Power rentals underpin African energy market

Africa’s patchwork and erratic power coverage has meant that it has long been fertile ground for genset suppliers who have thrived in the supply of temporary rental packages, both short- and long-term.

In some cases, these rental solutions have supported entire utilities and national grids, with major power stations deployed –often at short notice – by the likes of Aggreko, GE Energy and Caterpillar. Sometimes, these installations are of huge strategic significance. This year, for example, Aggreko will support the conversion of the 108MW Bois-Rouge cogeneration power plant in Reunion Island from coal to biomass without halting production, on behalf of operator EDF La Réunion.

It will supply 24 generators to be installed on four different sites around the area in Le Gol, Saint Leu, Saline and Saint Marie, in what is a flagship environmental undertaking. The conversion will cut greenhouse gas emissions by approximately 640,000 tonnes of CO2 equivalent per year. Delivery of the generators began in January, with all operations planned to be fully converted to biomass by the end of this year.

“This contract is a testament to our expert team’s ability to meet the needs of a quick installation deadline and demonstrates the capabilities of our advanced power solutions,” said Serge Mevo, head of utilities Africa at Aggreko.

“This project excites us, and is an important one to our team, as here we are able to support our client in navigating the energy transition, whilst keeping the lights on.”

Traditional wins out

While there are plenty of grand plans afoot to displace thermal power with renewables and other innovative energy solutions, it seems unlikely that the market for traditional rental solutions will dry up anytime soon.

Indeed, as the Reunion example shows, there is a good case for traditional gensets underpinning efforts to move away to cleaner, alternative energy sources.

In the industrial sector as well, the case for a stable energy supply underpinned by traditional diesel genets remains as strong as ever. Himoinsa Southern Africa recently supplied 8MW of rental power equipment for a groundbreaking liquefied natural gas (LNG) and helium plant in South Africa’s Free State, on behalf of Tetra4, a whollyowned subsidiary of Renergen.

The power plant at the Virginia gas project comprises eight fully synchronised gensets, transformers, fuel tanks and a control room. The Himoinsa team were able to install and commission the fully functioning power plant within three weeks of the site being ready, despite multiple challenges.

During the construction process, no electrical connection was available, necessitating Renergen to proceed with a self-build electrical connection to the Eskom grid infrastructure and, in the interim, ensure they had a temporary, prime power solution to ensure timely commissioning of the first phase of the project.

Its power solution will play a key role in the evolution of the region’s industry too; it marks the first helium facility in sub-Saharan Africa, which, among other applications, can be used to make semiconductors and fibre optic cabling.

Even in the in the small-scale residential market, there remains healthy demand for rental power solutions. Nigeria currently leads Africa as the highest importer of generators and is among the biggest importers worldwide and power rentals form an integral part in the supply of this market.

While there are moves to phase out genset adoption, it could be a long time before households are ready to part company with trusted solutions.

In a January report on Nigeria, the International Renewable Energy Agency stated that micro-finance initiatives will help in the substitution of diesel gensets by solar home kits and mini-grids, which, it claims, have a higher upfront cost but significantly lower operation cost.

Today, it estimates that around 84% of urban households use backup power supply systems – either diesel or gasoline gensets and/or solar-based systems – while about 86% of companies in Nigeria own or share a generator.

From the biggest of utilities to the smallest of households, rental power solutions are here to stay for the foreseeable future, at least. ■