Croatia: PPA agreement with Marubeni TPP Plomin may endanger HEP power utility finances

, SEE Energy News

Financial feasibility of the new unit at TPP Plomin may endanger power utility HEP which will have a power purchase agreement with major investor Marubeni. High PPA prices may place an additional burden on financial leverage of HEP.

Local environment groups are warning Croatian power utility company HEP that their partnership with Japanese Marubeni JV project of new TPP Plomin C may push HEP toward bankruptcy.

With private partner, Marubeni Japan, HEP is negotiating the price of 70-120EUR/MWh which is far above the market price of 40-45EuR/MWh. If this project is realized HEP can expect bankruptcy warn local environment experts and opposition society Orah.

Orah is not against the gas fired thermal power plants because they are compatible with RES, they produce load energy and can be shut down in case of RES balance need. The same bad situation is with new hydro power plants as the regulatory and legal framework are wrong. According to Orah the delays in many HPPs are caused by different lobby groups and public bureaucracy.

Croatia in other RES potentials have and utilize huge wind potentials, while the other sources are being stopped. Orah thinks that its good that Croatia is changing feed in tariffs because this will prevent the entrance of tycoons and mafia in this industry. Mafia is present all over Europe in many RES projects claim from Orah, transmits