The pumped-storage hydropower plant will be built in the area between the north side of the Peruća HPP and natural valley of Ravno Vrdovo. The particular value of this location, which makes it one of the most favourable in Croatia, lies in the existing Peruća reservoir and the relatively short distance from Ravno Vrdovo, the vicinity of the power system and a link to the EU electricity system, as well as the small distance from a large number of existing and planned wind and solar power installations.