Ministry of Economy, Labour and Entrepreneurship
STORIES project workshop
RES and Energy Storage in Current and
new Croatian Energy Legislation
Igor Raguzin, Head
Renewable Energy & Energy Efficiency Department
SDEWES, Dubrovnik, 2 October 2009
Ministry of Economy, Labour and Entrepreneurship
1
Total primary energy supply in Croatia
Primary energy production in 2006 were 208,76 PJ, while
total primary energy supply were 410,56 PJ  import!
Obnovljivi izvori - Renewables
0,06%
Ugljen i koks - Coal and coke
Električna energija - Electricity
7,7%
4,9%
Ogrjevno drvo - Fuel wood
Vodne snage - Hydro power
3,7%
14,2%
Tekuća goriva - Liquid fue
45,1%
Prirodni plin - Natural gas
24,3%
Ministry of Economy, Labour and Entrepreneurship
2
Energy sector change: an overview
1994 - Energy Sector Development and Organisation Program
1997 - National Energy Programs-NEP (7 energy efficiency
programs + 5 renewable energy programs)
1998 – Draft Strategy of Energy Sector Development
2000 - Concept of Energy Sector Reform
2001 - Energy Laws (Energy Law, Law on Regulating Energy
Activities, Electricity Energy Market Law, Oil and Oil Derivates
Market Law, Gas Market Law)
2002 - New Energy Strategy-Croatia in 21 Century
2003 - Fund for Environmental Protection and Energy Efficiency
2004/7 - Amendments to Energy Legislation
2007 - New secondary legislation for Renewable Energy Sources
Ministry of Economy, Labour and Entrepreneurship
3
Croatian RES policy
Regulatory
framework
1.
2.
3.
Economic
RENEWABLE
Directive 2001/77/EC
on the promotion of
ENERGY
electricity produced
SOURCES
of electricity
produced from RES
in the internal
electricity market
Directive 2003/30/EC
Programs, measures
on the promotion of
projects
the use of biofuels
1. Governmental
or other renewable
2. Regional/local selffuels for transport
government
Directive 2009/28/EC 3. National energy
programmes
2020 RES target 20%
instruments
1.
Fund for
Environmental
Protection and
Energy Efficiency
2.
State aids
3.
Special EU&inerntl.
Ministry of Economy, Labour and Entrepreneurship
projects: CARDS,
IPA, CIP/IEE, GEFUNDP-WB, CBRD
4
Competent authority RES
Ministry of Economy, Labour and Entrepreneurship
www.mingorp.hr monitors implementation and compliance with set targets
for RES and CHP
Environmental Protection and Energy Efficiency Fund
www.fzoeu.hr financing preparation, implementation and development of
programs, projects and similar undertakings in the field of RES and EE
Croatian Energy Regulatory Agency www.hera.hr
responsible for granting energy permits and granting the status of eligible producers
Croatian Energy Market Operator www.hrote.hr
responsible for the collection and distribution of incentives and concluding contracts
on buy-out of electricity with eligible producers that realised the right to incentives
The System Operator www.hep.hr/ops, www.hep.hr/ods
responsible for connecting and taking deliveries of electricity from RES and CHP
Ministry of Economy, Labour and Entrepreneurship
5
Directorate for Energy and Mining
Director
Energy Department
Energy
System
EU and
restructu
ring
Renewable Energy & Energy
Efficiency Department
RES
EE
BIO
FUELS
Strategic Planning and Energy Balance
Department
Energy
Balance,
Review and
Market
Ministry of Economy, Labour and Entrepreneurship
Common
Activities and
International
Cooperation
6
RES: Legislative framework
The
Energy
Act
The Tariff
System for
the
Production
of
Electricity
from RES
and CHP
Ordinance
on the Use
of RES and
CHP
The Electricity
Market Act
The Regulation
on the Minimum
Share of
Electricity
Produced from
RES and CHP
whose Production
is Incentivized
Pravilnik za
stjecanje
statusa PP-a
električne
energije
The Act on the
Regulation of
District
Heating
The Act on
Biofuels for
Transport
The Ordinance on
measures to
encourage use of
biofuels
The
Ordinance
on
Privileged
Status - H
PSTE
The
Regulatio
n on
Minimum
Share
PSTE
The Regulation of
encouraging biofuel
production
The decision on the
amount of
compensation to
encourage biofuel
production
The Regulation
on Fees for
Promoting
Electricity
Production from
RES and CHP
OG 33/07 i OG 67/07
1 July 2007 came in force
7
Ministry of Economy, Labour and Entrepreneurship
Tariff system for the production of
electricity from RES and cogeneration
determine the producer's right to an incentive price payable by the
market operator (feed-in tariffs)
tariff elements for cost calculation of electricity from RES and
cogeneration plants
 the type of resource
 power and other elements of supplied energy
 means and conditions for application of these elements
based on justified operation costs, maintenance costs, replacement,
construction or reconstruction of RES as well as other costs
energy prices for each RES and cogeneration technology set by
application of tariff systems
application of tariff systems supervised by CERA
Ministry of Economy, Labour and Entrepreneurship
8
Feed-in tarrifs for RES-E
<1MW
>1MW
PPC
PV <10kW
PV 10kW-30kW
Limitation
PV 1 MW
PV >30kW
HPP < 5000 MWh/g
HPP 5000-15000 MWh/g
HPP >15000 MWh/g
0,01 kn/kWh
charge for
LSGU
WIND POWER
BIOMAS FOREST/AGRO
BIOMAS WOOD PR. IND.
GEOEN
BIOGAS
BIOFUEL
LANDFILL GAS
OTHER RES
c€/kWh 0,0
5,0 10,0 15,0 20,0 25,0 30,0 35,0 40,0 45,0
Ministry of Economy, Labour and Entrepreneurship
9
RES-E: Institutional framework
Possible other
sources of
incentives
MARKET
OPERATOR
Mechanism
for collection
and
distribution of incentives
Billing
energy
supplied
from RES
Payment
of
additional
amount
for
incentive
Payment for
energy
supplied
from RES
Billing for energy
supplied
from RES
RES privileged
producers within
the incentive
Payment for energy
system
supplied RES increased
by incentive
CERA - Croatian
Energy Regulatory
Agency
MONITORING
Retail
Supplier
Billing
Payment (cash flow)
Privileged producer which
uses RES within the incentive
Customer
s
Ministry of Economy, Labour and Entrepreneurship
10
Ordinance on the use of RES and cogeneration
RES to be used for energy production
conditions and possibilities for their use (type, technology)
including
authorisation, planning, design and construction of
plants
registry of RES and cogeneration projects
other issues of importance
Classification of plants/technologies using RES, particular rights
and commitments of privileged producer stipulated
REGISTRY of projects and plants for use RES and high efficiency
cogeneration and of privileged producers
benefits of RES
Ministry of Economy, Labour and Entrepreneurship
11
Actual status according to RES
GEOTHERMAL
POWER
PLANTelektrane; 1;
0%
POWER PLANTS
ON LANDFILL
GAS AND GAS
FROM PLANT
FOR WASTE
WATER
TREATMENT
PLANT; 2; 1%
379 request
SOLAR POWER
PLANTS; 46; 12%
WIND POWER
PLANT; 180; 47%
HYDRO POWER
PLANTS; 97; 26%
BIOGAS POWER
PLANT; 22; 6%
COGENERATION;
12; 3%
BIOMASS POWER
PLANT; 19; 5%
http://www.mingorp.hr/UserDocsImages/Tablica_OIEK.xls
Ministry of Economy, Labour and Entrepreneurship
12
Administrative procedure - case
Overlap:
4. Project holders,
8. Projects,
12. Request
overlaps
Ministry of Economy, Labour and Entrepreneurship
13
Registry RES: locations of wind plants (dvelopment)
14
Ministry of Economy, Labour and Entrepreneurship
Registry of projects and plants for use of RES and
CHP as excellent tool for sustainable energy
business
community
consumer
community
monitoring
reporting
for EU
regional and local
self-government
REGISTRY
OF
RES&CHPE/T/B
focal point for policy for RES&CHP
national authorities
companies
institucion
(scientific,
educational ect.)
media
public
development
agencies
spatial planing
Ministry of Economy, Labour and Entrepreneurship
15
Economic instruments for RES EE
Ministry of Economy, Labour and Entrepreneurship
16
Fund’s investments in the EE and RES
projects (2004 – February 2009)
No. of projects
milion EUR
Improvement of energy efficiency
218
17.63
Utilisation of renewable energy sources
69
10.26
Sustainable building
42
3.39
Cleaner transport
6
0.29
Energy audits and demonstration activities
118
0.50
Educational, research and development
studies
68
1.19
Other programs and projects
5
2.94
526
36.20
TOTAL EE and RES PROJECTS
Ministry of Economy, Labour and Entrepreneurship
Promotion of LPG and solar energy
utilisation on Croatian islands
 In November 2007, the Government of Croatia adopted:
 LPG Utilisation Strategy and Program on Croatian Islands (2008-2012)
 This supports utilisation of environmentally and energy preferable fuel
replacement of fuel oil on Croatian islands
 The programme budget of 4.8 million EUR
 Fund is partly co-financing project documentation, civil works (UNP
storage connection) and LPG or LPG-Solar energy instalation in the
house:
500 households (100 households per year 2008-2012)
Grant of 3.800 EUR per project
Ministry of Economy, Labour and Entrepreneurship
Structure of RES targets in 2020
• Directive on the promotion of the use RES 2009/28/EC 23 April 2009
• RES in Croatia was 12.58% in 2005
• 7.27% from hydropower - 5.28% from biomass and 0.03%
Calculation of the share of energy from RES, overall target for Croatia
equals 20.02% of RES in gross final energy consumption in 2020
• This presents 1.9329 mtoe
Ministry of Economy, Labour and Entrepreneurship
19
Ministry of Economy, Labour and Entrepreneurship
Croatia
EU-27
UK
Sweden
Spain
Slovenia
Slovakia
Romania
Portugal
Poland
Netherl.
Malta
Luxemb.
Lithuania
Latvia
Italy
Ireland
Hungary
Greece
Germany
France
Finland
Estonia
Denmark
Czech Rep.
50
Cyprus
Bulgaria
Belgium
Austria
%
Structure of RES targets in 2020
60
Residual "effort per citizen"
Flat increase 5,5%
2005 share
40
30
20
10
0
20
Further activities
• Removal of the remaining key barriers within RES autorisation
procedures and “repair” the related RES-E sub-laws
• Development and enactment of the secondary legislation and
incentives for RES to heating/cooling systems: solar thermal,
biomass/pellet boiler, heat pumps
• Analysis and consideration of incorporation into Croatian legal
system of the Tariffs for energy storage (within technical
assistance from GEF/WB project) as well as special subsidy
scheme by EEEP Fund
• Enhancing administrative and institutional capacity in field of EE and
RES, in particular in the Ministry
• Development of guarantee of origin and green certificates scheme
• Promotion and education, increase of public awareness
Ministry of Economy, Labour and Entrepreneurship
21
Further activities
•
•
1.
2.
3.
Consideration and application results of the STORIES project
especially in the context of the socio economic aspects to the
specific location (islands, remote regions)
support the development of demonstration projects of
storage technologies for increasing the penetration of
intermittent energy sources (RES) according to case studies:
the Island of Mljet – desalination STORIES project
The island of Vis – sustainable Solar Hydroelectric Power
Plant (model PV power plant 40.5MW, reservoir 20 hm3, 100
ha, depths 20 m)
The Dalmatia region – wind-pumped storage hybrid ystem in
power grid
Ministry of Economy, Labour and Entrepreneurship
22
Thank you for your attention !
Further information
Tel: +385 1 6106713
Fax:+385 1 6109113
E-mail: igor.raguzin@mingorp.hr
www.mingorp.hr
Ministry of Economy, Labour and Entrepreneurship
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