BYRNE INTERVIEW NILESH JHAWAR senior business development manager - power projects
1.CAN YOU TELL US A BIT ABOUT YOURSELF AND YOUR ROLE IN THE BUSINESS? I am a professional with over 20 years of business development and project sales experience in the Power and O&G sector, over which time I have built a strong network in the MENA region. I joined the Byrne Group in early 2022 in the role of Senior Business Development Manager – Power Projects & Special Projects. My main objective is to target Mega power rental projects across the GCC and establish Byrne as a prominent player in the long-term power rental turnkey solutions space in the region. Having executed various medium and large-scale projects in the Middle East in the past, I have the experience and the know-how to drive this vision forward and I look forward to the challenges ahead and adding value to the Byrne business.
2. HOW IS THE CURRENT RENTAL MARKET FOR POWER IN THE GCC? The current power rental market in the GCC is very promising due to the rapid increase in the construction and commercial sectors as a result of forward-thinking initiatives such as Abu Dhabi Vision 2030, Saudi Vision 2030 and Oman Vision 2040. These initiatives are driving the
development of projects such as the expansion of metros and airports, as well as the construction of new hotels and shopping malls which are in turn creating a demand for power requirements. In KSA in particular, the plans in motion that are transforming the national infrastructure coupled with the major focus towards tourism and the setting up of key offices by various MNC’s, is resulting in opportunities in the power rental market. The country also has an abundance of natural resources such as bulk hydrocarbons and mineral reserves, so there is significant growth potential in the power generation rental sector in this space too. Improving financial support to explore the huge reservoirs, backed by low drilling and production costs has also set a favorable outlook for the growth of the market. For instance, in April 20202, the Ministry of Industry and Mineral Resources assigned around 54 mining reserves in different areas such as Madinah and Najran, to propel the energy industry as per its Vision initiative for 2030. As such developments surge, so does the demand for diesel generators and are thereby having an impact on the growth of the power rental market in the Middle East region positively.
3. WHICH INDUSTRIES DO YOU SEE THE MOST POTENTIAL FOR GROWTH IN THE NEXT FIVE YEARS? I foresee that the expanding power utilities and manufacturing sectors in the Middle-East region will play an important role in the power rental market revenue in the next five years as the majority of the countries in the region are diversifying their economies and strengthening their non-oil sectors. In particular, I would say that the utility sector has the most potential for growth and will dominate the power rental market, as the supply of rented power by utility companies for conversion or redevelopment process with the aging network of thermal power plants across the region is projected for significant growth. Lastly, it goes without saying that the tourism industry will grow at a fast pace with large and long-term power rental requirements, with NEOM KSA being a focus area for mega projects in the coming years.
4. WHAT CHALLENGES DO
A main challenge is frequent project delays which coupled with uncertainty
YOU FACE IN THE INDUSTRY caused by events such as the pandemic, has triggered a great level of AND HOW DO YOU OVERCOME THESE?
unplanned and sudden requirements from clients. To best manage this, Byrne has a system of advanced processes to improve communication and efficiencies both internally and externally, enabling for better planning and organization which is key to deal with uncertainty in any market.
5. WHAT ARE YOUR PREDICTIONS FOR THE RENTAL MARKET OVER THE NEXT FIVE YEARS?
The oil-rich countries of the Middle East are taking active steps to wean their economies off the dependence on hydrocarbons and are investing in renewable, clean energy sources. Relating to this, I predict that power generator rental solutions will experience surging demand as these clean energy solutions will provide strong power backup, which will be needed since energy from renewables is not continuously available. Renewable energy sources are becoming increasingly appealing due to the limitations of proven petroleum reserves and Biodiesel fuels are attracting increasing attention worldwide as a blending component or a direct replacement for diesel fuel in vehicle engines. A biodiesel generator utilizes biodiesel as fuel and this results in reduced levels of particulate matter, CO, CO2, total hydrocarbon, and SO2 emissions. The use of alternative fuels for these backup power sources is not only better for the environment, it is a cost-effective solution and I predict we will see a lot more of this in the future of the industry. I also predict there will be an increased demand for gas-based power plants for long term rental in the near future, owing to the above including the net zero initiatives and emission controls being implemented by many countries in the GCC.