As Eskom’s energy crisis escalates, big businesses, large-scale industrial operations, and mega corporates continue to suffer in the dark, losing money.
Many businesses have had to retrench staff or completely close shop due to the persistent unreliability of the national power supply, coupled with constant blackouts and widespread unrest.
According to BusinessTech, Eskom Chief Executive Andre de Ruyter said last month that Eskom is expected to add substantial capacity over the next 18 to 24 months – but can businesses wait that long?
Responses to the crisis
City of Cape Town Executive Mayor Geordin Hill-Lewis described the country’s current situation as a ‘fully-fledged socio-economic crisis’.
The City of Cape Town recently published a 10-point plan on how best to combat the rolling blackouts.
The city has already begun to procure additional capacity from Independent Power Producers (IPPs) to take the pressure off Eskom and end load-shedding over time in the Mother City.
Addressing the electricity woes
With electricity costs estimated to double over the next 10 years can your business survive? Both the immediate & long-term impact will ultimately affect your profitability.
As we know further electricity increases are around the corner, and it’s highly imperative to effectively plan and invest in a more sustainable solution that guarantees a reduction in operational running costs. This has a direct positive impact on the financial growth for your business.
Alpha Power Solutions have meticulously formulated an effective algorithm that quickly calculates your savings based on your current monthly electricity bill specific to your industry.
Investing in Power Factor Correction (PFC) systems
Electricity costs are among the top five operating expenses incurred by most businesses. Making an investment in Power Factor Correction (PFC) systems will reduce your operating expenses.
The payback period for investments in well-designed PFC systems is usually between three and 18 months. PFC equipment of good quality has a life expectancy of at least 10 years.
What are the benefits of PFC?
- Lower electricity bills
- Reduction in apparent power
(Also known as maximum demand)
- Increased system capacity
(Free up capacity on your supply transformer)
- Reduced voltage drops
(On the supply transformer and supply cables)
- Reduced transmission losses
Industries likely to benefit the most from PFC
- Plastic: extrusion and recycling
- Industries using
- machine tools
- stamping machines
- FMCG industries
- Bottling plants
- Refrigeration plants
- Grocery stores
Our powerful tool that cuts costs
Is your equipment performing optimally? Are you wasting money on your electricity bill due to Eskom’s energy crisis? Once installed, PFC equipment, with regular maintenance, ensures monthly savings for your business.
At Alpha Power Solutions, we can reduce your costs and overall electricity bills with our prized Power Factor Correction Calculator.
As an example, a City Power-based plastic recycling plant, with a typical monthly bill of R280 000, can save close to R34 000 a month on your bill.
Meaning that, based on your monthly operational energy cost, with a PFC investment of only R371 368, you could invest around R33 600 back into your business, every month!
This equates to a net benefit of R7,188,631.58 within 10 years, and a payback period of only 11 months.
Efficient and straightforward, our simplified Power Factor Calculator can be used to see immediate monthly savings that you can re-invest into a small solar system.
So, what about solar?
As more businesses turn towards a “greener” approach, investing in efficient energy-saving alternatives are on the rise.
Investment in solar systems is a current popular solution. PFC is one such technology that when installed in conjunction with solar power can reduce your overall investment.
The immediate cost of such technologies is significant; however, the long-term benefit is that your business is futureproofing itself.
Industrial solar installations can be highly costly and take years to achieve a break-even position.
With all the talk about becoming energy efficient and going off the grid, our founder Eric Solot notes that the technology used to reduce electricity costs is not the focal point.
What is important is that the technology results in savings. He advises, provided the right high-quality PFC equipment is installed – businesses can expect these savings month after month, year after year.
Looking ahead: is there light at the end of the tunnel?
While South Africa’s generation capacity remains strained, Eskom has announced plans to make additional land for renewable energy projects via private power producers.
Despite this, Eskom’s energy crisis continues to hit businesses and will no doubt have rippling effects on companies in the short to medium term.
In light of this, it’s the right time for businesses to think about how they can save electricity, their businesses, and ultimately their money… saving on your power expenditure is king – we understand this.