The changing dynamics of temporary power in GCC FM

Imdaad talks to fmME about its temporary power portfolio

Mahmood Rasheed, Imdaad.
Mahmood Rasheed, Imdaad.

The Middle East’s generator sales market is expected to expand at a CAGR of 5.85% between 2015 and 2020. A report released by analysts at Markets and Markets stated growth projects for the market stand at $23.4bn by 2020 from 2015’s $17.6bn.

Much of this growth is expected to be driven by 350 volt amps (kVa) to 1,000 kVA power rated generators, due to increasing demand from the real estate, telecom and information technology (IT), and commercial sectors.

Within the FM sector, temporary power supports maintenance and cooling operations, particularly as part of planned preventive maintenance (PMM) programmes. In addition, temporary power units are also a key requirement of refurbishment projects.

Imdaad’s portfolio of business support services includes temporary power rentals, and company chief operating officer Mahmood Rasheed is confident about growth in the sector: “Imdaad currently accounts for 8% of the temporary power sector, but we expect this share to grow in the coming years as we step up our acquisition and expansion plans.”

Services provided within the temporary power sector by Imdaad include generator and chiller rental offers, annual maintenance, and generator set (genset) trading. Within the sector, Imdaad has collaborated with regional organisations like K Flex Industries, Al Athfal Al Saudaa Readymade Garments, MS Construction, Al Habhtoor Leighton, Dubai Dry Docks, Dubai Municipality, Jebel Ali Free Zone, and DP World.

Imdaad rents out generators it purchases from UK-based Cummins, which Rasheed says are “flexible, reliable, faster, and cost-effective and... capable of meeting the requirements of different companies across industries”.

Rasheed says that while demand for temporary power appeared to dip in 2016 compared to 2015, a market recovery is anticipated this year: “Across the GCC, the demand and need for temporary power supply has taken the upward trajectory over the years alongside the steadily increasing power consumption in the region.

“In the UAE, we saw a decline in local demand in 2016 compared to 2015. However, it will likely recover and accelerate this year thanks to large-scale projects that are ongoing or are still in the pipeline,” Rasheed says, adding the trend for temporary power deployment is likely to grow in the years to come.

“Projected high growth in the infrastructure, commercial, and retail segments is forecasted to drive [up] demand for temporary power.

“We have seen numerous emerging trends in the sector, but the top three standouts for us are increasing construction activity, a growing popularity of diesel generators, and rising preference for sustainable temporary power solutions.”

Imdaad’s COO believes property developers and government authorities will “press for more efficient and sustainable temporary power solutions”. Consequently, demand for reliable power generation products that optimise fuel consumption, save energy, and allow for safer operation will grow.

It is likely that the IT sector will drive the growth of temporary power systems in the regional FM industry. Research and Markets’ report, titled Data Centre Middle East 2016 to 2019, estimates that 10 regional countries – including all GCC states – have “almost 140,000 m2 of data centre raised floor space” as of 2016. As Markets and Markets’ report points out, such industries “continuous supply of power” to maintain process flow: “Power outages and voltage drops not only affect the pace of the process, but also lead to malfunctioning of equipment, leading to monetary and operational loss.

While market conditions are ripe for the temporary power sector to boom, how it charts this growth remains to be seen.

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