HEP Secures EBRD Loan for 99-MW Solar Project

• HEP secures EUR 31.6 million for Croatia's solar future, signaling a green shift and a commitment to sustainability with the new Korlat photovoltaic farm.

Croatia's state utility, Hrvatska Elektroprivreda (HEP), has secured a loan of up to EUR 31.6 million from the European Bank for Reconstruction and Development (EBRD) to fund the construction and operation of a 99-MW solar park. The financing was approved in September and is part of a broader funding strategy, which includes an additional EUR 30.4 million from the European Investment Bank.

The Korlat photovoltaic farm is expected to generate approximately 117,050 MWh annually, reducing carbon dioxide emissions by nearly 29,000 tonnes. This initiative aligns with HEP's decarbonization strategy and Croatia's aim to increase renewable energy's share in gross final energy consumption to 36.4% by 2030. Currently, HEP's power generation capacity stands at 3,451 MW, with only 3% derived from renewable sources.

How will the Korlat solar park impact Croatia's renewable energy goals and emissions reduction?

• Enhanced Renewable Energy Capacity: The Korlat solar park will significantly boost Croatia's renewable energy capacity, contributing an additional 99 MW to the national grid. This increase is essential for achieving the national target of 36.4% renewables in gross final energy consumption by 2030.
• Significant Emission Reductions: By generating around 117,050 MWh annually, the park is projected to help reduce carbon dioxide emissions by approximately 29,000 tonnes. This reduction will play a vital role in meeting Croatia's emissions targets and commitments under international climate agreements.
• Support for Decarbonization Strategy: The project aligns with HEP’s broader decarbonization strategy, which focuses on transitioning away from fossil fuels and towards sustainable energy sources. This shift is crucial for reducing reliance on coal and other high-emission energy sources.
• Job Creation and Economic Growth: The construction and operation of the Korlat solar park will likely create various jobs in the renewable energy sector, contributing to local economic development. As Croatia invests in renewable technologies, there may be further opportunities for local enterprises in manufacturing, installation, and maintenance.
• Investment in Infrastructure: The funding secured from prominent financial institutions like the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank demonstrates a strong commitment to expanding renewable energy infrastructure. This financial backing can facilitate the development of additional projects in the future.
• Energy Independence: The increase in renewable energy generation from the Korlat solar park contributes to Croatia's energy independence by reducing reliance on imported fossil fuels. This move enhances energy security and stabilizes energy prices in the long run.
• Promotion of Clean Technologies: The completion of the Korlat photovoltaic farm will serve as a benchmark for future solar projects in the region, encouraging additional investments in clean technology and innovative solutions, driving the renewable energy market forward.
• Community Engagement and Awareness: Projects like the Korlat solar park can raise public awareness and support for renewable energy initiatives, fostering a stronger community engagement in sustainable practices and climate action.
• Long-term Sustainability Goals: The successful implementation of the Korlat solar park will support Croatia's long-term sustainability goals, reinforcing the importance of integrating renewable energy in national energy policies to combat climate change and promote environmental stewardship.
• Potential for Future Expansion: The initial success of the Korlat solar park could pave the way for further development of similar projects across Croatia, contributing to the government's broader agenda of increasing the role of renewables in the energy mix.