Middle East Rental Power Demand to Increase in 2011

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Rental Solutions & Services, a global provider of rental power, temporary cooling and mobile water desalination predicts an increased in rental power demand. Robert Bagatsing, Group Marketing Manager and Peter Den Boogert, GM Power Projects talks about the future of rental power industry.

Market Trends from 2011 to 2015.

Robert Bagatsing, Group Marketing Manager of RSS talks about the market trends in the rental power industry. Bagatsing says “There will be an increase in demand for power projects around the world, particularly in developing countries. An estimate of 30% increase in rental power demand is forecasted up to 2015.” As the global economy is still devastated by the financial crisis, private power companies will still struggle to fund their permanent power plants. “Therefore, there is still a high demand for rental power companies to fill-in the gaps” according to Bagatsing.

In the Middle East, the demand is very high in several countries like Yemen, Iraq, Afghanistan, Kuwait, Qatar, UAE (Abu Dhabi, Dubai and Northern Emirates), Saudi Arabia, Oman according to Bagatsing. Africa rental power opportunities are in Nigeria, Ivory Coast, South Africa, Kenya, Angola, Algeria, Egypt, Sudan, Congo Rep, Libya. Latin America will also consume more power due to high lack of power infrastructure; countries like Brazil, Argentina, Chile, Mexico and Venezuela are a great opportunity. There are also opportunities in the Asian regions; countries India, Pakistan, Bangladesh, China, Philippines, Indonesia, Vietnam, Thailand will still demand for more power to continue its industrial growth.

Peter den Boogert, RSS General Manager for Power Projects compares rental power demand in Europe, the Middle East, Asia and Africa. Boogert says “Europe is a declining rental power market because it is a mature market. But there are still opportunities in Europe, although not as huge as the new emerging markets. There is a high demand in new emerging markets such as Middle East, Asia and Africa due to high economic activities but less investment in power infrastructure by the government. The economic activities of these new developing markets are increasing at a fast pace while its permanent power projects are delayed. There’s a huge demand for power but less supply from the utility providers.

Hire & Rental Market in the Middle East/UAE

According to Bagatsing, “the whole rental power industry worldwide will grow 30% due to utilities, construction, events, oil & gas, military and emergencies (natural disasters and manmade conflicts). Middle East, Africa, South America and South Asia will have the biggest share among the geographic

RSS expects that Middle East will grow at 20% in 2011. Driving the growth would be utilities, oil & gas, construction, events and military projects. Iraq, Afghanistan, Saudi Arabia, UAE and Qatar will be the driving force in the rental power projects in the Middle East. These markets will have the most opportunities for rental power companies. “RSS had a successful 2009 and we are forecasting a successful 2010 as well. In 2009, we have expanded our operations to Jeddah, Riyadh, Dammam and opened our new offices in Al Khobar and Abu Dhabi” Bagatsing added. “In 2010, RSS have opened our new office in Cyprus which will serve as a hub for the whole Mediterranean area; we also opened our Islamabad office to serve the Pakistan market; and we have opened our Muscat office to serve the Oman and Yemen area. Our Qatar operation is significantly increasing while Dubai, Bahrain and Kuwait remains on positive level. This year, RSS appointed me (Peter den Boogert) as the general manager for global power projects who will look after the international power project opportunities and strengthen the power project division of RSS. RSS is still continually buying generators for our expansion plans and continually hiring the best people in the industry. RSS expansion plans have been supported by Lloyds Banking Group which was impressed by our financial results. As a whole, RSS had a tremendous growth last year and this year as well. I think 2011 is going to be an exciting year for rental power companies like RSS” Bagatsing said.

New Technology for Independent Power Generation

“Efficiency is important for temporary power equipment due to the cost of fuel” according to Boogert. “Power generator manufacturers are now focusing its efforts in the efficiency of equipment, especially for rental companies. RSS power project division and RSS product research and development department is closely working with our engine and enclosure suppliers in developing the most efficient diesel generators. Fuel efficiency is a main variable in the rental generator market. If you have fuel efficient power generators, then you are in good position to market your products and services” Boggert added.

Bagatsing says “the product research and development of RSS has extensive studies on how to reduce fuel consumption. This is one of RSS main differentiating factor among all other rental companies in the world. RSS has exceptional highly efficient fuel generators that can save hundreds of thousands of dollars for our clients. These are all documented, proven and tested. By 2011, RSS Power Projects division is going to introduce hybrid generators that will significantly reduce the fuel consumption, thus enables the client to save thousands of dollars. Beside the typical small (30kVA, 125kVA) medium (300kVA, 500kva, 650kVA) and large capacity generators (800kVA, 1000kVA, 1250kVA) in the market, RSS will offer breakthrough hybrid power generators.

“Gas generator engines are also being developed towards a sustainable project” according to Boogert. “But if you are going to look at the overall cost, you will see that diesel engine generators are still a viable option as compared to gas. Availability of gas is a critical important factor to a successful power project, however, there are locations/countries where gas is not available and diesel is more preferred due to its availability” Boogert added.