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bhomikjain@gmail.com
                                          Bhomik Shah




Cellular Base Stations: Infrastructure Sharing, Carbon
Emissions and CDM Opportunities in India
Outline
• Background
• About the paper
• Indian telecom market
• Market share
• Carbon footprint
• Greening the base stations
• Opportunities for CDM
• Replication of ‘ITMA Model’
• Conclusion
• A mile ahead
June 2009
Nov. 2008
Jan. 2010
About the Paper

  Objectives
  • To assess the carbon footprint of mobile
  networks in the country
  • To assess the potential for CDM
  project/programme
  • To present a framework for cellular
  network service providers for CDM
About the Paper
  Scope
  Analyzing the diesel consumption by
  mobile networks and assess the
  opportunities for CDM and reducing
  carbon emission in India

  Methodology
  • Data Collection
  • Secondary sources
  • Quantitative Analysis
About the Paper

  Literature Review
  • UNFCCC
  • GSM Association, London
  • IPCC
  • Industry Reports
  • Annual Reports
  • Telecom India
  • TRAI
  • MNRE
  • MoEF
  • Communication Networks etc.
India: The fastest Growing Telecom market in
the World
• The second largest mobile market
• From 6.40 million in 2002 to 670 million subscribers
in Aug. 2010
• 47% Growth in last 12 months
• Monthly addition of 15-20 million subscribers




              Source: TRAI, Telecom India 2010
Aug. 2010 wireless tele-density 56.6

                                           Growth
                                           driven
                                           by
                                           rural
                                           market




*Based on TRAI data
Expansion in rural area: Infrastructure
building
• April 2010: 337 000 cellular towers/BTS
• 237 000 in 11 years
• 100 000 in 1.3 years




                                (Source: GTL & Telecomm India)
Mast

                                Antenna A
Cellular
Infrastructure                                 Antenna B



                   Battery




                 Generator

                    Air Cond.

                                            (Source;
                                            Vodafone 2010)
Indian Cellular Infrastructure Industry

                      Cellular towers’-ownership
                                          14%
108000
                                                                  Independent
                                                                  companies
                                                  15%             Operator owned
          60000
                      50000                                       Joint Ventures
                     71%           38000
                                                33000   32000


                                                                   7100      8900


 Indus   BSNL/MTNL    Reliance   Quippo-WTTIL    GTL    Bharati     ATC      Others
                                                          (Source: GTL Infratel 2010)
Carbon Footprint

• A BTS with one operator requires 3-4 kW of
electricity
• A fully utilized BTS with four operators
requires 8kW of electricity
• India’s energy
infrastructure calls for
massive Diesel
Generator (DG) use
Carbon Footprint

                     BTS dependence on DG sets
              10%
      20%                           Off Grid (18-24 hours
                                    per day)
                      20%           Poor Grid (Min. 10 hours
                                    per day)
                                    Unreliable Grid (2 to 6
                                    hours per day)
                                    Others (No DG)
        50%



              (Source: GTL Infratel, 2010 & GSMA London 2010)
Carbon Footprint

           • A single DG set consumes 2.7 litres of diesel/hour*
           • One litre diesel combustion emits 2.64kg carbon**
           • Average DG dependence Seven hours in a day*




Source: * Hansson, A. 2010
          ** IPCC, 2007
Carbon Footprint


Diesel consumption per day    2156899*2.7 = 5823360 ltrs
Diesel consumption/Annually   5823360*365 = 2.12.billion ltrs
CO2 emission per day          5823360*2.64 = 15373670 kg
TCO2 emission per day         15373 TCO2
TCO2 emission/Annually        5.61 million TCO2
Greening the base stations
       • TRAI has issued guidelines to operators to
       switch to renewable energy resources for off-
       grid base stations
       • A few operators are adopting
       • Use of solar/wind/hybrid/fuel cell
       • Bharti Airtel targeting 2000 RE based sites
       Saving US$ 16.6 million/annually
       • Aircel & Vodafone launched green BTS

“The green drive will prevent these
engines of development (BTS) from
becoming grave environmental
hazards” -MNRE Official
Greening the base stations
               “Many of the mobile service providers do emit more
               carbon from their India operations than their global
               operations outside India”
               Vodafone’s India operation: 1.90 MtCo2/annually
               Vodafone’s global operation outside India:
               1.31MtCO2/annually

               •Focus on solar with improved
               Technology
               • 72 hours back up
(Source:       • 25 years of life
Planet Earth
Aug. 2010)
CDM Opportunities: CDM PoA

                  Operators
                   Owned
                  Companies
    Independent
       Tower                  Operators JVs
     Companies

                    Indian
                   Telecom
                    Market
                   Alliance
                    (ITMA)
CDM
Opportunities:
CDM PoA
CERs calculation (annual) for off–grid fully DG dependent
        Sites
            Description           Calculations for     Estimate for Year
                                  Year 2010            2013*
Potential   Total number of BTS   337,000              463,000
CERs        Fully DG run          30,000               46,000
            Diesel Consumption    710 million litres   1.09 billion litres
            CO2 Emissions         1.85 million tons    2.82 million tons
            CERs                  1.85 million         2.82 million
            Monetary Value        US$ 22.2 million     US$ 33.84 million
CERs calculation for poor grid connected sites (Annual)

           Description                 Calculations for      Estimate for Year
                                       Year 2010             2013
Potential
          Total number of BTS          330,000               463,000
CERs
           DG run (10hrs/day)          60,000                90,000
           Diesel Consumption          591 million litres    887 million litres
           CO2 Emissions               1.54 million tons     2.30 million tons
           CERs                        1.54 million          2.30 million
           Monetary Value              US$ 18.48 million     US$ 27.6 million

           Cost of Going for CDM PoA: 15-25% of Monetary value
Replication of ‘ITMA Model’

  • China
  • Pakistan
  • Bangladesh
  • Indonesia
  • Sri Lanka
   • Approximately 800 000 BTS
   • 10% switch to RE
   • 5Million CO2e/CER annually
Conclusion
• High potential for CDM
• Need of the hour
• Enhanced/improved technology has a
role to play
• Cooperation among the players is
essential
• Greening the BTSs will lead to financial
incentives as well
• Initial Capex is a major concern
A mile ahead..
• Providing the surplus power to health
centers
• Schools
• Community centers
 and helping in building social infrastructure
 Nigeria is following the same..
Thank You for your attention


    Email: bhomikjain@gmail.com

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Cellular Base Stations: Infrastructure Sharing, Carbon Emissions and CDM Opportunities in India

  • 1. bhomikjain@gmail.com Bhomik Shah Cellular Base Stations: Infrastructure Sharing, Carbon Emissions and CDM Opportunities in India
  • 2. Outline • Background • About the paper • Indian telecom market • Market share • Carbon footprint • Greening the base stations • Opportunities for CDM • Replication of ‘ITMA Model’ • Conclusion • A mile ahead
  • 5. About the Paper Objectives • To assess the carbon footprint of mobile networks in the country • To assess the potential for CDM project/programme • To present a framework for cellular network service providers for CDM
  • 6. About the Paper Scope Analyzing the diesel consumption by mobile networks and assess the opportunities for CDM and reducing carbon emission in India Methodology • Data Collection • Secondary sources • Quantitative Analysis
  • 7. About the Paper Literature Review • UNFCCC • GSM Association, London • IPCC • Industry Reports • Annual Reports • Telecom India • TRAI • MNRE • MoEF • Communication Networks etc.
  • 8. India: The fastest Growing Telecom market in the World • The second largest mobile market • From 6.40 million in 2002 to 670 million subscribers in Aug. 2010 • 47% Growth in last 12 months • Monthly addition of 15-20 million subscribers Source: TRAI, Telecom India 2010
  • 9. Aug. 2010 wireless tele-density 56.6 Growth driven by rural market *Based on TRAI data
  • 10. Expansion in rural area: Infrastructure building • April 2010: 337 000 cellular towers/BTS • 237 000 in 11 years • 100 000 in 1.3 years (Source: GTL & Telecomm India)
  • 11. Mast Antenna A Cellular Infrastructure Antenna B Battery Generator Air Cond. (Source; Vodafone 2010)
  • 12. Indian Cellular Infrastructure Industry Cellular towers’-ownership 14% 108000 Independent companies 15% Operator owned 60000 50000 Joint Ventures 71% 38000 33000 32000 7100 8900 Indus BSNL/MTNL Reliance Quippo-WTTIL GTL Bharati ATC Others (Source: GTL Infratel 2010)
  • 13. Carbon Footprint • A BTS with one operator requires 3-4 kW of electricity • A fully utilized BTS with four operators requires 8kW of electricity • India’s energy infrastructure calls for massive Diesel Generator (DG) use
  • 14. Carbon Footprint BTS dependence on DG sets 10% 20% Off Grid (18-24 hours per day) 20% Poor Grid (Min. 10 hours per day) Unreliable Grid (2 to 6 hours per day) Others (No DG) 50% (Source: GTL Infratel, 2010 & GSMA London 2010)
  • 15. Carbon Footprint • A single DG set consumes 2.7 litres of diesel/hour* • One litre diesel combustion emits 2.64kg carbon** • Average DG dependence Seven hours in a day* Source: * Hansson, A. 2010 ** IPCC, 2007
  • 16. Carbon Footprint Diesel consumption per day 2156899*2.7 = 5823360 ltrs Diesel consumption/Annually 5823360*365 = 2.12.billion ltrs CO2 emission per day 5823360*2.64 = 15373670 kg TCO2 emission per day 15373 TCO2 TCO2 emission/Annually 5.61 million TCO2
  • 17. Greening the base stations • TRAI has issued guidelines to operators to switch to renewable energy resources for off- grid base stations • A few operators are adopting • Use of solar/wind/hybrid/fuel cell • Bharti Airtel targeting 2000 RE based sites Saving US$ 16.6 million/annually • Aircel & Vodafone launched green BTS “The green drive will prevent these engines of development (BTS) from becoming grave environmental hazards” -MNRE Official
  • 18. Greening the base stations “Many of the mobile service providers do emit more carbon from their India operations than their global operations outside India” Vodafone’s India operation: 1.90 MtCo2/annually Vodafone’s global operation outside India: 1.31MtCO2/annually •Focus on solar with improved Technology • 72 hours back up (Source: • 25 years of life Planet Earth Aug. 2010)
  • 19. CDM Opportunities: CDM PoA Operators Owned Companies Independent Tower Operators JVs Companies Indian Telecom Market Alliance (ITMA)
  • 21. CERs calculation (annual) for off–grid fully DG dependent Sites Description Calculations for Estimate for Year Year 2010 2013* Potential Total number of BTS 337,000 463,000 CERs Fully DG run 30,000 46,000 Diesel Consumption 710 million litres 1.09 billion litres CO2 Emissions 1.85 million tons 2.82 million tons CERs 1.85 million 2.82 million Monetary Value US$ 22.2 million US$ 33.84 million
  • 22. CERs calculation for poor grid connected sites (Annual) Description Calculations for Estimate for Year Year 2010 2013 Potential Total number of BTS 330,000 463,000 CERs DG run (10hrs/day) 60,000 90,000 Diesel Consumption 591 million litres 887 million litres CO2 Emissions 1.54 million tons 2.30 million tons CERs 1.54 million 2.30 million Monetary Value US$ 18.48 million US$ 27.6 million Cost of Going for CDM PoA: 15-25% of Monetary value
  • 23. Replication of ‘ITMA Model’ • China • Pakistan • Bangladesh • Indonesia • Sri Lanka • Approximately 800 000 BTS • 10% switch to RE • 5Million CO2e/CER annually
  • 24. Conclusion • High potential for CDM • Need of the hour • Enhanced/improved technology has a role to play • Cooperation among the players is essential • Greening the BTSs will lead to financial incentives as well • Initial Capex is a major concern
  • 25. A mile ahead.. • Providing the surplus power to health centers • Schools • Community centers and helping in building social infrastructure Nigeria is following the same..
  • 26. Thank You for your attention Email: bhomikjain@gmail.com