GSMA’s Moore on energy challenges facing mobile networks in SSA

Mobile network operators in Sub-Saharan Africa are facing significant challenges related to energy cost and reliability, impacting their ability to deliver services effectively. Steven Moore, the Head of Climate Action at GSMA, highlighted some of the key issues and potential solutions in a recent interview with CNBC Africa. According to Moore, more than half of the operators surveyed in the region reported being affected by daily power outages lasting several hours, leading to increased investments in backup energy support like batteries and diesel generators. This additional expenditure on energy security is diverting funds away from network expansion and upgrades, hindering the operators' ability to reach more consumers with improved services. While some operators may consider passing the costs to consumers, the primary impact is on limiting capital expenditure for network enhancements. However, Moore pointed out that newer generations of equipment, such as 5G technology, are more energy-efficient, helping to mitigate some of the operational costs. Mobile operators are exploring various solutions to address the energy challenges they face, including energy efficiency measures and on-site renewable energy generation. While on-site solutions like solar panels and batteries can contribute a small percentage of energy needs, the industry is mostly reliant on grid electricity. Moore emphasized the importance of transitioning to renewable energy sources to support a clean energy future in the region. Despite the high costs associated with renewable energy implementation, there is a growing need for financial mechanisms to reduce risks and attract more investments in clean energy projects. Moore suggested that multilateral organizations like the World Bank could play a crucial role in facilitating this transition by supporting renewable energy initiatives and encouraging private sector investments. One positive example cited by Moore was Vodacom's collaboration with Eskom and the South African government to invest in independent power producers for renewable energy generation, setting a precedent for other companies to follow suit. Supporting policies and regulations that promote the liberalization of energy markets will be essential in unlocking private sector investments in renewable energy projects. Moore urged policymakers to accelerate climate action policies and create an enabling environment for mobile operators to access affordable and sustainable energy sources. By establishing ambitious climate targets and promoting private sector investments, governments can help drive the transition towards cleaner and more cost-effective energy solutions. Countries like Namibia have already made significant strides in boosting solar capacity through supportive policies, demonstrating the positive impact of proactive energy strategies. Looking ahead, Moore noted that while energy costs are expected to rise in the short term, the continued investment in clean energy generation could lead to long-term cost reductions. As technology advances and costs for renewable energy technologies decrease, mobile operators in Sub-Saharan Africa have the potential to improve energy efficiency and drive down operational expenses in the future.