Policies in Croatia

Connection procedure 

Croatia enacted the new distribution grid connection rules in 2023.

The connection to the grid must be approved by the distribution system operator (HEP ODS d.o.o.). There are two types of procedure for grid connection, depending on the type and size of the plant: the simple connection and the complex connection. Either way, the owner of the RES-E plant has to contact HEP ODS to start the procedure. 

The simple connection procedure is for connecting an electricity-producing plant to a low-voltage network. This is the usual procedure for connecting solar panels (PV) on a house to the grid. The investor must pay the fee for building the connection, which is then built by the system operator. Furthermore, the investor must conclude an Agreement on the Grid Use with the system operator. Finally, when the Agreement is concluded, the system operator activates the connection and issues a confirmation at the beginning of usage of the network. 

The complex connection procedure is for connecting an electricity-producing plant to a mid-voltage network or a low-voltage network for which technical adjustments are required beforehand. This is the usual procedure for connecting a ground-mounted PV farm or another large RES plant. The project developer has to conclude a Grid Connection Agreement with the system operator. When the investor pays the fee for building the connection, the connection will be built. Finally, the investor, or the owner of the installation, must conclude an Agreement on the Grid Use and submit a formal request for the beginning of the grid use in accordance with the general conditions on grid use and electricity supply.

RES

Facilities for the production of electricity from renewable sources with a connection capacity of up to 50 kW are considered "simple connections" to the distribution grid.

If the connection is technically feasible, HEP ODS (the Distribution System Operator) issues an offer for equipping the metering point for billing purposes. Once the payment is made, the user submits a request to change their network user status. Based on this request, HEP ODS issues a certificate of permanent operation along with an updated annexe to the grid usage contract.

A test period is only mandatory for systems that include battery storage or are connected to an aggregator capable of operating independently from the grid (i.e., in island mode).

Self-consumption systems (e.g. rooftop solar for homes) are treated as prosumers and follow a simplified procedure to confirm technical feasibility. If installed on existing buildings, no building permit is required. The final steps include signing a grid usage agreement and receiving confirmation of operation. However, if the system includes a battery energy storage system or is managed by an aggregator, it must still undergo a test period, as such installations can disconnect from the grid and operate autonomously.

Amendments to the Law on Renewable Energy Sources and High-Efficiency Cogeneration allow natural persons to remain within the self-consumption regime even if their annual electricity production exceeds their consumption.

However, if a household generates more electricity than it consumes over the year, the surplus is compensated at a higher tariff, typically applied to business (non-household) users.

In the event of having to limit the delivery of electricity into the grid, the DSO or TSO must enable eligible producers (povlašteni proizvođači) of electricity from renewable energy sources priority access to the grid, if this does not affect the security of the system. To attain the status of a eligible producer, one must satisfy the criteria stipulated in Article 20 of the RES Act, such as: the installation must use renewable energy sources and/or waste and renewable energy sources or simultaneously produce electricity and heat energy in high efficiency manner; the installation must be registered in the Register of Renewable Energy Sources, Cogeneration, and Eligible Producers (OIEKPP Register); the installation must have a connection to the network and installed measurement equipment so that the calculation of net delivered electricity is enabled, etc. According to Article 21 of the RES Act, the decision on obtaining the eligible producer status is made by the Croatian Energy Regulatory Agency (HERA).

Priority to renewable energy

The operator of the transmission system or the operator of the distribution system is obliged, in cases where it is necessary to limit the delivery of electricity from production facilities to the power grid, to ensure priority delivery of electricity to the grid for the production facilities for which they have acquired the status of privileged power producer about other production plants connected to the power grid, unless such priority delivery significantly impairs the reliability and safety of the power system operation.

Consumers of their own renewable energy

Consumers have the right to become consumers of their own energy from renewable sources, individually or through an aggregator, and have the right to:

1. produce energy from renewable sources, including that for own consumption, store and sell surplus of such electricity produced from renewable sources, inter alia through renewable energy purchase contracts, electricity suppliers and mutual trade agreements, without being subject to of electricity they consume or feed into the network, with discriminatory or disproportionate procedures and fees and network fees that do not reflect costs, and about electricity from renewable sources that they produce themselves, which remains within their facilities, with discriminatory or disproportionate procedures and with any fees or fees
2. install and use electricity storage systems in combination with plants that produce electricity from renewable sources for their own consumption, without paying any double fees, including network fees when it comes to stored electricity that remains in their facilities
3. retain their rights and obligations as end customers
4. receive compensation, among other things, when applicable, through a support program for electricity from renewable sources that they produce and feed into the grid, which reflects the market value of that electricity and which can include its long-term value for the grid, the environment and society.

Procedure

The grid operators (both the TSO HOPS and the DSO HEP ODS) are obliged to formulate the grid development plans in accordance with measures and strategies outlined in the Integrated National Energy and Climate Plan for the Republic of Croatia for the period 2021-2030. If the grid has to be further developed, or reinforced, in order to accommodate for a new grid connection, a procedure prescribed by the distribution system operator must be followed, in accordance with the Regulation on issuing the electricity assent and establishing conditions and deadlines for connecting to the grid (OG 7/18) (Grid connection Regulation). This also applies if the grid must be reinforced for the connection of a new RES plant. The procedure is slightly different for simple and complex connections. For simple connections, the distribution system operator decides if further development of the grid is required during the preparation of the electricity assent (EES, elektroenergetska suglasnost – a document defining technical and financial terms of a new grid connection), which is prepared according to the Grid connection Regulation and the Rules on connection to the distribution grid. This is initiated by the investor with the submission of the Request for Determination of Special Conditions and Connection Conditions. The distribution system operator (HEP ODS d.o.o.) issues the electricity assent along with an Offer for connection, which contains the price of reinforcement of the grid to be paid for by the investor. After the investor pays the price of the grid reinforcement and a new connection, the DSO reinforces the grid and makes the necessary connection, along with the signing of the Agreement on Grid Use. For complex connections, the project developer must request and pay the DSO for a Study of the optimal technical solution of the connection (EOTRP). The investor then must sign a Grid Connection Agreement and submit a Request for determination of special conditions and connection conditions, to which the DSO issues an electricity assent (EES) and also signs the Grid Connection Agreement. In the Electricity Assent and the Grid Connection Agreement, the DSO decides if further development of the grid is required in order to accommodate for a new connection and offers a price for the reinforcement of the grid and making of the connection. After the investor pays the price of the grid reinforcement and a new connection and makes a Request for the conclusion of the Agreement on Grid Use, the DSO reinforces the grid, makes the connection, and concludes the Agreement on Grid Use with the investor.

Obligations and rights of plant operators

In accordance with the Electricity Market Act, the TSO must connect all entities, including generators, to the transmission network on a non-discriminatory basis. In addition, the connection must be technically and economically feasible, and the applicant must satisfy the requirements for connection. Limitations to this general rule apply to wind generating stations, which require a certain level of base load. The grid capacity for wind parks, as determined by the TSO, is set to approximately 400MW, out of which 297.45MW is already taken by fifteen operating wind parks, and another 42MW is taken by a wind park that is currently in the test phase. According to the August 2014 published list of the Croatian TSO, the remaining capacity of approximately 81MW is currently reserved for seven projects. A generator must enter into a standard form connection agreement, which determines the obligations of the parties, in particular with respect to the payment of charges and relevant deadlines. The general rule is that the generators are charged the full cost of their connection, which is determined by the actual connection expenditure. This cost must be factored into project development costs for any generation facility connected to the transmission network (all plants with an output of more than 10MW) since the connection cost usually includes the cost of substation construction.