Safaricom Kenya gets greener with alternative energy Kenya’s leading operator, Safaricom, adopts an energy solution combining wind, solar power, and diesel not only to fill the power shortage plaguing Kenya’s mobile communications networks, but also to fulfill its social responsibility for environmental protection. By Xu Lixing & Pan Tao Editor: Pan Tao pantao@huawei.com Win-Win / JUN 2009 38 Winners The adoption of alternative energy allowed Safaricom to expand its business in the off-grid areas, and at the same time, reduce energy-related costs. K enya is famed for the Masai Mara Game Drive Reserve, which embodies the world’s largest wildlife protection zone and glories as the backdrop of myriad National Geographic photos. As one of Africa’s most popular tourist resorts, Kenya has received much attention from both the Kenyan government and the international community. Safaricom as the largest operator in Kenya has been trying to maximize its contribution to environmental protection while maintaining its dominant position in east and central Africa. Seeking a green energy Safaricom’s network features 1,700 base stations that cover 80% of the Kenyan population with a range of voice and data products and services. These base stations are distributed not just in large cities such as Mombasa and Kenya’s capital, Nairobi, but also in the remote northern and eastern areas of the country, including rural and mountainous areas. Due to an incomplete power supply infrastructure, electricity coverage in Kenya is relatively low. Many areas have no electricity supply, with the coverage rate in rural areas reaching just 30%. This inhibits the development of a full telecom infrastructure in rural areas and roads. Around 25% of Safaricom’s base stations depend solely on diesel generators to supply power. Some areas are covered by power grids but suffer frequent power failures, meaning that the affected base stations are forced to rely on diesel generators for power supply most of the time. 39 Safaricom previously used 1,500 diesel generators to generate power for its base stations, which failed to conform to Kenya’s environmental protection policy and also incurred high maintenance and refilling costs. At the GSMA World Mobile Congress 2009, CEO of Safaricom, Michael Joseph remarked, “We spent a lot of money on diesel, not just diesel itself, but also on the logistics of its supply. We have something like a hundred tankers running continuously across the country to top up our sites. It’s extremely expensive.” Moreover, theft and adulteration of diesel often occur on the way to or during refilling. To provide communications services for fishermen at sea, Safaricom extended its network to cover some isolated islands far from the shore. Unfortunately, diesel generators on these islands cannot be refilled in time. Safaricom urgently needed a new energy source to reconstruct old sites, build new ones, reduce OPEX, and improve network stability. Safaricom began seeking a green energy solution as early as 2003. The green practice Located in a tropical monsoon zone, most of Kenya enjoys a tropical, savanna climate. With average altitudes ranging from 1500m to 1700m, Kenya is rich in wind and solar energy resources. As a result, Safaricom decided to utilize these sustainable natural resources to construct a green communications network. To help Safaricom utilize the alternative energy, Huawei proposed a site energy solution that Win-Win / JUN 2009 combines wind power, solar energy, and diesel generators. Solar energy and wind power provide a stable and reliable power supply for base stations, with the original diesel generators retained to back up the solution. The two natural energy sources complement each other to yield a consistent power supply both day and night and during the rainy and dry seasons to deliver unparalleled coverage and optimal resource utilization. Retaining the diesel generators adds flexibility, and further guarantees an unbroken power supply. In this way, the new green solution erases the problem of electricity provision across the extended network and significantly reduces OPEX. A Masai habitation 50km from Nairobi was the first Safaricom site reconstructed with the Huawei complementary energy solution. This area is not covered by power grids and local residents use small wind turbines to generate electricity for light. The previous dual diesel generators deployed by Safaricom consumed too much diesel and required extensive maintenance, which raised costs to an unsustainable level. Furthermore, the gases emitted were highly polluting. After site renovation, test data from a trial run indicated that the diesel generators now run just 1.32 hours per day on average, and that diesel consumption was reduced by over 95%, which in turn reduced fuel transportation and maintenance costs by more than 90%. Having visited the reconstr ucted site at the Masai habitation, the Safaricom CTO enthusiastically welcomed the reduced OPEX and carbon emissions, and praised the solution as a good choice for Safaricom to expand network coverage to remote areas. Faith in going green The adoption of alternative energy allowed Safaricom to expand its business in the off-grid areas, and at the same time, reduce energy-related costs. This has effectively consolidated the leading position of Safaricom in the Kenyan telecom market, and augments communications convenience and reliability for local people and visitors. In some areas, solar and wind energy alone is sufficient to provide enough electricity for base stations, and sometimes generates surplus electricity. Safaricom fully utilizes the surplus energy by sharing it with the local community, who use it to charge their mobile phones. Safaricom has also built Internet cafes to bring even greater convenience for local people. At the same time, people who benefit from Safaricom’s surplus electricity have voluntarily assumed the role of “energy guards” to ensure that equipment such as solar panels are not stolen. After seeing the benefits, Safaricom is ready to further explore the green energy field. Mr. Joseph expressed his strong faith in going green, “We will deploy alternative, green energy where we need it now. Kenya has many sites that are off the national grid. Even though we’re on-grid, we will also deploy alternative energy as well to realize economic benefits.” He then added, “The largest challenge of green energy is the high CAPEX arising from initial installation. Although the costs of building a green base station are higher than those of a traditional base station, this shall drop over the long term.” Win-Win / JUN 2009 40