Amid growing pressure to optimize costs, dependability, and green initiatives, some power companies are beginning to reconsider their approaches to upgrading dated equipment. Refurbished elements provide a viable option to realize these objectives, enabling companies to address the challenges of power plant maintenance and upgrade.
All plants need to be updated at some point in time. In the past, most companies have procured fresh components to replace old systems that have become outdated. However, power plants can now opt to upgrade their control systems with the use of refurbished laptops and desktops, saving on costs. This article examines the advantages and disadvantages of refurbished technology and provides key items to consider when making upgrade decisions.
Pros of Using Refurbished Parts
The use of refurbished parts has several advantages for power companies, making it an attractive proposition for system refurbishment. Here are some of the primary advantages:
- Cost Savings. Reportedly, the secondhand market enables buyers to obtain refurbished consumer electronics at an average selling price that is 40% to 60% lower than their new versions. The most important imperative to using refurbished parts is deflationary, more commonly referred to as the cost aspect. Original equipment and spare parts, particularly for massive components such as turbines, generators, and transformers in power plants, are known to be very costly. While new parts are usually expensive, refurbished components are usually much cheaper. For example, a refurbished transformer could cost a company half of the price of a new one; that money can then be invested in different sectors.
- Reduced Lead Times. Power plants require exact timing to carry out their operations, especially when it comes to unit breakdown or maintenance. New parts, especially those that are ordered, usually take a long time, especially when they are different from standard parts. Original manufactured products usually take time to arrive compared to refurbished parts needed to undergo reconditioning. This may prove to be critical in the efforts to reduce intervals of machine inactivity and ensure plants are up and running.
- Sustainability and Environmental Impact. Due to increasing consciousness of the impacts of power companies on the environment, these companies are searching for directions to cut their impacts. This goal is timely since refurbished parts lower the call for new manufacturing processes from original materials and energy. When material components are recycled or reused on multiple occasions, the overall carbon footprint of the company is reduced, and there is enhanced sustainability as the cycle of resource utilization is increased, thus exemplifying the meaning of the term circular economy.
Cons of Using Refurbished Parts
Refurbished technology is often associated with numerous perks; however, it is also accompanied by a set of cons that must be considered to help you decide on a path forward. Here are some of the primary disadvantages:
- Limited Warranty Coverage. One disadvantage of refurbished parts is that most of them have a shorter warranty compared to new ones, or no warranty at all. This can be seen as a possible source of uncertainty, more so in the case of important systems that require a many-year guarantee. Some power companies may have to consider the additional cost that might be required to replace the component in the future once the warranty time is over.
- Potential for Early Failure. One cannot guarantee that the refurbished parts will not have defects because they are used spare parts that have undergone a reconditioning process. This means there is likely to be earlier degradation, especially if the refurbishing was not well conducted. Companies have to avoid this risk by sourcing refurbishment products from appropriate vendors who offer high-quality service.
- Supply Chain Dependence. The availability of refurbished parts depends on the supply chain of used parts. At times, the required part might be rare to find; hence, it takes some time before it is sourced, or the manufacturer is compelled to buy a whole component. Dependence on a secondary market also creates certain volatility as to the time frame of the project.
Balancing the Pros and Cons: Is Refurbished Technology the Right Choice?
The final decision on whether refurbished parts should be incorporated into a power plant upgrade depends more on the requirements of the company or entity and the current state of the parts being used. The reduction in costs, lead times, and sustainability factors make refurbished technology an attractive proposition for some organizations, but this is full of risks, especially concerning compatibility and stability over the long term.
Key Considerations for Power Companies
When deciding whether to use refurbished parts, power companies should take several factors into account:
- Vendor Reputation. The refurbishing vendor must be reliable to provide quality and dependable parts; hence, the refurbishing vendor must be credible. Companies should also seek a vendor that provides elaborate testing and certification procedures.
- Critical Vs. Non-Critical Systems. Refurbishing may be useful to the second degree as part of a third- or fourth-tier system where minor system failures may not result in critical system or safety failure.
- Total Cost of Ownership. Managers and decision-makers in the supply chain of production organizations should not only look for the short-term gain of getting cheaper used components but also consider the other hidden costs of sustenance, repairs, subsequent replacements, and possible failures that may come with the deal.
As the entire realm of power companies is emphasizing more toward sustainability and affordability, using refurbished parts for the entire plant system upgrades forms the main strategy. Such elements offer notable savings while boosting the reliability of the system and reducing the carbon footprint toward the production of energy.
—This article was contributed to POWER by Pure IT Refurbished, which is a trading name of Pure IT Recycling Ltd.
