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Dutch telecommunications company KPN and Rome-based Telecom Italia have slashed their electricity consumption and shown others what’s possible, according to an analysis by financial services group ING.
Why it matters: Energy efficiency will play a critical role in the decarbonisation of the world economy. At the COP28 climate conference last year, governments agreed to double the rate of energy efficiency improvements from 2% a year to 4% until 2030.
The latest: Some telcos, including KPN and Telecom Italia, are showing the way, having substantially reduced their energy consumption despite increasing network traffic, ING says.
KPN’s energy use has fallen 42% since 2010 thanks to a shift to more efficient renewable power, ongoing efforts to make its networks less power hungry by using more efficient equipment, and the phasing out of its legacy telephone network.
The company sources all its electricity from wind farms across Europe, and aims to reach net-zero emissions by 2040, including the emissions from its suppliers and customers (scope 3).
Meanwhile, Telecom Italia uses 28% less energy than in 2016, and sources 65% of its Italian electricity needs from renewable sources. Its efficiency improvements have been driven by the adoption of “eco-efficient technologies” and the decommissioning of fixed network exchanges, public telephone cabins, and mobile network sites, ING says.
Yes, but: KPN’s impressive rate of efficiency gains will be difficult to sustain as it builds its energy-intensive 5G network and mobile data traffic surges.
“Although we do expect KPN to meet its 2030 energy reduction target target, it will be interesting to see how it manages the future capacity growth of its mobile networks.
The company aims to reduce its electricity use by 48% by 2030, compared to 2010 levels.
