Energy Policy, Legislative Background, Funds and Programmes
Energy Law
The Energy Law passed in 2001 (and its amendments in 2004 and 2007) regulates measures to ensure a secure and reliable energy supply, efficient power generation and its use, the enforcement of regulations in the energy sector, and regulates carrying out of energy activities based on market principles or pursuant to public service obligation, and other key issues relevant for the energy sector.
The law foresees the development of an Energy Strategy to be passed by the Parliament for a period of ten years. Croatia adopted a new Energy Development Strategy for the period up to 2020 in October 2009. On the basis of the Energy Strategy, National Energy Programs are developed. Further, a fund for the financing of the National Energy Programs has to be established. A special section of the Energy Law deals with Energy Efficiency and Renewable Energy Sources, providing for Energy Efficiency Programs.
The following acts are translated into English and available online:
- The Energy Act (OG, 68/01, amended: 177/04, 76/07)
- The Electricity Market Act (OG 177/04)
- The Act on the Regulation of Energy Activities (OG, 177/04)
- The Act on Production, Distribution and Supply of Thermal Energy (OG, 42/05)
[HERA]
In June 2010 the government adopted the National Renewable Energy Action Plan, as foreseen unde the new EU Renewable Energy Directive. Feed-in tariffs for electricity produced from RES and cogeneration have been amended. Implementing legislation on incentives for use of biofuels in transport was enacted.
Croatia has not met its 2010 target for electricity production from renewable energy sources covered by incentives. The lengthy administrative procedure is a disincentive to increasing investment in RES technologies. Alignment of legislation is advanced, but substatial efforts will be required if Croatia is to achieve its target of meeting 20 % of final energy demand from renewable sources by 2020.
The first National Energy Efficiency Action Plan was adopted in April 2010. Implementing legislation on energy efficiency in buildings and the method for calculationg energy savings in final consumption have been enacted.
Concerning nuclear safety and radiation protection progress has been made, the goverment introduced a law on radiological and nuclear safety.
[EC Croatia Progress Report 2010]
In October 2009, the Croatian Parliament adopted the Strategy for Energy Development of the Republic of Croatia (OG ”Narodne novine”, No. 130/09, available in Croatian).
National Energy Programme
The project of a National Energy Program was initiated within PROHES: Program of Development and Organisation of the Croatian Energy Sector. It was launched to develop an energy management framework that will promote clean technologies, shift to fuels with lower carbon contents (natural gas), diversification of energy resources, higher EE&RES utilisation demand side management, energy savings development of energy market and environmental protection.
The following programs have been set up:
- KUENzgrada (Energy efficiency in building construction)
The basic goal of energy efficiency within the program KUENzgrada is the reduction of energy needs during design, construction and utilisation of buildings and settlements, and during the restoration of the existing buildings as well as the creation of suitable microclimatic parameters in areas around the buildings with the decrease of environmental impact. This programme includes the changes of existing legislation, building physics, energy audits in buildings, passive solar architecture, renewable energy sources in buildings, promotion of energy efficiency and pilot projects. - MIEE (Industrial energy efficiency network)
Within the MIEE program, consumers in industry and service sectors, as well as in the public sector are encouraged to increase energy efficiency through an organised structure. The direct communication between large energy consumers, energy producers, expert and consulting bodies, and government institutions has to be enforced. It is also important to involve the consumers in the industry, commercial and public sector as well as to involve the designers in informing campaigns and training programs and in decision making. The Cooperation between scientific and expert institutions from diverse sectors on energy issues and the cooperation with similar institutions and energy programs have to be enlarged. - KOGEN (Cogeneration program)
In cogeneration (KOGEN) the main goal is to promote construction and utilisation of cogeneration plants in all buildings where they are technologically and economically justified. The realisation of this program includes the establishment of a legislative, financial and technological framework for cogeneration plant construction. - KUENcts (Centralised thermal systems’ energy efficiency program)
For centralised thermal systems (KUENcts) in Croatia it is necessary to encourage development and enhancement of centralised thermal systems in areas with a large density of heat consumers or combined electric energy and heat consumers. It is also important to enhance efficiency of the existing systems. Progress can be seen in:- Preparation of a legislative framework for the heat sector and heat tariff development
- Preparation of the Handbook of energy management in CTS (DH/CHP, HOB)
- Realisation of existing pilot projects and establishment of new ones
- Least-cost energy planning for DH systems
- Promotion, education and capacity building
- TRANCRO (Transport energy program).
Energy efficiency in the transportation sector is tried to be increased through different measurements:- "Cost - benefit analysis" of various measures (projects) for sustainable transport system development
- Necessary legislation - measures – subsidies
- Action plan - for Croatian Government
- Pilot projects and marketing
- CROTOK (Croatian Islands energy program)
CROTOK can be seen as the synthesis of all national energy programs and is based on the methodology for regional energy planning in Croatia . Important aspects are the institutional, organizational and expert prerequisites for developing energy system on islands. - BIOEN (Biomass and waste energy use program)
According to the National Energy Sector Development Strategy, the project has shown, that electric energy generation from biomass and waste could meet up to 15 percent of the total primary energy consumption until 2020, which is a realistic assumption when compared to Austria, Finland and Denmark.
BIOEN program includes sub-program BIODIZEL, the goal of which is to develop steady biodiesel production and to spread use of biodiesel in Croatian transport and energy sector.
International cooperation within the BIOEN:
IEA Bioenergy Task 29 (Socio-economics); 6th Framework, INTERREG, CADSES,…; FAO, UNIDO - SUNEN (Solar energy use program)
The program for solar energy use SUNEN has shown that solar energy utilisation combined with LPG and/or natural gas is a technologically and ecologically acceptable solution for the Croatian coastline. The hybrid combination of solar energy, wind energy and LPG can help solve the problem of energy infrastructure on islands and also start the development of traditional island activities with the engagement of local resources in accordance with the strategic development of Croatian islands.
Solar radiation measurements were initiatied:- Multipyranometer Array Measurement of Solar Radiation Components in Zagreb and Split (cooperation with University of Split)
- CARDS National Action Program Croatia 2003 project Assessment of Wind and Solar Energy Resource in a Pilot Croatian Region
- Solar Radiation Atlas of Croatia
- ENWIND (Wind energy use program)
For wind energy utilisation by new generation wind turbines, the program for wind energy use, ENWIND, has been started. The program includes the assumptions for an economical wind energy use. Preliminary wind resource in Croatia estimates 1300 MW and 3 TWh/a, notably on the coast. There doesn’t exist a wind atlas of Croatia but within the program a number of projects are in progress to overcome the lack of data:- Program of continuous wind monitoring in Croatia
- Development of Pre-commercial Wind Turbine
- Assessment of Wind and Solar Energy Resource in Pilot Croatian Region (EC CARDS Program)
There are already a number of commercial wind projects:- Ravne I with 5,95 MW – (in operation)
- Trtar -– Krtolin with 11,8 MW
- Stupisce with 6,3 MW
- Jasenice with 10 MW
- Orlice with 6 MW
- and 40 more with wind measurements
- MAHE (Small hydro plant construction program)
The basic goal of the MAHE program is planning the construction of small power plants, removing all barriers and obtaining conditions for a rapid construction of small power plants in Croatia. Croatia has a long tradition of using hydroelectric power with an estimated potential for small HPPs (<10 MW) of approx. 180 MW, 560 GWh. The environmental and planning constraints significantly reduce the potential. Some pilot projects were implemented through the cooperation with country authorities. A limited commercial interest can be noticed and the highest interest is shown by SHPP’s which is owned by HEP. - GEOEN (Geothermal energy use program).
Geothermal energy use program, GEOEN, has shown the need for the creation of conditions for increasing geothermal energy utilisation in existing installations. Another important matter is the need for carrying out an appropriate and global marketing campaign and making private entrepreneurs and local communities interested in geothermal energy utilisation. - PLINCRO (Gas Network Development Program)
The objective is to establish necessary preconditions for the expansion of the natural gas network
To achieve this, following measurements are important:
Master Plan Development:- transport pipelines
- natural gas storage facilities
- distribution network
Further reading:
Energy Related Funds and Programmes
Environmental Protection and Energy Efficiency Fund
The Ministry of the Economy and the Ministry of Environmental Protection and Physical Planning of the Republic of Croatia, consulted by the Energy Institute Hrvoje Pozar, established the Environmental Protection and Energy Efficiency Fund.
It is a structured extra budgetary fund which finances projects and activities in three areas:
- Environmental protection
- Energy efficiency
- Renewable energy sources
A framework guideline in the form of a study is going to be prepared with the main objectives of gathering the existing information on potential financing areas, to associate available financial mechanisms with projects, to take into account existing financial support mechanisms for energy efficiency and the use of renewable energy sources so that they can adequately supplement the Fund and avoid collision with its financing programmes.
The Environmental Protection and Energy Efficiency Fund and the Croatian Bank for Reconstruction and Development (HBOR) signed an Interest Rate Subsidy Agreement for loans intended for environmental protection, energy efficiency and renewable energy resources projects.
The Agreement regulates areas of operation as well as terms and conditions for providing support. HBOR will provide expert support and advice for the economic viability assessment and financial monitoring of the above projects and the Fund will provide expert support for the technical viability assessment, implementation monitoring and results verification.
