By Olga Aristeidou
With temperatures hovering around zero, Yerevan has been dressed in winter attire. Sunshine is not the first thing that comes to mind in the Armenian capital in winter, but it is one of the most modern and effective ways of keeping our homes warm at the coldest time of the year.
Solar energy is one of the most efficient and least expensive types of energy. One of the many advantages of solar panels is that they continue to produce energy even in bad weather. On cold and clear days, snow on the ground can act as a mirror, reflecting additional sunlight onto solar panels. And after a heavy snowfall, a small open spot on the surface of a panel will absorb the sun's rays and gradually heat it up, leading to the faster thawing of surface snow.
LA Solar is one of the largest solar panel manufacturers in Armenia and the wider Eastern Europe and the Caucasus region, exporting to over 40 countries, with the Unites States of America being one of its top markets.
The company focuses on the high-tech production of solar panels, using one of the most modern technologies available, from Swiss company Meyer Burger. It currently has an annual production capacity of 350 MW. Its panels absorb several times more sunlight than panels produced by other technologies.
“The demand for more powerful and more productive solar panels is growing every year,” explains Maksim Targashov, Head of production at LA Solar. “Many people are switching to solar energy in Armenia and elsewhere. This is supported by the local weather conditions, contracts with electricity networks and other factors.”
When LA Solar was formulating its expansion plans, it contacted the European Bank for Reconstruction and Development (EBRD) and its partner financial institution, HSBC, for support. The company acquired working capital by procuring 12,000 450 W photovoltaic (PV) module assembly kits, with financing from HSBC under the EBRD’s Green Economy Financing Facility (GEFF). The GEFF programme in Armenia is supported by the Climate Investment Funds (CIF) and the Green Climate Fund (GCF).
This should enable the company to produce PV panels with a total capacity of 5.4 MW. Statistics and similar investments financed by the GEFF in Armenia suggest that the average relative energy savings achieved by installing PV stations for own use is approximately 63 per cent. Based on this data, the GEFF investment in LA Solar's PV panels will result in the avoidance of 2,543 tonnes of CO2 emissions annually.
Furthermore, end-users will benefit from significant electricity savings amounting to 7,500 MWh per year, translating into more than US$ 900,000 in annual savings.
Embracing solar energy’s potential and innovative solutions
According to the International Energy Agency (IEA), utility-scale solar PV and onshore wind are the cheapest options for new electricity generation in a significant majority of countries worldwide. Global solar PV capacity is set to almost triple over the 2022-27 period, surpassing coal and becoming the largest source of power capacity in the world.
The IEA also expects to see an acceleration in the installation of solar panels on residential and commercial rooftops, helping consumers to reduce their energy bills.
This is also LA Solar’s vision. One of its more recent innovative products is solar roof-tile modules.
“The idea is that instead of placing a solar panel on the roof of your house, you turn the roof into a panel,” says Maksim Targashov. “These modules can fully replace a roof. This solution offers reliable energy resilience, while enhancing the house’s visual appeal. It also has proven reliability, competitive low light performance, and resilience to dust, wind and snow pressure. We also produce triangular panels to fill gaps on roofs and maximise solar energy utilisation from unused roof spaces.”
While China remains the dominant player in the solar PV sector, its share of global manufacturing capacity could decrease from 90 per cent today to 75 per cent by 2027, according to the IEA. Companies, such as LA Solar, are one of the reasons.
“We are the biggest producer in the region,” says Maksim Targashov. “We produce a lot for the United States of America, and we will continue to expand. Our expansion plans should lead to a significant increase in energy output, thereby contributing to a reduction in CO2 emissions and promoting environmental sustainability. Moreover, we expect to generate new job opportunities and to stimulate economic growth in the region.”
The GEFF programme operates through a network of more than 170 local financial institutions across 28 countries, supported by more than €5 billion of EBRD finance. More than 218,000 investments have led to a reduction of over 9.5 million tonnes of CO2 emissions per year. In Armenia, as at the end of November 2023, more than 400 energy efficiency and renewable energy projects and businesses had been financed.