Croatia: RWE withdrew from TPP Plomin

, SEE Energy News

After nearly 20 years of cooperation on the construction and operation of thermal power plant Plomin 2, the German energy giant RWE Energie ended a strategic collaboration with the Croatian Electric Power Industry (HEP) in company TPP Plomin.

Expired contract between the two parties concluded under BOT model (Build-Own-Transfer) in 1996th, and thus thermal power plant Plomin 2 is the wholly-owned by HEP.

Ralf Blomberg, former member of management of TPP Plomin Ltd. and a representative of RWE team said on this occasion that in RWE company were satisfied with the cooperation with HEP throughout the period of thermal power plant construction and management and concluded that they went out from this project after complying with all environmental, technical and legal requirements and that they gave HEP an object that could be independently exploited in the next 25 years.

But in HEP point out that both sides are satisfied with the cooperation and plan to launch a new joint venture company soon.

The business activities of the new joint venture company co-owned by HEP and RWE will be coordinated with the development of the energy system in the region, where the RWE role will be primarily in providing strategic consulting services in the field of energy production, thanks to its extensive experience across the RWE Group Europe, according to HEP.

The construction of the thermal power plant Plomin 2 began in 1980s, but the works were not going at the planned pace and the construction was completely interrupted with the war, at the beginning of the 90s. The Croatian government has decided that the power plant be completed in cooperation with a strategic partner, so HEP and RWE Energie from Essen entered into a partnership agreement on the project of construction of thermal power plant Plomin 2 in 1996th .

It was established a joint venture, TPP Plomin Ltd, for the completion of construction and exploitation of TPP Plomin 2, in which both companies had 50 percent of the share, with the right on joint facility management by 2015th. Total investment in TPP Plomin 2 was worth around 300 MEUR, thermal power plant was completed in 1999th and it was put into operation in 2000th.

“The plant has been the backbone of electricity production base in Croatia since putting into operation. It achieves an extremely large number of working days and thus makes a substantial contribution to the security of electricity supply in Croatia. The construction of TPP Plomin 2 significantly reduced environmental pollution, since the thermal power plant Plomin 1 is connected to the 340-meter high chimney, which was built for the needs of Plomin 2. Electrostatic filters, flue gas desulphurization and DeNOx plant, which will start work in 2018th, enable work with the highest standards of environmental protection, in accordance with EU norms”, conclude in HEP.