07 October 2024

How big an impact is unreliable energy having on Africa’s wireless communications services – and are renewables the answer?

Energy disruptions are having a significant impact on Africa’s wireless communications sector – and given that consistent energy is essential to maintaining operations, this issue is critical.

According to the GSMA’s ‘Energy Challenges for Mobile Networks in sub-Saharan Africa’ report, mobile operators in sub-Saharan Africa face multiple energy-related challenges, including power outages, lack of grid access, high energy costs, and difficulties purchasing and connecting to renewable energy. Nearly all operators (who responded to the survey) said that their three biggest energy challenges were power outages, high and rising energy costs, and a lack of grid access; and approximately half of responding operators – mostly in South Africa and the DRC – reported difficulties purchasing renewable energy and a lack of transmission and distribution infrastructure to connect to renewables.

Powering the infrastructure

For Africa’s towercos, energy costs represent a substantial portion of operational expenditure, with some estimates suggesting that power accounts for 30-60% of total operating costs. This is exacerbated by heavy reliance on diesel generators, which are costly due to rising fuel prices and high carbon emissions.

“Towercos, with 4G and 5G, have seen a rapid increase in the power demanded on their access equipment, requiring more powerful systems,” confirms Vertiv’s technical director for Africa, Jonathan Duncan. “The additional power security and potential disruption is not acceptable for users. As a consequence, the towerco infrastructure has to become more resilient, with larger energy storage requirements on these edge sites. Along with this, we see an increase in concurrent deployment of solar systems, where space allows. The nature of this cyclic power requirement further challenges the type of technology we deploy.”

Troubles with energy supplies have indeed been amplified by the ongoing expansion of connectivity across the continent. With more users than ever before signing up to 4G/5G services, the demand for more coverage, new infrastructure, and higher quality connectivity requires even more power.

“Due to unreliable grid power, many operators and towercos depend on diesel generators, which are expensive to run and maintain. The fluctuating cost of diesel fuel further exacerbates financial pressures,” says Sibongile Thobakgale, project sales manager (data centre) for Southern Africa at Aggreko. “The heavy reliance on these generators leads to frequent maintenance and repair needs, increasing overall operational expenses. Additionally, investing in and maintaining these energy sources can be complex and costly, especially in remote areas. Another challenge faced by network operators and towercos is battery theft. When the batteries are easily accessible, they are often stolen, which means that there is no back-up power in the event of a power outage, which again results in financial losses.”

Power outages can also cause considerable network downtime, negatively impacting the reliability of mobile and internet services, resulting in lower customer satisfaction and potential subscriber loss.

“Africa has seen its share of the global energy disruption of network operators over the years, which is a huge challenge,” says Nsikak Ekere, communication associate, Bridgia. “Nonetheless, the energy mix provides renewable energy as an alternative, especially in the era of climate change and green energy. The demand for solar panels is on the increase, and green hydrogen and natural gas (NG) can provide economical, environmentally friendly energy and electricity supply to support data centres, operators, and towercos in delivering consistent, reliable services.”

Hampering digital transformation

Without a doubt, Africa’s unreliable energy supply continues to hold back digital transformation.

“Reliable energy is a fundamental requirement for the operation of digital infrastructure, including mobile networks, data centres, and internet services,” asserts Thobakgale. “Frequent power outages and the inconsistent energy supply make it difficult for network operators and service providers to maintain stable and reliable services. This impacts the quality of internet connectivity, leading to frequent downtimes, slower data speeds, and unreliable service, which in turn hinders the adoption of digital technologies by businesses and consumers.”

“Unreliable energy means that Africa sees additional costs with measures taken to mitigate these issues. This means investments are more selective as the ROI models are not always so feasible,” adds Duncan.

Ekere reports that, according to the International Energy Agency Electricity Midway Report in July 2024, global electricity demand is anticipated at 4% in 2024, a record high since 2007. Africa’s unstable electricity is affecting the QoS, quality of experience (QoE), operational delivery, and the quick ROI of digital transformation by companies.

The International Data Corporation 2023 report shows that Africa has 1MW of power supply and relies heavily on external sources. Africa is far behind when compared to their counterparts in America (88.5MW), Europe (73.93MW), and Asia (28.68MW).

“Be that as it may, many businesses have found a way to transition and leverage alternative sources of energy supply, particularly compressed natural gas (CNG) and solar energy,” says Ekere. “Africa can still succeed with the introduction of innovative energy models and other renewable sources of power supply by commercialising its large natural resource deposits.”

“The lack of a stable energy supply affects other critical sectors that are essential for digital transformation, such as education, healthcare, and e-governance. Schools, hospitals, and government institutions require reliable internet and power to implement digital solutions effectively. Without a stable energy foundation, these sectors struggle to leverage digital technologies to improve service delivery and efficiency, thereby slowing down overall socio-economic development,” shares Thobakgale.

With not-so-great power comes great responsibility

With digital transformation hindered, and large swathes of the populace being charged a hefty fee for unreliable mobile connectivity, whose responsibility is it to ensure reliable energy supply for wireless communications networks and related infrastructure?

Ekere believes that the government is ultimately responsible for establishing cutting-edge infrastructure that can efficiently provide an affordable system of energy supply for wireless communications.

“However, the internal power supply for infrastructure is largely fuelled by public-private partnerships,” says Ekere. “As a result, Africa is attracting international players like Microsoft, Huawei, and Equinix, and this can boost distinctively relevant infrastructures at the national and subnational level for telcos, wireless communication operators, and MNOs. This will facilitate an enabling environment for businesses to thrive. Also, it must put in place clear fiscal policies to address high taxing and multiple taxing, as well as regularly monitor the quality of service (QoS) and quantity of electricity delivery to wireless communications networks.”

“Ensuring a reliable energy supply for wireless communications networks and related infrastructure is a shared responsibility among multiple stakeholders, including governments, energy providers, network operators, and towercos,” adds Thobakgale. “Governments play a crucial role in establishing and maintaining a stable and efficient energy infrastructure. They must implement policies that promote investment in energy projects, incentivize the use of renewable energy, and ensure a regulatory environment conducive to the development of robust energy systems. Energy providers are responsible for delivering consistent and reliable power, investing in grid improvements, and adopting sustainable energy sources to reduce dependence on fossil fuels.”

Duncan, on the other hand, believes that “this responsibility lies with the towercos themselves; however, their business models will mean a higher cost to serve being pushed back onto the consumer; a higher cost per data MB than in other parts of the world. This becomes somewhat of an oxymoron, as these remote districts with lower income theoretically have the highest cost to serve. Should governments have some co-investment is a question that could be asked, and what about limiting ‘profiteering’?”

“Network operators and towercos must also take proactive steps to secure reliable energy supplies for their operations,” agrees Thobakgale. “They should invest in alternative energy solutions, such as solar and wind power, to reduce reliance on the often-unreliable grid power. Implementing energy-efficient technologies and infrastructure can minimize power consumption and improve operational efficiency.”

Hybrid solutions

Particularly on a continent like Africa with its ample sunshine, balancing sustainability with the need for reliable power should not be an insurmountable task.
Indeed, “operators can meet sustainability goals around energy consumption while ensuring reliable connectivity by investing in renewable energy sources and adopting energy-efficient technologies,” says Thobakgale. “By integrating solar and wind power into their energy mix, operators can reduce their dependence on fossil fuels and lower their carbon footprint. For instance, installing solar panels and wind turbines at cell tower sites can provide a steady supply of clean energy, reducing the need for diesel generators. This not only supports sustainability goals but also ensures more reliable connectivity by providing a consistent power source, even in areas with unstable grid power.”

Renewable energy is often considered the be all and end all for sustainable power generation. However, when the grid goes down, the best backup power solutions for Africa’s towercos and MNOs are hybrid systems, says Thobakgale, which combine renewable energy sources with traditional power generation methods.

“By integrating solar panels with battery storage systems, towercos and MNOs can harness and store solar energy during the day, ensuring a reliable power supply even during outages. Solar energy systems are not only sustainable but also reduce operational costs in the long run by decreasing reliance on expensive diesel generators,” says Thobakgale.

“Each situation and geolocation is different, however all should be trying to reduce their carbon emissions, so solar does seem attractive,” agrees Duncan. “However, on higher power sites, an availability of a football field sized space for panels may not always be practical. Lithium today seems to be the best energy storage solution due to its power density and high cyclic ability.”

“In addition to solar power, hybrid solutions that incorporate wind energy, where feasible, can further enhance the reliability of backup power,” adds Thobakgale. “Combining these renewable sources with diesel generators or other traditional power systems can create a robust and flexible energy solution. This approach ensures continuous operation during periods of low sunlight or wind.”

A low carbon future

In the absence of a complete, continent-wide overhaul of the power supply, and the desire to adopt more sustainable practises, Africa’s wireless communications industry could well be on the path to a low carbon future.

“The future of Africa’s energy has strong potential to be low carbon, driven by the continent’s abundant renewable energy resources and increasing investments in sustainable energy projects,” says Thobakgale. “Africa is endowed with vast solar and wind resources, making it well-suited for large-scale renewable energy generation. Many countries are already investing in solar farms, wind parks, and other renewable energy projects to diversify their energy mix and reduce reliance on fossil fuels. Technological advancements and decreasing costs of renewable energy technologies are making these options more accessible and economically viable for widespread adoption.”

Ekere believes that Africa is on the path of a low-carbon emission future with short term and long-term low emissions strategies (LT-LEDS) and has set an ambitious target both at the AU, ECOWAS, and at some national level through Nationally Determined Contributions (NDCs).

“Africa is significantly adapting and adopting mitigation strategies for climate change and energy-efficient systems,” says Ekere. “But currently, the reality is that there’s an increase in carbon activities, and Africa needs to reduce mineral and fossil fuel exploitation through resilient actions by the stakeholders. Africa must increase budgetary allocations for climate projects and the enforcement of green policies to achieve net-zero emissions by 2060. Africa also needs more advocacy, innovative research, public-private partnerships, and infrastructural development from the government to drive sustainable development.”

“International support and funding are playing crucial roles in accelerating the transition to low-carbon energy. Various global initiatives and partnerships aim to enhance Africa’s capacity to develop and implement renewable energy projects,” agrees Thobakgale. “For instance, the African Development Bank and other international organisations are providing financial and technical assistance to promote green energy solutions. Governments across Africa are also setting ambitious renewable energy targets and implementing policies to encourage private sector participation in the renewable energy sector. As these efforts continue to gain momentum, the continent is well-positioned to shift towards a low-carbon energy future, fostering sustainable development and mitigating the impacts of climate change.”

But how does Africa’s wireless communications sector compare with the rest of the world?

“The future of the world is ‘lower carbon’ paradigm,” concludes Duncan. “In Africa, we are a few years behind the rest of the world and in parts of the continent we do have carbon fuel reserves. It seems almost unfair that emerging markets should have to use more expensive energy solutions and ignore those carbon fuels on hand but being part of the ‘global village’ we are subjected to a dichotomy whereby we need to reduce carbon emissions and yet much of Africa needs development and electrification. However, this type of situation sometimes allows us to leapfrog technologies and adopt the latest and greatest available.”