The electricity market in Croatia is dynamic and multifaceted, comprising various stakeholders who play crucial roles in ensuring the reliable supply and distribution of electrical energy.Understanding the key participants and the regulatory framework governing this market is essential for businesses looking to operate within it. In this article, we provide an overview of the market’s key players and the regulatory requirements for market entry.
Market Participants
The electricity market in Croatia involves several market participants, including producers, suppliers, traders, and end consumers.
- Producers: Electric energy producers are entities engaged in electricity generation. They must hold licenses issued by the Croatian Energy Regulatory Agency (HERA) to operate legally. Producers can generate electricity for their own consumption, sell it to other market participants, or export it across national borders. There are two categories of producers in Croatia:
Privileged Producers: These producers generate electricity from renewable energy sources and cogeneration. The promotion of such production, as well as the purchase and sale of the electricity produced, is regulated by the Croatian Energy Market Act and other relevant legislation.
Independent Producers: Independent producers generate electricity, typically for sale to the market. They can participate in electricity trading, supply, and distribution activities.
- Trial Operation Producers: Trial operation producers generate electricity during the trial operation of power plants with a total capacity exceeding 500 kW. They do not require an energy permit for this purpose.
- Traders: Energy traders are authorized entities engaged in purchasing and selling electricity. Traders must obtain energy trading licenses from HERA to operate legally. They facilitate transactions between market participants, contributing to market liquidity and efficiency.
- Suppliers: Energy suppliers have licenses to supply electrical energy to end consumers. As of January 1, 2019, each supplier must purchase a certain percentage of electricity from producers involved in promoting electricity production from renewable energy sources and cogeneration. The Government of the Republic of Croatia specifies this obligation.
Active suppliers in Croatia include:
HEP – Opskrba d.o.o.
HEP – ELEKTRA d.o.o.
GEN-I Zagreb d.o.o.
E.ON ENERGIJA d.o.o.
PETROL d.o.o
MET Croatia Energy Trade d.o.o.
ENNA Opskrba d.o.o.
HEP – ELEKTRA d.o.o.
GEN-I Zagreb d.o.o.
E.ON ENERGIJA d.o.o.
PETROL d.o.o
MET Croatia Energy Trade d.o.o.
ENNA Opskrba d.o.o.
Suppliers are responsible for purchasing a share of electricity from producers within the regulated system to support renewable energy production. They must also provide energy to end consumers, ensuring their energy needs are met.
Regulations mandate that suppliers offer consumers the option to choose their electricity supplier, enabling customers to negotiate prices and terms. Suppliers also participate in cross-border electricity trading.
- End Consumers: End consumers are the final recipients of electrical energy. Whether they belong to households, businesses, or industries, they can choose their energy supplier, allowing them to negotiate electricity prices and services tailored to their needs.
Regulatory Framework
The organization of the electricity market in Croatia and the transmission and distribution of electrical energy are regulated activities performed as public services:
Market Organization: The Croatian Electricity Market Operator (HROTE) organizes the electricity market. HROTE manages the market and ensures the balance between electricity production and consumption.
Transmission: The Croatian Transmission System Operator (HOPS) is responsible for electricity transmission, system maintenance, development, and the operation of the electricity system. They manage the electricity network’s security and ensure compliance with the European Network of Transmission System Operators for Electricity (ENTSO-E).
Distribution: The distribution of electrical energy and the maintenance, development, and construction of the distribution system are the responsibilities of HEP-Operator distribucijskog sustava.
EU Funds and Opportunities
Croatia offers numerous opportunities for accessing EU funds in the energy sector. These funds can support renewable energy projects, energy efficiency initiatives, and various environmental programs. We can introduce you to firms that specialize in this sector to explore these opportunities.
In conclusion, the Croatian electricity market is characterized by its diverse participants and a comprehensive regulatory framework. Businesses looking to enter this market should comply with all necessary regulations and consider the benefits of EU funds available for energy-related projects.