The Legislative Framework for Renewable Energy Sources Will Be Completed in July, and Connection Prices Will Be Known in the Fall

Two key regulations for renewable energy sources will be adopted by the end of June, and in July, with their entry into force, we could finally receive the long-awaited Connection Rules, thus completing the legislative framework for renewable energy sources, it was stated at Lider’s conference on the Energy Future of Croatia.

Only the connection price will be missing, without which it is impossible to plan these investments, and according to Željko Vrban, Deputy President of HERA, it will most likely be known in the fall.

Considering that the adoption of subordinate legislation has been delayed for more than 500 days, dissonant tones, accusations, and shifting the ball of responsibility for the mentioned delays could be heard at the panel on How to Accelerate Decarbonization.

The State Secretary from the Ministry of Economy and Sustainable Development responsible for energy Ivo Milatić was unclear why HERA had not determined the unit connection price in a year. On the other hand, he justified the slowness in announcing tenders for energy approvals and the adoption of subordinate legislation, which fall under his jurisdiction, by a lack of personnel.

– Two regulations need to be adopted by June 28, and since the Connection Rules are also important for the National Recovery and Resilience Plan (NPOO) and obtaining 700 million euros, HERA should adopt them by the end of June, after we from the Ministry send our opinion. However, if HERA does not determine the unit price, then all these documents are meaningless. The unit price should have been determined already – said Milatić, who did not spare HOPS or HEP ODS either.

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He said of the former that ‘HOPS’s insistence on including the construction of a 400 kV power line in the connection price is sheer madness, while he criticized HEP ODS for constantly adding something and still not having signed a contract with the Ministry regarding the NPOO.

Vrban explained that HERA must be responsible to all participants in the process when determining prices, investors, consumers, and operators, and that it must also consider the market position and what a sudden influx of large amounts of electricity could mean for prices in the local market.

– If it were all that simple to reconcile, we would have made a decision long ago – said Vrban. He announced that connection prices would not change every year but over a longer period, of five or more years, and that the solution according to which funds are currently being collected for investments planned only for ten years is not the best. Between the lines, it could be concluded that the connection price will not be as high as initially requested by the network operators.

Announcements about the final adoption of subordinate legislation were commented on by Marija Šćulac Domac, who said she would have liked to hear all this a year ago.

– I cannot rationally explain why we waited so long and missed the opportunity to utilize the energy crisis. With low interest rates and high electricity prices, all renewable energy projects were profitable last year. Unlike us, who installed less than 50 MW of solar power plants last year, according to IRENA data, Slovenia installed 170, the Czech Republic 380, Bulgaria 670, and Greece 1200 MW of solar power plants. We still do not have a single solar power plant connected to the transmission network. If we do not enable quick, efficient, and cost-effective access to the transmission network, we will not meet the goals we have set – said the director of the Industry and Sustainable Development Sector of the Croatian Chamber of Commerce Šćulac Domac.

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Maja Pokrovac, director of OIEH, was also critical, stating that the mentioned regulations would not exist if they were not a condition for the NPOO.

– Thank God that the regulations are linked to the NPOO and the connection of an additional 1500 MW by the end of 2024, otherwise, this would have taken a few more years – said Pokrovac, adding that predictability is crucial for investors and calling for faster adoption of connection prices.

When it comes to new projects, which could apply for energy approval tenders after the legislative framework is finalized, in accordance with Article 17 of the Electricity Market Act, Milatić said he expects at least 5 GW of new projects and that tenders for them will be announced in the order of their arrival.