparable to that of Argentina.

It further observes that due to poor reliability of the region’s existing power infrastructure, Sub-Saharan Africa's residents and industries experience power outages equivalent to 56 days per year. As a result, it adds, businesses and industries lose anywhere between 6% and 20% of sales revenues.

It, then, sounds a warning that the shortcomings in the region’s power sector are a real threat to Sub-Saharan Africa’s long-term economic growth and competitiveness.

Electrification Efforts are underway

Today, driving the growth of Africa’s energy sector takes the spotlight at various industry conferences and engagement events all around the world, such as the 2016 Africa Energy Forum, which transpired in late July. These gatherings provide a venue for a notable number of industry stakeholders, including government officials and head of relevant ministries, regulatory authorities, power providers like Altaaqa Global Cat Rental Power, financial institutions and investors, to talk about salient energy issues and cast a forward-looking gaze at opportunities for the betterment of the sector.

Significantly, key industry stakeholders are now undertaking myriad power projects in Sub-Saharan Africa, with the objective of increasing the region’s overall access to reliable electricity, enhancing the effectiveness and governance of state-owned utilities, and rehabilitating ageing and dilapidated power infrastructure, among others. 

While the above-mentioned initiatives aim to promote long-term development within Sub-Saharan Africa’s power sector, they may, in reality, take several years to come to fruition. 

Without denying the merits of the ongoing efforts, we observe that what Sub-Saharan Africa needs are reliable power solutions that can be immediately deployed, delivered, installed and operated. In the face of the region’s suppressed electrification rate and issues of intermittency and unreliability among its existing power infrastructure, what it needs are power solutions that can guarantee a continuous and reliable supply of electricity anytime and anywhere it is needed. 

Multi-megawatt temporary power solutions can open doors to a definitive resolution of Sub-Saharan Africa’s power challenges. 

There is a solution: Temporary Power Technologies

Temporary power plants represent an immediate, reliable, scalable and cost-efficient solution to the region’s power concerns.

 

The installation of temporary power plants does not call for extensive site preparation nor for the refurbishment of transmission and distribution grids. As soon as the generators and other power equipment arrive on site, they can be immediately installed, commissioned and powered on within days. In a matter of days, countries in Sub-Saharan Africa will be supplied with a consistent and reliable electricity supply.

The governments, power utility providers, nor industries and businesses in Sub-Saharan Africa will not need to spend scarce financial resources on capital expenditure, which is usually the case when procuring large-scale power equipment of building permanent power facilities. The governments and other industry stakeholders can conveniently pay for the rented electricity from their operating revenues. As industry activities grow and the requirement for electricity increases, they can simply choose to add more power modules to the temporary power plant, precluding the need to buy additional equipment or build other permanent facilities. By the same token, in case the power requirement decreases, the load of the temporary power plant can be proportionally adjusted.

Temporary power providers offer a full range of services, including operating and maintaining the power plants. Temporary power providers have well-trained, expert engineers that will ensure that the power plants run at the optimal level all the time.

As the region eases through its power challenges, and as soon as the long-term power sector development plans are gradually rolled out, the governments or the power utilities can simply choose to end the temporary power contract. The entire temporary power plant will be demobilized, leaving no idle power equipment nor permanent power plants running on part-load and requiring constant maintenance, servicing and upgrades. 

Sub-Saharan Africa Needs Electricity to Progress 

Modern and industrializing economies, such as the countries of Sub-Saharan Africa, need an efficient and reliable supply of electricity to sustain their social and economic activities that will fuel their further growth. Temporary power solutions can immediately provide them with the much needed boost in power supply, making inroads into a sustainable and viable social and economic progress.

Spotlight on Africa’s power sector at the AEF 2016

The development of Africa’s power sector was in focus at the 2016 Africa Energy Forum (AEF 2016), in late June in London, UK. Altaaqa Global is proud to have taken an active role in the event, which had thrown the spotlight on the latest innovations that drive the growth of Africa’s energy sector, including temporary power technologies. Altaaqa Global had the opportunity to talk to various industry stakeholders about its multi-megawatt rental power plants, and how it can help African countries gain access to reliable electricity. 

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Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com 

In Search of an Immediate Solution to Southern Africa’s Energy Challenges

Southern Africa’s hydropower sector is reeling from the effects of the drought caused by the intense El Niño weather phenomenon. With allied power infrastructure unable to provide the needed supplemental electricity, is the region left with no choice but to ride out the hard times?

Many countries in southern Africa are facing extended periods of drought or low rain, owing to the ongoing El Niño weather phenomenon. The impact of the drought is so pronounced that various governments in the region label it as the worst in decades. For example, industry reports reveal that the government of South Africa considers it as the worst since 1982, while the Zimbabwean Ministry of Agriculture compares it to the economically crippling drought of 1992, which affected close to 86 million people across 10 countries.   

Several countries in southern Africa depend on hydropower generation for an essential amount of their electricity supply. In fact, industry studies estimate that hydropower is responsible for more than 21% of power generation in the Southern African Power Pool (SAPP, a common electricity market among 12 southern African countries) in 2015. Thus, depressed water levels at major dams, due to drought and extended low-rain season, can bring about significant power generation challenges, which lead to widespread blackouts, causing inconvenience to residents and operational interruption to businesses and industries. 

The electricity-related effects of the drought are looming large in several countries in the region. In a recent release by Control Risks (an independent global risk consultancy), it reported that the ongoing drought had aggravated the already-precarious electricity situation of the SAPP. In Mozambique, for instance, the country’s National Water Board claimed that main hydropower facilities were struggling to keep up with the power generation requirements. In Zambia, meanwhile, Energy Minister Dora Siliya said that the water level at the Kariba dam, which accounts for a lion’s share of power generation capacity in Zambia and Zimbabwe, was “extremely dangerous”. 

Persistent blackouts and continual load shedding hurt the economy of southern African countries. Regular power interruption threatens to rein in the region’s economic growth, and to suppress the successes that southern African countries have achieve in recent years. In recognition of the urgency of the situation, the region’s governments have launched various short-, medium- and long-term solutions to the power challenges, including improving and maintaining hydropower and other power stations, enhancing electricity generation capacity, and managing electricity demand. Such solutions, however, can take years, even decades, to complete, and with the gravity of the present situation, it is safe to assume that countries in the region could not afford to wait that long.

With all due respect to the efforts launched by the governments, we observe that the need of the hour is an efficient power solution that is able to immediately and economically bridge the gap in electricity supply. Multi-megawatt temporary power plants represent a viable short- to medium-term solution to the region’s hydropower challenges.

A feasible solution to southern Africa’s power challenges

Temporary power plants represent an immediate, reliable, scalable and cost-efficient solution to the region’s power concerns. 

The installation of temporary power plants does not call for extensive site preparation nor for the refurbishment of transmission and distribution grids, which can take anywhere between months and years to finish. As soon as the generators and other power equipment arrive on site, they can be immediately installed, commissioned and powered on within days. In a matter of days, countries in southern Africa will be supplied with a consistent and reliable electricity supply.

The governments, power utility providers, nor industries and businesses in southern Africa will not need to spend scarce financial resources on capital expenditure, which is usually the case when procuring large-scale power equipment of building permanent power facilities. The governments and other industry stakeholders can conveniently pay for the rented electricity from their operating revenues. As industry activities grow and the requirement for electricity increases, they can simply choose to add more power modules to the temporary power plant, precluding the need to buy additional equipment or build other permanent facilities. By the same token, in case the power requirement decreases, the load of the temporary power plant can be proportionally adjusted.

Temporary power providers offer a full range of services, including operating and maintaining the power plants. They have well-trained, expert engineers that will ensure that the power plants run at the optimal level all the time.

As the region eases through its power challenges, and as soon as the long-term power sector development plans are gradually rolled out, the governments or the power utilities can simply choose to end the temporary power contract. The entire temporary power plant will be demobilized, leaving no idle power equipment nor permanent power plants running on part-load and requiring constant maintenance, servicing and upgrades.

Powering southern Africa’s success

Industrializing economies, such as the countries in southern Africa, need an efficient, reliable and continuous supply of electricity to sustain their social and economic activities that will spur their further growth. Temporary power solutions, in support of hydropower and other power generation stations, can immediately provide them with the much needed boost in power supply, paving their way into a sustainable and viable social and economic progress.

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Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

Utilizing Stranded Gas to Boost Long-Term Production: A Case for Temporary Power Technologies

Oil & gas operators are constantly in search of innovative ways to optimize field operations, enhance long-term production, keep operational expenditure in check, and minimize the environmental impact of their operations. In this light, oil & gas operators are increasingly looking into in-field power generation.

Traditionally, oilfield equipment is powered by generators running on diesel, owing to the fuel’s wide availability, safety, and economy, and to the ease of installation of diesel-run generators. In recent years, however, natural gas-powered generators are progressively gaining acceptance as a workable alternative to diesel-run ones. Previously, using natural gas as fuel for in-field power generation was an unattractive proposition, primarily because of the absence of proper infrastructure and appropriate technologies to capture, process and utilize stranded natural gas. Today, with the existence of cutting-edge power generation solutions that can run on onsite natural gas, together with the increase in unconventional gas resources and the emission regulations in vigor in many countries around the world, oil & gas operators are gradually realizing the economic and environmental advantages of using natural gas to provide power for their operations.

Natural gas generator systems prove particularly beneficial in bigger and longer-duration projects. While it is true that natural gas units require a significant upfront expenditure, operating them have been shown to be more economical compared to generators running on other fuels, mainly due to fuel savings. Additionally, with natural gas generators, oil & gas operators can ensure maximum field uptime, because such equipment has longer run times in between service intervals.

At present, oil & gas operators have been keenly looking into expanding the scope of natural gas-powered generators, beyond the traditional drilling and hydraulic fracturing.

While power solutions running on natural gas are gaining ground, deploying them on a large scale still comes with particular challenges. Oil & gas operators will find benefit in partnering with a reputable and reliable power solutions provider, who can help them address the related obstacles and meet the power requirements of each stage of operations. Temporary power providers can offer alternative fuel technologies that represent a viable solution to the wide range of challenges related to the utilization of natural gas-powered units in oil & gas operations.

In this context, what should be expected of a reliable power partner?

A reliable temporary power provider should be capable of supplying a complete and integrated power solution to ensure an efficient and smooth installation of natural gas temporary power plants. It is imperative that the solution on offer should provide for modules to condition on-site natural gas, a complete electrical infrastructure (including generators, cables and other allied equipment), and provisions to utilize an alternative fuel source, in cases when the gas supply from the main source is insufficient.

A temporary power partner should offer flexible power technologies that can ensure consistent power generation amidst fluctuating gas supply volumes. This provision can particularly prove beneficial for nascent field operations, before a consistent source of field gas is established. For instance, the temporary power plants can initially run on liquid propane, then seamlessly transition to natural gas once the infrastructure to access gas from proximate pipelines is set up.

An efficient temporary power provider should also have the experience, expertise, and necessary provisions to be able to act swiftly in case problems arise at the site. Various field parameters should be constantly monitored and communicated to operations personnel at the site. They should be immediately notified of any problem relating to gas supply or generator function, and should always be ready to resolve the problem and restore the optimal operations of the temporary power generation systems.

Oil & gas operators are progressively understanding the opportunities of leveraging natural gas as a power source. However, without the proper infrastructure and appropriate technologies in place, oil & gas operators are restricted in capitalizing on this valuable resource. Temporary power solutions, such as gas generators or generators capable of running on more than one fuel, can help oil & gas operators in effectively utilizing natural gas to decrease overall operational expenditure and reduce field emission levels while keeping optimal production up-time.

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Altaaqa Global

Tel: +971 56 1749505

jsanchez@altaaqaglobal.com

For more information on temporary power solutions and their application on oil & gas operations, visit: http://www.altaaqaglobal.com

Averting a Power Crisis: Is Curtailing Electricity Consumption the Best Option?

It seems logical, doesn’t it? If there was a hole in your boat, through which the water entered, what would you do? Plug it. If you lifted a box that proved to be too heavy for you, what would you do? Let it down a while, and unload a little. If you had colds, and it was making it hard for you to breathe, what would you do? Blow your nose.

The parallel couldn’t be clearer: If electricity was not enough, and consumption was outstripping the supply, what would a country, a province or a city do? Curtail the demand by all means, even if it means limiting work hours and mandating energy savings. But, does it really solve the problem, or is such a solution merely palliative?

Many hydropower-dependent countries around the world are facing an electricity shortage, owing to prolonged droughts brought about by the El Nino weather phenomenon. The absent or extremely low rainfall levels is choking off hydroelectric dams essential for supplying a lion’s share of the countries’ electricity resources. Because the countries’ power generation is severely hampered, governments and utility providers are forced to implement drastic electricity-conservation measures to make do in the face of the energy challenge.

Aside from load shedding and peak shaving, some countries have started rolling out a mandatory additional day-off for certain sectors, in an effort to control power consumption. While some employees welcome such directives, others are feeling apprehensive. Marta, 45, government employee, shares her thoughts. “I should be happy that I have more time to catch up on sleep and play with my kids, but I am worried about our productivity.” Just a few months ago, Marta’s office cut the working time short by two hours. “A lot of things are not getting done, because we were only working for six hours a day for five days. I cannot imagine what happens now that we will only be working for four days.”

Economists share Marta’s perspective, when they said that decreasing the number of working hours and shortening the work-week for government offices and private companies could worsen the countries’ already reeling economic performance. They said that the implementation of such measures could bring about devastating effects to the countries’ economic productivity, already depressed from the power crisis.

Alberto, 51, restaurateur, does not subscribe to the four-day work-week. “I cannot afford to have my restaurant closed for three days a week. It’s just not possible from a business stand-point.” Unfortunately, Alberto’s restaurant is in front of Marta’s office, so the four-day work-week affects its footfall. “Most of my customers are from that office. They take lunch here, and used to take something out for dinner. When they started working for two hours less, most of them stopped ordering for dinner, but at least they still eat lunch. Now, that they are off for three days, I don’t know how I can fill up the seats.”

Power-conservation measures, such as shortening work-hours, may have merits in immediately controlling electricity consumption, but there could be productivity-related drawbacks underneath the surface. As most businesses and industries need electricity to be productive, requiring them to suspend operations to save on power may be counter-productive to a certain extent.

In times when a country’s power generation is no longer enough to support the demand, governments and power utility providers may find benefit in turning to temporary power solutions to urgently supply the necessary electricity.

By having temporary power solutions on board, governments and power utilities need not spend scarce resources on capital purchase, which is usually the case when building permanent power plants, or refurbishing/rehabilitating old permanent power stations. Moreover, governments and power utilities can pay for the electricity produced by the hired power plants from their operating revenues. Hiring temporary power solutions also brings considerable cost savings, owing to the efficiency and reliability of temporary power technologies. Governments and power utilities will be able to save on fuel- and maintenance-related costs, vis-à-vis running or maintaining dated permanent power facilities.

Temporary power plants are flexible in power and voltage, and their capacity can be increased or decreased according to demand, so governments and power utilities can choose to add power modules as the requirement for power increases. Readily available and rapidly deployed and installed anywhere in the world, they temporary power plants are able to function in virtually any locations, including in areas where traditional power infrastructure, like grids and substations, is outdated, damaged or absent.

Temporary power plants are capable of supplying reliable electricity while droughts persist. As soon as the weather conditions improve, and dams have enough water to generate sufficient electricity, governments and power utilities can simply end the contract, and the temporary power solutions will be demobilized, leaving no idle permanent infrastructure or equipment.

Power supply insufficiency adversely affects big and small businesses alike, like Alberto’s restaurant; government services, as in the case of Marta; and an entire country’s economy. Persistent power outages result in hampered economic productivity that reins in the development of any country. In times of power-related challenges, such as drought for hydropower-dependent countries, temporary power technologies can supply the necessary electricity to keep businesses and industries going, while natural conditions eventually turn favorable.

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PRESS INQUIRIES

Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

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