Croatia: Electricity market trends, wholesale and retail 2014 report

3. September 2015. / SEE Energy News

There has been a further decline in energy consumption in 2014th, partly due to an increase in efficiency of energy use and application of energy-saving measure, but mainly due to the economic downturn and falling purchasing power of the population, according to a Report on the work of the Croatian Energy Regulatory Agency (CERA) for 2014th.

In the electricity sector, total electricity consumption of Croatian electric power system in 2014th amounted to 16.9 TWh, which presents a decline of 2.6% compared to 2013th and the continuation of the five-year downward trend in the total electricity consumption in Croatia. Power plants on Croatian territory produced a total of 12.2 TWh of electricity in 2014th, which settle 72% of domestic needs. Favorable circumstance is that in the hydro power plants were produced 8.4 TWh of electricity, the most in the last 10 years, which is approximately 69% of the total electricity produced in Croatian territory in 2014th. The rest of the domestic needs (28%) is covered by imports, with 3.0 TWh (15% of total needs) settled by the electricity production in nuclear power plant Krsko.

The power of all power plants on Croatian territory at the end of 2014th was 4,528 MW. In the incentive system of the electricity production from renewable energy sources and cogeneration (in force since 2007th) we have 412 MW of production capacity, of which 339 MW make wind power plants. In the total electricity consumption in the Republic of Croatia, the share of electricity produced by producing installations using renewable energy sources and cogeneration, which are included in the incentive system was 5.51%, according to statement of the Alliance for Energy Croatian who has made a very interesting overview on the status and trends of the Croatian energy during 2014th.

The average total sale price of electricity (total sale price includes a fee for the use of transmission and distribution network and the electricity price, but does not include fees and taxes) for end customers from the household category in 2014th amounted to 0.104 EUR / kWh. The average electricity price for end customers from the household category under the universal service in 2014th amounted to 0.o6 EUR / kWh. The average electricity price for end customers in the market (outside of supply in the framework of public services) in 2014th amounted to 0.O5 EUR / kWh. In 2014th there was a slight decrease in electricity prices compared to 2013th.

Electricity losses in the transmission network in 2014th amounted to 430 GWh, or 1.9% of total electricity transmitted (including consumption of transmission losses and transits). Electricity losses in the distribution network amounted to 1,257 GWh, and they represent a difference of energy that entered the network, namely procurement and energy sold to customers. In relation to the electricity procurement for distribution system losses amounted to 8.14%.

HEP Production holds 80% of the total energy production in Croatia.

In the context of the wholesale electricity market, the largest share of total consumption in 2014th was covered by the production from power plants on the territory of the Republic of Croatian, which amounted to 12,192 GWh. Physically net import amounted to 4,672 TWh. On the border with Serbia export was higher than import, while in all other borders (Bosnia and Herzegovina, Hungary and Slovenia) imports was higher than export. The import from Slovenia also includes the electricity takeover from NPP Krsko to HEP Ltd.

On the wholesale electricity market the total sales volume of contractual schedules of energy subjects from the HEP Group was 30.51 TWh, namely 74.56% of the total sales volume in the wholesale electricity market in the Republic of Croatia.

As far as the national electricity production, the largest share has HEP Production Ltd, namely 85% in production capacity and 80% in the produced energy. The remaining share of the production capacities have TPP Plomin Ltd. (5%) , renewable energy sector in the incentives system (10%) and the energy produced by TPP Plomin Ltd. (12%) and renewable energy sector in the incentives system (8%).

In the category of household, the largest proportion of electricity sold in 2014th have large households and medium households, while the largest share in terms of the number of metering points have medium household and very small households. In the entrepreneurship category on low voltage the greatest share of sold electricity is in the class of small enterprises, while far the largest share of the number of end customers is in the class of small businesses. In the case of end customers on medium voltage the most electricity was sold is in the class of small businesses, where also the largest number of end customers (metering points) is. In the case of end consumers on high voltage the most electricity was sold in the class of a very large enterprise.

HERA points out the moderate decrease in consumption in 2014th, from 1.7% compared to consumption in 2013th. The cause of the reduction of total energy consumption is a decrease in the consummation of low voltage customers, including households, while in the case of large customers on medium and high voltage has been generated slightly higher consumption compared to 2013th. 40.4% was sold to the costumers from the household category, while 59.6% of the total energy was sold to the customers from the commercial category.

In terms of market concentration in the electricity sold on the retail market in December 2014th, the three largest suppliers had a market share of 89% in the supply of end customers to household, while four biggest suppliers have a market share of 94% in the supply of end customers from the commercial category.

The average electricity price which paid to eligible producers in the incentives system in 2014th (116 EUR / MWh) is almost three times higher than the annual average price of electricity on the Hungarian and Slovenian electricity stock exchange. In its report HERA states that it is necessary to reconsider the justification of such high prices in the current incentives system in relation to the prices on the electricity market in Slovenia and Hungary.

The suppliers are obliged to buy the total electricity produced in the incentives system , in proportion to their share in the total energy delivered to final consumers at a regulated price of 0.07 EUR / kWh, while the annual average price of electricity on the Hungarian and Slovenian electricity exchange in 2014th amounted to 0.04 EUR / kWh.

Projects for solar power plants are still the most numerous, with a relatively small overall strength, while wind power projects have the greatest overall strength. Solar power plants, although more numerous than other types of power plants, due to the relatively small power and the variability of production, produce only 3.79% in the total production of eligible producers from the incentives system. However, 10% of the incentives in the total payment is paid off to them.

On January 2014th, it was reached a “quota”, namely restrictions on the purchase contracting from solar power plants (5 MW for integrated solar power plants, 2 MW for integrated solar power plants that belong to the facilities owned by Government bodies, local and territorial (regional) authorities and 5 MW for non-integrated solar power plants). , transmits

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