ZAGREB, December 20, 2019 - A ceremony was held in Zagreb on Thursday to mark the start of construction work on a combined co-generation unit at the Zagreb KKE EL-TO combined power and heating plant, an investment worth 900 million kuna (approx. 121 million kuna).

The new, high-efficiency block, with a capacity of 150 megawatts of electricity and 114 megawatts of heating energy is the single biggest investment of the state-owned HEP power company in new production facilities in the last 10 years, it was said at the ceremony, which was attended, among others, by Prime Minister Andrej Plenković and HEP Management Board chair Frane Barbarić.

The expected average annual output of the new block is 675 gigawatt hours (GWh) of electricity, 450 GWh of heating energy for Zagreb's central heating system, and 160 GWh of industrial steam. The electricity produced by this unit will meet the consumption demand of close to 200,000 households.

Thanks to its most modern Siemens technology of combined co-generation, the new block will save up to 25% of primary energy from natural gas. Also, once its old and inefficient units are the Zagreb KKE EL-TO combined power and heating plant will emit considerably less carbon dioxide and other pollutants.

The project is to be financed with loans granted by the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB), with guarantees having been provided by the European Fund for Strategic Investments, the main platform of the European Commission's Investment Plan for Europe.

The contract on construction work and a contract on long-term maintenance were signed in July 2018 with the Italian company FAT S.p.A.

PM Plenković said that this was yet one more major investment in the national energy system, expressing satisfaction that, in line with the national energy strategy, HEP's activities were directed at renewable energy sources.

Barbarić said that the investment would bring multiple benefits, notably for 80,000 residents of the western part of Zagreb, who in the long run would obtain a safer source of heat.

He said that this was HEP's biggest but not only investment in power plants, citing in that context the Kastelir solar power plant in Istria, which has been put into operation, construction work on a power plant on Vis island that is nearing completion, as well as work on the Korlat wind power plant, which is also nearing completion. Three solar power plants are to be built on the island of Cres and preparations are under way for the construction of a solar power plant near Vrlika, said Barbarić.

All projects, including the one in Zagreb, are part of HEP's scenario of development of renewable energy sources, as part of which power plants with the capacity of 1,500 megawatts will be built until 2030, he said.

Asked by reporters about problems with heat supply in Novi Zagreb, Barbarić said that currently work was underway on absorbing around 64 million euro from EU funds, on which contracts should be signed in a month or two, to replace 62 kilometres of district heating pipes in Zagreb, which would help remove the problem.

HEP will provide an additional HRK 150 million of its own funds to renovate heating pipes in Zagreb, Barbarić said, recalling that HEP had so far invested 10 million euro to install new heating pipes in Osijek.

More Zagreb news can be found in the Lifestyle section.

ZAGREB, November 26, 2019 - In the first half of 2019, average household electricity prices in the European Union increased slightly compared with the first half of 2018, while gas prices were stable, Eurostat said on Tuesday. In Croatia, the prices of both increased slightly.

In the first half of 2019, average household electricity prices in the EU stood at 21 euro per 100 kWh. Average gas prices stood at 6 euro per 100 kWh.

Taxes and levies accounted for 37% of the electricity bills. For gas bills, the corresponding share was 27%.

Between the first half of 2018 and the first half of 2019, the largest decreases in household electricity prices, in national currencies, were observed in Denmark (-4.3%) and Portugal (-4.1%), followed by Poland (-3.1%) and Greece (-1.3%).

The largest increase was registered in the Netherlands (+20.3%), ahead of Cyprus (+16.4%), Lithuania (+14.4%) and Czechia (+12%).

In Croatia, the household electricity price in the first half of 2019 was 13.21 euro per 100 kWh, up 0.8% on the year. Taxes and levies accounted for 22% of the electricity bills.

Between the first half of 2018 and the first half of 2019, the largest decreases in household gas prices, in national currencies, were observed in Denmark (-1.7%), Hungary (-1.6 %) and Austria (-1.3 %).

In Croatia, the average household gas price was €3.75% per 100 kWh, up 2% from the first half of 2018. Taxes and levies accounted for 20% of the gas bills.

More energy news can be found in the Business section.

ZAGREB, November 21, 2019 - The Islands Forum on European islands' clean energy began in Podstrana near Split on Wednesday, with Energy and Environmental Protection Minister Tomislav Ćorić saying that Croatia would push for the establishment of the Energy Union during its EU presidency.

"Alongside clean energy for islands, we also plan to focus on the continuation of the establishment and implementation of the Energy Union as well as on transitioning to clean energy, which will include activities and measures for the reduction of harmful emissions and the development of a low-carbon economy, in line with a just energy transition," Ćorić said.

He said the forum was a watershed in Croatia's preparations for the EU presidency in the first half of 2020, which include activities as part of the Smart Islands Declaration which the EU adopted in 2017. "We are trying to head towards a climate neutral and greener Europe."

Europe has over 2,000 inhabited islands which have access to different energy sources, notably renewables, but many still rely on the expensive import of fossil fuels, Coric said.

In February this year, 26 European islands officially began transitioning to clean energy with the support of the Clean Energy for EU Islands Secretariat, the organiser of the Islands Forum, he said. "We are proud that of Croatia's 1,244 islands, four are on that list - Brač, Hvar, Korčula and the Cres-Lošinj Archipelago."

More energy news can be found in the Business section.

ZAGREB, November 4, 2019 The association called "The Renewable Energy Sources of Croatia", whose acronym in Croatian is OIEH, said on Monday, on the occasion of the 3rd anniversary of the Paris climate change agreement, that the application of renewables in Croatia could also provide opportunities for economic growth and not only challenges.

The Paris treaty, which was seen as a watershed in the struggle against climate change, was signed in 2016 as an agreement within the United Nations Framework Convention on Climate Change (UNFCCC), dealing with greenhouse-gas-emissions mitigation, adaptation, and finance.

The agreement stated that it would enter into force only if 55 countries that produce at least 55% of the world's greenhouse gas emissions ratify, accept, approve or accede to the agreement.

Croatia has undertaken to reduce greenhouse gas emissions and therefore it is necessary to carry out the transition to low-carbon production and renewables.

Croatia is expected to adopt two documents by the end of this year: a strategy for energy development in the period until 2030 with an outlook for the period until 2050, which envisages a much higher share of energy from renewable sources, greater energy efficiency and a reduction of greenhouse gas emissions; and a national 2012-2030 national energy and climate plan.

Last Thursday, the government forwarded the draft strategy to the parliament.

The funds required to implement the strategy range between 378 and 461 billion kuna or between 12.5 and 15 billion kuna annually. Investments will be more intensive in the period until 2030 (14-17 billion kuna), and in the period from 2031 to 2050 they will amount to between 12 and 15 billion kuna, the government said.

At the end of 2018, the share of renewables in total energy consumption in Croatia was 28%, which is more than regulated by the EU.

In 2017, the share of renewables in total domestic energy consumption was 27.3%.

According to the findings of a survey conducted by Eurobarometer, 41% of Croatians believe that it is necessary to increase financial support for efforts aimed at transitioning to clean energy, and every second Croat wants their country to reach carbon neutrality by 2050.

More energy news can be found in the Business section.

ZAGREB, October 31, 2019 - The government on Thursday forwarded to the parliament a draft energy strategy of Croatia in the period until 2030 with an outlook for the period until 2050, which envisages a much higher share of energy from renewable sources, greater energy efficiency and a reduction of greenhouse gas emissions.

"The main purpose of this strategy is to ensure energy independence, a safe and sustainable supply, as well as the development and competitiveness of the energy system, in the context of accomplishing the vision of a common energy-climate policy in Croatia and at the EU level," said Prime Minister Andrej Plenković.

Environment and Energy Minister Tomislav Ćorić said that the strategy's goals included reducing dependence on energy imports and strengthening the supply of energy products by developing strategic infrastructure, one of such projects being the liquefied natural gas (LNG) terminal on the island of Krk.

The strategy is based on growing, flexible and sustainable energy production, development of new infrastructure and alternative energy supply routes, and greater energy efficiency, the purpose being the accomplishment of the EU's climate neutrality by 2050.

"The strategy will enable Croatia to transition to low-carbon energy, primarily by increasing energy efficiency and by increasing the use of renewables," said Ćorić, adding that Croatia already fared relatively well in terms of the use of renewable energy sources.

At the end of 2018, the share of renewables in total energy consumption was 28%, which is more than regulated by the EU, the minister said, but added that he wanted the share of renewables in total consumption and production to be the highest possible in the coming period.

He noted that in the period until 2030 the share of renewables was expected to increase to a minimum 32% with a potential increase to 36.4% while in the period until 2050 the share was expected to rise to 65%.

In 2017, the share of renewables in total domestic energy consumption was 27.3%.

The implementation of the energy strategy requires significant investments in energy efficiency in the context of reducing total energy consumption in the next ten years and beyond.

The third main goal of the strategy is a radical cut in CO2 emissions.

The minister also noted that emphasis would be put on the production of wind and solar energy as well as other types of energy.

The funds required to implement the strategy range between HRK 378 and 461 billion or between 12.5 and 15 billion kuna annually. Investments will be more intensive in the period until 2030 (14-17 billion kuna) and in the period from 2031 to 2050 they will amount to between 12 and 15 billion.

More energy news can be found in the Business section.

ZAGREB, October 23, 2019 - The INA oil and gas company on Wednesday marked the 20th anniversary of continued production of natural gas in the Adriatic Sea.

"In the last 20 years over 21 billion cubic metres of gas has been extracted by 18 platforms in the northern Adriatic. These figures encourage us to make further progress in the exploration and exploitation of hydrocarbons in Croatia, primarily in the northern Adriatic which offers the potential which I believe we will know how to use," Environment and Energy Minister Tomislav Ćorić said at a ceremony held on the Ivana A platform, located 36 kilometres from the nearest mainland.

Ćorić stressed that hydrocarbon exploration and exploitation was being conducted in line with the highest environmental protection and safety standards. "Successful projects like this testify to the importance of strategic and responsible management of resources with a view to developing the economy and increasing the share of domestic production."

Ćorić visited the platform in the company of INA CEO Sandor Fasimon and the head of the Agency for Hydrocarbons, Marijan Krpan.

Fasimon said: "The purpose of our oil and gas exploration and production activities is to maximise the existing potential domestically, both offshore and onshore. We have incorporated this into our development plans because 15 years from now we want to be proud of our company and remain a reliable partner to the Croatian economy."

Krpan said that the Northern Adriatic project was very demanding in terms of technology and concept and that it put Croatia among countries with the know-how for offshore hydrocarbon production.

Ćorić recalled that INA had begun hydrocarbon exploitation in the northern Adriatic in 1999 and that it was an excellent move. He said that currently 1.1 million cubic metres were extracted daily or about 400 million annually, which is about 15-20 percent of domestic consumption.

"In the last few years we have launched several campaigns for hydrocarbon exploration and exploitation, all of them onshore. The northern Adriatic offers certain potential and I'm sure we will know how to use it in the future," the minister said.

Asked about the LNG terminal, Ćorić said that it was being built and that it would be operational at the end of 2020. He noted that the LNG terminal would help meet Croatian needs for gas and diversify supply routes for Europe. "The exploitation of hydrocarbons is one way of reducing Croatia's energy dependence, the other being the construction of alternative infrastructure," Ćorić said.

More news about gas in Croatia can be found in the Business section.

ZAGREB, October 15, 2019 - There will be sufficient gas supplies for the coming heating season and the gas price will not change this season whereas in the near future it could fall markedly, it was said on Tuesday during a conference organised by the Croatian Gas Association (HSUP).

During HSUP's annual general assembly the association's president Dalibor Pudić said that there would be enough gas and end-users can expect secure supplies.

"We have never had a shortage of gas and it will be the same again this season. Suppliers' storage capacities are full. It is warm now, however, we cannot know what the weather will be like in one or two months' time even though that is an important fact so that suppliers can know how much gas to order," Pudić said and added that he did not expect the price of gas to change this season.

He underscored, however, that gas prices in future could change, that is go down.

"I expect that gas prices will change in the future and decrease considering the intensity of LNG production while the production of shale gas has decreased from the preceding period by 55% and so we expect that the expansion in the development of LNG gas will make prices significantly lower," added Pudić.

He claimed that over the past year the sale of LNG gas on European markets increased by 100 percent.

Assistant Environment and Energy Minister Domagoj Validžić explained that the LNG terminal being built on Krk Island should be up and running by the end of next year along with the completion of the gas pipeline.

"Gas will have an important role as a transition energy source toward completely clean energy," Validžić said.

More energy news can be found in the Business section.

ZAGREB, October 6, 2019 - Prime Minister Andrej Plenković on Saturday visited the construction site of the HEP power company's Korlat Wind Farm near Benkovac, which is worth HRK 500 million, will have 58 MW of power and be put into operation in August 2020.

The expected annual output of 170 GWh, or 1% of the annual electricity consumption in Croatia, will be enough to supply more than 50,000 households, HEP said in a press release.

"This investment... is indeed important because it shows that HEP, as Croatia's strongest and most important energy company, has a good understanding of the context of Croatia's new energy development strategy, which is being prepared, as well as of our focus on renewable energy sources, in line with our global commitments and European trends," Plenković said.

"That's why the inauguration of works on the Korlat Wind Farm and the preparation of the Korlat Solar Power Plant project are important for supplying 50,000 with electricity as well as for following global and ecological trends in energy development. I'm glad this investment contributes to GDP growth in Croatia," he added.

The wind turbines will be made, delivered and put into operation by the German company Nordex, while the Korlat Wind Farm will be built by two Croatian companies, Ing-Grad and Fractal.

HEP CEO Frane Barbarić said the company was developing a number of other wind farms to be built by 2030, increasing output by 1,500 MW, half of which from wind farms and solar power plants.

By 2030, HEP plants to produce 350 MW of power in wind farms and as much in solar power plants, the equivalent of the output of the Krško nuclear power plant. One of the solar power plants HEP is developing will be built next to the Korlat Wind Farm and its output would be 75 MW.

The combined power of the two plants using renewables will make Korlat a unique location for the production of green energy in Croatia. The investment is estimated at 480 million kuna, HEP said.

HEP is currently building the Vis Solar Power Plant and will soon begin work on two more, Cres and Vrlika Jug.

The company expects that by 2030 the share of renewables in its production will increase by 50% and that annual production from renewables will go up from 6 to 9 billion kWh.

More energy news can be found in the Business section.

ZAGREB, September 28, 2019 - The first compressor station in Croatia's gas transport system could be in trial operation as of October and in regular operation by the end of the year, it was said on Friday when Environmental Protection and Energy Minister Tomislav Ćorić and officials of the Plinacro gas pipeline operator visited the construction site at Velika Ludina in the Moslavina region.

Works on the 209.5 million kuna station, which will enable two-way gas transport between Croatia and Hungary from the start of 2020, began in August 2018.

Ćorić said it was especially important that the station would enable the normal operation of the future LNG terminal on Krk island.

"Although the lease of the terminal's capacity is lower than expected, a two-way route is necessary because one must consider the global situation in Europe, the ratio of LNG and natural gas prices, the ongoing negotiations at the European Commission's level, primarily the Russia-Ukraine gas transit. Alternative supply routes are increasingly topical, not just in Croatia but on the entire European continent," the minister said.

Plinacro CEO Ivica Arar said the construction of the first compressor station in Croatia's gas transport system was a strategic project which would also comply with European Commission criteria. He added that the construction of the Omišalj-Zlobin gas pipeline was likely to begin in January.

Asked by the press if the government planned to intervene if the prices of oil products continued to rise, Minister Ćorić said the government had intervention mechanisms for which there was no need yet.

Asked about the disposal of radioactive waste from the Krško nuclear power plant, which is co-owned by Croatia and Slovenia, he said it was necessary to wait for the outcome of a meeting with Slovenia due on Monday.

He said there was no agreement for now on a joint disposal site and that "Croatia is also ready for an alternative scenario."

More energy news can be found in the Business section.

ZAGREB, September 22, 2019 - The International Energy Forum (INTERNEF) will be held at the Hotel Cornaro in the southern Croatian Adriatic city of Split on September 27 to discuss globalisation trends in the energy sector, the Institute for European and Globalisation Studies, which is organising the conference for the third consecutive year, has announced.

The forum's theme will be discussed in three panels: Global Energy Trends and Predictions, the Three Seas Initiative and European Energy Trends, and Europe and Croatia: View on Solar Energy.

The forum is also a sort of reminder of the fact that Croatia will be presiding over the Council of the European Union in 2020 and that an important focus should be placed on energy not just in Croatia but in the entire region as well, the organiser said in a statement.

The first forum was organised in 2017 on the subject of the EU and Russia: Challenges and Opportunities in the Energy Sector in Southeast Europe, while the second forum, held in 2018, focused on geopolitical energy prospects in the EU and Eurasia.

More energy news can be found in the Business section.