DRAVA, KUPA, RJE»INA, LOKVARKA, LI»ANKA LIKA, DOBRA ...

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HEP ANNUAL REPORT 2010
CHAPTER 7 - REPORTS BY HEP GROUP COMPANIES WITH FINANCIAL STATEMENTS
HEP-PROIZVODNJA d.o.o.
NIKOLA RUKAVINA
DIRECTOR
THE EXCEPTIONAL BUSINESS RESULTS achieved by HEP Proizvodnja d.o.o. (HEP Production) in 2010 contributed to a
record success of HEP Group business operations. Especially favourable hydrological conditions during the year made
it possible for hydro power plants to achieve a record production in the amount of 8.3 TWh. It should be stressed
that at the end of the year 2010 HEP Proizvodnja had high water levels in reservoirs of hydro power plants and high
fuel levels in tanks for cogenerating plants. With the synchronization of Units A, B and C in August 2010 a period of
trial operation of Lešće HPP began. In 2010, significant civil works were carried out for the needs of construction of
Unit C of 230 MW at Sisak TPP.
Due to the recession in most European countries, consumption of electricity and natural gas decreased, making
natural gas supply in the European energy market sufficient and leading as a result to a decrease in electricity prices.
Together with a record hydroelectric production in 2010 in Croatia, this made it possible to decrease production in
less cost-competitive power plants fired by oil.
It should be emphasized that HEP Proizvodnja continued in 2010 to maintain an appropriate high level of availability
of generating plants and/or did not have any major failures or damages resulting in jeopardizing electricity
or heat deliveries. Although most of HEP Proizvodnja production plants are aged, the cumulative investments in
preventive maintenance and dedication by maintenance staff have ensured an appropriate condition of production
plants.
Along with fulfilling its core business of electricity and heat production and delivery to HEP systems and a
high level of availability of generating plants, HEP Proizvodnja ensured the possibility of providing various auxiliary
services for the needs of operating the Croatian electricity system within the European interconnected system. As
in the previous six years, HEP Proizvodnja obtained certificates for 2010 of a hundred percent electricity production
from renewable sources in hydro power plants. For several hydro power plants, ISO certificates 9000 and 14000
were obtained. Professional improvement and training continued, depending on specific needs of different plants,
production areas and headquarters of HEP Proizvodnja.
Through regular maintenance, modernization and refurbishment, in 2010 the activities continued to improve
control and management systems of power plants to make it capable of quickly changing loads and switching status
as required by the system operator. The activities intensified on construction of the Cetina River Basin Center in order
for HEP OPS, MC Split to take over the planning and control of power plants.
In accordance with the Rules on Organization and Systematization of HEP Proizvodnja d.o.o. (2007) in 2009
Economic Affairs Department and Department for Legal, Personnel and General Affairs were set up and in 2010
Department for Production Planning was established.
In 2010 the company successfully cooperated with HEP Group members, especially intensively with HEP OPS
and HEP Trgovina considering the direct technological and economic interconnection. As part of the restructuring
of the energy market according to EU requirements and Croatia’s pre-accession activities., HEP Proizvodnja specialists
have been closely cooperating with specialists from other HEP Group members and with HERA, HROTE and the
Ministry of the Economy, Labor and Entrepreneurship.
Special attention is paid to the implementation of environmental legislation. A program to reduce CO 2 emissions
has been prepared in accordance with Croatia’s obligations under the Kyoto protocol and other international
documents. In 2010, most of the activities concerning the obtaining of environmental permits for thermal power
and cogenerating plants were carried out.