With power outages becoming more frequent, the need for backup power in industrial and commercial units is increasing. Regardless of the kind of facility, today it is crucial to have an effective power backup system in place that can be used during major power outages. Industrial plants may require additional power to meet the high load demands during peak periods. They may also need supplementary power during maintenance or any emergency. Rental power is designed to meet the power requirements at short notice and for short durations.
Rental power refers to the facility of temporarily renting power plants or generators for supplying energy to industrial units. It delivers functioning power equipment along with various scalable components, which are installed at power stations. It provides a range of highly reliable, secure and easy-to-install generators on rent in various capacities. It can also be utilised to give continuous power to locations that are not connected to the grid. Other functions of rental power are meeting peak load demand when the main source of power is insufficient, peak-lopping, grid support and power grid export. Owing to this, it finds extensive applications across the construction, mining, and oil and gas industries.
Key drivers for rental power
The surge in demand for uninterrupted power supply and rapid industrialisation across the country are the key factors driving the growth of the rental power market. In addition, the increase in instances of unreliable power supply generated through small-scale power grids and limited access to the main transmission network have propelled the demand for rental generators across utilities and manufacturing industries. Moreover, the implementation of government initiatives to expand the country’s infrastructure sector, and increase in the construction of hotels and shopping malls are driving the demand for rental power solutions.
Rental power solutions are gaining traction among industries that need power at short notice. Be it a grid or a captive power plant (CPP), rental power solutions can be used for continued operations in case of failure of the main/ existing power source. Rental power can be used by industries to meet the peak load demands when power from the grid or CPPs is insufficient.
The mining and oil and gas industries are also expanding significantly and in the coming years, new mining projects will drive the demand for rental power solutions.
Technology options
Rental power solutions range from stand-alone temporary power packages to multi-megawatt units that operate on fuels such as natural gas, coal and diesel. The diesel segment caters to a significant share of the rental power market. Diesel-based units are witnessing a steady deployment rate owing to their ability to provide weather-independent, scalable and flexible operations. Round-the-clock power availability and low upfront costs are some of the key advantages of diesel-based rental power equipment. Moreover, diesel enhances engine performance and operational efficiency.
Traditionally, diesel generator (DG) sets are rented to deal with frequent, unplanned and scheduled power outages, as well as to satisfy additional power demand. The rise of rental DG sets has been attributed to their ease of availability, shorter installation time and relatively lower capex. For operational continuity, residential, commercial and industrial organisations rely on rental power solutions to provide standby power.
DG sets are one of the best options to supply power to places where the power grid is not available. DG sets are portable and reliable. They are popular for both industrial users as well as smaller homes and offices. DGs can restore the power supply within a few seconds. DG sets serve the purpose of both continual and non-continual usage for variable loads/ power demands, particularly for industries running motors or other equipment that demand varying power during operation.
Challenges and the way forward
The enforcement of stringent regulations pertaining to emission reduction in fossil fuel-powered equipment is expected to hamper the growth of the rental power market, especially DG sets. Further, the shift in trend towards renewable power generation is a major challenge for the rental power market. According to the International Monetary Fund, owing to the outbreak of Covid-19, several sectors have been forced to shut down their operations. This has halted manufacturing activities and reduced the demand and production of rental power equipment. Meanwhile, the deployment of digital technology solutions for operation enhancement is expected to provide growth opportunities for the expansion of the rental power market. In conclusion, with power outages becoming frequent , the importance of having a power backup system cannot be undermined.
