UPDATE 1 - RWE, Croatia's HEP set up renewable energy JV

Croatian state-owned energy utility HEP has set up with German energy company RWE a 50/50 joint venture (JV) for managing renewable energy projects, the two companies said on Thursday.

The newly formed JV will manage renewable energy projects in Croatia as well as in other Southeast European (SEE) markets, a joint statement said.

Headquartered in Zagreb, the JV will be active in strategic assessment and analysis of potential investments in electricity production from renewable energy sources, development of decentralized projects, acquisitions, development of waste-to-energy projects, optimizing and increasing the efficiency of existing facilities and the provision of technical consulting services, with a focus on SEE markets.

The two companies started cooperating in 1996 by signing a build-own-transfer agreement for the 210 MW thermal power plant (TPP) Plomin 2 project, which involved setting up a 50/50 joint venture.

In May, RWE took the earliest possible option to exit the Plomin 2 shareholding structure and announced plans to form another JV with HEP.

In Croatia, RWE is also active on the electricity and gas supply markets.

HEP group owns and operates over 4,000 MW of installed generation capacity and 974 MW of heat production capacity, including 25 hydroelectric plants and eight thermal power plants fired by oil, natural gas or coal.

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