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Energy and climate change

Renewable Energy

To achieve our target to reduce our total carbon footprint, our main priority is to find ways to improve the energy efficiency of our operations through technical innovation (see our climate change strategy). But we will still require energy to run our network. Therefore we will source renewable energy from electricity grids and use on-site renewable energy systems where it is practical and cost-effective to do so.

Green electricity from the grid
Renewable energy accounts for 18% of our total network energy use. The majority of our energy – renewable or otherwise – is from electricity grids. We purchase green energy from the grid in Ireland and the UK. Vodafone Czech Republic has joined ‘Project Green Energy’, a national initiative to support renewable energy supplies. A small extra fee is paid for each kWh of electricity purchased from the grid, which is invested in the development of renewable energy sources.

However, in most countries, renewable energy makes up a very small proportion of national electricity supply (if it is available at all). This makes it difficult to source green energy from the grid. There are also complex issues around measuring carbon reductions as a result of using renewable energy from the grid. Regulations vary from country to country and there is some uncertainty in relation to what will, and what won’t, contribute to emissions reductions.

The environmental benefits of green tariffs also vary. With some tariffs only part of the electricity comes from a renewable source, and others include ‘low-carbon’ energy such as fossil-fuelled combined heat and power generators, or nuclear.

Exploring the options
Like a number of other companies, Vodafone is exploring the possibility of investing directly in renewable energy projects as an alternative to purchasing through green tariffs over the longer term. In 2007/08, we commissioned a study from green energy consultancy Green Peninsula into the options for investment in renewables, focusing on energy markets in Germany and the UK. We will continue to research and investigate options in this area.

On-site renewable energy systems
For base stations in remote locations not served by an electricity grid, we are testing the viability of replacing or supplementing diesel generators with on-site renewable energy systems. These include solar panels, wind turbines and fuel cells. We have installed solar panels at 140 sites in Egypt and we have started to trial combined wind and solar generators in Greece, Italy, Portugal and Romania. Different types of renewable energy are being piloted across the Group and best practice is shared through an online database.

At one 'green' base station pilot in Greece, the diesel generator was replaced with solar panels and a wind turbine. A fuel cell was also installed to boost the power if there is not enough sunlight or wind. A three-month trial showed that enough power can be generated this way to run sites with low power loads in remote locations. This reduces environmental impacts and cuts costs significantly.

Vodafone Germany ran a solar power pilot project at its Mobile Switching Centre in Würzburg in 2007/08. A total of 62 rooftop photovoltaic modules were installed on the roof of the building, at a cost of €70,000. The system will generate some 12,000 kWh of energy, which will be fed into the public grid.