CROPEX to organize auctions for HEP’s guarantees of origin – CEO

Croatia’s power utility Hrvatska Elektroprivreda (HEP Group) will be the first in the region to sell its guarantees of origin via an electricity exchange. The first auction is set to take place this year, CROPEX CEO Ante Mikulić said.

Croatia’s power exchange CROPEX sells guarantees of origin of power plants receiving government subsidies, but also of the facilities that have terminated the contracts for incentives or their contracts expired. On behalf of aggregator ENNA Opskrba, it also conducts auctions for power plants no longer receiving incentives.

At the II Regional Conference RE-Source Croatia Hub 2024, Ante Mikulić said that an acceleration of the exit of power plants from the scheme has expanded CROPEX’s range of auctions. The power exchange also organized an auction for Bulgarian firm Energovia. Its guarantees are not a part of the European system of the Association of Issuing Bodies (AIB).

Until now, HEP has sold guarantees of origin bilaterally

But, in his words, a big step has been made with HEP. So far the company has only sold its guarantees of origin bilaterally, Mikulić added.

The state-controlled HEP has certificates for its hydropower plants and other renewable electricity units, and CROPEX is tasked with organizing auctions for all of them.

Asked about the effects of HEP’s decision, Mikulić told Balkan Green Energy News that the move would have a positive effect on the market. HEP is the first power utility in the region to enter such a system, he added.

There is also a market for guarantees of origin outside the AIB system

It is expected that the auctions would kick off this year, he said.

As for the sale of the guarantees of origin for Bulgaria’s Energovia, he told Balkan Green Energy News there were no transactions and attributed the situation to the imbalance between supply and demand. CROPEX organized three rounds so far.

He noted that Serbia’s Elektroprivreda Srbije (EPS) regularly organizes the sale of guarantees of origin that are also not included in AIB’s mechanism. According to Mikulić, the neighboring country’s government-owned power utility has a possibility to cancel its guarantees via Switzerland.

So there is also a market for guarantees of origin outside the AIB system, he stressed.

Of note, Serbia’s power exchange SEEPEX also plans to introduce a market for guarantees of origin.