Rental Power Plants Mitigate the Effects of Power Cuts on Manufacturing Facilities

Several hydropower-dependent countries around the world are currently experiencing the disruptive effects of prolonged droughts and low-rain season, not helped by the El Niño weather phenomenon being felt by most such areas. Power utilities in these countries have rolled out load shedding schemes in an effort to distribute the limited available power. Despite such initiatives, the power supply in these areas still remains scarce that residents, businesses and industrial facilities have been enduring power cuts that last for as much as 24 hours…

The power crisis in these hydropower dependent countries has adversely affected small-, medium- and large-scale manufacturing enterprises, which typically account for the majority of employment in such areas. In addition to lamenting about the debilitating consequences of power interruptions on operations, business operators have been complaining about employee productivity, saying that the usual 8 AM to 5 PM shift of their employees has been rendered academic, because workers spend most of their time doing no work due to power cuts. “In most cases,” commented a facility manager, “power is restored at the end of the day. Since we cannot predict when the power will go out, it has become difficult to plan the shifts, because no one knows the time when the power will be available.”

As a result of the prevailing constant load shedding, manufacturing industry players predict that a considerable number of companies will close down or cut back on expansion projects that would have created viable job opportunities. “We have not evaluated the damage of the power shortage,” said an industry player, “but we have seen that the power cuts have not spared even the large industrial areas.” The lack of assurance in the electricity supply, he continued, would force more companies to lay off workers due to their inability to sustain overhead costs amidst the little or absent production. “Because of the power supply insufficiency,” he added, “manufacturing companies will incur higher production costs due to start-stop production. They will also suffer substantial losses and increased fixed costs per unit due to lower volumes.”

In times of persistent load shedding, manufacturing companies will find tremendous economic benefits in hiring the services of temporary power providers. Reliable electricity is the lifeblood of manufacturing companies, and renting large-scale power plants can guarantee a constant supply of power to their facilities without the need to spend scarce CAPEX in building permanent power stations. In these difficult times for the industry, manufacturing companies will appreciate the fact that they can pay for the electricity produced by hired power plants from their operating revenues. Manufacturing companies can also choose to add power modules to the rental power plants as their operations expand and their requirement for electricity increase, for instance during peak production seasons.

Rental power plants are not only reliable, they are also environmentally friendly. Modern rental generators boast of cleaner operations, being able to run on a variety of fuels, including natural gas or dual-fuel. 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.

“Electricity is a critical input to production,” said another industry player, as he shared the apprehension of other business operators about not reaching their respective production targets for 2015. “We understand that the ongoing power situation is a crisis. We, need, however, to save the critical sectors that generate and create business for the country and employment for its people.”

End

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