The first solar power plant sprouts in Pag

The first solar power plant sprouts in Pag

The first large solar power plants in Croatia could start working this year in Povljane, the southern part of the island Pag. It is a perspective large scale solar power plant construction project due to its location and Povljane already has been incorporated in regional plans. The Zadar Canton confirmed that this is a project of their interest

The first large solar power plants in Croatia could start working this year in Povljane, the southern part of the island Pag.

It is a perspective large scale solar power plant construction project due to its location and Povljane already has been incorporated in regional plans. The Zadar Canton confirmed that this is a project of their interest as well.

The Ministry has already issued the investors all the necessary documentation required for obtaining a building permit. Moreover, relevant ministries and local communities will cooperate in this project. This 3.8-megawatt power plant will be built by Jadran lux.

The experts  have assessed the investment to be three to four million per MW, it is expected that the total construction investment will be between 11 and a little bit over 15 million Euros. So far, five small photovoltaic power projects totaling 62 kilowatts were built in Croatia. Germany is the world’s leader in solar energy, however, there were 12,000 PV systems built in the Czech Republic and according to the plan another 5,000 will be built this year.

“Such a rapid investment in the exploitation of solar energy has enabled the introduction of Feed-in tariffs for
electricity produced from these systems and the declining cost of their construction”, explains Tomas Kuhta from the Czech Embassy in Croatia. This has enabled investors large profits and return on investment for three to four years. However, the Czech power system due to technical reasons could not bear so much solar power so they had to stop their rapid spread. “The Czech Republic introduced a 20% tax on profits from such projects which caused
the return on investment extension to 11-12 years and reduced the attractiveness of such investments”, says Kuhta.

Croatia’s interest in investing in renewable energy has significantly increased since the introduction of subsidies that all investors first 12 years provide guaranteed purchase of all electricity produced at much higher prices than regular. The money for the Feed-in tariffs are collected from the fee of half a penny per kilowatt hour spent by the electricity bills paid by all consumers. Croatia plans to produce 20% of its energy by 2020 from renewable energy sources and according to a national energy strategy the total capacity of renewable sources needs to be 1,545 megawatts.

Ministry of Economy has registered 220 solar energy projects so far, from which they previously approved the 87 which among them are the four projects of building solar power plants with total power of 170 megawatts. The greater use of solar energy and other renewable sources, according to which Croatia claims professionals has great potential that will facilitate the announced streamlining a lot of complicated administrative procedures to obtain necessary approvals and permits. A significant increase in quotas by the end of the year should be passed and the law on renewable energy sources.

“This will guarantee subsidized purchase price of electricity and all ongoing developments of more efficient
technologies in order to increase the profitability of such investments will contribute and to encourage investors from the state budget, the Fund for Environmental Protection and Energy Efficiency, regional agencies and other sources,” said Igor Raguzin from Ministry of Economy.

Renewable Energy Projects in Bosnia and Herzegovina

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