LEGISLATION FRAMEWORK FOR CROATIAN RENEWABLE ENERGY SOURCES DEVELOPMENT

Abstract

The energy sector reform in the Republic of Croatia (started 2001), which comprises restructuring, liberalisation, privatisation, and changes in the overall energy sector, has a significant effect on the possibilities of introducing and increasing the share of renewable energy sources (RES). The adoption of a new legislative framework within the context of reforming Croatia's energy sector is of key importance for further development and for the future or RES utilization. The Electricity Market Act sets out the legal obligation to purchase electricity produced from RES in the manner that a quota or a minimum obligatory share of RES in electricity production is determined by a Government ordinance combined with Tariff system for the production of electricity from renewable energy sources and co-generation. Consequently, on the one hand, incentive funds needed to cover increased costs of production from RES will be collected from customers through the supplier and distributed to privileged producers (feed-in-tariffs, purchase is guaranteed to RES producers on known terms) through the Market Operator. On the other hand, RES investment projects will be encouraged by purpose-specific government subsidy and by the Environmental Protection and Energy Efficiency Fund (out of public budget). By applying new energy legislation and associated by-laws (coming into force in 2007), RES projects in Croatia will be provided with a complete and stable legal framework as well as support through incentive measures which will equitably value environmental, social and other benefits of RES use.

Keywords

Dates

  • Submission Date2007-03-18
  • Revision Date2007-03-31
  • Acceptance Date2007-04-10

DOI Reference

10.2298/TSCI0703027R

References

  1. ***, Directive 2001/77/EC of European Parliament and of the Council on the promotion of electricity produced from renewable energy sources in the internal electricity market, OJ, L283, September 27, 2003
  2. ***, Committee for Energy Sector Reform, Possible Directions of Croatian Energy Sector Reform (in Croatian), Ministry of Economy, Zagreb, 2000
  3. ***, Energy Act (in Croatian), Official Gazette 68/2001 and Act on Amendments to the Energy Act, Official Gazette 177/2004
  4. ***, Electricity Market Act (in Croatian), Official Gazette 68/2001 and 177/2004
  5. ***, Oil and Oil Products Market Act (in Croatian), Official Gazette 57/2006
  6. ***, Gas Market Act (in Croatian), Official Gazette 68/2001
  7. ***, Energy Activities Regulation Act (in Croatian), Official Gazette 68/2001 and 177/2004
  8. ***, Energy Development Strategy of the Republic of Croatia (in Croatian), Official Gazette 38/2002
  9. ***, National environment protection strategy (in Croatian), Official gazette 46/02
  10. Granić, G., and co., National Energy Programs, Introduction Book, Ministry of Economy, Energy Institute Hrvoje Požar, Zagreb, 1998
  11. ***, Annual Energy Report Energy in Croatia, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  12. ***, Draft of Tariff System for the Production of Electricity from Renewable Energy Sources and Co-Generation, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  13. Raguzin, I., Founding of Environmental Protection and Energy Efficiency Fund (special edition), Privredni vjesnik, Zagreb, 2003
  14. ***, Draft of Regulation on the fee for the Promotion of the Electricity Production from Renewable Energy Sources and Co-Generation, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  15. ***, Draft of Regulation on a Minimum Share of Electricity Produced from Renewable Energy Sources and Co-Generation whose Production is Encouraged, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  16. ***, Frontier Economics, Cost Benefit Analysis for Renewable Energy in Croatia, Report prepared for HBOR, Ministry of Economy and World Bank/GEF, London, 2003
  17. ***, Draft of Ordinance on the Use of Renewable Energy Sources and Co-Generation, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  18. ***, Draft of Ordinance on the Obtaining of the Status of Privileged Electricity Producer, Ministry of Economy, Labour and Entrepreneurship, Zagreb, 2006
  19. ***, Council Directive 2004/8/EC on the Promotion of Co-Generation Based on Useful Heat Demand in the Internal Energy Market and Amending Directive 92/94/EEC, OJ, L 52/50, 2004
Volume 11, Issue 3, Pages27 -42