Page 86 - SE Outlook Regions 2022

phases of this process are in line with the company's internal rules and
the applicable regulations.

While Jadroplov is moving its share issue plans forward, Croatian
fertiliser producer Petrokemija intends to delist its shares from the
Zagreb Stock Exchange. The plan was already approved by the
management and supervisory boards. Although Petrokemija provided
no details on the reasons for the delisting, local media reported that it
might be related to an offer by Turkish holding company Yildirim.

3.4.4 Energy & power

Croatia has committed to the green energy goals of the EU. The
country plans to protect 30% of the area of the Adriatic Sea under its
jurisdiction and plant 1mn new trees a year until 2030. The goal is to
compensate for the impact of tourists on carbon dioxide emissions.
Croatia will aim to reduce its carbon emissions by 45% by 2030 and will
stop using coal for energy generation by 2033.

In December 2021, the European Commission approved a €783mn
Croatian scheme for state aid to support electricity production from
renewable sources. The measure will help Croatia reach its renewable
energy targets, including those set in its Recovery and Resilience plan.

The scheme should enable Croatia to support renewable electricity
production from a wide range of technologies. The measure will
contribute to the reduction of CO2 and other greenhouse gas
emissions, in line with the EU Green Deal objectives and the
environmental targets set in Croatia's Recovery and Resilience plan,
without unduly distorting competition in the single market.

Under the scheme, Croatia will provide a premium on top of the
electricity market price. The premium will be set through tenders and
will not be higher than the difference between the average production
cost for each renewable technology and the electricity market price.
The measure will be open until 2023 and the aid will be paid out to the
selected beneficiaries for a period of 12 years.

Among the investments into renewables, power utility Hrvatska
Elektroprivreda (HEP) intends to build seven solar power plants with
total capacity of 60 MW, after signing agreements with six municipalities
and one city. The projects are part of HEP’s plan to invest in the
construction of 350 MW of solar power plants in the period 2019-2030.
The total value of the projects is HRK380mn (€50.54mn). HEP also said
it plans to start the construction of a 75MW solar power plant in 2022,
estimated to cost over HRK500mn next to the Korlat wind farm.

In the oil and gas sector, Croatian oil and gas group INA issued a
HRK2.0bn (€266mn) bond in December, intending to use the funds for
servicing its debt, finance acquisitions in equipment and facilities, and
for new investments.

86 SE Outlook 2022 www.intellinews.com