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The Transition from Energy Consumers to Prosumers

The 10th Global ICT Energy Efficiency Summit, held on October 14-15 in Vienna and organized by Huawei, brought together a diverse group of stakeholders from the telecommunications sector, including operators, TowerCos, energy service providers, and analysts. The primary focus of this summit was on a pivotal shift within the industry: moving from being passive energy consumers to active energy prosumers. A consensus emerged that telecom sites need to evolve into entities that not only consume energy but also generate, store, manage, and trade electricity.

This shift toward the concept of virtual power plants (VPPs) has progressed from mere theoretical discussion to a pressing business priority. The summit highlighted that improvements in the economic landscape at the site level have been remarkable, with the costs of solar-plus-storage systems dropping to below $0.04 per kWh. In Europe, implementation of VPPs has achieved an average payback period of about three years per site, generating annual revenues of around €800 and coupled with a 100% enhancement in electricity availability. This transformation signifies a crucial change in how energy supply is viewed—transitioning from a financial burden to a strategic asset.

Challenges for Telecom Operators

Despite these advancements, operators face significant structural challenges. Energy dependency is surging, in stark contrast to a decrease in energy security—revenue growth is not matching rising investments and traffic demands. To address these challenges, a combination of technological innovation and new business models is essential. This involves tapping into on-site energy resources, bundling decentralized batteries, and utilizing artificial intelligence (AI) to manage charging and discharging processes based on price signals. Furthermore, aggregators need to focus on transforming scattered site resources into flexible, grid-capable capabilities through standard interfaces, interoperable platforms, and sustainable business models. For this to be successful, many small site resources must be aggregated into a portfolio substantial enough to compete in energy markets while preserving operators’ control over site reliability and continuity of service.

Early Success Stories

Real-world implementations already showcase the benefits of these initiatives. During a power outage in Portugal, critical services continued running for up to 12 hours due to the measures implemented. In Finland, VPP solutions have generated revenue for sites. In Southeast Asia, an impressive 86% of sites in a rural deployment managed to operate entirely on solar power without any diesel refills over a period of 24 months. These examples illustrate how prosumer sites not only strengthen service continuity but also reduce fuel dependency and support decarbonization across diverse market and network conditions.

The Global Initiative for the Communications Industry

The summit marked the launch of the “Transitioning to Prosumers – Global Initiative for the Communications Industry,” calling upon the telecommunications sector to open up site energy resources, align on standards, interfaces, and business models, and develop an open energy ecosystem. Huawei has committed to advancing the deep integration of “bits and watts,” collaborating with global partners on innovations and standardization efforts to support the industry’s transition towards a more efficient and sustainable energy system.

In conclusion, as the telecommunications sector navigates the crucial path from energy consumers to prosumers, the emphasis on sustainable practices and energy efficiency will yield significant economic and environmental benefits while cultivating resilience against future energy challenges.