Background Story
The client is a leading referral hospital in Rwanda, located in an upscale area of Kigali, with 18,000 square meters of floor space distributed over four floors and an additional 2,285-square-meter extension. The client sought to implement an energy efficiency project to reduce energy consumption and carbon footprint. As part of the Energy Efficiency Lighting Appliances (EELA) project, UNIDO engaged Ark Energy to provide project management consulting services and to supervise the implementation of an energy efficiency retrofit project in collaboration with a leading ESCO in Rwanda. The project aims to achieve annual energy savings of 337,616 kWh. Seventy-five percent (75%) of the total project cost of EUR 228,878 is funded through a UNIDO grant. The project is executed under a shared-savings performance contract.
Challenge
The project faced challenges related to tight timelines, quality assurance, and the complexity of managing multiple implementation phases. Ensuring the successful implementation of multiple Energy Conservation Measures (ECMs) required Ark Energy’s technical expertise and capital to support key activities, including EoI pre-screening and shortlisting, detailed energy assessments, feasibility studies, funding model selection, gap analysis, proposal and due diligence reviews, project supervision, and the establishment of robust M&V processes. Limited client infrastructure and the ESCO’s experience in digitalization further increased the need for strong oversight to ensure credible energy savings and overall project success. The diversity of ECMs increased implementation complexity and required strong technical supervision and M&V oversight.
Main Objective
Reduce Energy Consumption and Costs: Implement energy efficiency measures that significantly reduce electricity consumption (kWh) and deliver measurable cost savings
Improve System Reliability: Enhance operational reliability by installing a solar water heating system, replacing inefficient DX units, and upgrading lighting systems in accordance with ASHRAE standards
Enable Performance-Based Savings: Adopt a shared-savings model with performance guarantees to minimize financial risk and ensure verifiable energy savings
Enhance Sustainability: Reduce the facility’s carbon footprint and demonstrate leadership in sustainable agribusiness practices
Approach
Ark Energy followed a structured, end-to-end approach to ensure the successful identification, development, financing, and implementation of energy efficiency measures at the hatchery. The approach focused on technical rigor, financial viability, quality assurance, and verifiable performance outcomes:
Project Screening and Selection: Evaluated and shortlisted the hatchery project based on technical feasibility, financial viability, and implementation readiness
Energy Assessment and Feasibility: Conducted detailed energy assessments to identify Energy Conservation Measures (ECMs) and validate achievable energy savings
Bankable Business Case Development: Developed a robust feasibility study and structured a shared-savings performance contract to minimize client risk
Technical and Commercial Due Diligence: Reviewed technical designs, financial models, and proposals to ensure compliance, quality, and credible performance outcomes
Implementation Supervision: Supervised the execution of multiple ECMs to ensure timely delivery, quality workmanship, and adherence to agreed specifications
Measurement and Verification (M&V): Established robust M&V plan to ensure transparent, accurate, and verifiable energy savings
Results
The results that were generated from the project include the following:
- EUR 29,549 in annual cost savings achieved through reduced electricity consumptio
- 34% reduction in energy use, improving operational efficiency and lowering operating cost
- 63 tonnes of CO₂ emissions avoided annually, reducing the facility’s environmental footprint
- 2.4-year payback period, demonstrating strong financial viability and sustainability