Green certificates for two HEP hydropower plants

Croatian energy regulatory body (HERA), assigned green certificate to two hydropower plants of Croatian state-owned power utility (HEP) earlier this month. The green certificates provide them with a status of privileged producer of electricity from renewable energy sources.

However, these two hydropower plants, HPP Orlova and HPP Dubrava, even with green certificate, are not be entitled to receive incentives , since the Law on renewables abolished that right for this type of facilities. Still, the “green” electricity can be sold at higher prices, according to energetika-net portal.

Both plants have planned annual generation of 195 GWh. Installed capacity of HPP Orlovac is 240 MW and of HPP Dubrava 80 MW. Although green certificates do not provide incentives, HEP wants to use privileged producer status to certify electricity produced by those plants, i.e. to get guarantee of origin in accordance with international rules, respectively.

Guarantee of origin enables keeping the record of green energy expenditure. Last year this option was used by Gen-I, Crodux plin and HEP supply. Producers receiving incentives cannot participate in the guarantee of origin system.

So far, only HPP Lešće and HPP Varaždin were enlisted in Croatian register. HPP Lešće sold its electricity to Netherlands and Norway, while HPP Varaždin supplied Croatian buyers.

Green certificates important in electricity trade

In the future, green certificates may become even more important in electricity trade, both in Croatia and abroad. National Action Public Procurement Plan from 2015., prescribes that the supplier must prove that half of the electricity sold is produced from renewables, while in 2018-2020 period all 100% must be produced from renewables.

Last year, HEP added to its portfolio a highly-efficient combined heat and power (CHP) L Block in TE-TO Zagreb, with the capacity of 100 MW for power, 80 MW for thermal energy. It will add to HEP’s revenue HRK 250 million (EUR 33,750,000) annually since L block is entitled to incentives as a highly-efficient cogeneration.

HEP Production also signed the contract with Croatia energy market operator (HROTE) for the purchase of electricity from two smaller plants: biological minimum aggregate – ABM HPP Lešće, with around 1 MW (1.090 kW) of installed power, small hydropower plant biological minimum agregate HPP Varaždin, (635 kW). The electricity produced in small hydropower plant Prančevići (SHPP Prančevići) has been also entitled to incentives.

The system of stimulant prices also includes nine photovoltaic power plants set on the roofs of HEP’s business building, with the capacity of 207 kW, as well as to cogeneration biomass plants that are currently built in Osijek and Sisak. They will have 3 MW in power and 10 MW in thermal capacity each, and they should be operational by mid 2017.