Wind and Solar Have the Potential to Boost Telcos’ Earnings and Sustainability

Kenya has an ambitious plan to attain a 100 percent renewable energy grid by 2030.
According to data from the government, the country recorded 2,613MW in installed renewable energy capacity last year.
This represents 76 percent of the total installed capacity being renewable and last year, newly commissioned wind and solar power facilities saw the country generate 87 percent of energy from renewables.
The goal of achieving a 100 percent renewable energy grid is thus within reach and the government has been pushing for the development of geothermal, wind and solar energy plants for grid-interconnected projects.
However, these efforts by state actors need to be complemented by the private sector which by far accounts for the largest energy consumption in the country.
Kenyan telcos are a case in point. The exponential growth in usage over the years has meant that more Kenyans are in need of the services provided by telcos.
This means the systems quietly working in the background to power our phone calls, Internet browsing and text messages are working harder and consuming more resources.
Mobile base transceiver stations (BTS), for example, account for the bulk of annual energy demands for telcos.
Safaricom’s electricity and fuel consumption last year stood at 220,400 MWh and 10 million litres of fuel respectively, with much of this consumed by its thousands of BTSs, according to its 2022 sustainability report.
Telkom Kenya and Airtel sold their towers to American Tower Corporation (ATC), a leading independent owner, operator and developer of communications towers that are leased to many operators.
In its 2021 sustainability report, ATC said it has 22,000 towers in Africa and has invested more than $400 million globally in “energy efficiency improvements, renewable energy solutions and advanced energy storage systems.”
The towers mainly use energy in powering the Radio Access Network that allows us to make calls and use data bundles, as well as other elements such as cooling, lighting, and the uninterruptible power supply system (UPS).
Transitioning to sustainable energy is a delicate balancing act for telcos because any changes to the energy supply mix should be done while maintaining optimal network performance.
To their credit, all the major service providers in Kenya appear to have in place a plan that addresses energy efficiency and sustainability leveraging solar to supplement what they receive from Kenya Power’s grid.
Safaricom is modernising its BTS sites and installing solar panels as part of its ambitions to become a net zero emitter by 2050.
The company is also deploying a build-to-suite business model where third parties maintain the BTSs under set conditions.