Rental energy industry braces for growth-By Robert Bagatsing

June 4, 2015 8:39 am0 commentsViews: 128

L(29_2015_Rental-energy-industry)1The temporary power industry is ever evolving, and as the world enjoys a nascent yet already notable post-crisis growth, rental power stations are proving to be more essential than ever.

This observation was supported by a recently published power rental market study conducted by an industry research  rm when it re ected that the global power rental industry was expected to grow to USD 17 billion in 2017, with a compound annual growth rate of 17%. Approximately half of the projected revenue, the report added, would be derived from peak load installations, with prime load and standby service comprising the other half.

The increase in demand for temporary power plants over the past years is largely owing to the fact that they  nd appropriate application in a wide variety of industries and locations. They can be used to support ageing power infrastructure, provide supplemental power in times of loadshedding, peak lopping and overwhelming demand, boost power supply when plants are shut down for maintenance or unplanned reasons and o er emergency electrical power in times of natural disasters, among myriad other instances.  Additionally, they can be installed in virtually any place on Earth, as they can withstand extreme temperatures and harsh weather conditions, and they can be delivered from and to any place at any given time. Not to mention that they represent a cost-e ective choice over building permanent power facilities, especially when the need is urgent and funds are limited.

L(29_2015_Rental-energy-industry)2On account of the above, interim power stations have been highly vital in these times of rapid urbanisation and notable global economic recovery. Several areas of the Americas, Africa and Asia seeking to capitalise on the buoyant global economic outlook tap the services of temporary power providers as they feverishly boost their infrastructure, creating large demands for interim power supply. It has been noted that economic development out paces completion of permanent power infrastructure and as such rental power plants become attractive to such markets as they can be deployed and powered on in a matter of days. For instance, India has launched an aggressive drive to remedy the country’s observed shortcomings in basic infrastructure, such as schools, hospitals, and water and electricity facilities and to forge ahead with investments in high-speed rail and sustainable residential and commercial complexes. Riding on the country’s resolution to enhance its economy and social services,  construction activities in India are foreseen to take a blistering pace, and more energy-intensive industries are predicted to come into fruition in the coming years. As these developments are taking shape, temporary power equipment will be able to support the country’s electricity generation capabilities by  lling in the supply gap whenever and wherever it may arise.

The temporary energy industry is predicted to enjoy continuous growth in the coming years, as its primary drivers for expansion continue to persist. As economies aim to sustain the development that they currently enjoy, they are projected to continue investing on infrastructure, which will in turn necessitate supplemental sources of energy. In addition, even as new power generation facilities are constructed, like renewable energy sources  and permanent power plants, temporary power stations still remain relevant, because they address the challenges of intermittency, reliability and sustainability which are yet to be fully eradicated among emerging energy technologies.

The author is Marketing Manager, Altaaqa Global CAT Rental Power

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