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 Can Rental Power Help Grow Mining Operations?

The mining industry has played an integral part in the history and progress of countries and communities where it exists. Many mines sites, however, are in remote locations, where power infrastructure may not exist or are still developing, or where a reliable connection to national grids can still be improved. This poses a challenge to mine operations, established and developing alike, particularly in light of the fact that without access to a sufficient or reliable source of electricity, mining companies run the risk of losing on profit, valuable production time or opportunities for growth.

Temporary power and the Mining industry

It is most advantageous to specify temporary power during the pre-feasibility/feasibility stage of mining operations, when mining companies are applying for finance. This could help them secure financing for the project.

Temporary power solutions can support the growth phase of mine operations, because they provide flexibility, scalability, risk mitigation and cost minimization. Specifying the services of temporary power providers during this stage will preclude the need for mining companies to spend scarce CAPEX in procuring their own generators or building permanent power facilities. With temporary power, mines can opt to start small, then add power capacity as their operations grow. They can pay for the rented electricity from their operational profits.

As mine operations develop and become established, mining companies will eventually find benefit in building their own permanent power plants, which, however, may take a substantial amount of time to complete. While the permanent power plants are being constructed, temporary power can sustain the mine operations. As soon as the permanent facilities are constructed and fully operational, mining companies can simply end the contract, and the temporary power plants will be immediately demobilized. This way, mining companies will not have surplus equipment, because everything was only rented.

Temporary power solutions are also beneficial for ongoing mine operations, in times of power shortage or emergency situations. When mine operations need additional power to sustain production, temporary power providers can easily deploy and install temporary power plants at their sites in a matter of days to supply continuous and reliable electricity.

As commodity prices remain depressed, and full economic recovery continues to be elusive for developed and emerging countries alike, mining companies are in the midst of challenging times. In these times, mining companies cannot afford to subject their operations at risk, owing to lack of funds or long project lead times. Renting power does not require spending scarce CAPEX that is usually related to building permanent power plants. Temporary power plants can also be tailored to any power or voltage, so there is no longer a need to build support power infrastructure to run the rental plants. Additionally, installing temporary power plants will only take days, whereas constructing a permanent power infrastructure may span longer periods of time. This means that in a short time, mine operations can be up and running, and producing.

Hiring electricity can prove advantageous for both established and nascent mine operators. It can provide operational flexibility, enhance a site’s productivity and help optimize its processes without the need for a long lead time and a sizeable capital expenditure. As mining companies realize the benefits of hiring power, it will no longer be uncommon in the coming years to see larger temporary power plants being hired on a longer-term basis within the mining industry.

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How Much Do You Know About Renting Electricity?

You know that you can rent a car, a flat, or even songs and movies. But, have you heard about renting power?

Renting affords numerous advantages, particularly to transient users, or those that use a particular item for a limited period of time. Think about renting flats, cars, movies or costumes. When you don’t see yourself living in a city for a long period of time, will you still invest in buying a home? When you expect to sparingly use a car, will you still spend on acquiring one and shell out for servicing and maintenance throughout its lifetime? For someone who simply likes to watch a new movie and does not fancy collecting films, will it make more sense to rent it than to actually buy a copy of it? Would you like to wear that Dracula costume every year to a Halloween party? I guess not.

There are many things that you can rent, but have you any idea about renting electricity? Yes, electricity can be rented, and it is a viable solution to energize numerous communities around the world that still lack access to reliable electricity. So, how does that work?

Basically, when a power utility company, a manufacturing firm, a mine operator or a government chooses to rent electricity, what they actually get is a complete, temporary power plant, designed, tailored, delivered, installed, operated, managed and serviced by a temporary power provider. All the equipment are owned by the provider, and the customer does not have to nvest in anything related to capital. Similar to renting any other item, the customer only has to pay for the product or service while he is using it – or in this case, for the electricity generated during the contract. This means that the customer can simply pay for the services of the rental power provider from his OPEX or operational expenditure.

Rental power plants are unlike permanent power plants. They are made up of modular power equipment, generators, transformers and other ancillaries, and can be simply connected “plug-and-play”-style. Because of this, they can be easily delivered from and to anywhere in the world, and can be made operational within days. Customers need not wait for years or decades obtaining approvals, financing and waiting for the completion of construction. Remember when you rented a car? The car was ready and was immediately handed over to you, right? And when you rented a flat? Did you have to wait for years for the building to be built before you could move in? No. Upon making the first tranche of payment, the keys to the unit were readily given to you.

When the need for supplemental electricity passes, a rental power plant can be simply uninstalled and demobilized, of course, by the temporary power provider. This means that there will be no permanent infrastructure left behind that will need constant maintenance and servicing. Simply put, the utility provider, the mining company, the manufacturing firm or the government stops spending when the need for supplemental electricity is no longer there.

To summarize, here is an illustration of what is involved in renting electricity:

We said above that renting electricity is a perfect option for energizing communities around the world that still do not enjoy the benefits of reliable electricity. Turning to temporary power solutions is a fast, efficient, safe and cost-effective way to gain access to consistent electricity. As governments, utility providers and allied stakeholders implement long-term energy plans, temporary power plants, working alone or in tandem with other sources of electrical power, can urgently provide the required electricity anywhere and anytime it is needed. 

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Pros and Cons of Different Fuel Options for Power Plants

In our previous article, we discussed lifecycle costs associated with the operation and maintenance of power plants, be they temporary or permanent. We said that though fuel represented the highest lifecycle cost, it was also the easiest to predict and calculate. In this article, we will look into some of the fuel options available for power plants, and identify some of their advantages and disadvantages.

Different fuel options are important in designing systems that respond to individual energy needs, budget concerns and fuel availability. Each fuel type has its benefits and drawbacks, so it is essential to take some time and research on the best fuel option during the system design process. Some fuel options available include natural gas, diesel, HFO and renewable fuels, such as vegetable oils, animal fats, and bio-diesel.

Natural gas is gaining ground as a cost-effective fuel solution, because it burns cleaner, and lengthens maintenance intervals and component lifetimes. There are multi-megawatt temporary power plants composed of natural gas generators that are designed for low-emission operation and fast set-up. Running on natural gas, these generators comply with worldwide emission limits even without after-treatment. Some observed disadvantages of natural gas are its limited availability and high costs of installing safe and reliable fuel delivery infrastructure. These, however, are gradually being solved owing to the increasing availability of gas and the opportunities in bigger and longer-duration projects opening up for gas power plants.

Diesel’s trump card has always been its availability, safety and economy, and ease of installation of power generation systems running on diesel. Diesel power generation systems are known to be reliable and flexible and are equipped with state-of-the-art technologies that allow them to run on a variety of fuels. Some noted disadvantages of using diesel as a fuel are the observed fluctuation of its price and environmental stewardship issues. The good news is that with cutting-edge power technologies made available by global temporary power providers, these observed issues can be mitigated.

Heavy fuel oil or HFO is available worldwide and engines running on this fuel are relatively common, but HFO has been observed to contain contaminants that increase component wear. Recognizing this, temporary power plant providers are making sure that they have intermediate systems that refine the fuel, reducing the contaminants and further enhancing the quality of the fuel. When choosing a power partner to run an HFO power plant, it is vital to make sure that the provider has these technologies available in order to lower the chances of reduced component life and higher maintenance costs.

Dual-fuel engines are another option to be considered. Though these engines are observed to have higher initial costs compared to single-fuel engines, they have the capability to provide the high-level of fuel flexibility that operators specifically require. Global temporary power providers can offer bi-fuel technologies that are specifically engineered to reduce fuel costs. For instance, there is a technologically advanced power system that uses a combination of 70% gas and 30% diesel, which will have a positive impact not only on fuel costs but also on emissions.

Alternative, reliable fuel options like vegetable oils, animal fats, and bio-diesel can also be utilized, but these require fuel treatment equipment. It may be helpful to note that the additional equipment may increase the initial capital costs and maintenance costs.

Different fuels have characteristics that influence their applicability. Depending on the location, budget, energy requirements or available technology, one fuel may be preferred over another. Experts say that it is still best to go with the clean fuel option, as this will result in longer component life and less performance degradation. But, thanks to the cutting-edge auxiliary technologies introduced in today’s power generation technologies, even the less clean fuels become viable options in specific situations.

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Reference:

Steffens, David. “Lifecycle Cost Considerations when Choosing a Power Generation System”. Caterpillar Power Generation Systems. February 2013.

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The Importance of Scheduled Maintenance Planning in Ensuring the Efficiency of Power Plants

In our previous article, we spoke about lifecycle costs to consider when choosing a power generation system, like temporary power plants. We said that the costs include fuel, maintenance, and labor, among others. In line with our previous discussions, in this article, we’ll take a closer look at the importance of scheduled maintenance planning in ensuring the efficiency of a power plant.

Scheduled maintenance planning is a vital part of a preventive strategy that allows engineers and power plant operators to effectively plan for repairs, maintenance costs, and system downtime. A proper maintenance program should identify maximum run hours for each component in the power plant system, and also consider maintenance intervals, required spare parts, manpower, routine analysis and inspection details.

Now, let us throw the spotlight on maintenance intervals.

Maintenance intervals are the time periods between system inspection or overhauls and should be scheduled in parallel with the component run hour lifetime and operating requirements. As some engine and auxiliary parts, like fuel injection nozzles, piston rings, and bearings, are designed to be wear components, they should be regularly checked and replaced. The schedule can vary from power plant to power plant, especially if a condition-based maintenance program is utilized. Bear in mind that under condition-based maintenance program, wear components are only replaced if wear limits are exceeded or if the components exceed other replacement criteria previously set. Thus, when following a condition-based maintenance program, the lifetime of components is adjusted in consideration of operating parameters and data harvested from regular inspections.

As part of a predictive maintenance program, engineers and power plant operators should assess the component wear as observed during regular scheduled inspections. They should also record operating data on a regular basis and trend data points to provide a clear picture of any necessary adjustments in order to maximize power plant efficiency and help foresee any possible failures. If this is successfully done, this can help power plant operators mitigate the risk of unscheduled outages.

One can never overstate the importance of electricity in our world today. In almost everything that we do, we require electricity, so a constant and reliable supply of power is non-negotiable. It is, therefore, paramount for a power services provider to have an effective and well-planned preventive maintenance strategy to preclude the occurrence of unplanned power outages and ensure the efficient and cost-effective operation of a power plant.

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Reference:
Steffens, David. “Lifecycle Cost Considerations when Choosing a Power Generation System”. Caterpillar Power Generation Systems. February 2013.


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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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Déjà vu: A Solution to the Philippines’ Looming Power Supply Crisis

The Philippines has achieved impressive economic growth numbers in recent years and has further reinforced its status as one of the major economies of Asia. Now, the country finds itself amidst a power crisis that may portend a pronounced economic slowdown.

In spite of the slow global economic growth, the Philippines remained a strong economic performer in Southeast Asia. A recent World Bank communiqué substantiates this when it reported that the Philippines’ near-term economic growth was likely to remain strong, and was projected to accelerate to 6.4 percent in 2016, before slightly tempering to 6.2 percent in 2017.

Despite the positive economic outlook, there is a persistent power shortage being experienced in key industrial and commercial areas in the Philippines threatening to fade the lights on this promising growth story. The power supply shortage is most pronounced during peak summer months when hydropower is reduced from the seasonal dry spell, and when a random shutdown of a power plant on the grid can initiate a disastrous widespread power outage. Yes, the Philippines is still grappling with rolling power outages similar to what bedeviled the country in the 1990s.

The Philippines has an enormous energy potential to free itself from the shackles of the power supply conundrum, given its notable geothermal energy capacity, if not for a slew of transmission and distribution limitations, inadequacy in domestic energy production and a challenging geography. Other aggravating factors include the country’s observed dependence on imported fuel, non-subsidy of fuel on the part of the government, high electricity tariffs, and aging existing power infrastructure.

While the Philippines has managed to continually achieve impressive economic growth rates in the face of its power supply challenges, the need for a resolution is growing ever more urgent. The country’s economic expansion, among other factors, has prompted a spike in its requirement for electricity, and now the Philippines’ electric power systems are struggling to keep up. The onus is now on its leadership and on key power industry stakeholders to prevent a power crisis that can negate the economic successes that the country has achieved in recent years.

A turning point

Industry and economic experts opine that the power supply shortage in the Philippines is part of a decades-old chronic insufficiency in the country’s power sector. They point to the country’s mothballing of its sole nuclear plant in 1986 as a vital reason why the Philippines is still struggling to satiate its national electricity demand. Because no new capacity was introduced to the country’s power network, what ensued were sustained day-long power outages that fended off foreign investment, suppressed the growth of various heavy industries and stalled the country’s economy. The incoming government of President Ramos (1992-1998) resolved the power challenge through emergency powers granted by the 1991 Energy Crisis Act to conclude contracts for new power generation. The country was, then, afforded some breathing room.

Now, 18 years on, the Philippines has come full circle and is again confronting a potentially debilitating power crisis.

What is being done?

One of the country’s foremost, albeit stop-gap, response to the power supply shortage is the “Interruptible Load Program”, which entails large establishments, such as shopping malls, office buildings, and factories, to voluntarily switch their power source from the main grid to their proprietary generators when a shortage is impending. It is a program established by the Department of Energy and the Energy Regulatory Commission to help ease the energy supply deficiency in the country until new capacities are introduced to the grid. As of press time, even as details of compensation are yet to be finalized, a number of large firms have already pledged their participation.

There has also been an interest on the part of the government to review, revise and reinforce the Electric Power Industry Reform Act (EPIRA) of 2001, which mandated the privatization of state-owned power enterprises in the hope of encouraging the availability of affordable electricity and fair market competition. The government intends to amend the EPIRA to allow it to intervene in the power sector as need be. For instance, the government proposes to have its own power generation facilities so that it is able to instantly fill in the power shortfalls. Nevertheless, the project still remains to be cost-prohibitive.

The country’s energy department estimates that, with the current economic trajectory, the Philippines’ power demand will balloon to approximately 29,500 MW in 2030. The country’s power generation capacity in the same year, however, is only predicted to be at 26,500 MW – 3,500 MW short of the requirement. Here’s the caveat: In order to bridge the power supply gap, the Philippines reportedly needs USD 46 billion to set up modern power generation facilities in the country. The government is thus taking a proactive stance to woo power investors to invest in the country and help increase its generation capacity.

Not helping this effort, however, is the country’s observed excessive bureaucracy and adherence to official rules and formalities. The energy department itself estimates that it takes approximately 165 signatures and a minimum of three years only to secure the necessary permits for a permanent power plant project. Further delays may ensue in case of an eventual judicial dispute. Other processes like finalizing financial concerns, signing off project designs, sourcing equipment and materials, securing allied service providers, let alone constructing the permanent power plant also take a considerable amount of time. Thus, many foreign power companies have expressed dismay over the situation, saying that the requirements have been a deterrent to entering a market demanding a sizeable initial outlay and a commitment of at least 20 years.

There is no better time

There is no better time for the Philippines to resolve its power challenges than now. The country cannot afford to invalidate its economic achievements of recent years by risking going through a similar power crisis that reined in its economic and industrial growth. If the country wishes to go on living its Cinderella story, the Philippines should do what it can to erase serious concerns about its economic and social sustainability.

While permanent power solutions require a substantial capital outlay, temporary power technologies do not involve capital expenditure. In fact, the government, power utility providers, and other interested industry holders can pay for the rented electricity from their operating incomes. Temporary power solutions may represent a short-term restorative measure, but when employed in crucial times like this, they can be the difference between a calamitous economic collapse and a momentous economic feat.

While the government is revisiting the EPIRA, and while concerned agencies are working to streamline their regulatory processes, the Philippines can readily benefit from the temporary power solutions, which can be swiftly delivered to the Philippines and installed and powered on in as little as days. Contrary to permanent power plants that require long lead times to be completed, rental power plants can immediately supply electricity as soon as the equipment arrives at site owing to its inherent ease of installation and grid connection.

Though recent governments have made great strides in the resolution of the power crisis, there are more to be done to ensure that the Philippines’ power-generation facilities are adequate to cope with the country’s increasing demand for electricity. Until the government and the relevant industry stakeholders encounter an appropriate solution to the persistent power supply challenges, the Filipino will continue to struggle with what has notoriously become a staple of life in the Philippines.

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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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This is a solution to Latin America’s Hydropower Crisis

Hydropower-dependent countries around the world are suffering from the effects of the El Niño weather phenomenon. In Latin America for instance, the National Oceanic and Atmospheric Administration has warned that the El Niño, which causes changes in the temperatures of oceans in the Equatorial Pacific Ocean, can bring severe storms and flooding in the southernmost countries of the region, as well as droughts and low-rain seasons in the northern part. Reports say that the current El Niño, touted to be the worst since 1998, has already caused extreme drought in several countries in the region, which in turn has led to a notable decline in hydropower generation.

Just recently, Venezuela, which heavily relies on hydropower, has announced that it had adjusted its time by 30 minutes, in an effort to reduce 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.

Owing to the power supply challenge in the country, there is an observable tension between the government and the people. The people of Venezuela are clamoring for an urgent definitive resolution of the power challenge. Thus, in order to avoid the deterioration of public security, social stability and economic viability of the country, the government needs to urgently reverse the prevailing situation.

Though the spotlight is currently on Venezuela, such an unsettling scenario can also happen to other hydropower-dependent countries in Latin America, in the face of the worse- and longer- than-expected El Niño. In order to prevent a total collapse of the countries’ power infrastructure, energy experts suggest upgrading existing dams, installing back-up permanent power plants and refurbishing transmission and distribution grids. The caveat is that such initiatives immediately require a substantial sum of financial resources, a dedicated competent supervision and an enormous amount of political will. Moreover, such initiatives can still take years to take shape, and with the gravity of the current power crisis, the affected countries cannot afford to wait.

In the interest of urgency, what the affected countries need are immediate power solutions than can be rapidly delivered and installed, and can supply consistent and reliable power within days and not years.

How can the power crisis be resolved?

Multi-megawatt temporary power plants can immediately provide a resolution to the power crisis in Latin America.    

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 affected countries will be supplied with consistent and reliable electricity.

By choosing temporary power plants, there will be no need for the affected countries to spend scarce resources on capital expenditure, which is usually the case when procuring power equipment or building permanent power facilities. The affected countries can conveniently pay for the rented electricity from their operating revenues. As the countries’ requirement for electricity increases, they 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.

Temporary power providers offer a full range of services, including operating and maintaining the power plants. The affected countries can rest assured that rental power providers have well-trained, expert engineers that will ensure that the power plants run at the optimal level all the times.

As the affected countries ease out of the hydropower generation crisis, and as soon as the requirement for supplemental power passes, they can simply choose to end the contract, and the entire temporary power plant will be demobilized. There will be no idle power equipment nor permanent power plants that will require constant maintenance.

There is a solution

Hydropower-dependent countries bearing the brunt of the El Niño will clearly benefit from the immediacy, efficiency, scalability and reliability of temporary power solutions. If expert forecasts are any indication, the long-term resolution of the region’s power crisis may necessitate careful planning, flawless execution, substantial funding and a reasonable time frame. Thus, while the governments and allied stakeholders are working towards a viable solution, rental power plants can support existing energy sources in providing a reliable and continuous electricity when and where it is needed.  

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

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The Benefits of Turning to Temporary Power from a Tenant’s Perspective

Owning a home has always been my lifelong goal, but unfortunately, personal and economic circumstances have not yet made that possible. So at present, I am renting a midsize house near my place of work. Through this experience, however, I realized that renting is a real viable alternative to having my own place – especially in a recuperating economy.

Working for a temporary power provider, I reckon that the benefits afforded to me by renting a home, compared to buying my own place, are parallel to the merits of turning to temporary power solutions, instead of building new or maintaining old permanent power plants. So for those who are having a hard time wrapping their heads around the concept of hiring electricity, here are 5 advantages of renting power explained through the perspective of a tenant.

1. Availability

When one chooses to rent, he will not have to wait for when the house is constructed or when the property is handed over, after all the legalities are fulfilled and relevant papers are signed. This can take years! Where will one stay, then? Under a tree? When one rents, he just has to pay the first month’s rent and move in. Simple. The same thing in turning to temporary power solutions. A city, a region or a country does not have to wait till the permanent power facilities are built to have electricity. The utilities can simply hire the services of a temporary power provider, the equipment and the engineering team will arrive at the site, and the power plant can be installed and powered on in a matter of days. Not years, but days.

2. Flexibility
One does not know what the future holds. One can get married and have children, and thus require a bigger home. On the flip side, one can lose his job or, touch wood, one of his loved ones, and decide to downgrade. Power requirements show a similar pattern. There are times, like during summer, when electricity requirement spikes, and there are seasons when it relaxes. With temporary power solutions, power utilities can choose to add or subtract power modules to increase or decrease the output of the power plants. There will be no need to build an additional permanent power facility when the power demand goes up, and there will be no need to run existing permanent power plants at part-load when electricity requirements go down.

3. No need to think of maintenance
Another definitive advantage of renting a home is that tenants do not have to think about maintenance and repair of household equipment and amenities. When you rent a property, the landlord should be responsible for all maintenance and repair jobs. It is the same case in hiring the services of temporary power providers. Part of their service is ensuring that generators run smoothly and efficiently at all times. So, clients can leave the maintenance services to the expert and highly trained engineers at site, and concentrate on activities that matters most to them.

4. Access to modern amenities/technology
Imagine building a state-of-the-art swimming pool and fully equipped gym in your own home. Nice to have, isn’t it? But they represent a colossal expense, and can be prohibitive to most of us. Temporary power solution providers deploy and install cutting-edge power generation technologies that are highly reliable and tremendously fuel efficient. Because such equipment can be rented, clients do not have to spend a fortune on capital expenditure, and can simply pay for the hired equipment and electricity from their operating revenues.

5. Freedom from worries of decreasing values
Property values go up or down. While this may be a huge factor for homeowners, it does not affect tenants. Hired temporary power plants can simply be demobilized when the requirement for supplemental electricity has sailed. This means that there will be no depreciating permanent equipment or facility left behind, which may sit idle and/or may need constant service and maintenance through the years. So those who turn to temporary power solutions do not have to worry about escalating expenses and dwindling values of permanent power facilities.

Bottom Line
Renting or buying is one’s own choice. Both have their advantages and disadvantages. Personally, the trump card of renting is the availability, affordability and flexibility it provides. It may be a different case for you. But, this one is true: before deciding to rent or to buy, look at all the available choices, review the details and make the decision that fits your needs and your pocket.

To know more about how temporary power solutions can work for you, visit www.altaaqaglobal.com

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

Island Resorts Report Losses Due to Power Outage

Mario, a resort owner, could do nothing but shake his head in disappointment. “I was hoping this week will be profitable for us,” he says, adding that every year, he looks forward to the extended weekend, when vacationers can hardly book a place in his resort. “This year was different. I don’t know. Maybe because the season is extremely warm, and we do not have electricity.”

Like Mario, Jose was disgruntled that power had not been restored in the island in time for the four-day weekend. “This is the last long weekend before the rains set in,” says Jose, “I was hoping to make good money this week as a buffer for the rainy days, but the island utility did not rise to the occasion.”

Mario and Jose, like all the other resort, hotel and restaurant owners in the island, are reeling from the effects of an unprecedented drop in the season’s number of tourists, which was reportedly halved. “They have shun our island, because it will not be comfortable to stay in any resort or hotel here in this condition,” says Mario. “Our resort may have small generator sets, but they are expensive to run, and they are not enough to power all our rooms, especially when air conditioners are turned on.”

Jose brings to light another challenge: “Because there is no electricity, our water stations do not function, so we do not have water in our resort. We have to supply our guests with gallons of bottled water to be used for bathing. This is adding not only to our expenses but also to their inconvenience.”

Mario and Jose’s island lost electricity when power was cut off due to a power plant accident. It has been two weeks since the incident, but power is yet to be restored. “We still hope to make the best out of what’s left of summer,” says Mario, “but in order for our businesses to be profitable again, our island has to have constant and reliable electricity again.”

Keeping islands supplied with reliable electricity comes with several challenges for island utility providers. The wide distance between the mainland and the other islands in the vicinity poses significant difficulties in moving reliable electricity, in case of unforeseen power outages. Island-based businesses can resort to running their own local power generation equipment, like small diesel gensets, or solar or wind energy systems, but their production may not be enough to fully run an entire facility, especially during peak seasons. Then, there are allied island utilities, like water, that also depend on electricity to be delivered.

As a proactive stance against unforeseen electricity challenges, island power utility providers need ready energy sources, which are available on-demand 24 hours a day, 7 days a week, to meet their customers’ energy needs. Island power utilities will find benefit in partnering with multi-megawatt temporary power providers, which can supply reliable electricity anytime and anywhere it is needed.
Temporary power plants can be deployed at a moment’s notice and can be easily installed to start supplying electricity in a few days. The generators that make up the plants are containerized, so they can be easily delivered as complete power packages anywhere in the world, even in remote islands. They are modular, which means they can fit a wide variety of site lay-outs, and do not need to be laid out on a huge space – particularly advantageous for small islands. They also have low-noise and low-emission operations, so situating them within the vicinity of hotels, resorts and tourist spots will not be a problem.

The latest-technology temporary power plants can be easily connected to the existing local power infrastructure in islands, and can generate power either in synchronization with the local power generation plants or as a standalone system. They are flexible in power and voltage, and their electricity output can be scaled up or down to meet islands’ varying electricity demand.
Temporary power solutions will not require a sizable capital expenditure and, owing to their operational reliability and fuel efficiency, will considerably reduce the operating and maintenance expenses of island utility providers.

“We can’t dwell on the lost opportunity of this past long weekend,” says Mario. “But, I hope that our island power utility provider has learned a lesson or two from this incident.”

“This extended blackout has not only affected our businesses,” says Jose. “I hope that this does not stunt our tourism industry.”

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