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  • OPEX Model

OPEX Model

In the OPEX model, a 3rd party energy service company (ESCO) invests the CAPEX and the Operator pays monthly for the energy usage. The responsibility of ensuring 24x7 Power availability including site operation, maintenance & refueling lies on ESCO’s shoulder.

  • Zero investment for the MNO.
  • Indicates direct savings.
  • No operational hassle.
  • Let the experts do.

Financial Analysis:

  • Operator has to invest all CAPEX either from its own source or from capital market; therefore financial risk belongs to Operator.
  • IRR and NPV of Green Power deployment is significantly more attractive.
  • For mass deployment, CAPEX investment is a barrier since it may require hundreds of millions of dollars.
OPEX Model
  • Operator does not have to invest for CAPEX, therefore no financial risk to deploy green power.
  • IRR and NPV increases for telecom site since site OPEX reduces.
  • Since mass deployment increases the business opportunity for ESCO, it comes more viable to invest.

Operational Analysis:

  • Regular day-to-day site operation is the responsibility of the operator.
  • All cost related to site operation is incurred by the operator.
  • Site uptime and SLA maintenance is typically on the operator. If it fails the Operator bears all financial loss/penalty.
  • OPEX for technical operation is low.
  • OPEX for site operation is high.
OPEX Model
  • Site operation is a responsibility for the ESCO; therefore Operator does not need to deploy resource for site operation.
  • Operator pays only based on energy usage, a pre-agreed rate, therefore operational cost is forecast-able and comparatively lower than DG based energy cost.
  • SLA and Uptime is the responsibility of the ESCO. If it fails, the ESCO bears the penalty.

Strategic Analysis:

  • All asset of green power belongs to the operator, therefore increases portfolio & branding value of the organization.
  • Maximize utilization of existing assets.
  • Easy to cope with variable changes.
  • Multi 3rd parties´ engagement makes the model complex for operator to handle at last mile.
  • Increase debt for organization.
OPEX Model
  • Easy to control last mile performance since the ESCO is the only last mile partner.
  • Full benefit of GHG emission reduction.
  • Increases complexity of state management.
  • Not so easy to cope with increased power requirement on a regular basis.
  • Reduces the risk of unforeseen energy OPEX due to market change and consumer inflation.