VZCZCXYZ0004
RR RUEHWEB

DE RUEHVB #1394/01 3251134
ZNR UUUUU ZZH (TAO)
R 211134Z NOV 06
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 6950
INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC

UNCLAS ZAGREB 001394 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ENRG ECON HR
SUBJECT: Croatia looks to wind for clean energy source 
 
¶1. (SUMMARY) Driving along the coastal highway, the 14 recently 
erected windmills appear on a bluff above the town of Sibenik, 
evoking sighs of delight from some and dismay from others. Croatians 
are split over whether windmills are another man-made environmental 
hazard or the means to help the country meet its quota for clean, 
renewable energy while covering domestic power demands. Further 
production depends on results of studies currently underway and on 
legislation aimed at regulating renewable energy and feed-in 
tariffs. Croatia's goal is to have 10 percent of electricity from 
renewable sources by 2010 and eventually reach 20 percent. (END 
SUMMARY) 
 
¶2. After an official from the Croatian electric company (HEP) stated 
during an energy conference that there were more investors 
interested in wind energy than projects to invest in, HEP 
commissioned the Zagreb-based energy think tank, the Hrvoje Pozar 
Institute, to conduct a thorough study of the pros and cons of wind 
energy in Croatia. Issues include connecting wind power to the 
energy grid, compensating for dips in wind-generated power, 
environmental impact, and comparing the wind plants' cost to 
potential production. The study is expected by the end of the year. 
The GoC is considering legislation that would define the share of 
electricity from renewable energy sources and establish a tariff 
system. 
 
EnerSys 
 
¶3. Econoffs recently visited a newly-opened wind power plant built 
and operated by EnerSys in Sibenik on the Adriatic coast, the second 
such plant constructed in Croatia. The plant was completed in June, 
with opening ceremonies held Nov. 14.  EnerSys' director Zeljko 
Samardzic said the plant was built after a two-year feasibility 
study, similar to the one being done by Hrvoje Pozar. Samardzic 
showed the completely computerized and automated interior of the 
windmills, explaining that information on energy production, wind 
speed, and maintenance problems could be monitored in real-time from 
an office in Sibenik. 
 
¶4. The fourteen 50-meter high windmills, with 24-meter blades, are 
the smallest models. They each operate on 40 kW per hour, but 
together can produce 11.1 megawatts of electricity per hour. When 
operating at full capacity, the windmills could produce electricity 
for 10,000 homes. Except for the soft whooshing of the blades, the 
windmills are barely audible when standing beneath them, dispensing 
any concerns of sound carrying to nearby towns. HEP has contracted 
to buy electricity from the EnerSys wind plant for 61 euros per MWh 
for 15 years. 
 
Koncar 
 
¶5. Koncar, an electrical equipment company, is also conducting its 
own study with plans to erect an experimental wind farm in Konjsko, 
inland from the coastal city Split. The plan calls for construction 
of ten 1-megawatt windmills, costing about $12 million, by the end 
of the year and 15 more windmills next year. Company director 
Miroslav Madercic said Koncar has been making parts for windmills 
and decided to produce their own with an eye toward the global 
market. He said Koncar can make windmills faster than the 9 months 
it currently takes for delivery from one of the European producers. 
He said windmill production and windmill plants are good for 
economic development in Croatia, adding that the windmill industry 
(both production and operation) employs some 70,000 in Germany. 
Koncar sees a good market in neighboring countries, especially 
Bosnia and Serbia. 
 
¶6. Madercic said Croatia would be best served by a combination of 
wind and hydroelectric plants, because hydroelectric plants can 
quickly compensate when there is not enough wind to produce 
electricity. He said one reason wind and hydro power plant 
production is stalled is because of HEP's focus on gas and coal 
plants. He said there could be many more projects in progress, but 
all need HEP's approval to connect to the electrical grid. He also 
said if feed-in tariffs are set at 8 euro cents per kilowatt hour, 
wind energy park construction would be feasible. 
 
More projects planned in Croatia 
 
¶7. Next year EnerSys plans to build another 12-windmill park in 
Orlice, between Sibenik and Split, with an electrical output of 9.6 
MW. The following year, project developer Valalta from Istria and 
German partner Wallenborn Projektentwicklung are planning a wind 
power plant with 22 generators in Vratarusa, near Senj and 34 more 
wind generators in Cicarija in Istria. Croatian company Dalekovod, 
is currently surveying 25 locations in Bosnia and Croatia. They have 
placed wind-measuring units in 10 locations so far. All of these 
projects are moving forward but will be more secure once the 
approving legislation is passed. 
 
Environmental concerns 
 
¶6. Environmentalists and ornithologists have expressed concern for 
birds that often fly along the coast. They claim that too many have 
been killed by flying into the spinning windmill blades. Koncar's 
studies include bird migration patterns. Madercic said Koncar will 
avoid erecting windmills in the direct path of such migration or 
they would be erected higher to avoid flying species common to the 
area. However, environmentalists said birds are not completely 
predictable and that even the higher windmills would still pose a 
hazard to high flying species such as eagles and hawks. The EnerSys 
director said the windmills pose more of a threat to bats, which are 
attracted to sound and added, "Many more birds are killed on the 
highway than by windmills." 
 
Tourism 
 
¶7. While some are concerned windmills will take up prime coastal 
land, which could be used for hotels and golf courses, others see 
the beauty and attraction of wind farms. A representative from 
Hrvoje Pozar said there was mention of turning the first wind farm 
on Pag into a tourist attraction, similar to one in California. 
 
Bradtke