Croatia: Energy regulator may change RES incentive system

, SEE Energy News

The average electricity price which was 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. “It is necessary to reconsider the justification for such a high price in the current incentives system in relation to the prices on the electricity market in Slovenia and Hungary”, said energy regulator in its report.

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.

“This represents a significant cost to the electricity suppliers in the Republic of Croatia, which indirectly, through electricity prices passed on to end customers. The elimination of the mentioned cost without any other changes to the system is not solution, since as a result it would be increased fees for promoting electricity production energy from renewable energy sources and cogeneration. Therefore, it is necessary to fully consider the current incentives system and the introduction of a system that is more suitable to the Croatian electricity market”, HERA states.

In 2013th, the Agency issued significantly less definitive solutions, primarily for solar power plants. The reason for this is to simplify procedures for integrated solar power plants, as well as reaching the quota prescribed by tariff system for electricity production from renewable energy sources and cogeneration.

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 them off.

“Instead of prescribing administrative control over the fulfillment of high efficiency conditions (UPE) and the terms of the minimum annual efficiency for plants that simultaneously produce electricity and thermal energy, the socially more beneficial solution would be to define the proper price signals, namely to determine such incentive prices for produced electricity, for which the manufacturers would give their best to produce and dissipate heat energy in a way that brings them additional benefit”, HERA states.

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).

Since the time frame of a few minutes is necessary for the application, it could mean signing a contract on the purchase or rejection, a lot of project developers were dissatisfied, so there were initiated investigative actions by the prosecutor and the police. HERA has initiated the procedure of supervision of contracts for the purchase of solar power plants in 2013th and 2014th and it issued Opinion on the supervision on December 16th, 2014th. , transmits