Mobile energy efficiency and the indian industry


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Mobile energy efficiency and the indian industry

  2. 2. The Global ICT carbon footprint (includes telecom) is relatively small at 1.43% 0.83% of overall emission by ICT Smart 2020; enabling the low carbon economy in the information age. Report by the climate group Globally ICT accounted for only 0.83% of the carbon footprint in 2007 and this will increase marginally to 1.43% of the total carbon footprint by 2020. Share of ICT in the total carbon footprint is minimal and is constant over the years. 1.43% of overall emission by ICT
  3. 3. India’s share in the Global ICT footprint is much lesser in the 1.43% slice Source: SMART 2020; Report by The Climate Group RoW = Rest of World ( includes, India Brazil, South Africa, Indonesia and Egypt EiT = Economies in transition. (includes Russia and non-OECD Eastern Europe countries India is included in RoW with other countries, with the share being only 27% of 1.43%. This amounts to only 0.38%.
  5. 5. Sector-Wise CO2 (eq) emissions in India – almost similar to Global pattern Source: INCCA – India GHG Emission, 2007 - MOEF Agriculture, Electricity, Transport and Cement account for 70% of CO2 emissions in India. Share of Telecom sector in the overall CO2 emissions is negligible. Telecom included in “Other Industry” with a share of just 9%.
  6. 6. <ul><li>Given that telecom is a part of “Other Industry” which contributes just 9% of CO2 emission in India, </li></ul><ul><li>And the fact that Globally, ICT accounts for only 1.43% of the total footprint, </li></ul><ul><li>So, even if telecom sector was to change overnight, the overall impact on the carbon footprint will not be material. </li></ul>
  7. 7. Telecom – some Fallacies addressed (1/3) <ul><li>ISSUE -Telecom sector exploiting subsided diesel- because of its diesel consumption </li></ul><ul><li>FACTS </li></ul><ul><ul><li>Telecom forced to use diesel not by choice but by national infrastructure limitation. </li></ul></ul><ul><ul><li>Present infrastructure provides limited availability of grid power </li></ul></ul><ul><ul><li>Purchase, transportation and pilferage of diesel are 33% of OPEX; operators have an incentive to save. </li></ul></ul><ul><ul><li>License mandates 90% of Service area to be covered in 3 years </li></ul></ul><ul><ul><li>Need to maintain QoS and network up-time; only industry required to run 24X7X365 </li></ul></ul><ul><ul><li>Diesel generator most efficient among available options </li></ul></ul><ul><ul><ul><li>When many of these towers were built, solar energy was not developed enough for commercial use. The choice of diesel generators was the best alternative, not only because there were no other types of generators </li></ul></ul></ul><ul><ul><li>To minimize environmental impact, all operators first use battery power and when these run out, switch to diesel generators </li></ul></ul>
  8. 8. <ul><li>FACTS </li></ul><ul><ul><li>The cellular industry was one of the first to start widely using solar panels and wind energy applications and continues to do so </li></ul></ul><ul><ul><li>The Industry has been at the forefront of encouraging the government to provide grid power to our cell sites and installations on a priority basis </li></ul></ul><ul><ul><li>However, this has not happened. Neither has the government initiated any alternate energy sources, like solar farms, wind farms, fuel cells etc. to augment generation of its grid power </li></ul></ul><ul><ul><li>As such, the industry cannot be blamed for its continued dependency on diesel, anymore than the railways can be blamed for NOT switching to electricity </li></ul></ul>Telecom – some Fallacies addressed (2/3) The industry cannot be blamed for its continued dependency on diesel.
  9. 9. Telecom – some Fallacies addressed (3/3) <ul><li>ISSUE - Telecom sector accounts for high diesel usage </li></ul><ul><li>FACTS </li></ul><ul><ul><li>Ignores the total GHG emission impact on account of telecom; ICT accounts for only about 2% of the total GHG emission </li></ul></ul><ul><ul><li>Telecom is not the largest user of diesel </li></ul></ul><ul><ul><li>Impact on GHG emissions on account of telecom is negligible </li></ul></ul><ul><ul><li>On the contrary ICT/ Telecom have a positive “externality impact” which leads to a reduction in consumption of diesel and other fossil fuel in the economy </li></ul></ul>The Smart 2020 report by the Climate Group identifies the positive impact of ICT on the other sectors of the economy
  10. 10. The enabling effect of ICT <ul><li>The ICT sector has a powerful role to play in tackling climate change by enabling other sectors, such as transport, buildings, power and industry, to become more efficient . </li></ul><ul><li>ICT could reduce global carbon emissions by 7.8 GtCO2e by 2020 (from an assumed total of 51.9 GtCO2e). </li></ul><ul><li>The five major opportunities for reducing emissions are </li></ul><ul><li>– dematerialization, </li></ul><ul><li>– smart motor systems, </li></ul><ul><li>– smart logistics, </li></ul><ul><li>– smart buildings and </li></ul><ul><li>– smart grids </li></ul>Smart 2020; enabling the low carbon economy in the information age. Report by the climate group
  11. 11. The enabling effect of ICT <ul><li>Dematerialisation – the substitution of high carbon products and activities with low carbon alternatives e.g. replacing face-to-face meetings with video-conferencing, or paper with e-billing, could play a substantial role in reducing emissions. </li></ul><ul><li> – dematerialisation could be responsible for reducing emissions by 500MtCO2e, just less than Australia’s total emissions in 2005. </li></ul><ul><li>Smart Motor systems –ICT could play a significant role in mitigating global carbon emissions from motor systems and industrial process optimization; reduction of up to 970 MtCO2e in 2020. . </li></ul><ul><li>– A motor is “smart” when it can be controlled to minimize its power usage through a intelligent motor controller (IMC), ICT’s main role, therefore, will be to monitor energy use and provide data to businesses so they can make energy savings by changing manufacturing systems. </li></ul><ul><li>Smart logistics – translate into an efficient transportation system which help in reducing fuel cost </li></ul><ul><li>– ICT can improve the efficiency of logistics operations in a number of ways such as software to improve the design of transport networks, inventory reduction etc. </li></ul>Smart 2020; enabling the low carbon economy in the information age. Report by the climate group
  12. 12. The enabling effect of ICT <ul><li>Smart Buildings – These include building management systems (BMS) that run heating and cooling systems according to occupants’ needs or software that switches off all PCs and monitors after everyone has gone home. </li></ul><ul><li> – A host of BMSs already exist and as ICT applications become more sophisticated, the range of BMS functions will expand. This sector would emit 11.7 GtCO2e in 2020 and ICT offers a major opportunity to reduce emissions from this sector by 15% in 2020. </li></ul><ul><li>Smart Grid – A “smart grid” is a set of software and hardware tools that enable generators to route power more efficiently, reducing the need for excess capacity and allowing two-way, real time information exchange with their customers for real time demand side management (DSM). </li></ul><ul><li>– It improves efficiency, energy monitoring and data capture across the power generation and T&D network. </li></ul><ul><li>– The potential for ICT to reduce carbon emissions through smart grid technology could be substantial; some 2.03 GtCO2e by 2020 </li></ul>Smart 2020; enabling the low carbon economy in the information age. Report by the climate group
  13. 13. <ul><li>The mobile telecom sector has adopted the GSMA Mobile energy efficiency initiative. </li></ul><ul><li>The GSMA initiative aims at monitoring and benchmarking GHG emissions. </li></ul><ul><li>The objective is to provide operators with information and best practices to enable them to reduce the carbon footprint. </li></ul>Initiatives specific to mobile telecom
  14. 14. Objectives of GSMA’s Mobile Energy Efficiency Initiative <ul><li>To develop a benchmarking methodology, KPIs and benchmark outputs which allow mobile operators to: </li></ul><ul><ul><li>compare multiple networks on a like-for-like basis and against standard energy KPIs; and </li></ul></ul><ul><ul><li>reduce energy consumption, emissions and costs </li></ul></ul><ul><li>To coordinate with industry and regulatory stakeholders so that the benchmarking methodology is adopted as a global standard by the industry </li></ul>22 MNO participants, accounting for 170 networks. Successful pilot completed with Telefonica, Telenor and China Mobile
  15. 15. Participants in GSMA’s MEE initiative
  16. 16. Benefits for operators <ul><li>A detailed analysis of the relative performance of their networks against a large dataset </li></ul><ul><ul><ul><li>Energy cost and carbon emissions savings of 20% to 25% of costs are typical for underperforming networks </li></ul></ul></ul><ul><li>Suggested high level insights to improve efficiency </li></ul><ul><li>The opportunity to participate in analysis on an annual basis to map improvements over time and quantify the impacts of cost reduction initiatives </li></ul><ul><li>Demonstrate a commitment to energy and emissions reduction, which will have a positive impact on regulators, investors, customers and other stakeholders </li></ul>
  17. 17. Methodology <ul><li>Unique analytical approach allows MNOs to compare their networks against one another and against their peers on a like-for-like basis </li></ul><ul><ul><li>Variables outside the operator’s control, e.g. population distribution and climatic conditions, are normalised for using multi-variable regression techniques </li></ul></ul><ul><li>Key Performance Indicators </li></ul><ul><ul><li>Energy consumption per mobile connection </li></ul></ul><ul><ul><li>Energy consumption per unit mobile traffic </li></ul></ul><ul><ul><li>Energy consumption per cell site </li></ul></ul><ul><ul><li>Energy consumption per unit of mobile revenue </li></ul></ul><ul><li>External comparisons are made anonymously </li></ul>
  18. 18. Internal benchmarking, before normalisation Mobile operations electricity and diesel usage, per connection, 2009 A B C D E F G H I J K L kWh per connection Country 7x Diesel usage Electricity usage Key Spread of energy per connection across countries can be high Network “A” inefficient? Network “I” efficient? DISGUISED EXAMPLE 0 5 10 15 20 25 30 35
  19. 19. Internal benchmarking, after normalisation kWh per connection A B C D E F G H I J K L Country -2 -1 0 1 2 Difference between actual electrical and diesel energy usage per mobile connection and the expected value, 2009 -3 -4 3 4 Normalisation (against 5 variables) shows a truer picture <ul><li>Mobile operations diesel & electricity usage per connection regressed against: </li></ul><ul><li>% 2G connections of all mobile connections </li></ul><ul><li>Geographical area covered by MNO per connection </li></ul><ul><li>% urban population / % population covered by MNO </li></ul><ul><li>Number of cooling degree days (population weighted) </li></ul><ul><li>GDP per capita (adjusted) </li></ul>Regression variables DISGUISED EXAMPLE Network “A” more efficient than “I”
  20. 20. Example of external benchmarking Difference between operators’ actual electrical and diesel energy usage per mobile connection and the expected value, 2009 <ul><li>Mobile operations diesel & electricity usage per connection regressed against: </li></ul><ul><li>% 2G connections of all mobile connections </li></ul><ul><li>Geographical area covered by MNO per connection </li></ul><ul><li>% urban population / % population covered by MNO </li></ul><ul><li>Number of cooling degree days (population weighted) </li></ul><ul><li>GDP per capita (adjusted) </li></ul>kWh per connection Top Mobile in Canada Top Mobile in Mexico Top Mobile in South Africa Top Mobile in France Top Mobile in Italy Top Mobile in Japan Top Mobile International OpCos Other Operators Key Regression variables Top Mobile in India An anonymous comparison against other operators will allow greater insights for energy managers in operator “Top Mobile” Top Mobile average
  21. 21. Next steps for the GSMA MEE programme <ul><li>May / June </li></ul><ul><ul><li>Feedback results to, and debate implications with, participating operators. Results already sent to 13 operator groups </li></ul></ul><ul><ul><li>Include new participants; refine results </li></ul></ul><ul><li>June / July . Issue final 2009 benchmarking report </li></ul><ul><li>August onwards . Collect data for 2010 and prepare for 2010 report </li></ul><ul><ul><li>In ADDITION to the GSMA MEE initiative, operators are taking SEVERAL STEPS towards going green . </li></ul></ul>
  22. 22. Additional initiatives taken by Telecom Industry (1/2) <ul><li>“ Green power&quot; programmes, exploring the use of a wide range of technologies, such as bio-diesel, fuel cells, pico-hydro, wind and photo voltaic panels </li></ul><ul><ul><li>Aircel has adopted green initiatives designed and implemented by Wipro Eco Energy, the clean energy division of Wipro </li></ul></ul><ul><ul><li>Aircel was awarded with NDTV Toyota Greenies Eco Award 2010 under the category Best Green Company at an award ceremony in New Delhi  graced by the President of India, Pratibha Patil. </li></ul></ul><ul><ul><li>Vodafone has adopted energy efficient cooling, alternating diesel battery hybrid mode, reducing the diesel consumption </li></ul></ul><ul><ul><li>Airtel has been rolling out its “Green shelters” concept leading to major savings in energy consumption by its network in India </li></ul></ul><ul><ul><li>Idea Cellular has deployed solar and bio-fuels on trial basis for their base stations </li></ul></ul><ul><ul><li>Uninor was awarded the prestigious Green Globe Foundation Award 2011 for Best Contribution by a Corporate/Business Enterprise </li></ul></ul><ul><ul><li>As a step towards going green, all operators are moving towards paper less billing . </li></ul></ul>
  23. 23. <ul><li>Equipment vendors, tower companies and network service providers are investing heavily in bringing out in bringing out “green products”. </li></ul><ul><li>Adoption of “Green Products” and “Green Process” : </li></ul><ul><ul><li>Bharti Infratel Limited had been awarded the “Green Mobile Award” at the 2011 GSMA Annual Global Mobile Awards for Best Green Product for its pioneering P7 Green Towers project initiative that includes seven initiatives which significantly reduces dependency on diesel. These initiatives include Solar DG Hybrid, Variable Speed DCDG, Fuel Cells, DCFCU, IPMS, GenX & Fuel Catalyst. </li></ul></ul><ul><ul><li>Ericsson has developed the Ericsson tower tube, which uses natural convection cooling, to reduce feeder loss, resulting in a reduction of up to 40 percent in power consumption. </li></ul></ul><ul><ul><li>Huwaei’s has developed single RAN solution based on software-defined radio (SDR) system to truly integrate multiple networks. </li></ul></ul>Additional initiatives taken by Telecom Industry (2/2)
  24. 24. <ul><li>The Greenpeace report acknowledges the challenge and risk faced by service providers in keeping the network up and running in spite of limited grid supply. </li></ul><ul><li>The Greenpeace report also acknowledges the fact that there is NO Regulatory framework / policy relating to carbon emissions. </li></ul><ul><li>Even in the absence of a defined framework, operators are participating in various initiatives aimed at adopting GREEN; example GSMA MME Programme </li></ul>Greenpeace report and COAI response
  25. 25. Demands raised by GREENPEACE on Telecom Industry <ul><li>Publicly disclose carbon emissions and set progressive reduction targets. </li></ul><ul><li>Commit to shifting resources towards renewable energy and make clear investment plans for co-development of renewable energy. </li></ul><ul><li>Enable a low-carbon economy by playing a significant role in advocating strong climate & energy policy. </li></ul>
  26. 26. Industry recommendations on enabling policy framework for adoption of GREEN <ul><li>The industry believes that the government ought to reduce the present USO levy of 5% of AGR and use this as a subsidy to industry to switch to solar/ alternate energy which require high up-front investments. </li></ul><ul><li>Government to approve not only passive infrastructure sharing but also active infrastructure sharing. This will further reduce the number of new towers required. </li></ul><ul><li>We also encourage the government to formalize and finalize the carbon credits policy so the industry can use this to augment its investments in alternate energy sources. </li></ul><ul><li>Govt should ensure increased spectrum availability as the same will further allow the industry to reduce the number of planned towers. </li></ul>
  27. 27. THANK YOU