Manoj Kumar Singh, Director General, Digital Infrastructure Providers Association
In the race to combat climate change, India’s telecommunications sector has emerged as an unexpected front runner in renewable energy adoption. As the digital backbone of the world’s most populous nation continues to expand, the industry faces a dual challenge – meeting the growing energy demands while reducing its carbon footprint. This transformation is not merely an environmental consideration; it has become a business
imperative, driving innovation across the digital landscape.
Scale of the challenge
The telecom industry’s energy appetite is voracious and growing rapidly. With approximately 0.82 million towers and 2.98 million base transceiver stations spread across India, the sector’s power requirements are enormous and expanding. This consumption is projected to increase by 10 per cent each year through 2025, driven primarily by the roll-out of 5G technology. Each 5G base station requires roughly two to three times more power than its 4G predecessor, creating an urgent need for sustainable energy solutions.
Against this backdrop of surging energy requirements, India has made remarkable strides in renewable energy deployment. By early 2025, the country’s non-fossil-fuel energy capacity reached an impressive 217.62 GW, with solar capacity hitting 100 GW and wind energy contributing 47.96 GW. This renewable energy boom has created unprecedented opportunities for the telecom sector to decarbonise while managing costs effectively. As the digital backbone of the world’s most populous nation expands, the industry faces the dual challenge of meeting exponentially growing energy demands while simultaneously reducing its carbon footprint.
The economics of green telecom
What began as an environmental initiative has evolved into a compelling economic strategy. Recent data from the Central Electricity Authority reveals that solar electricity now costs between Rs 2.25 and Rs 3.50 per kWh (excluding transmission loss charges and some other overheads), compared to a staggering Rs 25-Rs 30 per kWh for diesel generation that traditionally powered remote telecom towers.
This dramatic cost difference has transformed the business case for renewable energy. Leading telecom infrastructure providers report 15-20 per cent lower operational expenses at sites powered by clean energy compared to conventional grid-dependent installations. With energy costs representing approximately 30 per cent of network operational expenses, the financial benefits of this transition are substantial.
The most forward-thinking telecom companies have recognised that renewable energy is no longer just about environmental responsibility – it is about competitive advantage. These cost savings can be reinvested in network expansion, improved services or passed on to consumers, creating a virtuous cycle of sustainable growth.
Policy catalysts accelerating adoption
India’s regulatory environment has evolved to support the telecom sector’s green transition. The Green Energy Open Access [GEOA] Rules, notified on June 2, 2022, along with their subsequent amendments in 2023, have been particularly transformative.
One of the most significant barriers for telecom companies was the 100 kW minimum threshold for accessing renewable energy through open access mechanisms. Individual telecom sites typically operate at much lower power (10-20 kW) requirements, making them ineligible. The 2023 amendments addressed this challenge by allowing load aggregation, enabling telecom operators to combine multiple low-consumption sites to meet
the threshold.
The revised rules clarified that an “entity” could refer to consumers with either a single connection or multiple connections aggregating 100 kW or more within the same electricity division of a distribution licensee. This policy revision directly responded to the telecom industry’s long-standing demand and has substantially improved the economics of renewable energy procurement.
Other incentives include the waiver of transmission charges for renewable projects commissioned before June 2025 and special provisions for offshore wind projects. These policy catalysts have accelerated the sector’s renewable energy adoption by removing technical and financial barriers.
Smart grid technologies
The integration of smart grid technologies represents another critical dimension of the telecom sector’s energy transformation. Advanced forecasting systems now predict renewable generation patterns, allowing operators to optimise energy usage and storage. These intelligent systems have dramatically reduced energy wastage across early-adopting telecom installations.
The Ministry of Power (MoP) has recognised this opportunity through its 2024 Smart Grid Implementation Framework, which prioritises telecommunications infrastructure in grid modernisation efforts. This framework includes provisions for dedicated renewable energy feeders for telecom installations, ensuring power reliability while maintaining sustainability goals.
Power Grid Corporation of India Limited (Powergrid), operating under the MoP, is simultaneously developing smart grid and smart metering solutions to enhance overall grid efficiency. These technologies empower telecom operators with better tools to manage their energy consumption while improving grid resilience. With its extensive fibre-optic network under Powertel, Powergrid is playing a key role in strengthening the communication backbone essential for modern energy management systems.
Bridging the digital divide
Addressing the critical challenge of digital inequality, the BharatNet project is connecting India’s 0.26 million gram panchayats through an ambitious digital infrastructure initiative. As of January 2025, 214,323 gram panchayats have been connected, with 692,676 km of optical fibre cable laid. The project has commissioned 122,1014 fibre-to-the-home connections and installed 104,574 Wi-Fi hotspots, ensuring comprehensive last-mile connectivity. With a substantial investment of Rs 1.39 trillion, BharatNet is not just expanding digital access but doing so through an environmentally conscious approach that reduces carbon emissions while empowering rural communities with reliable, green digital connectivity.
Battery technology for overcoming intermittency
The advancement in energy storage technology has been pivotal in enabling the telecom sector’s renewable energy transition. The intermittent nature of solar and wind power initially presented a significant challenge for an industry that requires uninterrupted power. However, dramatic reductions in battery costs, with lithium-ion prices falling by 89 per cent since 2010, have made energy storage economically viable for
telecom applications.
The latest generation of lithium-ferro-phosphate batteries deployed at telecom sites offers 3,500 discharge cycles, registering a 40 per cent improvement over previous generations. This significant extension of operational lifespan has transformed the economics of renewable energy storage for telecom applications.
The production-linked incentive scheme for advanced chemistry cell batteries has catalysed domestic manufacturing capacity, with 50 GWh of production under development. This growing domestic supply chain is expected to further reduce storage costs, enhancing the viability of renewable energy for telecom applications.
Moving beyond tower solarisation
The telecom sector’s renewable energy strategy has evolved substantially beyond simply adding solar panels to individual towers. The industry is now pioneering community microgrid models, where telecom infrastructure serves as an anchor client for renewable energy installations that also power surrounding communities.
This approach creates shared value – telecom operators secure reliable, clean energy while contributing to rural electrification and community development. These innovative deployment models demonstrate how corporate sustainability initiatives can align with broader societal goals.
Battery energy storage systems represent another frontier being explored by the MoP. These systems provide essential flexibility and stability to the grid by enabling the storage and management of renewable energy, particularly crucial when dealing with the inherent variability of renewable sources.
Sustainability in data centres
As India’s digital infrastructure expands, data centres have emerged as the next frontier for renewable energy integration. India’s data centre market is projected to grow from $4.5 billion in 2023 to $11.6 billion by 2032, representing a compound annual growth rate of 10.98 per cent.
Given their enormous energy requirements and 24/7 operational profile, data centres present both a challenge and an opportunity for renewable energy adoption. The GEOA provisions have been particularly transformative for this sector, enabling data centre operators to procure clean energy at scale.
Energy-efficient connectivity
The expansion of India’s fibre optic network, now exceeding 4.19 million km, represents another dimension of the sector’s sustainability transformation. Fibre optic cables consume significantly less energy than traditional copper cables while offering vastly superior data transmission capabilities. This infrastructure upgrade simultaneously addresses both capacity and sustainability objectives.
Challenges
Despite remarkable progress, some challenges persist in the telecom sector’s renewable energy journey. The variability of renewable generation continues to require sophisticated energy management systems and storage solutions. As 5G deployments accelerate and energy demands increase, these challenges will intensify.
However, the trajectory is clear. India’s telecom sector is demonstrating that renewable energy integration is not just an environmental imperative but a strategic advantage. The sector’s innovative approaches to renewable energy deployment, storage solutions and smart grid integration offer valuable lessons for other industries embarking on similar transitions.
A blueprint for sustainable digital infrastructure
As India progresses towards its ambitious target of 500 GW of non-fossil-fuel energy capacity by 2030, the telecommunications sector stands as a beneficiary and an enabler of this vision. By greening its operations while expanding digital access, the industry is creating a blueprint for sustainable development that balances technological advancement with environmental responsibility.
The convergence of renewable energy and digital infrastructure represents one of the most promising pathways to achieve India’s climate commitments while driving economic growth. This transformation will continue to create new opportunities for innovation, collaboration and sustainable development across the digital ecosystem, ultimately contributing to a greener, more connected India.
