Zimbabwean telco issues battery storage tender

From the newsletter

TelOne, Zimbabwe's state-owned telecom company, is inviting bids for solar power systems with battery storage for its network facilities. Bidders will finance, supply, and install the systems and receive payments in six monthly installments after commissioning. The tender is open for domestic bidding & closes on 6 March 2025.

• The African market demand for telecom towers is growing rapidly as mobile phone ownership increases. The market is projected to grow at a CAGR of 4.6% from 2025 to 2030, pushing the number of telecom towers to 273,000 units by 2030.

• Ensuring uninterrupted communication is becoming critical, and so is powering these towers. National grids have proven unreliable. Renewables are coming in to provide reliable and affordable power.

More details

• The advert details that the solar power system will provide 40 kilowatts of capacity for Chitungwiza, Hatfield, and Glenview and 20 kilowatts for the TelOne Centre for Learning. For one to qualify, their solar modules must come with a 25-year linear power warranty. The system will also require lithium-ion battery storage, designed to withstand 4,500 charge cycles at 90% depth of discharge and operating at 48 volts. The battery capacity will be 96 kilowatt-hours for the three locations and 48 kilowatt-hours for the TelOne Centre, with the capability to expand storage through parallel scalability.

• Bidders must submit completed proposals, including technical brochures, tax clearance certificates, and legal documentation. Technical evaluation will assess compliance with specifications, and the company will select the most economically advantageous offer.

• TelOne joins other telecom companies in Zimbabwe and Africa that are solarising their towers to cut energy costs. Econet Wireless Zimbabwe has 46 towers connected to solar power and plans to invest in 500 solar-powered base stations over the next two years to achieve its carbon-neutral goal by 2030.

• Powering telecom towers is becoming increasingly expensive as fuel prices rise. Africa spends a substantial amount on fuel imports to support these towers. Over 3 billion litres of diesel are consumed annually to power telecom towers across the continent. Theft is also a significant issue, with up to 30% of fuel stolen. GSMA, a global association of mobile operators, estimates that this adds 10-15% to the diesel cost of supplying fuel to towers. 

• Running diesel generators can account for 30-60% of telecom operators' total expenditure. Switching to alternative energy sources like solar could help them save significantly. For example, in Nigeria, one of the countries facing the worst blackouts, switching to renewables can help the telecom industry save up to $1.4 billion annually.

• Many telecom operators are adopting solar power in their operations. In the DRC, Orange and Vodacom plan to build 2,000 solar-powered mobile base stations across the country in six years and provide connectivity to over 19 million people. In Kenya, Safaricom is powering 1,432 of its towers with solar energy and plans to have renewables account for 50% of its 5,000+ sites by 2050. In Ethiopia, the company has 31 sites using solar energy with a target of 40% of sites on solar by 2030.

• In Nigeria, telecom companies were hit hard by the removal of fuel subsidies, which doubled diesel prices. Airtel and MTN in Nigeria are adopting solar power to reduce energy costs associated with diesel use.

• Reliability is becoming key for service providers. Network disruptions in this digital economy can prove to be very costly. For instance, the annual transaction value of mobile money transactions in Africa is over $836.5 billion. This demonstrates how mobile connectivity is a critical foundation for economic activity across the continent.

Our take

• African countries could save tens of billions annually by electrifying their telecom towers with renewable energy sources. This shift would not only reduce reliance on expensive imported fuels but also conserve much-needed foreign currency reserves. Additionally, it would shield the telecom sector from the volatility of global fuel prices and ensure that consumers enjoy stable and affordable prices.

• In countries with net metering policies, telecom towers have the opportunity to sell their excess electricity generated from solar panels back to the grid. This can create a new revenue stream for telecom companies and help them offset operational costs and improve their financial stability. This further incentivises the adoption of renewable energy within the telecom industry.

• Energy companies and financial institutions have the opportunity to design appropriate solutions and meet the demand for this growing market. They can develop innovative financing models, such as lease-to-own options or power purchase agreements, that make it easier for telecom companies to invest in solar power.