Maximizing Assets: Managing Existing Generators
Businesses with already-installed generators can find a smart way to step out of the generator business while maximizing asset potential through energy management and maintenance agreements. This approach essentially covers the second half of a full resiliency-as-a-service agreement. Since the equipment is already procured and installed, that part of the scope isn’t needed.
Unlocking Hidden Value
However, there may be some slight modifications required to the generator. This includes ensuring it meets non-emergency emissions levels and associated costs for re-permitting the asset. Additionally, installing grid-synchronous switchgear might be necessary if the program revenues justify it. These modification costs can be seamlessly integrated into the agreement, along with equipment maintenance and management within the economic dispatch programs.
Financial Benefits
What makes this approach truly appealing is that the overall cost of the solution will likely be less than the additional revenue streams generated. In practical terms, this means companies can now receive payments for their existing generator’s participation in these economic dispatch programs. It’s a savvy way to obtain a return on an otherwise sunk cost that was already made by the business.
Focus on Core Objectives
Furthermore, adopting this kind of program allows businesses to exit the generator business altogether. They can now divert their attention and resources toward core business objectives, leaving the complexities of generator management and maintenance behind.
In conclusion, for businesses with existing generators, there’s a clear path to optimize assets and financial returns. By leveraging energy management and maintenance agreements, companies can turn their generators into income-generating assets and shift their focus back to what truly matters – their core business objectives.
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