Huawei’s New Digital Power Business for a Sustainable Sri Lanka

On March 28, telecommunications company Huawei Technologies released its annual report for the year 2021. According to the annual report, Huawei’s revenue in 2021 recorded 636.9 billion yuan. Although revenue was down from a year ago, “business performance is in line with expectations,” rotating chairman Guo Ping said. Despite US sanctions in effect for a third year, the company is showing resilience and posted record net profit of 113.7 billion yuan, up 75.9% year on year.

Huawei’s steady performance can be attributed to its diversification strategy over the past two years. Huawei is looking to develop new sources of growth revenue outside base station and handset infrastructure, with cloud business, smart ports, mining business and smart electric vehicles.

Digital Power is one of the fast growing new companies that are of great importance in understanding the future strategy of the company. When the smartphone business takes a hit and the demand for 5G base stations slows down, the company plans to use its strength and experience in digital and power electronics technologies to expand business fields.

Huawei’s Digital Power business is emerging and growing as global society focuses on sustainable development and the proliferation of renewable energy. According to the World Economic Forum, ICT is expected to help other industries reduce their carbon emissions by 12.1 billion tonnes by 2030, including more than 1.8 billion tonnes in the energy sector alone.

In terms of power generation, the International Energy Agency (IEA) predicts that adopting digital technologies could reduce annual power generation costs by US$80 billion between 2016 and 2040, or 5 % of the world’s total cost of electricity production.

In this context, Huawei Digital Power is committed to integrating digital and power electronic technologies, developing clean energy, and enabling the digitalization of energy to drive the energy revolution for a better and greener future. In June 2021, Huawei Digital Power Technologies Co. Ltd. was officially created.

It covers business areas such as Smart PV, Data Center Facility, Site Power Facility, DriveONE, Embedded Power and Integrated Smart Energy. It operates 12 R&D centers around the world and holds more than 1,600 patents (at the end of 2021). With approximately 6,000 employees, 60% of whom are dedicated to R&D, Huawei Digital Power serves one-third of the world’s population in more than 170 countries and regions.

Over the past few years, Huawei Digital Power has helped customers generate 482.9 billion kWh of green energy and save approximately 14.2 billion kWh of electricity. These efforts have resulted in a reduction of almost 230 million tons of CO2 emissions, which is equivalent to the planting of 320 million trees.

In Saudi Arabia, Huawei is providing energy storage and PV solutions for the Red Sea Project, the world’s largest microgrid energy storage project. This project will see the construction of the world’s first city powered solely by PV with energy storage.

Amid rapidly growing global trade, Huawei’s digital powerhouse also sees opportunities in Sri Lanka. In February 2022, the company launched its latest digital power product, Huawei’s Luna2000, the SMART energy storage system, which aims to help achieve sustainable energy goals for the country; to support a stable network and overnight peak demands.

Huawei’s new push holds great potential for power-scarce-hit Sri Lanka. Currently, the island has been suffering from a nationwide power outage since the beginning of 2022.

The situation worsened when the Ukraine crisis pushed up global gas and fuel prices and the Central Bank adopted a floating exchange rate policy, which exacerbated financial losses for CEB and CPC. Huawei’s battery solution in solar energy will be a great complement to the resilience of the solar energy industry.

According to a spokesperson for Huawei Digital Power in Sri Lanka, “Huawei has taken strong steps to focus on the residential and energy storage systems area by cooperating with local resellers and partners to make our products available locally. .

“Our trusted value-added partner will meet residential energy industry requirements, manage service replacement and provide technical support. The first pilot project with LUNA 2000 ESS is successfully commissioned and the first batch is expected to arrive in early April.

Major countries like the United States, China and India have all shared their willingness to support the financing and investment of Sri Lanka’s renewable energy projects. In the long term, the country will strive to achieve carbon neutrality by 2050, and the government has targeted 70% of electricity from renewables by 2030.

Solar energy is also one of the cheapest sources of energy and Sri Lanka has strong solar resources. Thanks to digital technology, the efficiency and security of these new energies will be ensured. The involvement of digital giants like Huawei in the renewable energy sector in Sri Lanka will also strengthen the country’s ability to optimize energy management.