The buzz about lithium-ion batteries

Almost 300 years since the discovery of electricity, 65 million of Southeast Asia’s population still goes without access to the electrical grid. At nightfall, millions continue to burn firewood to heat their homes and light up the darkness. The lack of energy presents a barrier to the region, holding back progress on many levels such as food security, health, education, work and poverty reduction. Yet the next frontier in Southeast Asia’s efforts to sustainably and efficiently power its communities – rural and urban – is already within reach: lithium-ion batteries.

For most, lithium-ion batteries are a silent, but ubiquitous feature of modern-day living. Average consumers are most familiar with these small battery packs as the power source for everyday appliances, from laptops to the television remote control.

Electrical grids and generators have superseded batteries as the main source of electricity and power distribution in the last century. However, in recent years, technological advances have allowed batteries to address enduring energy and development problems in Southeast Asia, in ways that grids and generators are unable to.

Off the grid and in the dark
Traditionally, extending the main electrical grid gives communities access to electricity, but this is challenging for households in disparate and isolated areas. These areas suffer from a lack of power infrastructure, and the logistics involved with building power generation and distribution infrastructure can amount to a hefty sum. The difficulty rises exponentially for Southeast Asia’s communities, which are scattered across thousands of islands.

Now, lithium-ion batteries are becoming the force behind solutions that aim to electrify these remote communities. Between 2018 and 2027, Southeast Asia is expected to invest $9.8b in smart grid infrastructure. Modern microgrids provide power to areas where extending the existing grid is geographically or economically unfeasible. They comprise larger, stationary energy storage batteries that can accommodate the integration of local energy resources such as diesel with newer, sustainable energy sources like hydropower, solar and wind renewables. Increasingly, these energy storage batteries are made of lithium-ion.

Lithium-ion batteries are a significant progression in battery technology, which for decades has been dominated by valve-regulated lead-acid batteries. Its superior energy density makes it beneficial for electric vehicles and portable electronics, whilst stationary energy storage batteries become easier to transport, deploy and install in rural areas.

Energy storage batteries are essential for microgrids and portable solar energy systems because the production of renewable sources is subject to weather and environmental conditions. Renewable energy is volatile and hard to accurately predict, resulting in challenges with maintaining a steady power supply. The batteries store solar energy that is harnessed in the day, and returns the necessary supply to the microgrid during periods of low energy generation, such as when a cloud passes over the solar power panel. It is also a temporary source of energy during short duration blackouts.

The energy unserved often reside within poorer communities that struggle with the initial cost of installation for microgrids and renewable energy infrastructure. While lithium-ion batteries have a higher initial cost, they are less vulnerable to damage and discharge energy at better rates than lead-acid batteries. Where the latter needs to be replaced every three to four years, lithium-ion batteries offer a lifespan of up to 15 years.

Implemented with renewable energy sources, lithium-ion batteries give communities a reliable, sustainable energy source that requires less maintenance, and that is more affordable in the long run.

Beyond microgrids, energy storage batteries also have other applications. Disaster-prone areas often find themselves out of power in the wake of a natural disaster. In such situations, lithium-ion batteries in cars provide a source of power that can be tapped on to run smaller, emergency appliances.

Energy-aware smart cities
Even urban cities may find that functioning power infrastructure is now no longer sufficient as they need to brace themselves for rising energy demands. Singapore recently launched a second public consultation to discuss regulatory frameworks for 5G, as the region looks to roll out the next-generation network in 2020.

Whilst 5G will unlock the full potential of compute-intensive technologies such as the Internet of Things, it will also push service requirements and network capacities to the limit. Network carriers will need to look into upping mains supply capacity and streamlining power distribution and cooling.

As is, countries in the region already have huge energy guzzlers in data centres. A study by the Asian Development Bank found that in 2017, Indonesia used up to 3% of all electricity capacity to keep its data centres running, constricting already-tight supply capacities across the country. Similarly, Singapore foresees data centres will consume up to 12% of the country’s total energy demand by 2030.

Data centres already deploy uninterruptible power supply (UPS) systems to safeguard against potentially damaging power anomalies. UPSs serve as vital battery backup to ensure business continuity during a blackout or unexpected power outage.

The adoption of lithium-ion batteries paves the way for advanced data centre UPSs. Previously an underutilised back-up resource, UPSs can now perform the added benefit of supporting the grid as a distributed energy resource. Lithium-powered UPSs are being transformed into a storage device, allowing operators to respond to grid-level demands with battery power to keep frequencies stable. The data centre chooses how much capacity to offer to the grid and when, and benefits through additional revenue generated through a feed-in tariff.

Parallel to the use of car batteries as an energy source in rural communities, we are now witnessing the rise of vehicle-to-grid (V2G) technology. As more cities implement the necessary power infrastructure to support electric vehicles, V2G technology will allow electric vehicles such as the Nissan Leaf to store power in the car’s lithium-ion batteries, and send it back to the grid in times of need.

Lighting up the future with lithium-ion
The costs of lithium-ion battery packs have plummeted by 90% in just 10 years. Its affordability sets it up well to replace lead-acid batteries and achieve widespread adoption. With multiple benefits such as a longer lifecycle and better sustainability, lithium-ion batteries can truly light up Southeast Asia’s energy-poor households sustainably and optimise energy usage. By providing power to make what matters work, these batteries can make a positive impact in driving the region’s economic growth and digital transformation.