Network infrastructure providers, the architects of the physical and virtual networks that underpin global communication, are at the forefront of enabling advanced technologies such as 5G and edge computing. Their work is crucial in meeting the escalating energy demands of these technologies.
- 5G Network Deployment: The deployment of 5G networks is a significant energy challenge for network infrastructure providers. 5G requires dense networks of small cells and base stations to handle the massive data traffic and ensure low-latency connections. Each base station and antenna adds to the energy load, increasing the overall power consumption of the network.
- Edge Computing: Infrastructure providers are deploying edge computing systems closer to end users to improve performance and reduce latency. This involves building numerous small-scale data centers that collectively increase the sector’s energy consumption. While these systems improve user experience, they add pressure to reduce energy waste and increase efficiency across the network.
The rapid growth in mobile data traffic overall has driven the industry to explore technologies and strategies for significantly improving the energy efficiency of mobile networks. Research published by Ericsson estimates that global mobile data traffic reached 51 EB/month in 2020 and is projected to grow to 226 EB/month by 2026, with a compound annual growth rate (CAGR) of 28%. As a result, enhancing energy efficiency is now essential for mobile networks to meet future traffic demands in both an environmentally and economically sustainable way.
To support a sustainable pathway for 5G’s immense network evolution, infrastructure providers must explore energy-efficient technologies, smart grid integration, and renewable energy sources. Additionally, optimizing the design of 5G networks for energy efficiency and reducing reliance on fossil fuels for power can significantly lower emissions. By investing in sustainable network upgrades and green energy procurement, infrastructure providers can play a crucial role in decarbonizing the telecommunications value chain.
Collaborative approaches to greening networks and their supply chains
Network infrastructure providers are under growing pressure to meet regulatory compliance, sustainability goals, and investor expectations, while maintaining consumer trust. As the telecommunications industry intensifies its focus on decarbonization, infrastructure providers need comprehensive strategies to reduce their carbon footprint. Key initiatives include cutting direct (Scope 1) emissions from operations, reducing indirect energy-related (Scope 2) emissions tied to electricity use, and addressing supply chain (Scope 3) emissions.
Network infrastructure providers can decarbonize through various market-based solutions that reduce emissions across their operations. Some key options include:
- Sourcing Renewable Energy:
- Power Purchase Agreements (PPAs) and Virtual PPAs (VPPAs): Sourcing long-term renewable energy contracts is an effective decarbonization lever for network infrastructure providers. By entering into PPAs or VPPAs, providers can purchase clean energy (wind, solar, hydro) to power their infrastructure, reducing Scope 2 emissions. These agreements also offer financial predictability in energy costs and demonstrate a commitment to sustainability.
- Energy Attribute Certificates (EACs): Where available, operators can obtain EACs (such as Renewable Energy Certificates in the US, Guarantees of Origin in Europe, or I-RECs in Asia), allowing network infrastructure providers to claim renewable energy use for operations, even when on-site renewable generation isn't possible. This helps neutralize carbon emissions tied to their electricity consumption.
- Supply chain carbon management: Network infrastructure providers can engage with their suppliers to reduce Scope 3 emissions by encouraging them to adopt cleaner energy sources and more sustainable manufacturing processes. By facilitating green procurement strategies, companies can reduce the carbon footprint of equipment and components used in their networks.
- Battery storage solutions: Companies can invest in large-scale battery storage systems powered by renewable energy, enabling network providers to store energy during off-peak hours and use it during peak demand. This helps minimize reliance on fossil-fuel-based energy sources, particularly for backup power and reducing grid demand.
- Investment in carbon-neutral technologies: Companies can look for opportunities to invest in carbon-neutral or low-carbon technologies. For network infrastructure providers, this could include energy-efficient data centers, 5G small cells, and smart cooling systems that reduce energy consumption and associated emissions.
- Biofuel for backup generators: Network infrastructure providers can switch to low-carbon biofuels like HVO for their backup generators, which are critical for maintaining network operations during outages. This shift helps reduce Scope 1 emissions by replacing conventional diesel with a cleaner alternative.
Meeting the growing demands of advancing mobile network technology while striving for a low-carbon future is a significant challenge. Network infrastructure providers can make meaningful progress by adopting focused decarbonization strategies.
At STRIVE by STX, we offer tailored solutions to help companies navigate their decarbonization journey, reducing environmental impact and driving sustainability across all operations. Reach out to explore how we can support your business in achieving its climate goals.
