Croatia To Start Renewables Auctions For Large-scale Projects In Spring 2022

Last week two key regulatory changes took place that will have important implications for future development of the Croatian renewable energy market.

What will change?

Firstly, on 9 December 2021 the European Commission approved the EUR 783m Croatian state aid scheme to support production of electricity from renewable energy sources ("RES"). The new scheme will enable Croatia to support renewable electricity production from various technologies (wind, solar, hydro, biomass, biogas and geothermal power plants).

Secondly, on 8 December 2021 the Croatian parliament adopted the new Act on Renewable Energy Sources and High-Efficiency Cogeneration ("RES Act"). The key amendments are centred around the introduction of a renewable energy auction support mechanism.