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Energy efficient greenhouse saves power and money

Investor
Alternative Energy LLC
Location
Dzoraghbyur, Armenia
Investment
Energy saving screens, gas boiler, automation system
Investment Size
US$ 2.3 million
Financial results
Payback in 6 years
Energy savings
17,389 MWh/year (-60%)
CO2 savings
4,500 tonnes/year
Impact
Maintain low cost food production, increased competitiveness
Donor
EU, Austria

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.

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