#Energy Efficiency #Huawei #Vienna #Austria #Telecommunication

Transitioning from Energy Consumers to Prosumers at the Global ICT Energy Efficiency Summit

The 10th Global ICT Energy Efficiency Summit, organized by Huawei in Vienna from October 14-15, gathered a diverse group of stakeholders, including operators, TowerCo companies, energy service providers, and analysts. The central theme of the summit was the urgent need for telecommunication stations to evolve from being passive energy consumers to proactive energy producers, capable of generating, storing, managing, and trading electricity.

This paradigm shift marks a significant progression toward the concept of Virtual Power Plants (VPP), transitioning from theoretical discussions to the forefront of short-term business priorities. As the economic aspects at the station level gradually improve, the cost of combined solar systems with energy storage has dropped below $0.04 per kWh. In Europe, the implementation of VPP at individual stations has shown an average return on investment of approximately three years, with estimated annual revenues around €800 per station. Such developments have led to a remarkable 100% improvement in energy availability, paving the way for a significant reduction, and ultimately the elimination, of diesel dependency. Thus, energy management at various sites is transforming from a cost center into a strategic asset.

Despite these advances, operators face structural challenges. Increasing dependence on electricity networks coincides with diminishing energy security, while revenues do not keep pace with investments and data traffic. The solution lies in a blend of advanced technologies and innovative business models. This includes providing on-site energy resources, aggregating distributed battery systems, employing AI for charging and discharging strategies based on price signals, and aggregating storage to engage in grid services.

For aggregators, the priority is to convert scattered site assets into flexible capacity ready for grid connection via standard interfaces, interoperable platforms, and viable commercial models. Achieving this requires the aggregation of numerous small local resources into a sufficiently large portfolio to compete for contracts in electricity markets while maintaining operators’ control over site resilience and service continuity. Both sides must enhance collaboration with energy and financial partners to facilitate operational expansion.

Concrete evidence of the value of this approach is showcased by early implementations. During a power outage in Portugal, critical services remained operational for up to 12 hours. In Finland, VPP solutions have generated significant revenues for individual locations. Meanwhile, in Southeast Asia, 86% of sites in rural areas achieved zero diesel consumption over 24 months, functioning solely on solar power with zero carbon emissions. These examples affirm that facilities acting as prosumers can enhance service continuity, reduce fuel dependence, and bolster decarbonization across varying market and grid conditions.

The summit served as a launchpad for the initiative titled “Transitioning to Prosumers—Global Initiative for the Communications Industry.” This initiative urges the telecommunications sector to unlock local energy resources, standardize norms, interfaces, and business models, and create an open energy ecosystem. Huawei has pledged to continue deep integration of resources and collaborate with global partners on innovations and standardizations to advance the industry toward a high-quality energy system.