2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 42 Today our energy consumption is offset or mitigated in a variety of ways, including the engagement of a mini-grid constructor partner at our Remba island site, which is not connected to the national grid. Rectifiers (electronic devices that convert alternating current (AC) to direct current (DC) for better energy efficiency) and low-voltage automatic phase selectors (APS) enable us to utilise lower voltages. REDUCING ENERGY INEFFICIENCIES We have rolled out a programme to replace inefficient rectifiers and old generators, as well as to connect some unconnected sites to commercial power (so far, 394 out of 424 sites have been connected). We also are replacing our back-up batteries with more efficient cyclic batteries. We have developed a site cost tool to manage fuelling process and payment, which will address problems of fuel theft and visibility of stock. Installation is still in progress, but we already have improved our fuelling process management at 1,800 sites, reducing our average spend on fuel from 140 litres to 80 litres per day. We have been addressing challenges relating to the project management of our fuel management system (FMS) through regular feedback meetings and by including other stakeholders, such as field engineers and security personnel. The system has now been rolled out at 1,715 out of 2,000 sites. RENEWABLE ENERGY NETWORK ENERGY SOURCES We continue spearheading green solutions on our network sites, particularly the installation of renewable energy alternatives to high-carbon technologies. We are trialling wind turbines on two of our sites in Turkana. A battery optimisation project is under way on sites where we have good battery autonomy and stable, consistent access to the national grid. At these sites we have discontinued the use of generators, instead using battery power as a backup. This also saves costs incurred by site maintenance. Hybrid systems have been rolled out at 91 out of 100 planned sites for FY19, using lithium batteries and solar power, supplemented by 50 per cent generator power. National grid Deep cycle batteries Diesel generators Renewable energy (wind, solar and hybrid) Energy source FY19 FY18 FY17 FY16 National grid 94.5% 85.6% 84% 88.8% Diesel generators 1.9% 1.6% 3.4% 3.1% Renewable energy* 3.7% 2.5% 1.5% 1.3% Deep cycle batteries** 50% 40.8% 36% - * Wind, solar and hybrid ** Most of our sites with access to the national grid also have deep cycle batteries for back up, so the quantities may not add up to 100%. FY16 FY18 FY17 FY19 0 10 20 30 40 60 70 80 90 100 50 % contribution to total energy Financial Year Energy source