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 the 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 of energy savings, financial-technical parameters and risks.
The project included installation of energy saving screens, energy efficient boilers and automatic control system for the whole operation cycle.
The $2.3 million investment generates $404,000 cost savings for LLC Alternative Energy each year. The cost savings arise from reduced 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's income for the years to come.
Last but not least, this project allows the company to keep the food production at lower costs, which is not only supporting the company’s competitiveness, but increasing the affordability of the greenhouse vegetables for the local population.