Croatia’s TSO HOPS to get EUR 100 million to upgrade grid

Croatia’s transmission system operator HOPS will receive a EUR 99.5 million grant to upgrade its power transmission network. The funds are secured from the National Recovery and Resilience Plan for the period 2021-2026.

The transmission network is seen as one of the crucial obstacles to the development of Croatia’s energy sector, including the integration of new wind farms and photovoltaic plants.

The Ministry of Economy has announced a public call for grants under a program aimed at strengthening the transmission and distribution capacities of the electricity system.

The maximum amount of grant that can be awarded is EUR 99.5 million, while the total budget is estimated at EUR 124.4 million. The country’s TSO, Hrvatski Operator Prijenosnog Sustava (HOPS), is the sole transmission system operator in Croatia and therefore the only eligible applicant for the grants.

Investments in the transmission network should also reduce grid losses

The project will optimize, digitize, and revitalize the power infrastructure through an additional increase in the transmission network capacity, according to the ministry.

The reconstruction of the existing facilities will ensure an increase in the reliability and safety of the power system, as well as increase the quality of the supply. The plan is to replace the equipment and upgrade and modernize the transmission network.

The ministry expects that new equipment, with significantly better performance, will reduce transmission losses and the negative impact on the environment.

The transmission grid is the main bottleneck for connecting new solar power plants and wind farms

Marija Šćulac, director of the industry and sustainable development sector at the Croatian Chamber of Economy (HGK), recently said that the biggest challenges for renewables development are related to the power network.

More than 50% of the transmission system infrastructure, she noted, has exceeded its operational lifespan, while the National Energy and Climate Plan (NECP) envisages the integration of an additional 4,800 MW of renewables by 2033.

This requires urgent investments, but the EUR 2.3 billion envisaged in the NECP is far from secured, Šćulac added.

In the updated NECP, Croatia has increased the share of renewable energy sources in energy consumption from 36.4% to 42.5%.