23 September 2018

Industry Focus : Generators & Engines

The Power Boosters

 

Most of the major suppliers of diesel engines and generators in India have been continuously upgrading the design of their products. With projects now gathering frenetic pace the degree of competition in 15 – 75 kVA and 75.1 – 375 kVA segments is expected to increase considerably. Rohan Ambike writes about the changing scenario of the generators and engines market.

 

 

The growing infrastructure sector as a result of various projects, the rise of new industries across the country and the paced up business environment has increased hopes that the genset market in the country is going to grow. The rise of telecom towers in the country is another segment that has propelled the growth of the genset market. A recent report suggests that the diesel genset market in India is set to grow at a CAGR of 5.41 per cent during 2018-23. Experts also point out that the continuous power in manufacturing sector was one area which can be the key driver for the entire genset market in the country. Major infrastructure projects viz Delhi-Mumbai Industrial Corridor and Vizag-Chennai industrial corridor in line with state run companies and private players seeking to expand manufacturing base is propelling the growth of the genset market in India.

 

In market terms, the generator sales market is estimated to reach $ 20.93 billion in 2018 and $ 27.24 billion by 2023. The prominent usage of generators will be for standby, prime, continuous, and peak shaving applications, mostly in various end-use sectors such as industrial, commercial, and residential. Additionally, the growing demand for uninterrupted and reliable power supply is one of the main drivers for the generator sales market.

 

India currently suffers from almost 15 percent peak power deficit which is hampering growth of all sectors in the economy, ranging from manufacturing to services sector, health and hospitality, and construction and infra sector. Almost each and every organization needs consistent power supply, as data loss can be more expensive than the capital expenditure required for backup power equipment. Therefore, it is expected that the demand for diesel generators will grow in the coming years.

 

 

Fast facts:

  • Indian Diesel generator market to grow at 5.41 per cent during 2018-23.
  • By 2025 natural gas will contribute 20 per cent of fuel for generators.
  • Analog  to digital control technology transition has bettered monitoring of the fuel and coolant levels.
  • Use of advanced monitoring equipment, high tech control systems and other modern techniques on the rise.

 

 

 

Growth areas

 

The increase in the power deficits and the growing industrialization in the major southern cities of Bangalore, Hyderabad and Chennai has increased the need for gensets. Additionally, the other industries that are in search of gensets are —manufacturing and auto component industries in Tamil Nadu, information technology in Karnataka, bio-technology and pharmaceutical businesses in Andhra Pradesh and tourism and general engineering in Kerala and Puducherry.

 

Industries such as iron and steel, automobile, chemical and petrochemical, jewellery, textiles, cement and pharmaceuticals are another area that is a potential market area for the genset and the engine industry. Though there is a vast reduction in the rate of power deficit in the western region year-on-year, reports suggest that the demand for gensets has not reduced as they are the backup power source for many industries. The states like Maharashtra are home for industries that cater to the general engineering, automobile, chemical, pharmaceutical, textile and IT sectors. Similarly, the power deficit in Gujarat is also declining. However, the demand for diesel gensets is still growing due to the booming construction sector. The presence of large refineries and petrochemical complexes in this region requires reliable standby, emergency and mobile power that continues to boost the demand.

 

 

 

 

Sector segments

 

The Indian diesel genset market is broadly classified into four segments on the basis of kVA rating: low (5-75 kVA), medium (75.1-350 kVA), high (350.1-750 kVA) and very high (750.1- 3000 kVA). Low-rating diesel gensets constitute a major share of the market, and are used in the telecom sector for backup power in grid-connected areas and also as a main power source in off-grid areas. India is the second largest mobile phone market in the world with 500 million users and 700,000 telecom towers, which require continuous power supply - on average, the country's telecom tower network consumes over 11 TWh annually, and this is likely to increase to 17 TWh by the end of this year.

 

The global market for diesel gensets is largely dominated by Asia-Pacific due to rapid urbanization and industrialization in this region, with China and India emerging as the largest revenue contributing countries in the region’s diesel genset market. During the forecast period, diesel genset market in Middle East & Africa and South America is expected to grow at the fastest rate, driven by strong market growth in countries such as Brazil, Argentina, Saudi Arabia and the UAE. Globally, power demand is increasing rapidly, while supply is not growing at the same pace, thus creating huge power deficit in many parts of the world. Consequently, the demand for power generation equipment such as diesel generators continues to increase worldwide. Poor power infrastructure and unreliable grid power supply have been largely responsible for increasing frequency of power outages, which is likely to boost the demand for diesel gensets across the globe. Rising demand for mobile diesel gensets and biofuel based diesel gensets is also expected to benefit the diesel genset market.

 

According to recent media reports, the Telecom Regulatory Authority of India (TRAI) wants Telcos to switch to renewable sources of power as this would save millions of litres of diesel and in turn millions of rupees per year. Of the total number of towers, 10 per cent have a regular power supply, and for the rest their power is supplied by diesel gensets. The medium rating of diesel gensets is the second largest category used in India. However, demand for these machines is anticipated to decline due to its shrinking application in the telecoms sector.

 

In India, gas gensets market is still at the nascent stage, and the market is being propelled by the low cost and eco-friendliness of natural gas. By 2025, according to Ministry of Petroleum & Natural Gas (Government of India), natural gas will contribute 20percentage in the country’s energy mix. Moreover, Central Pollution Control Board (under the Ministry of Environment & Forests, Government of India) has laid out various norms for regulating the level of harmful emissions from diesel gensets, which is also expected to positively influence the gas-gensets market in India.

 

On the basis of rating, the country’s gas gensets market has been segmented into four broad categories, namely, low (1kVA-75kVA), medium (76kVA-350kVA), high (351kVA-750kVA) and very high (more than 750kVA) gas gensets. Among these gas gensets categories, medium (76kVA-350kVA) gas gensets segment is anticipated to dominate the country’s gas gensets market over the next five years on account of their wide acceptance across industrial and residential sector. Region-wise, West India dominated the gas gensets market in 2014, and the region is forecast to maintain its dominance during 2015 – 2020.

 

 

 

Technology target

 

Places such as data centers, hospitals, fueling stations, water and wastewater treatment plants, and communication and transportation systems need uninterrupted electricity supply to ensure and protect public safety and health. Unlike other fuel sources, such as natural gas and gasoline, generators that run on diesel are able to deliver a constant supply of reliable electric power. All this has brought a change in the technology. Here are a few technology trends that have brought a change in the generator and engine market.

 

 

 

Smart generators

 

Modern generators are undergoing a series of technological advances that make them unique compared to the conventional diesel generators in use. From advanced monitoring equipment to high tech control systems, vendors are incorporating all these features in their generators to differentiate these from their previous products.

 

Digital technology is widely being used in generators that perform as a backup power source for large-scale jobs. The transition from analog to digital control technology has provided end-users with better and reliable monitoring of the fuel and coolant levels. Apart from this, the digital control systems allow monitoring of battery life, engine oil, and temperature.

 

 

 

Bi-fuel portable generators

 

Bi-fuel technology when incorporated in the portable units, provides significant fuel savings and environmental benefits. DuroMax and Champion, design and manufacture bi-fuel portable generators. Diesel generators that use bi-fuel technology can operate on 70 per cent natural gas that includes scrubbed and cleaned wellhead gas. The system controller manages the fuel mixture that helps the equipment perform optimally under load.

 

 

 

Technological advances in diesel generator sets

 

Improved fuel economy continues to be the most significant progress in diesel engine technology. Although many end-users prefer gasoline-powered equipment, diesel engines possess a solid end-user base in the industrial sector, as this sector considers fuel economy as an important parameter in owning a power backup equipment. Over the years, several initiatives and changes have been implemented in order to improve the overall efficiency of the engine in a diesel-powered generator.

 

 

 

Diesel to remain leading fuel type in generators

 

Diesel as a fuel type dominates the overall generator market. For several decades, the generators, especially those used in the industrial sector, have been resorting to diesel as the most preferred fuel type, due to its lower cost and easy availability. Diesel generators will account for about 65-70 per cent of the market by the end of 2020 due to greater engine lifespan, low maintenance costs, safe fuel storage, and cheaper price.

 

Diesel Generators have come under the fire and direct threat of environmental protection groups and strict government regulations. Though the unfavorable effects caused by emission from DG’s can’t be refuted, their role in aiding the manufacturing, mining, telecom, medical and other sectors can’t be undermined either. Due to unavailability of uninterrupted and quality power, none of the industries can work efficiently without a back-up power supply system and as always DG comes to the rescue and remains the mainstay solution for industries, agriculture, services and remote locations.

 

Advancements in technology is creating unimaginable disruptions and using diesel fuel as a clean source of power would be a game changer in the power generation industry. The commercialization of a clean diesel technology seems inevitable but how soon would this be possible remains to be seen, till then we can only wait anxiously and excitedly for the next generation of generators.

 

 

 

Market offerings

Cummins

 

Cummins is a world leader in the design and manufacture of engines and power generation equipment, including PowerCommand standby and prime power systems. Cummins has unique expertise in that all aspects of generator set design, manufacture and service have been brought together in one company.Cummins GenSets are the epitome of rugged dependability and reliable mechanical and electrical performance. Cummins has fully redesigned its high-range GenSets to deliver the reliability, efficiency, and versatility that your customers want.

 

 

 

Mahindra

 

Mahindra Powerol, a business unit of the $19 billion Mahindra Group, recently announced the extension of its higher kVA Diesel Generators (DG) range with the launch of 400/500/625 kVA DG powered by Perkins 2000 series engines. Designed at its R&D hub at Mahindra Research Valley in Chennai and manufactured at its Chakan plant near Pune, this new range of Generator sets with 12.5 Litre to 18 litre Perkins engine is the latest addition to the Mahindra Powerol's higher kVA series.

 

The new range of DG Sets is equipped with Mahindra's unique DiGi-SENSE technology which makes it a Smart DG. The performance of Smart DG sets can be monitored real-time remotely from anywhere, thereby improving the uptime of the DG Sets.

 

The company entered the field of power generation in 2001-02. Since inception, Mahindra Powerol has made rapid strides in the Indian Genset industry within a very short span of time. Mahindra Powerol DG sets are the first choice of Telecom majors across India and overseas market. The brand dominates the Indian Telecom Industry for the last 11 consecutive years. Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA.

 

 

 

KOEL

 

Incorporated in 1946, KOEL is the flagship company of the Kirloskar group. KOEL specialises in the manufacture of both air-cooled and liquid-cooled diesel engines and generating sets across a wide range of power output from 5kVA to 3000kVA. The company serves Service industries such as telecom, IT/ITES, BPO, shopping malls, hotels, hospitals, and banks; educational and financial institutions.Infrastructure projects such as airports, roads, bridges, residential and commercial complexes, townships, high-rise buildings and many more.Other significant industries include engineering, manufacturing, FMCG, automobile and auto ancillaries, textile, pharmaceuticals, dairy, and food processing.Defence agencies, such as the air force, army and navy, as well as the coast guard.

 

 

 

Volvo Penta

 

Volvo, now in its 20th year in India, has invested `2,500 crores with 400 different Service and Sales points and three manufacturing sites pan India. Volvo Penta offers globally as an independent engine manufacturer fixed speed industrial diesel engines to generator manufacturers between 85 and 800 kVA.Penta, is widely acknowledged for versatile engines developed to satisfy OEM’s demands with their low weight, compact designs and easy installation making them perfect for numerous machine and equipment applications in a variety of industries. 5 and 8 liter engines are equipped with common rail and offer a wide power range. OEMs can replace their 6 or 7 liter 6 cylinder engines with the 4-cylinder D5, due to its higher power density.

 

 

 

JCB Power Products

 

JCB Power Products offer generators from 8kVA to 3300 kVA worldwide, and a range of diesel generators in India. JCB generators are designed to suit any application from back-up support to industries from small, medium & large; infrastructures, BFSI (Banks, Financial Services, Insurance), Real Estate, Residential & Commercial properties, Hospitals, Hotels, Restaurants, Institutions, Petrol Pumps, Airports, Construction sites or off-grid locations. JCB generators come with JCB ecoMAX engine and the highest quality components, alternator, controller and breakers with the largest, world-class dealer network.

 

 

 

Sudhir Power

 

Sudhir Power is a known name in the generator fraternity with an expertise to successfully meet the power requirements of a wide range of individual and institutional customers. Important sectors for power generation solutions are Telecom, Construction, IT/ITES, Realty, Hospitality, Textiles, Auto & Auto Ancillaries, Food Processing, Data Center, Infrastructure, Pharma and Manufacturing sector.The company's product line includes the widest range of Gensets ranging from 7.5 kVA to 3000 kVA, with a fuel option of Diesel or gas.

 

 

 

Mitsubishi

 

Mitsubishi MGS series is the diesel generator sets series designed by Mitsubishi Heavy Industries, Ltd.Japan and has an experience of more than 15 years. Mitsubishi MU-G series is the diesel generator sets series with medium speed SU engine series, with the capacity of 1MW up to 3MW, for any application from stand-by, prime and continuous. MGS-B/C series are equipped with low voltage alternator. (380-415V for 50Hz and 380-480V for 60Hz). MGS-HV series are equipped with medium to high voltage alternator. (3.3–11kV for 50Hz and 3.3–13.8kV for 60Hz). MOG series are specially designed to fit the requirement of oil rig top drive generator sets, in the oil field industry. Mitsubishi gas generating set, with high performance and cleaner environment, high speed gas engines, are widely accepted in Japanese market for more than 10 years and now started marketing worldwide.

 

 

 

Caterpillar

 

Caterpillar commercial and industrial diesel generator sets deliver reliable, clean, economical power – even in the most demanding conditions. Each Cat diesel generator set is designed, engineered and manufactured for optimal performance. The range offered by Caterpillar is from 6 to 14,040 ekW (7.5 to 17,550 kVA) of power potential.

 

 

 

Greaves Cotton Ltd

 

Speaking of generators and engines, one cannot ignore the engine giant with a legacy of over 160 years. The company offers an entire range of engines and power gensets developed with in-house research and strategic alliances with international brands like Ricardo of UK. Their gensets have diverse applications ranging from automotives, marine, defense, construction equipment, and agriculture.

 

 

 

Sterling Wilson

 

Sterling & Wilson, the parent company, is a leading MEP engineering group with over 90 years of experience in project engineering and execution. Sterling Generators manufactures D.G.Sets starting from 10 kva upto 3000 kva. The Range includes 415 Volts LT Sets as well as 3.3 / 6.6 /11 KV HT Sets. SGPL sets have established benchmarks in fuel efficiency, reliability and adherence to global emission norms. For Domestic requirements, sets upto 750 kva are supplied with Acoustic Enclosure (Ready to Use Sets) as per statutory norms. Higher capacity sets are supplied with Acoustic Enclosures with 25 dB insertion loss.

 

 

 

FG Wilson

 

For over 40 years, FG Wilson has been a world leader in the provision of diesel and gas generator sets, as well as complex power generation solutions. With global production facilities in Brazil, China, India, the US and at company headquarters in Northern Ireland, UK, FG Wilson generator sets range from 6.8kVA to 2,200kVA and include open and enclosed generator sets providing prime and standby power. FG Wilson diesel and gas generator sets can be used in a variety of applications, including domestic use right through to power modules with the ability to operate as complete power stations supplying electricity to national grids.

 

 

 

Cooper Corporation

 

Cooper Corporation has a technical tie-up with RICARDO, UK, for the design and manufacture of state-of-the-art technology for engines meeting current & forthcoming emission norms. Engines are available in diesel and gas versions in sizes from 1.2 Liter to 7.8 Liter. Cooper engines are known in the market for their compact size, best in class fuel efficiency and lowest maintenance costs. The company caters to Domestic and International markets in various applications like Agriculture, Construction equipment, Marine, Automobiles, Pump, Tractor, and more.

 

 

 

CONCLUSION

 

Today there is an unprecedented movement throughout the industrial sector- manufacturing, construction and infra and a lot more. The growing housing projects have increased the demand of the standby power from the residential segment. There is a robust demand for gensets in India, across all types and capacities.

 

 

 

 

“Volvo Penta has a global service network. Also in India we have a complete aftermarket network with trained service engineers and multiple locations around the country. All technicians are trained in our own training center in Hoskote and continuously updated about the latest technologies and trends.” Miron Thoms, Vice President & Head Of Volvo Penta India

 

 

 

“Mahindra Powerol has made rapid strides in the Indian Genset industry within a very short span of time. Mahindra Powerol DG sets are the first choice of Telecom majors across India and overseas market. The brand dominates the Indian Telecom Industry for the last 11 consecutive years.Mahindra Powerol power diesel generating sets from 5kVA to 625 kVA. Our 125 kVA gas genset is the country’s first indegious gas genset in the market.” Hemant Sikka, President — CPO, Powerol & Spares Business, Mahindra & Mahindra

 

 

“Our formula is very simple:  self-contained generator sets which are easy to install and operate, designed for a long and productive working life, supported by a wide and professional dealer network and which represent value for money” Mithilesh Singh, Marketing Communications - Asia Pacific,FG Wilson




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