The mobile communications networks that underpin our society are complex and omnipresent. Mobile networks account for about 160 TWh per year, and while that’s less than many other industries (it’s only about .7% of the world’s electricity), it means energy usage and efficiency is a focus – especially when it comes to managing costs. Within the telecommunications industry, energy costs already account for 10%-25% of operational expenditure (OPEX), with 80% of that going to RAN.
All that means is that there is tremendous pressure on communications service providers (CSPs) to manage network energy consumption efficiently and reduce costs at the same time network infrastructure is being built out to meet demand. However, there is a clear opportunity for CSPs to move from being purely power consumers to a more proactive and mutually beneficial interaction with the power grid. This means moving from being a passive energy user to more actively managing or even producing your own energy. It opens the door to a more decentralized energy system where CSPs have a unique opportunity to reduce costs and even grow new revenue streams while reducing carbon footprint.
Energy challenges and a time of transition
All this is happening in a time of transition for the energy grid as a whole. And the shift to renewable and fossil-free energy generation and electrification creates challenges for ensuring grid reliability. The intermittent nature of renewable energy sources, such as solar photovoltaic or wind, can create unique challenges for grid operators to match power generation with demand.
So far, utilities are addressing issues using tariffs or demand charges, or even imposing energy usage restrictions, meaning that peak power consumption periods are trending to become more challenging for energy providers.
Peak demand is a challenge because the unpredictability can lead to the grid getting overwhelmed – which can lead to costly outages, and inefficient operations. Getting more energy efficient is a good first step, but to really insulate themselves against risk, CSPs will need to look at more advanced solutions, like demand response (where customers are incentivized to reduce energy in peak hours), storage and smart grid technology.
As we continue to adjust, it’s also likely that new logistic and financial difficulties in matching power generation with consumption will arise.
This has a significant impact on our telecommunications networks.
Rising costs may likely be absorbed by CSPs, and any impediments to these networks’ reliability can have a significant domino effect on a world that relies more and more on constant communication for day-to-day function, including everyday consumers and industries undergoing rapid digitalization, like manufacturing.
Ref: City of San Jose, California Time-of-Use Electricity Rates Explained[1]
What this means for CSPs is that energy solutions have to move beyond just efficiency as the key metric. Moving forward, cellular site energy orchestration has to do three things:
- Reduce energy cost while maintaining user experience
- Progress toward Net Zero by reducing emissions and lowering consumption
- Create new revenue streams by participating in the energy market and becoming a virtual power plant
The Solution: intelligent operation for site efficiency and beyond
As the energy grids become digitized, decentralized, and decarbonized, networks need to focus on implementing network energy efficiency measures while maximizing the use of assets including batteries and renewables. This increased complexity makes an intelligent energy setup and an integrated approach to energy management and orchestration critical. CSPs that leverage advanced automation to not only optimize but monetize energy will be well positioned for the years ahead.
Ericsson Site Energy Orchestration is one such solution that uses machine learning (M/L) and AI RAN applications (rApps), RAN data and external data interfacing. In addition to finding efficiencies, this solution enables service providers to cluster sites and orchestrate the network sites as a virtual power plant (VPP), which is a network of decentralized energy sources. These can mirror the decentralized nature of telecom networks and allow CSPs to participate in various utility plans in different markets.
By optimizing operations, CSP’s can reduce peak-demand charges in their energy bills, lowering costs and creating opportunity to monetize their investment in site infrastructure. Some CSP’s are already seeing results with methods like peak shaving, load shifting, and hybrid energy models with onsite renewables and lithium batteries.
In addition to the cost savings, one of the most important aspects of this approach is that it allows industry players to move toward Net Zero goals by minimizing their carbon footprint — an indirect impact that stems from energy balancing in the power grids for network operations, avoiding the need to rely on reserve generation plants that are fossil fuel-based. This simultaneously reduces costs, minimizes emissions, and supports the energy transition by tactically avoiding reliance on fossil fuel power generation.
Key features of energy orchestration
The Ericsson Site Energy Orchestration enables CSPs to achieve the following:
- Reduce OPEX: By implementing peak load shaving and load shifting strategies, both help reduce energy cost, by enabling CSP to reduce peak demand charges by using energy stored in onsite batteries or shifting site energy consumption to off-peak times when electricity costs are lower.
- Increase incremental revenue: by participating in demand response programs, where utilities provide financial compensation to participating customers for voluntarily reducing their power consumption.
In the field, these strategies are already seeing results. Commercial operations in northeast Europe have achieved 8% savings in their energy costs through peak load shifting. Proof of concept live sites in the US have managed a similar 25% reduction, and sites in central Europe are seeing 36% savings with hybrid energy with on-site renewables and a load shift to batteries.
Today, it’s not enough for CSPs to simply find efficiencies in their cellular site infrastructure if they want to achieve consistent cost savings and hit Net Zero targets. It will take truly intelligent operations that utilize AI to proactively manage demand, as well as new revenue streams through participating in the energy market, to move beyond efficiency and ensure the networks of the future are sustainable.