Croatia kicks off phase two of premium auctions for renewables.

By Oliver Townsend Jun 17, 2024
Croatia launches second phase of premiums auctions for wind, solar, hydropower.jpegOrginal image from: https://balkangreenenergynews.com/croatia-launches-second-phase-of-premiums-auctions-for-wind-solar-hydropower/

Croatia recently launched the second phase of premiums auctions for wind, solar, and hydropower plants, signaling a significant step towards boosting renewable energy generation in the country. The Croatian Energy Market Operator HROTE initiated the public bidding process for premiums, with a deadline for bid submissions set for June 27. This phase follows an initial public call with eligibility requirements that took place over a 60-day period starting on April 12.

Details of the Premiums Auction

The premiums will be allocated to wind power plants with a total capacity of 150 MW, solar parks with a combined capacity of 450 MW, and hydropower plants with an overall capacity of 7.25 MW. HROTE has estimated that the support for the 607.25 MW capacity encompassed by the call would amount to EUR 257.2 million. Each participant is allowed to submit only one bid for an individual production plant or unit to ensure competitiveness in the bidding process.

Bidding Criteria and Process

To guarantee a competitive auction, HROTE stipulates that a minimum of three valid offers must be received for each group of power plants. The maximum individual premium set for a single project is EUR 30 million, with participants required to submit bank guarantees based on the connected capacity. In cases where the total connected capacity in valid bids exceeds the defined quota for a particular group of facilities, the awarding criteria will be based on the lowest offered reference price.

Selection and Timeline

HROTE aims to select the best bidders within 30 days of the bid submission deadline, with subsidies expected to be distributed by the end of the year. The bidding process is divided into two segments, one for facilities with an installed capacity exceeding 1 MW and another for smaller projects ranging from 200 kW to 18 MW for wind power plants and 200 kW to 6 MW for solar power plants.

Eligibility and Support for Renewable Energy Communities

Renewable energy communities, small and medium enterprises, as well as micro and small firms, are eligible to participate in the bidding process. Projects between 200 kW and 1 MW are eligible for support, while PV and wind projects up to 6 MW can be submitted by small and medium-sized enterprises and renewable energy communities. Additionally, wind farm projects ranging from 200 kW to 18 MW can benefit from subsidies if fully owned by micro or small businesses or renewable energy communities.

Future Plans and Feed-in Tariffs

Aside from the premiums auctions, HROTE also plans to launch a public call for feed-in tariffs for solar and hydropower projects. The government’s subsidy program aims to incentivize the development of renewables and high-efficiency cogeneration through market premiums and feed-in tariffs. By diversifying the support mechanisms available, Croatia is taking proactive steps to accelerate the transition towards a greener and more sustainable energy sector.

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