The need for energy is growing, which creates new obstacles for the power industry. From supporting rapid urbanization in Latin America and Asia, to using temporary power during events such as earthquakes and hurricanes, utility companies are facing more and more challenges.
No matter the conditions, providing customers with reliable electricity is essential. Producers are turning to customized power solutions to ensure they meet this obligation. The advantage of these solutions is electricity generation that also drives productivity, profitability, and sustainability.
Power Solutions for Utility Companies
Power-as-a-Service (PaaS) is an innovative solution. Similar to other “as-a-service” business models (for example, software-as-a-service or infrastructure-as-a-service), a PaaS provider takes responsibility for the construction, operation, and maintenance of their power solution. This service partnership enables a utility company to achieve its objectives without sinking money into capital expenditures.
Customized PaaS solutions are a straightforward and cost-effective way for utilities to meet their temporary power and permanent energy needs. Besides providing turnkey energy projects (including alternative fuel power generation, portable power technology, or energy storage) without the requirement for CapEx, PaaS suppliers also contribute their technical expertise. This contribution frees the utility company from managing the time-consuming and intricate project details.
Temporary and Emergency power
During an extreme weather event, a producer may enlist a temporary power supplier. PaaS suppliers with mobile fleets are well-positioned to deliver generators or batteries to key locations when emergencies threaten the power supply.
In a similar fashion, on-demand power supplements electricity generation during a planned outage; it can also help bring a new plant online. With a PaaS supplier to deliver reliable, temporary power, utilities can support their customers even in the toughest situations.
Permanent power
For permanent power builds that exceed in-house capabilities, a partnership with a knowledgeable PaaS supplier is an excellent choice. From energizing isolated sites to installing advanced generating equipment, utility companies can expand their offerings by taking advantage of the provider’s expertise.
In Latin America, PaaS providers are supporting large-scale permanent power initiatives, including upgrading plants from single- to combined-cycle generation.
The Business Benefits of Customized Power Solutions
PaaS offers utilities a simple solution for difficult challenges, and, at the same time, enables the industry to improve productivity, profitability, and sustainability.
Productivity
More and more, utilities are employing customized solutions to increase productivity and uptime. For example, using a temporary power system to generate electricity allows for maintenance that would typically require a system outage.
Ensuring productivity when relying on a single fuel source is risky. Engaging a PaaS provider with expertise in multiple fuel technologies makes upgrading to alternative fuels, simple. Not to mention, PaaS also saves money by eliminating the need for investment capital.
Reducing downtime due to failure is top-of-mind in Latin America, where aging assets make up over 50% of the region’s electrical capacity. A customized power solution, such as the deployment of sensors along an electrical grid, facilitates a quick response to failures on the line.
Profitability
A PaaS solution allows utility companies to free up resources by eliminating CapEx. Removing capital costs lets these companies invest in profitable initiatives such as grid upgrades and infrastructure projects.
Technological advancements are making renewables a viable energy resource. With customized PaaS initiatives, independent power producers can profit by selling excess renewable electricity back to the grid.
Utilities who invest in modern solutions are well-positioned for success, but for power producers that ignore technological advancements, profitability may fall out of reach in the future.
Sustainability
An effective power solution supports three types of sustainability—environmental, social, and economic. Renewables (in particular, solar and wind) are undeniably the driving force behind environmental sustainability. Advancements in solar panels and turbine technology have made solar and wind attractive energy choices for remote locations.
Social sustainability refers to balancing the power industry’s support for society with society’s support for the industry. For instance, socially sustainable utility companies are known for their competitive wages and healthy workplaces, in addition to fulfilling the public’s energy needs.
When it comes to economic sustainability, utilities are doing their part by diversifying fuel sources to combat the uncertainty of fluctuating fuel costs. Providers are taking advantage of customized power solutions to help them do this—case in point, replacing a legacy generation system with a cogeneration unit to ensure future economic strength.
Take on Today’s Challenges
Supplying energy to remote settings and delivering during hazardous situations are fundamental objectives of the power industry. Utility companies understand the importance of reliable service, no matter the circumstance. Increasingly, they’re turning to customized power solutions to help support their goals.
By choosing PaaS, producers avoid CapEx costs while taking advantage of innovative solutions to stay productive, profitable, and sustainable as the industry evolves.
Contact SoEnergy today about our utility power generation solutions.