Community Power from For further information please contact [email protected] GSMA London Office Mobile-Charging Services T +44 (0) 20 7356 0600 www.gsmworld.com/greenpower July 2011 1–2 Community Power from Mobile Charging Services Contents Contents Executive Summary 21 The Charging Services Value Chain 21 Selection of Charging Services Operator Community Power Today 22 The Community Power from Mobile Benefits Chapter 1 - The Issues Of Energy Access in Developing Countries 22 Revenue Increase from Rural Telecom Towers 11 The Development Factor - Energy 22 Business Opportunity for Third Access is Vital to Economic and Party Vendors Human Development 22 Community Feels Empowered Chapter 2 - Approach to the Use the Energy Excess from by the Access to Energy the Telecom Towers for Charging Services 23 Business Case for Charging Services 23 Added Revenues to Mobile Operators 17 The Off-Grid Energy Market 24 Micro-entrepeneurial Opportunities is Significant in Rural Regions 17 Availability of Charging Solutions Will 25 Business Case from Cold Bring New Revenues to Mobile Operators Chain Oppurtunity 17 Telecom Towers are Rapidly Spreading 26 Potential Barriers to the to Rural Environments Implementation 18 Off-Grid Base Stations Typically of Community Power Have Excess Power 26 Cost Containment 18 Cell Towers are Built Close 27 Payment For Charging Services to Off Grid Communities 27 Theft 18 The Telecom Tower Acts as the 28 Regulation Charging Point 28 Threat To The Power Required by BTS 18 Mobile Operators have Already Deployed CPM Sites 28 Managing Community Expectations 19 A Simple and Central CPM Appendix 1 - Community Power Projects Charging Station 19 Excess Power Generated by BTS Generator is Enough to Charge Devices 29 Safaricom Community Power Site at Tegea, Kenya 20 Models to Distribute Energy to the Community 30 The Dertu Case Study, Kenya 30 The Grameenphone Case Study, Bangladesh 31 Background and Concept Appendix 2 - The Ecology Foundation Model Appendix 3 - Healthcare Opportunity from Community Power from Mobile Appendix 4 - Mobile Money for Charging Services Appendix 5 - Kapil Sibal inaugurates Viom Networks’ Rural Service Centre 3–4 Community Power from Mobile Charging Services Contents Tables and Figures Table 1: Energy Availability Impact Figure 1: Number of People (Actual and Figure 20: Charging Services Value Chain in Developing Countries Projected) Without Electricity, by Figure 21: Community Power from Table 2: Handset Charging Region, from 1970-2030 Mobile Business Model Figure 2: Economics Summary Impact Evaluation of World Figure 22: Yearly Revenue Opportunity Table 3: Community Power Initiatives Bank- Funded Rural from Charging Services Electrification Portfolio Table 4: Charging Service Value (in $US per site) Figure 3: Chain Roles Impact Evaluation of World Figure 23: Mobile Operator Bank-Funded Rural Electrification Table 5: Benefits for Mobile Operators Revenue Streams Portfolio-Energy Sector Only from Community Power Figure 24: Third Party Vendor Figure 4: Deployments Casual Chain Between Energy and Revenue streams Achieving MDGs Table 6: Benefits for Vendors Figure 25: The Vaccine Cold Chain Figure 5: from Community Power Energy Consumption Per Capita Utilizing Cell Tower Deployments (kgoe/a) vs GNP PPP Per Capita Power Facilities Figure 6: Table 7: Benefits for End Users Off-Grid Subscribers Segmentation Figure 26: Capital Cost Savings from the from Community (in Million Subscribers) use of Cellular Tower in the Power Deployments Figure 7: A Charging Shop in Kisoro, Uganda Cold Chain preservation Table 7: Benefits for End Users Figure 8: Energy Consumption Spend on Figure 27: The Vaccine Excess Power from Community Lighting by Off-Grid Households Availability at Diesel & Power Deployments Figure 9: Potential Added Revenues from the Green Sites Table 8: Assumptions on Charging Solutions (US$ billion) Figure 28: The Vaccine From Cash to Revenue Streams Figure 10: Growth in Base Stations in Mobile Money Payment Table 9: Pros and Cons of Mobile Developing Regions 2007-2012 Figure 29: Excess Power drawn from BTS Phone Payment Methods Figure 11: Excess Power Availability Figure 30: Revenue Increase from Table 10: Community Power at Diesel & Green Sites Charging Services per BTS Deployments Figure 12: A Rural Landscape in Off-Grid Site (US$) from Safaricom Africa (BTS at the Centre of Figure 31: Standard Vaccine Cold Chain Table 11: The Steps to the Community) Figure 32: The Vaccine Cold Chain Implementation Figure 13: Current Safaricom Mobile Utilizing Cell Tower of Charging Services Handset Charging Dock Power Facilities Table 12: Mobile Wallet Figure 14: Charging Kiosk Model for Figure 33: Illustrative View of Efficiency Deployments in Africa Community Power from Mobile Opportunities in Vaccine Table 13: Mobile Money Tariff Structure Figure 15: Volume of Devices that could be Cold Chain using Cell Charged by a Single BTS Excess Tower Power Facilities Power (On a Peak Load Mode) Figure 34: The Benefits of Vaccination Figure 16: Power Estimated to be Drawn by Figure 35: Energize the Chain Charging Services Per Site Operating Model Figure 17: Charging at the BTS (Telecom Figure 36: Simpa Networks Scratchcard Tower Sits within the Community) and Metering System Figure 18: Charging in the Community (Telecom Tower is Outside the Community) Figure 19: Current Model for Charging Services at BTS Site 5–6 Community Power from Mobile Charging Services Executive Summary Executive Summary A significant opportunity exists to provide environmentally sustainable energy to people in the developing world who live beyond the electricity grid. And it is the mobile telecoms industry – which has already brought phones beyond the fixed telecoms grid - that holds the key to this next infrastructure innovation. There are 1.6 billion people in the world living without access to electricity. The mobile industry is experiencing unprecedented infrastructure growth in these same off-grid regions of the developing world. The GSMA estimates that nearly 639,000 off-grid base stations – the pieces of equipment which provide cellular network coverage - will be rolled out across the developing world by 2012. Since mobile base stations need power to function, network operators have become adept at generating their own off-grid power. This has typically been achieved by running diesel generators at each site, although increasingly operators are installing renewable energy equipment, such as wind turbines and solar panels, to power their base stations. The opportunity now exists for mobile network operators to provide electricity beyond the base station and into local communities, a phenomenon which the GSMA Development Fund calls “Community Power from Mobile”. 7–8 Community Power from Mobile Charging Services Executive Summary Base stations typically have 5kW of excess To accelerate the formation of this energy Figure 1: Number of People (Actual and Projected) Figure 3: Impact Evaluation of World Bank-Funded Rural power, enough to provide energy to recharge ecosystem CPM calls on existing and emerging Without Electricity, by Region, from 1970-2030 Electrification Portfolio – Energy Sector only almost 5000 handsets, provide electricity to 40 stakeholders to highlight their interest in this 900 25 homes, 10 vaccination fridges or 2 clinics. These opportunity, specifically: 900 Highly satisfactory base stations are built close to or within off-grid ■ 900 Satisfactory 20 Operators and tower companies that are 900 Moderately satisfactory communities. Mobile operators are trialling the interested to pilot and move to full scale provision of excess power for the charging of 900 Moderately unsatisfactory implementation Unsatisfactory devices such as mobile handsets, lanterns and 900 15 ■ 900 household batteries, and ultimately, to power, Vendors and energy companies that are positioned to provide products and services Numbers of people (Millions) 900 businesses, clinics, vaccination refrigerators, 900 10 ■ schools and homes. This white paper will Financing institutions and development 900 Number of Projects document existing and emerging projects organisations that can facilitate large scale 1970 1980 1990 2000 2010 2020 2030 5 in this emerging sector. implementation South Africa East Asia/China Sub-Saharan Africa Latin America Community Power from Mobile is not just Interested parties should contact Middle East North Africa 0 about social benefit; although that impact [email protected] 1980-95 1996-2006 can be significant. It is also about improving Source: IEA World Energy Outlook 2002 the business case for off-grid telecoms by (a) Source: GSMA increased revenue streams via sale of power or Community Power Today Global efforts to bring energy services to the site rent (b) increased security from theft (c) developing world have a long and extensive According to the report, even though World history. The World Bank has implemented 120 Bank funded projects have been successful in charging mobile phones for increased usage 2 (d) increased community support for the A report published jointly by the United rural electrification projects globally since 1980 implementing physical infrastructure for rural 6 company brand and (e) improved advocacy Nations Development Programme, UN with an investment of more than US$11billion. electrification, problems related to institutional with governments and regulators. Millennium Project and the World Bank on The World Bank and IFC are also working to development and technical issues still exist. The Energy Access has