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Renewable Energy Feasibility and Energy Efficiency Report

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Executive Summary

This feasibility study was carried out at Mweiga Blooms Ltd in order to identify various Alternative Energy Sources (AESs) at the facility and with a main focus of a solar PV system on the upper farm. One (1) AESs was identified as the ground mounted solar PV system, this was due to availability of a large tract of land which will be rolled out in phases. Other than the alternative sources of energy, we recommended other energy conservation measures, the practice of using more energy efficient systems in the facility was to reduce further the energy consumption on the farm, when the farm is in operation. Energy conservation measures (ECMs) are considered here because the cleanest and cheapest energy source is the energy that is used.

From the outlined recommendations on the energy efficiency system and renewable energy technologies we have a draft investment plan phased our as follows: ? AES 1 – Energy conservation measures (ECMs) – To be implemented in phases with Lighting and High Efficiency Motors (HEMs) within the Year 1 of operation resumption and Variable frequency drives on Year 2 of facility operations resumption ? AES 2 – Solar PV system - To be implemented one year after the study that’s January 2020, thus allows other regulation fulfillment such as licenses and negotiations for Phase 1 (3,000 kWp). Phase 2 that’s 13,701 kWp system be rolled out in 2022

Techno economic analysis was done for the solar PV system to ascertain their viability for implementation at the facility. The following is a summary of the AESs studied; 1. AES1 - Energy Conservation Measures(ECMs) - this is the cheapest and the cleanest energy source. Once implemented, ECMs have the ability to reduce energy consumption in the facility hence a reduction in the operating expenses of the facility. Implementation of the ECMs should be the first step when it comes to installation of a new power generation plant because it can significantly reduce the size and consequently the cost of constructing a power plant. ECMs can reduce the size of a power plant that is to be constructed, thus in itself is an energy source. In this study the following ECMs were identified and analyzed to assess their impact on energy consumption at the facility. a) Lighting Upgrade- This will involve replacement of all fluorescent high efficiency LED lights which can save over 60% of lighting energy in the facility. b) Replacing standard efficiency motors with high efficiency motors - Energy constitutes to the highest percentage of Life Cycle Costs of a motor; approximately 95%. Thus, a high efficiency motor reduces the Life Cycle Costs of a motor. A high efficiency motor can save up to 5% of the energy compared to standard motors. c) Installation of Variable Frequency Drives(VFDs) on all the pumps. The pump motors are running at 100% during the facility runtime. With VFDs, the motor speed is matched to the flow as per affinity laws hence leading to energy savings. Motor speed is dependent on load.

A survey of agro-industries (outside the sugar sector) that are currently generating their own heat and power from agricultural waste or deploying other renewable energy technologies such as biogas, solar and small hydro show that the installed generation capacity of most is in the order of less than 1 MW with only a handful of tea companies and flower processing enterprises using 2-3MWs. The report is organised in the following fashion: the first two sections present an overview of the energy and key agro-industrial sectors in Kenya, respectively. The third section, examines each selected agro-industrial sector with the objective of assessing its ability to convert its agricultural residues to green energy or to deploy other renewable energy technologies. Based on a review of each sector’s production history and trend, prevailing organisational structure, energy needs and use, the study discusses relevant clean energy options. The fourth section discusses opportunities available for agro-industries to expand clean energy deployment and identify key barriers to harnessing the significant clean energy resources available to agro-industries.

By assessing four main agro-industrial sectors as well as reviewing past and recent policy developments in the energy sector, this report has identified key stakeholders, their interests as well as possible barriers to engaging in clean energy production in their respective sectors. It contributes to strengthening a foundational understanding of the influencing factors, the motivation as well as constraints that impede agro-industries from participating or scaling up their capacity in clean energy production. The report also observes that sectors that have managed to retain their share of the global market i.e tea and horticulture - driven by the need to cut costs and ensure reliable supply -have registered encouraging success in utilising their agricultural waste and deploying renewable energy technologies. With more direct support and better cross-agencies coordination, the Government can create a conducive environment to support and scale-up agro-based clean energy projection.

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