Goverment adopts decree to introduce premiums for renewables in Croatia

The Government of Croatia has adopted a decree on quotas to incentivize the production of electricity from renewable energy sources and high-efficiency cogeneration, which marks the introduction of premiums for stimulus.

The decree has been adopted on the basis of the energy sector development strategy until 2030, with projections until 2050, and the national energy and climate plan (NECP) for the period 2021 to 2030.

Two programs of state incentives were prepared based on defined quotas

The quotas determined by the decree represent the total amount of installed capacity of the facilities for which market premium contracts and power purchase agreements with a guaranteed purchase price can be signed, the decree reads and the Renewable Energy Sources of Croatia (RES Croatia) reported.

Based on the quotas, two programs of state incentives were prepared. One is in line with the GBER procedure (General Block Exemption Regulation) and it will be approved by the Ministry of Finance for auctions held every year.

HROTE conducts auctions for the award of market premiums and for the conclusion of PPAs with a guaranteed purchase price

The second program will be sent for approval to the European Commission. It covers the period 2020-2022 and refers to the approval of the auctions for the market premiums.

The programs will be submitted by the Croatian Energy Market Operator (HROTE), given that it is in charge of granting incentives.

HROTE has the right and obligation to determine the timeline for using quotas

HROTE has the right and obligation to determine the timeline for using quotas, minding that depending on the technology, some contracts can be implemented in a shorter or longer period. The maximum must not exceed four years from the signing of the contract for premiums.

HROTE also conducts auctions for the allocation of market premiums and for the signing of the power purchase agreements (PPAs) with a guaranteed purchase price. Annual quotas for individual technologies should ensure market competition and the planned start of power production in new facilities.

Earlier, Maja Pokrovac, Managing Director at RES Croatia, said projects worth EUR 1.6 billion are prepared and that they would be implemented after the introduction of premiums.

Total quota 2,265,000 kW (2.265 GW)

The groups of production facilities:

• Solar power plants from 50 kW up to 500 kW – 210,000 kW
• Solar power plants from 500 kW up to 10 MW – 240,000 kW
• Solar power plants with more than 10 MW – 625,000 kW
• Hydropower plants up to 50 kW – 4,000 kW
• Hydropower plants from 50 kW up to 500 kW – 10,000 kW
• Hydropower plants from 500 kW up to 10 MW – 10,000 kW
• Wind farms with more than 3 MW – 1,050,000 kW
• Biomass power plants from 50 kW up to 500 kW – 6,000 kW
• Biomass power plants from 500 kW up to 2 MW – 20,000 kW
• Biomass power plants from 2 MW up to 5 MW – 15,000 kW
• Geothermal power plants with more than 500 kW – 20,000 kW
• Biogas power plants from 50 kW up to 500 kW – 15,000 kW
• Biogas power plants from 500 kW up to 2 MW – 30,000 kW
• Innovative technologies with support from the EU – 10,000 kW.