Background Story
The client is recognized as one of the leading hatcheries in Kenya, known for producing broiler and layer day-old chicks as well as processed chicken products. 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 Kenya. The project aims to achieve annual energy savings of 240,353 kWh. Seventy-five percent (75%) of the total project cost of EUR 89,038 is funded through a UNIDO grant. The project is executed under a shared-savings performance contract.
Challenges
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 & Costs: Implement energy efficiency measures that significantly reduce electricity consumption (kWh) and deliver measurable cost saving
Improve System Reliability: Enhance operational stability by optimizing power quality and the performance of critical equipment
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 readines
- 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 47,359 in annual cost savings achieved through reduced electricity consumption
- 8% reduction in energy use, improving operational efficiency and lowering operating costs
- 37 tonnes of CO₂ emissions avoided annually, reducing the facility’s environmental footprint
- 1.8-year payback period, demonstrating strong financial viability and sustainability
- Creation of 5 jobs through project implementation and ongoing operations
- Improved electricity access for 50 people, enhancing reliability and productivity