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

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ELECTRICITY PRODUCTION<br />

The Government’s Conclusion announces the implementation of the following generating plants:<br />

- a combined-cycle cogeneration unit fired by natural gas at Sisak TPP (230 MWe, 50 MWt);<br />

- a 500 MW coal-fired replacement unit at Plomin TPP;<br />

- multi-purpose hydropower plant on the Sava (120 MW, expected annual production 600 GWh);<br />

- Ombla hydropower plant (68 MW, expected annual production 223 GWh);<br />

- hydropower system of the Lika and the Gacka (Kosinj reservoir, Kosinj HPP, Senj 2 HPP –additional 400 MW<br />

and 450 GWh);<br />

- two natural flow hydropower plants of 50 MW each on the Drava (Molve 1 and Molve 2).<br />

Among the investment projects of interest for the Republic of Croatia, there is also Dubrovnik II HPP as well as<br />

renewable energy sources.<br />

To finance the construction of Ombla HPP, HEP intends to secure funding from an international financial institution<br />

while the replacement unit at Plomin TPP is currently in the phase of obtaining the siting permit and of<br />

preparing for selection of partners for the project implementation.<br />

In 2010, the construction of Lešće HPP (42 MW) was completed and the construction of a new unit at Sisak<br />

TPP continued.<br />

In the area of renewable electricity sources, HEP is developing the wind power project Krš Pađene (100 MW),<br />

expected to be put into service in 2013, and a biomass power project, Velika Gorica, of 20 MWe and 35 MWt (also<br />

on the list of investment projects of interest for Croatia).<br />

In addition to construction of new generating plants, replacement of equipment, reconstruction and refurbishment<br />

work on existing plants has been continuously carried out, the most extensive of which is the refurbishment<br />

of Zakučac HPP.<br />

ELECTRICITY TRANSMISSION AND DISTRIBUTION<br />

The Government’s Conclusion prioritizes construction of electricity transmission and distribution projects:<br />

- Dubrovnik Program (TS 220/110/35/20(10) kV Plat with associate power lines and TS 110/10(20) kV Srđ<br />

with associated power lines);<br />

- electricity system control function;<br />

- Program Rijeka – stage 2 (TS 110/20 kV Turnić, TS 220/110 kV Pehlin – replacement plant 110 kV, 2x110 kV<br />

Pehlin-Turnić cable, 110 kV Pehlin-Zamet-Turnić cable, 110 kV Turnić-Sušak cable);<br />

- 2x110 kV Vinodol-Melina line; replacement of power lines in the Zagreb area (2x110 kV Rakitje-Botinec line<br />

and 2x110 kV Samobor-Rakitje line).<br />

The construction of a double-circuit 400 kV transmission line toward Hungary, Ernestinovo-Pecs, was completed in<br />

2010 and a state-of-the-art information system was introduced which supports all functions necessary for the proper<br />

functioning of the electricity market. In December 2010, construction began of TS Plat with associated power lines,<br />

as part of the Dubrovnik Program which is scheduled for completion in 2013.<br />

It is planned to step up the modernization and construction of a new distribution network in order to meet the<br />

growing needs for electricity and for connection of new customers, especially in major cities, tourist and industrial<br />

zones.<br />

GAS BUSINESS<br />

The long-term business policy of HEP is to participate in the gas business at several levels.<br />

The activities of natural gas distribution and supply have been continuously developed. Based on a concession<br />

right to build a gas network and to supply gas to customers for a period of 30 years, gas network expansion started<br />

in 2010 in the area of Slavonia and Baranja has continued into 2011.<br />

Preparations are underway for an active participation in the development and construction of a LNG terminal<br />

on the Adriatic coast of Croatia as a significant alternative supply route.<br />

DISTRICT HEATING<br />

The refurbishment project of the heating networks of Zagreb and Osijek has been completed. It is planned to expand<br />

the district heating business in Sisak by building a new unit at Sisak TPP, which is in progress. In 2010, preparation of<br />

a number of projects to refurbish and build district heating systems in Zagreb and Velika Gorica continued.<br />

OTHER<br />

There is a project underway to introduce e-mobility, which represents a business leap into the future and the formation<br />

of a new customer base.<br />

15<br />

HEP ANNUAL REPORT 2010 CHAPTER 1 - COMPANY PROFILE

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