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Huawei's Vision for Future Electrical Systems

At the prestigious The Smarter E 2026 exhibition held in Munich, Steven Zhou, the President of the Smart PV Energy Storage Systems at Huawei Digital Power, presented the company's forward-thinking strategy for the future of electrical systems. This strategy aims to bolster the stability of the electrical grid, enabling a stronger integration of renewable energy sources, particularly wind and solar, expected to account for 64% of Europe’s energy consumption by 2030.

The European electrical systems are currently challenged by decreasing robustness and resilience, due to complications in power distribution and the dwindling presence of traditional synchronous generators. In light of these challenges, European markets are ramping up investments in grid infrastructure, advancing the deployment of grid-forming battery energy storage systems, and developing new grid codes. These initiatives are designed to transition from traditional energy arbitrage to a diversified auxiliary services market, which is crucial for the future of sustainable energy.

During his address, Zhou emphasized a vital message: “Future photovoltaic and battery storage products must evolve to become primary energy sources.” As new energy technologies gain significance, the sector is experiencing a dynamic phase of innovation, shifting from isolated innovations to a more integrated approach. He highlighted the role of hybrid solutions in accelerating the replacement of conventional thermal power plants, asserting that key grid-forming functionalities – including autonomous startups, inertia support, and fault current capabilities – have been validated under various operational conditions.

In retracing Huawei’s strategic direction in response to network evolution, Zhou reminded the audience of the LUNA project launched in 2020, which served as the industry's first smart string energy storage system. Named after the Moon, LUNA was designed to ensure clean energy availability even after sunset. This solar inverter, known as SUN, leverages solar energy to provide power during the day. Zhou announced a rebranding of LUNA to LUTERRA, derived from Terra, meaning Earth. This change symbolizes Huawei's commitment to transitioning from merely facilitating nocturnal energy supply to actively protecting our planet.

Huawei is using its understanding of 4T technologies (bit, watt, heat, and battery) to continuously innovate within its intelligent photovoltaic energy strategy. The company's focus is on developing electricity systems that benefit all user segments and scenarios. Zhou detailed successful commercial projects throughout Europe made possible by Huawei’s universal solution, which includes photovoltaic technology, battery energy storage systems, EV charging stations, and AI-powered planning. For instance, a business park in Germany, AHS, reported a 10% increase in revenue just two years after adopting Huawei’s universal solution. Similarly, in Spain, a Carrefour supermarket achieved nearly a 40% reduction in electricity costs, resulting in a capital payback period of only five years.

As the electricity market evolves, Zhou outlined plans for increased diversification of business models linked to battery energy storage systems. He assured that Huawei’s versatile hardware and scalable software platforms can adapt to various business models, maximizing efficiencies.

Demonstrations of Huawei technologies worldwide – from Spain to Mongolia and Germany to the Philippines – have illustrated the added value of their innovative grid-forming technologies. Zhou concluded that the company's core competencies will strengthen intelligent photovoltaic energy storage solutions tailored to diverse scenarios, enhancing client value while ensuring grid stability amidst the expanding integration of renewable energies.