Use of the grid
As per the Heat Market Act the use of the grid refers to the utilisation of the distribution network, defined as a hot water, warm water, and/or steam network that spans from the billing metering point of the heat energy producer to the billing metering point of the customer, and is characterised by a length of more than 2,000 metres and more than 500 independent utility units connected.
This use occurs within a distribution area, which is a designated zone or part of a local government unit’s territory where a concession for the distribution of heat energy or a concession for the construction of a distribution network has been granted.
The distribution of heat energy involves the transport of heat energy through the distribution network for the purpose of delivering it to customers. It specifically excludes the supply (commercial sale) of heat energy.
The distributor of heat energy is an authorised energy entity responsible for performing the regulated energy activity of heat energy distribution within a central heating system.
In contrast, the activity of a heat energy buyer is not classified as an energy activity. It involves professional management, handling, and maintenance of internal installations, as well as the delivery and billing of heat energyto end customers within a building or structure—whether in an independent, closed, or central heating system. This activity is performed on the basis of a contract on heat energy consumption, concluded with an authorised representative of the co-owners of the property.
Connection to the grid
Connection to the grid refers to the process and legal obligation of integrating a closed heating system into an existing central heating system, in line with the strategic role of local self-government units in planning and regulating heat energy infrastructure.
According to Article 5, paragraph (4) of the Heat Market Act local self-government units are responsible for encouraging, planning, and approving the development of heating systems within their jurisdiction. In doing so, they must act in accordance with energy efficiency measures, and are required to give priority to central heating systems during new construction or system upgrades.
Where appropriate and technically feasible, these local authorities must also ensure the connection of closed heating systems which serve individual buildings or complexes to the wider central heating network.
Grid development
Grid development in the context of district heating refers to the planning, construction, expansion, reconstruction, and modernisation of the distribution network used to transport thermal energy to households, businesses, and industry. This process is governed by a combination of national and local-level responsibilities and is aligned with Croatia’s Energy Development Strategy and its implementation programmes.
According to Article 4 of the Heat Market Act, the construction and development of district heating systems, particularly those that include high-efficiency cogeneration, as well as their maintenance and use, are considered to be of strategic interest to the Republic of Croatia. District heating systems are recognised as essential elements in achieving the country's energy efficiency objectives. Furthermore, the use of renewable energy sources in thermal energy generation is prioritised within the scope of public procurement and long-term energy planning.
Article 5 extends the responsibility for heating system development to the local self-government units, which are obliged to plan for the development of district heating, especially where cogeneration is present or planned using renewable energy sources. In the spatial planning process, these local authorities must give priority to the development of heat distribution networks that can serve various consumer categories and are required to obtain the consent of the competent energy authority.
The Ministry of Economy and Sustainable Development plays a central role at the national level. It is responsible for monitoring supply and demand on the thermal energy market, preparing forecasts for future consumption, planning the development of additional system capacities, and taking appropriate measures in the event of an energy crisis. Furthermore, the Ministry compiles and submits an annual report to the Government on the state of district heating systems and the required policy actions, based on inputs from local self-government units.
From the operational side, heat energy distributors are legally required to draft a distribution network development plan. This plan must be both technically justified and economically efficient, ensuring an adequate level of security of heat supply. As outlined in Article 28, the development plan must include:
- An investment plan for the construction and reconstruction of network assets (e.g., hot water and steam pipelines),
- An analysis of investment justification, including demand and supply projections, user connection forecasts, and financing sources.
The plan is prepared for each regulatory period, with projections for the subsequent period, and is submitted to the national regulatory agency (HERA) along with a request to determine new tariff items for heat distribution.
Additionally, heat distributors must regularly inform local authorities about the implementation of their development plans, which must align with:
- Local and regional plans based on national energy strategies,
- The development plans annexed to the concession agreements under which the distributors operate.
Local self-government units are required to issue opinions on the compatibility of the distributor’s development plans with their local energy plans and the concession agreement, upon request by the regulatory agency.
Competent Authorities
- HERA - Hrvatska Energetska Regulatorna Agencija (Croatian Energy Regulatory Agency)
- Ministry of Economy and Sustainable Development