Reducing fuel cost and emissions

When Celtel in Uganda wanted to cut costs and expand its network, the operator turned to Ericsson. Celtel is now able to forecast a reduced fuel consumption of around 50 percent.

February 14, 2008

Celtel Uganda is converting more than 200 of its diesel-driven radio base stations (RBS) to Ericsson's new, customized hybrid energy solution, which is independent of the power grid and works with all of Ericsson's outdoor RBS cabinets.

The solution helps Celtel cut fuel costs by 45-50 percent at sites in remote areas of Africa.

In addition, Celtel will enjoy great savings through fewer and smaller fuel deliveries and less frequent maintenance.

Before the conversion, a typical site may consume around 20,000 liters of diesel per year - and one liter of diesel emits 2.68kg of carbon dioxide into the atmosphere. The conversion will enable a reduction of around 10,000 liters per site and year.

A similar solution could help in many emerging markets where expensive fuel, such as diesel, is used to run RBS sites.

Ericsson Key Account Manager Hans Olander says that the new Ericsson hybrid solution, based on increased battery power, helps operators cut costs.

“The solution has been met with a lot of positivity on the market, since it drives operational expenses down,” Olander says. “Ericsson's hybrid energy solution for battery and diesel reduces the need for fuel by up to 50 percent.

He says that initially, the solution was sold to Celtel through customer demand. And, he adds, for developing countries it is the solution for the future.

“Not only is this solution cost-effective - it also has a very positive effect on the environment, through less fuel usage.”
Today, Celtel operates communications networks in 15 countries in Africa.

Siyabonga Zulu, Operations Director, Celtel Uganda, says: "We are rolling out Ericsson's hybrid solution in all our Ugandan operations. This new solution offers a more powerful battery bank in a cabinet with low-power cooling, and allows us to reduce our diesel expenses by 50 percent. The savings are dramatic, and will allow us to extend our network cost-effectively, providing coverage to people who have never before had access."

Ericsson's hybrid energy solution for diesel and batteries is the latest in a series of energy optimization innovations that the company is driving to help reduce total cost of ownership, while at the same time improving the environmental performance of mobile-network growth worldwide.