The European Bank for Reconstruction and Development (EBRD) has announced a loan of up to €31.6 million to support Croatian state-owned power utility HEP in the construction and operation of the Korlat solar power plant. With an installed capacity of up to 99 MW, this project aims to bolster Croatia’s transition to green energy.
According to the EBRD, the Korlat solar power plant will play a crucial role in HEP’s decarbonisation efforts, with an expected annual reduction of approximately 28,899 tons of CO2 emissions. Once completed, it will be the largest solar facility in HEP’s renewable energy portfolio, highlighting the significance of renewable sources in replacing fossil fuels in the country.
HEP plans to commission the Korlat solar power plant by 2026, financing it through loans backed by a state guarantee. However, the company faced challenges in securing a market premium for the project during a recent tender by the Croatian Energy Market Operator (HROTE). Despite having a project value of €62 million, HEP’s bid was deemed valid but unsuccessful, as it offered a higher electricity price than competing projects, which had lower production costs. HEP stated that its pricing was competitive within its own group.
