Ariya Finergy Holdings Limited

Powering Agriculture with Renewable Energy

Obstacle

A lack of stable and available energy sources for horticulture in Kenya can lead farmers to rely on expensive, polluting diesel generators as a backup source.

Innovation Type

Energy-Food

Financing Status

Seeking Grants, Seeking Venture Capital, Seeking Commercial Debt

Seeking investment?

Yes

Country of Incorporation

Kenya

Country(Ies) of Implementation

Kenya, Uganda

Contact Name

Jenny Fletcher

Contact Email

jenny@ariyacapital.com

Product Segment

Energy - Residential & Commercial Energy Production

Ariya Finergy Holdings Limited (Ariya) is an experienced fund manager that develops, structures, invests, and manages clean energy and infrastructure projects throughout sub-Saharan Africa. Ariya has partnered with African Solar Designs (ASD), a Kenya-based renewable and rural energy company, and Windfire, a UK-based renewable energy company that provides medium-scale Vertical Axis Wind Turbine solutions for the Distributed Renewable Energy (DRE) sector.

On-site power supply and management services provided by Ariya will enable flower farms and horticulture groups to displace grid power with renewable sources of power, leading to reduced energy costs and a reliable power supply not subject to load shedding or instability.

Agriculture is a cornerstone of Kenya’s economy, with horticulture and the export of flowers serving as a major employers and energy costs accounting for 15 percent of input costs of Kenyan agriculture. By helping East African horticulture exporters to increase their bottom line, employees on their farms—ranging from 1,000 to 25,000 per farm and 50% women—and the associated local communities can benefit from greater job security and improved living standards.

Other impacts include reduced carbon emissions, improved productivity, and reduced water usage resulting from farms using more sophisticated agriculture and horticulture techniques, and where legislation permits, the export of excess power to the grid or through micro-grid designs that permit supply to other local businesses and communities.

Ariya will leverage Powering Agriculture’s investment to catalyze additional financing of 2.6 times the original award to install 20 systems totaling a minimum of 2.4MW over the life of the award period.

Ariya has commissioned six systems as of October 2018, totaling over 480kW. On average the systems cover 37% of the clients’ energy consumption. All the installed systems are continuing to operate optimally with regular operations and maintenance support and reports being provided to the clients. The majority of Ariya’s customers employ more than 50% women. The systems include remote monitoring and are used for power pumping, refrigeration, lighting, irrigation, and fertilizer dispersal. While many farms have access to the national grid, Ariya’s systems ensure consistent, reliable power for their operations.

Ariya is developing two business models: one that will target smaller clients (100-300kW) and one for larger clients (up to 5MW), the power solutions provided to larger clients typically also include storage and stabilization.

Challenge

Agriculture is a cornerstone of Kenya’s economy, with horticulture and the export of agricultural products being sources of major employment in the region. Expensive, unreliable power and limited, erratic water supply are major challenges for modern Kenyan agriculture, with energy accounting for around 15 percent of operating costs. The lack of affordable, stable and fully integrated clean power solutions is a major challenge, which leads farmers to rely on expensive, polluting diesel generators as a backup power source. Once innovative solutions have been identified, the testing and training of national staff, market acceptance and scaling of the solutions requires substantial risk capital for sustainable adoption and penetration.

Solution

Ariya is the power partner for its clients, providing end-to-end fully financed cost-effective, low-risk renewable energy generation, storage, stabilization, energy efficiency, and water conservation solutions. Ariya not only provides structured financing products to minimize the up-front investment required by farmers, but also offers continued operations, maintenance, and technical support services to ensure ongoing integrity of the system’s efficiencies. This mixed technology approach, deploying various distributed renewable energy and energy efficiency solutions, allows flexibility in designing bespoke systems for each user. Ariya’s scalable business model incorporates the integration of various technologies, including battery energy storage systems, voltage regulation, solar thermal, solar PV, direct current solar pumping, and floatovoltaics.

Videos

Photos

Click on a photo to view it larger. Right click on the larger version to save it to your computer.

Print