China has released a plan to actively promote the use of 5G technology in the energy sector and the convergence of the country’s telecom and power infrastructure in a bid to fuel integrated growth of the two sectors. The deep integration between 5G and various industries in the energy sector will effectively drive innovations in the production and consumption of energy, and inject a strong impetus to the energy revolution. In the next three to five years, China aims to develop key 5G use cases, build dedicated networks, and establish competitive business models in areas such as “intelligent” power plants, power grids, coal mining, oil and gas production, and comprehensive energy supply. The power grid companies are encouraged to supply power directly to the carriers instead of going through intermediary parties, and the carriers will be able to participate in electricity trading. China was home to 700,000 5G towers as of last November, accounting for almost 70% of all 5G towers deployed around the world. Chinese investment bank CICC estimate that China will build another 800,000 to 1 million 5G towers this year.
5G towers are much more expensive to deploy than the 4G ones, and they also consume more electricity. High power consumption has forced China Unicom to put some of its 5G base stations to “sleep” overnight to reduce electricity costs in the city of Luoyang. A white paper from telecom equipment maker Huawei last year revealed that 5G base stations use up to three-and-a-half times more energy than 4G infrastructure. Part of the problem is that this new generation of mobile connectivity requires more densely placed base stations. It will take China’s three telecom operators several years to make a profit from 5G, analysts say, and many Chinese consumers have complained about the higher prices of 5G service packages, saying they don’t need the extra bandwidth. Now the government is pushing for a collaborative model between the carriers and the power grid companies to lower 5G deployment costs. Digital transformation can help China’s energy industry increase sales, reduce costs and improve efficiency. Scope of business includes research and development of online power measuring technology, emerging energy technologies, energy recycle systems, and the manufacturing of photovoltaic equipment and parts.