FAQs regarding renewable energy sources and cogeneration

What are the steps to be taken in order to realize a project of a solar power plant?

According to secondary legislation concerning the renewable energy sources and cogeneration the proceeding for obtaining the status of eligible producer and the right to purchase electricity at an incentive price is the following:

• Preliminary Energy Approval for construction of a new plant (issued by the Ministry of Economy, Labor and Entrepreneurship);
• Energy Approval for construction of a new plant (issued by the Ministry of Economy, Labor and Entrepreneurship);
• Preliminary Grid Connection Contract or Grid Connection Contract (concluded with Croatian Distribution System Operator HEP-Operator distribucijskog sustava d.o.o. or Croatian Transmission System Operator HEP-Operator prijenosnog sustava d.o.o.);
• Preliminary Decision on status of eligible producer (issued by Croatian Energy Regulatory Agency, CERA);
• Decision on status of eligible producer (issued by CERA following the plant construction).

In case of a solar power plant of capacity up to 30 kW, such as solar power plant on a family house, a Preliminary Energy Approval is not required.

After obtaining a Preliminary Energy Approval the eligible producer shall sign Electricity Purchase Contract with HROTE. The Contract takes immediate effect from the validity date of the Decision on status of eligible producer.

Could purchased electricity produced from RESCO be considered as electricity trade?

In accordance with Article 13, Paragraph 3 from the Tariff System for the Production of Electricity from Renewable Energy Sources and Cogeneration and with the Article 8 from the Electricity Market Rules, eligible producers shall sign Electricity Purchase Contract with HROTE at incentive price and that shall not be considered electricity trade. Eligible producers who produce electricity from RESCO not having the Electricity Purchase Contract concluded with HROTE shall be on the electricity market considered equal to all other producers who sell electricity produced in their own facilities.

What is the duration of Electricity Purchase Contract concluded with HROTE for incentivized electricity production from RESCO?

The duration of the Contract is 12 (twelve) years and is defined by the Tariff System for the of Production Electricity from Renewable Energy Sources and Cogeneration.

What is the incentive price of electricity produced from RESCO?

The price of electricity produced from RESCO, for producer who obtained status of eligible producer and concluded Electricity Purchase Contract with HROTE, is defined by the Tariff System for Production of Electricity from Renewable Energy Sources and Cogeneration.

Incentive prices for electricity produced from RESCO you may find here.

I intend to produce electricity in a plant using renewable energy sources (RES). What financial incentives are available in Croatia for the construction of such a plant and for the supply from the plant to the power system?

Different options are available for the implementation of such a project in Croatia, which can be generally divided into the following:

• financial support for research, preparation of RES projects, construction and testing of a plant using RES, etc.,
• financial support after the plant has been built and connected to the electricity system.

Regarding the first option information can be found on the websites of Environmental Protection and Energy Efficiency Fund (Fond za zaštitu okoliša i energetsku učinkovitost) and Croatian Bank for Reconstruction and Development (Hrvatska banka za obnovu i razvitak).

Is the electricity production from solar power plants of installed capacity larger than 1 MW incentivized?

According to Article 7 paragraph (4) of the Tariff System for the production of electricity from renewable energy sources and cogeneration, HROTE shall conclude contracts on the purchase of electricity with the eligible producer of electricity from solar power plants until the total installed capacity of all plants of this type in the Republic of Croatia reaches 1 MW. Since the production from solar power plants of installed capacity larger than 1 MW is not incentivized, there is no tariff price for this type of plants.