Croatia’s HEP to Invest Over $100 Mn into Solar Power Plants by 2023

Croatia’s national power company, HEP, which has been engaged in electricity production, transmission and distribution for more than one century, has announced that it will invest close to $114 million into solar power plants by 2023.

Solar power plants Kaštelir, Cres, Vis and Vrlika Jug, of the total capacity of 11.6 MW and the value of $12 million are the first four solar power plants in a big investment cycle.

The Purchase Agreement for the solar power plant Sabadin (future SPP Kaštelir) was signed at the event by Marino Roce, the director of Plomin Holding, a member of HEP Group, and on behalf of the co-owner of the company.

The construction of solar power plant Vis will start this month. This project was taken over by HEP in December 2018 from the company Končar OIE, and HEP Proizvodnja will construct the solar power plant Vrlika Jug in the second half of 2019. Integrated solar power plants’ projects on the HEP- owned buildings were also presented. Their total capacity is 2.1 MW and their value amounts to $1.9 million.  

“Croatian potential in renewable energy sources, especially solar power, is significant and I believe that through its investments by 2030 and in synergy with the Croatian industry, Hrvatska elektroprivreda will be the crucial stakeholder in bringing the new national strategy of energy development to life”, said Tomislav Ćorić, PhD., the Minister of environment.  

The power plants Vrlika Jug, Cres and Vis will generate electricity without having a Power Purchase Agreement with the Croatian Energy Market Operator regarding power purchase at an incentive price.

Solar power plants on the islands of Cres and Vis will contribute to the strengthening of infrastructure, for the purpose of tourism development, since the electricity generation will be the highest when needed most i.e. in the periods of increased consumption during the tourist season. All four power plant projects were prepared through the cooperation of HEP and its partners – local and regional government units and companies.