Like other sectors, the telecom sector is also becoming environmentally conscious and prioritising sustainable operations. This shift has happened after the roll-out of 5G networks. There are concerns that the increased deployment of towers, small cells and base transceiver stations will lead to higher greenhouse gas (GHG) and carbon emissions, contributing to global warming. To mitigate the telecom sector’s adverse effects on the overall ecosystem, steps must be taken to move towards “green telecom”, reducing energy consumption and transitioning to renewable energy sources.
Key drivers propelling the green telecom movement
The green telecom movement is gaining traction in India and other countries due to several factors. First, increased global awareness of climate change and its potential consequences puts pressure on businesses and industries, including the telecom sector, to adopt sustainable practices and reduce carbon emissions. Further, embracing green practices, such as using renewable energy sources such as solar and wind power, can lead to significant cost savings in the long run. By reducing reliance on traditional energy sources such as diesel generators (DGs), telecom companies can lower their operational expenses. Moreover, governments worldwide are offering incentives and favourable policies to encourage businesses to adopt green technologies and practices. These incentives motivate telecom operators to invest in sustainable solutions. Another factor is the changing public perception as consumers are becoming more conscious of the environmental impacts associated with the products and services they use. Telecom companies that demonstrate a commitment to sustainability may gain a competitive edge and attract environmentally conscious customers in the long run.
Furthermore, many telecom operators view sustainability initiatives as part of their corporate social responsibility efforts. By actively participating in green practices, they can enhance their reputation and contribute positively to society. Meanwhile, advancements in renewable energy technologies, energy storage solutions and energy-efficient network equipment have made it more feasible for telecom companies to transition to green practices. As the green telecom movement gains traction, it is crucial for the industry to adopt environmentally friendly practices and continue seeking innovative solutions to reduce its carbon footprint.
Collaborative efforts among telecom operators, infrastructure providers, technology providers and governments are essential to achieve significant progress in this area. By adopting green information and communication technology (ICT), investing in renewable energy sources, improving energy efficiency and fostering responsible waste management, the telecom industry can contribute to building a sustainable and eco-friendly future while maintaining its position as a critical and essential sector of the economy.
Indeed, the telecommunications industry in India, like in other countries, faces the challenge of balancing technological advancements and environmental sustainability. The sector has witnessed tremendous growth, with a large consumer base and an expanding network infrastructure. However, this growth has also led to significant energy consumption and carbon emissions, thereby increasing the adoption of green practices to mitigate its impact on the environment.
Current statistics
The global telecom/ICT industry accounts for 1.43 per cent of the total carbon footprint. According to GSMA data, 62 operators, representing 61 per cent of the industry by revenue and 46 per cent by connections, committed to adopt science-based targets to rapidly decrease their direct and indirect emissions by 2030. A large number of operators, accounting for 39 per cent of mobile connections and 43 per cent of global revenue, have also set targets to achieve net-zero emissions by 2050 or earlier.
In India, the telecom industry contributes approximately 9 per cent to the carbon footprint. While this may seem relatively low compared to other industrial sectors, it is essential to recognise the need for further reduction. With improved grid availability and its expansion to rural locations, there has been significant progress in terms of grid accessibility. Despite these efforts, 35-40 per cent of telecom tower sites in India are still dependent on DGs as a source of backup. However, telcos have made efforts and conducted trials to make solar power solutions economically viable.
In the past, telcos utilised 4-5 kW of solar power per site, which has now increased to 10 kW per site due to the deployment of additional base transceiver stations (BTSs)/eNodeBs for 4G/5G networks. However, deploying solar power and associated energy storage solutions is a capex-heavy exercise.
Indian telcos ramp up efforts
All three private sector telcos in India have ramped up their efforts to reduce GHG emissions and enhance operational sustainability. For instance, Bharti Airtel has committed to reducing absolute Scope 1 and 2 GHG emissions by 50.2 per cent and Scope 3 GHG emissions by 42 per cent by financial year 2031 (using 2021 as the base financial year). The first two categories represent the direct emissions generated by telco operations and purchased energy, while Scope 3 accounts for indirect emissions, including the supply chain. The telco has committed to achieving net zero emissions (aligned with 1.5 °C emission scenarios) by 2050, following recommendations from Science-Based Target Initiatives (SBTi). Airtel is also expanding the use of green energy across its operations and with its partners by utilising open access green energy and solar power.
Further, Reliance Jio has set an SBTi-validated target of 76 per cent reduction in its absolute Scope 1 and Scope 2 GHG emissions and 66.5 per cent in absolute Scope 3 GHG emissions by the financial year 2028, compared to the base financial year 2020. The telco has also committed to increasing its annual sourcing of renewable electricity from 1.2 per cent in financial year 2020 to 100 per cent by 2029, and to continue sourcing 100 per cent renewable electricity through financial year 2030. In addition to setting up 161 MW of solar power across over 17,000 sites, Jio has started using wind power and methanol fuel cells to reduce its carbon footprint. The operator has minimised its use of DGs by implementing initiatives such as optimisation of DG run-hours and time division duplex (TDD).
While Vodafone Idea Limited (Vi) has not yet announced its net-zero target, it has taken steps to reduce its GHG emissions across operations. With over 75 per cent of the telco’s base transceiver stations (BTSs) being outdoor, it has achieved a 25 per cent reduction in energy consumption compared to indoor BTSs. Vi’s diesel elimination project to reduce its carbon footprint covered over 13,000 sites in the financial year 2023, with solar-based generation at over 1,000 co-owned sites. More than 95 per cent of these sites were deployed at existing 2G sites and/or shared sites.
Ushering in a greener future
The Indian telecom industry is scaling up its efforts to build greener and more sustainable networks. However, the significant upfront investment required to deploy energy saving and renewable energy solutions presents a formidable challenge, particularly for companies already struggling to cover operational costs. Many renewable energy sources require additional storage technologies, further increasing the overall capital expenditure burden. Therefore, in addition to the industry’s efforts to reduce its energy footprint, the government should consider ways to provide financial incentives to telecom infrastructure companies. This involves measures such as tax holidays and accelerated depreciation to offset the additional capex associated with the implementation of renewable energy solutions.
Another challenge in decarbonising the sector is limited access to renewable electricity as operators’ demand currently outstrips supply. Moreover, renewable energy solutions are not always feasible or price competitive due to the lack of sunlight, infrequent wind, or the need for expensive battery storage solutions.
To address these issues, the global mobile industry needs to collaborate for developing progressive policies, building a conducive regulatory environment to promote decarbonisation, and learning from the experiences of front runners in this domain. Further, energy market innovation and collaboration between governments and the private sector are essential to accelerate the transition to clean energy.
Kuhu Singh
