-
RES support schemes
Croatia supports a wide range of technologies for electricity generation, energy efficiency, heating, cooling and transport through different schemes. The Croatian Bank for Reconstruction and Development offers lending instruments to promote energy efficiency and renewable energy projects. Electricity generation from renewable energy sources such as solar and wind power is supported by a feed-in tariff/premium. For transport there is support through a subsidy scheme for low- or zero-emission vehicles and there is a quota for the use of biofuel.
Support schemes:
- Technology-neutral investment loans for renewable energy and energy efficiency projects.
- Feed-in tariffs and Feed-in Premiums are awarded through tender procedures operated by the Croatian Energy Market Operator
- A net metering system applies to electricity-producing consumers. Produced electricity must be used primarily for own consumption.
- Subsidies are granted for the purchase of private electric vehicles and public transportation buses with low and very low CO2 emissions.
- Croatia has a biofuel quota that obliges fuel producers to include a percentage biofuel into their products.
- Croatia co-finances the development of the alternative fuels infrastructure such as charging infrastructure.
-
RES-E support schemes are usually promoted through the Environmental Protection and Energy Efficiency Fund (FZOEU, Fond za zaštitu okoliša i energetsku učinkovitost) and several other institutions, namely the Croatian Bank for Reconstruction and Development (HBOR, Hrvatska banka za obnovu i razvitak), the Croatian Agency for SMEs, Innovations and Investments (HAMAG BICRO, Hrvatska agencija za malo gospodarstvo, inovacije i investicije), and the European structural and investment funds. FZOEU funds are awarded exclusively through public tenders usually lasting for a specified amount of time, so there are no support schemes running continuously for multiple years from the Environmental Protection and Energy Efficiency Fund. Consequently, there are currently no open tenders for private citizens for supporting production of electricity from renewable energy sources (RES-E). There are plans for publishing a RES-E public tender for private citizens in the second half of 2021. Currently, only the public and private sector can obtain support for RES-E from HBOR through low-interest loans. Feed-in tariffs (FIT; zajamčena otkupna cijena) and Feed-in Premiums (FIP; tržišna premija) are awarded only through tender procedures operated by the Croatian Energy Market Operator (HROTE, Hrvatski operator tržišta energije). HROTE awards FITs and FIPs through public tenders published at least once a year. Since legislative changes, which defined the existing producer support system on 1st January 2016, the first public tender was finally published in November 2020. However, there are currently no open tenders for awarding of FITs or FIPs. There are plans for publishing public tenders in the second half of 2021. If a large solar or wind RES power plant project does not try to contend for awarding of the FIT or FIP, a lower standard/referent price (RC, Referentna cijena) will be awarded. This is going to make the project less profitable in comparison with the FIT or FIP price. The RC is based on the Tariff System for the Production of Electricity from Renewable Energy Sources and Cogeneration, OG 133/13, 151/13, 20/14, 107/14, 100/15 (Article 3, par. 2, item 16; Article 5, par. 10.), and it currently stands at 0.53 HRK/kWh (ca. 0.07 EUR/kWh). There is a RES-E obligation for new buildings obliging every new building to adhere to the nZEB (nearly zero energy building) standard. A building can obtain the nZEB energy certificate only if the energy performance of a building and the share of renewable energy sources meet the general requirements for nearly zero energy buildings. A net metering system is applicable to electricity-producing consumers (prosumers). Produced electricity must be used primarily for own consumption. Also, the net metering system is applied differently for the commercial sector (business and industry) and differently for the household sector. The Integrated National Energy and Climate Plan for the Republic of Croatia for the period 2021-2030 sets a national RES target of 63.8% in the gross direct consumption of electricity.
-
Summary of support system
- Loan for Public and Private sector investments – the low-interest loans for financing production of own electricity from renewable energy sources with the goal of reducing energy costs are managed by the Croatian Bank for Reconstruction and Development (HBOR). Entities from areas affected by the 2020 earthquakes can achieve a further reduction of the interest rate.
- Investment Loans for Rural Development - the low-interest loans for financing production of own electricity from renewable energy sources with the goal of reducing energy costs are managed by the Croatian Bank for Reconstruction and Development (HBOR). Entities from areas affected by the 2020 earthquakes can achieve a further reduction of the interest rate.
- Tenders for Feed-in tariffs - The Croatian Energy Market Operator (HROTE) operates the tenders. The tenders for Feed-in tariffs are available only for projects with up to 500 kW of installed power
- Tenders for Premium Tariffs - The Croatian Energy Market Operator (HROTE) operates the tenders.
- Net-metering - The net metering system is applied differently for prosumers in the commercial sector (business and industry) and differently for the household sector. Prosumers in the household sector must not produce more electrical energy than they consume in a calendar year. Prosumers in the commercial sector are allowed to produce more electrical energy than they consume, but the installed power must not be greater than the contracted power of the consumer.
- RES-E building obligations - RES-E building obligation is a nZEB (nearly zero energy building) obligation, which is implemented through the Building Act and other technical regulations.
-
Competent authorities
Fond za zaštitu okoliša i energetsku učinkovitost, FZOEU Hrvatska banka za obnovu i razvitak, HBOR Hrvatska agencija za malo gospodarstvo, inovacije i investicije, HAMAG BICRO Hrvatski operator tržišta energije, HROTE
-
In the description of permit and authorisation processes the fous 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 usage 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, electricity production licence, grid connection, etc. are obtained later. For 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 authorizations of the project before the connection, from the distribution system operator (HEP ODS).
-
Sequential order of process steps
1) Site selection process 2) Administrative authorisation process (Assessing the impact on the environment and obtaining all necessary permits (location permit, building permit, etc.)) 3) Electricity production licence process 4) Grid connection permit process 5) 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) Hrvatska energetska regulatorna agencija (HERA)
