RWE Hrvatska
Factbook Croatia
February, 2015
RWE Hrvatska within RWE East
RWE is performing business activities across the whole
of Europe
RWE Hrvatska
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RWE Hrvatska within RWE East
RWE East is performing business activities in six
countries (2013 figures)
2014
[Except Croatia]
RWE Hrvatska
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RWE Hrvatska
RWE Hrvatska – Newly established management holding
within RWE East since January 2013
RWE Subsidiaries in Croatia
TE Plomin d.o.o. (since 1996)
ZOV d.o.o. (since 2000)
RWE Energija d.o.o.
(since 2013)
RWE Plin d.o.o.
(since 2014)
Electricity production
Waste water treatment
Electricity supply
Gas supply
First joint venture company for
electricity generation in Croatia
Biggest waste water treatment
plant in West Balkan Region
First move of European Utility into Croatian
electricity and gas supply market
RWE Hrvatska
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Croatian Energy Market
The emerging market Croatia in terms of…
…demographics
…economics
Area
Population
Population growth rate
Average age
: 56,594 km²
: 4.25 m (2014)
: -0,45% (2014)
: 42.2 (2013)
•Zagreb
…energy demand
N.Gas Consumption
Gross Electricity Cons.
… installed capacity and net electricity demand
: 2,809.5 bcm (2013)
: 17.3 TWh (2013)
Peak Electricity Demand : 2,813 MW (2013)
Minimum load
: 1,105 MW(2013)
Net Electricity Demand
: 14.6 TWh (2013)
Domestic power production: 12.8 TWh (2013)
Installed Capacity
GDP volume
: € 42.866 bn (2014)
GDP growth rate
: -0.8% (2014)
GDP per capita
: € 10,221 (2014)
Inflation rate [CPI]
: -0.2% (2014)
Unemployment rate
: 19,9% (2014)
Average ex.rates US$/HRK: 5.75 (2014)
€/HRK : 7.63 (2014)
: 4.386 GW (2013)
Oil
7%
Coal
7%
N.Gas
26%
Nuclear
8%
Household
42%
Services
34%
Hydro
51%
Total installed capacity:
4.386 GW
Source: Croatian Bureau of Statistics, HOPS, HERA Raiffeisen Research
Others
4%
Industrial
21%
Net Electricity Demand:
14.6 TWh
RWE Hrvatska
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RWE subsidiaries in Croatia
TE Plomin d.o.o. - Thermal power plant in Plomin
TE Plomin d.o.o. is a joint venture of HEP d.d.
and RWE.
It is the first joint venture company in the
industry of electricity generation in Croatia.
Plomin
Contract:
 Financing, construction and
operation of PP Plomin 2 (hard
coal, 210 MWnet)
 Longterm PPA with Croatian Utility
HEP
Contract duration:
 Exit after RWE‘s full repayment in
April 2015
Project structure:
 JV: 50 % RWE Power AG, 50%
HEP d.d.
Financial Frame of Investment:
 Volume: app. 300 Mio. EUR
Year of commissionig:
 2000
RWE Hrvatska
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RWE subsidiaries in Croatia
Key data - Power plant TE Plomin d.o.o.
TE Plomin 2 is owned by TE Plomin d.o.o. Production and maintenance are
carried out by HEP Generation d.o.o.
Category
Unit
Rated operation
Furnace thermal capacity
MW
568
Imported coal use
t/h
79,2
Capacity
MW
210
Energy conversion efficiency
%
>37
Annual production average (10 years)
2009
2010
2011
GWh
GWh
GWh
GWh
1316
1242.7
1511
1545
Quantity of steam
kg/s
186,1
Live steam pressure / live steam temperature
bar / °C
148 / 535
Hot reheat pressure / hot reheat temperature
bar / °C
47 / 535
Condenser pressure
mbar
46
Feed water inlet temperatur
°C
24,9
RWE Hrvatska
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RWE subsidiaries in Croatia
ZOV d.o.o. - Waste water treatment plant in Zagreb
The Zagrebačke otpadne vode d.o.o. (ZOV)
was founded in 1998 and charged to plan,
finance and erect the WWTP Zagreb as well as
the related infrastructure.
Zagreb
Contract:
 Financing, planning, erection, operation
and maintenance of WWTP Zagreb (for
1,2 mill. Inhabitant Equivalent, IE)
Contract duration:
 28 years, until December 15th, 2028
Project structure:
 ZOV d.o.o. (Project company): 48,5 %
RWE
 SRV d.o.o. (Construction company):
50 % RWE
 ZOV uip d.o.o. (Operating company):
33 % RWE
Financial Frame of Investment:
 Volume (incl. funding costs): 350 Mio.
EUR (thereof 20% equity capital, 80%
by KfW, Frankfurt and EBRD, London)
Construction time:
 5 years (July 2002 – August 2007)
RWE Hrvatska
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RWE subsidiaries in Croatia
Key data - Waste water treatment plant ZOV d.o.o.
sludgetreatment
 Capacity:
1,2 mill. IE
 Sewage flow:
330 Tm³/d,
max. 20 Tm³/h
 Pollutant load:
ca. 90,000 kg BOD5/d
 Sludge production:
ca. 150 t/d
 Utilisation of sewage gas:
CHPs with 2,4 MWel
currently ca. 85%
Bedarfsdeckung
 Employees:
biological
purification
mechanical
purification
More than 70
The biggest waste water treatment plant in West Balkan Region
RWE Hrvatska
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RWE Energija d.o.o. – Electricity Supply Business
RWE Energija d.o.o., a 100% affiliate of RWE
Hrvatska d.o.o. was acquired in June 2013
(former Energija 2 Sustavi d.o.o.) to act as a 1st
mover in the liberalising Croatian energy market
in the context of EU accession in July 2013.
Zagreb
Business activities:
 Procurement and sales of electricity to
final customers in Croatia
Foundation of business:
 Start-up in August 2011
 Electricity Supply License year end 2011
Energy supplies:
 Sales to public institutions and
commercial customers since 2012
 Sales to private households since June
2013
Market share target:
• at least 10% in 2018
RWE Hrvatska
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RWE subsidiaries in Croatia
Key data - RWE Energija d.o.o.
RWE Energija is a 100% subsidiary of RWE Hrvatska d.o.o.
Category
2014 figures [year end]
Energy supply to customers
582.5 GWh
Net turnover /revenues
237.5 Mill. HRK / 7.63 Mill. €
Contracts [household customers]
app. 95.000
Contracts [small business customers]
app. 2.750
Market share [all customers]
5,4%
RWE Hrvatska
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Market
RWE Hrvatska
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ELECTRICITY MARKET
RWE Hrvatska
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Croatian Electricity Market Model
IMPORT/ EXPORT
Trader 1…
Generator 1…
…Trader n1
…Generator n2
Supplier 1…
Supplier n2…
Electricity market – eligible clients
State owned
>
Private owned
Interactions (sourcing/ sale of electricity)
State ownership among power producers and downstream segment reaches
above 80-90%, while in trading is less than 10%
RWE Hrvatska
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Croatian Electricity Transmission System
Source: HOPS
RWE Hrvatska
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Croatia – Annual power demand and system peak load
Source: HOPS
RWE Hrvatska
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Development of electricity prices in Croatia
(for household customers)
Development of average household1) electricity prices
2005 = 100%
167%
125%
98%
2005
2006
101%
2007
134%
110%
2008
2009
Net electricity prices
2010
2011
2012
2013
2014
Taxes, levies and fees
1) Annual consumption of 3,500 kWh/2,500 kWh < Consumption < 5,000 kWh (new price calculation methodology from 2007 onwards
Source: Eurostat, February 2015.
RWE Hrvatska
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Development of electricity prices in Croatia
(for industrial customers)
Development of average industrial1) electricity prices
2005 = 100%
2005
2006
2007
2008
2009
Net electricity prices
2010
2011
2012
2013
2014
Taxes, levies and fees
1) Annual consumption of 2,000 MWh/500 MWh < Consumption < 2,000 MWh (new price calculation methodology from 2007 onwards)
Source: Eurostat, February 2015.
RWE Hrvatska
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GAS MARKET
RWE Hrvatska
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Croatia exhibits a typical EU-gas market structure –
but with a still regulated retail market
Comments
Market structure
Market activities
Regulated activities
CEE*
Market
s
Tariff buyers
[Households]
 These regulate specific areas of the gas sector
such as organization and functioning of the
gas market, tariff systems, allocation, and use
of cross-border transfer capacities.
Current EU law already enacted
 The Act on the Regulation of Energy Activities
and the Gas and Power Acts was fully
implemented in March 2013.
Plinacro (TSO)
Total
suppl
y
Gas balancing groups
HEP d.d., PPD, INA, Crodux, +12 others
Domestic
productio
n
INA*
 Croatian Energy Regulatory Agency (HERA)
and the Croatian Energy Market Operator
(HROTE).
PSP* (storage)
Imports
Two regulatory authorities for the gas market
 This ensures legal unbundling, customer
protection and TPA to certain infrastructure.
DSOs
Industrial /
Commercial
[SB/SME/B2B]
* INA: Ina-Industrija Nafte d.d.
CEE: Central and Eastern Europe
PSP: Podzemno Skladiste Plina d.o.o.
 Croatia does not impose any special rules on
cross-border gas trade - all deals are
conducted bilaterally, although export
restrictions and rules requiring reporting to
institutions may apply under special
conditions.
RWE AG
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More than half of Croatia’s demand is covered by
indigenous production
Supply/Demand balance 2013 [GWh]
Production
13,120
Storag
e
548
Import
12,202
Losses
258
Source: HERA, annual report (2013)
 Croatia currently meets around 65% of its
gas requirements through domestic
production operated by INA
Imports from adjacent markets – no long
term contract
 Former Russian imports are replaced by
imports from Hungary, Austria and Italy
DSO
10,906
Households
6,157
Strong indigenous production
 Recently issued concession will hold
production stable or even increase
production
Transport
System
25,881
Industry
14,975
Comments
Industry
4,494
Gas demand expected to increase
 New power generation capacity is
expected to increase gas demand –
however it remains unclear if all of the
new plants will be built
RWE AG
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The Croatian gas market player structure has
undergone a substantial transformation since 2008
Market structure in 2008
Comments
Transformation to an unbundled structure
 To comply with EU regulations Croatia gradually
transformed its integrated gas market structure to
the current unbundled form:
39 DSO‘s
Market structure in 2014
Delivery and
sales of the
natural gas
from own
production
INA d.d.
Production
marketing
Natural gas
storage
HEP d.d. PSP d.o.o
Gas
midstream
and nonregulated
supply
20 Companies
Natural gas
transmission
Gas distribution and
regulated gas
supply
Plinarco d.o.o
36 DSO‘s
Domestic production
 INA is Croatia’s major upstream oil and gas
producer
Transmission
 Since 2007 Plinacro d.o.o. is responsible for
allocation and reservation of transmission network
capacity - 100% state-owned company
Storage
 Since 2009 PSP - 100% owned by Plinacro is
operating the 0.55 bcm Okoli site.
Distribution
 Currently 36 active distribution system operators,
mostly owned by local municipalities
 Those with less than 100,000 customers are not
unbundled
Midstream
 Since 2008 more and more companies emerged
on the midstream stage of the market, with
currently 20 active companies RWE AG
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Development of gas prices in Croatia (for household
customers)
Development of average household1) gas prices (including gas tax)
2005 = 100%
82%
2)
2005
2006
2007
2008
2009
Net electricity prices
2010
2011
2012
2013
2014
Taxes, levies and fees
1) Annual consumption of 83.7 GJ/20 GJ < Consumption < 200 GJ (new price calculation methodology from 2007 onwards
2) First half of 2014
Source: Eurostat, February 2015.
RWE Hrvatska
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Development of gas prices in Croatia
(for industrial customers)
Development of average industrial1) gas prices (including gas tax)
2005 = 100%
2)
2005
2006
2007
2008
2009
Net electricity prices
2010
2011
Taxes, levies and fees
2012
2013
2014
1) Annual consumption of 41,860 GJ, load factor 200 days, 1,600 h/10,000 GJ < Consumption < 100,000 GJ (new price calculation methodology from 2007 onwards)
2) First half of 2014
Source: Eurostat, February 2015.
RWE Hrvatska
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