The Croatian Energy Regulatory Agency opened a public consultation at the end of October regarding a new Methodology for determining the connection fee to the electricity grid, a document that is expected to establish clearer rules for connecting power plants and finally unblock a series of renewable energy projects. The consultation lasts until November 21, and a decision on implementation is expected after HERA processes the received comments.
According to the proposal, the methodology details the calculation method for connection fees or increases in connection capacity at all voltage levels – from low to very high voltage. Clearer criteria for applying unit prices per kilowatt are also introduced, an improved approach to determining fees for energy storage facilities, and more precisely defined procedures for calculating total costs. The idea is to create a transparent framework that would allow investors to plan costs and reduce risk, but the market does not currently share the regulator’s optimism.
– Given that Croatia remains one of the largest net importers of electricity in the EU, there is still interest from investors in investing in renewable energy sources. However, there is a visible lack of enthusiasm among investors considering the disrupted business climate due to delays in regulatory decisions and inconsistent legislative solutions that reduce business predictability – emphasizes Marija Šćulac, director of the HGK’s Sector for Industry and Sustainable Development.
A Thousand Lost Days
She reminds that the HGK has repeatedly warned in recent years about the need to define the unit connection price. Just in energy approvals, she points out, investors have paid around twenty million euros, but many projects could fail as their deadlines for location permits are soon expiring.
– Currently, the biggest problem is that HERA has not yet made a decision on the unit price for connecting power plants to the electricity system. It has been more than a thousand days since that decision was supposed to be made, which creates a huge problem for investors, who find it difficult to plan investments. Therefore, we once again appeal for the unit fee to be adopted as a matter of urgency – states Šćulac.
{quote}28226{/quote}
In the HGK’s Association of Renewable Energy Sources, it is estimated that between 1.5 and 2 GW of planned capacity could fail if a solution for extending energy approvals is not found soon. They particularly warn about the uneven approach of local governments, which increase municipal fees, further extending the payback period for investments.
A System that Hinders Itself
In the Renewable Energy Sources of Croatia (OIEH), they emphasize that the current standstill is a result of the absence of a clear and predictable regulatory framework. They believe it is essential to urgently adopt a unit price and amend the STUM system, which shifts the costs of network modernization onto investors.
– The current standstill is a result of the absence of a clear and predictable regulatory framework for grid connection. The key problem is that even after more than three years, the unit connection price has not yet been adopted, leaving the entire sector in uncertainty – they convey from OIEH, adding that HOPS’s operational restrictions on the operation of power plants from 0 to 100 percent without a time limit prevent projects from obtaining confirmation of bankability, which puts several thousand megawatts of ready capacity in question.
