The European Bank for Reconstruction and Development (EBRD) has committed up to €31.6 million in financial support to Croatia’s state-owned power utility, HEP, for the construction and operation of the Korlat solar power plant.
With an installed capacity of up to 99 MW, this project will be a major contributor to Croatia’s renewable energy goals.
As outlined by the EBRD, the Korlat solar facility will play a significant role in HEP’s broader decarbonization strategy. The plant is expected to reduce carbon dioxide emissions by approximately 28,899 tons per year. Once completed, it will become the largest solar power project in HEP's renewable energy portfolio, showcasing the growing importance of solar energy in replacing fossil fuels in Croatia.
HEP is planning to commission the Korlat solar plant by 2026, utilizing state-guaranteed loans for its financing. However, the company has faced challenges, including an unsuccessful bid in a recent tender by the Croatian Energy Market Operator. Despite the project’s estimated value of €62 million, HEP’s bid was rejected due to a higher proposed electricity price compared to competitors who offered lower production costs. Nevertheless, HEP defended its bid, maintaining that its pricing was competitive within the group.
This development emphasizes Croatia’s ongoing commitment to renewable energy and clean power initiatives.
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