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  1. 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, 2October 2009

  2. 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 fuels Prirodni plin - Natural gas 45,1% 24,3% 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!

  3. Energy sector change: an overview 1994 - Energy Sector Development and Organisation Program 1997 - National Energy Programs-NEP (7 energy efficiency programs + 5renewable 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, GasMarket 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

  4. Croatian RES policy • Economic instruments • Fund for Environmental Protection and Energy Efficiency • State aids • Special EU&inerntl. projects: CARDS, IPA, CIP/IEE, GEF-UNDP-WB, CBRD • Regulatory framework • Directive 2001/77/EC on the promotion of electricity produced of electricity produced from RES in the internal electricity market • Directive 2003/30/EC on the promotion of the use of biofuels or other renewable fuels for transport • Directive 2009/28/EC 2020 RES target 20% RENEWABLE ENERGY SOURCES • Programs, measuresprojects • Governmental • Regional/local self-government • National energy programmes

  5. Competent authority RES Ministry of Economy, Labour and Entrepreneurship www.mingorp.hrmonitors implementation and compliance with set targets for RES and CHP Environmental Protection andEnergy Efficiency Fundwww.fzoeu.hrfinancing preparation, implementation and development of programs, projects and similar undertakings in the field of RES and EE Croatian Energy Regulatory Agency responsible for granting energy permits and granting the status of eligible producers Croatian Energy Market Operator 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, for connecting and taking deliveries of electricity from RES and CHP

  6. Directorate for Energy and Mining

  7. RES: Legislative framework The Energy Act The Electricity Market Act The Act on the Regulation of District Heating The Act on Biofuels for Transport The Tariff System for the Production of Electricity from RES and CHP 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 Ordinance on measures to encourage use of biofuels The Ordinance on Privileged Status - H PSTE The Regulation on Minimum Share PSTE The Regulation of encouraging biofuel production Ordinance on the Use of RES and CHP 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

  8. 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

  9. Feed-in tarrifs for RES-E <1MW >1MW PPC PV <10kW PV 10kW-30kW Limitation PV 1 MW PV >30kW HPP < 5000 MWh/g 0,01 kn/kWh charge for LSGU HPP 5000-15000 MWh/g HPP >15000 MWh/g 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

  10. Billing for energy supplied from RES RES privileged producers within the incentive system MARKET OPERATOR Mechanism for collection and distribution of incentives Possible other sources of incentives Payment for energy supplied RES increased by incentive Billing energy supplied from RES Payment of additional amount for incentive Payment for energy supplied from RES Retail Supplier Billing Payment (cash flow) Customers Privileged producer which uses RES within the incentive RES-E: Institutional framework CERA- Croatian Energy Regulatory Agency MONITORING

  11. Ordinance on the use ofRES andcogeneration • 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

  12. Actual status according to RES 379 request

  13. Administrative procedure - case Overlap: 4. Project holders, 8. Projects, 12. Request overlaps

  14. Registry RES: locations of wind plants (dvelopment) 14

  15. Registry of projects and plants for use of RES and CHP as excellent tool for sustainable energy

  16. Economic instruments for RES EE

  17. Fund’s investments in the EE and RES projects(2004 – February 2009)

  18. 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

  19. 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

  20. Structure of RES targets in 2020

  21. 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 systemof the Tariffs for energy storage(within technical assistance fromGEF/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

  22. Further activities 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 projectsof 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 22

  23. Thank you for your attention ! Further information Tel: +385 1 6106713 Fax:+385 1 6109113 E-mail: