EnerSys: Why lead-acid batteries meet the energy storage requirements of >90% of African cell sites

EnerSys®, innovators behind Li-Ion, Vanadium Redox and Sodium Sulphur energy storage, make the case for continuing use of lead-acid batteries in Africa. As leaders in energy storage, they are providing Li-Ion, Ni-Cad and developing Nickel-Zinc energy storage solutions, and moving up the value chain to provide cabinets and even complete solar solutions, but the core of their business in SSA remains provision of lead-acid energy storage components.

TowerXchange: What role does EnerSys play in the telecoms infrastructure ecosystem?

EnerSys is a leading energy storage supplier, known for providing high quality and good nerSys is a leading energy storage supplier, known for providing high quality solutions and good service throughout the value chain. EnerSys operates in both Original Equipment Manufacturer and end user channels and in order to move up the value chain. This strategy is the most advanced in Africa, where we provide much of the infrastructure around batteries including cabinets, controllers, and services. Through the acquisition of Purcell Systems, EnerSys has enhanced its offerings in cabinet enclosures and in line with our growth strategy.

elecoms is a very important market to EnerSys and in particular in Africa. We still have a strong battery business across Africa which we sell into variety of telecom applications. EnerSys has a strong footprint in South Africa where we have been operating since 2011. It’s a total solutions business and we look after clients in the telecoms, mining and material handling segments.

n the power solution sector, we offer complete outdoor and indoor cabinet solutions as well as batteries for standby, cyclic and hybrid applications, depending on the needs of the customer. We also supply solar solutions. EnerSys is a complete integrator of DC power, solar solutions, line conditioning and voltage regulators, and we supply direct to MNOs, towercos and to integrators.

TowerXchange: Can you give us more insight into the relative merits of lead-acid, lithium, sodium and vanadium redox energy storage solutions?

It’s important to not minimise role of lead-acid batteries in telecoms. With the energy storage applications at unreliable and off-grid sites, there are a limited number of proven energy storage technologies. While there are a few trials of new solutions with different capabilities, we are yet to see too many of these evolving energy storage technologies being rolled out in high volumes. They are generally challenging for telecom applications in both terms of initial investment but also in recovering the OPEX savings targeted.

There are various ways of storing energy, and the choice of solution depends on the application.

I agree with Wouter, selecting the right energy storage chemistry is related to the application. In the telecom space we see mostly Li-Ion players being active but it seems that Li-Ion is mostly viable in applications where space and/ or weight restrictions exist. In other markets like utilities and renewable we see other technologies too but it’s too early to say which one will be the possible break-through one. The important thing to remember is that today more than 90% of the energy storage requirements of African cell sites can be fulfilled with lead acid batteries. This is due the combination of cost efficient, reliable and field-proven technology.

Nonetheless we remain very open minded when looking at alternative chemistries for energy storage. EnerSys is in a unique position in that we have a wide technology portfolio. Beyond lead-acid batteries - we provide Li-Ion and Ni-Cad batteriesand developing Nickel-Zinc and other energy storage solutions. Beside the telecom industry, we have experience of energy storage applications from multiple industries.

TowerXchange: Is there still a clear benefit of lead-acid over alternate energy storage chemistries?

The reason lead-acid batteries are so widely used is that they are well known, proven and reliable and still very cost efficient compared to other energy storage solutions available in the market today. New energy storage technologies may propose different cyclic efficiencies, but it’s more difficult to prove the case in terms of CAPEX and OPEX. We still see the majority of cell site energy storage solutions being lead-acid based because it’s a good product and it’s working. It’s important to remember that lead-acid is not a static technology, it is being improved all the time.

EnerSys’ advanced lead technology (TPPL = Thin Plate Pure Lead) is a good example of this; more power/cycles/life/power density to offer even better Total Cost of Ownership. TPPL can offer a 50-60% reduction in operating expenditure compared to sites running diesel gensets 24/7.

Most MNOs and towercos are looking at Total Cost of Ownership (TCO) over three to five year scenarios, depending on the application of the energy storage product, and we see lead-acid as having superior TCO over those periods.

TowerXchange: What impact has the entry of towercos into Africa had on your business?

The towercos are playing a big role in the deployment of CAPEX into batteries and power systems. Towercos’ first step isn’t always to exchange batteries at newly acquired sites; they tend to optimise AC power first - DC often comes later. The impact on our business depends significantly on the towerco’s arrangement with their tenants, and whether responsibility for power is passed through or if it’s shifted to the towerco. Towercos have a big focus on opex savings.

Under towercos’ SLAs, energy opex savings are often money in their pocket, which means they have a much bigger focus on the payback and what they can save at the end of the day.

TowerXchange: What’s the balance of EnerSys order book between standby power solutions, backup generators and cyclic batteries for very unreliable grid, off-grid and hybrid solutions, and how is that changing as awareness of renewables increases?

Again, the selection of energy storage solution depends on the application, in particular on grid availability. At a cell site on a stable grid you would use standby power or battery instead of a cyclic battery. If the site has more than ten grid power interruptions per month you might use TPPL technology to enable more cycles.

Where you have sites burning a lot of diesel through backup generators, you might want to implement delayed start scenarios, where you use a percentage of battery storage capacity to do some cycles and save OPEX. Demand for cyclic batteries varies from country to country. There’s definitely a shift from standby to cyclic batteries, driven by growing awareness of solar and the falling price of PV panels over the last five years, reducing payback periods. Whereas perhaps 20% of our energy storage solutions are deployed to solar sites in South Africa, that figure might be 30-40% in certain African countries – it depends where we’re selling.

TowerXchange: How does EnerSys integrate your offerings with your customers’ supply chains and maintenance processes? Is any M2M monitoring capability built in?

We have various monitoring capabilities to look after health of batteries and storage. Everyone is monitoring their energy storage solution to measure the savings they are making. Some clients use our built-in monitoring systems, others integrate with independent remote monitoring solutions - the approach varies from MNO to MNO or towerco to towerco.

M2M infrastructure is developing fast which means more offerings available with increased functionalities. EnerSys is following this market’s development and maturation since good monitoring and communication of Energy Storage usage could be additional benefit to our customers to develop their processes to cut cost, plan maintenance et cetera.

TowerXchange: One of the problems with he pervasiveness of 12v lead-acid batteries is that they can be used in domestic and small business environments, creating a black market for stolen batteries. What can battery manufacturers do to help combat theft?

There are several initiatives we’re taking which unfortunately we can’t talk about in a publication as we could tip off thieves! But you’re right to note that there is a black market for standard 12v batteries. What I can say is that we just recently launched anti-theft connector kit that significantly slows down or even prevents thieves from getting batteries out of the cabinet. It’s definitely worth of asking more details regarding these solutions to protect your asset.

Aditionally is worth to mention that cell sites built with12v batteries, each of which a thief can sell to use in a neighbor’s truck or solar system, are at risk of theft. One simple step operators and towercos can take is to use for example 2V cells instead. SBS EON Technology is now extended into 2V design so customers can benefit from the unique SBS EON technology but also reduce the interest for thieves: stealing one or two cells is pointless.

TowerXchange: Finally, please sum up how you would differentiate EnerSys from other energy storage and backup power solution providers?

A critical differentiator is the quality designed into the product and processes and consistency of EnerSys’s manufacturing process and availability of various battery technologies in the PowerSafe family such as, free vented, AGM, GEL, TPPL (Thin Plate Pure Lead) such as SBS Eon and others. This linked to our extensive knowledge in various applications allows us to define the offering with best value to our customers. Obviously our commitment to the African market to ensure we have the right product to meet MNOs and towercos’ needs and to ensuring we have the necessary stock is important. Availability of product is one of the key differentiator when working with a market leader like EnerSys - who has more than thirty factories globally, we can offer the battery technology required, and our clients are not dependent on single source of supply. Finally I would mention EnerSys organisation and financial capability to support our customer even in largest projects and roll-outs