Rethinking power generation in SA
Heman Kassan, Chief Commercial Officer of Technodyn
The ongoing implementation of load shedding in South Africa provides power generation companies with fresh impetus to focus on renewable opportunities. This requires becoming more agile and putting enterprise software in place that is flexible and can also support new business models driven by more comprehensive data analysis.
Data analysis
Take customer usage as an example. If a power-generating business prioritises data collection and service portals, it can more accurately capture information on what customers are consuming. This can be collected from internet of things (IoT) sensor data on smart meters. By understanding consumption patterns, companies can focus on investing in technologies and alternative power solutions that can help address peak usage demands to ease the pressure on the country’s fragile energy grid infrastructure. Furthermore, providers can significantly improve project and asset management thanks to the integration of data analysis throughout the power generation value chain.
By and large, utilities will always be dependent on long-lived, expensive assets. However, it is consumer and business consumption patterns that are continually evolving, impacting the lifecycle of each asset. This requires frequent maintenance and refits to ensure there is still a level of profitability gained from the assets while customers experience minimal disruption of service. As is evident by the unreliability of the power supply in the country, the incumbent has significant work to be done in this regard.
As alternative power generation companies begin to emerge, they will likely become reliant on cloud-based software platforms that are scalable and adaptable to meet the needs of a potentially significant different utility model. For instance, a utility company will no longer just provide basic services such as power or water. Instead, it can offer a range of service packages, including carbon trading.
Built-for-purpose
It is a fundamental part of a utility business to keep assets operational. This not only maximises throughput but also keeps revenues ticking over. Of course, maintaining quality standards is critical when it comes to complying with safety and environmental management requirements.
As part of this, delivering equipment and spare parts becomes critical for all asset-owning companies. To successfully manage this, the provider must have an enterprise resource planning system in place that features comprehensive spares and repairs inventory functionality. The software must also streamline material transfer. This will help reduce shipping costs while minimising the potential for unplanned downtime.
Minimising costs
Downtime is simply not an option when it comes to electricity provisioning. It directly affects the bottom line. This is why long-term management and maintenance of assets is critical regardless the operator. Any company in this segment must perform service, upgrades, and lifecycle extension on assets. A business application that meets strict quality requirements and demands must therefore be put in place.
Being able to leverage a cloud-based environment means operators can access an open platform where tailored applications can be more easily implemented and managed. It becomes easier to manage service and operations with integrated project management, material management and logistics, maintenance planning, work and service order management, resource allocation, document management, finance, business intelligence, amongst others.
Collaborating for success
Of course, the power generation company is just one part of a much larger value chain. Suppliers and contractors can reduce and manage costs efficiently to mutually benefit everyone. This is where collaboration in all aspects becomes critical for success.
Subcontractors also form part of this process. They are fundamental for successful delivery throughout the value chain. But managing the contracting process in today’s digital environment has become complex given the business’s dynamic nature and the government’s ongoing regulatory changes.
The challenge in this regard is to break down traditional operating silos to improve visibility and traceability. This becomes a critical step as operators increasingly embed vendors through the value chain. A collaborative system is, therefore, imperative to deliver the required control and maintain an open value chain while working with various vendors.
Enabling this requires the company to use sub-contract management solutions and Web-based collaboration portals.
Constant change
Energy will always be essential in the modern world. But the current times show that fluctuations in price too significantly impact traditional commodities-based generation methods to be sustainable, especially when business and consumer customers are turning to alternative forms of power generation.
Energy utilities are looking at delivering other value-added services that drive new revenue. In Europe and the United Kingdom, an open retail market in place enables customers to choose from whom they should buy their energy. While South Africa is still far from becoming that reality, the processes are slowly being implemented to enable this. Regardless, the entire power generation value chain must be approached differently if the country is to move beyond load shedding.