Manufacturing continuity in unstable conditions is possible with energy as a service.  

There are significant infrastructural challenges facing manufacturing organisations in South Africa, as well as Africa, the Middle East and Asia (AMEA), impacting potential and productivity.  

Infrastructure is one of the most challenging hurdles, particularly in Africa, with poor road and transport facilities combined with erratic power provision making it difficult for companies to do business effectively. 

Without stable power, or the infrastructure to transport goods or alternative power solutions, companies are unable to manage production, deal with unexpected downtime and pay the hefty price for both expenses and a loss of income. 

Louis Botha, country manager of Aggreko, South Africa, looks at some of the ways in which manufacturing organisations can manage unstable grid conditions, power outages and disruptions without compromising on ongoing operations. 

Manufacturing under pressure 

In South Africa, the manufacturing performance over the past year has been significantly affected by power instability.  

Earlier in 2024, Stats South Africa released data that showed how the sector had seen an increase of 0,7% year-on-year, while production contracted by 1,7% month-on-month in December 20231. 

The Academy of Science South Africa (ASSAf)2 has also underscored the urgency of the energy problem, both in Africa and the rest of the world.  

According to this organisation, it is a real energy crisis that is having “detrimental effects on the economy”.  

From poor infrastructure to legacy challenges and political instability, energy is becoming a scarce commodity that requires strategic clarity to mitigate in both the long and the short term. 

Energy innovation 

Despite the complexities and the potentially dire outlook of the energy landscape in the region and across the world, there is innovation. Solutions designed to provide energy stability are evolving rapidly.  

It is providing manufacturing organisations with scalable and customisable energy portfolios capable of giving the stability needed to function more efficiently. 

Companies can opt to move away from centralised energy systems towards decentralised networks that allow them to control their energy supplies without extensive upfront investments or lengthy payback periods. 

Energy as a service 

The energy-as-a-service model has become a reliable and capable alternative to traditional forms of energy management. Companies can create an energy portfolio based on needs and existing budgets. 

A trusted energy portfolio company can bolster production and improve service delivery without having to undertake hefty expenditures. This model allows for large industrial energy consumers to manage their on-site power generation. This gives them deeper control over their energy portfolio and requirements, as well as more granular visibility into their CO₂ emissions and energy security. 

Modular solutions 

The use of modular solutions that can be scaled up or down on demand, allows for optimal resource usage as well as better price management.  

Companies can opt into flexible pricing agreements that aren’t fixed, have minimum usage requirements or that require long-term contracts. 

Modular means agile. The ability to pivot usage and costs to meet unexpected disruption or uncertainty is invaluable.  

It offers control over on-site energy management as well as the option to use different types of power generation technology. 

Tailored solutions 

Modular, customisable and cohesive energy-as-a-service solutions that blend a variety of power generation technologies alongside skilled engineers and ongoing support is the key to providing cost-effective energy solutions tailored to business needs. 

Aggreko, a leading provider of industrial energy solutions, has structured energy as a reliable and accessible commodity.  

This is a far cry from the disruptive challenges inherent in existing infrastructure or within legacy solutions, as it puts control back into business’ hands.  

Unlock business continuity with energy-as-a-service solutions that deliver uninterrupted power, predictable billing and scalability. 

Louis Botha, country manager of Aggreko, South Africa.

References: 

1. Factory production lifts year on year 
2. Academy of Science South Africa 

Full acknowledgement and thanks go to www.aggreko.com for the information in this editorial.