How Do You Stop Modern Civilization from Collapsing?

We know that oil is one of the most essential elements of life today. The global economy has been developing and expanding with oil as its life source for more than a century already. It has assumed a notable function in the modern world that according to studies oil accounts for approximately 40% of the world’s primary energy source, and fuels close to 100% of all means of transportation, which in turn accounts for about 20% of the global GDP. With such an enormous role in the lives of humans, if oil stopped flowing today, the modern civilization would collapse.

The extent of oil’s influence in our daily lives makes it almost impossible to find a suitable substitute should the world’s supply of oil dwindle. Experts say that until today no viable alternative to oil has been developed, and there is no clear indication that this generation will ever get to see one. Renewable energy sources are possible candidates but, despite their exponential growth, there still remains a vast ground to cover before they can match the size and range of application of oil. For reference, let us take a look at this comparison: World oil production in 2014 was almost 80 million barrels per day, which, at approximately six gigajoules per barrel, equates to 5.7 terawatts of power production. On the other hand, according to the Global Wind Energy Council, the total cumulative wind installation as of 2014 stand at about 369,553 megawatts. Solar power installed capacity, as cited by European Photovoltaic Industry Association, was at 136,697 megawatts. The discrepancy between the power produced by oil and that of renewable energy sources is notably wide that experts say that even if renewable power generation exponentially increased every decade for 100 years, it would still be trailing oil today.

With the survival of the modern world at stake, oil & gas facilities cannot afford to shut down, even momentarily. There are cases, however, when such occurrences cannot be avoided, and the need to refurbish, retool, expand or construct plants proves to be equally vital. When moments like these come, oil & gas facility operators can find merit in hiring the services of temporary power providers, which can deliver the necessary power when the permanent sources are still undergoing enhancements.

Rental power plants find application in various activities within the oil & gas industry. They can be utilized by companies specializing in oil & gas drilling services, or by those that deal with oil & gas exploration and production. They can also be useful to energy equipment service providers, and rig manufacturing and maintenance companies. Mobile power stations have the flexibility to adapt to the demands of different oil and gas operations by increasing or decreasing their power generating capacity. They represent a cost-effective response to increased seasonal demands and power requirements, as they entail a significantly lower investment, especially for short- and medium-term use, compared to the cost of interrupted production and abandoned business opportunities. They can be delivered to and from virtually anywhere in the world, owing to their size and configuration, and can easily be powered on, thanks to its plug-and-play set up. Vis-à-vis building permanent power facilities, hiring the services of rental power companies protect a company’s cash flow and curtails avoidable spending commitments.

Powering the development of the modern world

Oil has been the world’s foremost energy source for myriad decades now, and experts agree that it will maintain such a role well into the 21st century. It has been highly instrumental in the immense economic, social and industrial advances of the modern world. Currently, oil accounts for around 40% of the world’s energy mix, and its applications are ever growing as the latest innovations in the industry have made oil cleaner, safer and more efficient than ever. There is no doubt that oil will continue to be the world’s primary driver for growth, hence keeping its sources pumping and producing has grown ever more crucial. In this light, having back-up, supplemental or emergency energy sources, like temporary power plants, will be indispensable.  

The world recognizes that oil is a finite resource, and that living life without it can be a closer reality than most of us think. But, until such time that humanity develops a source of energy that can fully take the place of oil, it will remain the chief fuel of global development, and should consistently be viable and available.

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Robert Bagatsing

Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

How Can Mining Companies Help Supply Electricity to Africa?

A recent report from the World Bank, titled “Power to the Mine: A Transformative Opportunity for Sub-Saharan Africa” cited that mining companies could play a key role in harnessing Africa’s abundant energy sources to overcome the lack of electricity that reportedly affects one in three Africans.

Through the report, the World Bank called on the mining industry to collaborate more closely with electricity utilities in the region to meet their ever-growing demand for energy. In stark opposition to supplying their own energy on site, the report suggested that mining companies be customers of electricity utilities or independent power producers, which, in turn, could help the latter grow and develop better infrastructure to bring affordable electricity to more sub-Saharan communities.

The report found that the mining industry’s demand for power would approximately triple until 2020, to reach over 23,000 MW. To meet the year-on-year increase, the World Bank document reported that many mining companies had been opting to supply their own electricity through diesel generators rather than buying power from the grid because of shortcomings in the national power systems in the region.

The report advocated that if mining companies in sub-Sahara integrated with power utilities in the region, it would not only bring substantial savings to mines, but would also introduce electrification to communities and investment opportunities to the private sector. It called for the governments, power utilities and mining companies to work together to make such partnerships possible and, eventually, viable.

The success of such integration, however, may anchor on other issues more than working together. There is no doubt that such a proposal holds a tremendous potential: for mining companies to save on power costs, for utility companies to improve viability and for the population to benefit from an increased access to electricity. But, in order for such partnerships to reap the maximum advantages, power utilities in the region should be able to fully support the electricity demand of the mining industry, and to shoulder the eventual increments estimated in the coming years, and not at the expense of the energy supply allocation for the greater population.

As it stands, two-thirds of people in sub-Sahara live without electricity and even those who are connected to power sources suffer continual disruptions. Sub-Saharan Africa only generates 80 GW of power each year, and with the current rates of population growth and the persisting deficiency in investment in power infrastructure, the electrification rate may go lower than where it is now.

As the World Bank proposal gradually gains ground, supplemental power technologies can help regional power utilities supply the electricity required not only by the mining industry, but also by the greater population. Temporary power plants have the ability to replicate or supplement the functions of permanent power plants, be they coal, nuclear, hydro, solar, wind or running on other renewable energy sources. Large-scale rental power plants can be rapidly delivered from and to anywhere in the world, and can be installed and powered on in as short as a few days. As the permanent power sources are continuously enhanced, temporary power plants can fill in the gap in electricity supply in the short- or medium-term until the enhancements are completed. More importantly, rental power stations represent lower capital spending for electric utilities, which will be able to use their savings to fund other projects.

The World Bank proposition is advantageous on several fronts, but in order for it to be feasible, governments and utilities should take into consideration the current and the projected energy demand of the mining industry to have a more objective assessment of a country’s power situation and possibilities. They should be able to ensure that they can provide electricity to the mining industry without sacrificing the supply of energy towards the other industries and sectors of society. As of the moment, the integration may still not be organically possible, but with the aid of existing supplemental power technologies, the hurdles to its completion may gradually be surmounted.

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Robert Bagatsing

Altaaqa Global

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

The Backup Plan: What Fuels the Temporary Power Plant Market in India

India is facing an acute power shortage due to the observed inability of dated and inefficient power infrastructure to support the growing energy demand of the public, as well as of the industries. In fact, according to a recent report by the Central Electricity Authority, India loses about INR 414,800 crore of its GDP due to electricity shortage. The northern states of Delhi, Haryana, Uttar Pradesh, Himchal Pradesh and Uttarakhand were said to be the worst affected with a deficit of 7.1% or 2,912 MW. On the other hand, the northeastern region of Assam, Manipur, Meghalaya, Arunchal Pradesh, Tripura, Nagaland and Mizoram were said to have recorded a deficit of 5.9%.

Expanding economy

These conditions set a backdrop for better prospects for the temporary power industry in India. While still in its nascent stages, the rental power market in India has an encouraging outlook, with the coming years expected to see a bullish rise in the country’s GDP. When economies are growing, industrial and commercial activities tend to become energy-intensive. While the power infrastructure in India is being refurbished or enhanced, commercial and industrial entities will likely be more inclined to hire the services of rental power providers than lose production during maintenance, expansion or shutdown of permanent power facilities. Utility companies, in addition, turn to rental power options when demand for electricity spikes during summer months, or when electrification fails in times of natural calamities.

According to industry experts, however, rental power plants will find most opportunities in the Indian construction sector. The expected increase in infrastructure projects in India will necessitate economical, uninterrupted and reliable power wherever and whenever needed. Due to the observed inability of existing power infrastructure to support the present demand, let alone the additional requirement in the future, many construction sites will require standby power generation equipment to run round-the-clock without interruption.

The frenetic pace of construction will also entail power sources that can be swiftly delivered, rapidly installed and easily operated anywhere in India; and this is where rental power plants are most advantageous. Because they are containerized and relatively compact compared to permanent power infrastructure, temporary power stations can be shipped from and to any place on the planet, not barring remote areas where no one has ever been. They also have a plug-and-play configuration that makes them easy to install, connect and power on in a matter of days. They are equipped with the latest power technologies that allow them to be directly connected to the grid without the need for a substation, and to vary the electricity output depending on the precise need of the location.

Aside from utility and construction, rental power plants also find application in mining, oil & gas, shipping, telecom, events and emergency response.

Stringent environmental regulations

Another driver that is fuelling the development of the temporary power technology in India is the new Central Pollution Control Board (CPCB) II norms, which aims to reduce pollution in the entire country. Being an omnibus regulation, the norm will require different industries, temporary power equipment providers included, to comply with the cleaner emission standards. Observed to be even more stringent than its European counterpart, the CPCB II norms are welcomed by the industry, as it believes that it represents a step towards the development of rental power units that are not only efficient and viable, but also environmentally friendly.

The temporary power industry in India considers the move towards environmental stewardship beneficial not only to the manufacturers, but most certainly to the consumers. Proactive rental power companies have already introduced Earth-friendly generators, like those running or gas or dual-fuel, in most of their projects. Mobile power plants running on gas meets most worldwide emission requirements at 250mg/Nm3 of NOx level, even without after-treatment. On the other hand, equipment that runs on dual-fuel utilizes dynamic a gas-blending technology, and is equipped with specialized gas-treatment plants.

Powering India’s future

Though still gaining traction in the country, the Indian rental power market holds promise. The improvement in the country’s infrastructure, as well as the intensive activities of other industries, bodes well for the temporary power industry. Prospective customers in the country are also becoming more mature, and are gradually understanding the advantages of hiring rental power providers as opposed to not having power and letting go of production, profit or opportunities. Additionally, policy changes in India, like the CPCB II norms set up an environment conducive to the technological development of temporary power equipment, making them more suitable for a wider range of applications and appealing to a greater number of consumers.

*The article was originally published on the official website of Energetica India, www.energetica-india.net*

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PRESS INQUIRIES
Robert Bagatsing
Altaaqa Global
Tel: +971 56 1749505
rbagatsing@altaaqaglobal.com