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Daily Forex Analysis

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The outage greatly increased the demand for generators

When the power cuts caused by the natural gas restriction interrupted the production, the companies rushed to the generator. With the possibility of prolongation of the cuts, there was an increase in demand of nearly 50 percent in rental and purchasing. The price of a generator with a capacity of 100–200 KW/H varies between 150–200 thousand TL. However, the cost of electricity, which is almost three times higher with a generator, makes the industrial zones ponder.

James Gordon by James Gordon
January 29, 2022
in EN, Markets, News
0
When the power cuts caused by the natural gas restriction interrupted the production, the companies rushed to the generator. With the possibility of prolongation of the cuts, there was an increase in demand of nearly 50 percent in rental and purchasing. The price of a generator with a capacity of 100–200 KW/H varies between 150–200 thousand TL. However, the cost of electricity, which is almost three times higher with a generator, makes the industrial zones ponder.

The outage greatly increased the demand for generators

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The energy crisis experienced in the industry since last week has increased the generator demand of companies. Concerned about the prolongation of the power cuts and their reoccurrence in the coming days, the industrialists are going to supply generators by renting or purchasing them in order not to disrupt their production. According to the information we have obtained from industry representatives, the increase in generator demand has reached 50 percent since last week. The fact that the generator is not a fully efficient electricity source and that it needs to be cooled in between prevents it from being in the old flow of production, especially in large industrial establishments. At the same time, the fact that electricity generation from the generator is approximately 300 percent more costly weakens the hands of the companies.

In particular, the interest in renting is great

Ebru Ata Tuncer, Member of the Board of Directors in charge of Marketing of Teksan, who made evaluations regarding the generator demand, said, “After the news came to the agencies last week, we encountered a demand increase of nearly 50 percent, and there was a significant increase in the product sales we made with our Teksan brand. In addition, there was a high demand for Taxi Generator, our generator rental brand. We anticipate that the noticeable increase in generator demand will increase in the coming days, both through purchase and rental, in such a short time. We hope that the energy problems will be overcome as soon as possible and that the wheels of our country’s industry will continue to turn without interruption. Again, according to the information obtained from the market, it is stated that there has been a serious increase in the demand coming from all parts of Turkey and from all sectors, especially on the rental side.

Not enough for a big production

Industrialists with whom we talked about the dynamism in the generator market stated that generators were a savior in this period, but they were not considered sufficient in large manufacturing units. According to the information obtained, automotive supply industrialists stated that there are generators in many factories and they use them, so they can only run small production units, but this energy is not enough for the entire factory.

Dalgakıran: It usually takes 10 days

Turkish Machinery Federation (MAKFED) President Adnan Dalgakıran said that there was a serious demand for the generator from the industrialists in this period, and said, “Even though it seems costly, a 10-day stop loss makes a generator take too much.” Drawing attention to the fact that not every sector is able to work with generators, Dalgakıran said, “Electricity accounts for only 20 percent of the cost of some sectors. There’s not much they can do.“

Fayat: The sun has become an alternative

TOBB Ready-to-Wear and Apparel Sector Assembly President Şeref Fayat said that those who have never invested in generators before have increased the demand and that in such cases, the demand for equipment for alternative energy sources such as solar energy panels, together with the generator, increases. Giving an example from his own factory in Kırklareli OSB, Fayat said, “We can open our factory because we invest in renewable energy. 70% of the OSB is closed because there are no such investments. As a result, we can also benefit from the OSB’s natural gas quota. It is advantageous to have made these investments on such days. As industrialists, we want the procedures for renewable energy production to be simplified.

One-hour costs are 134 TL for the network and 385 TL for the generator

According to the information obtained from the experts on electricity generation with generators, a generator with an average size of 100–200 KW/H is sufficient for a small and medium-sized production company. The market value of a generator of this size is around 150-200 thousand TL. The electricity unit price is 1.34 TL. If we consider that the price of a liter of diesel, the energy source of the generator, is 14.28 TL, the hourly cost of electricity is 134 TL. The hourly fuel cost of the generator is 385.56 TL. In other words, the cost of electricity supplied from the generator is 287.3% more expensive than the cost of electricity supplied from the grid.

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Tags: Adnan DalgakırandemandEbru Ata TuncerEnergy CrisisGeneratorincreasedMAKFEDOutageŞeref FayatTeksanTOBB Ready-to-Wear and Apparel Sector AssemblyTurkish Machinery Federation
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