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18 November 2009

Powering base stations with green energy becomes big business

We don’t cover much in the way of ‘green’ issues, it’s not that we don’t support them personally, but most of the time Green initiatives just don’t affect the businesses in and around the Faultline, but one this week from the GSMA with International Finance Corporation (IFC) backing may make a huge difference to business economics because it plans to save cellular operators some $14.6 billion in fuel bills inside 3 years.

The GSMA and Green Power for Mobile (GPM) program will work with the IFC, the private sector arm of the World Bank Group, to fund feasibility studies into using renewable energy to drive any base stations in emerging countries which are not on the existing power grid.

Mobile operators will also be able to benefit from technical assistance programs, market research, and knowledge sharing on renewable energy powered networks.

IFC plans to identify and pursue green power investments that expand the mobile industry’s use of renewable energy powered networks in developing countries.

‘We have estimated that mobile operators across the developing world will incur a $14.6 billion diesel bill from powering off-grid base stations by 2012,’ said Rob Conway, CEO and Member of the Board, GSMA. ‘Working together with IFC, we hope to address this by helping mobile operators to expand network coverage into remote regions, deploy renewable energy base stations, reduce their energy costs and minimize impact on the environment.’

Through the relationship, GPM will offer a Feasibility Study service to mobile operators with an interest in increasing their use of green power. The service involves a technical and financial analysis of an operator’s base station network to identify priority candidate sites and optimum renewable energy technology, to forecast capital expenditure and return on investment, and assist with implementation planning. GPM will also offer training.

GPM has also set up a database to monitor the progress the industry is making towards reaching its target of powering 118,000 new and existing off-grid base stations in developing countries using renewable energy sources by 2012.