The project, which is being executed by Geo Power, a subsidiary of Enna Group, marks the start of the Geotermalna Elektrana Zagocha (GTE Zagocha), a 20-megawatt power plant expected to be operational by 2028.
This ambitious venture, valued at over €140 million, follows Enna Group’s acquisition of the project from Dragan Jurilj in 2022. The development involves the creation of a deep production well, Podravska Slatina GT-6, which will tap geothermal resources located up to 5,000 metres beneath the surface. The Croatian drilling company Crosco has been contracted for this critical phase.
The plant will generate electricity from the thermal energy of the underground water, with plans to repurpose the used hot water for local community projects such as greenhouse heating, aquaculture, and district heating
Geo Power has secured a 25-year concession from the Ministry of Economy for the exploitation of geothermal waters in the Slatina 2 field, with an option for extension.
In addition to GTE Zagocha, Enna Group is advancing another geothermal project in Babina Greda, where it has also acquired rights from Jurilj. The exploration phase at this site has confirmed significant geothermal reserves, with further drilling anticipated in early 2025.
Enna Group highlights the long-term benefits of geothermal power compared to other renewable energy sources. With a minimum lifespan of 40 years, geothermal plants offer sustained contributions to state and local budgets, including a 5% share of revenue from electricity sales and fixed land use fees. Specifically, the GTE Zagocha plant is projected to generate over €500,000 annually for the state and local municipality, and approximately €300,000 for the county.
While the cost of constructing a geothermal plant is notably high—exceeding €6 million per megawatt compared to €0.6 million for solar and €1.3 million for wind power—Enna Group believes the long-term returns and environmental benefits justify the investment. As Croatia continues to explore its geothermal potential, the success of projects like GTE Zagocha could position the country as a leader in sustainable energy within the region.
