Strategies for improving energy efficiency in mobile networks

GSMA Intelligence has shared some of the strategies for mobile operators for improving energy efficiency in mobile networks, especially in regions like Africa.

Africa energy use in mobile networks
Africa energy use in mobile networks GSMA

Strategies encompass technological upgrades, renewable energy investments, policy interventions, and stakeholder collaboration.

Cost challenges

Operating base stations, especially in remote rural areas, comes with cost challenges that are much higher than in urban settings. Here are the key highlights:

# Higher Operational Expenses in Rural Areas

Running a base station in rural areas is, on average, 35-40 percent more expensive than in urban areas. In some countries, these costs can be even higher.

The high operational expenses (opex) put pressure on the profit & loss (P&L) of mobile operators, limiting cash flow and constraining future investments in network expansion.

# Energy Dependency and Costs

Remote sites often lack reliable grid access, making them heavily reliant on diesel generators. This adds substantial energy costs and operational challenges.

In Sub-Saharan Africa, for instance, electrification rates are just over 50 percent, with some countries even lower. These infrastructure gaps exacerbate the high costs of running rural base stations.

# Global Energy Use and Transition Pressures

Significant Energy Consumption: Telecoms networks (mobile and fixed) account for approximately 1 percent of global electricity consumption, on par with cloud data centers. This totals around 300 terawatt hours annually.

As 5G and digitization expand, energy needs are expected to increase, adding cost pressures. Energy price volatility and a slow transition to renewables also add to these challenges.

# Regional Variations in Energy Sources

Countries like Kenya and Ethiopia lead in renewable energy with extensive use of hydropower and solar. However, populous countries like Nigeria and South Africa still rely on fossil fuels for over 75 percent of their electricity.

In Sub-Saharan Africa, while around 20 percent of grid electricity is renewable, mobile operators utilize only about half of that renewable share. This shows a lag in renewable adoption and limited supply access for telecoms.

# Global Trends and Power Purchase Agreements (PPAs)

In regions like Europe and the US, telecoms operators often supplement grid power with renewable sources through power purchase agreements (PPAs). In contrast, this practice is less common in Asia, the Middle East, and Africa, where renewable supply remains low and inconsistent.

The high costs of running rural base stations underscore the need for innovative, renewable-focused solutions and policy support to ensure network expansion is sustainable and financially viable.

Africa operator energy efficiency GSMA
Africa operator energy efficiency GSMA

Strategies for operators

# Modernize Network Equipment

Replace 3G equipment with 4G and 5G infrastructure to take advantage of their higher spectral efficiency, which allows for more data transmission with less energy consumption per GB.

Use software-defined networking (SDN) and network function virtualization (NFV) to enable more efficient network traffic management, reducing energy demand during low-traffic periods.

Deploy energy-efficient cooling systems and smart battery management solutions to reduce energy waste at network sites.

# Invest in Renewable Energy

In off-grid and rural areas, solar and hybrid (solar and wind) power solutions can significantly reduce reliance on diesel generators, cutting both costs and emissions.

Conduct granular feasibility assessments at the site level to identify where renewable solutions can be most effectively implemented based on demand and energy access.

Incorporate efficient energy storage systems, like lithium-ion batteries, to store renewable energy for consistent network operation and reduce reliance on the national grid or generators during peak hours.

# Implement Site Sharing and Optimize Infrastructure Use

Collaborate with other telecom operators to share infrastructure, reducing energy consumption by minimizing redundant equipment and sites.

Use small cells and distributed antenna systems to improve energy efficiency in densely populated areas by reducing the load on macro towers.

# Leverage Smart Data and AI for Efficiency

Use granular data on energy use at each site to tailor energy solutions. AI can help predict energy requirements and optimize power management, switching off parts of the network during low usage periods.

Implement IoT-enabled sensors for real-time energy monitoring to detect inefficiencies and adjust energy use accordingly.

# Engage in Policy and Regulatory Advocacy

Push for government policies that lower or eliminate import duties on green energy infrastructure to lower upfront costs.

Work with governments to adopt net metering policies, allowing operators to feed excess energy back to the national grid in exchange for credits that offset energy costs at other sites.

Work with policymakers to designate telecom infrastructure as critical national infrastructure, which can prioritize access to energy sources and facilitate rapid renewable deployments.

# Form Partnerships for Funding and Resource Sharing

Partner with international development financial institutions (DFIs) for access to innovative funding solutions, including green bonds, low-interest loans, and grants.

Coordinate with tower companies and energy specialists for resource-sharing and joint investments, reducing individual capital expenditures while broadening renewable energy reach.

# Set Targets for Sustainable Network Growth

Set measurable goals for reducing emissions and energy intensity per unit of data, and report progress to stakeholders.

As 5G networks expand, account for future energy demand by planning renewable energy deployment that aligns with projected growth in data traffic and service areas.

By implementing these strategies, operators in Africa can lower their energy use per GB, reduce operational costs, and support environmental sustainability while helping bridge the digital divide in regions with limited energy access, Tim Hatt, Head of Research and Consulting and Emanuel Kolta, Lead Analyst, Network Sustainability and Innovation at
GSMA Intelligence said.

Baburajan Kizhakedath

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