Energy Costs and Telecom Sector
Context:
As the telecom sector in India continues to expand, managing power infrastructure efficiently has become a critical priority.
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- With over 500,000 telecom towers across the country, the financial and environmental costs of powering these structures are significant.
- Among the solutions gaining traction is battery restoration technology, which promises to reduce operational costs and minimise carbon footprints.
Power Challenges
- India ranks among the top three fastest-growing telecom markets globally, with over 1.1 billion mobile connections supported by an extensive network of telecom towers.
- Leading operators such as INDUS, ATC, and BSNL face the dual challenge of ensuring uninterrupted power supply while managing high operational expenses.
- Due to irregular grid supply, telecom towers rely heavily on advanced backup systems, primarily lead-acid batteries.
- However, these batteries require frequent maintenance and replacement, incurring substantial costs for telecom infrastructure companies.
- The financial burden is compounded when diesel generator (DG) sets are used as alternate power sources, given their higher per-unit energy costs and environmental impact.
Case Study: Energy & Fire Tech and Spectra Televentures
Client Challenge: A leading telecom company faced significant cost challenges due to the short lifespan of lead-acid batteries installed in their telecom towers during 2017-2018. The batteries, purchased with a two-year manufacturer warranty, were expected to require 100% replacement after three years. This replacement cycle posed a substantial financial burden.
Proposed Solution: In 2019, Energy & Fire Tech, in partnership with Spectra Televentures, introduced a comprehensive Annual Maintenance Contract (AMC) with extended warranty services. Key features of the solution included:
- Quarterly preventive maintenance performed by skilled engineers.
- Restoration or replacement of weak or faulty batteries.
- Maintenance of spare batteries to ensure uninterrupted operations.
Impact and Results: The AMC initiative began in 2019 and continues to deliver significant benefits:
- Extended Battery Life: The lifespan of lead-acid batteries was increased from 3-4 years to 6-7 years.
- Cost Savings: The extended battery life reduced capital expenditure (CAPEX) by 50%.
- Environmental Benefits: Fewer battery replacements reduced environmental pollution, contributing to sustainability efforts.
This collaborative effort has not only saved costs for the telecom company but also demonstrated the potential of battery restoration to enhance operational efficiency and environmental responsibility.
Financial and Environmental Impact of Lead-Acid Batteries:
- Lead-acid batteries play a vital role in maintaining telecom operations, yet their short lifespan and high maintenance requirements are costly.
- These batteries typically need replacement every three years, adding to capital expenditures.
- Reports by the United Nations Environment Program (UNEP) highlight emissions from lead production, use, disposal, and recycling, totaling 3.6 million tonnes in 2010.
Battery Restoration Technology:
- Battery restoration technology offers a sustainable solution by addressing the premature deterioration of lead-acid batteries.
- Through a process called desulfation, this technology removes lead sulphate crystal build-up, effectively doubling the battery’s lifespan from three to six years.
- Companies like Energy & Fire Tech India Pvt. Ltd., with over a decade of expertise, have rejuvenated over 500,000 batteries, delivering tangible benefits:
- Operational Efficiency: Restoration enhances battery reliability, reducing downtime and premature replacements.
- Cost Savings: Extending battery life significantly cuts replacement expenses, saving large operators crores of rupees.
- Environmental Sustainability: By reducing the demand for new batteries, restoration minimises manufacturing and disposal impacts, lowering the sector’s carbon footprint.
Scaling Battery Restoration:
- With the rollout of 5G infrastructure, the telecom sector’s power demands are set to surge.
- Reports estimate the global 5G infrastructure market will grow at a compound annual growth rate (CAGR) of 22.9% between 2023 and 2030, amplifying the need for reliable and cost-effective power solutions.
- While lithium-ion batteries are increasingly favoured for their superior performance, their higher costs make lead-acid batteries, when restored and optimised, a viable alternative.
- Restoration technology ensures these batteries can meet the growing energy demands of telecom operators without compromising cost efficiency.
Way Forward:
- Battery restoration technology offers telecom companies a practical, cost-effective, and environmentally friendly solution to power management challenges.
- By extending battery life, reducing operational costs, and lowering environmental impact, this technology aligns perfectly with the industry’s sustainability goals.
