Policies | Clean energy for EU islands

In the description of permit and authorisation processes, the focus will lie on onshore wind and solar energy (PV), as these are renewable energy sources for which the largest growth in usage is projected by the Integrated National Energy and Climate Plan for the Republic of Croatia for the period 2021-2030. The share of solar PVs is projected to increase 8-fold by 2030, while a doubling is projected for onshore wind, in terms of final electricity consumption in Croatia. Croatia also has very beneficial geographical and geomorphological features for the use of solar and wind energy. This also applies to geothermal energy, but that is currently underdeveloped in the Republic of Croatia. Choosing the appropriate site is the most important step in order to achieve the best production and business results. It is important to check the local spatial plan to find out which areas are restricted and to assess the potential of amending spatial plans if needed. An environmental impact assessment (EIA) procedure must be carried out before any permits or other approvals for the project are given. Other administrative authorisations, such as the location permit, the building permit, the use permit, the electricity production licence, the grid connection, etc., are obtained later. For the placement of PV panels on top of an existing building, which is considered a simple construction, a building permit is not needed, and an electricity production permit is not needed either. The investor must obtain the electricity production licence from the Croatian Energy Regulatory Agency (HERA) and the grid connection permit, along with some other authorisations for the project before the connection, from the distribution system operator (HEP ODS).

Sequential order of process steps

Site selection process
Administrative authorisation process (Assessing the impact on the environment and obtaining all necessary permits (location permit, building permit, etc.))
Electricity production licence process
Grid connection permit process
Use permission

Competent authorities

Counties and municipalities Ministry of Physical Planning, Construction and State Assets
Ministry of Economy and Sustainable Development
Croatian Air Traffic Control
HEP ODS d.o.o. (Distribution system operator)
HOPS (Transmission system operator)
Croatian Energy Regulatory Agency (HERA)

RES Permits and Authorisation Processes

Building Permit

Administrative deed issued by the Ministry of Physical Planning, Construction and State Assets (“MPCA”) or local authorities, depending on the type of RES Facility. The construction of a project may begin only after the Building Permit (građevinska dozvola) becomes final. As a partial exception from this rule, a Building Permit is not required for the construction of buildings and equipment connected to the electrical grid, which are designed for the generation of electricity with an installed capacity of up to 10 MW. This includes solar power plants or agrosolar power plants within the meaning of the law on spatial planning, for which ownership relations on the land where the facility will be built are resolved (meaning that there are no unresolved disputes and the ownership relations in practice correspond to what is registered in the land registry/cadastre) (“Simple Power Plants”). The Building Permit expires if the construction of the RES Facility does not commence within three (3) years from the date on which it became final. However, the validity may be extended for an additional three (3) year period if the conditions for construction defined within the spatial plan and Location Permit remain unchanged.

Decision on the Status of an Eligible Producer

The deed issued by the Croatian Energy Regulatory Agency (“HERA”) is considered the final step in the permit collection process. Exceptionally, for Simple Power Plants, the decision is not issued; the status of an eligible producer is granted on the basis of evidence that the RES Facility has acquired the right to a permanent connection to the electricity grid. However, if a Simple Power Plant wishes to participate in the electricity Guarantees of Origin (“GO”), it must hold the Decision on the Status of an Eligible Producer.

Electricity Approval

Administrative deed issued by the Croatian Transmission System Operator (“HOPS”)/Croatian Distribution System Operator (“HEP-DSO”). Electricity Approval (elektroenergetska suglasnost) sets out the technical requirements and financial obligations for the connection to the power grid and for its use.

Energy Licence

Administrative deed issued by HERA (dozvola za obavljanje energetske djelatnosti) allowing its beneficiary to perform one of the following activities involving electricity on the energy market: generation/transmission/distribution/ supply/trade of electricity, aggregation, energy storage, organisation of the electricity market, organisation of the citizen energy community and/or activities of the closed distribution system operator

Energy Permit

Administrative deed issued by the Ministry of Economy and Sustainable Development (“MESD”), representing the authorisation to build and run facilities using renewable energy or cogeneration. An Energy Permit (energetsko odobrenje) is required for the construction of RES Facilities, except for Simple Power Plants. An Energy Permit is considered proof of a legal interest in obtaining a Location Permit and a Building Permit. When the Energy Permit is issued through a public tender, it is awarded to the bidder whose proposal offers the greatest advantages.

Environmental Impact Assessment

Assessment validated by MESD, seeking to minimise from the earliest phase of a project, the negative effects to the environment and maximise environmental quality. Either an Environmental Impact Assessment (“EIA”) or an Assessment on the Need to conduct the EIA (“Need Assessment”) must be carried out in the preparatory phase of an intended project and prior to issuance of the Location Permit. Performing an EIA is mandatory for facilities capable of generating more than 100 MW of electricity (more than 20 MW for wind power plants). For solar stand-alone, wind and hydro power plants, and other RES Facilities capable of generating more than 10 MW, a Need Assessment is performed. A full EIA will then be performed only if the MESD decides that it is necessary

Grid Connection Agreement

Administrative deed issued by the grid operator to connect a new generating facility or to modify or replace the connection of an already generating facility to the grid. Grid Usage Agreement Administrative deed issued by the grid operator that defines when electricity will start entering the transmission system and the technical requirements for using the grid.

Guaranteed Off-Take

Price A support mechanism provided to eligible producers of RES-Electricity (“RES-Electricity Producers”) who have been selected as the best bidders in the tender process. The selected candidates are entitled to conclude the agreement at a guaranteed purchase price with the Croatian Energy Market Operator (“HROTE”) and sell electricity to HROTE at the purchase price achieved in the tender, which is paid according to the delivered net RES-Electricity. The Guaranteed Off-Take Price is not available to those RESElectricity Producers benefiting from the Feed-In Tariff.

Location Permit

Administrative deed issued by the MPCA or the local authorities, depending on the type of RES Facility and the planned construction/reconstruction location. To obtain a Location Permit (lokacijska dozvola), the applicant must provide a concept design to the competent authority, which should comply with the special requirements prescribed by technical and safety laws and other regulations. If an EIA is required for a power plant, it must be obtained prior to application for the issuance of the Location Permit.

RES-Electricity

Electricity obtained from renewable energy sources such as wind, solar, aerothermal, geothermal, hydrothermal and oceanic waves, hydraulic, biomass and biogas. RES Facility A generation facility using renewable energy sources such as wind, solar, aerothermal, geothermal, hydrothermal and oceanic waves, hydraulic, biomass and biogas to generate electricity.

RES Support Scheme

State-aid scheme aimed at supporting RES-Electricity based on either (i) the Guaranteed off-take price, or (ii) the Market Premium. However, (iii) the Feed-in Tariff accredited until 31 December 2016 remains eligible for RES Facilities with agreements concluded under the Feed-in Tariff until their expiry.

Usage Permit

Administrative deed issued by the MPCA or other authorised authority, depending on the capacity of a RES Facility. After finalising the construction of a RES Facility, the technical inspection will be carried out in order to examine if all the conditions set out in the Building Permit are met. The MPCA or another competent authority will issue a Usage Permit only if it determines that the RES Facility is compliant with the Building Permit. With the Usage Permit, a RES Facility can legally commence its operations

RES Permits and Authorisation Processes

Policies in Croatia

Regulatory category

Sequential order of process steps

Competent authorities

RES Permits and Authorisation Processes