Save Energy and Reduce Emissions to Achieve Sustainable Development and Improve Corporate Competitiveness

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1 Save Energy and Reduce Emissions to Achieve Sustainable Development and Improve Corporate Competitiveness 2012 Huawei Whitepaper for Saving Energy and Reducing Emissions

2 Contents 1 Overview Green Communications Wireless Base Station Energy Efficiency Urban Site Reconstruction Solution Integrated Outdoor Site Solution EasySite Solution Base Station Equipment Energy Efficiency Huawei's Energy Saving Solutions for Base Station Equipment Base Station Auxiliary Equipment and New Energy System Fixed Broadband Network Energy Efficiency Cloud Application Energy Efficiency Green Huawei Green Operations Energy Management System New Energy Sources Architecture Laboratories Green Industry Chain Construction Green Raw Materials Green Packaging Green Warehousing Green Logistics Supplier Management Green World ICT's Contribution to Reduction of Energy Consumption Throughout Society Smart Grid Smart Railway Smart Logistics Digital Healthcare IT-based Education Smart Vehicles Contributions to Standards Organizations and Market Recognition Conclusions List of Terms... 33

3 1 Overview According to International Energy Agency (IEA) statistics, over the past three decades, global energy consumption has increased by more than 70%, and CO2 emissions have increased by about 80%. From 2010 to 2015, energy consumption and carbon emissions will continuously increase by 2.5% every year, especially from the use of fossil fuels. Mainstream scientists think that energy consumption has caused the greenhouse effect and led to a series of natural disasters. Protecting the environment and preventing climate change have become one of the great challenges of our time. In addition, energy prices have been skyrocketing since the 1970s, which has put increasing pressure on the industrial and manufacturing sectors. Society as a whole is attaching more importance to conserving energy. The development of telecom services has comprehensively reduced energy consumption and CO2 emissions. For example, telephone and video conferencing services have reduced enterprises' need for travel. The development of short message service (SMS) and Internet services enable people to interact with one another without using physical media such as postcards, greeting cards, or letters. The continuous development of all such services will continuously reduce the Carbon Footprint of individuals and enterprises. To put it simply, telecom services have supported and contributed to the green Gross Domestic Product (GDP) and harmonious social development. Practices in recent years have proven that Information and Communications Technology (ICT) solutions can effectively reduce the industry's energy consumption. Take smart grids for example. Deploying smart grids in the electricity, transportation, and medical care industries in top energy-consuming countries such as China, the US, and India can help these countries reduce CO2 emissions by about 5%. Telecom enterprises provide services to help society reduce its carbon emissions, but these enterprises should also work to continuously improve their Energy Efficiency and minimize their Carbon Footprint and energy consumption. Huawei believes that a telecom enterprise's efforts to save energy and reduce emissions not only aim to achieve a Carbon Neutral status to ensure green GDP, but also serve as an important means for it to reduce costs in the future. Network design solutions for saving energy and reducing emissions must be evaluated based on the Total Cost of Ownership (TCO). Only those energy saving solutions that are economically feasible can be put into practice. 1

4 To overcome this challenge, Huawei has developed the "Green Communications, Green Huawei, and Green World" strategy in the hopes of encouraging society to save energy and protect the environment while saving energy and reducing emissions during its business operations. 2 Green Communications Green Communications Innovative Green Network Solutions Green Huawei Green Supply Chain Mgmt. (e.g.rohs, WEEE) Green World Protecting the earth by innovative ICT solutions Internally, Huawei will continuously reduce the energy consumption of its products by introducing new technologies and will provide innovative low-energy consumption solutions to better serve its customers. Externally, Huawei will work together with its suppliers and customers to control the impact of its product development and delivery on the environment. Huawei will choose high-quality raw materials and adopt new technologies to provide highly efficient solutions. It will also design recyclable product packages to reduce the energy consumption in logistics chains. To test the carbon emissions of telecom products throughout their life cycles, Huawei has conducted a Life Cycle Assessment (LCA) on its own equipment. Such equipment mainly includes base stations in the mobile network and broadband access products in the fixed network. After conducting this assessment, we reached the following conclusion: Carbon emissions in the network operation phase account for approximately 80% of the total emissions. Most of the carbon emissions result from the equipment's consumption of electricity, so the key to reducing carbon emissions is to develop energy-saving products. After analyzing several customers' energy consumption patterns based on live network data, Huawei found that electricity was the main type of energy consumed by operators. Most electricity is consumed by equipment in the access network, including wireless sites and broadband and narrowband access sites. The energy consumption of many mobile operators' wireless sites has reached over 70%. Although the energy consumption of fixed operators in the access network is less than that of mobile operators, it is generally more than 40%. In addition, more and more industries and enterprises are adopting ICT solutions, so the energy consumption of cloud applications will put increasingly heavier pressure on operator, enterprise, and industry networks. Ultimately, as we implement our "Green Communications" strategy, we should focus on reducing the energy consumption of access network sites and pay attention to cloud applications, as the "cloud" trend continues to develop. For similar packaging and transportation issues in the manufacturing industry, we can adopt new logistics technologies to save energy and reduce consumption. Since more and more governments and industries have recognized the function of ICT as a green enabler, we should also pay appropriate attention to the ICT industry. This chapter describes the key points for improving the energy efficiency of wireless base stations, including base station auxiliary equipment, new energy systems, fixed broadband networks, and could applications. 2 3

5 2.1 Wireless Base Station Energy Efficiency In the mobile network, the energy consumption of wireless sites generally accounts for over 75% of the total energy consumption of the mobile network. To reduce the mobile network's energy consumption, we should first reduce each site's energy consumption. Huawei provides appropriate designs at the network topology and network element (NE) levels to reduce sites' energy consumption. At the network topology level, the primary methods for reducing sites' energy consumption are improving coverage efficiency and increasing the coverage capabilities of base station equipment. By implementing these strategies and adopting its self-developed key technologies, i.e. Transmitting Diversity, Adaptive MultiRate (AMR), and High Receive Sensitivity, Huawei has reduced its energy consumption by more than 25%. The main strategy for saving energy at the NE level is reducing the energy consumption of its base stations, cooling systems, and new energy systems. Huawei has used multiple technologies to reduce waste and redundancy. For example, Huawei is the first company in the industry that provides the timeslot shutdown function. By using this function, the energy consumption of base stations can adapt to traffic load changes more accurately, thereby reducing waste. The base station based on the distributed architecture and the mini NodeB designed by Huawei have helped operators successfully minimize feeder loss. In actual network deployment, if the traditional macro base station is replaced by the distributed base station, power consumption can be reduced by more than 40% if the transmit power at the top of the base station cabinet remains unchanged. The distributed architecture can also reduce the energy consumption of leased shelters and auxiliary cooling systems. The most effective way for enterprises to minimize carbon emissions and save energy is to use new zero-emission and low-emission energy, such as solar power, wind power, and biomass energy, according to local climate conditions. In addition, Huawei has introduced its innovative EasyGSM solution, which supports rapid deployment with low costs and can achieve a high return on investment (ROI). The following sections introduce Huawei's solutions for wireless base stations and application scenarios of these solutions Urban Site Reconstruction Solution By efficiently using existing site space, Huawei has customized a green reconstruction solution for urban sites. This solution reconstructs sites according to the following components: 1. Communications equipment: Communications equipment is upgraded from GSM+UMTS equipment (three-band, two-mode) to GSM+UMTS+LTE equipment (five-band, threemode) to reduce energy consumption by 30% Integrated Outdoor Site Solution EasySite Solution 2. Power supplies: Traditional inefficient telecom power is replaced by efficient primary telecom power to cut energy consumption by 10% and save cabinet space by 80%. This extra cabinet space can be used for housing base band units (BBUs). 3. Temperature control systems: Air conditioners are replaced by an intelligent ventilation system, which reduces the energy consumption of the entire site by more than 50%. 4. Antenna systems: Single-band antennas are replaced by multi-band or ultra-wideband antennas, which greatly reduces antenna space and makes towers more lightweight. The Smart Operations Support System (SmartOSS), which integrates the M2000 and NetEco, is used to intelligently schedule and coordinate the main and auxiliary equipment based on communications service demands. This system reduces energy consumption by 30% and site maintenance workloads by 60%. To provide a solution for operators as they face difficulties in acquiring sites, achieve rapid deployment, save energy, and reduce emissions, Huawei launches the Mini-shelter Solution for integrated outdoor sites. A single cabinet of the Mini-shelter occupies only 1 m2 and can be flexibly deployed in various locations such as rooftops, streets, suburbs, mountaintops, and high-speed railways. By adopting various temperature control systems such as heat exchangers, direct ventilation, and direct-current (DC) air conditioners, the Mini-shelter Solution can adapt to both high and low temperatures. It also houses main equipment, transmission equipment, telecom power supplies, storage batteries, and third-party equipment. As an industry-leading shelter-free site solution, Mini-shelter performs multiple functions and has a highly efficient temperature control system. It enables operators to reduce site setup and operational costs and reduce power consumption by 50% to 80%. The "All-on-Pole" design ofhuawei's EasySite solution helps operators rapidly set up sites. This solution uses solar energy to achieve zero carbon emissions and a low-powerconsumption design to save energy. The solution also supports automatic base station configuration, site antitheft measures, and intelligent site management, which exempts local site maintenance, reduces TCO, and helps increase operator profits. Huawei's restructuring solution for urban sites, solution for integrated outdoor sites, and EasySite solution help operators rapidly deploy and expand services. Leading operators all over the world are using the solution for integrated outdoor sites. With this solution, cabinets can be flexibly deployed on hot or cold days in various locations such as rooftops, streets, suburbs, mountaintops, and high-speed railways. This solution plays a crucial role in achieving green site operations. 4 5

6 2.2 Base Station Equipment Energy Efficiency Base station equipment consists of three components: the baseband, radio frequency, and feeder. The radio frequency consumes the most energy, exceeding 80% of the total energy consumption, and power amplification consumes approximately 50% of the total energy consumed by the radio frequency. Therefore, improving the power amplification efficiency is one of the keys to improve the energy efficiency of base station equipment. Based on the broadband Multi-Carrier Power Amplifier (MCPA) and various energy saving technologies, the radio frequency output power at different frequency bands, carriers, and other system resources are completely shared. They can be flexibly configured based on operator demands and the desire to develop new users to maximize resource utilization Huawei's Energy Saving Solutions for Base Station Equipment Huawei's SingleRAN solution for base station equipment uses the unified fourth-generation base station, base station controller, transmission system, and network management system. This solution supports Long Term Evolution (LTE) and other wireless access technologies and enables GSM/UMTS to smoothly evolve into the future network. The SingleRAN solution makes technology selection and network evolution easier and avoids unnecessary investment in the construction of multiple wireless access networks. SingleRAN also greatly reduces the cost of expenses such as site acquisition, shelter construction, and transmission. The SingleRAN solution can be used to reconstruct the GSM network in an environmentally friendly manner and can use green energy to reduce greenhouse gas emissions. SingleRAN helps operators improve their network performance and reduce operation & maintenance (O&M) costs. The SingleRAN solution uses intelligent shutdown technologies to optimize power distribution. In a typical dual-band GSM network, the most direct and effective shutdown technology is site shutdown. When traffic is low, the high-frequency network sites are powered off. After the traffic recovers to a certain threshold, the equipment is powered on again. This powering-off of the entire base station has significantly reduced the power consumption of the equipment. Shutdown technologies for base stations also include carrier shutdown and timeslot shutdown. The difference between these two technologies is that timeslot shutdown supports refined management of lower traffic and is more energyefficient than carrier shutdown. The SingleRAN solution can reduce feeder waste. Feeders consume little power but have great influence on base stations' coverage capabilities. Feeders significantly reduce the power of the tower top, therefore greatly reducing base station efficiency. In certain site scenarios, feeders can cause approximately 50% of power loss. The deployment of a base station based on distributed architecture and the mini NodeB can resolve this problem. When Huawei deployed the network, we discovered that if we replaced the traditional macro base station with a distributed base station, we could save more than 40% of power consumption if the transmission power at the top of the base station cabinet remained unchanged. The first distributed base station Huawei used featured a compact size, was lightweight, and dissipated heat naturally. It could also reduce the energy consumption of leased shelters and auxiliary cooling systems, thereby directly and indirectly reducing sites' power consumption. In general networks, either high-efficiency base station products or the distributed architecture can reduce the network TCO by approximately 10%. All the performance indicators of Huawei's broadband RRU are much better than those of a traditional Radio Remote Unit (RRU) which supports multiple frequency bands. Through this solution, the number of components can be reduced by 40%, the fault rate declines by over 60%, the power consumption is cut by over 20%, and the size and weight are reduced by over 30%. Therefore, this solution has distinct advantages in saving energy and being deployed quickly. 2.3 Base Station Auxiliary Equipment and New Energy System We not only need to continuously reduce the power consumption of base stations, but also develop new and innovative auxiliary equipment to implement superior solutions. Auxiliary equipment and new energy systems mainly include equipment power supply, site deployment, network management capability, etc. First, the sites must support small-scale configuration. For small user groups, low-cost deployment is supported and capability expansion is convenient. "Low-cost" means the equipment capacity and size are small, the transmission solution cost and maintenance cost are low, and deployment is rapid. Cooling systems consume more energy than other auxiliary equipment, so the key to saving energy for auxiliary equipment is finding out how to reduce the energy consumption of cooling systems at deployed sites. Smart direct ventilation systems can be used at indoor macro base stations, which use blowers to take in fresh air and push out hot air to reduce the number of air conditioners, thus greatly reducing the amount of power they consume. Outdoor cabinets with direct ventilation can be used at outdoor macro base stations to reduce the power consumption of their cooling systems. When the direct ventilation system is used, two problems typically occur. One is that the batteries have strict temperature requirements, and direct ventilation cannot bring the temperature to acceptable levels. The other problem is that the air tends to get stale. To address the first problem, Huawei has found that low-powerconsumption battery cabinet air conditioners can be used to guarantee the required temperature. In areas with stale air, the direct ventilation system can be replaced with a heat exchanger to avoid the damage dust causes to the dust screen and equipment. The rationale for using the heat exchanger is similar to that of direct ventilation. Compared with direct ventilation, the heat exchanger does not enable outdoor air to enter the equipment space, which keeps the dust screen clean and reduces cleaning costs. The most direct method of reducing carbon emissions is introducing new energy, such as solar power, wind power, and biomass energy. Choosing zero-emission and low-emission energy is the most effective method enterprises can use to reduce carbon emissions. 6 7

7 2.4 Fixed Broadband Network Energy Efficiency Access equipment consumes more than 50% of the energy consumed by the entire fixed network. Different operators have different network architectures. For some operators, the energy consumption of the access layer reaches up to 70%. In addition, as the network evolves to broadband, traditional fixed voice services are declining, and the percentage of energy consumed by broadband access network equipment is increasing year by year. Therefore, it is very important that operators reduce the energy consumption of their broadband access equipment. Digital Subscriber Line (DSL) technology is now a mainstream broadband access technology. The number of global xdsl subscribers has exceeded 300 million and will increase by 6% over the next five years. With copper wires being replaced by optical fibers, optical fiber technology is also developing rapidly. The number of Passive Optical Network (PON) subscribers has exceeded 20 million, and the compound annual growth rate over the next five years is expected to reach 33%. Therefore, xdsl and PON are the keys to saving energy in the broadband network. Huawei believes that, with the continuous development of technologies and ongoing optimization of products and solutions, the energy consumption of the Fiber To The x (FTTx) network can be further reduced to save more energy and protect the environment. Therefore, during FTTx network construction, it is necessary to incorporate energy-saving and emission-reduction solution designs into the TCO evaluation. FTTx solutions that are economically feasible and consume low energy are preferred. Based on the experience Huawei has accumulated over the years, we have proposed a "layered green design concept", which involves fully incorporating the concept of saving energy into the designs of all of our components, boards, equipment, and even network solutions. 1. With regards to component design, chips that are more integrated can be used to reduce energy consumption. Therefore, the key to saving energy and reducing emissions is choosing industry-leading Application-Specific Integrated Circuits (ASICs). 2. The power consumption of boards can be reduced in the following two aspects: (1) Increase the density of the board port to reduce the energy consumption per port. (2) Actively use new technologies to optimize board designs and reduce the energy consumed by the board. We once made an experiment of modifying the multi-input combined power circuit by changing the diode to a Metal Oxide Semiconductor (MOS). This change has greatly reduced the loss of the combined circuit and cut energy consumption by 80%. 3. When designing the equipment, Huawei can increase the density of the board by optimizing the heat dissipation of the entire system, dynamically adjust the power output through layered power management, and save the energy consumption of cooling systems by using technologies such as smart fans and ground-source heat dissipation. By dynamically managing the energy consumption of the equipment, Huawei can dynamically adjust the power consumption or even shut down the idle modules based on the data volume generated when the modules and interfaces of the equipment are in use. For example, PON terminals are always turned on, but they are only used for a short time each day. Huawei thinks the Optical Network Terminal (ONT) should be able to support multiple energy saving modes, including the normal mode, idle mode, and battery mode. When idle mode is used, idle components and modules can be turned off. For example, for multi-function home terminals, when it is detected that WiFi or data services are not in use, the service modules can be turned off or the power of these service modules can be reduced while only the Plain Old Telephone Service (POTS) is retained. In this manner, when the Optical Network Unit (ONU) is running and the data volume is low, energy consumption can be reduced by 70% to 85%. The speed adjustment technology in smart fans is effective for equipment that requires fans to dissipate heat. Variable-speed fans can automatically adjust their speed within a certain range based on cabinet temperature. Variable-speed fans generally use between 40% and 50% less energy than fixed-speed fans, which increases to more than 70% in temperate regions where fans are not required for most of the year. Huawei is currently evaluating ground-source heat dissipation cabinets. We have discovered the following: cooling systems for ground-source heat dissipation cabinets use around 70% less energy than conventional heat exchangers of the same heat dissipation power; the electricity saved annually by 1,000 FTTx cabinets totals 937,000 KWh; and each cabinet operates at less than 40 dba in normal temperatures, which is below the limit specified for protected areas by ETSI (the highest noise level). 4. In addition to reducing the energy consumed by equipment, we must design green networks for different scenarios to minimize management costs. These designs include optimized network architecture and the Smart Power Management (SPM) solution. For example, as the remote distance of optical fibers exceeds copper wires, network architecture optimized by optical access can reduce energy consumption and the required site space. An aggregation Optical Line Terminal (OLT) has the following advantages: (1) Reduces equipment types by converging multiple devices; (2) Slashes the number of devices, which in turn reduces the quantity of auxiliary shelters, air conditioners, and the energy required for network operations. However, the SPM solution can monitor, adjust and output statistics for the energy used by the access network, metropolitan area network (MAN), and IP core network. It can also facilitate energysaving solutions for applications (including dynamic traffic-aware technologies) by managing the energy consumption of network auxiliary equipment and terminal users. Saving energy and reducing emissions is a gradual process. We should choose suitable reconstruction and evolution strategies after comprehensively considering costs and the current state and development trends of live networks. 8 9

8 2.5 Cloud Application Energy Efficiency Cloud computing uses far less energy than data centers in traditional solutions. Cloud computing integrates servers, storage, and network resources into a resource pool that gives each application computing capabilities, storage space, and various software services. This greatly improves resource utilization, which saves energy and reduces emissions. For example, we have integrated the hardware platforms, application software, and virtual software of customer service products. We can centrally handle services and virtualize agent applications, which provides the following advantages: (1) A green agent uses 80% less energy than a traditional PC agent; (2) The service-processing server group intelligently controls the power supply to servers based on different service volumes to minimize energy use. In 2010, we applied distributed database and elastic computing solutions to Business Intelligence (BI) cloud computing systems as a precision marketing system in the network. Statistics show that the BI cloud computing system can lower energy consumption by 75% and cut OPEX and CAPEX by 60%. Specifically, the energy efficiency features realized by cloud applications include dynamic energy-saving measures, energy consumption management, power supply management, precise control of server energy consumption, and shelter heat management. Dynamic energy-saving: The system can dynamically adjust resource quantities based on traffic loads to optimize resource utilization and reduce maintenance costs. When the resource occupancy rate is low, traffic loads are distributed among a few servers. The rest are powered off until they are required when the resource occupancy rate rises. By dynamically controlling the power supply to system equipment, data centers use about 9% less energy each day. Energy management in data shelters generally includes monitoring and controlling the energy used by equipment, and collecting and analyzing data about the energy used by all devices in shelters (including IT, cooling, and power supply equipment). Users can easily view electricity distribution, energy efficiency, and electricity fees. The system also suggests ways to optimize energy use for shelters. As the loads on IT equipment with multiple power supply units (PSUs) always change, the quantity of active PSUs also changes, creating an on-demand power supply scenario. PSUs are rotated between powered-on and powered-off states at specified intervals to ensure equal idle times. This improves the work efficiency of PSUs and uses 8% less energy. Buckley Lab has verified that the fault rate of PSUs decreases by 40% and their lifetime is prolonged by 1.4 times. We have changed the traditional power supply mode for data centers from 220V AC to 440V DC. The inverter and rectifier in the traditional uninterruptible power supply (UPS) equipment receiving AC have been removed to reduce the links in the power supply system and improve reliability. This realizes a 10% efficiency increase compared with traditional modes. By precisely controlling server energy consumption, we have reallocated the power supply and heat dissipation resources. Previously, power was distributed based on servers' nominal value. This meant that surplus power was often distributed, which wasted power supply modules and lowered efficiency. Conversely, power-capping technology distributes power based on servers' actual power consumption levels, enhancing data centers' power distribution capabilities by about 25%. We have removed unified UPS equipment from the traditional system and installed a mini-ups component in servers so that UPS can be distributed on demand. For example, if a data center's power supply fails, the mini-ups provides backup power for the server to reduce the impact of the initial failure on any other equipment. This technology also improves system power supply efficiency, reduces shelter power consumption by around 20%, requires less investment, and lowers TCO. The power consumed by the cooling systems of shelters and data centers that house core telecom equipment accounts for 45% to 50% of overall power consumption. Improving cooling efficiency through shelter heat management is the key to reducing power consumption in shelters. In this case, design is vital for features such as air supply mode, cool and heat aisle distribution, and the layout of high-power equipment. If shelter conditions permit, under-floor cool air supply rooms are preferable as they realize 20% greater cooling efficiency than overhead rooms. Hot and cool aisles can be used in vent duct design by deploying cabinets face to face and back to back to improve cooling efficiency. After performing verification during actual network operations, we found that the power usage effectiveness (PUE) of shelters reconstructed with the above measures was greatly improved. PUE = Total power consumption of a shelter / Power consumption of IT equipment. Reconstructing a shelter using common measures that incur low workloads can decrease PUE from 1.95 to 1.8 and use 16% less energy for the cooling system. Solutions that require extensive reconstruction, such as precise upward air supply, reduce energy use by more than 30%

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