Croatia's Koncar to build two solar power plants for INA

Croatian oil and gas group INA [ZSE:INA] said it signed on Thursday a deal with engineering company Koncar – Inzenjering za Energetiku I Transport, a unit of electrical equipment manufacturer Koncar Elektroindustrija [ZSE:KOEI], to build two solar power plants as a first step to creating a portfolio in the production of electricity from renewable sources.

The two plants will produce a total of 16,000 MWh annually, equal to the average consumption of 4,800 households, INA said in a statement, adding that their output will be delivered to the public electricity distribution network.

“The deals are another step in the process of transformation of INA into an energy company and are in line with out development plans,” INA CEO Sandor Fasimon said in the statement.

One of the plants will be located within INA's gas processing plant Molve in Virje, in the northern part of the country, and it is the biggest solar power plant under construction currently in Croatia, the statement added without elaborating on its capacity. The other one will be built at an industrial location in Sisak, in central Croatia.

The construction works are expected to start in the spring. The plants are due to start operations in 2023 at the latest.

Koncar's shares ended 0.53% lower at 945 kuna intraday on Thursday.

INA's shares ended unchanged at 3,500 kuna on the Zagreb bourse on Thursday.

(1 euro=7.525 Croatian kuna)

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