EC approves EUR 783m Croatian renewables support scheme
Date: December 9th 2021
Author: Peter Palčec
Category: En.vision
Topic:
Electricity
, Renewables
, Energy policy
The European Commission approved a Croatian EUR 783m aid scheme to encourage and support electricity production from renewable energy sources on Thursday.
The commission positively assessed the scheme on the basis of EU State aid rules.“The measure will help Croatia reach its renewable energy targets, including those set in its recovery and resilience plan, and contribute to the European objective of achieving climate neutrality by 2050, without unduly distorting competition in the single market,” the EC said in a press release.
Croatia wants to support companies that are producing electricity from renewable energy sources, such as wind, solar, hydro, biomass, biogas, and geothermal power plants.
According to the commission’s press release, this aid will take the form of a premium on top of the electricity market price. The premium will be awarded through a competitive bidding process and “will not be higher than the difference between the average production cost for each renewable technology and the electricity market price.”
The beneficiaries of this scheme will be selected through tenders that will take place between 2021 and 2023. The successful bidders will receive aid for a 12-year period.
In November, Ivo Milatic, a state secretary in the Croatian economy ministry, said that the country would need 1,500 MW of renewables capacity by 2024 to meet the targets set in its national recovery and resilience plan.
Meanwhile, the Croatian parliament adopted a new Renewable Energy Sources and High Efficiency Cogeneration Act on Wednesday which provides the basis for the above mentioned renewables tenders.
Economy minister Tomislav Coric said in February that the quota at the first auction for large-scale renewable projects would be 400 MW.
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