MechChem Africa February 2017

⎪ Plant maintenance, lubrication and filtration ⎪

By developing some standard solutions, Pragma has made it easier to implement asset management solutions covering all aspects of renewable energy operations.

Describing the structuring of an asset register, he says: “For a power station, for example, we follow the production process from the incoming resource, through steam and electricity generation and out via the switchgear. Or forwater treatment, we look at the equipment and processes involved inmoving and pro- cessing the rawwater intake, thefiltration, purification processes, pumping and dispatching.” The second stabilisation step is to get a sense of the work actually being done to manage assets: Are machines being repaired when they break down? Is any preventive, predictive or proactive maintenance being done? “We use the collective term ‘asset care plans’ as ideal deliverable output from this aspect of the programme.” “The task is to get to grips with the assets the or- ganisation has, howthey look after the equipment and howeachonecomplieswithhealth,safety,securityand environmental regulations,” he adds. Citing assetmanagement in the renewable spaceas an example, Nepgen says: “The cost of renewable en- ergy generationhas comedowndrastically. Compared toRound1of theREIPPPP, tender prices are60 to70% lower. As a consequence, margins are lower, so very reliable assets and optimised operate and maintain (O&M) costs are imperative. “Assetmanagement, whichhas been seen as luxury, now has an integral role to play in keeping renewable plantseconomicallyviable.Andeconomiesofscalealso play a role. By developing some standard solutions, it is easier to implement asset management solutions to renewable energy operations regardless of the tech- nology being applied – wind, solar or hydro – or of the installed OEM equipment. Since our solutions are all based on the ISO 55000 and GFMAM, AMIP is easily rolled out to marginal operations across the sector,” he tells MechChem . “The other effective tool embedded in these solu- tions is risk management. All plants rely on financing and funding, so investment risks are always of concern. Investors need to know that the assets will be effec- tively operational for the full 20 years of the power purchase agreement (PPA) and asset management is an essential tool in mitigating against the long term

risks associated with poor plant performance and reliability,” he points out. “Any investorwill want to seewhat plans havebeen put in place to ensure efficient operation for 20 years and practical asset management is the obvious way to ensureplant andfinancial sustainabilitymatches those envisioned,” he continues. He suggests that many development aid invest- ments on the African continent, while initially beneficial, “fall apart very quickly” due to poor asset management. “So, long term, the donor’s vision is not translated into long-term upliftment,” Nepgen says. The final destination of the Pragma Road Map highlights the ultimate sustainability objective. “The principle is universally applicable, wherever there are physical assets where the sustainability benefit has to be realised, formalised asset management plays a vital role. In summary, he says that assetmanagement strives tooptimise thebalancebetween threepillars: cost, risk andperformance. “Byneglecting the assets, the failure risk rises and the performance drops, whichwill even- tually drive up the costs. But if you over minimise the risk, then the care cost couldgo skyhigh. It is important to find the sweet spot, where the total costs and risk are minimised and the performance maximised. “In practice, though, assetmanagement is all about discipline,” he continues. “The higher an organisation progresses on the management maturity ladder, the moredisciplineplays a role. That iswhy theoutsourced Asset Care Centre (ACC) service we offer is so suc- cessful, because it enables discipline to be contracted into a service level agreement from the start,” he concludes. q

“Asset management, which has been seen as luxury, now has an integral role to play in keeping renewable plants economically viable. And economies of scale also play a role. By developing some standard solutions, it is easier to implement asset management solutions to renewable energy operations regardless of the technology being applied – wind, solar or hydro – or of the installed OEM equipment.”

February 2017 • MechChem Africa ¦ 11