Power generation company Alstom Electrical Machines, a division of the Alstom South Africa Group, has expanded its product offering in an effort to broaden its sector focus, explains Alstom Electrical Machines MD Paul Cuthbert.“In the past, the company only used to supply diesel-powered generators with a running capacity of 2 MVA and up. We were not industry participants below that rating. Many factors influenced our decision to expand our product base. The main factor came about as a result of interactions with our stakeholders and our client base. We saw that there was a need in the market for generator sets with a running capa- city of 10 kVA to 1,5 MVA; these will be supplied across all market segments. We realised that there were not many reputable companies serving that market and we took advantage of the gap,” says Cuthbert. He adds that the company has put more emphasis on industrial and commercial sectors.Cuthbert reports that the second factor that influenced the com- pany’s decision to expand its pro-duct base came off the back of Alstom Electrical Machines’ ability to offer its services to all market segments through either cost-effective standard format imported generator sets, or custom-built, locally assembled specialised generator sets.The standard imported generator solutions that Alstom Electrical Machines offers are sourced in China. “The Chinese sets that we are importing are high end but still remain very cost-effective. They are also of good quality and the components that are installed in the generator sets are all well-known branded products,” says Cuthbert.
Alstom’s Diesel Generation business manager Paul Lepora tells Engineering News that as customers discover the need for specific generation products, there is often a need for those products to have unique features. “People who are purchasing the generators are either businesses or top-end domestic users. They have come to the company and have expressed a need for the generator sets to be customised to their specific needs – this may relate to anything from special sound proofing aspects, to special multiset syncronised applications, both fixed or mobile in nature. We offer the client a complete turnkey solution based on the specific application, including the supply of plant, installation, commissioning and maintenance of the generator.”He adds that locally assembled generator sets can be more expensive than the imported standard format Chinese sets, but that this is often owing to the customised nature of the local products, in addition to the fact that there are no local manufacturers of cost-effective generator engines and alternators.Lepora reports that another key factor that has encouraged the pro-duct range expansion is that the generator and standby power industry have increased in importance as a result of the recent ongoing power outages that have occurred across the country, and the need for clients to align their alternative power systems with reputable soloutions providers.He comments that, because of the low barriers for a basic entry into the industry, there is an increasing number of new competing companies. “The result of this is that there are companies in the industry that are importing or assembling and supplying generator sets of poor quality to end-users and are taking advantage of the fact that the end-user is not fully aware of the technicalities pertaining to the product being purchased,” says Lepora.Nevertheless, Cuthbert points out that these companies do not typically last more than a few years. “There are only really a handful of reputable companies operating that have been in the industry for a significant time period.” He adds that generator sets remain a grudge purchase for most clients, but it is expected that, owing to the change in the Alstom Electrical Machines’ business model, the company should able to offer cost-effective solutions to suit clients’ needs for a lower-price generator set, coupled with a good balance of high quality, reliability and back-up service.Lepora adds that by word of mouth and the company’s reputation in the market, Alstom Electrical Machines has been able to generate a good volume of locally based clients over the last year. He says that the company is currently opening up the nature of its business to be more visible in the market, thereby raising the profile of the company. “The company has experienced exponential and sustainable growth over the last year with the completion of many projects. We hope to expand on that growth and take the business into Africa. Initially we will be focusing on the countries in the Southern African Development Community and, as capacity allows, expand into the wider sub-Saharan Africa region,” says Lepora.Cuthbert reports that the company’s short-, medium-, and longterm goals are seen as a process that is going to be structured towards achieving sustainable growth. “Initially, we want to develop a sustainable alternative power source business that serves a defined market. This is going to be achieved by interacting with clients that have specialised power needs. We would also like to develop a sustainable client base,” concludes Cuthbert.Meanwhile, Alstom Power Systems has been awarded a further three contracts to boost the electricity distribution capacities of the City of Tshwane Metropolitan Municipality’s high-voltage substations to meet rapidly growing demand for power in and around Pretoria.The three additional contracts, awarded in February and March this year and totalling R40-million in value, are for extensions to the existing Njala, Pumulani and Win-gate substations. Added to the contracts awarded previously, involving establishing two new substations and expanding and upgrading two others, the latest contracts bring the total value of substation contracts awarded by Tshwane municipality to the company to over R100-million in the past two years.The extensions to the Njala substation, which is one of Tshwane’s main infeed substations from Eskom, of between 132 kV and 275 kV, will substantially bolster present power supply capacity to a total 750 MW with the addition of a fourth 132 kV, to 250-MVA capacity transformer bay. The contract also includes extending the substation’s existing protection system and the erection of an additional transformer bay.While the Njala substation extensions are scheduled for completion early next year, as they are aimed mainly at ensuring that the electricity supply to the municipality keeps pace with current growth in demand, the extensions to the other two substations are longer-term projects to cater for anticipated future growth. Consequently, the contracts for them are phased for completion towards the end of 2008.Pumulani, an 11-kV to 132-kV sub- station situated north-east of Pretoria and supplying areas that include Pumulani township and expanding commercial and industrial areas in the vicinity of Roodeplaat dam, is to increase in size and capacity by 25% with the addition of two new 35-MVA transformer bays and a bus coupler, as well as new protection equipment and a supervision control and data acquisition link to the Capital Park control centre.The 11-kV to 132-kV Wingate substation, serving the Pretoria suburb of that name and currently compris- ing four bays, is to have nine new bays added to it, with special space-saving Areva disconnecting circuit breakers installed owing to severe space constraints resulting from the extent of infrastructure expansion outstripping servitude constraints.
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