Croatia has announced more green energy premium auctions

As per Darjan Budimir, who works at the Croatian Energy Market Operator (HROTE) as the deputy general manager, the country is going to organize another series of auctions for the distribution of premiums for renewable energy plants, having a total quota of 2,010 MW. The statement came after the country’s first premium auction for major power plants, with a quota of 648 MW, was recently held.

As per Budumir, Poslovni dnevnik, 1,050 MW of the overall 2,010 MW quota in the future auctions are going to go to wind farms with a potential of over 3 MW, and 865 MW to solar power plants with a capability of over 500 kW.

A quota of the 33 MW is going to be allocated to biomass power facilities with an operational capacity of between 500 kW to 2 MW. Geothermal power plants, biogas power stations, and small hydropower plants all have quotas. Budimir noted that a quota of 10 MW is planned for new technologies which have gained EU development assistance.

“Croatia has huge potential for renewable energy development, measured in gigawatts of additional capacity,” Budimir stated at a Poslovni dnevnik debate on the green issue in the economy.

He highlighted that implementing the green agenda would be impossible without fresh investments in the renewable energy sources, which have been aided by the recent decline in technological prices. Croatia’s 648 MW auction was the country’s first large-scale power plant sale. Bids were due by mid-April, and auction outcomes are expected shortly.

Solar power plants could charge up to €65.47 (HRK 495.63) per MWh, while wind farms could charge up to €60.88 (HRK 460.91). Solar power facilities with more than 500 kW had a quota of 300 MW, and wind farms with more than 3 MW had a quota of 300 MW. Geothermal power plants, biomass power plants, biogas power plants, and hydropower plants received the remaining 48 MW.

Premium allocation auctions were launched in Croatia in mid-2020 as a new mechanism for subsidizing the generation of power from renewable sources, with the first auctions for minor projects taking place in early 2021.

Auctions for this allocation of renewables premiums within the existing quotas are expected to raise € 1 billion in investments next year, according to estimates. Croatia generated 3.5 TWh of power per year from a total renewable energy capacity of 1,048 MW.

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