PV Smart Hybrid Diesel Gensets

Market Overview
In 2021, the market for diesel engines was worth US$ 8.21 billion. The size of the global diesel engine
MARKET SUMMARY market is anticipated to increase at a CAGR of 4.93%.
140 The market for diesel generators is anticipated to grow at a CAGR of more than 6% from 2022 to 2027.
120 The COVID-19 pandemic resulted in a drop in electricity generation, slowed global economic expansion,
and significant supply chain disruptions. The market is likely to be driven by factors such the rising
100
demand for an uninterrupted and dependable power supply and the rise in demand from the commercial
80 sector, especially the healthcare sector. Due to the growing need for a consistent and dependable power
60
supply in industrial and manufacturing facilities, the industrial sector accounted for the biggest portion of
the revenue from the sales of diesel generators in 2020.
40
In the near future, it is anticipated that the residential sector in developed economies, the commercial and
20
industrial sectors in emerging economies, and the growing demand for electricity in military operations
0 would present substantial potential for market participants.
2022 2023 2024 2025 2026 2027
In 2020, Asia-Pacific held the greatest share of the market, with China and India accounting for the
majority of demand. The trade in diesel engines for cars, which accounts for 0.17% of all global
trade, was the 83rd most popular product in the world in 2021.
The International Energy Agency (IEA) predicts a 4.5% increase in global power demand in 2021. 600 million people in developing Asia-
Pacific nations are without electricity. Hybrid power systems with diesel engine generators are anticipated to satisfy the power
requirements of such remote areas.

Drawbacks of diesel standalone

DIESEL FUEL COST SENSITIVITY

In Nigeria, the current cost of diesel is N140 a litre, which is expected to rise in the future, whereas the price of PV systems has dropped
dramatically over the previous decade and is expected to reduce even lower in the future. A standalone diesel generator of 450kVA will consume
around N30 million in fuel year, whereas a PV generator hybrid will consume less than N10 million in fuel annually, making this option more
appealing. A hybrid PV/battery system is more cost effective. It is possible to install a generator as a backup and cover base loads with solar
energy and batteries.

OPERATION AND MAINTENANCE COST SENSITIVITY

The PV system requires no fuel and has relatively low maintenance expenses, whereas the diesel generator requires frequent maintenance. The
usual maintenance schedule for a continuously running diesel engine set would call for 35 oil changes, 6 decarbonisations, and 1.5 overhauls
every year. The life-cycle cost of various degrees of diesel engine maintenance requirements, which are recurrent costs, comes to N1.8 million
per year for the capacity under consideration (typical 450kVA and 250kVA). The hybrid system's is only an upkeep for the backup generator,
which costs N500,000 per year,the maintenance is nearly 1/4th of diesel generators.

PV SYSTEM RELIABILITY SENSITIVITY

The dependability of a PV hybrid system is primarily determined by its
application. The life-cycle costs of PV hybrid- and stand-alone diesel-powered
systems were compared across a range of energy needs and reliability levels. Load
factor determines the efficiency of diesel plant operation, as only energy required
at a specific point in time will be supplied by the hybrid system, making the
system perform optimally, as opposed to running the diesel plant regardless of
load demand, which can result in under loading and poor load factor.
AESTHETIC VALUE SENSITIVITY
Rooftop solar installation has been shown to increase the aesthetic value of
residences, resulting in a quantifiable financial advantage over non-green buildings in the form of greater rent, occupant comfort, high property
value, and lower running costs.
Need for the hybrid generators
Hybrid generators are modern generators that combine classic generator sets with another controllable electric source to produce a fuel-efficient,
low-noise, and environmentally friendly source of electricity. During operation, the batteries in hybrid generators are charged by renewable
power sources (solar, wind, hydro, etc.) alongside the fuel generators. The power supply is provided by the charge held in the batteries, removing
the need for fuel generators to run continually.
CHARACTERISTICS OF HYBRID GENERATORS
Use of renewable energy sources: A hybrid generator combines typical fuel generators (diesel, gasoline, LPG, and so on) with renewable
energy sources such as wind turbines, gas turbine generators, solar powered power sources, and so on.
Low fuel bills: A hybrid generator helps to decrease fuel bills because the usage of a fuel generator set (diesel, gasoline, etc.) is only necessary
for a limited time to ensure that the hybrid generator battery remains charged.
Less noise pollution: When compared to standard diesel generator sets, hybrid generator sets emit significantly less noise.
Fully automated system: Hybrid generators include unique control systems that can monitor performance and notify the user of system status.
Hybrid generator applications: Hybrid generators are useful in areas where fuel (diesel, gasoline, LPG, etc.) is scarce.
By lowering the amount of fuel used in the generator set, it ensures that the generator set can run for a longer period of time with less fuel.
Hybrid generators ensure that residences and businesses have constant power supply. When there is a power outage, the generator system
recognises it and instantly starts supplying electricity to the associated home/shop. In regions where space and weight are limited, hybrid
generators are an excellent alternative since they are light, compact, and easily transportable. Hybrid generators can be used as the principal
source of power supply in areas where grid power is unavailable.

DRIVING FACTORS
Strong Government Support for the Industrial Sector to Drive Pump set Consumption
Pump sets are commonly used in industries such as oil and gas, water and wastewater management, metal and mining, and power generation.
These sectors have experienced considerable growth in recent years as a result of increased investment and strong government support. In India,
for example, electrification is gaining traction through programmes such as the Integrated Power Development Scheme, the Deendayal
Upadhyay Gram Jyoti Yojana, and the Ujwal DISCOM Assurance Yojana. With such supportive plans in place, the use of pump sets in these
industries is expected to rise in the future years, promoting the growth of the Indian single-cylinder pump set market.

Population:
psmarketresearch.com

population
puts more strain
on the agricultural
sector, which
boosts market
growth.
The population
of India is rapidly rising. India's population increased by 1.04%, from 1.35 billion in 2018 to 1.36 billion in 2019, according to the United
Nations World Population Prospects 2019 report. In the next years, increased population is predicted to increase demand for food crops,
horticultural crops, and cash crops. In order to meet market demand, the use of pump sets on arable land is rapidly rising. This, together with the
strong government support, is predicted to raise the need for cultivable land in order to enhance yield, hence raising the demand for pump sets
for irrigation reasons.
Below-5 HP pump sets are in high demand due to increased use in small-scale commercial applications.
On the basis of power rating, the below 5 HP category held the greatest value share in the Indian single-cylinder pump set market in 2019. This
is mostly due to the growing use of these pump sets for small-scale commercial applications, as well as irrigation and livestock watering in the
agricultural sector. Due to their high fuel efficiency, diesel pump sets will maintain their dominance throughout the forecast period.
During the projected period, the diesel category is expected to maintain its dominance in the Indian single-cylinder pump set market. This is due
to the great fuel economy of diesel pump sets, as well as lower fuel costs.
Unused Arable Land to Drive Agriculture Category Growth Throughout the Forecast Period
During the projected period, the agriculture sector is expected to have the fastest-growing use of single-cylinder pump sets. This expansion can
be attributed to an increased interest for such pump sets for irrigation and livestock watering. With the country's crop production increasing to
meet food need, the use of pump sets on underused arable land is projected to increase in the coming years, encouraging the expansion of the
Indian single-cylinder pump set market.
Because of their low cost, submersible pumps have seen increased demand. On the basis of pump type, submersible pumps saw increased
demand in 2019.Pump sets With Engine Capacity Less Than 150cc Will Show the Fastest Demand Rise Due to Irrigation Use
Based on engine capacity, the below 150 cc category is expected to have the highest volume CAGR during the forecast period, allowing it to
maintain its market dominance. This is mostly due to the great desire for these engines for pump sets ranging from 3 to 10 HP. These engines are
commonly used in pump sets deployed in agricultural fields for irrigation.
Uttar Pradesh generated the most demand for single-cylinder pump sets in India. Because of the growing demand for these systems in agriculture
and industry, Uttar Pradesh had the biggest demand for single-cylinder pump sets in 2019.

Haryana and Punjab to Showcase the Fastest-Growing Demand

Punjab and Haryana are predicted to have the fastest-growing adoption of single-cylinder pump sets, owing to large-scale agricultural activities
that require groundwater for irrigation. Furthermore, the massive availability of underutilised agricultural land in the two states offers enormous
potential for market expansion in the next years, with pump sets being critical for agriculture.
Benefits and highlights of diesel hybrid system
THE BENEFITS OF SOLAR DIESEL HYBRID SYSTEMS
Reduce diesel costs - In the long run, solar power is significantly cheaper and more predictable than power generated by diesel generators. Quick
ROI - Because of the large savings potential, the investment in a photovoltaic system pays for itself quickly. Reduce your carbon footprint -
Using solar electricity minimises your carbon footprint.
SAVE FUEL AND LOWER YOUR ENERGY COSTS
The majority of the cost of producing energy with diesel generators is due to fuel prices. Oil prices of up to €2.5 per kWh might be estimated,
depending on region. This does not appear to be changing. In the photovoltaics sector, the price trend is substantially more positive. PV system
costs per kWh have plummeted to an average of €0.10 per kWh globally during the last few years. As a result, there is a compelling financial
case for converting nearly every diesel-powered system to a solar/diesel hybrid system. Every kWh of idle diesel saved money.
AN INVESTMENT THAT RETURNS QUICKLY
The combination of diesel generators with PV systems soon pays for itself due to significant fuel cost reductions.
Intelligent technology guarantees that the photovoltaic system and the diesel generator interact optimally. This ensures that as much solar energy
as possible is used and that the diesel generator operates at varied levels of efficiency at the most optimal operating periods.

DESIGN IMPLEMENTATION
Questions:
Q.1. What should be the approach of Mr. Bakshi in the given scenario for the upcoming years?
  Mr. Bakshi's first task is to put together a group of talented engineers who will work on the creation of the aforementioned hybrid
technology.
 Being the market leader gives them an advantage because they have a higher chance of obtaining a loan to fund the R&D of the new
technology if they pledge some of their resources and propose the above-mentioned plan.
 The main USP of the DBE Ltd should be their innovative designs, breakthrough technology, power delivery, and satisfaction from
truckers after using them. In order to be a trusted brand, DBE ltd should provide an overall satisfying experience to its consumers
worldwide.
Q.2. What should be the business plan for the suggested approach for FY 2023?
 The corporation may be divided and organized as a group of companies in FY2023.
 DBE Ltd., for instance, can be divided into DBE Generators, DBE Pumps, DBE Solar, DBE Inverters, etc., all of which can be gathered
under the name DBE Groups Ltd.
 They can diversify themselves. This benefits them in a way that, even if one division lags, the other one works to catch up.
 For instance, if the company receives a request to produce 10,000 PV Smart Hybrid Diesel Gensets, DBE Solar will handle the PV
manufacturing, The manufacture of inverters will be handled by DBE Inverters. Similarly, the works can be divided and conquered in a
much efficient manner which increases the overall reputation and the profit of the company.
Q.3. Elaborate the key actions from the above proposed plan and its implications?
 DBE Ltd should sell diesel engines and related technology to individuals and businesses interested in top quality and trusted diesel
engine brands.
 The target market includes companies that require top-quality design, manufacture, distribution network, service, and related
technologies, including fuel systems, controls, air handling, filtering, emission solutions, and electric power generation systems. 
 The positioning of DBE Ltd should ensure it consistently exceeds expectations. Bringing the best products to market always exceeds
customer expectations.
 Through their consumer-driven modularization strategy, DBE Ltd should be regarded as a manufacturer exceeding consumers’
expectations by providing customized power solutions.
 The business should create a strategic marketing team that actively monitors consumer behavior, promotes the product in line with that
behavior, and aids in the development of customer-satisfying technology by the R&D team.
 For a firm foothold in the market, the business should establish a robust service network and dealerships. It should also offer dependable
after-sales support to win the customers' confidence and dependability. The market for small off-road diesel engines is expected to
 showcase 1.9X growth over the forecast period. Rising emphasis on higher production in agriculture is encouraging the farming
workforce to opt for smaller-horsepower engines. Growing demand for power snowmobiles, boring units, and others is driving the
demand for them in the automotive industry.

Q.4.Watch should be the long term (5 years) strategy for the small engines division of DBE Ltd?
 The company has been unorthodox in its marketing approach. It should contribute 5 percent of its pretax profits each year to a number of
charitable and social service projects, thereby fulfilling its corporate social responsibility in one of many ways.
 The company could see a downfall in market share in first 2 years. But DBE Ltd should not compromise on their product quality and
power. 
 DBE Ltd company should expand its overseas operations by expanding onto the world’s emerging markets through a worldwide network
of 3,000 service outlets and a computerized analysis of 50,000 miles of major highways.
 Throughout good times and bad, DBE Ltd should invest heavily in research.
 The company’s R & D budget should be twice as large as its competitors, at 5 percent of annual sales.
 In Future DBE Ltd should announce numerous joint ventures with foreign manufacturers in Japan, Finland, and USA, so that after a
decade Japanese diesel engine technology will be poured into India.
 Downsized and fuel-efficient small engines providing increased power density have become a replacement for traditional large-
displacement engines. Downsizing enables weight reduction, lower emissions due to less fuel consumption and reduced friction losses
due to lesser swept volume. Modular and downsized engines also reduce manufacturing, purchasing, and maintenance costs.[PTO]