Loadshedding does not mean your business has to fail

While rolling blackouts threaten South Africa’s economy and impact business productivity, the consistent outages have presented a substantial opportunity for the Uninterruptible Power Systems market, which is expected to grow at a CAGR of 4.28% from 2022 to 2030.

South Africa has a long and dark history with loadshedding, which began in 2007 when Eskom implemented the power rationing system to conserve electricity as the country’s energy demand exceeded the utility’s ability to supply it.

Among pre-existing maintenance issues, recent bouts of loadshedding have been spurred on by deliberate acts of sabotage, cable theft and unlawful labour action at several power stations, pushing the country to fluctuate between Stage 2 and Stage 6 loadshedding.

However, as the economy suffers at the hands of loadshedding, the Uninterruptible Power Supply market has gained exceptional demand, while providing stable and clean energy. A study by Verified Market Research revealed that the global UPS market reached a value of $7.8 billion in 2021, upward from $7.2 billion in 2010.

Options for backup power systems

An uninterruptible power supply or uninterruptible power source (UPS) is an electrical apparatus that provides emergency power to a load when the mains power fails or in the event of a power outage. A UPS differs from an emergency power system or standby generator in that it will provide near-instantaneous protection from input power interruptions, by supplying energy stored in batteries, supercapacitors or flywheels.

The three most common types of UPSs are online double conversion, line-interactive and offline or battery backup power systems. Vertiv explains that online double conversion systems are able to turn incoming power into direct current (DC) and then convert it back to alternating current (AC), which ensures an increased degree of isolation of the load from the irregularities, such as voltage sags and spikes on the main supply.

More relevant to providing solutions to South Africa’s loadshedding crisis, however, are offline and line-interactive technologies, which also reduce the impact of spikes, surges and sags by either clipping the peaks and valleys, boosting power or switching to battery backup.

Line-interactive backup systems provide power conditioning benefits as well as backup battery power and are typically used in rackmount applications below 5000VA. The inverter can operate in reverse to charge the battery while AC input is normal and switches to battery power with a 4-6 millisecond break in power when outages occur.

The most cost-effective of the three choices is the battery backup system which is ideal for short outages, though it won’t smooth power during minor surges and sags. This UPS technology is best suited for devices under 1,500VA such as personal computers or small offices and provides a great alternative to generators which, though able to power a larger load for extended periods, may fall short in the categories of affordability, sustainability and accessibility.

Power inverters, such as solar inverters, convert the voltage from the DC electricity generated by solar panels to AC electricity which the grid uses. This provides a sustainable solution with a capacity of between 500VA to 1,500VA. However, the inverter system would need to be connected to a battery or have a pre-installed battery charger to supply electricity during blackouts.

Mitigating the economic impact of loadshedding

In a recent Moneyweb radio show, Alexforbes Chief Economist Isaah Mhlanga stated that Stage 6 loadshedding alone may have already cost the economy R4.1 billion a day, further accelerated by the consequent loss in productivity, investment and business confidence levels.

When rolling blackouts were escalated, Arion Power, a South African manufacturer and supplier in the backup power and ICT space, experienced an exponential increase in demand for their mini plug-and-play battery backup UPS device, the WiBox, which powers routers and fibre boxes during power outages.

“People are realising now that a UPS is a household item that you should have,” Brian Gadisi, Co-Founder and Head of Finance & Business Strategy at Arion Power, told ESI Africa. “Even for small businesses and SMMEs, devices that can keep you going during loadshedding will promote business continuity and productivity so that even when the gird is failing, it doesn’t necessarily mean that your business has to fail.”

The WiBox, designed by Arion Power, was invented as a solution for students who struggled to complete assignments or still wanted access to online streaming services during their mandated “downtime”. The WiBox’s 84WH rating provides the user with up to 6 hours of backup time. However, what soon became clear is that the cost-effectiveness of the product translates perfectly in South Africa’s economic landscape as battery backup systems are relatively affordable and easy to connect.

“We wanted to create something that is friendly for a student budget – there are solutions out there such as inverters on which you can spend anywhere from R8,000 to R180,000. So there are other options, but they are exclusionary.”

With the economic benefits provided by UPSs, Arion Power is also exploring the possibility of providing more inclusive financing options for small businesses that can’t afford to pay the full sum upfront. The complications of loadshedding present an opportunity for financial service providers to provide small loans. It also creates an opportunity for businesses in the backup power space to provide a rent-to-own or rent-to-use option.

“There is an opportunity for partnership with potential banks to support small businesses or make sure that large corporates have access to models that allow them to get these products up and running,” added Gadisi.

“What’s happening with the grid is going to affect your business and is going to affect the economy, but it doesn’t have to be as detrimental as it could be with solutions like this.”

This article was first published on ESI Africa.