Huawei’s advanced energy storage system a timely solution for Bangladesh

Huawei has officially launched an advanced energy storage system (ESS) for Bangladesh's commercial and industrial sector.

In an interview with The Business Standard's Rafiqul Islam, Will Yu, managing director of Huawei South Asia Digital Power, discussed the benefits of energy storage systems and how the technology could support Bangladesh's industrial sector.

Could you share your assessment of the current global energy scenario?

Globally, energy generation has traditionally depended on coal and oil. However, renewable energy — especially solar and wind — has become increasingly competitive due to technological advancements and wider adoption.

Previously, the cost of electricity from solar was higher than coal or diesel-based power. But around 2017 and 2018, the cost per kilowatt-hour of solar energy reached a level comparable to coal and fossil fuels.

From around 2022, the cost of solar combined with energy storage systems has become almost equivalent to conventional fuel-based generation, and the price will continue going down.

What is the current cost of battery storage per kilowatt-hour?

The exact cost differs from country to country.

Many factories in Bangladesh, particularly in the RMG sector, still rely on diesel generators during load shedding. Based on our calculations, using diesel generators for electricity supply costs nearly 30 US cents per kilowatt-hour. In comparison, solar combined with ESS can reduce the cost to below 20 cents per kilowatt-hour.

57% of power demand comes from households. Are there small-scale solutions for households, such as solar home systems between 1 and 5 kilowatts?

Huawei is primarily a solution provider. Our key products include inverters, which convert DC electricity into AC electricity, and energy storage systems.

We have a broad product portfolio ranging from residential to commercial and utility-scale applications. For residential users, we offer inverters from 5kW to 6kW and a 7kWh residential ESS solution. Up to three battery units can be combined to create a 21kWh system.

However, we are not yet ready to launch these residential solutions in the Bangladesh market.

Can you give an estimate of ESS costs per kilowatt-hour?

The cost varies significantly depending on the scale of the project. For example, a utility-scale 1GW project will have a much lower cost compared to a residential installation.

Battery prices also fluctuate frequently because global demand for EV batteries is rising rapidly.

Do you think renewable energy solutions are financially viable for Bangladesh?

I believe renewable energy, including solar and ESS, is highly suitable for Bangladesh.

The government has already set ambitious renewable energy targets — 20% of total energy from renewable sources by 2030 and 30% by 2040. Achieving these targets will require installing around 20GW of solar power capacity.

This presents a major opportunity for Bangladesh. ESS technology will also play a very important role.

Huawei has invested heavily in research on grid-forming technology. Previously, most ESS solutions used "grid-following" technology, meaning they could not actively support the grid.

With grid-forming technology, ESS can provide voltage support, frequency support and phase angle support, helping stabilise the electricity network.

There are also practical advantages over diesel generators during load shedding.

Diesel generators usually require five to 10 seconds to start after a power outage. During that period, lights go off and industrial machinery may be disrupted or damaged.

By contrast, ESS systems using grid-forming technology can switch within 20 milliseconds. In many cases, users do not even notice the transition during a power interruption.

The electricity supplied by ESS is also of higher quality because the system can regulate voltage more effectively.

Would you advise entrepreneurs to combine solar and ESS solutions instead of relying on diesel generators?

Solar and ESS solutions can be applied in many different business scenarios.

If a factory or building has sufficient rooftop space, it can install enough solar panels and ESS capacity to run entirely on renewable energy around the clock.

If solar generation cannot fully meet demand, ESS can still provide major benefits. For example, solar may cover 50% of electricity demand, while the remaining power can come from the grid.

Even without solar, ESS alone can be used as a backup solution. The batteries can charge from the grid and discharge during outages, effectively replacing diesel generators.

In Bangladesh, load shedding in some areas can last four to five hours, making ESS particularly valuable.

Is the initial investment relatively high?

Initially, diesel generators may appear cheaper in terms of capital expenditure.

However, after installation, businesses must continuously spend money on fuel and maintenance. Our calculations show that operating a 1,000kVA diesel generator in Bangladesh requires around $62,000 annually for fuel, plus another $12,000 per year for maintenance.

Over 15 to 20 years, these recurring costs become very significant.

With ESS, the major cost is the initial investment. After installation, yearly operating costs remain relatively stable and much lower.

Under current conditions in Bangladesh, if a factory experiences more than two hours of load shedding per day and replaces diesel generation with ESS, the return on investment can be achieved within three to five years.

Another important factor is carbon emission. Bangladesh's textile and RMG industries increasingly require carbon emission certifications to remain competitive in export markets. Diesel generators produce significant carbon emissions, while ESS can help factories lower their carbon footprint and strengthen export competitiveness.

What are Huawei's plans for engaging with apparel brands and factory owners regarding these solutions?

We want to engage directly with factory owners and help them better understand these solutions.

Once they fully understand the benefits, many may start by trying ESS at one facility. Based on our experience, once businesses test the technology, they often find the results are even better than they initially expected.