Smart Aquaculture Hub (SAH)

The Indonesian economy relies heavily on Micro, Small, and Medium Enterprises (MSMEs), especially in aquaculture. Indonesia has over 2.54 million small-to-medium-sized fish farmers. These aquaculture MSMEs not only provide a source of livelihood for millions of Indonesians but they are also major contributors to food security, export earnings, and the country's GDP (Ministry of Marine Affairs and Fisheries of the Republic of Indonesia, 2023). Despite their importance to Indonesia, many small fish farmers encounter challenges in accessing modern technologies and fair and affordable financing. Lacking access to affordable financing also reduces investment and compels some farmers to rely on informal money lenders charging exorbitant interest, resulting in financial cycles of strain and limited growth.

The aquaculture industry in Indonesia is a USD 12 billion industry, but the predominance of MSMEs results in fragmentation of the industry. While MSME farmers potentially offer advantages, the fragmentation poses logistical and financial challenges that hinder profitability. MSME farms also face these obstacles:

• Limited Economies of Scale: Smaller operations struggle to achieve economies of scale, hindering their ability to invest in essential infrastructure like cold storage facilities. This also limits the shelf-life of their produce and restricts access to premium markets that demand higher quality standards.

• High Transportation Costs: The dispersed nature of these fish farms necessitates frequent deliveries across vast distances, leading to significant transportation costs for the digital cooperatives tasked with logistics. These costs further erode the profit margins of smallholder farmers.

• Limited Bargaining Power: Fragmented operations lack the collective clout to negotiate favorable prices for essential supplies like feed or fingerlings (young fish for aquaculture). This puts them at the mercy of suppliers and erodes profit margins.

• Knowledge Dissemination Bottleneck: Sharing best practices and adopting new technologies becomes a challenge in a fragmented system. Information dissemination is slow and uneven, hindering overall industry progress.

Compounding these challenges, Indonesian aquaculture relies heavily on diesel fuel to produce electricity for appliances like aerators, auto feeders, etc. The high cost of diesel, estimated to be around USD 1.1 billion annually for Indonesian fish farmers collectively (Ministry of Marine Affairs and Fisheries, 2023), erodes profits, hindering investment in farm improvements and hindering growth. Since many are located in rural areas, fish farms often lack access to reliable electrical grids and resort to captive power generation. Instead of using diesel fuel, an expensive and polluting source of power, locally distributed sources of renewable energy, such as solar or micro-hydro power, could be sustainable alternatives to reduce the costs and environmental impact of these farms. 

Indonesia holds a promising key to unlocking the full potential of MHPs for its rural aquaculture sector: a nationwide assessment has identified 44,168 potential micro-hydro sites with capacities ranging from 5kW to 1MW (“Ministry of Energy and Mineral Resources”). By carefully selecting these sites based on proximity to aquaculture farms and integrating them with the SAH, a fitting solution emerges. The Moped Microgrid is our scalable renewable energy solution for green industrialization. Utilizing MHPs, we can tap into a baseload power source to electrify a single off-taker in the smart aquaculture hub, a facility that houses cold storage and other value-added services for smallholder fish farms. 

The benefits of our solutions are as follows: 

• Centralized Cold Storage: micro-hydro-powered SAHs can house centralized cold storage facilities. By aggregating inventory from nearby farms, these facilities can achieve economies of scale, significantly reducing energy consumption and storage costs for smallholder farmers. 

• Improved Logistics and Transportation: SAHs optimize logistics and transportation networks by reducing minimal transportation costs. Deliveries can be consolidated, minimizing travel distances and further reducing operational expenses for both farmers and digital cooperatives. Our partnership with eFishery being at the center of these operations means that both farmers and exporters can utilize the same cold storage facility to store products, reducing the need for transportation until ready for exporting. 

• Financial Empowerment: Reduced operational costs from clean energy and efficient logistics translate into higher profits for smallholder farmers. This financial empowerment allows them to invest in farm improvements, technology adoption, and overall business growth.

• Reduced Greenhouse Gas Emissions and Climate Change Mitigation: Integrating renewable hydropower significantly reduces greenhouse gas emissions from the aquaculture sector. This contributes to mitigating climate change, protecting the marine ecosystems upon which these farms rely, and promoting long-term environmental sustainability.

• Enhance Market Access: Consumers increasingly seek products from environmentally conscious producers. By embracing renewable energy, Indonesian aquaculture can access premium markets and potentially command higher prices for their products. This translates into increased export value, boosting the national economy.

Indonesia's smallholder fish farmers face a significant challenge. Up to half of their harvest is lost due to a lack of proper equipment like aerators and cold storage systems are crucial for fish health and product quality, but expensive due to reliance on high-cost, polluting diesel generators.  Ironically, Indonesia boasts the world's second-largest hydropower reserves, with abundant renewable resources readily available near these farms. Yet, only 7% of this potential is harnessed. 360energy's Moped Microgrid offers a comprehensive and sustainable solution.  This scalable platform utilizes micro-hydropower systems to provide reliable, 24/7 electricity to rural industries. Unlike solar or wind power, micro-hydro offers consistent baseload energy generation, free from the limitations of intermittence. Guppy systems also require minimal infrastructure, eliminating the need for dams or penstocks, unlike traditional hydropower.

The economic benefits are undeniable. With diesel prices at 9.4 cents/kWh, 360energy's base electricity price is highly competitive, especially compared to solar systems with a price tag double that of the Guppy. Reaching the vast number of Indonesian fish farmers, estimated at 2.5 million, is achieved through a strategic collaboration with eFishery, the world's first billion-dollar digital cooperative. eFishery connects 300,000 smallholder farmers to essential services and facilitates market access. Through this partnership, farmers can obtain equipment from eFishery's vendors, connect with exporters through the platform, and conveniently pay for energy via the same app. The impact of this approach has been validated through pilot projects. Mr. Sumarna's tilapia farm, for instance, witnessed a 250% surge in production due to the integration of aerators and cold storage systems powered by the Guppy microgrid. This achievement was accomplished while simultaneously avoiding a significant amount of CO2 emissions, totaling 27 tonnes.

A closer look reveals a win-win situation for both the company and the farmers. The electricity is competitively priced at 8.7 cents per kWh, translating to a cost reduction of 35% for the farmers and a consequent 7% increase in their operating margins. This seemingly small increase is significant considering the average profit margin of 10-15% for these farmers.  For 360energy, this solution translates to a 47% profit margin and a rapid payback period of 2.6 years. Beyond cost savings lies a substantial environmental impact. In a conservative prediction, 360energy's micro-hydroelectric grid would produce 5 kW per hour with a capacity factor of 0.7. With these numbers, each power plant would avoid 4,315 grams of CO2 per hour and 38 metric tons of CO2 per year.  With a short-term deployment plan of a total of 112 power plants in 2027, compared to the traditional aquaculture baseline, the substantial reduction is projected to be 497,746 grams of CO2 per hour or 4,360 metric tons of CO2 per year –  equivalent to the emissions of 2,200 cars.  The microgrid's positive impact extends beyond direct emission reduction, fostering a cleaner environment and a more sustainable future for the Indonesian aquaculture industry.

360energy's Moped Microgrid, coupled with the collaboration with eFishery, offers a powerful and sustainable solution for Indonesian smallholder fish farmers.

At 360energy, our commitment to the communities we live in and serve is paramount to designing and delivering impactful solutions. Indonesia's Aquaculture Industry exemplifies this commitment. The inspiration for our venture in Indonesia’s Aquaculture Industry stems from the personal experience and journey of our co-founder, Kemal. During a period of mourning for his late grandmother in the village of Bandang, West Java, Kemal reconnected with Mr. Sumarna, a smallholder fish farmer and his grandmother's neighbor. They talked about Mr. Sumarna's struggles with fuel costs and the potential for local hydropower. Kemal saw an opportunity to make a meaningful difference. This experience transformed his personal loss into a professional mission: to empower the community by harnessing sustainable energy solutions that could be used by Mr. Sumarna and many others with small farms or businesses.

Initially, we planned to provide Mr. Sumarna with low-cost electricity by using standard micro-hydro equipment. However, as we collaborated with Mr. Sumarna, his vision for electricity use shifted from power generation to directly improving fish farm operations. Mr. Sumarna's needs and priorities – to maximize farm output – changed our strategy.  We explored options for electrical appliances like pond aerators, which increase fish yield by 250 percent. We shifted our focus from electricity provider to catalyst for improving aquaculture.  Mr. Sumarna’s insights informed our initial steps and led to collaboration with a wider group of local farmers. Tailoring our solutions to their needs ensures that our work remains relevant and a scalable model for farmers in the Indonesian aquaculture industry.

An intense period of collaboration and communication with aquaculture farmers confirmed that they are ready and willing to adopt new technologies that increase their overall profits, but they lack access to capital. The smallholder fish farmers we contacted, like millions of other Indonesian farmers, simply could not afford to purchase the equipment needed to increase their profits. This vicious cycle has impaired their ability to invest in their farms and increase their welfare. Continued engagement with local farmers led us to develop a scalable and affordable approach that meets their needs.

Sustainable Aquaculture Hubs (SAH) enable fish farmers to access the machinery required to increase productivity without initial capital costs since payments are based on customer usage. SAHs create shared platforms that reduce upfront costs and enable farmers to expand their operations and increase their profits. A hub that serves a lot of smallholder fish farms would provide scale and reduce costs for small farmers like Mr. Sumarna. This approach not only addresses the root problem but also opens a new industry with a scale and scope that benefits wider aquaculture communities.

Distribution Channels

We prioritize partnerships with aggregator startups that support financially capable farmers, maximizing the impact of our services through their financial and operational backing. Given the success of aggregator startups, market consensus suggests a rising trend of SMEs adopting this model, as 30 startups are already part of Digifish Network – a startup hub for integrated aquaculture business and information networks (Indonesia’s emerging aquaculture startups | The Fish Site). This signals an opportunity for achieving product-market fit, wherein services and technologies specifically designed for farmers can seamlessly integrate with the established value-chain model, allowing us to capture the entirety of the market strategically. This approach has been exemplified by PT. Multidaya Teknologi Nusantara (eFishery), Indonesia's leading aquaculture aggregator startup. They have successfully created a network of fish farmers to collectively foster trust, facilitating the seamless adoption of innovative technologies such as automatic feeders among the farmers and introducing the farmers to financing through payment plans. eFishery's success highlights the effectiveness of this strategy in introducing new technologies to the agricultural community. Such prompts us to direct our efforts toward serving the aquaculture industry through aggregator startups as our primary market segment. By concentrating our resources and expertise on aggregator startups and introducing a familiar payment scheme, we aim to allocate our assets more effectively and efficiently. We will be best positioned to cater to our target customers' specific requirements and demands within the industry. By embracing this focused approach, we are better equipped to refine our product offerings and develop tailor-made services that directly address the challenges faced by aquaculture farms.

In 2024 we aim to complete five deployments. We have formalized a Memorandum of Understanding (MoU) with eFishery as the largest aggregator startup in Indonesia to become their 70,000 aquaculture farmers’ supplier of clean electricity. This initiative will be executed collaboratively, involving engineering subcontractors and project developers from PT. Rajawali Agung Wisea. As the technical surveys progress and potential deployment locations are identified, our focus will shift to engaging in discussions with clients that emphasize the economic benefits of transitioning from diesel generators to renewable energy, particularly in the chosen locations.

Manufacturing Partnerships

360energy has a strategic manufacturing partnership with PT. Heksahydro, a leading Indonesian turbine manufacturer.

This collaboration focuses on the production of ultra-low head vortex turbines, specifically designed for 360energy's innovative Gravitational Water Vortex Power Plants (GUPPY). By leveraging PT. Heksahydro's extensive experience and manufacturing capabilities, 360energy aims to achieve several key objectives.

Firstly, local production of GUPPY turbines will significantly reduce logistical costs and lead times. This will make these renewable energy solutions more accessible and affordable for Indonesian aquaculture businesses. Previously, the cost and time associated with importing these turbines may have been a barrier to adoption. Secondly, the partnership will foster collaborative R&D efforts between 360energy and PT. Heksahydro. This collaboration will focus on optimizing the design and manufacturing processes of the ultra-low-head vortex turbines, leading to improved efficiency and performance. By working together, both companies can contribute their expertise to create even more effective solutions. Finally, this strategic alliance goes beyond just producing turbines. It also fosters the creation of local jobs within the renewable energy sector. This not only benefits the local economy but also contributes to the transfer of valuable technical expertise and knowledge within Indonesia. As knowledge and experience are shared, Indonesia can build a stronger foundation for a sustainable future.

This partnership between 360energy and PT. Heksahydro demonstrates a strong commitment to providing sustainable and cost-effective solutions for the Indonesian aquaculture industry. It also aligns with 360energy's vision of empowering local communities and contributing to the nation's sustainable development goals. By working together, these two companies are paving the way for a more prosperous and environmentally conscious future for Indonesia.

Our goal in joining MIT Solve is not simply to get support in financing but also to refine the details of the business model, particularly in terms of revenue streams. First, financing support is essential for the continuation of the project which requires capital for start-up. Such financing will enable us to reallocate other resources to marketing.

Secondly, we would benefit from mentoring and guidance in refining the Sustainable Aquaculture Hub (SAH) business model and ensuring sustainable business operations. Currently, the SAH business model is based on two main sources of income: cold storage facilities fees and market maker fees. Cold storage facility fees would be paid according to the price of electricity that we generated with renewable energy sources. Market maker fees would be calculated as a royalty payment, a certain percentage of the total profit that our customers obtained through our services. 

The SAH would also offer services that provide a path toward export markets and farmers' training. Export markets present lucrative margins for farmers while training would increase their competitiveness. For the export market, we are working together with eFishery, the largest aquaculture start-up in the world, to facilitate the sales of sustainably-sourced aquaculture products. For the farmers' training, we would work together with professionals in giving farmers training on how to conduct their business sustainably, both environmentally and financially. SAH would also be the center for farmers' cooperatives, in which farmers could exchange their ideas and achieve economies of scale due to its aggregately massive scale.

This business model is complex and needs to be overseen by professionals and experts, of which we believe we would get from applying to Solve. We need experts in export deals and sustainable farming practices. These experts, we hope, would guide us into the details and technicals of the business concept and enable us to have a grasp on forecasting the necessary funds, activities, revenue, and challenges associated with the model. By having these experts oversee and guide us, we minimize the probability of failure, thus enabling us to optimally use the funds used to run the SAH’s business model.

Smart Aquaculture Hub (SAH) significantly improves the utilization of renewable energy. SAH enables the utilization of local renewable energy potential that does not require high-cost electricity distribution. One of the main hurdles that renewable energy faces is the mismatch between the center of populations(centers for electricity demand), with the location and supply of potential renewable energy. Distribution of electricity is very important to the point where experts always mentioned that “there will be no energy transition without energy transmission”. Yet, the renewable energy industry in general is still heavily focused on the production and consumption of electricity. Recognizing that distribution is a massive hurdle for the utilization of renewable energy, we decided to build a Smart Aquaculture Hub (SAH) which has zero distribution cost due to in-house electricity generation.

In providing electricity to SAHs, we utilize the available renewable energy potential in the particular area of the SAH. Through the implementation of SAHs, we are able to lower the cost of distribution and lower the loss of electricity. Not only that but since we are building a hub, we could build and/or order necessary materials in bulk, reducing the upfront capital amount and accelerating the adoption of renewable-energy-powered industries in Indonesia. We are agnostic on which renewable source to use since each of the renewable has its own merits. The biggest merit of solar is that it is very portable and easy to install, which it can be attached on top of the roof and electricity can be generated. On the other hand, hydropower is the cheapest and can generate electricity 24/7, especially in areas with massive hydro potential such as Indonesia. 

Inside the SAH itself, it will be an all-in facility for aquaculture farmers, in which it will have cold storage facilities. In addition to this, by using the SAH facilities, the farmers would be able to market their products to a wider range of customers. One such customer would be eFishery, the largest aquaculture start-up in the world. We have been working together with eFishery in establishing a market in which we facilitate the transaction for our customers’ fisheries products that are sustainably sourced and could be sold to the lucrative export markets. With this, eFishery would have a higher margin that has a trickle-down effect on our customers and us as the SAH’s manager. The revenue stream for the SAHs would come from cold storage facilities fees and also fees from our role as a market maker with eFishery and other potential buyers. This business model benefits everyone while also ensuring that we are operating in line with a zero-emission commitment. 

The initial Theory of Change for the Micro Hydro Energy as a Service (EaaS) for Greening Industrialization in Rural Indonesia focuses on addressing the environmental concerns in Indonesia's power sector, where 17% of emissions stem from captive power generation, particularly in rural areas. Following this, despite having a hydroelectric potential of 95GW, only 6% is currently utilized due to various challenges. The proposed Hydroelectric Energy as a Service model aims to leverage Indonesia's distributed hydroelectric potential, regulatory frameworks, and the energy needs of the aquaculture industry for sustainable rural development.

The activities encompass impact monitoring, technical development, and commercial installations, involving partnerships with civil society organizations, collaboration with governmental bodies, and technical advancements in turbine and IIoT research. Outputs include robust impact assessments, developed prototypes, and the installation of hydroelectric microgrids in targeted aquaculture areas. Shorter-term outcomes anticipate the establishment of multi-sector partnerships, immediate cost reductions for aquaculture farms, decreased diesel fuel consumption, and increased awareness of renewable energy solutions. Longer-term outcomes aspire to widespread adoption of renewable energy in Indonesia's aquaculture sector, contributing to economic benefits, reduced carbon emissions, and the achievement of broader environmental goals. The anticipated impact encompasses enhanced socio-economic stability, improved living standards, and job creation in renewable energy sectors, along with a significant reduction in the carbon footprint of the aquaculture industry, aligning with Indonesia's climate change mitigation strategies.

    There are two problems that need to be solved in order to achieve a faster and larger adoption of renewable energy. Those two problems are electricity distribution and upfront capital costs. In order to tackle these problems, there are long-term and short-term solutions. In the long term, there will be better transmission technologies and cheaper renewable energy power plants. However, the adoption of renewable energy must be accelerated if we want to meet our climate change commitment. In regards to this, we offer a short-term solution that could be implemented as soon as possible and be the bridgehead towards a larger and more efficient adoption of renewable energy.
    The shorter-term solution is embedded in our concept of SAH. SAH would accelerate the adoption of renewable energy due to its competitive unit economics and benefits for its users. The immediate output from SAH would be higher profit margins for aquaculture farmers due to possibilities in tapping the export market and more income in general due to the use of cold storage that would extend the selling period of our customers’ fisheries products. In addition to this, since it is a hub, transactions, and quality control in the aquaculture industry would be larger and easier, further increasing the profit margin.
    The long-term outcome of the solution is a better aquaculture industry while ensuring better environmental standards for future generations. A better aquaculture industry means a higher quality of products, resulting in a higher profit margin, thus increasing the attractiveness of the industry. This would increase the welfare of farmers and open jobs for Indonesia’s young population.

Our commitment to driving positive change extends beyond technology. We've developed a robust Environmental, Social, and Governance (ESG) framework that directly aligns with our Theory of Change. This framework ensures our micro-hydropower (MHP) deployments within Smart Aquaculture Centers (SACs) and fish farms not only contribute to a sustainable future but are also directly relevant to the local Indonesian context. The following framework outlines the key ESG considerations that guide our current and future MHP implementations:

* Note for environmental strategy:
Currently, the environmental strategy is focused on assessing the potential reduction in greenhouse gas (GHG) emissions through the implementation of micro-hydroelectric systems in the aquaculture sector, aligning with P4G's emphasis on environmentally conscious practices. This assessment utilized a modified diagram of aquaculture chains, as presented by Henriksson et al. (2014), to identify and analyze the various factors within these chains that may influence GHG emissions, as shown in the diagram.


- In the Pre-Fish Farm stage, the hydro-powered (guppy) and diesel methods for electricity generation contribute to emissions, particularly the emissions from diesel combustion and potential methane emissions associated with hydroelectric reservoirs.
- During On-Fish Farm operations, the Recirculating Aquaculture System (REMS) and aerators, both reliant on electricity, impact GHG emissions. The choice of energy sources in this stage significantly influences the carbon footprint.
- In the Post-Fish Farm stage, activities such as processing, packaging, and distribution, which also heavily rely on electricity, further contribute to emissions.

The assessment, carried out by breaking down the aquaculture process into distinct stages, particularly highlights the electricity-intensive aspects of Pre-Fish Farm, On-Fish Farm, and Post-Fish Farm operations. By proposing a micro-hydroelectric grid as a sustainable energy solution, our partnership seeks to significantly reduce GHG emissions associated with traditional energy sources like diesel. This presents a tangible value add for aquaculture businesses, not only in terms of environmental sustainability but also by reducing operational costs through more efficient and cleaner energy alternatives.

The GHG assessment method involves evaluating the baseline emissions level and comparing it with the emissions level after the deployment of the proposed solution. The resulting disparity signifies the emission reduction achieved, while the remaining emissions level within the existing solution over a specific period will also be examined. The determination of reduced emissions will rely on the computation of emission reductions using the USAID Clean Energy Emission Reduction (CLEER) Hydroelectric Systems. Based on the report created by the Ministry of Energy and Mineral Resources, Republic of Indonesia, in 2024, Indonesia’s emission factor would be 757 grams of CO2 per kWh produced.

At 360energy, we're revolutionizing how the aquaculture industry accesses clean and reliable power. Our core technology isn't a one-size-fits-all solution, but a meticulously chosen renewable energy fleet designed to empower each SAH or farm unit with the most efficient and environmentally friendly option. This approach hinges on two renewable energy options: Micro-Hydro Power Plants (MHPs) and Solar PVs, complemented by a robust Remote Energy Monitoring System (REMS).

MHPs are the workhorses of our technology, harnessing the power of moving water to generate electricity. However, a customized approach is crucial. We leverage a variety of turbine types to perfectly match the unique water flow (volume) and head (elevation difference) characteristics of each aquaculture farm:

• Kaplan Turbines: Essentially, a Kaplan turbine excels in medium-flow, low-head scenarios like rivers feeding aquaculture ponds.

• Bulb Turbines: Bulb turbines are ideal for retrofitting into existing infrastructure like irrigation canals.

• Pelton Turbines: These powerhouse turbines convert the energy of fast-moving, low-volume water into electricity with exceptional efficiency. However, the extensive civil work required to harness high-head water sources can impact LCOE.
  

• Vortex Turbines: For high-flow, low-head scenarios, we champion the deployment of vortex turbines within irrigation canals – a common sight near aquaculture farms. This technology utilizes the existing water flow in the canal, requiring minimal infrastructure reinforcement. This translates to the lowest LCOE among all our MHP options, making it a game-changer for cost-conscious aquaculture operations, particularly those situated near existing irrigation canals.

Remote Energy Monitoring System: Energy Management IoT Solution

We recognize that maximizing the return on investment for any renewable energy system requires ongoing performance optimization. That's why we incorporate a robust Remote Energy Monitoring System (REMS) with all our deployments, encompassing both solar and micro-hydro installations. This real-time data-gathering system empowers both us and our clientele to make informed decisions for any renewable energy source on their farm.

The REMS consists of four key layers:

• Device Layer: This layer comprises hardware like sensors, edge devices, and gateways that collect and transmit data, regardless of the renewable energy source (solar panels, turbines, etc.). This will be in the form of Current Transformers (CT sensors) and a Voltage Root Mean Square (VRMS) sensor.

• Network Layer: This layer ensures seamless communication between the devices within the system. Data security is paramount. The collected data is securely transmitted using the AWS IoT Core service to the OpenEnergyMonitor platform, where it's stored in a dedicated energy database. This database serves as the foundation for the REMS front-end application, providing real-time insights into energy usage for both solar and hydro systems.

• Platform Layer: Here, powerful IoT platforms manage and analyze data. We leverage established solutions like AWS IoT and explore strong local options like Telkom IoT Platform, Antares, and Indosat IoT Connect.

• Application Layer: This layer translates data into actionable insights through user-friendly applications. This includes dashboards for data visualization of both solar energy production and MHP generation, as well as potential future features like push notifications for device troubleshooting.
  

Kemal Rifky - (President Director):  BS-MS Mechanical Engineering and International Studies student from Worcester Polytechnic Institute.

Russel Bradley - (Chief Technology Officer): Bradley is a PhD Candidate at the Massachusetts Institute of Technology.

Jeremiah Parningotan - (Chief Financial Officer): Majoring in Finance at the University of Toronto and work experience as a risk analyst directly translates to the current business operations at 360energy

Bramantyo Bhaskoro - (Chief Operating Officer): Majoring in Computer Science and Finance from Penn State

Putri Amelia - (Business Officer): Majoring in Communications at Boston University assists the business in fostering customer and partner relationships.

Since our inception in January 2023, we've been diligently developing our business. Our pilot projects, a 5 kW plant powering a farm and a 1 kW plant for an input store in Bandung and Sukabumi, demonstrate the viability of this clean energy source. To efficiently reach more farmers, we've partnered with eFishery, a leading aquaculture platform.  We also prioritize measuring our impact through BenihBaik, a social impact assessment organization.  Furthermore, collaboration with the National Research and Innovation Agency (BRIN) on turbine and basin optimization ensures our technology delivers the most efficient and sustainable power solution for Indonesian aquaculture.

In today's rapidly evolving global landscape, the essence of innovation is deeply intertwined with the principles of Diversity, Equity, and Inclusion (DEI). These concepts are not mere catchphrases; rather, they form the bedrock upon which creativity thrives, novel ideas emerge, and every individual is empowered to contribute meaningfully. Nevertheless, the realization of DEI objectives often faces challenges, with disparities persisting in various societal spheres. In Indonesia, despite its cultural richness, genuine inclusivity has not always progressed at the same pace. Barriers such as socioeconomic disparities, gender inequalities, and issues pertaining to disability can impede equal access to opportunities (World Bank, 2023). At 360energy, we are steadfast in our resolve to bridge these divides and pave the way for a future powered by collective talent and diversity.

At 360energy, we firmly acknowledge that talent knows no boundaries and a global perspective is indispensable for fostering authentic innovation. This recognition underscores our commitment to nurturing a diverse workforce, characterized by a tapestry of backgrounds and perspectives. Our team comprises individuals hailing from diverse corners of the world – from the United Kingdom and the United States to Indonesia and Singapore, among others. Each member brings forth their unique cultural vantage point and academic expertise, enriching our collaborative endeavors with a multitude of insights. This diversity not only drives innovation in our solutions but also allows us to approach our relationships with customers, primarily rural communities, from a myriad of perspectives. By drawing on the diverse experiences and cultural understanding within our team, we can tailor our approaches to better meet the unique needs and challenges faced by these communities, fostering deeper engagement and more impactful solutions. This interplay of ideas catalyzes our innovative solutions, enabling us to address challenges comprehensively and holistically.

Moreover, we are staunch proponents of equity, steadfastly ensuring that every individual within our organization is afforded an equitable opportunity to thrive. This commitment is exemplified through our advocacy for self-leadership within our teams, wherein meritocracy reigns supreme. Notably, our team's triumphant participation in Indonesia's Climate Innovation League Accelerator in late 2022 stands as a testament to our dedication to promoting inclusivity and recognizing excellence, with an all-women team securing the coveted People's Choice Award. Furthermore, we recognize that the concept of work-life balance varies for each individual. Hence, we embrace a flexible remote/hybrid work model, offering adaptable schedules and remote work options to dismantle barriers and attract a broader spectrum of talent (Harvard Business Review, 2023). To facilitate seamless collaboration across disparate time zones, we remain mindful of our team members' schedules, convening meetings at times conducive to all, thereby fostering an environment of inclusivity and mutual respect.

At 360energy, our commitment to Diversity, Equity, and Inclusion transcends rhetoric; it is ingrained in our ethos and propels us forward as we endeavor to create a more equitable and innovative future for all.

360energy specializes in providing micro-hydroelectric power plants tailored to meet the electricity demands of small and medium enterprises (SMEs). Our durable power plants are engineered for longevity, facilitating future upgrades with more efficient turbines to boost energy generation and reduce electricity expenses. Proudly crafted in Indonesia, our products benefit from local expertise, utilizing Indonesian technicians and experts as contractors, thereby minimizing operational and maintenance expenditures. Ultimately, the viability of integrating renewable energy hinges on ensuring that our solution's Levelized Cost of Electricity (LCOE) is lower than the prevailing LCOE of SME energy consumption.

At the heart of 360energy's solution lie Gravitational Water Vortex Power Plants (GUPPY). This technology harnesses the readily available water flow in irrigation canals to generate clean and renewable energy. This not only translates to significant cost savings for fish farms by reducing dependence on diesel but also contributes to a more sustainable future for the industry by minimizing environmental impact.

Many small-scale fish farms have irrigation canals that enter their fish ponds. These canals carry enough discharge for vortex hydropower generation. The water flow in irrigation canals in the aquaculture industry has great energy potential. This energy can be utilized as a vortex hydropower plant. Vortex hydropower plants are small-scale power plants with an output capacity of less than 100 kW. The electrical energy generated can be used as a power source for various activities in the aquaculture industry and improve the economy of the industry. This invention has been known and used to provide electricity to remote areas that have not yet been reached by the national electricity network.

Technological inventions related to vortex hydropower plants have also been disclosed, as in patent number 2020/SID/00770, entitled Portable Spiral Vortex Hydro, which discloses the utilization of river water flow through Micro Hydro Power Plant (PLTMH) with a crossflow water turbine type.

However, ensuring the smooth operation and optimal performance of these micro hydropower plants is crucial. This is where Remote Energy Monitoring Systems (REMS) come into play. Recognizing the importance of real-time data and insights, 360energy has collaborated with prestigious institutions like Worcester Polytechnic Institute (WPI) and Massachusetts Institute of Technology (MIT) to develop and implement a robust REMS (“IoT Renewable Energy Monitoring System for Remote Areas”). This state-of-the-art system allows for remote monitoring of the GUPPY plants, providing valuable real-time data on various crucial parameters like water flow, turbine performance, and energy generation. This enables proactive maintenance and troubleshooting, maximizing plant efficiency and minimizing downtime, ensuring the GUPPY plants operate at their full potential.

There is a synergy between the design of vortex hydropower plants and existing infrastructure/facilities in the aquaculture industry. Furthermore, this invention is intended to overcome the problems mentioned. Therefore, applying vortex hydropower plants in fish farms can effectively reduce the burden of electricity costs, increase production yields, and consequently increase their profit margins.

Our revenue stream would come from two different payment plans: pay-as-you-go (PAYGO) and monthly subscription fee. These payment plans are constructed to eradicate the need for high upfront capital costs that could prevent adopting MHP and/or Solar PV as their energy source. For PAYGO, the amount that our customers need to pay is based on the current ordinary electricity price and our power plant’s levelized cost of electricity (LCOE). With these metrics, we determine that the price that we would charge in the PAYGO payment plan is IDR 1,159 (USD 7.4 cents) per kWh. This PAYGO price is determined by finding the difference between the ordinary electricity price and the power plant’s LCOE and dividing the difference by two. By dividing the difference in two, our company ensures that the economic benefit of the lower power plant’s LCOE is proportionally distributed between our company and our customers. For the monthly subscription fee, we offer a fixed amount of monthly payment that would be calculated based on our power plant’s efficiency, multiplied by the power plant’s capacity and average usage hours of a power plant.

Fig.1 Renewable Energy Service Integration in Aquaculture Value-Chain

To ensure that our potential customers would be willing to become early adopters of a renewable energy power plant, we are working closely with established companies in the industry to deliver an end-to-end solution that would benefit the customers in both current and future periods. Currently, we are cooperating with agri-tech start-ups such as eFishery to widespread market adoption of renewable energy. This cooperation aims to ensure that 360energy reduces the cost of customer outreach. Subsequently, they will consume more energy than would be provided by 360energy, thus increasing our profit. A win-win solution for all parties involved will pave the way for 360energy to achieve exponential growth without suffering losses due to cash burning to entice users.

Fig.2 360energy Business Model

Regarding capital structure, 360energy is currently using grants, awards, and founders’ direct capital injection to fund its operation. In the future, the company would highly prefer an equity investment instead of a debt one since it does not have the necessary assets to be put as collateral. Even though the cost of debt might be cheaper than the cost of equity that our company must incur, we believe that the interest payment would be a burden for our cash flow because the first year’s cash flow would be limited since the number of customers would still be limited. 360energy as a company firmly believes that we would be highly profitable in the long run due to the inevitability of renewable energy adoption, and the benefits that cheap energy brings to society. These factors are the basis of our principle of being disciplined in maintaining current cash flows and being patient in gaining profits. The current profit level ensures that 360energy will not lose money but also ensures that potential customers would have a lower barrier to adopting the renewable energy source we are constructing.