GSMA, IFC to Support Renewable Energy Base Station Market Investment
December 1, 2009 // Published as a news service by IHS
Through this collaboration, mobile operators in developing markets can benefit from technical assistance programs, market research and knowledge-sharing programs to help them implement renewable energy-powered networks.
The goal of the program is to make cost-effective renewable energy solutions a widely used power source for off-grid locations by 2012.
The initiative offers a way to accelerate the deployment of renewable energy in off-grid parts of the developing world, according to GSMA.
IFC plans to identify and pursue green power investments that expand the mobile industry's use of renewable energy-powered networks in developing countries.
IFC will act independently as an anchored investor, offering developing country mobile operators a variety of financial instruments to enable the implementation of business models that leverage renewable power for long-term efficiency gains, experts said.
"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 GSMA Board.
"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," he said.
Through the relationship, GPM will offer a feasibility study service to mobile operators with an interest in increasing their use of green power solutions. The service involves a technical and financial analysis of an operator's base station network to identify priority candidate sites and renewable energy technology, to forecast capital expenditure and return on investment (ROI) and assist with implementation planning.
GPM will also develop training curriculums to provide technical assistance and educate mobile operators in the process of implementing renewable energy base stations.
GPM set up a database to monitor the progress that the industry is making toward reaching the GPM target of powering 118,000 new and existing off-grid base stations in developing countries using renewable energy sources by 2012.
The industry database of green base station deployments, which includes details on equipment used, approximate payback period, challenges and successes, is available at www.wirelessintelligence.com/green-power.
Source: GSM Association (GSMA).