Our first Pakistan & Afghanistan Working Group was conducted in Islamabad, Pakistan, on 20th & 21st of August 2013. The event was co-hosted by Telenor, with the support of the IFC in partnership with the Government of the Netherlands.
The two-day event showcased Mobile Operator initiatives to promote green power, and energy efficiency, as well as new technology developments and energy outsourcing for the telecom sector. Participants also separated into small groups to discuss the challenges of greening the network using either CAPEX or OPEX business models.
The Working Group gathered 57 delegates from 21 different organisations and triggered interesting conversations on the potential for green power. The break-out sessions were informative, allowing participants to share the challenges they faced in their efforts greening the network.
Highlights from the Working Group
DAY ONE
The Working Group opened with Nadeem A. Siddiqui, Chief Resident Representative of the IFC’s Pakistan Office, who presented the IFC activities in the region and highlighted their readiness to support green investment in the country.
Gyorgy Koller, CTO of Telenor, spoke of the company’s energy efficiencies initiatives (currently, Telenor has 48 solar-powered sites installed). Mr Koller mentioned that running the network with diesel generator was neither an environmental not a reliable option, due to the high cost of fuel and maintenance.
Pakistan’s Minister of State for Information Technology and Telecommunication, Anusha Rahman Ahmad Khan, stressed the possibility for MNOs to utilise Universal Service Funds programmes to promote their green initiatives. The government will support these green initiatives in Pakistan.
As GPM’s Asia Project Manager, I also introduced the findings of the GPM Afghanistan – Pakistan Market Analysis report and presented the growth status of Pakistan and Afghanistan’s telecom towers.
Arata Onoguchi, of the IFC, moderated the discussion on the ‘Challenges of Going Green.’ MNOs highlighted the absence of the OPEX business model proposed by vendors, which has made green power deployments grow slowly. The alternative CAPEX business model requires huge investments. In sum, financial incentives to green the network are still weak.
Mudassar Hussain Mian, Director of Infrastructure Deployment of Telenor, shared Telenor’s green power and energy efficiency activities and the challenges they encountered powering their BTS. He also raised the group’s green strategy, including Telenor’s efforts to reduce the network’s carbon footprint.
Warwick Dawes, CEO of Coolsure, discussed the multiple types of cooling system for BTS and core networks. He mentioned that by replacing existing split air conditioners with some efficient air conditioners, MNOs could save about 60% of their normal consumption.
Yamen Saleh, Sales Manager of NorthStar Battery, shared the company’s experience in battery technology. Mr Saleh illustrated the type of battery that could fit Pakistan’s current network situation. He also underlined the importance of finding the right battery solution for MNOs to make the correct business case calculation.
Michael Kutschenreuter, General Manager of Heliocentris, presented the company’s strategic roadmap for reducing dependency on diesel consumption. He also explained the participants on how their energy management system could provide up to 75% savings on diesel consumption and maintenance cost. He also presented how an OPEX business model works.
Muhammad Haroon, Manager of Service Infra of Interactive Group, described the potential of fuel cell technology and presented the results from their trials in Pakistan. He mentioned that the supply chain would not be an issue for MNOs who have the willingness to deploy fuel cell technology on their sites.
Rahul Shah, MECS Asia Project Manager, briefed participants on the activities of GPM’s sister programme focused on improving access to energy and water service using mobile enabled technology. Mr Shah shared MECS’s objectives for its current phase of development and presented the MECS Innovation Grants Fund launched in May 2013. He emphasised the opportunities for MECS in Pakistan and Afghanistan.
DAY TWO
S. Shaheryar Ali, Senior Manager Strategic Site Solution of Warid Telecom, opened the session, presenting the company’s current energy efficiency activities. By implementing an energy efficiency programme and hybrid solutions, Warid Telecom could achieve 30 to 60% savings compared to their current consumption.
Lars Elstrom, Eltek’s R&D Director, discussed their solar site implementation and some examples of problems that can occur on site. Salman Khalili, Power and Energy Management Solution Manager of LCC, discussed the benefits for MNOs in Pakistan of implementing an OPEX business model for their power management.
The break-out session was an opportunity for attendees to discuss their preferred way of going green: using a CAPEX or OPEX business model. Some of the key takeaways from the break-out session:
- To deploy green power, MNOs prefer to follow an OPEX business model whereas vendors prefer to go for a CAPEX business model
- Strong financial support is needed for a vendor to become an ESCO
- Vendors require a fair contract to ensure their ROI
- Vendors suggested they needed guidance on how to calculate an OPEX business model
- MNOs were interested in discussing further with vendors, as long as the latter can provide competitive energy pricing