The exploitation of geothermal potential in Croatia is just beginning. The first exploratory wells are being drilled, and the potentials are only being confirmed. So far, according to projections presented last year by State Secretary Ivo Milatić at the Ministry of Economy and Sustainable Development, it is planned to install facilities with a capacity of 320 megawatts by 2030, which would consume one-third of the estimated geothermal energy potential from which electricity can be produced.
As pioneers, ENNA Group, British Star Energy Group, and Turkish Soyak Renewables have emerged, part of the Soyak family group, which is primarily focused on construction and the metal industry but has experience with geothermal energy as it has developed two such power plants in Turkey, which it still operates. Through its company Terra Energy Generation, Soyak is developing a 98-megawatt facility in Legrad, which will be the largest geothermal power plant in Croatia. The project is being implemented in two phases, each with 49 megawatts, with an additional potential of 45 megawatts. Construction of the plant is expected to begin in the spring of 2026, and energy production should start in early 2028. Soyak’s entry into the Croatian geothermal energy market comes at a time when Croatia is intensively considering its energy options. Can Soyak is a member of the Soyak family, which owns the group bearing that surname. He is responsible for renewable energy, and is the owner and manager at Soyak Renewables. In an interview with Lider, he emphasized that they have come to Croatia to stay.
Soyak and other investors in geothermal energy advocate for the introduction of an incentive system. Why?
– Croatia already has the necessary systems available, namely the feed-in premium system. This is a widely applicable and universal model that we fully support. The feed-in premium system is absolutely the only way to attract investment in geothermal energy.
Proponents of free markets generally oppose incentives because one should not encourage what cannot achieve a profitable price in the market. I know this is somewhat simplified, but what would you say to such a claim?
– Geothermal projects are very large, expensive, and risky. You do not know whether you will find a sufficient temperature for exploitation. A large part of the risk exists in the initial phase of investment, namely in the exploration of wells. To produce electricity from geothermal energy, we seek very high-temperature water under high pressure, which is mostly found in dolomitic rocks in Croatia. We target dolomite at depths of three to four kilometers, and we hope for very high temperatures, between 150 and 200 degrees.
I understand the risks. And what does energy from geothermal sources bring to justify the incentives?
– To finance these projects, a state support scheme within the feed-in premium system is absolutely necessary. Geothermal energy contributes to energy security, which has no price. Other renewable energy sources cannot provide base load power like geothermal plants do. In the future, especially with increased investments in renewable energy, there will be imbalances in the grid, which means very large price fluctuations. To balance these imbalances, base load power is important. Other renewable energy sources are also a very important part of the future energy mix. But they cannot provide such base load power. There are days when there is neither sun nor wind, and geothermal energy is stable throughout the day, night, and year. It is important to note that subsidizing renewable energy projects is common practice across Europe.
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