EVENT: Asian Development Bank, Clean Energy Forum

Date: June 5th , 2012

Telecom Towers as Anchor Loads Using Green Power for Telecom Power

2011 BALLARD POWER SYSTEMS, INC. ALL RIGHTS RESERVED.

Communication Systems in Remote Areas

Telecom Systems are often in off-grid or
poor-grid areas with high outages but cover over 75% of the worlds population remote communities empowering them

Telecom sites are a key to development of They are centrally located in small villages
or towns to ensure best coverage

BTS Power Consumption (W)

Recent Developments Telecom system power is being dramatically reduced

1995 to 2012

with 3G technology - 35% for WCDMA This allows for more power for other applications New Telecom equipment is more heat tolerant = no requirement for cooling z Green technologies have become comparable in CAPEX and lower in OPEX toward Diesel Generators Diesel Generators are mostly used for these remote locations today Increase in mobile commerce and payments Growth in outsourcing of Power by Telcos
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Telecom Market
Wireless Telecom Market
$2+ billion/yr spent on DC telecom backup power or remote power, or which roughly 40% is for power and fuel in developing countries Base stations have excess power and there are 640,000 off-grid BTSs globally by 2012 (end). Stagnation of revenue growth of many Telecom operators
2010 Cellular Base Stations Additions

6% 8%

3% 3%
AsiaPac ME & Africa W.Europe

22%

58%

C./S. America N.America E. Europe

Most are in India, China, SE Asia, and Africa, where backup to grid Clean Energy Future Smarter Solutions for a needed most.

Sources: In-Stat, 2008; ABI, 2009; personal communication

Green Power Topology vs Genset

Mains
Biomas Propane/NG Methanol Kerosene
Fuel Hydrogen Processor

Hydrogen Fuel Cell Power

Wind and Solar Power

AC
Transfer Switch

Rectifiers

DC

Diesel Generator

Fuel Cell will eliminate a generator and reduce size of battery bank
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Telecom Load

Batteries

Barriers to using Clean Energy in Telecom Towers

Diesel Generators are cheap and ubiquitous. Access to Diesel is generally easy Communication and Knowledge of Green Green technology CAPEX is higher and
Technology is limited even at higher levels of Telecom companies financing needs to be developed further.

Problems with Generators They require extensive maintenance = every 3 months Often break down and are unreliable = last only 5-10

years and have many moving parts Need long start up = large z battery banks Have extensive theft of Diesel and Batteries: 5-10% with up to 20% in India and parts of Africa Are very polluting, noisy and an environmental hazard More prone to Natural Disasters
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Business Case and Other Challenges

There are many technologies which

Challenges Changing mindsets of Telecom companies Understanding of the new technologies Upfront Financing of the Green

now can compete with Diesel Generators

It Fuel Cell is the fastest payback while there is also Solar, Wind, etc Operational Costs are Dramatically reduced by up to or more that of Generators implemented ex. Solar and Fuel Cell, Wind and Solar

z technologies as they require a higher CAPEX (though lower OPEX) Initial deployment of Green solutions requires understanding the technology

Hybrid Green solutions can also be Various Business Models

Third Party Operators or Energy Service Company buys the power and re-sells to the community
Telecom operator can sell to the Community via contractors = additional revenue stream

Micro-finance schemes support by Govt but owned by Communities

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Governments Role
It is in the best interest of governments to
promote Green solutions :
Reduces subsidy on Diesel lowers debt servicing Expand electrical generation spur economy of rural areas and GNP

Reduces Green House Gases and creates a

better and more reliable environment

Allows for Rural power needs cost effectively Can create better health care with Cold Chain
= immunization, etc

Suggested Role Incentives such as tax breaks to Telecom companies who

use green technology Financing schemes or low interest micro-loans to small z companies who may want to build a small business Promote and educate the population on the advantages of green technology in expansion of the grid Engage private financial partners to assist with micro schemes to use this model
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Incentives Available
Little has been done to support using Telecom
sites as Anchor Loads, some pilots

Considering there is a positive business case,

more can be done to promote this concept or poor grid area outside existing regulations in most cases (under 10kw)

Regulation is limited as it is often an off-grid India has made some initiatives

What Can be done ? Government can give incentives for Green credits Lowering of taxes, low interest loans, etc Increase cooperation between the local Power Utilities

and Telecom companies z Develop Micro-finance schemes via private or public institutions Work with NGOs and support expansion of this market Further educate stakeholders on advantages of Green technology in this sector
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Why Green Power in Telecoms as Anchor Loads

Green Technology on Telecoms Sites = Increased Reliability and
Reduced Servicing of remote Telecom sites

Greater expansion of power to remote and developing communities

= greater productivity (Community Power for Mobile CPM)

Extensive reduction in Operating expenses for Telecom companies

by using Green power and new business model for addl revenue new business model (note penetration rates below)

Telecom sites deployed with additional power and available for this POWER + COMMUNICATIONS = DEVELOPMENT

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Thank you

Alan Kneisz
Regional Director Asia Pacific & Oceania Mobile: + 6016 217 0877 Email: alankneisz@ballard.com

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Telecom as Anchor Power Global References

References:
Rockefeller SPEED project in India with various companies
Chi Em, a microfinance org serving Huoi Pung and other ethnic minority villages in Northern Vietnam. SunPower Afrique is bringing sustainable energy to microfinance organizations in Togo. Grameen Shakti is a solar power pioneer in Bangladesh, affiliated with Grameen Bank. Viom Networks in India with Tata Teleservices

Companies
: Off Grid Electric :
http://offgrid-electric.com

: OMC Power:
http://www.omcpower.com/telecom

: Flexenclosure:
http://www.flexenclosure.com/en/e-site#community-power Smarter Solutions for a Clean Energy Future
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Back up

Back Up Slides

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