An investment with a one-year payback paves the road for future investments
Since 2013, Energodzor LLC has been operating a small hydropower plant (SHPP) on the Vaghut River in the Syunik province under a license issued by the Public Services Regulatory Commission.
From 2015 to 2018, Energodzor’s electricity production was approximately half of the designed level. Because of this, the company decided to invest in a modern turbine generator with 75% higher efficiency. Thus, without making any changes to the hydro-technical part including the water flow, the electricity generation increases.
The GEFF team performed the project analysis, which included assessing the potential energy savings, the financial and technical parameters, and the risks. The US$ 25,276 investment enables savings of US$ 27,142 annually, which means that the investment will be repaid within one year. In light of the increasing electricity production, the investment will reduce 242 tonnes of CO2 emissions per year on the consumer side, thereby contributing to the mitigation of climate change.
“This investment will not only double our efficiency and profitability, but will encourage us to start thinking of other investments in energy efficiency that could contribute to savings and further develop our business,” asserts company director Vardan Bakhshyan.
This project was supported by the Green Climate Fund (GCF) and Climate Investment Funds (CIF).
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