Q&A: Solar solutions could help solve Kenya's agriculture woes

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Kenya experiences significant post-harvest loss, with about 40% of its food being lost between the farm and the table. Innovative solar solutions, like DC-powered freezers, can help solve some of these issues. We spoke with Belinda Okech, an energy consultant, to discuss various sectors where solar technology presents significant opportunities.

• Belinda Okech has worked in the energy sector for close to a decade, delivering solar solutions in the East African region. She has worked for several companies, including Davis & Shirtliff and Herholdt’s Group, a South African company and Sun King. Currently, a renewable energy consultant at Merculex Energy Solutions.

• Ms Okech states that when energy is directly linked to income generation, its impact multiplies. While the initial upfront cost of solar is high, the unit pays for itself within a few years, and subsequent costs are negligible compared to grid electricity.

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Could you take me through the process of securing a deal, from initial client engagement to sealing the deal?

Belinda Okech: Every solar project begins with understanding a client's specific energy needs. For industrial clients like manufacturing plants in Kenya, this often starts with energy audits, a requirement mandated for large consumers every two years by the Energy and Petroleum Regulatory Authority (EPRA) to ensure grid stability. Based on these audits, advice is given on improving energy efficiency and integrating solar. 

For other projects, whether residential, for small and medium-sized enterprises (SMEs), or non-governmental organisations (NGOs), the key is to understand the client's true energy needs and consumption patterns. For instance, a factory's peak demand guides system design, while a health clinic might require power for vaccine cold storage, or a school for computer labs.

After understanding these needs, we conduct assessments and load analysis, leading to the system design. This includes sizing components and accounting for factors like shading. After design, financial modelling is done, followed by procurement, logistics, and installation with local technicians. A crucial final step is establishing an operation and maintenance contract to provide ongoing support and client training.

What challenges do you face in the design-to-installation phase?

Belinda Okech: It’s not an overwhelming number of challenges. In rural areas, particularly with some schools we work with, the main issue can be the structural integrity of roofs. In such cases, we advise clients that the roof structure needs to be modified if it cannot support solar panels.

Finances are also a significant hurdle, especially for small businesses and institutions. Many projects fail to get off the ground due to a lack of funding or because financiers perceive these projects as high-risk.

Another challenge involves logistical issues, depending on how remote the site is. In urban centres, installations are generally smooth. For example, a project we did in the Democratic Republic of Congo (DRC) was tough due to its remote location; we had to cross rivers, and vehicles got stuck in mud. These are typical challenges that arise during installations. Every installation has its unique difficulties, but they are usually manageable.

Where do you see the biggest growth opportunities in the sector?

Belinda Okech: Growth opportunities primarily lie in productive energy uses, especially in agriculture and cold storage. Solar-powered water pumping is already widely adopted in Kenyan agriculture. Cold storage is vital for preserving agricultural produce. Additionally, local manufacturing presents opportunities, even for small-scale, community-based operations. When energy is directly linked to income generation, its impact multiplies. While the initial upfront cost of solar is high, the unit pays for itself within a few years, and subsequent costs are negligible compared to grid electricity.

We can achieve a significant impact by addressing financing for small agricultural businesses and health centres. Simple energy solutions can be pitched to investors, especially considering the frequent power blackouts faced by rural health clinics and maternity services. With income generation, clients can repay the investment. 

This is a vast area, and the energy-as-a-service model, which often offers longer payment tenures, is well-suited for productive uses by SMEs. For example, manufacturing plants often secure PPAs for 15 to 20 years, but small businesses typically only get three-year financing from banks, which makes it expensive due to perceived risk.

Where do you see innovation playing a big part in the solar sector?

Belinda Okech: I'm particularly excited about modular battery storage. You can start with a 5-kilowatt-hour (kWh) battery and incrementally add more as your energy needs grow, even up to 30 kWh for residential use. Commercial systems are also designed for stacking. These systems incorporate smart energy management, allowing clients to monitor their energy consumption, and Internet of Things (IoT) remote monitoring, which helps providers detect site challenges remotely, reducing the need for physical visits.

Another very exciting innovation is solar-powered freezers. Many farmers and health centres are adopting them. They use DC power, eliminating the need for expensive inverters, and only require an affordable control box. I’m also seeing many low-wattage electric induction cookers. This trend is enabling people to go completely off-grid or even stop using gas in their homes, powering their cooking with solar and the grid.

If you had a meeting with an investor, what would you tell them about the renewable energy or solar energy space in Kenya and Africa?

Belinda Okech: For investors interested in Kenya, I would tell them that Kenya is the hub of East Africa, and I believe it will soon be the hub of the entire continent. There are numerous opportunities within the country across various sectors, offering significant returns and impact. As I mentioned earlier, in productive uses, healthcare, commercial, and agriculture, there's immense potential. While these sectors might be relatively new to some investors, there's a lot of opportunity if we develop smart ways to tap into them. Energy drives the economy, and there are many avenues for us to grow in this space.