Omdia Watch: How telecom operators can use base station batteries to reduce energy costs?
Omdia Watch: How telecom operators can use base station batteries to reduce energy costs?
March 14, 2024

A new report from market research firm Omdia writes that the intermittency of renewable energy requires additional storage capacity in the grid. Lithium-ion batteries can meet this growing demand. As society becomes increasingly reliant on mobile communications, regulators may require operators to deploy battery storage at cell towers in case of grid outages. Cell site batteries can pay for themselves if operators use them to store power at night (when power is cheap) and release it during the day (when power is expensive). Operators can also generate revenue by providing frequency restoration services to the grid. Finnish telecom operator Elisa has developed a system to monetize cellular base station battery storage and estimates the payback period for lithium-ion energy storage to be between three and five years.


The proportion of electricity generated from renewable resources in the EU has increased from about 20% in 2010 to more than 40% in 2022. The EU aims to reach nearly 70% by 2030 and 80% by 2050. While this is beneficial for reducing greenhouse gas emissions, as the share of renewable energy generation rises, so does the challenge of intermittency. There is no sunshine at night, and there is often no wind for several days. How will grid operators make up the shortfall during these periods of lower renewable energy supply?

One solution is to prepare other power plants to fill the gap. Nuclear power plants are best suited for base load because they cannot be turned on and off easily. Gas turbines can be put into service quickly, however, this produces greenhouse gas emissions. A greener solution would be to store wind and solar energy during times of oversupply (strong sunlight and wind) and release it when power is scarce.



In addition, the Australian government's "Mobile Network Hardening Program" has installed the first 467 base stations in rural and remote areas across the country equipped with power backup capacity to support 12-hour power supply. Meanwhile, further funding to expand the program to additional locations is underway.
Next:
None
Product Catalog