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Large investments bring large savings
High energy consumption was a burden for Alternative Energy LLC, an Armenian vegetable producer located in the village Dzoraghbyur, 10 km from the capital city. With a total greenhouse area of 4.5 hectares, the company produces 4,500 tonnes of tomatoes and cucumbers per year, mainly for the internal market.
Greenhouses require a lot of energy to maintain the high internal temperature level. To improve the cost-income ratio, the company decided to invest in a state-of-the-art greenhouse and approached GEFF for a loan and advisory services on project implementation.
The GEFF project team performed the analysis of various aspects, primarily the energy savings potential, and defined the financial-technical parameters.
The project included installation of energy-saving shade screens, boilers, an automated control system for the whole operation cycle, as well as advisory services on project implementation.
The US$ 2.3m investment saves US$ 404,000 a year in energy costs for Alternative Energy LLC, which is achieved by reducing energy consumption by almost 60%. The investment will repay itself out of energy savings in six years, turning future cash flows into company income for many years to come.
Last but not least, this project allowed the company to keep producing food at low cost, which is not only good for the company’s competitiveness, it also makes the greenhouse vegetables more affordable for the local population.
This project was supported by the European Union and the Austrian Federal Ministry of Finance.