Croatia to introduce premiums model of stimulating RES production and new investments

18. May 2020. / SEE Energy News

The Government adopted the decree on the basis of the Energy Development Strategy until 2030 with a view to 2050 and the Integrated National Energy and Climate Plan for the Republic of Croatia from 2021 to 2030 (NECP). It includes national plans for renewable energy sources and energy efficiency until 2030, in order to meet the goals the country has committed to in implementing an environmentally sustainable energy policy. The Croatian Government adopted the proposal of the decree on quotas for encouraging the production of electricity from renewable energy sources (RES) and high-efficiency cogeneration. This means that Croatia will start with the application of the premium model of stimulating RES production and new RES investment cycle, all with the aim of creating a low-carbon society.

The quotas determined by this decree represent the total connected power expressed in kilowatts (kW) of generating installations and generating units for which market premium contracts and contracts for the purchase of electricity guaranteed by the purchase price may be concluded.

Based on the proposed quotas, two state support programs were developed, one according to the GBER procedure approved by the Ministry of Finance for launching tenders in given year and the other support program referred to the European Commission and covering the 2020-2022 period, which relates to the approval of the tender for the award of premiums. Given that this is a dynamic process, in which some projects could be realized in shorter or longer terms, depending on the technology, which can not exceed a period of four years from the year of contracting the premium, Croatian electricity market operator HROTE is given the right and obligation to determine the dynamics of opening certain quotas and to monitor the dynamics of project implementation. For this reason, HROTE will conduct public tenders for the award of premiums, namely public tenders for the conclusion of contracts for the purchase of electricity with a guaranteed purchase price by announcing quotas annually for individual technologies (solar, wind…) with dynamics that ensure market competition and planned entry into the national electricity system.

The total quota of all means of RES electricity generation is 2,265,000 kW.

 

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