HEP announces a billion kuna yearly investments in renewable energy sources

HEP announces a billion kuna yearly investments in renewable energy sources

The Prime Minister of the Government of the Republic of Croatia Andrej Plenković put Unit B of Ozalj 1 Hydropower Plant into trial operation, which marked the 110th anniversary of the launch of this oldest operational hydropower plant in continental Croatia.

Representatives of Hrvatska elektroprivreda presented a billion kuna yearly hydro and RES investment plans to the Prime Minister and other Government members. HEP is planning to increase a RES share from 35 to 50 percent until 2030. Said objective shall be achieved through revitalization i.e. the increase of the capacity and production of the existing hydropower plants, the construction of the new hydropower plants and investments in other renewable energy sources. HEP is planning to invest a total of about 3.6 billion kuna in hydropower plant revitalization, of which about 1.4 billion kuna has already been invested, while the remaining 2.2. billion kuna is planned until 2028 when the revitalization shall be completed. This investment cycle will result in additional 160 megawatts of new hydro capacity which corresponds to the capacity of one large hydropower plant, sixth by size among the existing HEP's hydro portfolio.

In addition, HEP has launched investments in other renewable sources this year as well. The tender for the construction of Cres Solar Power Plant is underway. The acquisition of Vis Solar Power Plant development project-related negotiations are coming to a close as well as of another solar plant and two windfarms. HEP is going to invest 600 million kuna in solar plants and windfarms as early as 2019.

'Investments in electricity production in Croatia represent a direct contribution to the increase of the national GDP. I would like to congratulate HEP for its planned investments in hydropower plant revitalization of 2.2. billion kuna in the next 10 years. Especially important is the HRK 600 m investment in other renewable energy sources planned for 2019, including solar and wind power plants, which is in line with the national goals of CO2 reduction', said Andrej Plenković, the Prime Minister of the Croatian Government.

As hydropower plants represent a reliable and competitive source of green energy, HEP has been paying close attention to their modernization and the extension of their life. The Zakučac, Dubrovnik and Fužine revitalization projects will be completed next year, works on Ozalj and Gojak HPPs will continue, and the revitalization of Varaždin and Senj HPPs will start.

'Along with the revitalization of the existing hydropower plants as the first pillar, the second pillar of HEP's renewable scenario includes the construction of new hydropower plants as well as the construction of other renewable sources as the third. A historic step forward was madein this sense this year by acquiring Cres Solar Power Plant, the project that will be carried out with no sovereign incentives. I would like to announce the next year's launch of the Vis Solar Power Plant project as well as of several solar and wind power plants projects, which delivery will mark a new development phase for HEP', said Frane Barbarić, the President of the Management Board of Hrvatska elektroprivreda d.d.

Out of 26 HEP's hydropower plants, three are located in Karlovac County: Gojak, Lešće and Ozalj (Ozalj 1 and 2 Hydropower Plants). Ozalj 1Hydropower Plant, or as it was then called 'Munjara' was put into operation in 1908 to meet the lighting needs of the city of Karlovac. Today, it is the oldest hydropower plant in Continental Croatia which is still producing electricity in its original facility, protected as a cultural good of the Republic of Croatia.

The first stage of the Ozalj 1 HPP revitalization, which included the replacement of the secondary equipment and generator A, was completed in early 2018, while the third stage, including the replacement of Unit C, will be completed in 2019. The total value of all three Ozalj 1 HPP revitalization stages is 60 million kuna. Once finished, its total capacity will increase from 3.3. MW to 4 MW, facilitating the annual production increase by 1 million kWh. The Contractor is the Consortium comprising Končar Group companies, with Končar KET as a lead partner.

In addition to the above revitalization project, HEP has also been making other investments in Karlovac County. The HRK 96 m revitalization of Gojak Hydropower Plant is underway, the facility which must also be mentioned for its office building in Ogulin on the roof of which a photovoltaic power plant was installed this June as one of four solar plants which have been installed this year on the roofs of buildings owned by HEP. Continuous investments have also been made by HEP DSO in the distribution network across Karlovac County exceeding 40 million kuna per year.