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Economic Analysis of Renewable Energy -Powered Communication Networks
This study, titled "Economic Analysis of Renewable Energy-Powered Communication Networks," evaluates the financial viability, cost configurations, and operational savings of deploying hybrid solar-powered base stations for telecom network operations. Base transceiver stations (BTS) consume massive amounts of grid electricity and diesel fuel, particularly off-grid or remote areas in India. Converting these conventional energy sources to green capital assets involves high initial Capital Expenditure (CapEx) for solar PV panels and battery storage banks, but yields substantial Operating Expenditure (OpEx) savings. This research conducts a 5-year capital budgeting analysis (2021-2025) of a hybrid solar-powered tower upgrade program implemented in a leading telecom provider's network portfolio. Project feasibility is evaluated using Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative metrics indicate that solar panels and batteries account for 68% of CapEx. Hybrid installations reduce annual energy expenditures per tower site from 17.5 Lakhs to 3.5 Lakhs by 2025, generating significant OpEx reductions. The financial model yields a positive NPV of 28.5 Lakhs per tower site and an IRR of 38.6%, indicating strong project feasibility. The study concludes that transition to renewable energy-powered communication networks represents a highly viable and environmentally sustainable capital project for telecom lenders and operators.
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