A combination of circumstances over recent years has caused governments around the world to rethink energy policies and citizens to adjust their thinking on energy consumption. Many countries have experienced significant price rises and instabilities due to volatilities in wholesale oil and gas supplies, and shortages have been exacerbated in some regions by extreme weather events linked to climate change. These events are estimated to have been responsible for 74% and 37% of total power outages between 2000 and 2017 in the United States and Europe, respectively, and studies highlight a similar risk to energy infrastructure in Southeast Asia, as the region is particularly affected by high winds, heavy rainfall and flooding.
Energy security has become a global priority, and the above events have heightened awareness of the risks of dependence on fossil fuels and accelerated the development of alternative sources of energy, such as wind and solar. Electricity providers are under increasing pressure to maintain reliable supplies in the face of this unpredictable situation while at the same time integrating alternative energy sources into their grids. Mission-critical power users such as hospitals, airports, data centres and water treatment plants must devise their own energy security policies to mitigate these instabilities. These facilities require reliable and stable power on a 24/7 basis, and any interruptions can lead to severe operational problems and even threaten life.
While traditional power standby solutions are engineered around the use of backup generators, the global shift in energy policy is forcing a review of this approach as alternative technologies become available.
Reviewing the challenges in the supply and demand of energy
A closer look at the supply and demand-side challenges facing operators of energy networks will highlight the factors driving change in resiliency solutions. Recent geopolitical events have been responsible for uncertainties over supplies of fossil fuels, leading to volatile prices and, in turn, peak-time electricity shortages. Extreme weather events which interrupt electricity production and also affect its consumption are having an increasing impact on supply. Southeast Asia countries are particularly vulnerable to these events, which were responsible for over 33,00 fatalities and USD 97 billion in economic damages in the region between 2009 and 2020.
On the other side of the equation, electricity demand in the Southeast Asia region is forecast to grow rapidly in the coming decades; as electric vehicle penetration increases, the industry becomes increasingly digitized and “always on” demand for data services continues to grow. This growth in demand is challenging traditional electricity generation capacities, and the share of renewables is forecast to rise from 2% in 2020 to 18% in 2030.
Energy policies are also heavily influenced by regulatory regimes, and governments globally are focused on reducing emissions and progressively phasing out the use of fossil fuels. Along with many other countries in the world, Southeast Asia’s governments committed to updated climate targets at the Glasgow Climate Conference 2021, with net-zero targets to be achieved between 2050 and 2065.
The combination of the above factors is placing utility providers under significant short-term pressures as they implement energy transition strategies, resulting in higher risks of grid instabilities and supply shortages.
The role of the diesel generator in resilient power systems
Amidst such uncertainty, mission-critical users of electricity, such as hospitals and data centres, must more than ever ensure that their energy backup provisions are fit for purpose and will keep their mission-critical systems throughout any duration of grid outage.
Diesel generators are traditionally the backbone of any backup power solution, but as user demands change, generator requirements are becoming more stringent. As a minimum, operators of mission-critical facilities demand backup solutions which will operate reliably in
the most challenging of conditions. Meeting this baseline requirement means selecting the optimum generator configuration to meet criteria such as site location, configuration, output, size, humidity, vibration, cooling, and access. Generator sets may also require to be customized and optimized according to the specific needs of the end application.
Regulatory requirements, along with corporate sustainability goals, are putting the spotlight on the diesel generator, and although it remains the most cost-effective means of delivering reliable, on-demand backup power, users are constantly looking for options to reduce its environmental impact. By following Design for Environment principles throughout the product lifecycle, manufacturers of modern diesel generators can demonstrate their sustainability credentials to the market. Integrating effective emissions reduction technologies requires a collaborative approach between the manufacturer and relevant engineer consultancies, M and E contractors and, of course, the end user. The production of advanced diesel generators requires significant investments and a history of continuous technical development. In-depth expertise is required to ensure that the adoption of emissions reduction technologies does not compromise generator performance parameters such as transient response and output power.
Most modern diesel generators achieve emissions reduction through a combination of in-cylinder and after-treatment technologies, but recent developments in renewable fuels, such as Hydrotreated Vegetable Oil (HVO), bring the prospect of further gains. HVO is a third-generation renewable fuel made from waste products and residues such as vegetable oils, animal fats and used cooking oils and has been proven to reduce CO2 emissions by up to 90%.
HVO can be mixed in any proportion with traditional diesel and can be used directly in diesel engines, such as the KD Series from Kohler, without any adaptations. The fuel does not degrade and can be stored for extended periods of time. Although HVO is currently expensive compared to traditional diesel, multi-million-dollar investments are expanding the global supply chain – including processing plants in Singapore and Malaysia – increasing its availability.
Emerging technologies bring new possibilities
Although the diesel generator remains the most cost-effective means of delivering reliable backup power at scale, alternative energy sources are continually evolving, and many customers are eager to deploy them as part of sustainability strategies.
Solar and photovoltaics are two examples of alternative technologies which are being rapidly adopted for both domestic and industrial use. Both are currently dependent upon energy storage systems – batteries - to counteract the intermittent nature of their output. Batteries, however, are still relatively expensive, although learnings from the electric vehicle market are accelerating their capabilities and reducing their sizes and costs. In the interim, diesel generators can be integrated with solar arrays and battery banks, enabling the customer to maximize the use of clean energy sources without compromising resilience.
Green hydrogen is another emerging technology which promises to contribute significantly to future emissions reductions. Although hydrogen has been used by industry for many years, it is currently mainly produced using fossil fuels and is consequently responsible for
significant CO2 emissions. Southeast Asia countries currently account for around 3% of global hydrogen production, mostly using gas, but initiatives are underway to scale up the development of green hydrogen. Green hydrogen technologies, such as electrolysis, use electricity to split water into its Hydrogen and Oxygen components. Although currently an expensive process, global investments are focusing on increasing the scale of electrolysis plants and by 2050, 60% - 80% of global hydrogen supply is expected to be decarbonized.
Within the Southeast Asia region, countries including Singapore, Indonesia and Malaysia have embarked on projects to develop green hydrogen infrastructure.
The optimal solution integrates the best-of-breed
Most modern diesel generators achieve emissions reduction through a combination of in-cylinder and after-treatment technologies, but recent developments in renewable fuels, such as Hydrotreated Vegetable Oil (HVO), bring the prospect of further gains. HVO is a third-generation renewable fuel made from waste products and residues such as vegetable oils, animal fats and used cooking oils and has been proven to reduce CO2 emissions by up to 90%.
HVO can be mixed in any proportion with traditional diesel and can be used directly in diesel engines, such as the KD Series from Kohler, without any adaptations. The fuel does not degrade and can be stored for extended periods of time. Although HVO is currently expensive compared to traditional diesel, multi-million-dollar investments are expanding the global supply chain – including processing plants in Singapore and Malaysia – increasing its availability.
Emerging technologies bring new possibilities
Although the diesel generator remains the most cost-effective means of delivering reliable backup power at scale, alternative energy sources are continually evolving, and many customers are eager to deploy them as part of sustainability strategies. Solar and photovoltaics are two examples of alternative technologies which are being rapidly adopted for both domestic and industrial use. Both are currently dependent upon energy storage systems – batteries - to counteract the intermittent nature of their output.
Batteries, however, are still relatively expensive, although learnings from the electric vehicle market are accelerating their capabilities and reducing their sizes and costs. In the interim, diesel generators can be integrated with solar arrays and battery banks, enabling the customer to maximize the use of clean energy sources without compromising resilience.
Green hydrogen is another emerging technology which promises to contribute significantly to future emissions reductions. Although hydrogen has been used by industry for many years, it is currently mainly produced using fossil fuels and is consequently responsible for significant CO2 emissions. Southeast Asia countries currently account for around 3% of global hydrogen production, mostly using gas, but initiatives are underway to scale up the development of green hydrogen. Green hydrogen technologies, such as electrolysis, use electricity to split water into its Hydrogen and Oxygen components.
Although currently an expensive process, global investments are focusing on increasing the scale of electrolysis plants and by 2050, 60% - 80% of global hydrogen supply is expected to be decarbonized 4.
Within the Southeast Asia region, countries including Singapore, Indonesia and Malaysia have embarked on projects to develop green hydrogen infrastructure.
The optimal solution integrates the best-of-breed
Alternative energy sources will play an increasing role in addressing the energy crisis. Future energy systems are likely to integrate solar, wind and hydrogen sources with the traditional grid, easing the load on the grid while, at the same time, using the grid to balance the intermittent nature of alternative energy.
Mission-critical energy users will also be able to leverage these energy sources in their customized solutions, with batteries and diesel generators providing continuity and emergency backup.
Kohler recognizes the emerging role of alternative energy sources and take a realistic and pragmatic approach to innovative solutions, understanding that there is no ‘one size fits all’ answer. Optimum resiliency is achieved through the right mix of available technologies, including proven equipment such as generators. With our in-depth experience in diesel generator development and a commitment to exploring novel approaches, Kohler is ideally placed to offer our customers transparent and trustworthy advice on their best available options.
While we continue to improve the sustainability of our generators to ensure that our mission-critical customers have the energy security they need, we will also seek innovative ways of integrating emerging technologies. Whatever challenges the future may bring, our collaboration, approach to customization and optimization will ensure that Kohler will be a leader in the transition to tomorrow’s cleaner and more resilient mission-critical energy systems.