The Global System for Mobile Communications (GSMC) has called on African governments to take decisive action to enable investments in renewable energy projects, emphasizing the need for energy market reforms and streamlined permissions for renewable energy and grid infrastructure.
In its latest report titled Rural Renewal: Telcos and Sustainable Energy in Africa, the GSMC outlined strategies to bridge energy access gaps and promote the use of sustainable energy in expanding digital connectivity.
The report highlighted a significant opportunity for governments to play a pivotal role in fostering investment in green energy, benefiting both the telecom industry and underserved rural populations.
In Sub-Saharan Africa, renewable energy sources account for just over 20% of electricity generated from the grid. However, mobile operators in the region utilize only half of this proportion, underscoring a stark gap between renewable energy availability and its adoption within the telecom sector.
“Countries like Ghana, Kenya, and Rwanda have made significant strides toward universal energy access, with projections to achieve this by 2030,” the GSMC report noted. “Conversely, nations such as the Democratic Republic of Congo (DRC), Malawi, and Chad still face energy access rates below 20%.”
The disparity reflects systemic challenges, including inadequate grid infrastructure, dependency on diesel generators, and the absence of robust policies incentivizing renewable energy adoption.
The report highlighted the inefficiencies in energy use across African mobile networks. African operators use approximately 0.24 kWh per gigabyte of data traffic, significantly higher than the global average of 0.17 kWh.
“This inefficiency stems from lower traffic volumes and the continued reliance on outdated 3G equipment, which is significantly less energy-efficient than 4G or 5G technologies,” the report stated.
Furthermore, many off-grid telecom sites rely on diesel generators, which are both costly and environmentally damaging. The GSMC stressed the urgency of transitioning to renewable energy sources for these sites.
Government Actions to Enable Renewable Energy Investment
The GSMC report recommended that Governments in Africa can help enable investment in renewable energy developments through specific actions.
“Zero-rating of import duty on green energy equipment and accessories to support the transition to green energy solutions.
“Also, encouraging net metering, where the credit received when energy is fed back to the national grid can be utilised to cover energy use of other sites elsewhere in the country.”
Global System for Mobile Communications (GSMC) Report
The GSMC report highlighted that governments should Offer subsidies or tax incentives, where possible, for green energy solutions to reduce investment and operational costs.
The report further recommended, “Designating telecoms infrastructure as critical national infrastructure for prioritization of access to the national grid and other energy sources.”
“Reforming energy market designs and speeding up permissions for renewables and grid projects.
“Incentivising financial institutions to structure innovative financing for green energy projects by mobile operators – by reducing interest levied or permitting green bonds, for example.”
Global System for Mobile Communications (GSMC) Report
The GSMC also highlighted the potential of renewable energy to extend digital access to underserved communities in Africa. By deploying solar-powered mini-grids and adopting models like Energy-as-a-Service (EaaS), telecom operators can achieve significant cost savings while expanding their reach to rural areas.
“Renewable energy not only offers a path to sustainable operations for telecom operators but also a means to bridge the digital divide for millions in rural Africa,” the report stated.
The GSMC report also called for governments to address policy and regulatory barriers hindering renewable energy adoption. Issues related to land access, building rights, and inadequate incentives for foreign investors must be resolved to unlock the full potential of green energy projects.
The GSMC report provides a clear and actionable framework for African governments to foster renewable energy adoption in the telecommunications sector.
As Africa grapples with energy access challenges, the GSMC’s recommendations offer a pathway toward a future where connectivity and sustainability go hand in hand.
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