Renewable Energy Projects In Croatia

EnergyTechnical ArticlesSouth-East European INDUSTRIAL Мarket - issue 1/2012

Two cogeneration biomass power plants will be build in Benkovac and Zupanja

The project includes the construction and implementation of two cogeneration biomass power plants which will be located in the area of Croatian towns Benkovac and Zupanja with total capacity of 28,6 MW (14,3MW + 14,3MW). Project Benkovac is located in the Business zone Sopot. Complete infrastructure within the zone is provided by the Town of Benkovac. Land purchase for biomass power plant was executed in 2008.
Forest biomass will be used in cogeneration plant with the capacity of 22 t of steam per hour, with condensing turbine with extraction and heat exchanger. Installed capacity is 10,000 kW of thermal energy and 4,300 kW of electricity. Project Zupanja is located south of the Zupanja junction. The construction land is intended for construction of production, commercial and business facilities and is located in the centre of the industrial zone. The construction land is fully equipped with utilities and other infrastructure. Land purchase was executed in 2009. Forest biomass will be used in cogeneration plant with the capacity of 22t of steam per hour, with condensing turbine with extraction and heat exchanger. Installed capacity is 10,000 kW of thermal energy and 4,300 kW of electricity.

Project Developers
Projects developer and owner is Strateski plan d.o.o. Project development, supervision and monitoring during the construction phase are undertaken by Strateski plan - energetski projekti d.o.o. When implementation phase begins the company will ongoing management, operation and maintenance of power plants.

Forest Biomass
Supplier of biomass in Croatia is Sumska biomasa d.o.o. - company founded by the state owned company Hrvatske sume d.o.o. with the goal of more efficient use of forest biomass and the primary task of organizing wood chaff market. Annual amounts of available biomass in Croatia are limited.

Taking into account the energy efficiency of the proposed project, Hrvatske sume d.o.o. concluded multiyear sales contracts which provide security in wood chaff supply. Prices and amounts of wood chaff are determined as a result of public tendering for sale of wood chaff and firewood for the production of electricity and/or thermal energy, conducted by Hrvatske sume d.o.o.

Strateski plan d.o.o. participated in the public tender for the areas of Vinkovci and Gospic and after gaining letter of approval for the most favourable provider it signed the contract with Croatian Forests ltd with 15 plus 15 years of wooden chaff supply on the determined locations.

Technical Solution
The selected technology is based on combustion of biomass out of forest waste on the steam boiler grate, by heating the water in the boiler pipes and turning it into saturated steam necessary to turn the turbine blades. The construction of a cogeneration plant is planned to be performed by the "turnkey" system with a reputable provider of trusted typed solutions.

Key Figures For Both Projects:
· Total investment costs: EUR 37,190,200
· Net present value (NPV): EUR 59,888,073
· Net present value + depreciation: EUR 72,099,229
· Payback period: 5 years
· Internal rate of return (IRR): 25.9%
· Average annual total revenues: EUR 17,313,830
· Average annual operating costs: EUR 7,946,684
· Average annual net cash flow: EUR 7,124,345
· Technical solution: Cogeneration plant with steam
· boiler 22 t steam/h with 4,300 kW of electricity and
· 10,000 kW of thermal energy
· Construction start: December 2011
· Production start: February 2013

Institutional Framework
The legislation of the Republic of Croatia determines the development of energy production from renewable sources as the national interest. This is reflected in the obligation of the Power Transmission System Operator (HEP-TSO), and the Electricity Market Operator (HROTE), to accept and register electrical energy production from renewable sources and cogeneration and to purchase such electricity from producers in accordance with the tariff system applicable to renewable energy sources.

Legal framework for RES and biofuels consists of: Regulation on the minimum share of electricity produced from renewable energy sources and cogeneration which stimulates the production;

Regulation on fees to boost the electricity production from renewable energy sources and cogeneration; Tariff feed in system for electricity production from renewable energy sources and cogeneration; Regulations on the use of renewable energy sources and cogeneration; Regulations on obtaining the status of eligible producer of electricity.

The incentive fee for Incentivizing Electricity Production from Renewable Energy Sources and Cogeneration is collected from all electricity customers in Croatia and are used by Croatian Energy Market Operator for payment of incentive price for electricity delivered to the power system. To receive this fee producer must be registered as an eligible producer. An eligible producer is an energy entity producing both electrical and thermal energy in a single production facility, using waste or renewable energy sources in an economically appropriate manner harmonized with environmental protection.

Source: Strateski plan - energetski projekti d.o.o.




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