Croatia to Launch Renewable Auctions by Q3 2022

Croatia’s Ministry of Economy and Sustainable Development is considering announcing auctions for large wind farms and solar power plants by the third quarter of 2022.

About a year back, the Ministry had announced preparations for auctions for premiums for large power plants using renewable energy sources, which were then postponed to the autumn season. According to the latest update, the auctions are planned to be organized this year.

The reasons for the delay have not been revealed. The country’s Ministry of Economy and Sustainable Development said the timing of the first auction will completely depend on the number of projects ready for participation. At latest, the competition will be launched in the third quarter.

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The new law on the electricity market in Croatia had obliged developers to submit their applications for energy approval by January 19, 2022. This was a necessary step in the development of green energy projects – mainly solar power and wind power. Now the latest data shows that the interest of the investors is huge in renewable projects.

It is also being said that these applications were introduced to give the Croatian Government a sense of an existing pipeline of projects and enable better management in the sector. Industry experts opine that these auctions could attract investments of one billion euro this year itself. The Ministry has disclosed that it received as many as 207 requests for energy approval before the deadline’s expiry. These applications make about 2,000 MW of installed capacity.

State Secretary in the Ministry, Ivo Milatic, has mentioned that he expects 1,600 MW out of this proposed 2,000 MW to be prepared for construction. Milatic estimates that this should be enough for Croatia to meet its 2024 RE target of at least 1,500 MW. The auction model for subsidizing green energy was introduced in 2020, and the first auction for small projects was held in early 2021.

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Today, Croatia has more than 1,100 MW of installed capacity in hydro, 670 MW in wind farms and 100 MW in solar power plants. The government intends to simplify procedures and regulate the environmental protection segment.

The Croatian National Recovery and Resilience Plan 2021-2026 states that more than 2,500 MW of new renewable power plants will be connected to the grid by 2030.