Green Telecom: Efforts to decarbonise the industry

Indeed, the telecommunications industry in India, like in other countries, faces the challenge of balancing technological advancements and environmental sustainability. The sector has witnessed tremendous growth, with a large consumer base and an expanding network infrastructure. However, this growth has also led to significant energy consumption and carbon emissions, thereby increasing the adoption of green practices to mitigate its impact on the environment.

The green telecom movement is gaining traction in India and other countries due to several factors. First, increased global awareness of climate change and its potential consequences puts pressure on businesses and industries, including the telecom sector, to adopt sustainable practices and reduce carbon emissions. Further, embracing green practices, such as using renewable energy sources such as solar and wind power, can lead to significant cost savings in the long run. By reducing reliance on traditional energy sources such as diesel generators (DGs), telecom companies can lower their operational expenses.

Indeed, the telecommunications industry in India, like in other countries, faces the challenge of balancing technological advancements and environmental sustainability. The sector has witnessed tremendous growth, with a large consumer base and an expanding network infrastructure. However, this growth has also led to significant energy consumption and carbon emissions, thereby increasing the adoption of green practices to mitigate its impact on the environment.

In India, the telecom industry contributes approximately 9 per cent to the carbon footprint. While this may seem relatively low compared to other industrial sectors, it is essential to recognise the need for further reduction. With improved grid availability and its expansion to rural locations, there has been significant progress in terms of grid accessibility. Despite these efforts, 35-40 per cent of telecom tower sites in India are still dependent on DGs as a source of backup. However, telcos have made efforts and conducted trials to make solar power solutions economically viable.

In the past, telcos utilised 4-5 kW of solar power per site, which has now increased to 10 kW per site due to the deployment of additional base transceiver stations (BTSs)/eNodeBs for 4G/5G networks. However, deploying solar power and associated energy storage solutions is a capex-heavy exercise.

All three private sector telcos in India have ramped up their efforts to reduce GHG emissions and enhance operational sustainability. For instance, Bharti Airtel has committed to reducing absolute Scope 1 and 2 GHG emissions by 50.2 per cent and Scope 3 GHG emissions by 42 per cent by financial year 2031 (using 2021 as the base financial year). The first two categories represent the direct emissions generated by telco operations and purchased energy, while Scope 3 accounts for indirect emissions, including the supply chain. The telco has committed to achieving net zero emissions (aligned with 1.5 °C emission scenarios) by 2050, following recommendations from Science-Based Target Initia­tives (SBTi). Airtel is also expanding the use of green energy across its operations and with its partners by utilising open access green energy and solar power.

Further, Reliance Jio has set an SBTi-validated target of 76 per cent reduction in its absolute Scope 1 and Scope 2 GHG emissions and 66.5 per cent in absolute Scope 3 GHG emissions by the financial year 2028, compared to the base financial year 2020. The telco has also committed to increasing its annual sourcing of renewable electricity from 1.2 per cent in financial year 2020 to 100 per cent by 2029, and to continue sourcing 100 per cent renewable electricity through financial year 2030. In addition to setting up 161 MW of solar power across over 17,000 sites, Jio has started using wind power and methanol fuel cells to reduce its carbon footprint. The operator has minimised its use of DGs by implementing initiatives such as optimisation of DG run-hours and time division duplex (TDD).

While Vodafone Idea Limited (Vi) has not yet announced its net-zero target, it has taken steps to reduce its GHG emissions across operations. With over 75 per cent of the telco’s base transceiver stations (BTSs) being outdoor, it has achieved a 25 per cent reduction in energy consumption compared to indoor BTSs. Vi’s diesel elimination project to reduce its carbon footprint covered over 13,000 sites in the financial year 2023, with solar-based generation at over 1,000 co-owned sites. More than 95 per cent of these sites were deployed at existing 2G sites and/or shared sites.

The Indian telecom industry is scaling up its efforts to build greener and more sustainable networks. However, the significant upfront investment required to deploy energy saving and renewable energy solutions presents a formidable challenge, particularly for companies already struggling to cover operational costs. Many renewable energy sources require additional storage technologies, further increasing the overall capital expenditure burden. Moreover, renewable energy solutions are not always feasible or price competitive due to the lack of sunlight, infrequent wind, or the need for expensive battery storage solutions.