According to a new report released by Guidehouse Insights, global telecom network providers will install nearly 121.9GW of cumulative new distributed energy generation and energy storage capacity between 2021 and 2030.
Factors driving telcos into deploying distributed energy generation and storage projects include high energy costs and the need to reduce carbon footprints.
More than 90% of telecom network operator costs are spent on energy, driving demand for energy-saving measures, according to the report.
LTE and 5G upgrades in emerging and developed markets are anticipated to more than triple electricity consumption hence the need by telcos to generate their own electricity, implement energy efficiency measures and ensure they avoid peak energy charges on main grid networks.
Nearly three-quarters of internet users are expected to access the internet via smartphones by 2025—the equivalent of nearly 3.7 billion people. The increasing number of mobile broadband users combined with the emergence of data-heavy mobile applications will likely drive exponential growth in mobile data traffic through 2030 and beyond, creating strong economic development and unprecedented opportunities to empower individuals across all socioeconomic classes.
Ricardo F. Rodriguez, research analyst with Guidehouse Insights, said: “Telecom operators account for 2%-3% of total global energy demand, making them some of the most energy-intensive companies in their geographic markets.
“With more than 90% of network cost spent on energy, consisting mostly of fuel and electricity, the demand for energy-saving measures from telecom operators is growing.”