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EU funding for the Smart Grids Pilot Project

24.07.2018.

The EU funding Grant Agreement for the “Smart Grids Pilot Project” was signed today by Minister of Environmental Protection and Energy Tomislav Ćorić, Director of the Environmental Protection and Energy Efficiency Fund Dubravko Ponoš, Nikola Šulentić, the director of HEP-Distribution System Operator as the representative of the Project Beneficiary.

The total value of the Project amounts to HRK 229 million, while eligible costs amount to HRK 176.4 million, of which the highest possible sum, i.e. 85% or HRK 149.9 million, are secured from the European Regional Development Fund grant. The funding has been secured under the Operational Programme Competitiveness and Cohesion, i.e. the Specific objective 4d1, following the Call for proposals.   

Minister Ćorić pointed out that as the main “expected outcome of this Pilot Project, is to reduce the rate of losses in the distribution grid by 1.1%”, and he also explained that this was just a kick-off, and that soon the entire grid will be included in a similar process.

“The development of Smart Grids represents one of the most important trends in the energy sector today, together with the projects for improving energy efficiency and development of RES”, said Director of the Environmental Protection and Energy Efficiency Fund Mr. Ponoš, adding that “Smart Grids can provide for the long-term sustainability of the electric power system, and preserve the environment at the same time”.

The Pilot Project in Croatia will cover 24 thousand households that will be connected to Smart Grids, and thus bring significant savings to the end users.

“I am exceptionally glad that HEP, as one of our largest energy suppliers, will implement the Smart Grids Pilot Project into their business processes. We are aware that its implementation will be more challenging since the financing is secured from EU funds, but the Fund, as Intermediate Body level 2, will do its best to complete this project as successfully as possible”, stated Mr. Ponoš.

"The Pilot Project is important for adapting the power supply activity in Croatia to the changes brought by the legislative package Clean energy for all Europeans”, said upon the signing of the contract the President of the Board of HEP Frane Barbarić, and he announced that the 2.4 million electricity meters installed in Croatia will be replaced with the smart meters.

The pilot Smart Grid will be introduced in large and medium distribution areas, i.e. in 5 out of 21 HEP ODS distribution areas (Elektra Zagreb, Elektrodalmacija Split, Elektroslavonija Osijek, Elektra Zadar and Elektrojug Dubrovnik) in the period from 2018 until 2022.