Energy as a service

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Energy Service Company (ESCO) Model for Mobile Network Operators and Tower Cos. allows an OPEX (Operational Expense) problem to be resolved through an OPEX solution. Under Reon ESCO, Reon invests the CAPEX (Capital Expense) and maintains site operations while the operator pays for the energy usage at a pre-determined rate for a duration of 15 years.

ESCO (Energy Service Company) offers Energy as a Service to Mobile Network Operators (MNOs) and Tower Companies. Ageing power systems inclusive of gensets and batteries on most cell sites result in increased instances of downtime. In off grid and poor grid regions, diesel gensets often run 24/7, making fuel logistics expensive and critical for uninterrupted service. Furthermore, theft of fuel and equipment exacerbates the situation as energy continuity is not the core competency of any Mobile Network Operator (MNO) or Tower Co. This service allows customers to focus on their core competency and let the ESCO plan, build and operate their energy infrastructure.

ESCO business model has been calibrated to maximize renewable energy through smart use of advanced storage solutions.

Esco Case Study

Problem

The combination of network outages and high operational cost on roughly 90 sites was causing large deficits and negative impact on the tower portfolio.

Solution

A detailed site audit and analysis has now enabled maximum capacity of solar power for all sites. The sites now enjoy maximum uptime, reduced energy operational costs and a much lower carbon footprint. The SPARK application and site anti-theft equipment is providing enhanced real-time monitoring necessary for all preventive and corrective actions.

Impact

The sites have seen roughly 4% increase in network availability and a significant decline in the Total Cost of Ownership (TCO).

Reon ESCO continuously seeks long-term opportunities for energy efficiency, energy cost reduction, and cost predictability as energy generation and provision can constitute up to 60% of all annual operating expenses for tower sites.
Telecom assets (head offices, tele exchanges, data centers), you need to do wheeling because of limited spaces.

Wheeling

Wheeling electricity is the process of transmitting electricity from a producer to a user from one area to another. While wheeling policies aren’t fully utilized, wheeling at a larger scale can service a variety of energy demands without the restriction of land or roof space in the immediate vicinity.

An energy efficient future for mobile operators

We, at Reon, aim to expand our telecom tower services for multiple tenants.

Multi-tenant sites allow co-location of sites to multiple tenants at one time while reducing their time to market. This can create dramatic reductions in OPEX and CAPEX as with a small incremental investment MNOs and tower companies can have the capacity to accommodate multiple tenants/frequencies at the existing cell sites.

Reon ESCO multi-tenant solution provides a cost-effective way to expand cell coverage and incentivizes MNOs to deploy networks deeper into rural areas. Connectivity if endorsed at such scale could significantly accelerate digital inclusion in rural communities.

Power around the tower: Utilizing towers for rural electrification

‘Power Around the Tower’ blueprint falls under Reon’s sustainability initiative that aims to utilize surplus electricity from telecom towers for powering the nearby settlements.

As per the latest study conducted by World Bank suggests that as many as 50 million people in Pakistan may still live without access to the electric grid. Utilizing the telecom towers that have seen an unprecedented growth in the off-grid areas, hence presents a unique opportunity to provide electricity beyond the base stations and into the local communities. This offers not only a significant cost advantage, but also aggregates to wider macro-economic benefits.

The availability of energy is an integral part of the UN Sustainable Development Goals as highlighted under Our Impacts section. Localized impacts of clean energy access if offered will be visible in better healthcare and education, greater productivity in evening hours, irrigation pumping, varied income opportunities and lower emissions.

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Muhammad Usama

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