Renewable energy leads to the improved environmental impact of asphalt production and road construction

Ararat-Chanshin LLC
Ararat region, Armenia
Installation of photovoltaic panels
Investment Size
US$ 697,000
Financial results
Payback in 6 years
Electricity savings
1,604 MWh per year
CO2 savings
701 tonnes per year
Increased cost-efficiency

The roads of tomorrow are being built with green technologies today

Established in 1999, Ararat-Chanshin LLC is a construction company that specialises in road construction as well as the production of cement-concrete and basalt powder.

In early 2020, the company made the strategic decision to invest in solar energy with the aim of covering its major need for electricity. To this end, Ararat-Chanshin LLC applied for a green loan and took advantage of a technical assessment carried out by the GEFF team at no charge.

The two ground-based solar PV systems, which were installed at the production facilities in the Kotayk and Ararat regions and which each has an installed capacity of 615 kW, will lead to annual energy savings of 1,604 MWh. The energy produced by the solar PV systems will cover 93% of the company’s electricity needs. The investment, which owing to the savings it produces has a payback period of 6 years, will also contribute to a reduction in CO2 totalling 701 tonnes per year and will continue to generate higher profits in the years to come.

“This investment in renewable energy infrastructure with a total capacity of 1,230 kW changes the way we do business – it is now possible to participate in public tenders knowing that the high-quality roads we build will not place our business results and reputation at risk, as the cost of our services is now more under our control,” says the Director of company, Mr Stepan Vardanyan.

This project is a good example of how a single investment can help businesses thrive in the long-term while at the same time improving their impact on the environment.

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