Eskom and municipal power cuts will increasingly see companies rely on generators as a primary source of electricity rather than the power grid, despite the authorities flip-flopping on "pre-emptive load-shedding".
This is according to Frost & Sullivan energy industry analyst Jeannot Boussougouth.
Boussougouth says SA will have a power shortfall until at least 2012 and until then electricity supply may be erratic and subject to unexpected interruption.
Eskom last week ended what it calls pre-emptive load-shedding, saying consumers are curbing their consumption. Johannesburg's City Power utility has also ended its scheduled cuts. Spokesman Louis Pieterse says power cuts should now only occur to stabilise the grid or in emergencies.
Media reports suggest Eskom may have ended the rolling power cuts to end a spate of explosions at distribution substations that engineers say cannot cope with the continuous switch-on and switch-off. A recent explosion in Kempton Park left the city's CBD in the dark for a week.
A similar explosion can happen elsewhere and analysts further warn that should the national grid crash, it would take two weeks to bring it online. During that time, business will be left to their own devices.
Boussougouth says ICT companies need to carefully consider whether they want to rent or buy their generator sets (genset). "I think that, at the moment, buying is the best option because of the current demand. If you buy a genset, you can use it both as a backup and for continuous application. Gensets last six to seven years, making them a long-term investment" while mitigating risk and assuring business continuity into the next decade.
"There are some companies that prefer renting though, because if you rent it's for a specific period during which you need your operation to continue," adds Boussougouth. "But, given the expected duration of the current crisis, it might make more sense to buy a genset and store it for whenever you need it."
Besides the cost of the genset itself, companies must take into account the price of fuel. "This is potentially more telling when you rent, because many power rental companies include fuel supply agreements in their contracts. This means that customers rely on the genset supplier to source their fuel," which can inflate costs, the Frost & Sullivan analyst adds.
"When deciding on the size of the genset to acquire, ICT companies must carefully consider their electricity consumption needs. To run a full operation, a big company may require a genset of 500-1 000MW capacity. This is very expensive though, as this size of genset can cost millions of rand," Boussougouth says.
"Companies must remember that we do have electricity in SA, so we only have to compensate for the shortfall. I think that what may be important is to only run critical equipment during power outages. Costs can be decreased that way.
"In selecting genset suppliers, ICT companies should also put an emphasis on after-sales support, as maintaining the equipment is of high importance. Look for suppliers who offer on-site visits and other services.
"It's also crucial to make sure you have a suitable place to store a genset," the analyst further adds. "The heat, gas emissions and noise pollution generated by gensets are not insignificant. So ensure you have a spacious and secure place for it.
"At the same time, a professional electrical engineer should be doing the connection, even when buying the smallest generators. These are potentially very dangerous pieces of equipment if they are not properly connected and maintained. To ensure they stay in working condition, gensets should also run at least once a week, whether the power goes out or not."
Related stories:
Business unusual as usual
Server consolidation can save power
Energy crisis is not all bad
Load-shedding has far-reaching implications for ICT
Share
