What is the Future of Energy Projects in Croatia?

What does the Third Energy Package bring and what is needed to achieve a unified European energy market, what is the situation with renewable energy sources (RES) one year after the new tariff system was adopted, and what is the actual future of Ombla, Plomin, LNG, and other national and regional projects.

These are the questions and main topics of the 2nd regional conference on energy future ‘Government Energy Policy – Implementation! How to Get Involved in the Development of Croatia’, which will be organized by Lider in collaboration with the Ministry of Economy next week, specifically on Wednesday, June 19, at the Hypo Center in Zagreb.

Following the introductory presentation by Minister of Economy Ivan Vrdoljak, there will be a current discussion on the 3rd Energy Package. The development of unified internal electricity and natural gas markets in the EU is based on a long-term project, within which three energy packages have been adopted. The goal is to establish unified electricity and natural gas markets in the EU, with favorable energy prices, developed service standards, and high energy supply security.
Eraldo Banovac, chief advisor of HERA, will introduce the discussion on the 3rd Energy Package and present the most important news. The most commented news is the separation of regulated activities from market activities, i.e., the implementation of ownership separation of transmission/transport from production and supply, aimed at independent and non-discriminatory operation of the transmission/transport system operator. It is important to emphasize that certain problems have arisen in the implementation of the 3rd Energy Package. The European Commission, Banovac reminds, has warned several EU member states for not fully transposing directives into national legislation. Several legal proceedings have also been initiated with a proposal for daily fines that would apply until the day of complete transposition.

How far Croatia and Europe have progressed in the processes required by the 3rd Energy Package, whether Croatia faces penalties, and what other news this package brings will be revealed under the moderation of Kristina Čelić from the Ministry of Economy, in a discussion that will also include Miroslav Kulla (RWE), Dejan Ljuština (PricewaterhouseCoopers), Ivana Marković (Plinacro), and Tomislav Šerić (HEP).

And how far we have progressed in RES with the new tariff system will be revealed to us by Deputy Minister of Economy Alen Leverić, the introducer of the panel ‘Energy and Environment: The New RES Tariff System One Year Later’, in which Vjeran Piršić (Eko Kvarner), Mirko Tunjić (EHN), Zlatko Zmijarević (HERA), and Ivor Županić (HROTE) will also participate in the discussion.
The past year has been marked by changes in the tariff system. These changes have not significantly affected the concept of the incentive system. Zlatko Zmijarević, a specialist in the electricity system and service quality at HERA, notes that the current incentive system for electricity production from RES is suitable for large plants as it pays for energy injected into the electricity grid. 

– The introduction of a system that would be tailored to small plants, especially those connected to local consumption, requires a different approach to incentives, both in terms of connection and in terms of project financing, and it is necessary to establish a clear, fair, and effective financing method for such a new system – Zmijarević believes.
He emphasizes that it is essential to rethink, not only to remove barriers in the administrative procedure but also to change the perception of the relatively successful incentive system and the often criticized limitations on contracting:
– Namely, the current incentive system is perceived as a profitable investment, which coincided with the consequences of the economic crisis when safe, long-term projects are sought. However, insisting on the incentive system for construction and investments is not sustainable in the long term. Money needs to be gathered from somewhere for all these investments – he warns.

The goal of every RES incentive system is to ensure that goods and services related to a particular technology become cheaper and thus more competitive. This is evident in the most criticized limitation for solar power plants, where we actually have production prices from solar power plants in some EU countries at the level of electricity prices for end consumers. 
– This means that it becomes profitable to build facilities to meet consumption without feeding into the grid. This means that investments should be perceived precisely in the context of energy, not just as an investment. After all, those who jump into RES projects without understanding, looking only at the purchase price of energy or the notorious ‘roof leasing’, mostly just get tangled up in the procedure, which is ‘too complicated’ for them – Zmijarević emphasizes, also highlighting that all this actually underscores the need for greater understanding of energy projects at all levels.

What is the actual future of energy projects that have recently taken on new shapes, what problems accompany them, and in which exact phases are key national and regional projects will be shown in the last panel discussion between Vladimir Đurović (Plinacro), Gordana Sekulić (Janaf), Dragan Marčink (CEI), Tomislav Šerić (HEP), Tomislav Thüra (INA), and Mladen Vedriš (Faculty of Law in Zagreb).

More information about the conference can be found HERE