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HEP invests over 500 million euro in the modernisation of its hydropower plants

HEP-Proizvodnja, a member of Hrvatska elektroprivreda (HEP Group), the national power company in Croatia and Končar Group, a Croatian electrical, transport and energy company agreed on the replacement of primary equipment at the Senj Main hydropower Plant, worth 330 million kunas (44 million euro). According to its strategy, HEP intends to increase the share of renewable energy sources from 35 to 50 per cent by 2030.

“On the one hand, this Agreement shows the strength of the Croatian electrical industry, which is competitive and valued, not only in the domestic but also in the world markets, while on the other hand, it proves that HEP continues with the energy transition by investing significant funds in modernising its facilities,” commented Tomislav Ćorić, Croatia’s Minister of Economy and Sustainable Development on the modernisation project.

The contract on replacement of primary equipment in HPP Senj covers all three units. The work will begin next year and expected to be completed in 2026.

Senj hydroelectric power plant is a large high-pressure diversion power plant harnessing the Lika and Gacka Rivers water in Croatia. It was put into operation in 1965. The total available capacity of the power plant is 216 megawatts (MW), and the average annual production is 970 gigawatt-hours (GWh), which accounts for about 20 per cent of hydro production in Croatia, or 10 per cent of the total HEP production.

With the reconstruction of HPP Senj, the installed capacity of the power plant will increase by 20 MW, which will enable an increase in annual production of at least 50 million kilowatt-hours (kWh). The life of the power plant will be extended for the next 50 years and the costs of maintenance and operation of the plant will be reduced, according to the statement of the operator.

HEP’s President Frane Barbarić emphasised that in all maintenance activities and investments in existing hydropower plants, Croatian companies participate to the greatest extent possible.

The reconstruction and revitalisation of HPP Senj is part of the cycle of reconstruction, extension and revitalisation of HEP’s hydropower plants, with a total value of 3.9 billion kunas (518 million euro). This investment cycle, which began in 2012, covers 12 of HEP’s 26 hydropower plants. To date, HEP invested about 1.6 billion kunas (212 million euro) by completing the revitalisation of three hydropower plants. The modernisation of five hydropower plants is in progress and planned for the remaining four, which will eventually increase the total hydropower capacity by 170 MW and the annual electricity production by 330 million kWh.

In addition to the existing HPP Senj, HEP intends to build the hydroelectric power plant Senj 2. The implementation of the project will result in the total installed capacity in the watershed of 656 MW and an average annual generation of 1.5 terawatt-hours (TWh).

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