Altman Solon is the largest global TMT consulting firm with expertise in telecommunications consulting. In this insight, we discuss energy challenges faced by telecommunications companies in Africa.
Across Africa, the demand for reliable digital connectivity is growing at an unprecedented pace. Fiber networks are expanding, data hubs are being built, and mobile towers are popping up in even the most remote regions. But behind every call, every internet search, and every video stream lies a fundamental challenge—power.
For telecommunications providers, energy is more than just an operational concern; it’s one of the biggest cost drivers, often accounting for a quarter to a third of their total operating expenses. In many parts of Africa, where grid reliability is inconsistent and electricity prices fluctuate dramatically, keeping networks running 24/7 requires a complex and costly energy strategy.
Some Northern and Southern African nations benefit from relatively stable electricity grids, while others struggle with frequent outages.
Countries such as Mauritius, Morocco, Tunisia, Egypt, and South Africa benefit from better grid stability, higher energy generation capacity, and more developed distribution networks. On the other end of the spectrum, Central and certain West African nations rank lower due to persistent grid instability, insufficient industrial power access, and weak distribution infrastructure. In countries like South Sudan, the Democratic Republic of Congo, and Chad, telecom providers rely heavily on expensive and carbon-intensive backup solutions like diesel generators, making operations costly and environmentally taxing.
Nestled between these two extremes is a mix of moderately developed and improving distribution markets. Nations such as Nigeria, Ghana, Kenya, and Zambia are making strides in power reliability, yet still face grid inconsistency issues that necessitate hybrid energy solutions.
We believe there is a growing opportunity for African telecommunications operators to reconsider how energy costs are managed. By exploring new technologies, hybrid energy solutions, and innovative partnerships, operators may find ways to reduce costs, improve efficiency, and enhance sustainability.
We can look to some real-world examples of countries that are making strides in power reliability while using hybrid energy solutions and data-driven insights to address grid inconsistency.
In Nigeria, one of Africa’s largest telecom markets, unreliable grid electricity has long been a headache for operators. A recent study from Nasarawa State University explored ways to optimize power usage at base transceiver stations (BTS)—the equipment that connects mobile phones to networks.
The study found that designing a hybrid system that combined solar panels, diesel generators, and battery storage successfully reduced energy costs while improving reliability. This setup resulted in a levelized cost of energy (LCOE) of just $0.255 per kilowatt-hour, a significant improvement over traditional diesel-based power solutions.
In another instance, researchers explored the optimal mix of renewable energy sources for telecom towers in remote areas. The best-performing solution was also a hybrid setup. The system cut power generation costs while lowering CO₂ emissions.
These hybrid systems show that even in a country where the grid remains unpredictable, smart energy solutions can slash costs and boost efficiency.
Expanding telecommunications to remote and rural areas is one of the continent's greatest challenges. In Cameroon, many rural areas rely on diesel generators, making them expensive to operate and difficult to maintain.
A study conducted in the city of Buea examined how telecom towers in non-electrified regions could transition to solar hybrid energy systems. By integrating solar power, the operators reduced their reliance on diesel fuel, cutting both costs and emissions.
This project demonstrated that with the right design, even off-grid telecom sites can operate efficiently using renewable energy.
While hybrid energy solutions are effective, another key factor in energy optimization is understanding consumption patterns. A study conducted in western Uganda analyzed how telecom base stations use energy throughout the day.
The findings revealed that energy consumption fluctuates depending on network traffic load, meaning that during off-peak hours, telecom sites could operate more efficiently. By leveraging real-time demand data and adjusting power usage accordingly, operators can reduce waste and optimize their overall energy footprint.
Across the continent, leading mobile operators are embracing renewable energy to power their networks. Solar farms, wind turbines, and advanced battery storage solutions are gradually replacing diesel generators, making networks more sustainable and resilient.
Not only does this reduce costs, but it also aligns with global sustainability goals and investor expectations. Green energy is no longer just a "nice-to-have"—it’s a competitive advantage in the telecommunications sector.
The future of telecom energy in Africa will be shaped by three key trends:
As Africa’s digital economy grows, telecom companies cannot afford to be held back by energy inefficiencies. Those who invest in smart, sustainable, and scalable energy solutions today will lead the industry tomorrow.
Our telecommunications and infrastructure expertise confirms that there is enormous potential for optimization in energy management within the telecom sector in countries throughout Africa. By conducting detailed audits, strategic assessments, and effective implementation, we have observed significant reductions in operating expenses (up to 35%) and capital expenditures (up to 25%) among leading telecom providers. Notable projects include designing and deploying hybrid and renewable energy solutions, extensive technical audits across multiple regions, and comprehensive vendor strategies for energy management outsourcing. These real-world examples underline the feasibility and benefits of strategic energy optimization.