Power constraint force telecoms operators to seek alternative energy sources

•Initiatives include low energy base station, infrastructure sharing
Ben Uzor Jr

The search of telecommunication operators for ways of beating rising diesel spend and the enormous cost of generators is finally headed in the right direction. With the falling prices of equipment for developing alternative energy, telecommunication operators have now discovered a number of initiatives geared towards creating more energy efficient networks, BusinessDay can now reveal.

These initiatives, it was learnt, include: designing low energy base station sites, deployment of base stations powered by renewable energy, and implementation of infrastructure optimisation and sharing. In the preceding year, the Federal Government had disclosed plans to initiate policy thrusts that would force operators to abandon generators for alternative sources of energy. However, the MTN Group is already making significant strides in this regard as the firm has recorded a major breakthrough in power generation with the development of a self-sustaining, environment-friendly power supply initiative.

It was learnt that a team of engineers at MTN’s Network Group came up with the alternative energy solution. The solution is a 2-megawatt (mw), methane-driven tri-generation plant, which is the first of its kind on the African continent. Analysts say that telecom operators investing in alternative energy sources for base stations could recoup the capital cost in as short a period as 24 months. Besides, GSMA, the global trade for the mobile industry, forecasts that by 2012 up to 50 percent of new off-grid base stations in developing countries could be powered by renewable energy.

Investigations show that there are over 22, 000 base stations in the country. These base stations are all powered by generators running on diesel fuel, which is increasingly becoming expensive. BusinessDay checks reveal that the price of diesel rose from between N85 and N90 two months ago, to between N98 and N108 per litre, an increase of more than 10 percent.

It was further gathered that MTN spent over N12 billion in acquiring generators to provide for its over 4, 798 base stations nationwide. The company also spends N500 million monthly on diesel and generator maintenance. The three other networks: Glo, Zain and Etisalat also spend huge sums of money on diesel and generators to power their base stations across the country.

Analysts say that alternative energy solutions could save telecoms companies as much as N6 billion annually. This is the cost spend on diesel and generator maintenance. Emeka Opara, Zain Nigeria's head of corporate communications, said: "Available records show that telecoms operators in Nigeria spend over 60 percent of their operating cost on power generation. This is the major reason why most operating companies are desperately considering alternative sources of energy that are not only cheaper but also environmental friendly.

"At Zain, we are doing something about this issue. We are looking at Hybrid systems because they comply with emissions regulations and reduce fuel consumption. Solar is been considered, even wind energy is also being considered industry wide" “The recent degradation in national grid power supply has increased the pressure on our generators, increased maintenance costs and outstripped local market capacity for supply of generators to telecoms operators”, a senior executive at MTN Nigeria who pleaded anonymity told BusinessDay.

Gbenga Adebayo, chairman, Association of Licensed Telecommunication Operators of Nigeria (ALTON) has called on the government to solve, with immediate effect, all problems associated with electricity supply, as the economic cost and associated loss to the operators and the nation as a whole is too high.

“Nigeria’s power supply problems will create a major set back for telecoms development in Nigeria, and this might erode the gains of telecommunications which has become a way of life and performance enhancing tool for many, irrespective of trade and status”, Adebayo posited.