Two wind farms in Croatia enter merchant PPA deal, leave FiT subsidy scheme


Photo: ZD 2 & 3 (Professio Energia)


August 2, 2022






August 2, 2022





Wind power plants ZD 6 and ZD 2 & 3 are among the first renewable energy plants to voluntarily leave the feed-in tariff (FiT) subsidy scheme in Croatia. Professio Energia signed a PPA deal with Danske Commodities, which now provides route-to-market services for the two facilities.

Renewable energy developer and investment manager Professio Energia and energy trading company Danske Commodities signed a power purchase agreement (PPA) for two wind parks in Croatia. They said the facilities are among the first in the country to voluntarily leave the feed-in tariff (FiT) subsidy scheme.

Danske Commodities now provides route-to-market services for onshore wind power plants ZD 6 (Zadar 6) and ZD 2 & 3 (Zadar  2 & 3), located in the Zadar area in Dalmatia. They have a combined capacity of 46 MW and an average yearly electricity production of 141 GWh total. Total grid connection power is 45 MW.

Klarić: The new deal should increase the value and competitiveness of the two wind parks

“The ZD 6 and ZD 2 & 3 parks were among the first wind projects ever built jointly by Professio Energia. They have supplied renewable energy to Croatian households for more than ten years and we are proud that they are among the first in Croatia to voluntarily leave the FiT subsidy scheme. By entering a route-to-market PPA with an experienced trading company like Danske Commodities, we hope to increase the value and competitiveness of the assets even further,” said Mario Klarić, CEO at Professio Energia.

Path is set for PPA deals throughout Balkans

Danske Commodities has a strategic aim to increase the value of renewable energy, making it able to compete on market terms, said Tor Mosegaard, the company’s Vice President and Head of European Power Trading.

In December, Danske Commodities signed the first post feed-in PPA to be consumed in Croatia between two non-state market participants. It became responsible for the trading and balancing of wpd’s 9.6 MW wind farm in Orlice.

Wind power plants ZD 6 and ZD 2 & 3 were commissioned in 2010 and 2012, respectively

“Danske Commodities has traded energy in Croatia for more than a decade and we now provide energy market services to the majority of the country’s balancing group members. Together with ambitious renewables developers like Professio Energia, Danske Commodities wants to set a standard for more deals to be made across the Balkan region, so we can drive the energy transition forward,” Mosegaard stated.

The ZD 6 and ZD 2 & 3 wind parks are owned by EKO and Velika Popina, joint ventures between Professio Energia (50%) and ENCRO (50%). ZD 6, commissioned in 2010, has a capacity of 9.2 MW and an average yearly output of 26 GWh. ZD 2 & 3 came online in 2012. They have a combined capacity of 36.8 MW and an average production of 115 GWh per year.

The two facilities are jointly owned by Professio Energia and ENCRO

Professio Energia, owned by Croatian institutional investors, pension funds and insurance companies, is listed on the Zagreb Stock Exchange. It said it has a development and operational project portfolio of more than 300 MW.

Danske Commodities is an energy trading company that specializes in short-term power and gas trading and offers balancing, optimization and hedging services to energy producers and suppliers. The company is active in 40 countries. It is a wholly-owned subsidiary of Norway’s Equinor.

Market prices of electricity are several times higher than those within incentives system

The Renewable Energy Sources of Croatia (RES Croatia) association explained to Balkan Green Energy News that companies that break up a feed-in contract suffer no consequences except the inability to return the power plants to the incentives scheme. Of note, the tariffs freed up by such a move can’t be awarded to another operator as Croatia switched to premiums and contracts for difference (CfDs) in the meantime.

“In the situation where prices in the electricity market keep growing, a trend where RES projects would be coming to the market can be expected. Several RES projects already did it, and those that have less than five years until the expiration of their contract are also thinking about it,” the statement adds. RES Croatia pointed out that the average day-ahead power price at the domestic CROPEX exchange was EUR 360 per MWh in July, with a peak of a whopping EUR 520 per MWh or several times more than in the FiT system. The price was EUR 430 per MWh yesterday, and it grew to EUR 443.5 per MWh today.

Last month, Croatia’s first auction for renewable energy projects with large installed capacity was held with a very low investor response.

Comments (0)

Be the first one to comment on this article.

Enter Your Comment
Please wait... Please fill in the required fields. There seems to be an error, please refresh the page and try again. Your comment has been sent.

Related Articles

Greek gas supplier DEPA Commercial solar power 550 MW

Greek gas supplier to build solar power plants of 550 MW in total

07 February 2023 - DEPA Commercial is preparing public calls for contractors for the installation of its first photovoltaic parks

Szijjártó djedovic Hungary Serbia power transmission cooperation

Szijjártó: Hungary, Serbia to double power transmission capacities by 2028

07 February 2023 - Péter Szijjártó met with Dubravka Đedović in Belgrade to discuss energy security in the region and the improvement of energy cooperation

Scholz Germany to install four to five onshore wind turbines every day

Scholz: Germany to install four to five onshore wind turbines every day

07 February 2023 - Germany will use the current momentum to make real progress in the deployment of wind and solar power, Chancellor Olaf Scholz said

solarpower europe report 2022

SolarPower Europe report – 2022, year when solar age truly began

07 February 2023 - Last year the European Union connected 41.4 GW of photovoltaic capacity to the grid, an all-time record 47% increase