Green networks: part of the fabric, but still not everywhere

A number of interesting threads came out of the MWC Shanghai event in June, as we wrote about in our Spotlight tear down and implications. AI was the focal point, around which a centre of gravity also drew in new monetisation strategies (especially selling into B2B segments using GPUaaS and other emerging models using AI), satellite and the low altitude economy, and a culture pivot towards a tech-co model in which telcos are more like IT consultants than pureplay connectivity brokers.

Energy was not called out in those themes. Is that an admission of energy’s diminishing importance? Has sustainability been deprioritised? The answer to both questions is a resolute ‘no’. If anything, the opposite is true, it’s more that energy efficiency has become part of the fabric as a necessity in telco corporate and network strategy rather than something ‘new’. In this sense, I wanted to flip the focus back to some of the insights we garnered in China on this front and look at the read across (where it exists) to other regions.

Net zero is so far, yet so close

Achieving net zero by 2050 requires CO2 reductions of 50% in each of the next three decades, with the largest challenge being the 2020s due to high baseline emissions. For the telco sector, the approach to net zero involves decarbonisation through transitioning to renewable energy sources and improving overall energy efficiency in business operations.

According to data from a telco energy benchmark study, renewables accounted for approximately 30% of total telco energy consumption in 2024, up 10ppts on 2023. Grid power continues to provide the majority of the sector's energy, with about 75% consumed by mobile RAN networks. The rise in renewable usage is associated with expanded capacity in certain regions, such as Europe, and to a lesser extent, China and the US. Privately financed power purchase agreements (PPAs) and long-term supply contracts have also contributed to this trend. 

Supply-side challenges persist, especially in Africa and Asia, where infrastructure for renewables is limited and operating base stations in sparsely populated areas is less economically viable. Common constraints include access to land and space for installations, as well as reduced investment incentives in regions with abundant and inexpensive fossil fuel availability. Given the required timelines and milestones for net zero—specifically, the need for 50% CO2 reductions in each successive decade—solutions and policy initiatives addressing these issues are time-sensitive.

Embedding efficiency by design

Any discussion on how to improve energy efficiency should first orient itself on where energy is consumed in the network. Three main areas:

• RAN (75-80%): This category includes the radio equipment at base stations and at the network edge and base stations. It accounts for the energy used by these units and their supporting infrastructure, including air-conditioning, inverters, rectifiers, and repeaters, as well as all energy consumption associated with backhaul transport
• Core and data centre energy consumption (10-15%): This segment covers energy used by the core network and datacentres that support the mobile network, providing facilities for operator IT resources, including OSS, BSS, and intranet infrastructure. We do not include hyperscaler datacentres in telco energy consumption. The public cloud is itself a large power draw at around 1% of global energy
• Other operations (5-10%): This consists of energy consumed in the mobile operator’s operational activities, such as offices, retail locations, and logistics

The telco equipment vendors have long cottoned onto energy efficiency being a core requirement for their customers and a competitive differentiator. China is not always viewed as having energy bona fides but the Chinese vendors have made notable improvements in power efficiency the last 2 years, with this continuing via AI-based tools.

Huawei is a good example through its ‘0 Bit 0 Watt’ paradigm. At its core, zero bit/zero watt is based on a simple yet powerful principle: when no data is being transmitted (zero bit), the network equipment should consume no energy (zero watt). Traditional network infrastructure often consumes power continuously, even during idle periods. Huawei’s solution breaks this paradigm by enabling base station components—such as power amplifiers, transceivers, and cooling systems—to enter ultra-low power states or shut down completely when traffic is minimal or non-existent.

One of the key enablers of this solution is the integration of AI-driven energy-saving algorithms and intelligent network scheduling. These technologies allow dynamic adaptation to real-time traffic patterns. In practice, what does this mean?

• During off-peak hours, like late nights or in sparsely populated rural areas, the system can intelligently power down radio units without compromising user experience
• When demand spikes, the system quickly reactivates, ensuring performance remains unaffected
• Furthermore, this solution supports multi-band, multi-RAT (Radio Access Technology) coordination, ensuring energy savings are achieved even in complex, heterogeneous network environments
• It also facilitates green site construction by reducing the need for large battery backups and cooling infrastructure
• Through the energy efficiency improvement of the entire series of hardware platforms (such as more efficient power supplies, better heat dissipation, low-power chips), it reduces the basic energy consumption of device operation from the source while achieving intelligent shutdown

The interesting change is that the company has extended zero bit/zero watt to network performance. This change is captured through zero bit/zero loss, meaning that gains in energy efficiency have no detrimental impact on speeds, latencies or other network performance KPIs.  

Outlook

The energy savings demonstrated by Chinese operators are up to 20-30% on RAN power consumption, with leading vendors supporting this move.. Similar impacts have been shown in other regions like the Middle East (Zain is a good example using 0 bit 0 watt equipment) and Europe. There is, however, significant drop off in Africa and southeast Asia given the still heavy reliance on diesel and use of 3G networks, which are far less power efficient than LTE or 5G. 

What can operators in these regions take stock of?

1. Measurement

• Measuring, comparing and benchmarking energy efficiency in the 5G era is a complex task. Multi-generational (2G, 3G, 4G and 5G) mobile networks are operating in different social and geographical environments, and separating energy

  from 2G, 3G, 4G, 5G and fixed services can be challenging without an all-encompassing, real-time metering system

  • We aim to do that with our energy benchmark, which works with operators across the world to analyse and track telco energy efficiency over time. We cover 1/3rd of global market share but want to continue to increase this and encourage any operators interested in joining to get in touch 

2. Proof points 

• For telecom operators, this means a tangible reduction in operational expenses. Energy costs are still 15-20% of opex on average, and higher in some 5G networks, which have a denser deployment and higher power requirements than previous generations. By leveraging more efficient equipment, operators can achieve up to 20–30% energy savings, depending on network topology and usage patterns
  • Proof points, however, need to see the light of day, and the more published, the greater the visibility of other operators adopting similar approaches

3. Sunsets

• Conversion rates are underweight in the regions where the preponderance of 3G networks is highest. In Africa, only 5% of active 3G networks are planned for sunset vs. just under 15% in Asia and 25% in Europe
• Shifting this balance is a key prerequisite to better energy efficiency and lowering overall CO2 emissions.