Croatia: Fee for renewable energy will increase, but electricity prices will remain the same

4. October 2016. / SEE Energy News

Croatian Minister of Economy Tomislav Panenic confirmed that the fee for electricity produced from renewable sources will be increased at the beginning of 2017, but claims that the price of electricity for end consumers will remain the same.

Currently, this fee is at the level of 0.00455 euros/ kWh (without VAT) and, according to Minister Panenic, it should increase to between 0.013 and 0.0156 euros/kWh, who denied media reports claiming that the fee will increase up to 0.0195 euros/kWh.

Minister Panenic explained that the Government has already defined measures to compensate the increase of this fee, so the price of electricity for end consumers will not increase as well. According to him, for a household with average consumption of 3,000 kWh of electricity per year, electricity bills could rise by up to 3.9 euros per month due to increased fees, but the Ministry is also working on measure to compensate for an increase in fees for renewable energy. In other words, they discussed with electricity suppliers, primarily HEP which holds about 85 % of the market, that they should find models within their calculations in order to compensate the renewable fee increase.

According to Croatian electricity market operator HROTE, at the beginning of September total installed capacity of facilities that produce electricity from renewable energy sources (RES) reached 637.48 MW, while additional 116 power plants should obtain the status of eligible producer in the near future, and their combined power output is 473.98 MW.

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