Report: Telecoms investing heavily in distributed energy

Dive Brief:

Fueled by the rapid growth of mobile technologies, the need for higher levels of data and increased reliability, the telecom industry is investing heavily in distributed generation and battery storage.
Companies in the space will spend $3.4 billion on distributed energy solutions by 2024, according to a new report from Navigant Research, up from $2.4 billion this year. A major driver of the growth, the consultancy notes, is the need to prevent interruptions in mobile phone service during potential power outages.
The rise of distributed technologies in the sector is also tied in part to the spread of networks into off-grid areas, especially in parts of Africa and India, where power may be unavailable or unreliable.

Dive Insight:

The rapid growth of mobile networks is helping fuel investment in distributed energy around the globe, according to Navigant Research, especially as data networks extend into previously-remote areas where power supply is unreliable or non-existent.

“In just over three decades, wireless has replaced landlines as the leading form of voice communication worldwide — but the need for additional network infrastructure will nonetheless continue to grow strongly over the next decade as mobile data usage increases by several orders of magnitude,” Richelle Elberg, principal research analyst with Navigant Research, said in a statement.

Solar PV, lithium ion batteries and fuel cells are all technologies being used by telecommunications companies who need to ensure the power remains reliable. As Smart Grid News notes, the majority of older cell towers have older lead-acid batteries for backups, but the industry is in the process of replaxing them. Navigant's research looks at a range of technologies being used by the sector, also including reciprocating gensets (both diesel and natural gas) and complete microgrid-nanogrid solutions.

“Carriers are increasingly looking to DG and new ES solutions to ensure that their networks don’t go down with power outages, to reduce the cost of electricity at tower sites and, notably, to connect previously unconnected remote regions in emerging markets like India and Africa,” Elberg said.