Frédéric Delord - Renewable Energies Report definitif - Awex
Frédéric Delord - Renewable Energies Report definitif - Awex Frédéric Delord - Renewable Energies Report definitif - Awex
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<strong>Renewable</strong> Energy in Croatia<br />
<strong>Renewable</strong> energy in Croatia<br />
Frédéric <strong>Delord</strong><br />
Embassy of Belgium - Economic and Commercial Office<br />
February 2011<br />
“You see, we should make use of the forces of nature and should obtain all our power in this way.<br />
Sunshine is a form of energy, wind and sea currents are manifestations of this energy. Do we make<br />
use of them Oh no! We burn forests and coal, like tenants burning down our front door for<br />
heating. We live like wild settlers and not as though these resources belong to us.“<br />
Thomas A. Edison, 1916<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 3
<strong>Renewable</strong> Energy in Croatia<br />
Table of Contents<br />
Croatia in figures..........................................................................5<br />
General figures........................................................................5<br />
Energy figures.........................................................................5<br />
Main state actors in the energy market of Croatia.............................19<br />
Regulations of renewable energy in Europe.....................................29<br />
Regulations of renewable energy in Croatia....................................30<br />
Private investors....................................................................39<br />
Description of renewable energy sources which can be used in Croatia.......46<br />
Links.......................................................................................65<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 4
<strong>Renewable</strong> Energy in Croatia<br />
Croatia in figures<br />
General figures<br />
Land area, km² 56 594<br />
Surface area of territorial sea and interior sea waters,<br />
km²<br />
Length of sea coast line with islands<br />
Land border length<br />
31 067<br />
5 835,3 km<br />
2 028 km<br />
The highest mountain Dinara (1 831 m)<br />
Number of islands<br />
1 185 (47 inhabited)<br />
Population, 2009 mid-year estimate, ‘000 4 429<br />
Population density per km², 2009 78,3<br />
City of Zagreb, population, 2009 mid-year estimate, ‘000 790<br />
Official language<br />
National currency<br />
Croatian<br />
Kuna (HRK)<br />
Energy figures<br />
Croatia has good natural resources for exploitation of renewable energy sources. <strong>Renewable</strong> energy<br />
sources are domestic and their use as a means of improving security of energy supply boosts the<br />
development of domestic production of energy equipment and services, and the achievement of<br />
environmental objectives.<br />
Croatia will maximally stimulate renewable energies but at acceptable social costs of their use.<br />
Therefore, the government has set these strategic objectives:<br />
• The Republic of Croatia will fulfil the obligations as per proposed EU Directive on the<br />
promotion of renewable energy sources on the share of renewable energy sources, including<br />
large hydro, the gross final energy consumption to 20% etc.;<br />
• The Republic of Croatia will meet obligations under European Union Directive on the share of<br />
renewable in final energy consumption in transport in 2020, in the amount of 10%;<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 5
<strong>Renewable</strong> Energy in Croatia<br />
• In 2020, the goal of the Republic of Croatia is to have 35% of electricity production from<br />
renewable energy (including large hydropower).<br />
Electricity production and consumption in Croatia<br />
Pipeline transport in figures<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 6
<strong>Renewable</strong> Energy in Croatia<br />
Energy import and export in Croatia<br />
Climate indicators<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 7
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 8
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 9
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 10
<strong>Renewable</strong> Energy in Croatia<br />
A problem when interpreting data on installed capacities on RES-H is that there are no reliable<br />
statistical data on installed capacities for solar and biomass heating systems. Heat from<br />
geothermal sources includes two methodologies for reporting the values.<br />
The installed heat capacity of solar systems has been estimated according to the surface and<br />
type of collectors (as recommended by the European Solar Thermal Industry Federation (ESTIF),<br />
data from the Energy Institute Hrvoje Požar www.hihp.hr survey on installed capacities until<br />
1998 and data on sales and imports of plate and vacuum solar collectors for period of 1998 –<br />
2009. The data on the heat capacity of heating plants using biomass refer to biomass-fired<br />
industrial facilities and do not contain information on heat capacity of small heating furnaces<br />
and hot water preparation in households.<br />
Professional literature mentions two methodologies of expressing the used geothermal energy:<br />
one for the energy used for space heating only and the other for the energy used for heating<br />
and hot water. The total installed capacities of geothermal sources in 18 locations in use in<br />
Croatia amount to 36.66 MWt when space heating is concerned, and 113.9 MWt when<br />
geothermal energy for space heating and hot water preparation in spas and recreational centres<br />
is concerned.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 11
<strong>Renewable</strong> Energy in Croatia<br />
The installed power capacity of photovoltaic systems differs from the value provided by HROTE<br />
www.hrote.hr as it refers to grid connected systems including autonomous PV systems. The<br />
installed capacity of autonomous PV systems that supply facilities without grid connection<br />
(lighting houses, holiday houses, GSM bases, parking machines etc.) is estimated to 400 kW.<br />
Until the end of 2009, 267 projects have been recorded at the Registry, which represents a 61 %<br />
increase in RES projects within a year: 41.36% are wind power plants followed by small hydro<br />
power plants (24.07%), photovoltaic (14.81%), solid biomass power plants (10.49%) and biogas<br />
power plants (8.64%). In 2009, the first geothermal power plant project has been recorded of<br />
4.71 MW. The total installed capacity of recorded projects is 3 025.87 MW which is a 56.53 %<br />
increase since 2008.<br />
The next five figures present the recorded installed capacity of power plants according to the<br />
each type of RES together with the status of the projects: PEO – preliminary energy approval;<br />
PEOz – preliminary energy approval according to the situation existed; EO – energy approval;<br />
Upis – recording in the Registry of the existing power plant (which does not imply that the plant<br />
has gained the eligible producer status).<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 12
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 13
<strong>Renewable</strong> Energy in Croatia<br />
The next graph shows the incentive prices from the Tariff System to promote production of<br />
electricity from RES, having in mind that the values for incentive prices are obtained by<br />
multiplying the tariff item (C) with the correction factor that depends on the share of domestic<br />
component in the project. The correction factor takes values between 1 (from 60% of domestic<br />
share and more) and 0.93 (for domestic share of 45% and less). In effect, the article 5 of the<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 14
<strong>Renewable</strong> Energy in Croatia<br />
Tariff system, the level of the subsidised price for RES-S is to be corrected for the consumer<br />
price index during the contracted time for selling the electricity.<br />
For cogeneration plants, the tariff items and their corresponding amounts (C) are expressed in<br />
HRK/kWh and shown in the next graph for the delivered electricity for the duration of higher<br />
(HT) and lower (LT) daily tariff systems. The duration of HT and LT is determined by the tariff<br />
system for electricity generation. Electricity must be produced in the cogeneration process in<br />
the manner prescribed by the regulation governing the acquisition of the eligible producer<br />
status. Cogeneration (also combined heat and power, CHP) is the use of a heat engine or a<br />
power station to simultaneously generate both electricity and useful heat.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 15
<strong>Renewable</strong> Energy in Croatia<br />
The following tables show data on paid amounts based on the subsidised prices to the eligible<br />
producers of RES-E according to the technology (table 8.3.5), eligible producer (table 8.3.6) and<br />
liabilities of the operators (table 8.3.7).<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 16
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 17
<strong>Renewable</strong> Energy in Croatia<br />
Croatia does not have actually reliable data which would enable to determine the installed heat<br />
capacities of solar collectors. The next data are derived from estimations given in the table<br />
“RES-E in Croatia in the respect to the 2010 national target share” and assumptions on spatial<br />
distribution, conversion losses and consumer behaviour. Heat generation from both solid and<br />
gaseous biomass includes the generation in industrial heating facilities and heat generation from<br />
fuel wood for heating and hot water preparation in households totalling 14 171 TJ.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 18
<strong>Renewable</strong> Energy in Croatia<br />
The total capacities for liquid biofuels in Croatia have increased in late 2009 to 61 000 tons<br />
biodiesel per year. In 2009, Croatia produced 6 333.2 t of biodiesel, out of which only a small<br />
share ended up on the domestic market. Some 10 percent of the total amount originated from<br />
collected waste cooking oil.<br />
The imports of motor fuels blended with 5 percent v/v of biofuels were 2 520 t of biodiesel and<br />
3 633.3 t of bioethanol or total 0.19 PJ.<br />
For 2009, the net consumption of biofuels in Croatia amounted to 0.295 PicoJoules. This means<br />
that the achieved share of biofuels in total fuels, as defined in the Ordinance on Biofuels<br />
Quality (OG 141/05), is 0.38 percent for 2009.<br />
Main state actors in the energy market of Croatia<br />
The environmental Protection and Energy Efficiency Fund www.fzoeu.hr<br />
One of the Croatian institutions which manages all tenders and all money transfers regarding<br />
energy efficiency and renewable energy sources projects. The Environmental Protection and Energy<br />
Efficiency was established under the provisions of Article 60 Paragraph 5 of the Environmental<br />
Protection Act (Official Gazette no. 82/94 and 128/99) and Article 11 of the Energy Act (Official<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 19
<strong>Renewable</strong> Energy in Croatia<br />
Gazette no. 68/01). The Law on Environmental Protection and Energy Efficiency was published in<br />
the Official Gazette no.107/03, and applies since 01 January 2004. The Fund is a state institution.<br />
The missions of this Fund are :<br />
protecting, preserving and improving the quality of air, soil, water and seas,<br />
□ mitigating the climate change<br />
□ protecting the ozone layer,<br />
remediating the landfill, encouraging avoidance and reduction of waste generation, waste<br />
treatment and utilization of valuable waste,<br />
promoting cleaner production, and avoiding/reducing waste/emissions in the production process,<br />
protecting and conserving the biological and landscape diversity,<br />
implementing the national energy programs,<br />
encouraging the use of renewable energy sources (sun, wind, biomass, etc.)<br />
encouraging sustainable construction,<br />
promoting cleaner transport,<br />
promoting sustainable use of natural resources,<br />
promoting sustainable development of rural areas,<br />
promoting sustainable economic activities and sustainable economic development,<br />
improving the system of information on the state of environmental monitoring and assessment of<br />
the environment and the introduction of environmental management systems,<br />
promoting education, research and development studies, programs, projects and other<br />
activities, including demonstration activities, the performance of the Fund.<br />
The Fund may participate in co-financing of other programs, projects and related activities in the<br />
field of environmental protection and energy efficiency, which are conducted on Croatian<br />
territory, when they are organized and financed by international organizations, financial<br />
institutions/bodies and other legal entities.<br />
The Fund will not call new tenders when a party is directly involved in co-financing and<br />
implementation of programs, projects and related activities regulated by the Law on Environmental<br />
Protection and Energy Efficiency.<br />
By-laws of the Fund shall determine the conditions that must be met by beneficiaries of the Fund,<br />
the conditions and manner of allocation of funds, criteria and benchmarks for evaluating requests<br />
for funds and the Fund's method of monitoring the use of earmarked funds and contractual<br />
obligations between the Fund and beneficiaries of its resources.<br />
For the financing of these programs, projects and related activities of the Fund cooperates with<br />
banks and other financial institutions.<br />
The Fund grants funds to enterprises and individuals to finance the programs, projects and other<br />
activities, determined in accordance with the provisions of the Law on Environmental Protection<br />
and Energy Efficiency, by:<br />
• loans,<br />
• subsidies,<br />
• financial assistance, and donations.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 20
<strong>Renewable</strong> Energy in Croatia<br />
Funds are awarded on the basis of a public tender.<br />
Contact :<br />
Ksaver 208<br />
10 000 Zagreb<br />
Tel : 01/5391 800 Fax : 01/5391 810<br />
kontakt@fzoeu.hr<br />
HEP www.hep.hr<br />
Hrvatska Elektroprivreda (HEP Group) is a national electricity company engaged in electricity<br />
production, transmission and distribution for more than one century, and with heat supply and gas<br />
distribution for the past few decades<br />
HEP Group is organized in the form of a holding company with a number of daughter companies.<br />
The parent company of the Group, HEP d.d., performs the function of HEP Group corporate<br />
management and guarantees the conditions for a secure and reliable electricity supply to<br />
customers.<br />
Within HEP Group there is a clear division (managerial, accounting, legal) of companies which<br />
perform regulated activities (transmission and distribution) from non-regulated ones (generation<br />
and supply).<br />
Contact<br />
Ulica grada Vukovara 37, 10000 Zagreb, Croatia<br />
telephone: +385 1 63 22 111, fax: +385 1 61 70 430<br />
HEP-ODS www.hep.hr/ods<br />
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<strong>Renewable</strong> Energy in Croatia<br />
HEP-ODS is in charge of :<br />
- connecting the producer to the grid<br />
Contact<br />
Ulica grada Vukovara 37, 10000 Zagreb, Croatia<br />
telephone: +385 1 63 22 111, fax: + 385 1 61 70 956<br />
HEP-Obnovljivi izvori energije (HEP <strong>Renewable</strong> Energy Sources) www.hep.hr/oie<br />
HEP OIE is a daughter company of HEP (Hvatska Elektroprivreda). HEP is stated-owned energy<br />
company which produces and distributes electricty. HEP OIE was founded in 2006 for the<br />
purpose of grouping and supporting renewable energy projects. The actual CEO is Goran Slipac.<br />
HEP OIE is in charge of :<br />
- electricity production from renewable energy sources,<br />
- sale of electricity from renewable energy sources and other products,<br />
- research and development, designing, financing, construction and managment<br />
of renewable energy projects and plants.<br />
- joint projects, project and financial management<br />
- marketing and promotion and environmental services related to renewable<br />
energy sources.<br />
HEP OIE works with domestic and foreign partners in renewable energy projects. The company<br />
provides :<br />
-technical cooperation : sitting, technical description, equipment, construction,<br />
-financial cooperation : co-finance profitable project of partners.<br />
But we should notice that, in fact, HEP OIE has investments priorities.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 22
<strong>Renewable</strong> Energy in Croatia<br />
Wind power plants have the highest priority. The reason is the highly advanced technology and<br />
also the knowledge that European and international countries accumulated in this field. We can<br />
also add the fact that Croatia has a very good wind potential and a relatively high installed<br />
capacity.<br />
In the second place : biomass power plants. This renewable energy has a big potential because<br />
it is currently not used in Croatia. We talk about waste, wood industry waste, agriculture waste<br />
and others. In addition, Croatia has a relatively high installed capacity and this energy permits<br />
possibilities for planning of resources.<br />
Thirdly, small hydro power plants. This is a proven technology which HEP has a vast knowledge<br />
about.<br />
In the fourth place, geothermal power plants. Croatia has an above-average geothermal<br />
potential on European scale. But, relatively high tariffs (1.26kn/kWh) are set for electricity<br />
production from such sources, it is an expensive technology, and the risks are higher, compared<br />
to other renewable technology sources.<br />
Last place, photovoltaic power plants. The essential reason is the non-centralized production<br />
and in addition, the Croatian regulation limiting to 1 MW the total installed capacity in Croatia.<br />
Let us list the important criteria when you submit a renewable power plant project to HEP OIE.<br />
First of all, the company assesses the resources. Their availability, securing, price, quality and<br />
the climate conditions they require.<br />
After that, HEP OIE evaluates the construction possibilities. Their criteria are: technical<br />
specifications, suppliers and guarantees.<br />
Following that, the company checks technical and regulatory requirements like: contracts with<br />
network operator, network connectivity and support of regulatory bodies.<br />
HEP OIE will also check you as a partner. It means they will look at your background with similar<br />
projects, your financial information and also the management team and the staff.<br />
Fifth step, assessments of financial resources. Project financing, cash flow sensitivity and your<br />
liquidity and solvency.<br />
Next step is the review of legal frameworks: licenses, contracts and compliance with physical<br />
plans.<br />
HEP OIE will also evaluate the social and environmental impact of your project.<br />
Cooperation with HEP OIE can be very useful because of the synergy with HEP (main company).<br />
But also they have experience in power projects construction. HEP OIE is also a stable company<br />
with necessary funds.<br />
If an investor want to introduce is project to HEP, he should send an email to hep-oie@hep.hr .<br />
The mail should content:<br />
- the description of the investor with his reference(s) on a similar projet;<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 23
<strong>Renewable</strong> Energy in Croatia<br />
- site description;<br />
- description of the technology to be used;<br />
- installed capacity and expected production:<br />
- expected investments level;<br />
- expected points of connection to the electric network and<br />
- any state or local governments approval.<br />
Contact<br />
Ulica Grada Vukovara 37<br />
10 000 Zagreb, Croatie<br />
Tel : +385 1 63 22 171/Fax : +385 1 63 22 531<br />
HEP ESCO d.o.o www.hep.hr/esco<br />
HEP ESCO (Energy Service Company) is another of HEP’s daughter companies. This company<br />
promotes energy efficiency and use of renewable energy sources in non-residential buildings. Green<br />
Building is a voluntary program of the European Commission initiated in 2005, which provides<br />
guidelines to owners and users of non-residential buildings for the improvement in energy<br />
efficiency and the use of renewable energy sources. In December 2007, a second phase of the<br />
project – GreenBuildingplus – began and for the continuation of the program, the Energy Institute<br />
Hrvoje Požar was appointed as one of ten partners and a national contact center for<br />
GreenBuildingplus. The objective of the program is to improve the efficiency of energy use, to<br />
promote and use renewable energy sources, to reduce the use of fossil fuels, to protect the<br />
environment by reducing CO2 emissions, and to increase the security of energy supply. Any<br />
company or organization which will contribute to the objectives of GreenBuilding program can<br />
participate.<br />
Contact<br />
Ulica grada Vukovara 37, 10000 Zagreb, Croatia<br />
telephone: +385 1 63 22 923, fax: +385 1 63 22 459<br />
Croatian Energy Regulatory Agency (HERA) www.hera.hr<br />
HERA is an autonomous, independent and non-profit public institution.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 24
<strong>Renewable</strong> Energy in Croatia<br />
HERA's obligations, authorities and responsibilities are based on the Act on the Regulation of<br />
Energy Activities, the Energy Act and other acts regulating specific energy activities. Danijel<br />
Žamboki is the current president of HERA and Željko Rajić is the director of the electric<br />
division. It is a state institution. The founder of HERA is the Republic of Croatia and the<br />
founding rights are exercised by the Government of the Republic of Croatia. HERA is responsible<br />
for its work to the Croatian Parliament.<br />
HERA performs the following activities:<br />
- Electricity market regulation<br />
- Granting of the status of eligible electricity producer<br />
- Providing opinion to the Ministry:<br />
- on the tariff system for production of electric power from renewable<br />
energy sources and cogeneration, on compensation for providing<br />
incentives for renewable sources and cogeneration and on compensation<br />
for stranded costs.<br />
- on the proposed amounts of compensation for organization of the<br />
electric energy market.<br />
- on general conditions of energy supply.<br />
- on procedures and criteria for approval and construction of generating<br />
Facilities.<br />
- Supervising application of all tariff systems and prescribed compensations<br />
-Organization and carrying out of tendering procedures for construction of generating<br />
facilities<br />
- Providing opinion or consent to draft regulations in the energy sector for which HERA is<br />
authorized according to the Act on the Regulation of Energy Activities and other legislation<br />
regulating particular energy activities.<br />
- Supervision of energy undertakings, pursuant to the provisions of The Energy Act and<br />
other legislation regulating particular energy activities.<br />
- Supervising quality of services provided by energy undertakings.<br />
- Publishing information and data on energy efficiency and the use of energy.<br />
- Participating in the energy policy design.<br />
- Cooperating with the ministries and competent inspection services in accordance with<br />
special laws.<br />
- Collecting and processing of data related to the activities of energy operators.<br />
- Submitting requests for misdemeanor offense proceedings.<br />
- Settling disputes related to carrying out of regulated energy activities, in particular<br />
with regards to the following:<br />
- Rejection of connection to the transmission network/transport system<br />
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<strong>Renewable</strong> Energy in Croatia<br />
- Determination of compensation for connection and usage of the transmission<br />
network/transport system.<br />
HERA sets out the methodologies for:<br />
● tariff systems, without the amounts of tariff items;<br />
● determination of the compensation for the connection to the transmission and<br />
distribution networks, and for increase in connected load;<br />
● provision of energy balancing services in the electric power system;<br />
● provision of natural gas balancing services in the gas pipeline system;<br />
● access to natural gas storage, quantity of gas in the pipelines and other ancillary services<br />
in the gas pipeline system.<br />
HERA issues:<br />
● Licenses for carrying out energy activities, temporarily and permanently revoking of<br />
these licenses;<br />
● Rulings on granting the status of eligible producers, , temporarily and permanently<br />
revoking of these rulings.<br />
HERA performs also the following activities:<br />
● Taking decisions on invitations to tenders and selecting the most advantageous bidder for<br />
construction of production facilities up to 50 MW, in line with the Article 10, Electricity<br />
Market Act (“Official Gazette”, No. 177/04) and<br />
● Submitting proposals to the Government of the Republic of Croatia on invitation to<br />
tenders and selecting the most advantageous bidder for building production facilities of<br />
50 MW and higher, in line with the Article 10, Paragraph 1 of the Electricity market Act<br />
(“Official Gazette”, No. 177/04).<br />
HERA provides:<br />
● Opinions to the Ministry on the proposal of the amounts of tariff items;<br />
● Opinions to the Government of the Republic of Croatia on the proposal of the amount of<br />
compensation for connection to the network and increase in connected power;<br />
● Consent to energy undertakings for construction of direct lines.<br />
Contact<br />
Ulica grada Vukovara 14<br />
10 000 Zagreb<br />
Croatia<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Croatian Energy Market Operator (HROTE) www.hrote.hr<br />
HROTE is a state institution supervised by HERA. The public institution performs activities of<br />
organizing the electricity market as a public service. His goal is to integrate the national energy<br />
market to the European.<br />
HROTE is in charge of raising the public awareness of environmental protection through the<br />
promotion of energy efficiency and the use of renewable energy sources. Furthermore, HROTE<br />
is in charge of :<br />
- electricity market operation<br />
- contracting for electricity purchase<br />
- collecting and distributing of incentives<br />
Contact<br />
Miramarska 23<br />
10 000 Zagreb, Croatia<br />
+385 1 63 06 700 / Fax : +385 1 63 06 777<br />
Croatian Environment Agency www.azo.hr<br />
The Croatian Environment Agency is an independent public institution established by a decision of<br />
the government of the Republic of Croatia to collect, integrate, and process environmental<br />
data. The agency is supervising the effects of renewable energy projects on environment.<br />
Contact<br />
Trg maršala Tita 8 10 000 Zagreb<br />
Tel: +385 (0)1 48 86 840<br />
Fax: + 385 (0)1 48 26 173<br />
email: info@azo.hr<br />
Energy Institute Hrvoje Požar www.eihp.hr<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 27
<strong>Renewable</strong> Energy in Croatia<br />
In 1993, Croatian Government founded this institute. It is a non-profit institution whose goals<br />
are to provide expert and scientific support to:<br />
-the strategic development of the Croatian energy system and its sub-systems -<br />
the processes of legislative reform and development<br />
-the advancement of economic relations, and the development of relevant institutions.<br />
The Institute’s main tasks include:<br />
-expert and scientific research in the field of energy for state, regional and<br />
local administration and energy companies;<br />
-expertise and analyses for the Croatian Energy Regulatory Council;<br />
-management of National Energy Programmes and pilot projects ;<br />
-organisation of seminars, workshops and courses;<br />
-publication of editions, periodicals and other forms of communication with<br />
experts, scientists and the general public, especially via Internet.<br />
The Institute carries out its mission in cooperation with numerous scientists and institutions<br />
from Croatia and abroad.<br />
Contact<br />
Savska cesta 163,<br />
P.B. 141, 10001 Zagreb, Croatia<br />
Switchboard: ++385 1 6326-100<br />
Phone: ++385 1 6040-588;<br />
Fax: ++385 1 6040-599<br />
e-mail: eihp@eihp.hr<br />
URL: http://www.eihp.hr<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 28
<strong>Renewable</strong> Energy in Croatia<br />
Regulations of renewable energy<br />
Regulations of renewable energy in Europe<br />
The Kyoto Protocol<br />
The Kyoto Protocol is an international agreement linked to the United Nations Framework<br />
Convention on Climate Change (UNFCCC), aimed at fighting global warming. The UNFCCC is an<br />
international environmental treaty with the goal of achieving "stabilization of greenhouse gas<br />
concentrations in the atmosphere at a level that would prevent dangerous anthropogenic<br />
interference with the climate system."<br />
The major distinction between the Protocol and the Convention is that while the Convention<br />
encouraged industrialised countries to stabilize GHG emissions, the Protocol commits them to<br />
do so.<br />
Under the Protocol, 37 countries (Annex I countries) commit themselves to a reduction of four<br />
greenhouse gases (GHG) (carbon dioxide, methane, nitrous oxide, sulphur hexafluoride) and two<br />
groups of gases (hydrofluorocarbons and perfluorocarbons) produced by them, and all member<br />
countries give general commitments. This 37 countries agreed to reduce their collective<br />
greenhouse gas emissions by 5.2% from the 1990 level. Emission limits do not include emissions<br />
by international aviation and shipping, but are in addition to the industrial gases,<br />
chlorofluorocarbons, or CFCs, which are dealt with under the 1987 Montreal Protocol on<br />
Substances that Deplete the Ozone Layer.<br />
Recognizing that developed countries are principally responsible for the current high levels of<br />
GHG emissions in the atmosphere as a result of more than 150 years of industrial activity, the<br />
Protocol places a heavier burden on developed nations under the principle of “common but<br />
differentiated responsibilities.”<br />
The Protocol allows for several "flexible mechanisms", such as emissions trading, the clean<br />
development mechanism (CDM) and joint implementation to allow Annex I countries to meet<br />
their GHG emission limitations by purchasing GHG emission reductions credits from elsewhere,<br />
through financial exchanges, projects that reduce emissions in non-Annex I countries, from<br />
other Annex I countries, or from annex I countries with excess allowances.<br />
The Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force<br />
on 16 February 2005. The detailed rules for the implementation of the Protocol were adopted<br />
at COP 7 in Marrakesh in 2001, and are called the “Marrakesh Accords.”<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 29
<strong>Renewable</strong> Energy in Croatia<br />
As an Annex I country of the UN Framework Convention on Climate Change and a country that<br />
has pledged in the Annex B of the Kyoto Protocol to reduce its GHG emissions by 5% (Instead of<br />
31.1 million tons of carbon dioxide emissions per year, the limit for Croatia - as a transitional<br />
country whose economy is still recovering after the war in the 1990s, was set at 34.6 million<br />
tons), Croatia will have to consider a new energy strategy. Compared to the energy<br />
consumption collapse in some transitional countries, Croatia has passed through a relatively<br />
short-term reduction of GHG emissions since 1990 because of higher energy efficiency of its<br />
pretransition economy. Several scenarios of power generation are compared from the point of<br />
view of GHG emissions. The cost-effective scenario expects a mixture of coal and gas fired<br />
power plants to be built to satisfy the new demand and to replace the old power plants that are<br />
being decommissioned. More Kyoto friendly scenario envisages forcing the compliance with the<br />
Protocol with measures only in power generation sector by the construction of mainly zero<br />
emission generating capacity in the future, while decommissioning the old plants as planned,<br />
and is compared to the others from the GHG emissions point of view. The conclusion is that by<br />
measures tackling only power generation, it will not be possible to keep GHG emission under<br />
the Kyoto target level. The case of including the emissions from Croatian owned power plants in<br />
former Yugoslavia is also discussed.<br />
Regulations of renewable energy in Croatia<br />
Since 2008, the Croatian electricity market is fully liberalized. As results, HEP<br />
(http://www.hep.hr) doesn’t have the obligation to purchase electricity from renewable energy<br />
sources. This is the responsibility of HROTE (http://www.hrote.hr).<br />
Eligible producers generating electricity from renewable sources, supply it to the transmission<br />
or distribution system, depending on the voltage level they are connected to. The invoice for<br />
the electricity supplied is issued to HROTE which pays such producers accordingly once a month<br />
for the electricity supplied in accordance with the tariff system in force.<br />
The scheme below shows us the incentive system in Croatia.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 30
<strong>Renewable</strong> Energy in Croatia<br />
Opskrba (supplier) takes out the <strong>Renewable</strong> Energy Sources incentive charge and forwards it to<br />
HROTE. HROTE collects the incentive charge and distributes it to eligible RES producers. All<br />
customers pay to Opskrba both for electricity consumed and a RES incentive charge.<br />
According to the Ordinance on Fees for Incentivizing Electricity Production from <strong>Renewable</strong> Energy<br />
Sources and Cogeneration (Official Gazette 33/2007), that was passed by the Government of<br />
Republic of Croatia, the incentive fee is collected from all electricity customers in Croatia starting<br />
from 1 July 2007.<br />
The collected fees are used by Croatian Energy Market Operator for payment of incentive price to<br />
eligible producers for electricity delivered to the power system, in compliance with the Tariff<br />
System for the Production of Electricity from <strong>Renewable</strong> Energy Sources and Cogeneration (Official<br />
Gazette 33/2007).<br />
The incentive fee is collected through usual electricity payments, hence from tariff customers<br />
through money order of HEP-Operator distribucijskog sustava d.o.o. (by specific distribution area)<br />
and from eligible customers by their suppliers.<br />
The amount on electricity bills due to incentive fee for year 2011 is 0.005 kn per kilowatt-hour<br />
(kn/kWh) + VAT, according to the Ordinance on the Amendments to the Ordinance on Fees for<br />
Incentivizing Electricity Production from <strong>Renewable</strong> Energy Sources and Cogeneration (Official<br />
Gazette 8/2011). Every customer can easily calculate the amount he/she pays for stimulating<br />
electricity production from renewable energy sources and cogeneration by multiplying the<br />
electricity consumed (kWh) and the incentive fee (kn/kWh).<br />
The next scheme shows us the collection and distribution of incentives for RESCO (<strong>Renewable</strong><br />
Energy Service Company) electricity production.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 31
<strong>Renewable</strong> Energy in Croatia<br />
Recently, Croatia introduced feed-in tariffs as an incentive measure for electricity production<br />
from renewable sources. For producers of electricity from renewable sources to qualify for<br />
incentive tariffs, they should obtain the status of eligible producer. The decision to grant the<br />
status is issued by the Croatian Energy Regulatory Agency (HERA). Electricity producers<br />
generating electricity from renewable sources and having the status of eligible producers are<br />
paid an incentive price in kn/kWh for the electricity supplied. Under the Tariff System for the<br />
Production of Electricity from <strong>Renewable</strong> Energy Sources and Cogeneration, purchase contracts<br />
incorporating the incentive price are signed with HROTE for a period of 12 years. The feed-in<br />
tariffs are divided according to plant capacity and the limit is 1 MW. The amount of tariffs also<br />
depends on the share of the domestic component in a project and on the annual price<br />
adjustment the details of which can be found in the Tariff System for Electricity Production<br />
from <strong>Renewable</strong> Sources and Cogeneration.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 32
<strong>Renewable</strong> Energy in Croatia<br />
The first step towards gaining the eligible producer status of RES-E and feed-in tariff is<br />
obtaining the Preliminary energy approval for building the plant. The approval allows recording<br />
at the Registry of RES and co-generation and eligible producers (Registar OIEiKPP -<br />
http://oie.mingorp.hr/default.aspxid=24-), settles the legal proprietary relationship at the<br />
area of Republic of Croatia and, depending on the project (i.e wind), one can start evaluating<br />
the potential. The Ministry of Economy, Labour and Entrepreneurship is responsible for the<br />
maintenance of the registry.<br />
An eligible producer is an energy entity producing both electrical and thermal energy in a single<br />
production facility, using waste or renewable energy sources in an economically appropriate<br />
manner harmonized with environmental protection.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
HEP–Transmission System Operator and HEP–Distribution SystemsOperator will take the entire<br />
amount of generated electricity from any eligible producer. The energy entity responsible for<br />
electricity supply shall off-take a minimal share of electricity generated by incentivized eligible<br />
producers in accordance with the conditions prescribed in the Ordinance on a Minimal Share of<br />
Incentivized Electricity Production from <strong>Renewable</strong> Energy Sources and Cogeneration.<br />
The status of eligible producer is acquired by the decision of the Croatian Energy Regulatory<br />
Agency in accordance with the Rules on Acquiring the Status of Electricity Eligible Producer<br />
prescribed by the Minister of Economy, Labour and Entrepreneurship.<br />
An eligible producer, apart from hydropower plants larger than 10 MW, can acquire the right to the<br />
incentive price prescribed by the Tariff System for the Production of Electricity from <strong>Renewable</strong><br />
Energy Sources and Cogeneration.<br />
The next scheme show us are to acquire the status of eligible producer.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 34
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 35
<strong>Renewable</strong> Energy in Croatia<br />
The next scheme will show us the system of incentives for eligible producers<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 36
<strong>Renewable</strong> Energy in Croatia<br />
The next scheme will show us the eligible producers’ contractual obligations within the system<br />
of incentives<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 37
<strong>Renewable</strong> Energy in Croatia<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 38
<strong>Renewable</strong> Energy in Croatia<br />
Private investors<br />
Adria Wind Power<br />
Adria Wind Power is a wind power producer in Croatia since 1999. The company is an eligible<br />
producer who signed the Electricity Purchase Contract with HROTE. Her power plants are<br />
incentivized. Adria Wind Power planned capacity is 5 950 kW.<br />
Vjetroelektrana TrTar-Krtolin d.o.o<br />
VJETROELEKTRANA TrTar-Krtolin is a wind power producer in Croatia founded in 2002. The<br />
owner is WPD International GmbH, Enersys Gesellschaft fur Regenerative Energien mbH. The<br />
company is an eligible producer who signed the Electricity Purchase Contract with HROTE. Her<br />
power plants are incentivized. Their planned capacity is 11,200 kW. The name of the power<br />
plant: VJETROELEKTRANA TrTar-Krtolin. The power plant has been working since 2006 and is<br />
located on the crest of the hill in TrTar-Krtolin (Šibenik).<br />
Končar-Obnovljivi Izori d.o.o<br />
Končar-Obnovljivi Izori is a wind power company owned by Končar. The company was born in<br />
2008. They are the owners of the wind power plant in Pometeno Brdo (near the town of SPLIT)<br />
for a planned capacity of 1 000 kW. The company is an eligible producer who signed the<br />
Electricity Purchase Contract with HROTE. Her power plants are incentivized.<br />
Končar plans to add 15 more wind turbines in the same location for a total of 17,500 kW<br />
planned capacity. The Electricity Purchase Contract is signed with HROTE but the wind turbines<br />
are not connected to the grid and are not incentivized.<br />
Vjetroelektrana Orlice d.o.o<br />
Vjetroelektrana ORLICE d.o.o has been a wind power company since 2006. It is also the name of<br />
their power plant which has a planned capacity of 9 600 kW. The company is an eligible<br />
producer who signed the Electricity Purchase Contract with HROTE. Her power plants are<br />
incentivized.<br />
Vjetroelektrana Crno Brdo d.o.o<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 39
<strong>Renewable</strong> Energy in Croatia<br />
Vjetroelektrana CRNO BRDO d.o.o has CRNO BRDO wind power plants. 9 100 kW planned<br />
activity. No incentives but a contract with HROTE is signed.<br />
Selan d.o.o<br />
Selan has been a wind power producer since 2006. The company is the owner of the power plant<br />
Vjetroelektrana Vrataruša (42 000 kW planned capacity). This power plant is located near Senj<br />
Vrataruša and has 14 wind turbines. The CEO is Ivan Hrelja. Selan is an eligible producer who<br />
signed the Electricity Purchase Contract with HROTE. Her power plants are incentivized. A<br />
German company is the partner of the Croatian company (50% shares): Wallenborn. We should<br />
notice the total investments on this project: 62 millions euro (1.7 millions HRK from the fund<br />
for energy efficiency).<br />
Velika Popina d.o.o<br />
Velika Popina is a daughter company of Dalekovod. Dalekovod is an eligible producer who signed<br />
the Electricity Purchase Contract with HROTE. Her power plants are incentivized. They are the<br />
owner of the wind farm Vjetroelektrana ZD6 for a planned capacity of 9 000 kW. It is the first<br />
wind farm project without foreign investors but only one local. The value of electrical works in<br />
this project amounts to 1,050,000.00 EUR. The wind power plant is located near Gračac and<br />
consists of 4 wind turbines with a nominal power of 2.3 MW. The turbines that will be installed<br />
are manufactured by Siemens. The total installed power of the wind farm will amount to 9.2<br />
MW, and it is expected to produce an average of 26.000.000 kWh a year. This is the first in a<br />
series of many projects dealing with renewable-energy sources currently in development at<br />
Dalekovod d.d.<br />
EKO d.o.o.<br />
EKO d.o.o (a waste management company in Zadar) is the owner of the two wind power plants in ZADAR<br />
for a total planned capacity of 36,000 kW. Actually, they signed the Electricity Purchase Contract with<br />
HROTE but the two power plants are not connected to the grid and are not incentivized.<br />
Mariomont d.o.o & Južni Jadran d.o.o<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 40
<strong>Renewable</strong> Energy in Croatia<br />
Mariomont and Južni Jadran are Zagreb-based companies which sell solar photovoltaic system<br />
for electricity production. Anđelka Majdandžić is the director of Mariomont. Both are eligible<br />
producers who signed the Electricity Purchase Contract with HROTE. These power plants are<br />
incentivized. Their planned capacity is 7.14 kW & 9 kW.<br />
Kuća Stilin d.o.o<br />
Kuća Stilin is a group of companes, whioch are eligible producers and signed the Electricity<br />
Purchase Contract with HROTE. Their power plants are incentivized and their planned capacity<br />
is 30 kW.<br />
Rok Vincetić<br />
The company is an eligible producer who signed the Electricity Purchase Contract with HROTE<br />
selling photovoltaic system. Her power plants are incentivized. Their planned capacity is 6.72<br />
kW.<br />
Mataković obrt za proizvodnju el. energije & Mataković stojna obrada metala<br />
These two companies are eligible producers who signed the Electricity Purchase Contract with<br />
HROTE selling photovoltaic system. Their power plants are incentivized. Their planned capacity<br />
is 30 kW.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 41
<strong>Renewable</strong> Energy in Croatia<br />
Solektra d.o.o<br />
This company signed with HROTE an Electricity Purchase Contract. The planned activity of this<br />
company is about 29.95 kW. One of the power plants of this company is located in Križoptje<br />
(Croatia). This company was born in 2010. They planned to construct four more power plants in<br />
Drag. Selo, Vukanovec (x2) and Križoptje.<br />
Solvis d.o.o<br />
Solvis is a Croatian manufacturing and engineering company based in Brezje Commercial Zone<br />
(Varaždin). They manufacture photovoltaic modules using crystalline silicon technology. The<br />
company is an eligible producer who signed the Electricity Purchase Contract with HROTE but<br />
some power plants have not been connected to the grid and they are not incentivized.<br />
Grad Orahovica<br />
This city obtained permits and agreements for photovoltaic power production. But also they<br />
signed with HROTE an agreement. HROTE will purchase the electricity produce. The<br />
planned capacity is 500 kW. The power plant name is Sunćana Elektrana Orahovica 1. For the<br />
moment, the city do not have partner on this project.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 42
<strong>Renewable</strong> Energy in Croatia<br />
Univerzal d.o.o<br />
Univerzal is a Varaždin-based company. The speciality of this company is the recycling of metal<br />
remains and traffic of secondary raw materials, collecting and storing non-hazardous and<br />
hazardous waste. The September 22th 2010, the company became an eligible producer and<br />
signed the Electricity Purchase Contract with HROTE. Her power plant is incentivized. They<br />
realize solid biomass. The name of the power plant is Energana Varaždin with a planned<br />
capacity of 2,740 kW.<br />
Strizivojna Hrast d.o.o<br />
Strizivojna Hrast d.o.o. is in the final stages of building a cogeneration plant and thus will<br />
become the first owner of a biomass power plant in Croatia. The value of this investment is 15<br />
million €. The planned activity is about 3,000 kW. HROTE decided to sign an Electricity Purchase<br />
Contract.<br />
PZ OSATINA-Semeljci & Bovis d.o.o<br />
PZ Osatina is an agriculture cooperative. With more than 3,000 cows, they produce electricity<br />
and since May 2009, this farm is an eligible producer and signed the Electricity Purchase<br />
Contract with HROTE. Her power plant is incentivized. The planned capacity is 1,000 kW. It is a<br />
Biogas from agricultural (corn) crops and organic waste from agriculture and food-processing<br />
industry. Some farms of the cooperative have not been connected to the grid and are not<br />
incentivized (Tomašanci).<br />
EnviTec Biogas<br />
EnviTec Biogas is a German company. In the industrial zone of Janjevci Miholjac, they plan to<br />
produce 2,000 kW of electricity from biogas. They will hire 10 people for a successful project.<br />
Building permit was received and the company also signed for HROTE an Electricity Purchase<br />
Contract.<br />
Termoplin d.d<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 43
<strong>Renewable</strong> Energy in Croatia<br />
Termoplin is a Varaždin-based company. She is an eligible producer and signed the Electricity<br />
Purchase Contract with HROTE. Her power plant (cogeneration technology) is incentivized. The<br />
planned capacity is 33 kW.<br />
Sladorana d.d<br />
In September 2010, Sladorana became an eligible producer and signed the Electricity Purchase Contract<br />
with HROTE. Her power plant (cogeneration technology) is incentivized. The planned capacity is<br />
10,000 kW.<br />
HSUSE<br />
Created in 2004, HSUSE (Croatian Association for Solar Energy) is in Zagreb. The statutes are based<br />
on Article 11 Law on associations. Ph.D. Ljubomir Majdandžić is the president of the Association.<br />
The objectives of the Association are<br />
-Promote use of solar energy at the local, regional and global levels.<br />
-Establish a data bank of all installed projects that use solar energy with emphasis on the<br />
ecological contribution.<br />
-Actively participate in all projects that use renewable energy sources.<br />
To achieve the above objectives the Association will use the following activities:<br />
-education and counselling on the use of solar energy by organizing courses, workshops,<br />
panel discussions, seminars, conferences and other meetings, and through the media,<br />
-cooperation with domestic and international institutions regarding the use of solar energy,<br />
-link between business, research institutions, local communities, government bodies and<br />
other entities on projects that use solar energy,<br />
-promotion and use of other renewable energy sources, energy efficiency and rational use of<br />
energy and other technologies and measures that contribute to sustainable development and<br />
reducing environmental pollution,<br />
The association will also use other media (internet sites, periodicals, newsletters, posters, etc.) in<br />
accordance with the regulations on public information and publishing activities.<br />
Contact :<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 44
<strong>Renewable</strong> Energy in Croatia<br />
J. Kavanjina 14 J. Kavanjina 14 10090 Zagreb 10090 Zagreb<br />
Tel.: 00385 1 38 88 917 / Fax: 00 385 1 38 88 918<br />
e-mail: hsuse@hsuse.hr web: www.hsuse.hr<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 45
<strong>Renewable</strong> Energy in Croatia<br />
Description of renewable energy sources which can be used<br />
in Croatia.<br />
We shall first talk about advantages and disadvantages of renewable energy sources.<br />
Advantages:<br />
- Less fuel imports : sun and wind do not have to be imported like coal, gas or oil. In<br />
addition, the use of energy renewable sources permits the diversification of energy sources.<br />
- Employment<br />
- Environmental protection<br />
- Using ecological resources<br />
- Decreasing GHG emissions<br />
- Developing rural areas: most of the time, the RES power plants are not in urban areas.<br />
As a result, they help to hire people in rural areas. In addition, transport routes and access<br />
roads are built and open up the local population. Last but not leats, a huge benefit is the<br />
monetary compensation the power plant’s owner is obligated to pay to the local community.<br />
Disadvantages:<br />
- Volatility of sources: <strong>Renewable</strong> energy sources are by their nature volatile and<br />
unpredictable. For example, it is not possible to predict with complete certainty the<br />
intensity of a wind or solar radiation in the short term or whether enough rain will fall to make<br />
river flows enough for hydroelectric production or alike. By the way, there has to be a sufficient<br />
reserve in the system of instantly available installed capacity capable of covering for the<br />
shortage caused by a renewable source going out of operation (e.g. a wind power plant cannot<br />
operate when there is no wind). Further, the power grid in a particular location can only<br />
receive a certain amount of electricity without risking to be overloaded and jeopardize the<br />
system stability. The greatest difficulties in feeding the grid occur with wind power plants,<br />
which are therefore limited to the power acceptable for the grid and for the secure and stable<br />
operation of the whole system.<br />
- Low efficiency : The most efficient technology for electricity production is the<br />
technology of hydro power plants, where about 80 % of water power is converted into<br />
electricity.<br />
One of the frequently mentioned disadvantages of renewable energy sources is their low power<br />
density. The term is generally defined as the ratio of installed capacity (in MW) or energy<br />
production (in GWh) to the area (in m2) occupied by the power plant. By definition, power<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 46
<strong>Renewable</strong> Energy in Croatia<br />
density increases with higher installed capacity or energy output and with lower area occupied<br />
by the power plant. Also, due to natural changes in wind intensity or solar radiation, renewable<br />
energy sources generally operate fewer hours at full capacity.<br />
- High price : Power projects in general have a relatively high construction cost<br />
compared with other construction projects such as residential or business buildings.<br />
- This is due to their specific purpose and high security requirements.<br />
High construction cost:<br />
● For a renewable energy plant of a higher capacity, the construction cost per kW is lower<br />
than the construction cost of a lower capacity plant.<br />
● The most expensive technologies per kW for renewable sources are those that use tidal<br />
waves, due to their special location (everything is situated in water), followed by<br />
photovoltaic systems due to the complex construction of solar panels ( high purity<br />
requirements for building material, special requirements for temperature, moisture,<br />
etc.) and geothermal plants due to deep drills.<br />
In comparison, the most expensive conventional technology per kW of installed capacity is the<br />
nuclear technology, due to very high security requirements.<br />
High cost of electricity production:<br />
● The construction cost does not include the cost of the raw material (fuel) used to<br />
generate electricity nor the cost of operation and maintenance of the plant, which are<br />
very important in arriving at the cost of a plant’s electricity production.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 47
<strong>Renewable</strong> Energy in Croatia<br />
● The production cost includes all of these factors as well as the construction cost and is<br />
usually expressed in a particular currency per kWh (e.g. HRK/kWh).<br />
● A nuclear power plant is the most expensive to build but it has the lowest production<br />
cost because it uses the least expensive fuel and generates large amounts of electricity,<br />
which lowers the cost per kWh.<br />
● For renewable energy, a source may be free of cost, but the high construction cost and<br />
the low number of annual operating hours cause high electricity prices.<br />
However, all of the constraints and difficulties can be overcome by performing a careful site<br />
selection, measurements and studies, proper and professional selection of equipment, and by<br />
using incentive prices for purchase of electricity from renewable sources (applied by Croatia<br />
since recently) and good planning.<br />
Wind Power<br />
The first wind farm in Croatia was installed on the island of Pag the August 19th 2004. The total<br />
amount of wind power plants which are incentives by HROTE is 78,750 kW -planned capacity- (plus<br />
62,600 kw which are not incentivize but purchase by HROTE). It is expected that the installed<br />
capacity of wind power in Croatia in 2020 will amount to 1200 MW. The dynamics of the<br />
construction of wind farms will be determined in the Strategy Implementation Programme,<br />
depending on the control capabilities of Croatian power system, able to balance the power system<br />
to open the domestic electricity market, the ability of domestic industry and other operations to<br />
participate in building a wind farm and the available budget for incentives.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Wind farms are a cost affordable renewable source for electricity generation. The investor’s<br />
interest is high, which contributes to the regulated legal framework and in particular, good<br />
guaranteed purchase price and maturity of the contract.<br />
HEP-OTS has set the limit of 360 MW installed capacity of wind power plants to be safely included<br />
in the Croatian power system.<br />
Pag island example<br />
The wind power installed capacity in PAG is 5950 kW. The name of this project is MVE Flat one.<br />
In this place, strong winds greater than 40 meters per second are frequent. As a consequence,<br />
Adria Wind Power chose the Danish company Vestas (www.vestas.com) for the wind turbine. As<br />
the overall equipment was previously manufactured at the plant, the assembly took only three<br />
days. In two days, the teams carried out mechanical assembly, in the third they combined<br />
power and control cables.<br />
Plan of the wind turbine use MVE Flat 1 farm<br />
The construction of this farm had three phases. For a start, they excavated and laid<br />
foundations. Afetrwards, they dug the foundations with depth and dimensions of 2.5 meters<br />
11.5x11.5 meters which are then aligned and reinforced with 19 tons of steel. A total of 170<br />
cubic meters of concrete was used to secure the foundations.<br />
Embassy of Belgium - Economic and Commercial Office - February 2011 49
<strong>Renewable</strong> Energy in Croatia<br />
After workers built a ring weighs 4.5 tons, which serves as the base tower. Steel-reinforced<br />
foundations tend to 483 tons, and the overall design weight is 850 tons.<br />
Secondly came the excavation and the installation of cables. On the rocky soil are excavated<br />
channels where 4 500 meters of cable of 3x185 mm square and 3 800 meters of optical fibre<br />
cable were placed. In the ground, workers built a place for the transformer where the<br />
electricity produced by the wind turbine is transformed for the distribution network. From the<br />
site of wind electricity, the electricity produced is submitted to the Zadar electric distribution<br />
area.<br />
Thirdly came transportation. Wind power is supplied fully factory tested and equipped with all<br />
necessary equipment for power generation, automatic control, and with all the protective<br />
functions for fully autonomous operation.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
The tower is composed of two segments of the overall height of 47 m: The first segment is 23 m<br />
high, and another 24 m.<br />
Fourthly was the assembly of the wind turbine. With two cranes for installation, one of which is<br />
400, and another 60 tonnes, there is a body pillar. The total weight is 51 ton, the diameter at<br />
the bottom of 3.3 meters, and on top of pillars 2.2 meters. After you set the body pillars, raises<br />
the head wind. Mounting the rotor blades to Glavicine is done on the ground. They are made of<br />
fiberglass, are 25.3 meters long, and no beds tend to 1.9 tons. The rotor has 10 tons; its<br />
diameter is 52 meters, a surface treatment 2124 square meters. On Glavicine three flanges<br />
combine blades, and around it raises the plastic sheathing of aerodynamic shapes. A crane then<br />
lifted the rotor that connects to the drive shaft and mechanical installation is completed. On<br />
location there is a set of seven turbines, whosepower is 850 kW each.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Biomass Power<br />
The total amount of Biomass power plants who are incentivize by HROTE is 2,740 kW -planned<br />
capacity- (+3 950 kW only buy by HROTE not incentivized) .<br />
The company Strizivojna Hrast d.o.o decided in 2009 to increase his energy efficiency by using<br />
wood residue. The reason of this project is the inability of HEP’s grid to supply sufficient<br />
electricity. The utilization of this renewable energy source has also as a goal the maximum use<br />
of raw material, in addition to significant savings and a better protection of the environment.<br />
This project was the first pilot project in Croatia concerning plant-based wood production.<br />
Total cost of the project: 115 millions HRK. Commercial bank, HEP ESCO, LOCAL BOARD, HBOR,<br />
FZOE will help the company for financing of the project. Expected return on investments is 4.5<br />
years. The internal rate of return is 27,68. He is higher than the interest rate (8%), so clearly<br />
this project is profitable.<br />
The built energy source consists on a steam boiler, steam turbine, air cooled condensers, heat<br />
stations and other equipment and the generate power is 3.3 MW (effective technology). She also<br />
uses waste heat and any large range of raw materials (chaff, pellets and briquettes). The<br />
combustion of the wood does not create SO2 and CO2 but also the chemical composition does<br />
not contain sulphur. The next scheme shows us the process of obtaining wood-fuel:<br />
Ele : Electricity<br />
Kog.postroj: Cogeneration<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Oplemenjivanje DRVA (sušenje, parenjeje, obrada) : wood processing<br />
Poluproizvodi: semi-product<br />
Trupci: Trunk (logg)<br />
Ogrjev: wood for heating<br />
Iskorišt. ostatka: Using of wood residue<br />
SCHEME OF A COGENERATION PLANT<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Small hydro power<br />
The total amount of hydro power plants which are incentivized by HROTE is 30 kW (planned<br />
capacity).<br />
The overall technically exploitable hydro potential in the Republic of Croatia in hydropower is<br />
estimated at 12.45 TWh / yr. From this potential in hydroelectric power, plants are currently using<br />
6.13 TWh / yr or 49.2%. About 10% of the total potential waste the potential of small rivers (about<br />
1 TWh / yr).<br />
The research potential of small streams in Croatia was carried out through the cadastre of small<br />
hydro power (up to 5 MW). Cadastre based on small hydro power made the cadastre of small<br />
hydropower plants with 67 potential sites for small hydro power plants, but due to various<br />
restrictions that number was reduced to 18 projects on the river 6.<br />
In hydro power 5 to 10 MW, according to available sources, it is possible to build 125 MW. However,<br />
additional research is expected to reduce that number. The Republic of Croatia set as a goal the<br />
construction of at least 100 MW of small hydro power plants by the 2020.<br />
Due to high specific investments and restrictions related to the impact on the environment,<br />
protection of cultural/historical heritage and landscapes, that goal will be difficult to achieve. In<br />
order to achieve the defined objectives, the strategy of the Republic of Croatia will be: to<br />
encourage the study of the remaining water flows, to determine the exact location and resources,<br />
to build and facilitate administrative procedures for obtaining permits (especially below 5 MW<br />
hydro) and energy legislation, to harmonize legislation and water management.<br />
Geothermal power<br />
This is produced on the surface and used for energy purposes, in the long tradition of exploiting<br />
geothermal energy from natural sources of spillover. Today, we use geothermal water from shallow<br />
wells. Earlier, oil and gas sources have been developed in Croatia as well as techniques and<br />
technologies for the extraction of geothermal energy from deep reservoirs.<br />
The use of geothermal energy is economically viable because of existing geothermal wells and hightemperature<br />
deposits with future potential.<br />
The Republic of Croatia will encourage the production of electricity for the multi-purpose use of<br />
geothermal energy (development of economic zones with the use of waste heat from geothermal<br />
power plants).<br />
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<strong>Renewable</strong> Energy in Croatia<br />
In addition to producing electricity, the Republic of Croatia will encourage the utilization of<br />
geothermal energy for the tourist and recreational facilities, but also for space heating, hot water,<br />
agricultural production, industrial processing of agricultural products, fish, etc.<br />
Biogas Power<br />
The Republic of Croatia Strategy sets the goal that the agricultural production for energy use in<br />
2020 should be equivalent to at least 20% of total livestock units, and thus produce about 2.6 PJ of<br />
energy from biogas or about 100 million m3 of biogas.<br />
Croatia will encourage the production and use of biogas, domestic production of biogas plants and<br />
the construction of distributed energy resources (usable for the needs of the farm themselves, but<br />
also the local community) for disposal of waste from agricultural production, reduce greenhouse<br />
gas emissions, but also to encourage the development of agricultural economy.<br />
The total amount of biogas power plants that are incentivized by HROTE is 2,000 kW (planned<br />
capacity).<br />
This production of energy came from raw material like mixture of manure and corn silage.<br />
With the next pictures, we will introduce the production of this energy.<br />
Containers for disposal of liquid phase - After fermentation, the separator separates solid from<br />
liquid phase, liquid phase is subjected to further maturation and is used in irrigation, and solid<br />
phase synthesis is used as humus<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Cogeneration unit - internal combustion engines, powered by biogas, which stimulates the<br />
generator produced electricity (heat is released as a by-product), electric energy shall be<br />
delivered by SUBSTATION directly into the network.<br />
STAJNJAK = manure<br />
Kukuruzna silaža = corn silage<br />
fermentacija = fermentation<br />
BIOPLIN = Biogas<br />
sirovina za sintezu humusa = raw material for the synthesis of humus<br />
gnojnica za navodnjavanje = slurry for irrigation<br />
Kogeneracijski uređaj = cogeneration plant<br />
električna energija = electricty energy<br />
toplinska energija = thermal energy<br />
Photovoltaic power<br />
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<strong>Renewable</strong> Energy in Croatia<br />
The total amount of Photovoltaic power plants who are incentivize by HROTE is 58.86 kW<br />
(planned capacity).<br />
Thanks to its geographical position, Croatia has favourable conditions for exploiting solar<br />
energy. In the southern part of Croatia, annual production of classic photovoltaic system<br />
amounts to 1 000 to 1 330 kWh per installed kWh of power while in the continental part of<br />
Croatia it’s amounts to 1 000 to 1 100 per installer kWh of power. The average annual solar<br />
irradiation on horizontal surfaces is displayed in the image below.<br />
We will take the example of the company Solvis for illustrate the use of photovoltaic power in<br />
Croatia.<br />
The most significant installations of the company are:<br />
-solar power plant SOLVIS in Varaždin (21 kW). This power plant started to work in<br />
November 5th 2009. It permits to avoid approximately 6 ton of CO2.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
SOLVIS used SOLVIS 60-215 modules. You will see below his characteristics.<br />
SOLVIS also used:<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Inverter:<br />
Sensors:<br />
Communication:<br />
3 Sunny Mini Central 7000TL<br />
Sunny Sensor Box<br />
2 Sunny Web Box<br />
The scheme under show us the production of a solar module in SOLVIS company:<br />
SOLVIS Company produces photovoltaic system for industrial plants, residential facilities (solar<br />
plants on house roofs). The system can be:<br />
- Link to the grid (connexion to the public power system)<br />
- An island/autonomous (when the place is far away or inaccessible from the grid) and<br />
the obtained energy is used for own needs<br />
- own consumption plants (households) :the produced energy can be completely<br />
consumed for own needs or partially consumed with the remaining energy being released to the<br />
grid and incentives received.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Biodiesel in Croatia<br />
The introduction of biofuel was started by the Republic of Croatia on the 30th of November 2000 as part of<br />
the National energy program BIOEN. Before the study was obducted, its authors decided that all<br />
prerequisites needed to be met first. They chose an approach, which seemed most promising and most<br />
succesful when experimented in other countries. Biofuel is supposed to be used for specific categories and<br />
bio components are added to Eurodiesel (they must not exceed 5%).<br />
The role of biomass is becoming more and more important. In 1990 the world's energy consumption equalled<br />
376.8 (EJ), it is estimated to rise to 586 and 837 (EJ). For the Republic of Croatia there is a number of<br />
motivations to switch over to biofuel in order to protect the environment, new work places are created and<br />
there is greater diversification of the production in industry or agriculture. It is also a way of abiding by the<br />
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<strong>Renewable</strong> Energy in Croatia<br />
obligations imposed by the EU and other agreements, like the European Commision's directive on the<br />
promotion of biofuel or the Kyoto protocol.<br />
The European Comission picked out three kinds of fuels as an alternative to fossil fuels: 1) biofuel 2) natural<br />
gas 3) hydrogen.<br />
The market share of biofuel has increased from 0.2% in 2002 to 0.8% in 2004. Around 90% of biofuel<br />
consumption in Croatia is covered by its domestic raw materials, while 10% stems from imports. Due to<br />
the growing petrol prices and the dark environmental forecasts, Europe is turning towards biofuel and it<br />
is in Croatia's interest to keep up<br />
Biodiesel Production in Croatia<br />
Since December 12th 2006, Vitrex d.o.o has been the main producer of Biodiesel in Croatia. The<br />
Biodiesel is produced with waste cooking oil and other oilseeds. Raw material is collected in the<br />
whole country among 4,000 partners. The company owned by Mr Marijan Keserić received an<br />
accreditation for the collection and recycling of waste edible oil. This accreditation came from<br />
the Ministry of Environmental Protection, Physical Planning and Construction. The company is<br />
the only one with a Hera (Croatian Energy Regulatory Agency) licence for biofuel production.<br />
To be a partner, you should follow these steps:<br />
• Contact Vitrex d.o.o and leave some details : http://www.vitrex.hr/forma2.php<br />
• Sign a contract regarding the disposal of waste cooking oil<br />
• A container of 60 liters will be provided by Vitrex<br />
• Regularly, the partner has to inform Vitrex about the waste cooking oil he collected<br />
The service is free of charge.<br />
The price of Biodiesel varies between 5.48 kn/l. and 6.02 kn/l.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Contact :<br />
Vitrex D.O.O<br />
Zbora narodne garde 3<br />
33 000 Virovitica – Croatia<br />
Tel: +385 (0)33 721-168/ Fax : +385 (0)33 726-253 / E-mail : vitrex@vt.htnet.hr<br />
Marijan Keserić<br />
Mobile: +385 (0)98 980-2246<br />
Following the environmental standards, in the year 2007, ZET started to use biodiesel in public<br />
transportation vehicles. ZET (Zagrebački Električni Tramvaj –responsible for public transport in<br />
Zagreb-) had 300 buses. In 2008, the company substituted the ex-fleet by 214 new buses<br />
produced by MAN, Mercedes-Benz and Citelis. 60 of them are using compressed gas. Additional<br />
assistance for this investment was provided through the CIVITAS-ELAN programme. This project<br />
is financed by the European Union. Through this project, five cities (Ljubljana, Gent, Zagreb,<br />
Brno and Porto) cooperate in order to develop clean mobility solutions.<br />
Other Biofuel companies in Croatia<br />
1) INGRA doo<br />
Address: Alexandra von Humboldta 4b<br />
10000 Zagreb<br />
Croatia<br />
www.ingra.hr Tel.: + 385 1 6102 555 Fax.: +385 6150 387<br />
Activities: Power supply, Industry, Civil Engineering, Assembly, Telecommunications and Trade<br />
2) Europa Mil Biogoriva doo<br />
Address: Trpinjska Cesta 215<br />
32 000 Vukovar, Croatia<br />
Activities: Production of bio fuel, bio mass, retraction of raw oil and natural gas, trade etc. Inside<br />
of Croatia and abroad<br />
http://hr.kompass.com/live/hr/HR221142/europa-mil-biogoriva-doo.html<br />
3) Bio Adria doo<br />
Adress: Kraljice Jelene 6<br />
10000 Zagreb, Croatia<br />
Phone: +385 1 4619 364<br />
Fax: +385 1 4621 471<br />
Contact person: Martin Petričević<br />
http://www.cro-ponuda.eu/138/214/bio-adria-doo.html<br />
Links.<br />
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<strong>Renewable</strong> Energy in Croatia<br />
Hera is a state institution. HERA's obligations, authorities and responsibilities are based on the<br />
Act on the Regulation of Energy Activities, the Energy Act and other acts regulating specific<br />
energy activities.<br />
The Energy Act:<br />
http://www.hera.hr/english/documents/pdf/OG_2001_1120.pdf<br />
The Electricity Market Act: http://www.hera.hr/english/documents/pdf/OG_2004_3078.pdf<br />
The Act on the regulation of Energy Activities:<br />
http://www.hera.hr/english/documents/pdf/OG_2004_3077.pdf<br />
The Act on the amendments to the Act on the regulation of Energy Activities:<br />
http://www.hera.hr/english/documents/pdf/OG_2007_2400.pdf<br />
Hrvatska Elektroprivreda (HEP Group) is a national electricity company<br />
Grid Code:<br />
http://www.hep.hr/ops/en/documents/Grid_Code.pdf<br />
HROTE is a state institution supervised by HERA.<br />
Electricity Market Rules:<br />
http://www.hrote.hr/hrote/dokumenti/electricity_market_rules.pdf<br />
Ordinance on acquiring the Status of Eligible Electricity Producer:<br />
http://www.hrote.hr/hrote/en/Documents/Ordinance_Acquiring_EEP_Status.pdf<br />
Tariff System for the Production of Electricity from <strong>Renewable</strong> Energy Sources and<br />
Cogeneration:<br />
http://www.hrote.hr/hrote/en/Documents/RESCO_Tariff_System.pdf<br />
General Conditions for Electricity Supply:<br />
http://www.hrote.hr/hrote/en/Documents/General_Conditions_for_Electricity_Supply.pdf<br />
Form of the request for Electricity Purchase Contract (<strong>Renewable</strong> Energy):<br />
http://www.hrote.hr/hrote/en/Documents/Request_for_Electricity_Purchase_Contract_V3R1.p<br />
df<br />
Form of the Invitation to sign Electricity Purchase Contract <strong>Renewable</strong> Energy):<br />
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<strong>Renewable</strong> Energy in Croatia<br />
http://www.hrote.hr/hrote/en/Documents/Invitation_to_sign_Electricity_Purchase_Contract.p<br />
df<br />
Learn more about <strong>Renewable</strong> Energy Sources:<br />
http://www.hrote.hr/hrote/en/Learn/<strong>Renewable</strong>/default.aspx<br />
<strong>Renewable</strong> energy legislation and energy efficiency labelling:<br />
http://releel.mingorp.hr/default.aspxid=39<br />
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