Nokia Entices Operators with Tower Backup Battery Revenue Stream

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In the form of tower battery backup storage called Virtual Power Plant (VPP) Controller, Nokia (NYSE: NOK) is waving the proverbial carrot in front of mobile network operators. The Register reported that the telecoms infrastructure company says, “the tool can switch cell base stations from grid power to backup batteries at times of peak demand to lower energy costs.” The more significant benefit is the tool’s ability to return energy to the grid, generating revenue for the operator.

The sales pitch goes something like this: VPP creates “a new purpose and function” to monetize base station backup battery storage by switching from grid power to the backup battery option. This toggle allows operators to lower energy costs by swapping to the battery option when electricity pricing hits a predetermined premium.

Additionally, operators in countries with a power reserve market can draw energy from the base station instead of using grid energy. Benefits are intended to include avoiding power cuts and reducing the overall CO2 footprint.

VPP uses Li-ion batteries, and Nokia claims the software can estimate the amount of extra battery backup capacity available. The software relies on machine learning to create “smart” offerings.

Nokia has completed several tests of the VPP Controller and plans to release it later this year, reported The Register.

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