Croatia adopts regulations to facilitate renewables growth

The Government of Croatia has adopted the long-awaited decree on incentives for electricity generation from renewable sources and high-efficiency cogeneration, simplifying administrative procedures and paving the way for renewables growth. However, rules and prices for grid connection are yet to be determined.

The decree sets out the terms for obtaining and using renewable energy incentives, both market premiums and feed-in tariffs, according to an announcement from the government. For example, it prescribes that the energy market operator must organize public bidding at least once in three years to award market premiums and/or incentives with a guaranteed purchase price, within the available quotas.

Market premiums and feed-in tariffs must be awarded at least once in three years

Also, the investor in a power plant who enters into a contract with the energy market operator on a market premium or power purchase at a guaranteed price must obtain the status of a privileged electricity producer for the facility within four years.

Methodologies for calculating the maximum prices and the reference market price of electricity are also defined

The decree regulates the methodologies for calculating the maximum price of electricity, maximum guaranteed purchase prices, depending on the type, capacity and technology of facilities, as well as the methodology for calculating benchmark market prices of electricity.

The government also adopted the decree on the criteria for public bidding for energy permits, and the terms and conditions for issuing an energy permit.

Bills on amendments to the laws on renewable energy sources and the electricity market were also adopted at the government session.

The renewable energy association at the Croatian Chamber of Economy (HGK) welcomed the adoption of the decrees, describing them as crucial for further investment in renewable energy in Croatia.

The Croatian Chamber of Economy hopes rules and prices for grid connection would be adopted soon

The HGK’s renewable energy association hopes that rules for grid connection would be announced very soon, as well as prices, to provide the renewables sector with a complete regulatory framework, according to a LinkedIn post from Marija Šćulac Domac, Director of the Industry and Sustainable Development Sector at the HGK.

The technologies covered by the decree are land-based solar power plants, floating solar power plants, agrivoltaic facilities, hydropower plants, onshore and offshore wind farms, biomass power plants, geothermal power plants, biogas plants, biofuel power plants, cogeneration plants using waste and other renewable fuels, and hybrid power plants.

Waste management plan for 2023-2028 was also adopted

Another important document adopted at the last cabinet session is the country’s waste management plan for the period 2023-2028. It incorporates circular economy principles and is based on the goals for the waste management system development until 2035, the government said.

In 2020, Croatia generated 1.5 tons of waste per capita

According to data from the plan, the trend of growth in the total amount of waste generated in Croatia has continued. In 2020, it totaled about six million tons, or 1.5 tons per capita.