Nokia helps mobile operators become virtual power plants
- February 27, 2024
- Steve Rogerson

Nokia has launched virtual power plant (VPP) controller software, a near-real-time software-based end-to-end platform that helps mobile operators monetise the existing backup batteries at base station sites.
By seamlessly switching from grid power to backup batteries, operators can lower their energy costs in electricity spot markets, generate revenues in grid frequency balancing markets, and reduce their carbon emissions. Nokia has completed several trials and aims to make this available later this year.
The VPP controller software contributes to the stability of the electricity grid and creates a new purpose and function for the base station backup batteries, which are usually idle as power cuts can be rare.
Most countries have a transmission system operator that manages the electricity grid and oversees the power reserve markets. Power reserve markets operate an auction system that enables third parties to bid to provide power. By bidding and winning, an operator can use their backup batteries to run their base stations while maintaining normal operations or provide energy to the market instead of using the grid energy. This turns their battery backup power systems into an investment with a steady financial return. In addition, the system supports renewable solar energy production. Being part of an electricity grid’s reserve power helps the grid avoid power cuts and reduce its CO2 footprint.
The software ensures it is safe to use batteries in the power reserve marketplace and estimates how much extra backup battery capacity is available based on the power-consumption profiles for each power station. It uses machine-learning algorithms to create smart offerings based on the actual and the predicted power consumption and the related extra backup power capacity.
The auction bidding process in the power reserve market is also part of Nokia’s software and makes it seamless and easy for mobile operators to enter. This includes the fast frequency reserve market, which requires a sub-second reaction time to offload from the grid and monetise the batteries. The low latency is achieved by using near real-time processing servers and Nokia’s power system.
Nokia also outlined its commitment to energy efficiency with several product enhancements. This includes extreme deep sleep cell-switch-off mode, which leverages software in Nokia’s AirScale Habrok Massive MIMO radio units, reducing energy consumption by up to 97 per cent compared with a cell on air but without traffic, and the unique zero traffic, zero energy option that switches off all radio resources when there is zero traffic.
The energy efficiency of the radio network software can be further enhanced with Nokia’s MantaRay Energy, which automates and optimises the configuration of the RAN energy-saving software features with AI and ML.
Nokia also introduced a liquid-cooled baseband hotel site option, which enables up to 90 per cent energy savings in baseband hotel cooling systems compared with active air cooling. It also enables up to 80 per cent reduction in carbon emissions when the waste heat is used for other purposes such as building heating.
“Virtual power plant related services from mobile networks are a nifty means for operators of helping drive environmental benefits through more efficient energy usage and less wastage, while also helping the P&L by monetising existing assets,” said Emanuel Kolta, lead analyst at GSMA Intelligence. “This is key, especially for cost reductions considering that energy is still 20% of opex for the average operator. However, and this is what’s new, by leveraging passive infrastructure such as batteries and solar panels, operators are also well positioned to provide new services in a market largely untapped by the sector so far: energy management. By selling excess power to the grid, operators can become virtual power plants and develop a new revenue source, something that scales the more of a network footprint utilised in this way.”
Nokia has set sustainability targets to reduce its environmental impact and help its customers do the same. Nokia tracks, measures and reports transparently on these targets. Nokia also publishes a sustainability report every spring and reports quarterly and annually as part of its financial reporting.
“Nokia’s virtual power plant is an incredible innovation that will help our customers monetise the energy stored in their backup batteries while also reducing carbon emissions,” said Tommi Uitto, president of mobile networks at Nokia (www.nokia.com). “We are committed to continuously maximising the energy efficiency of our technology portfolio. Our energy-efficient hardware combined with software features such as extreme deep sleep are the key to reducing the energy consumption, carbon emissions and related costs of mobile networks.”