STABLE POWER AT THE SERVICE OF NICARAGUA
Project Partners:
SERVING NICARAGUA WITH A STABLE POWER SUPPLY
CENSA is now one of Nicaragua’s most trusted power sources and distributors. We find out how the company continues to deliver a secure supply of electricity
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he year 2009 established a “before and after” in CENSA’s operations (Nicaraguan Electricity Corporation), as it became owned by domestic capital in its entirety. CENSA currently supplies 15.47% of Nicaragua’s thermal energy, its main client being DisNorteDisSur (North Distribution - South Distribution, public utility for electric power distribution). Domestic laws demand power generated within the country must be first offered to government-run companies in charge of resources management, such as INE (Nicaragua Institute for Energy) and the Energy and Mining Ministry, among others. CENSA’s power plant is located in Puerto Sandino, Leon, half an hour’s drive from Managua, where CENSA also has an office branch. The Sandino plant is host to three storage tanks. The largest tank can store more than half a million gallons of fuel, and the other two can keep approximately 250,000 gallons, totaling a 1.2mn gallon capacity. The plant also contains three sedimentation tanks (45,000 gallons
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each), and two tanks for daily supply, each able to hold 30,000 gallons. Power at the CENSA plant generates from fuel oil, USGC HSFO (United States Gulf Coast High Sulfure Fuel Oil) specifically. Energy prices are indexed according to changes in the price of oil. “Energy quality and efficiency is essential, as well as our constant investments maintaining an up-to-date facility,” comments Juan Harmsen Seoane, CEO for CENSA. Peru-born Harmsen had the opportunity to attend high school at the Georgetown Preparatory School, in Maryland. He earned a BS degree in Management and Finance from Tulane University (New Orleans), where he also earned a Master’s in Finance. In Nicaragua’s Universidad Americana he also took a postgraduate course on IFRS Standards and is currently attending the Upper Management Program at INCAE Business School (also in Nicaragua). Harmsen joined CENSA as CFO back in 2012, and in May 2016 he was appointed as CEO. He also has previous experience in banking, manufacturing and wind power.
“I am proud to encourage and practice an internal development culture” – Juan Harmsen, CEO for CENSA
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Never looking back once becoming Nicaraguan property When CENSA became a domestically-owned company it only delivered a 4MW output, even with the cutting-edge machinery that had been deployed, which lacked maintenance and showed signs of damage. But the new ownership decided that regular maintenance procedure for key assets would become subject to strong investments. These efforts resulted in the plant being able to supply power according to its capabilities. Yearly budgets for maintenance and overhaul procedures is between $4mn and $5mn. This also allows for system upgrades in the plant, powered by CAT 3616 and Mak CM32L generators. Total investments are currently more than $50mn. Safety systems have also benefitted from current investments – these include modern fire-extinguishing systems, as well as remote control and monitoring for temperature, which have resulted in more than 620 accident-free days for CENSA. “We have accomplished important efforts in maintaining the plant running with up to date systems,� Harmsen states. Other key investments by CENSA took place recently through the acquisition of
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IBM’s Maximo Asset Managemet EAM. This software is also used for inventory control, payroll, and other fields, which are fully customisable.
government entities to consider CENSA as a reliable energy source. “There will be more renewable energy in Nicaragua, but right now every system demands a guaranteed power delivery with no blackouts or other failures in its distribution,” adds Harmsen.
24/7 availability and reliability CENSA’s high availability and reliability delivered through its automatic control system - in charge of the National Center for Power Dispatch Suppliers guaranteeing - positions CENSA as one of three continuity private property power CENSA must rely on quality plants able to use an fuel to deliver large AGC (Automatic amounts of power Generation consistently, Control). This since even slight Employees at CENSA allows the National variations in Center for Power contents and Dispatch to control the total factors such as power delivered by CENSA into the viscosity can affect the National Distribution Network. equipment and machinery. For these To offer some context, about 50% reasons, Puma Energy is the only of total energy produced in Nicaragua authorised company to sell fuel oil is generated from thermal sources, in Nicaragua, from which CENSA with the rest being delivered from requires 79,000 gallons a day. solar and wind power. A problem NIMAC, local distributor for with renewable energy in the country Caterpillar, provides excellent has been instability, and not being service for equipment maintenance able to deliver the same amount of and repairs with timely deliveries, energy day in and day out, taking flexible credit plans and convenient
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major maintenance contracts. All these perks are highly valued by CENSA, since maintenance planning and overhauls are an important part of reducing costs. Fluid Mechanics is also an important part of CENSA’s supply chain, helping CENSA deliver energy 24/7. “Our suppliers are a key factor for our company to work with the required efficiency,” Harmsen confirms. CENSA Servicios: A new business unit “Throughout the years, we have acquired special equipment and developed skilled, experienced
professionals; the next step forward was obviously to create a business unit of high-quality electro-mechanical service suppliers,” the CEO continues. The technical staff at CENSA are a unique force within the country, working with a transformer oil regeneration machine which allows maintenance service to take place without having to shut down the equipment. The CENSA service unit is already working for several companies in Nicaragua and there’s already a waiting line for other businesses requiring its assistance.
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Skilled personnel with stable work Stability is a very important factor for the 110 workers comprising the payroll at CENSA, covering shifts to provide a 24/7 service of electricians, welders and other qualified workers. Training is one of the most important aspects for CENSA, as the company provides licensed and certified training sessions in skills such as dangerous energy management, fire extinguishing, first aid assistance, oil by-products management, electrical risk, crane operation, occupational health and safety, and risk valuation, among others. Most of the staff averages five to
10 years working for the company, which promotes internally when new positions become open. “The experience degree collected by our working force brings us added confidence,� Harmsen comments. Care for the surrounding environment and community Strict waste management concepts are enforced by CENSA, thus minimising any possible impact on the environment. A wastewater treatment system is part of CENSA’s assets, and fuel waste is handled by
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a specialised company in order to be disposed of properly. Remaining scrap metal, cardboard and plastic is sold to recycling companies. The company’s ties with local universities and institutes holds its doors wide open for graduates to experience internships at CENSA. In other matters, the company is very active among the Puerto Sandino community, since this small village does not offer many employment opportunities. CENSA
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has a number of local hires and also runs collaboration programmes with the local fire department and police. Consistent efficiency serving Nicaragua During the last four years, CENSA has consistently increased its power output by an average of 8.22% each year, surpassing DisNorte-DisSur’s projections by more than 30%. In the short-term, the company’s purpose is to extend its business
“In corporate finance, a solid margin creation and protection model is essential” – Juan Harmsen, CEO for CENSA
relationship with the government’s distribution entity in order to sustain investments serving Nicaragua with a steady, efficient power supply. Other plans include thrusting the new CENSA Servicios business unit and all it has to offer. “Our main challenge is sustaining the efficiency and stability of our power generation resources, contributing to Nicaragua’s development with a high reliability and availability levels,” Harmsen concludes.
Planta generadora: Carretera El Velero Km 68-69, Puerto Sandino, Leรณn, Nicaragua Tel. +505 2250 2507 www.censa.com.ni