Due to long running hours of diesel generator (DG) sets in rural areas (810 hours), the energy challenges include high opex, higher fuel costs due to increasing fuel transportation costs, pilferage and theft. Also, indoor base transceiver stations require cooling that consumes 50 per cent of power at the tower site.

While operators go rural, the grid power availability remains poor. Also, there are difficulties in measuring actual power consumption. Most of the direct/indirect sources of power are carbon emitting. Besides, considerable capex is required to invest in alternative energy solutions. Today, the total CO2 emissions from towers annually in India equal 5.3 million tonnes.

Impact on business

  • Unreliability/Poor quality of grid power leads to requirement of large battery banks and expensive DG sets
  • Rising fossil fuel costs impact profitability as opex increases and ARPU falls
  • Manpower for refilling, maintenance, reconciliation and back office functions put additional burden on opex
  • Less control on remote and local human dependencies leads to KPI defaults, low maintenance, network outages
  • Long hours of running DGs require diesel in large quantities, resulting in air and sound pollution, high fuel costs, pilferage and theft
  • Climate change and increased social pressure to go green require capital investments in green power.

    Technology options: Solar and wind power

  • Diesel consumption can be reduced to the bare minimum
  • Drastically reduce operational costs
  • Reduce emissions and noise pollution
  • Dependence on grid can be completely eliminated
  • Allow penetration of cellular networks in rural areas
  • Maintenance required is reduced
  • Attractive payback period
  • Saves 40,000 tonnes per year of carbon emissions caused by DGs of 100,000 cell towers
  • Government subsidy (Rs 100 per watt).

    Government initiatives

    Off-grid opportunities
    Soft loans at up to 5 per cent annual interest rate and 30 per cent subsidy for select applications including telecom sites. 200 MW capacity solar applications in the first phase, and focus on rural power supply, and replacement of diesel telecom towers.

    Grid-connected solar power

  • 1,000 MW solar power (connected to 33 kV or more grid) to be purchased by NTPC Vidyut Vyapar Nigam
  • The Central Electricity Regulatory Commission has announced tariffs for 2009-10: PV Rs 18.44 per unit
  • Power purchase agreement duration is 25 years

    • Key imperatives for adoption

  • No carbon emission, environment friendly
  • Significantly reduces manpower
  • Zero fuel cost, reducing opex vastly
  • Insulation from tariff fluctuations
  • Assured supply with limited local dependence
  • Government subsidies/Financing ?? less capex burden
  • Carbon credits, green balance sheets, corporate social responsibility.

    What if we don’t

  • Margins are nosediving due to tariff wars, denting the profitability of operators
  • Pilferage and thefts continue to go unchecked month after month
  • Thousands of DG sets running 24 hours a day in rural areas
  • Additional manpower required on field with increasing tower footprint
  • Government subsidies on renewable energy may not be there tomorrow
  • Unsustainable cost structures as fossil fuel costs bound to go up.

    Shape of things to come: The evolving ecosystem

  • Energy, a critical cost determinant, is not the core competence of the operator
  • Priorities ?? should operators focus on users or grapple with managing energy?
  • Huge variations in energy costs monthon-month without a handle on control
  • Energy-saving technology still evolving ?? some require huge investments
  • Need of fixing energy costs while maintaining the same levels of service level agreement/KPI
  • De-risk operator from process restructuring, technology evolution and obsolescence
  • Independent third parties having expertise in energy management.

    What GTL has tried
    Fuel optimiser

  • Microprocessor controlled
  • Stand-alone solution
  • Significant savings if combined with free cooling.

    • Free cooling

  • Stand-alone free cooler
  • Microprocessor controlled
  • Substantial savings in the cost of air conditioning
  • Rugged design
  • Works on 48/24 V DC.

  • Wind turbine
    Installed first wind turbine on telecom tower in India
    Suitable for outdoor sites in hybrid with solar
    Costly solution with low return on investment
    No plan for mass deployment.

  • Achievements and initiatives in the pipeline

    Aimed at bringing in a green revolution in telecom by reducing CO2 emissions

  • Reduction in energy consumption by 20-30 per cent by:
  • Sharing of telecom towers
  • Energy management
  • Alternative fuel and technologies.

    Finally, it is important that tower companies use renewable energy wherever possible as tomorrow will be too late.

    Sharat Chandra, President and COO, Strategy and New Technologies, GTL Limited

    The energy challenge faced by operators and infrastructure providers today is that the quality and cost vary a lot with the electricity board/grid.These can vary up to 100 per cent from state to state. The power solution is expected to get even more challenging as the wireless carriers go deeper into the rural heartland. Most sites start with 24- hour DG operation in the first few months due to delays in electricity board connection. The conventional back-up power sources are DG sets and batteries, which have problems like carbon emissions, noise pollution, maintenance, fuel logistics, especially given the pilferage situation. Also, industry batteries have certain drawbacks.

    Solutions available in alternative energy

  • Solar energy as the primary source for rural areas
  • Fuel cell systems to replace batteries and DG sets for urban areas.

    Solar power solution

    Solar energy is available in most parts of the country and is reliable.

    Solar photovoltaic system: Converts sunlight into electrical energy and consists of solar modules ?? 48 V DC; battery -48 V deep cycle type; storing power for back-up; giving back-up in case there is no power source available, controller ?? for solar and DG. Where can we leverage solar energy?

  • Use solar as the primary source in a “nogrid” situation
  • Ideal for rural areas with little chance of shadow effect
  • Zero carbon emissions
  • Less possibility of site outage as the site runs on solar power during the daytime.

    Solar solution

    It can be a smart solution that uses renewable energy, cuts down the usage of exhaustible sources, and is a highly sustainable and green option. It has been successfully tried out at many sites in states like Bihar and Orissa.

    Fuel cell introduction

  • Fuel cell is a generic term that encompasses a wide range of technologies that produce from 1 watt (cellphone) of power to several megawatts (small factory) of power
  • Fuel cell “fuel” is typically hydrogen, but hydrogen is made from many different fuels and in different ways
  • Applications for fuel cells cover the entire range of energy use including residential, commercial, back-up, cogeneration, portable, remote and transportation.

    Benefits of fuel cell systems

  • Reduced operation and maintenance costs
  • Space optimisation and highly efficient
  • Compliance with regulations
  • Tax incentives
  • Reduced recycling cost
  • “Green” PR
  • Reduced total cost of ownership
  • Reduced pollution (lead, noise and CO2)
  • Improved reliability (predictive maintenance, broad temperature range and over 10 years’ lifespan).

    Are renewable energy solutions expensive?

    Not if we consider life-cycle cost, environmental impact, cost of energy with DG sets, especially in rural areas, and the impact of the National Solar Mission.

    Further, a well-structured opex model with the right volume can help make the transition to a renewable energy solution worthwhile.

    Arvind Prasad, Head, Solar Business, ACME Telepower Limited