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Large and energy efficient greenhouse in Armenia

Investor
LLC Alternative Energy, a vegetable producer
Location
Yerevan region, Armenia
Investment
Energy saving screens, new gas boiler and an automation system
Investment Size
$2.3 million
Financial results
Payback period of 6 years; cost savings of $404,000 per year
Energy savings
17,389 MWh per year (60%)
CO2 savings
4,500 tonnes CO2 per year
Impact
Maintain low cost food production, increased competitiveness
Donor
EU, Austria

Large investments bring large savings

High energy consumption was a burden for LLC Alternative Energy, an Armenian producer of vegetables located in the village Dzoraghbyur, 10 kilometres from the capital. With a total area of greenhouses of four and a half 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 keep up the high temperature level inside the glass shelter. To improve the cost-income-situation, LLC Alternative Energy decided to invest in a new state-of-the-art greenhouse and addressed Energocredit for a loan and advisory services on project implementation.

The Energocredit team performed the analysis of various aspects, primarily the potential for energy savings, financial-technical parameters and risks.

The project included installation of energy saving screens, energy efficient boilers and an automatic control system for the whole operation cycle.

The $2.3 million investment generates $404,000 of cost savings for LLC Alternative Energy each year. The cost savings arise from reducing energy consumption by 60 per cent. The investment will repay itself out of energy savings in six years, turning the future cash-flows into company income for the years to come.

Last but not least, this project allows the company to keep the food production low cost, which is not only supporting the company’s competitiveness, but increasing the affordability of the greenhouse vegetables for the local population.

This project was supported by the European Union and Austria.

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