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Temporary power plants crucial for energy sector

DIRE STRAITS
Utility power companies should consider using temporary power plants when no other possible alternative source of power generation

DIRE STRAITS Utility power companies should consider using temporary power plants when no other possible alternative source of power generation

2nd May 2014

By: Jonathan Rodin

  

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During emergency situations, where there is an unexpected loss of electricity, utility companies or energy authorities must have a backup plan to restore electricity as soon as possible. The best solution is to proactively plan the worst-case scenarios, says electrical power supplier Altaaqa Global GM Peter den Boogert.

These situations can manifest either because of natural causes, such as earthquakes, tsunamis and heavy rainfall, or as a result of the human element, such as cable theft.

The best proactive plan to alleviate emergency situations is to sign an agreement – outlining the conditions of power loss, the fleet size of standby power and response time whenever an emergency occurs – with a rental company, says Den Boogert.

“Where a natural disaster has affected millions of people, government authorities and the utility company can cushion the impact of electricity outages by signing a contract with a temporary power company to react swiftly and deliver temporary power plants,” he adds.

The super typhoon that hit the Philippines in 2008, the 2011 tsunami in Japan and the 2010 Haiti earthquake, as well as hurricane Katrina that hit the US Gulf of Mexico in 2005, are some examples of a natural disaster causing emergency situations that require immediate response to restore power.

A utility provider must con- sider several factors when planned power plant shutdowns, owing to major refurbishment or damage to the plant, are scheduled.

These factors include the long-term effect of the shutdown on power supply and how it could hamper electricity supply to its customers and cause major power interruptions to their businesses.

Utility power companies should consider using temporary power plants (coupled diesel or gas generators coupled, electric transformers with built-in power substation, fuel tanks and other power accessories) when no other possible alternative source of power generation, such as diesel-powered generators, is available to supplement the electricity shortfall during repairs and maintenance.

These plants can, for example, use a 100 MW rental power plant for six months to avoid power interruptions and continuously supply electricity to critical areas such as airports, data centres or hospitals, highlights Den Boogert.

Load-shedding in South Africa has had a detrimental effect worldwide. Eskom reported in 2008 that the electricity shortfall of South Africa reached up to 2 500 MW, resulting in a global market reaction, as metal producer mining majors’ stocks dropped – 9.2% for Anglo American, 6.3% for Kumba Iron Ore, 6.2% for Impala Platinum and 4.9% for Harmony Gold.

The nonproduction of mining, owing to electricity shortfalls in South Africa, has a significant negative impact on construction projects worldwide, as there are several of these projects glo- bally that rely on metal produced in South Africa.

“Therefore, if financial analysts ask questions about the cost of renting a power plant versus the economic impact of a power shortage, it can categorically be said that the cost of power plant rentals is marginal, compared with the negative economic effect caused by the electricity shortage,” Den Boogert notes.

He states that, in any country, electricity and social living conditions are interrelated.

Electricity is no longer a basic necessity for industrial and commercial sectors, but a growing social requirement for individual consumers.

For the past five years, the loss of power in several countries, such as Libya, Yemen, Pakistan, India, Myanmar, Senegal and Nigeria, has resulted in street protests – indicating that social unrest is present in many emerging markets.

Den Boogert boasts that, despite sociopolitical challenges, the presence of pirates at sea during delivery of plant components, short working hours because of Ramadan, and summer temperatures reaching 40 ºC during installations, Altaaqa Global managed to install a 54 MW power plant in Aden, Yemen, which was not only the fastest in the history of Yemen’s energy industry, but also a world record.

“This provides evidence that similar projects can be accomplished in South Africa and the rest of Africa, as these projects need a temporary power solution while permanent plants are being built,” he concludes.

Edited by Megan van Wyngaardt
Creamer Media Contributing Editor Online

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