Wind farm Korlat (photo: HEP)
State-owned Hrvatska Elektroprivreda remained below the threshold in the bidding against private investors for subsidies at the latest auctions organized by the Croatian Energy Market Operator (HROTE).
A few days ago, HROTE awarded premiums to solar and hydropower projects with a total capacity of 420 MW. The total quota was 607 MW.
Power utility Hrvatska Elektroprivreda (HEP) is preparing to install its largest photovoltaic plant, SE Korlat, of 99 MW. The works are scheduled to start this year, with a completion date in 2026. However, government-controlled HEP failed to get incentives at the HROTE auctions, Forbes reported.
Namely, private developers submitted better offers or, more precisely, they offered a lower sale price for their electricity.
HEP: We have offered a price within HEP Group’s production price range
HROTE declared HEP’s offer valid but didn’t include it in the winners list. The utility explained that it optimizes its electricity production from different sources taking into account market prices of electricity.
HEP said that, at HROTE’s auction, its subsidiary Energy Park Korlat submitted a price for electricity from the Korlat photovoltaic plant that was competitive and within the group’s production price range.
The company noted that its bid was higher than of other competitors.
HEP received premiums for MHE at the auctions
However, HEP did win premiums for another project, small hydropower plant MHE Peruća, which it plans to have 3 MW in capacity.
Of note, the site for the Korlat PV facility is next to HEP’s first wind farm, with the same name. It was put into operation in 2021. Together, the two power plants would constitute the first hybrid power plant using renewable sources in Croatia.
SE Korlat will be financed with loans from the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). The Government of Croatia has provided guarantees for the loans.
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