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Food processor with new approach to energy cost management

Investor
Spayka LLC
Location
Yerevan, Armenia
Investment
Installation of photovoltaic panels
Investment Size
US$ 229,260
Financial results
Payback in 7 years
Energy savings
427 MWh/year (-29%)
CO2 savings
187 tonnes per year
Impact
Reducing of energy consumption and energy costs, increasing competitiveness
Donor
GCF, CIF

Reduction of energy consumption makes local food producer even more competitive

Leased equipment financed by GEFF in Armenia helped the leading Armenian freight forwarding company Spayka to apply energy efficiency measures and effective cost management to their brand new blue cheese production factory.

The leading Armenian freight forwarding company Spayka began exporting and trading fresh fruits and vegetables to Russia, CIS countries and Europe in 2007. At present, Spayka is the biggest exporter of Armenian agrarian production and plays a significant strategic role in this sector.

A study of the Russian and CIS countries’ markets and the respective demand led the company to open a brand new cheese production factory with cutting-edge production lines. Taking into account the significant workload and therefore significant energy consumption, the company’s strategy was to focus on the most effective energy efficiency and cost reduction measures.

Based on the applicant’s request and investment plan, the GEFF consulting team conducted a professional assessment of the technical and financial parameters of the planned investment project, and analysed the investment cost versus the potential energy-saving benefits. The assessment determined the eligibility of the investment and the expected significant reduction in energy consumption.

The investment of US$ 229,260 will allow the company to install 335 kW solar photovoltaic panels and reduce energy consumption by 427 MWh per year. This will result in annual cost savings of US$ 30,600. This means the investment will be repaid in seven years and will allow the company to generate an additional profit for the following period. The project is still in progress and the solar photovoltaic panels are currently being installed.

The use of solar energy will lead to a reduction of CO2 emissions by 29% and will prevent the release of 187 tonnes of CO2 per year. This will help to make the business more cost efficient and at the same time mitigate the negative effect of human activity on the climate.

The company plans to carry out additional projects that will contribute to the expansion of its business activities. In this context, maintaining its competitive position through effective cost management will be of great importance for the company in the future.

This project was supported by the Green Climate Fund (GCF) and Climate Investment Funds (CIF).

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