February 2014

1 Middle East Electricity 2014 - Dubai

5% Growth Forecast in Middle East GenSets

By Emiliano Marzoli PSR Analyst SUMMARY: There was good attendance and participation from the OEMs, engine and GenSet suppliers. The opportunities for growth in the region remain positive driven mainly by significant government investments. Overall, the dynamics in the Gulf Cooperation Council (GCC) are evolving and the mood remains optimistic. At Power Systems Research, we see solid 5% growth in GenSets for this region in 2014. Most OEMs we talked with at the show said their customers were trending toward multiple unit installations. DUBAI—The Middle East Electricity Show 2014 (MEE) held here saw the highest participation ever in the event’s history. There were more than 1,250 exhibitors present with a 15% increase in exhibition space. Almost 50,000 visitors attended this three-day event (Feb. 11 -14), making it one of the most significant shows in the worldwide power generation industry. The general sentiment at the show was very positive. However European OEMs were more conservative about the growth opportunities of the GenSet industry in 2014. On the other hand, the Middle Eastern OEMs were very optimistic about the development of new business in 2014 and beyond and were particularly excited about the re-start of the economy in Dubai. Many factors contribute to this upbeat mood – the upcoming Dubai Expo 2020, predictions by the Emirates authorities that this event will prompt about €4.9bn worth of investment in infrastructure projects, and the record breaking 2014 spending budget of $226bn announced by the Saudi finance minister at the end of 2013. Finally, in the long term, more growth is expected in countries like Libya, Egypt and Syria, once all political issues and civil wars will be at an end. Looking at the show itself, it was impressive to see the effort put in by many OEMs to display large products.

• SCANIA showcased the GenSet 770, with new 16 L common rail engine for GenSets applications rated 700 kVA prime power at 50 Hz. The Swedish producer highlighted how its product was a smaller package compared to its competitors. Scania restarted production of GenSets just last year and there are expecting strong sales growth in 2014. Currently, AJ Power in Northern Ireland is producing Scania designed gensets.

February 2014

2 Middle East Electricity 2014 - Dubai

• DEUTZ displayed its BFM 2011 engines with external oil cooling. This is for power generators in non-regulated areas from 13 to 64 kW. The 2011 series engines were specially modified for the demands of the telecommunications sector and use up to 8% less fuel than their predecessors.

• VOLVO PENTA completed its Stage 3a range for GenSets by launching two new 16 L engines with prime power outputs of 600 and 650 kVA respectively.

• HIMOINSA displayed the Power Cube HPCW 510 gen-set. This 500 kW unit is 35% smaller than

the company’s standard GenSet.

February 2014

3 Middle East Electricity 2014 - Dubai

• FPT INDUSTRIAL showed its expanded range of GenSets and G-drives. FPT has widened its non-emissioned product offering up to 500 kVA through their Cursor engine series. They also introduced the mechanical version of the 6.7-litre (200 kVA) NEF for countries where stringent emission regulations are absent,

• MTU ONSITE ENERGY presented its new diesel GenSets with Series 4000 engines (up to 3400 kVA) and with Series 2000 engines up to 1400 kVA.

February 2014

4 Middle East Electricity 2014 - Dubai

• PERKINS introduced a new three-cylinder ElectropaK with 1103A engine for non-regulated areas. The 1103A goes in production in the second quarter of 2014. Perkins was also showing its natural gas engine for power generation based on the 4000 series.

• MAN TRUCK AND BUS presented the 6-cylinder in-line engine, D2676 LE22x, as well as the 12-cylinder V-type engine, D2862 LE22x., The D2862 LE22x, is a 12 cylinder V-type diesel engine has a displacement of 24.2 litres, with a 128 mm bore and a stroke of 157 mm. The V12 offers mechanical performance of 880 kW at 1,500 min.-1 and 1,117 kW at 1,800 min.-1 for power generation in Emergency Standby Power (ESP) mode. The D2676 LE22x has been developed as a four-stroke diesel engine with 6 in-line cylinders able to yield 12.4 liter displacement with its 126 mm bore and 166 mm stroke. The 6-cylinder offers back-up mechanical performance of 396 kW at 1,500 min.-1 and 415 kW at 1,800 min.-1 for power generation in Limited Time Power (LTP) mode.

February 2014

5 Middle East Electricity 2014 - Dubai

• CATERPILLAR’S Gulf distributor Al-Bahar showed the C175-20 diesel generator set. With the capacity to deliver 4,000kVA of power in 1,500rpm or 1,800rpm configurations, the C175-20 can accommodate standby, prime, and continuous applications. While almost all OEMs showed smaller GenSet units with a synchronised configuration, Cat argued that having one large unit Is more reliable. The majority of the OEMs interviewed by Power Systems Research during the show claim that most of their customers are trending towards multiple installations. Their response is that if one unit fails the others will be able to keep operations running. Furthermore, with the synchronization, it is possible to adjust the number of machines running according to power demand, thus reducing running costs. PSR