The Government of Croatia has adopted a decree on quotas to encourage the production of electricity from renewable energy sources and high-efficiency cogeneration, which marks the introduction of incentives.
The decree was 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 state incentive programs have been prepared on defined quotas
The quotas determined by the decree represent the total amount of installed capacity of the structures for which premium market contracts and energy purchase agreements can be signed with a guaranteed purchase price, the decree reads and Renewable Energy Sources of Croatia (RES Croatia).
Based on the quotas, two state incentive programs have been prepared. One is in line with the GBER (General Block Exemption Regulation) procedure and will be approved by the Ministry of Finance for the auction held every year.
HROTE conducts the auction for the award of market awards and for the conclusion of PPA 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 auction for the first of the market.
The programs will be submitted by the Croatian Energy Market Operator (HROTE), as it is in charge of granting incentives.
HROTE has the right and the obligation to establish the schedule for the use of quotas
HROTE has the right and the obligation to determine the schedule for the use of quotas, considering that, depending on the technology, some contracts can be implemented in a shorter or longer period. The maximum should not be more than four years from the signing of the contract for the first.
HROTE also conducts auctions for the allocation of market premiums and for the signing of power purchase agreements (PPAs) with a guaranteed purchase price. Annual quotas for individual technologies should ensure market competition and the planned start of energy production in new plants.
Earlier, Maja Pokrovac, General Director of RES Croatia, said that projects worth EUR 1.6 billion have been prepared and will be implemented after the introduction of the first ones.
Total quota 2,265,000 kW (2,265 GW)
The groups of production plants:
- Solar power plants from 50 kW to 500 kW – 210,000 kW
- Solar power plants from 500 kW to 10 MW – 240,000 kW
- Solar power plants with more than 10 MW – 625,000 kW
- Hydroelectric plants up to 50 kW – 4,000 kW
- Hydroelectric plants from 50 kW to 500 kW – 10,000 kW
- Hydroelectric plants from 500 kW to 10 MW – 10,000 kW
- Wind farms with more than 3 MW – 1,050,000 kW
- Biomass plants from 50 kW to 500 kW – 6,000 kW
- Biomass plants from 500 kW to 2 MW – 20,000 kW
- Biomass plants from 2 MW to 5 MW – 15,000 kW
- Geothermal power plants with more than 500 kW – 20,000 kW
- Biogas plants from 50 kW to 500 kW – 15,000 kW
- Biogas plants from 500 kW to 2 MW – 30,000 kW
- Innovative technologies with support from the EU – 10,000 kW.