Croatia reduces green power surcharge for energy-intensive companies

Energy-intensive companies in Croatia could save up to EUR 10 million a year through the government’s scheme to reduce the surcharge they pay for incentivizing renewable energy production.

The European Commission has approved, under EU State aid rules, a Croatian scheme that grants reductions to energy-intensive companies on a surcharge to finance support for renewable electricity production.

Croatian support for renewable energy is at present financed through contributions from electricity consumers, based on their consumption. A month ago the Government of Croatia adopted a decree on quotas to incentivize the production of electricity from renewables, which marked the introduction of premiums for stimulus.

The companies will obtain a reduction of up to a maximum of 80% of their contribution to the financing of subsidies

The scheme, which will apply until December 31, 2021, and will have a provisional annual budget of EUR 10 million, will benefit companies active in Croatia in sectors that are particularly energy-intensive (hence with higher electricity consumption) and more exposed to international trade, the Commission said.

The beneficiaries will obtain a reduction of up to a maximum of 80% of their contribution to the financing of support to renewable energy.

Compensation will only be granted to energy-intensive companies exposed to international trade

Croatia also submitted an adjustment plan to align with State aid rules the level of reductions from which a number of eligible and non-eligible companies have benefited since 2013.

The Commission found that the compensation will only be granted to energy-intensive companies exposed to international trade, in line with the requirements of the Guidelines on State Aid for environmental protection and energy 2014-2020.

In March Slovenia temporarily freed small business customers and households from the obligation to pay for the support to producers of power from renewables.

At the beginning of April, the Federation of Bosnia and Herzegovina decided to keep the surcharge fee in Q2 and Q3 of 2020 at the same level as in Q1.