Armen Gharibyan (MEIESM ’11): Leading Armenia’s Solar Charge

7 min read

Armen Gharibyan received his Master of Engineering in Industrial Engineering & Systems Management (MEIESM) degree from the American University of Armenia (AUA) Zaven & Sonia Akian College of Science & Engineering (CSE). His passion for renewable energy and organic agriculture led him to found the Optimum Group — a game-changer in these industries. What transpired under Armen’s leadership was the creation of Optimum Energy, a major solar plant developer, and Aregi, the largest healthy snack producer in Armenia. The knowledge and skills Armen has acquired in the MEIESM program have equipped him with the necessary expertise, as well as soft skills, that have enabled the vigorous development of his company. His mission is to protect the environment while introducing Armenian delights to the world.

What is your fondest memory from your time at AUA?

Aside from the fun times with friends, I think the most memorable events were our site visits to factories and power stations as part of the courses that covered renewable energy. Those visits were generally exploratory, with the primary objective of observing and learning about new kinds of productions existing in the industry: sustainable and energy-saving technologies that contribute to the well-being of humanity. For instance, the visits to the wind-power plant at Pushkin Pass, battery production factories, and small solar plants (at that time, there were no big solar plants) were truly impressive and memorable for me. Later, they numbered among the factors that inspired me to start my own renewable energy company. 

Who was your favorite professor, and why?

The first time I heard about and became passionate about renewable energy was through one of the professors at AUA, Dr. Kennel Touryan. He was also the chief technology analyst at the National Renewable Energy Laboratory in the United States (U.S.). He was and still is my mentor. I got to know him before I enrolled at AUA, which I later did on his recommendation, for which I am really thankful. 

Dr. Artak Hambaryan is another professor who taught me a great deal about renewable energy and decision-making algorithms — my two favorite subjects. I think that when studying in a graduate degree program, it is important to learn something tangible and practical besides theoretical subjects like mathematics and physics. 

Tell us about Optimum Energy. How did it start? What was the rationale behind bringing renewable energy to Armenia?

I came to AUA from the National Polytechnic University of Armenia, where I was studying solar energy and telecommunication and had already grown an interest in this field. At that time, the solar energy industry was not yet developed, and everyone was telling me that it was unrealistic to expect that solar energy would someday become a major contributor to the energy sector of Armenia. Nevertheless, I did not stop pursuing my vision, believing that, if not in a few, then in ten years, it would be realized. 

Even my thesis and site visits while at AUA pertained to solar energy. My thesis was a business plan for developing a solar water heating market in Armenia. At that time, there were probably 5 or 10 solar heaters installed in the country. I was a student, and it was very hard to get funding to buy one. I was able to get a very small and undeveloped one compared to today’s heaters, but working on it made me realize that my plans could succeed. Then, I created a business plan for this as my thesis. So, I believed, pushed, and spent all my time and energy on renewable energy.

The idea for Optimum Energy came from that period in my life, and now, we are the largest solar developer in Armenia. We own solar plants, and we also construct solar plants for others. When I graduated from AUA, the contribution of solar energy to the Armenian energy sector was 0%. Now, the solar energy share of energy generation in Armenia is 10%, of which we contribute about 3%; 10% of solar energy share is a huge number for any country, and this is only expected to increase in the near future. 

What were the biggest challenges you faced when you were just starting? How did AUA and MEIESM help you overcome them?

Culture is always the biggest challenge, especially when what you are proposing will transform it. What I was doing was new. It was very expensive, and no one believed in it. It was not only about having a good business plan but also about investment, financial risk, and changing mindsets. In my case, it was not possible to launch a good startup or lead a growing business with engineering know-how only. I needed financial management skills, and the only place where I learned about finance was at AUA. I did a minor in finance, and to this day, what I learned is enough for me to conduct financial analyses and make the right decisions accordingly. Industrial engineering know-how was also very important to me. When we established Aregi, there was a need to optimize our processes. This is what I was taught at AUA every day in our industrial engineering courses — how to optimize and manage processes.

AUA helped me to integrate my engineering knowledge with aptitudes in finance, networking, and soft skills and apply them in my work. Now, I know how to deal with stakeholders from different spheres. 

In addition to the knowledge and skills I gained from the MEIESM courses, what helped the most in my career were the networking, the connections with industries and industry leaders, and the self-discipline I developed at AUA. Also, I greatly appreciated the established culture there, which treats all students equally, without any favoritism. 

Can you recall the moment the idea for Aregi came to you?

Yes. It was during the Covid-19 lockdown when I had the exceptional chance to pause and rest for a few days. I have always liked agriculture and nature — those are my passions. When surrounded by nature, one feels like a real human being. In that context, several factors motivated me to start Aregi. The first is organic agriculture, which I like because it is sustainable and contributes to the sustainable development of both the planet as well as humanity. The second factor was to create an Armenian brand that would represent Armenia worldwide through organic foods. We started Aregi with that vision — to create a brand and a company that honorably represents Armenia globally through snacks and other non-perishable foods that are uniquely tasty and healthy.

Do you see potential in Armenian dried fruit production in the global market? What are your plans with Aregi?

The healthy snacks market is growing yearly by about 8% worldwide as more and more people are opting for healthy foods. These tasty Armenian products motivated us to enter and invest in this market. Dried fruits are only 20% of our business; our products are Armenian delights and snacks. We produce about 300 tons of foods per year, equal to 4,000-4,500 tons of fresh fruits and vegetables and around 30 million packaged foods. 70-80% of our products are exported to the U.S., Europe, Russia, Kazakhstan, and even Japan. We use 150 different types of fruits and vegetables, 40 of which are inaugural products. 

Everything we produce contains no sugar or any artificial additives. This is how Aregi stands out from other companies. Additionally, the environment created at Aregi helps people to embrace natural food products. Currently, it’s the largest producer in that domain in Armenia, and we hope that in a few years, it will gain fame worldwide. Every year, we grow our production and sales by three times. 

Our larger vision and goal with Aregi and overall Optimum Group is to prevent the destruction of the planet, to the extent possible, through different approaches — growing and processing foods, solar and wind energy, and energy efficiency.

How has the Optimum Group impacted the life of the local community? 

Optimum Group companies employ the community-based business model that consistently opts for hiring employees from the local community. Depending on the season, the number of employees hired from the Aragatsotn community may vary between 30 and 100. The women mostly work in snack production, while the men work in construction and solar plants. 80% of Aregi employees are women from the local villages, including the technologists on our staff. In the beginning, no one believed that housewives with no higher education could handle such work. But I did and, therefore, involved them in production, and now they are among the most demanded specialists in Armenia. They give us more than what we offer them. 

We also finance a sports training program for the local kids ages five and up. Sports in this and nearby communities are not well developed, and the only option for local kids to get appropriate training is to go to Yerevan. Those who cannot do that miss out on the chance to train to become champions in various sports. So now, we are doing our best to involve the kids in our local work by bringing various sports trainers to our Aregi Health Club to work with the children. About 10-15 kids from the local village come here thrice weekly for regular training. And when they are here for sports training, they also learn about the different areas of sustainability in which we are engaged. This is our way of giving back to local communities and contributing to their development. 

What’s your key to success?

I would list three things — belief in God, hard work, and responsibility.

What advice would you give to young entrepreneurs in Armenia?

First and foremost, don’t be afraid to think big. Do something different: Find something that is new or has never been done before, something that only you can do. Even when you face intense competition in the field, you should stick with your unique approach to differentiate yourself from other players. Take smart risks. I believe that founders of startups should establish their processes themselves and also take responsibility for failures, if any. 

You received the James Gagan Scholarship. How did it impact your career and life?

I wouldn’t have reached this point in my career without the knowledge I gained at AUA. Further, had I not had the scholarship from the University, I wouldn’t have been able to study there due to financial reasons. The scholarship I was awarded covered 90% of the tuition and gave me the opportunity to study at AUA and gain the knowledge and skills that have been instrumental in my career. The impact of the James Gagan Scholarship is invaluable.

Moreover, being grateful to someone or an institution that paved the way for my education motivates me to give back to my community. People express their gratitude in different ways. My work is not only aimed at making a profit; it is also about doing something that benefits many in the country. Increasing renewable energy and decreasing consumption by promoting energy efficiency contributes to Armenia’s energy security. It also reduces carbon emission levels, preventing global warming as much as possible and benefiting mankind.

How important is it to give back to your alma mater?

After I graduated from AUA, I worked as a consultant at the University. I’ve done a lot of work to improve the management of the facilities and decrease energy consumption, and I’ve also consulted on educational matters. We are currently looking into opportunities with the CSE to host interns at our plants and various facilities that employ the latest AI technologies and solar models. In the future, I would like to contribute more to education in various other ways, as much as possible.