Do You Really Have to Buy?

Buy or Rent?

Here is a rundown of factors to consider before investing in a permanent, semi-permanent or long-term rental power plant.

There is a popular saying that goes: The best things in life are free. While this article is not going to contend with that, it will dare say that some things that one really needs come with a price. A hefty price, at times.

While owning a car, a home or professional engineering tools gives one a sense of pride and accomplishment, there may be cases when buying (could mean investing, in this article) is not always the most rational choice to make.

By the same token

The scenarios to consider when buying an industrial building, truck or large construction tools are no different from the factors affecting the choice of building or renting a power plant. A government or a utility company have to weigh the same aspects (duration, availability of resources, urgency and location) in deciding whether investing in a permanent power plant is cost beneficial vis-à-vis renting temporary power generation facilities.

Duration: Stakeholders need to ascertain the duration of the need. Case-in point: There are requirements that only last for weeks or months, at most. Say, the increased energy demand in summer or the need to power stadia during football matches: These are exceptional events that would only require supplementary power for a short amount of time. Imagine, how many millions of Dollars would a government or a utility company spend in building a permanent infrastructure that would only be sparingly used? In cases such as these, renting may be a sounder choice.

Availability of resources: Constructing power plants entail a large sum, which may oftentimes need to be loaned or agreed upon with institutional investors. If a government with limited funds needs to shell out a considerable amount of money, there is a possibility that the allocation for other services, such as education, agriculture or healthcare, will need to be restructured. Will it be wise to take a portion of the budget for elsewhere and put it in the construction of an electric power plant if the latter will not be extensively used?

Urgency: Completing a permanent power station needs years – some, even decades. Imagine: Factories need to ramp up production for peak seasons, like Christmas, Eid or Diwali. Will they need to wait for permanent energy facilities to be completed before they can take advantage of the increased market demand? What if their products are no longer in-demand after several years? In these cases, rental power plants could represent an immediate, cost-effective solution to seize business opportunities as they present themselves.

Location: When a permanent power plant has been built, it may be difficult, if not impossible, to uproot the facility and transfer it elsewhere should the location prove to be challenging under certain circumstances. Utility companies has to make sure that its expert engineers are able to access the location 24/7 and that spare parts are always available in times of emergency. They also have to guarantee that the chosen place can endure harsh conditions, as power plant closures can bring about disastrous consequences to cities, regions and even to a whole country.

 Horses for courses

The choice of either renting or to outright buying depends on the tendencies of the user. Foresight and rationality are always key in making informed and balanced decisions. There is opportunity cost in everything: One is always bound to absorb losses that accompany an option not selected. The challenge, then, is to calculate risks and maximize the benefits of one’s preference. 

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PRESS INQUIRIES

Robert Bagatsing

Marketing Manager

Altaaqa Global CAT Rental Power

Tel: +971 56 1749505

rbagatsing@altaaqaglobal.com

Altaaqa Global Nominated for Two Platts Global Energy Awards

Altaaqa Global nominated in two major categories and Caterpillar Inc. nominated in one category 

Altaaqa Global has recently been selected as a finalist for the Platts Global Energy Awards, an annual program honoring and recognizing excellence in leadership, innovation and performance in the industry.

Competing head-to-head with the best energy organizations around the world, Altaaqa Global has been nominated for an award in two major categories: Premier Project Awards – Construction and Premier Project Awards – Engineering. In the history of this program, Altaaqa Global is the only rental company that has made it to the finals. Caterpillar Inc. has been nominated as well for the Leading Technologies Awards – Commercial Application.

Often considered the “Oscars” of the energy industry, the Global Energy Awards received case studies from over 200 companies this year. Winners will be announced at a celebration on December 12 in New York City.

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About Altaaqa Global

Altaaqa Global, a subsidiary of Zahid Group, has been selected by Caterpillar Inc . to deliver multi-megawatt turnkey temporary power solutions worldwide. The company owns, mobilizes, installs, and operates efficient temporary independent power plants (IPP’s) at customer sites, focusing on the emerging markets of Sub-Sahara Africa, Central Asia, the Indian Subcontinent, Latin America, South East Asia, the Middle East, and North Africa. Offering power rental equipment that will operate with different types of fuel such as diesel, HFO, natural gas, or dual-fuel, AltaaqaGlobal is positioned to rapidly deploy and provide temporary power plant solutions, delivering electricity whenever and wherever it may be needed. 

Learn more about interim power plants, temporary energy solutions & rental power generator for mining, airports (aviation), industrial manufacturing, government services, sea ports (maritime), utilities, power distribution, electricity transmission, power generation and rural electrification at http://www.altaaqaglobal.com  

Learn more on how we are solving the electricity shortage, power outages, energy crisis, load shedding, rolling blackouts and plant turnarounds at http://www.altaaqaglobal.com/solutions

Français

Altaaqa Global, filiale du groupe Zahid, a été sélectionnée par Caterpillar pour installer ses solutions clés en main de production temporaire d'électricité dans le monde entier. Avec son offre de location d'équipements capables de fonctionner avec différents carburants (diesel, gaz naturel ou bicarburant), Altaaqa Global est bien positionnée pour déployer rapidement des solutions de génération électrique temporaire afin de produire l'électricité à l'endroit et au moment où les besoins sont les plus grands.

Español 

Altaaqa Global, filial de Zahid Group, ha sido seleccionada por Caterpillar para proporcionar soluciones de energía temporales llave en mano multimegavatio en todo el mundo. Con una oferta de equipos energéticos de alquiler que funcionan con diferentes tipos de combustible como diésel, gas natural, o dos combustibles, Altaaqa Global está posicionada para desplegar rápidamente y proporcionar soluciones de plantas de energía temporales, proporcionando electricidad cuando y donde se necesite.

Português

A Altaaqa Global, uma subsidiária do Zahid Group, foi selecionada pela Caterpillar para fornecer soluções de energia temporária em multimegawatts de pronto uso em todo o mundo. Oferecendo equipamentos de energia para aluguel que operam com diferentes tipos de combustível, como diesel, gás natural ou duplo combustível, a Altaaqa Global está em posição para implementar rapidamente e fornecer soluções de usinas de energia temporária, fornecendo eletricidade quando e onde for necessário.

نبذة عن شركة الطاقة جلوبال

تم اختيار شركة الطاقة جلوبال، إحدى فروع مجموعة زاهد بالمملكة العربية السعودية، من قبل شركة كاتربيلر لتقديم الحلول الشاملة للطاقة المؤقتة متعددة الميجاوات حول العالم. وتمتلك الشركة وتعد وتنشئ وتشغل محطات الطاقة المستقلة والمؤقتة والفعالة (IPP’s) بمواقع العميل وتركز على الأسواق النامية في مناطق شبه الصحراء الأفريقية، وآسيا الوسطى، وشبه القارة الهندية، وأمريكا اللاتينية وجنوب شرق آسيا، والشرق الأوسط وأفريقيا الشمالية. ومن خلال توفير معدات الطاقة المؤقتة التي تعمل على أنواع من الوقود مثل الديزل والغاز الطبيعي والوقود المزدوج، تتميز شركة الطاقة جلوبال بقدرتها على الإمداد السريع وتوفير الحلول لمحطات الطاقة المؤقتة وتوفير الكهرباء في أي وقت وفي أي مكان بحاجة إلى الكهرباء. 

MEP Magazine's 2013 Top 50 Power List in the Middle East

Everyday, we are proud to provide electricity & improve the lives of thousands of people in countries where our power plants are operating. And we are humbled when our efforts are recognized by leading publications. 

Thank you to MEP magazine for selecting Altaaqa Global as one of the Middle East's Top 50 PowerList of 2013.