Key takeaways - Venture Insights
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
January 2021 | TELCO & ICT Battery backup for telco infrastructure: options and necessity Key takeaways / The 2019-20 bushfire season has renewed the focus on battery backup for telco infrastructure. About 88% of the tower outages were caused by power failure and only 1% were due to direct fire damage. Thus, a better power backup could have significantly improved the emergency response during the bushfires by reducing tower outages. / The development of new and/or improved batteries has been geared towards improving their energy density and reducing their costs. The future batteries such as zinc-air and lithium-air will help telcos become more resilient in the event of an emergency at a fraction of the current cost. However, it is unlikely these future technologies will be available soon, and therefore, the telcos are looking at existing technologies such as lithium-ion and flow batteries for the next bushfire season. / When considering a battery backup solution for a mobile base station, telcos should consider three factors. The capacity of the batteries should such that they are able to provide backup for reasonable times in the event of loss of the primary power source. The reasonable time frame should consider: (1) the criticality of the telco asset, (2) the accessibility of the telco site, and (3) time needed for rectification. / Power outages at customer premises have a varied impact on NBN services depending on the service type. Fibre to the node/basement/curb connections, which make up for a majority of NBN connections (51%), suffer loss of broadband and voice in a local power outage. NBN recommends that customers put together an emergency communications kit, which includes a portable battery pack. / The 5G small cells will present a new challenge with respect to power backup, as there will be a drastic increase in the number of locations where power will be required. Addressing this will raise issues around cost, deployment speed and visual pollution. / The Government’s recent (May 2020) announcement of a $37.1m funding package to strengthen telco resilience incorporates $10m funding from the Mobile Blackspot Program and allocates funding for battery backup solutions. Hence, we expect the Program to increase the focus on batteries and thus improve emergency response, especially in regional areas.
Introduction
Battery technologies such as lead-acid have a long history of being widely deployed as small-scale
commercial back-up energy solutions. More advanced battery technologies, including lithium-ion
are now primed for rapid expansion – far beyond what legacy battery technologies could have
hoped to achieve. The primary use of the batteries is in electricity grids, as increasing volumes of
intermittent wind and solar electricity force governments and grid operators to find ways to stabilise
their networks and consumers look to minimise their power bills using solar power.
There has been a renewed focus on battery backup for telco infrastructure after the recent 2019-20
bushfires in south-east Australia. Bushfires disabled more than 1000 mobile towers and other
facilities in these regions, pressing the federal government to look for new measures to make the
telco infrastructure more resilient.1 These outages prevented people from communicating in
emergency situations, and in several cases, people were unable to pay for essentials as EFTPOS
machines were down. An ACMA report on impacts of bushfire noted that 1,390 facilities were
impacted by bushfires, with 708 experiencing outages for 4+ hours. 2 The Figure below shows the
outage locations and their root causes. About 88% of the outages were caused by power outages
and only 1% were due to direct fire damage. Thus, a better power backup could have significantly
reduced the number of facility outages caused by bushfires and improved the response during
these emergency situations.
Figure 1. Outage incidents by location and cause for outages
SOURCE: ACMA
Relying only on power from grid for telco infrastructure does not guarantee 100% uptime as they
can be impacted by several incidents other than bushfires such as lightning, faulty transformers,
vehicle accidents and rodents. This has led to telcos investing more substantially in battery backup.
In this report, we look at the battery options current and emerging in the market and at battery
requirements for base stations, NBN services and 5G small cells. We also provide an overview of
Mobile Blackspot Program, which has prioritised natural disaster-prone areas including those
affected or prone to bushfires and floods, such as emergency disaster coordination zones, rural
emergency service premises and evacuation points.
1
https://www.smh.com.au/politics/federal/more-than-1000-mobile-towers-and-nodes-went-down-during-the-bushfires-20200430-
p54opo.html
2
Impacts of the 2019–20 bushfires on the telecommunications network, ACMA 2020
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 2Overview of battery options
The Figure below shows the battery storage technologies, along with their strengths and
weaknesses. The brands available in Australia for each technology type has also been shown.
Figure 2. Battery storage overview with brands available in Australia
Type Brands Strengths Weaknesses
Lead-Acid (Pb-acid) Johnson Controls Low-cost Poor energy to weight ratio
battery Exide Technologies Simple manufacturing Slow charging (14-16 h to full charge)
Panasonic High specific power Need to be stored in charged condition
DiaMec Good performance at low and high Limited cycle life
Drypower temperatures Adverse environmental impact
Nickel–Cadmium (Ni– Imergy Rugged, high cycle count Low energy to weight ratio
Cd) Battery Vionx Fast charging Cadmium is a toxic metal and damaging
Renewable Energy Long shelf life and can be stored in to environment
Dynamics Technology a discharged state High self-discharge; needs recharging
Sumitomo Good low temperature after storage
Bosch performance
Dewalt Low cost per cycle
Festool
Hitachi
Makita
Panasonic
Nickel–Metal Hydride Johnson Controls Similar weight to energy ratio as Ni- Limited service life, performance
(Ni–MH) Battery Exide Technologies Cd battery, but without Cd deteriorates after 200-300 cycles
Panasonic Similar design to Ni-Cd battery Longer charge time than the Ni–Cd
Uniden Good low temperature High self-discharge
Sony performance
Sanyo
Motorola
Audioline
Casio
Samsung
Sennheiser
Pelican
Lithium-ion (Li-ion) Tesla High energy densities Degradation at high temperature
battery LG Chem Long cycle and extended shelf-life Charging issues at freezing temperatures
Enphase Maintenance-free Flammable
Samsung Short charging time
Sonnen
Sodium-Sulphur (Na- NGK Insulators in Inexpensive Internal temperature must be kept above
S) battery conjunction with High cycle life 300°C
Tokyo Electric Power Good energy density Combustible when exposed to water
Company Functional over a wide range of Extra cost of constructing the enclosing
conditions (rate, depth of structure to insulate and prevent leakage
discharge, temperature) Stringent operation and maintenance
requirements
Redox Flow Battery Redflow Long service life Complex: requires pumps, sensors,
Primus Power Flexible design containment vessels etc.
Smart Energy Cost-effective power storage Low energy density (energy to weight
Gelion High safety: Can operate under ratio)
Imergy normal temperature and is
Vionx composed of non-combustible
Renewable Energy materials
Dynamics Technology
Sumitomo
VSun
Australian Vanadium
SOURCE: Venture Insights, Battery University (2018)
Note: The list of brands is not exhaustive
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 3The development of new and/or improved batteries has been geared towards improving their
energy density (energy stored per unit volume or mass) and simultaneously reducing their cost.
There is also a focus on avoiding toxic elements such as lead (Pb) and cadmium (Cd) to reduce their
environmental and health impacts.Thus, the aim is to store more energy in smaller space at a smaller
cost in a safer way, making them more feasible for current and future applications. Lithium batteries
now can store two times more energy than Na-S batteries, three times more energy than redox flow
batteries and five times more than lead batteries. The next generation Li-ion batteries will last for
double the time (double energy density) at half the price (see Figure below). The Li-air batteries still
under development have up to six times higher energy density than current Li-ion batteries.
Figure 3. Energy density (energy storage per unit mass) and price of current and future battery technologies
1000
900
Energy density (Wh/kg)
800
Today
700
600
500
400
300
200
100
0
Pb-acid Ni-Cd Ni-MH Li-ion Future Li- Zn-air Li-S Li-air
ion
Price A$/kWh: 350 1000 1000 500reach the site from a service location in the event of power loss, and the time needed for
rectification, plus an allowance for contingency.
The NSW Telco Authority has guidelines for telecommunication DC systems, which includes
recommended minimum autonomy periods to support loads for solar and non-solar batteries
(Figure below). For the sites with solar panels, it is acknowledged that they tend to be in remote
areas and thus they have higher recommended autonomy times.
Figure 4. Recommended autonomy times by NSW Telco Authority
Type of site Recommended autonomy times
Mission Critical Battery (non-solar) Easy Access: 10 hours
(4 hours for mobilisation, 2 hours for rectification, 4 hours margin)
Semi-restricted Access: 16 hours
(10 hours for mobilisation, 2 hours rectification, 4 hours margin)
Restricted: 36 hours
Batteries (solar) Easy Access: 120 hours (no generator)
Semi-restricted Access: 144 hours (no generator)
Restricted: 168 hours (no generator)
Generator backup (optional): fuel for 72 engine hours
Operational Battery (non-solar) Easy Access: 8 hours
(4 hours for mobilisation, 2 hours for rectification, 2 hours margin)
Semi-restricted Access: 12 hours
(8 hours for mobilisation, 2 hours rectification, 2 hours margin)
Restricted: 36 hours
Batteries (solar) Easy Access: 120 hours (no generator)
Semi-restricted Access: 120 hours (no generator)
Restricted: 144 hours (no generator)
Generator backup (optional): fuel for 72 engine hours
Business Battery (non-solar) Easy Access: 3 hours
(2 hours for mobilisation, 1 hour for rectification, 0 hours margin)
Semi-restricted Access: 8 hours
(6 hours for mobilisation, 2 hours rectification, 0 hours margin)
Restricted: 24 hours
Batteries (solar) Easy Access: 96 hours
Semi-restricted Access: 120 hours
Restricted: 144 hours
Generator backup (optional): fuel for 72 engine hours
Information Battery (non-solar) Easy Access: 0 hours
Semi-restricted Access: Determined by customer
Restricted: Determined by customer
Batteries (solar) Easy Access: 96 hours
Semi-restricted Access: 96 hours
Restricted: 120 hours
Generator backup (optional): fuel for 72 engine hours
SOURCE: Guidelines for Telecommunication DC Systems, NSW Telco Authority, 2017
In the Figure above, Easy Access refers to a site that has good all-weather access with right of way.
Semi-restricted Access refers to a site that has 4WD dry weather access or a site that is likely to be
cut off during weather or disaster events or a site that is greater than 4 hours driving time away.
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 5Finally, a Restricted Access site refers to a site where access is required by extraordinary means such
as helicopter, snow-mobile, or walking in excess of 30 minutes. Mission Critical is critical for
emergency response and management and may impact lives, Operational are critical to performing
daily operational tasks and not life threatening, Business is related to business or administrative
activities, and Information provides useful but not critical information for mobile unit daily tasks.
Do NBN services need battery backup?
The short answer is yes. Power outages at customer premises have a varied impact on NBN services
depending on the service type. See the Figure below for what happens when there is a power
outage at the premises, assuming NBN’s usual power supply arrangements are still operational. In
general, the service becomes unavailable, unless a back-up power unit (that is independent of NBN
infrastructure such as UPS) is installed.
Figure 5. Impact of power outage on NBN services
Technology type Proportion of all When there is a power outage
premises connected (%,
as of June 2020)
Fibre to the premises 17% • Loss of broadband and voice
(FTTP) • It is possible to purchase a battery backup from the RSP (5
hours backup) – but this will not cover the physical phone
device.
• Battery back-up is required for all Priority Assistance
customers who suffer from a life-threatening illness
Fibre to the 53% • Loss of broadband and voice in the event of a power outage
node/basement/curb within the Fibre to the N/B/C network or at the premises
(FTTN/B/C)
Hybrid fibre coaxial 21% • Loss of broadband and voice in the event of a power outage
(HFC) within the HFC network or at the premises.
Fixed Wireless 5% • Loss of broadband and voice in the event of a power outage
(FW) at the FW tower fibre network or at the premises.
• If the premise is located within a Fixed Wireless area,
consumer has the option of keeping the existing landline
phone service active across the copper network.
Sky Muster Satellite 4% • Loss of broadband service in the event of a power outage at
your premises. Alternative battery solution will allow
reconnection
• If one of the nbn™ Sky Muster™ satellite ground stations is
also experiencing a power loss, there may be further delays
in reconnecting the service
• If the premise is located within a NBN satellite area, consumer
has the option of keeping the existing landline phone service
active across the copper network
SOURCE: Productivity Commission Inquiry Report, Telecommunications Universal Service Obligation 2017, NBN FY update 2020
This is different to the old telephone services, where copper lines could be used to power basic
telephone that did not require a connection to mains power. Note that for premises within the Fixed
Wireless or NBN Satellite areas, consumers have the option of keeping the existing landline phone
service active across the copper network.
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 6Recognising the above power limitations of the NBN technology to function during black-outs, NBN
has recommended that customers put together an emergency communications kit which includes
a charged mobile phone, portable battery pack and a battery powered radio.
Battery backup for 5G small cells
A majority of 5G cells currently being installed in Australia are macro cells, where a site is carefully
planned for power options, including backup. The deployment of 5G small cells will drastically
increase the number of locations where power will be required, as these cells will be separated by
just 200-500 metre distances. A single small cell site may need between 200-2000 W of power to
cover three sectors and multiple frequency bands. 3 Thus, the MNOs need an efficient and
economical way to power their small cells and prepare for outages. Additionally, as the future use
cases of 5G emerge, including the critical use cases around security and transportation, the need
for battery and other backup options will become critical.
There are several existing options available to power small cells. Three of these have been
mentioned below that allow for battery backups.
1. Power from the grid. This is a common option for macro cell sites but becomes slightly less
attractive for small cell sites as it requires extensive planning and project management. It
allows for both distributed and centralised battery backups. Each site can be equipped with
a battery, but there may be challenges due to space constraints especially in urban areas
with tough planning regulations.
2. Twisted pair. It uses the legacy copper network as they can carry power. It enables re-using
existing copper plant but provides limited power and suffers from high losses. It has been
used in DSL deployments in some regions of Italy and Argentina and allows for a centralised
battery backup.
3. Distributed power connectivity. This approach being developed by CommScope4 uses
hybrid fibre cabling to deliver power from a centralised location taking advantage of
improvements in hybrid fibre cabling and dc power delivery. It allows for a centralised
battery backup option.
We note that centralised backups may become increasingly more attractive as they can be more
economical, offer faster deployment speeds and reduce clutter at the small cell sites. Further, we
expect that a combination of above power options will be used during deployment of small cells in
Australia and across the globe. There are also other options for powering small cells that include
Hybrid Fibre Coaxial (used by cable TV industry) and PoE (power over ethernet).
Australian Government Mobile Blackspot Programs
The latest round of the Mobile Blackspot Program has an emphasis on natural disaster-prone areas
including those affected or prone to bushfires. We also note that the Government’s 12 May 2020
announcement of a $37.1 million funding package to strengthen telecommunications resilience in
bushfire and disaster-prone areas incorporates $10 million funding from the Mobile Blackspot
3
White paper on Powering the future of small cells and beyond, Commscope
4
https://www.eeworldonline.com/powering-small-cells-for-a-smooth-5g-deployment/
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 7Program and also allocates funding for battery backup solutions from Rounds 1 and 2 of the Mobile
Blackspot Program. Hence, we expect the Program to increase the focus on batteries and thus
improve emergency response, especially in regional areas. Below we provide a brief overview of
the Mobile Blackspot Program in Australia.
To address mobile blackspots in regional locations, the Australian Government commenced a
series of mobile blackspot rounds - commencing in December 2014. Since then, there have been
five rounds of blackspots resulting in 1,229 new base stations across Australia with $254 million of
federal government funds and a total investment of $8365 million across the Government, states,
MNOs and some local councils.
In March 20196, the Government announced $160 million of funds to eliminate more mobile black
spots across two funding rounds (5 & 6). Rounds 5 & 6 have a strong focus on improving mobile
coverage at Public Interest Premises which benefit the community such as medical facilities, schools
and economic centres.
In April 2020, the Government announced the results of the Round 5 competitive assessment
process. Of the $80 million federal funding available, the Government contributed $34 million and
announced that total new investment was in excess of $73 million with co-contributions from the
funding recipients and state governments.
Over the five rounds, Telstra’s build commitment of 894 new base stations represents 73% of the
1,229 total base stations with Optus committing 21% and Vodafone 6% - see Figure below.
Figure 6. Total Base Stations Across Rounds 1 – 5
Total base stations Telstra Optus Vodafone Total
Round 1 429 0 70 499
Round 2 148 114 4 266
Round 3 89 12 1 102
Round 4 131 49 0 180
Round 5 97 83 0 182*
Total 894 258 75 1,229
% of Total 73% 21% 6%
SOURCE: Vodafone Australia, Department of Communications
Note: * Two base stations for FSG
In terms of investment, Venture Insights estimates that Telstra has invested more than 35% of the
total program funding across the five rounds with Optus at 9% and Vodafone at 2% (see Figure
below).
Figure 7. Total Base Station funding after Round 5
Total Funding Telstra Optus* Vodafone Government States* Total
($M)
After Round 5 $290+ $75 $20 $254 $191+ $836
Source: Venture Insights, Department of Communications, Telstra, Optus & Vodafone
Notes: * Optus and States funding based on public reports and Venture Insights analysis
5
https://www.communications.gov.au/what-we-do/phone/mobile-services-and-coverage/mobile-black-spot-program
6
https://www.minister.communications.gov.au/minister/bridget-mckenzie/news/160-million-eliminate-more-mobile-black-spots
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 8Based on the above Figure, the Government and States are funding more than 53% on average of
all blackspot sites at an average cost of $680k per blackspot site – however we note that this also
contains small cells hence the average cost for macro sites would be higher.
Mobile Black Spot Program Round 5A
The Government notes that the results of Round 5 (where only $34 million was allocated out of a
total of $80 million), which suggests that future rounds are likely to see fewer sites being funded
given the design of the previous rounds. In November 2020, the Government indicated that up to
$34.5 million will be available for round 5A. This round includes a focus on improving mobile
connectivity along major transport corridors and in disaster-prone regions, such as bushfire-prone
areas, as well as the testing of new technologies that support shared mobile coverage in regional
areas.
If Round 5A is successful, these priority areas may also apply to Round 6. The Government has
committed $80 million for Round 6 of the Program.
Conclusions
Battery technology has come a long way. As the batteries are becoming smarter, better, and
cheaper, they are proving to be increasingly reliable, effective, and economical power backup
option for telco infrastructure. There has been a renewed focus on battery backup for telco
infrastructure after the 2019-20 bushfires in south-east Australia, which took out more than 1000
mobile towers and other facilities, and in the recent rounds of the Mobile Blackspot Program.
For mobile base stations, the batteries should be able to provide backup for reasonable times in
the event of loss of the primary power source, where the reasonable time depends on criticality of
the telco asset, accessibility of the telco site and time needed to reach the site from a service
location.
We note that the NBN services, which are critical to emergency response especially in regional
areas, also need battery backup. The 5G small cells present a new challenge with respect to primary
power and power backup, as there will be a drastic increase in the number of locations where power
will be required.
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
© 2021 Venture Insights Pty Ltd. All rights reserved
Page 9About Venture Insights
Venture Insights is an independent company providing research
services to companies across the media, telco and tech sectors in
Australia, NZ and Europe, with a special focus on new disruptive
technologies.
For more information go to www.ventureinsights.com.au or
contact us at info@ventureinsights.com.au
Important notice: By accepting this research note, the recipient agrees to be bound by the following terms of use. This research note has
been prepared by Venture Insights Pty Ltd and published solely for guidance and general informational purposes to authorised users under
the terms of a licence agreement between Venture Insights Pty Ltd and its subscriber. You need to be expressly authorised to use it, and it
may only be used for your internal business purposes and no part of this note may be reproduced or distributed in any manner including,
but not limited to, via the internet, without the prior permission of Venture Insights Pty Ltd. If you have not received this note directly from
Venture Insights Pty Ltd, your receipt is unauthorised. If so, or you have any doubt as to your authority to use it, please return this note to
Venture Insights immediately.
This research note may contain the personal opinions of research analysts based on research undertaken. This note has no regard to any
specific recipient, including but not limited to any specific investment objectives, and should not be relied on by any recipient for investment
or any other purposes. Venture Insights Pty Ltd gives no undertaking to provide the recipient with access to any additional information or to
update or keep current any information or opinions contained herein. The information and any opinions contained herein are based on
sources believed to be reliable but the information relied on has not been independently verified. Neither Venture Insights Pty Ltd nor its
officers, employees and agents make any warranties or representations, express or implied, as to the accuracy or completeness of
information and opinions contained herein and exclude all liability to the fullest extent permitted by law for any direct or indirect loss or
damage or any other costs or expenses of any kind which may arise directly or indirectly out of the use of this note, including but not limited
to anything caused by any viruses or any failures in computer transmission.
Any trade marks, copyright works, logos or devices used in this report are the property of their respective owners and are used for
illustrative purposes only. Unless otherwise disclosed, Venture Insights has no affiliation or connection with any organisations mentioned in
this report. However, the information contained in this report has been obtained from a variety of sources, including in some cases the
organisations themselves. In addition, organisations mentioned in this report may be clients of Venture Insights.
The recipient hereby indemnifies Venture Insights Pty Ltd and its officers, employees and agents and their related entities against any direct
or indirect loss or damage or any other costs or expenses of any kind which they may incur directly or indirectly as a result of the recipient’s
use of this note.
© 2021 Venture Insights Pty Ltd. All rights reserved
Level 8
Nitish Kumar, PhD 333 George Street
nitish.kumar@ventureinsights.com.au Sydney, NSW 2000
Level 6
David Kennedy 90 Collins Street
Melbourne, VIC 3000
david.kennedy@ventureinsights.com.au
210108 Battery backup IMPORTANT DISCLOSURES ARE PROVIDED AT THE END OF THIS REPORT
Page 10
© 2021 Venture Insights Pty Ltd. All rights reserved www.ventureinsights.com.auYou can also read
